New York budget impacts IRC §163(j) for businesses, IRC conformity for individuals

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April 2020


Governor Andrew Cuomo (D) signed budget legislation (A9508-B, S7508-B, see Part WWW) on April 3, under which New York State (state)  and New York City (city) decouple, for corporate income tax purposes and city unincorporated business tax (UBT) purposes, from the federal CARES Act provision under IRC §163(j)(10)(A)(i), and adopt a March 1, 2020, fixed IRC conformity date for both state and city personal income taxes.

The takeaway

Uncertainty remains as to what other changes might occur given the budget challenges facing both the state and city. The Department of Taxation and Finance has indicated that it would provide guidance surrounding some unanswered questions, including the potential disconnects between individual and business tax regimes in relation to IRC conformity.

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Peter Michalowski

State and Local Tax Leader, PwC US

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