N.Y. Comp. Codes R. & Regs. tit. 20 § 3-8.1

Current through Register Vol. 46, No. 24, June 12, 2024

Section 3-8.1 - Definitions

For purposes of this Subpart, the following terms shall have the following meaning.

(a) The term "base year" means a corporation's last taxable year beginning on or after January 1, 2014, and before January 1, 2015.

(b) The term "base year BAP" means either of the following, whichever is applicable:

(1) the corporation's, or combined group's in the case of a combined report, in the base year ("base year combined group"), business allocation percentage (BAP) for purposes of calculating entire net income (ENI) for the base year (whether or not liability was in fact based on ENI), as calculated under section 210(3)(a) as such section was in effect on December 31, 2014; or

(2) the corporation's or base year combined group's allocation percentage for purposes of calculating ENI for the base year (whether or not liability was in fact based on ENI), as calculated under section 1454 as such section was in effect on December 31, 2014.

(c) The term "base year tax rate" means the corporation's or base year combined group's tax rate for purposes of computing the tax on ENI for the base year (whether or not liability was in fact based on ENI), as calculated under either section 210(1)(a) or section 1455(a), whichever was applicable, as such sections were in effect on December 31, 2014.

(d) The term "first 2015 taxable year" means a corporation's first taxable year that began on or after January 1, 2015, and before January 1, 2016.

(e)

(1) The term "small business taxpayer" means a corporation that, in the first 2015 taxable year, satisfied all of the criteria specified in subparagraphs (i), (ii), and (iii) of paragraph (2) of this subdivision as of the last day of the base year and, in the case of a combined report, means a combined group that in the first 2015 taxable year would have satisfied the criteria specified in subparagraphs (i) and (ii) of paragraph (2) of this subdivision on the last day of the base year if the group had filed a combined report in such base year, provided that each member of the combined group would have satisfied the criteria specified in subparagraph (iii) of paragraph (2) of this subdivision on the last day of the base year.

(2) The criteria that must be satisfied to qualify as a small business taxpayer are:

(i) the ENI of the corporation or the combined group for the base year before allocation was not more than $390,000 (such amount will be annualized for a base year that constitutes a short taxable year);

(ii) the total amount of money and other property that the corporation or combined group received for stock, as a contribution to capital and as paid-in surplus, was not more than $1 million as of the last day of the base year; and

(iii) the corporation was not part of an affiliated group, as defined in IRC section 1504, unless the group itself would have satisfied the requirements in subparagraphs (i) and (ii) of this paragraph if it had filed a combined report.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 3-8.1

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