N.Y. Comp. Codes R. & Regs. tit. 20 § 3-8.8

Current through Register Vol. 46, No. 25, June 18, 2024

Section 3-8.8 - Impact of combined group changes on the PNOLC subtraction

(a) If a corporation that filed separately subsequently joins a combined group in a later taxable year, the corporation's PNOLC subtraction allotment and unused PNOLC subtraction carryforward are added to the combined group's PNOLC subtraction allotment and unused PNOLC subtraction carryforward, respectively, subject to the rules in section 210(1)(a)(viii)(B) and this Subpart.

(b) If a corporation is a member of a combined group and subsequently leaves that group in a later taxable year, the leaving member of the combined group takes its own PNOLC subtraction allotment with it to use in future taxable years. In addition, such member also takes its own share of the combined group's combined unused PNOLC subtraction carryforward, which shall be based upon its share of the combined group's PNOLC subtraction available for use in the last year it was included in the combined group. If the leaving corporation joins another combined group, its PNOLC subtraction allotment and unused PNOLC subtraction carryforward are added to the combined group's PNOLC subtraction allotment and unused PNOLC subtraction carryforward, respectively, subject to the rules in section 210(1)(a)(viii)(B) and this Subpart. If such corporation does not join another combined group, it is allowed its PNOLC subtraction allotment and unused PNOLC subtraction carryforward on a separate basis, subject to the rules in section 210(1)(a)(viii)(B) and this Subpart. The remaining combined group must reduce its unused PNOLC subtraction carryforward by the leaving member's share of such unused carryforward.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 3-8.8

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