New York S 953: Raises the tax rate on corporate income; increases the state conformity to federal taxation of corporate profit shifting; and imposes an additional tax on individual business income

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 Speaker Carl E. Heastie

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S00953 Summary:

BILL NOS00953 

&nbsp

SAME ASSAME AS A01971

&nbsp

SPONSORHOYLMAN-SIGAL

&nbsp

COSPNSRBRISPORT, BROUK, CLEARE, FERNANDEZ, GONZALEZ, HINCHEY, JACKSON, MYRIE, PARKER, RAMOS, RIVERA,
 SALAZAR, SANDERS, SERRANO

&nbsp

MLTSPNSR

&nbsp

Amd §§208, 210, 210-A & 606, add §608, Tax L

&nbsp

Raises the tax rate on corporate income; increases the state conformity to federal taxation of corporate profit shifting; imposes an additional tax on individual business income in response to federal tax benefits for pass-through business income.

Go to top S00953 Actions:

BILL NOS00953 

&nbsp

01/08/2025REFERRED TO BUDGET AND REVENUE

Go to topS00953 Committee&nbspVotes:

Go to topS00953 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS00953 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 953

 2025-2026 Regular Sessions

 IN SENATE

 (Prefiled)

 January 8, 2025
 ___________

 Introduced by Sens. HOYLMAN-SIGAL, BRISPORT, CLEARE, FERNANDEZ, GONZA-
 LEZ, HINCHEY, JACKSON, MYRIE, PARKER, RAMOS, RIVERA, SALAZAR, SANDERS,
 SERRANO -- read twice and ordered printed, and when printed to be
 committed to the Committee on Budget and Revenue

 AN ACT to amend the tax law, in relation to raising the tax rate on
 corporate income; in relation to increasing the state conformity to
 federal taxation of corporate profit shifting; and in relation to
 imposing an additional tax on individual business income in response
 to federal tax benefits for pass-through business income

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Paragraph (b) of subdivision 6-a of section 208 of the tax
 2 law, as amended by section 1 of part I of chapter 39 of the laws of
 3 2019, is amended to read as follows:
 4 (b) "Exempt CFC income" means (i) except to the extent described in
 5 subparagraph (ii) of this paragraph, the income required to be included
 6 in the taxpayer's federal gross income pursuant to subsection (a) of
 7 section 951 of the internal revenue code, received from a corporation
 8 that is conducting a unitary business with the taxpayer but is not
 9 included in a combined report with the taxpayer, (ii) such income
 10 required to be included in the taxpayer's federal gross income pursuant
 11 to subsection (a) of such section 951 of the internal revenue code by
 12 reason of subsection (a) of section 965 of the internal revenue code, as
 13 adjusted by subsection (b) of section 965 of the internal revenue code,
 14 and without regard to subsection (c) of such section, received from a
 15 corporation that is not included in a combined report with the taxpayer,
 16 and (iii) [ninety-five] fifty percent of the income required to be
 17 included in the taxpayer's federal gross income pursuant to subsection
 18 (a) of section 951A of the internal revenue code, without regard to the
 19 deduction under section 250 of the internal revenue code, received from

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01693-01-5

 S. 953 2

 1 a corporation that is not included in a combined report with the taxpay-
 2 er, less, (iv) in the discretion of the commissioner, any interest
 3 deductions directly or indirectly attributable to that income. In lieu
 4 of subtracting from its exempt CFC income the amount of those interest
 5 deductions, the taxpayer may make a revocable election to reduce its
 6 total exempt CFC income by forty percent. If the taxpayer makes this
 7 election, the taxpayer must also make the elections provided for in
 8 paragraph (b) of subdivision six of this section and paragraph (c) of
 9 this subdivision. If the taxpayer subsequently revokes this election,
 10 the taxpayer must revoke the elections provided for in paragraph (b) of
 11 subdivision six of this section and paragraph (c) of this subdivision. A
 12 taxpayer which does not make this election because it has no exempt CFC
 13 income will not be precluded from making those other elections. The
 14 income described in subparagraphs (ii) and (iii) of this paragraph shall
 15 not constitute investment income. The income described in subp