On April 29, 2022, the New York State Department of Taxation and Finance issued two sets of “final draft” regulations relating to the corporation franchise tax reform that took effect for tax years beginning on or after January 1, 2015. Since the sweeping corporate tax reform was enacted, the Department has published a series of proposed updates to the Article 9-A corporation franchise tax regulations, but the two sets of regulations issued on April 29 are the first to be identified as “final drafts.” One set relates to regulation Parts 1 – 3 (definitions, nexus, losses, etc.), and the other set relates to regulation Parts 5 – 10 (tax credits, reports, assessments, etc.). The Department has indicated that a third set of “final draft” regulations, regarding Part 4 (apportionment), will be published in “summer 2022.”

According to the Department’s website, the Department “intends to begin the State Administrative Procedure Act (SAPA) process to formally propose and adopt these regulations” this fall, and requests comments on the two sets of draft regulations by June 30, 2022.

The Department’s website continues to include a “reminder” that “these draft regulations are not yet final and should not be relied upon.”

The draft regulations can be found on the Department’s website here.