N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 3-8.6

Current through Register Vol. 46, No. 45, November 2, 2024

Section 3-8.6 - Computation of PNOLC subtraction pool

(a) The PNOLC subtraction pool for a taxpayer that was not a member of a combined group in its base year is computed as follows:

(1) Determine the tax value of the taxpayer's UNOL. The tax value of the UNOL is the product of:

(i) the amount of the taxpayer's UNOL;

(ii) the taxpayer's base year BAP; and

(iii) the taxpayer's base year tax rate.

(2) Compute the PNOLC subtraction pool. Divide the tax value of the UNOL, as determined pursuant to paragraph (1) of this subdivision, by 6.5% (the conversion percentage). The result is the taxpayer's PNOLC subtraction pool.

(b) The PNOLC subtraction pool for a corporation that was a member of a combined group in its base year, whether or not the corporation was a taxpayer in its base year, is computed as follows:

(1) Determine the tax value of the corporation's UNOL. The tax value of the corporation's UNOL is the product of:

(i) the amount of the corporation's UNOL;

(ii) the combined group's base year BAP; and

(iii) the combined group's base year tax rate.

(2) Compute the PNOLC subtraction pool. Divide the tax value of the corporation's UNOL, as determined pursuant to paragraph (1) of this subdivision, by 6.5% (the conversion percentage). The result is the corporation's PNOLC subtraction pool.

N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 3-8.6

Adopted New York State Register December 27, 2023/Volume XLV, Issue 52, eff. 12/27/2023