New York Corporate Tax Overhaul Broadens Bases, Lowers Rates, and Reduces Complexity V. 1

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1 Joseph Henchman, New York Corporate Tax Overhaul Broadens Bases, Lowers Rates, and Reduces Complexity 1 (2014)

handle is hein.taxfoundation/taxfaaxb0001 and id is 1 raw text is: AOUNDATION New York Corporate Tax Overhaul
Broadens Bases, Lowers Rates, and
Apr. 2014 Reduces Complexity
No. 217
By Joseph Henchman
Vice President, Legal & State Projects
Key Findings
* The four different tax bases for calculating corporate tax are
reduced to three as of FY 2015 (eliminating the corporate AMT
base) and further reduced to two over time (eliminating the
capital stock base).
The corporate net income tax rate is reduced from 7.1 percent to
6.5 percent, the lowest level since 1968.
The duplicative bank tax system is merged into the better-
developed corporate tax system.
The estate tax is recoupled over time to the higher federal
threshold, exempting many small businesses from hefty taxes
upon the death of their owners. The generation-skipping transfer
tax is repealed.
Net operating losses are restructured to reduce uncertainty for
taxpayers, NOL carrybacks are extended to three years, and the
$10,000 cap is removed. NOL carryforwards remain twenty
years, similar to federal law.
The individual add-on Minimum Tax is repealed.
If the changes enacted by the bill were in full effect for the most
recent version of the State Business Tax Climate Index, New
York's corporate tax system would have ranked 4th best of the
fifty states instead of 25th best.

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