On June 24, New York Governor Andrew Cuomo (D) signed legislation that exempts 95% of a taxpayer’s global intangible low-taxed income (GILTI) and makes other changes, effective for tax years beginning on or after January 1, 2019. The legislation marks a rare departure for New York, which typically limits tax amendments to the annual budget legislation. [S6615, signed 06/24/19]
In TSB-M-19(1)C, issued last February, the Department of Taxation and Finance concluded that GILTI is not considered exempt CFC income. The language of S6615 takes effect after 2018, but there is no indication at this time as to whether the Department will change its interpretation for 2018 and continue to follow the treatment outlined in the TSB.