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Sponsor's memo
BILL NUMBER:S7377
Title of bill
An act to amend the tax law, in relation to eliminating net operating loss carryback deductions; and to repeal certain provisions of the tax law relating thereto
Purpose
To create additional revenue for the State of New York.
Summary of provisions
Section 1: Report of federal changes, corrections or disallowances - removes the allowance of a tentative carryback adjustment from Section 659 of the tax law.
Section 2: Claim for credit or refund of an overpayment of tax - Eliminates the net operating loss carryback or capital loss carryback from Section 1087 of the tax law.
Section 3: Petition for redetermination of a deficiency. Eliminates the net operating loss carryback or capital loss carryback.
Section 4: Repeals subparagraph 3 or paragraph (a) and paragraph (d) of subdivision 8-b and paragraph (f) and subparagraph 3 of paragraph (g) subdivision 9 of section 208 of the tax law.
Section 4-a: Repeals paragraph (e) of subdivision 13 of section 210 of the tax law.
Section 5: Repeals subdivision 3 of section 211 of the tax law.
Section 6: Repeals subdivision (e) of section 213-b of the tax law.
Section 7: Repeals paragraph 3 of subdivision (a) of section 292 of the tax law.
Section 8: Repeals paragraph 3 of subsection (a) of section 622 of the tax law.
Section 9: Repeals paragraph 4 of subsection (b) of section 631 of the tax law.
Section 10: Repeals subsection (b) of section 633 of the tax law.
Section 11: Repeals paragraph 3 of subsection (a) of section 636 of tax law.
Section 12: Repeals paragraph 4 of subsection (c) of section 683 of the tax law.
Section 13: Repeals subsection (e) of section 684 of the tax law.
Section 14: Repeals subsection (d) of section 687 of the tax law.
Section 15: Repeals paragraph 4 of subsection (c) of section 1083 of the tax law.
Section 16: Repeals subsection (e) of section 1084 of the tax law.
Section 17 : Repeals subsection (a) of section 1087 of the tax law.
Section 18: Repeals subsection (d) of section 1088 of the tax law.
Section 19: Repeals subsection (k-1) of section 1453 of the tax law.
Section 20: Repeals paragraph 4 of subdivision (b) of section 1503 of the tax law.
Section 21: Repeals paragraph 1 of subsection (e) of section 1515 of the tax law.
Section 22: This act shall take effect on the 180th day after it shall have become a law.
Justification
At this time, businesses are permitted to file amended income tax returns for past years in which they were profitable, by using the current year's business losses to offset those profits, and receive refunds for taxes paid in past years. During economic downturns when business tax revenues slump, refunding business taxes paid in prior years can exacerbate state budget deficits. According to the Center on Budget and policy, in recent years California, Colorado, Kentucky, Illinois, and North Dakota have adjusted, repealed or suspended their corporate net operating loss (NOL) deductions.
By eliminating the NOL, it is estimated that New York's deficit could be reduced by a minimum $250 million (see, http://www.tax.ny.gov/research/stats/stat_corp/corp_tax stat_ report/2006_new_york_state_corporate_tax_statistical_report.htm).
Legislative history
New legislation.
Fiscal implications
Revenue enhancement.
Effective date
This act shall take effect on the 180th day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.