senate Bill S8991A

2017-2018 Legislative Session

Relates to the definitions of the terms CFC income and entire net income

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Archive: Last Bill Status - Passed Senate


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (7)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 19, 2018 referred to ways and means
delivered to assembly
passed senate
ordered to third reading cal.1987
Jun 14, 2018 print number 8991a
Jun 14, 2018 amend and recommit to rules
Jun 11, 2018 referred to rules

S8991 - Details

Law Section:
Tax Law
Laws Affected:
Amd §§208 & 1503, Tax L; amd §11-652, NYC Ad Cd

S8991 - Summary

Relates to the definitions of the terms "CFC income" and "entire net income"; provides that exempt CFC income shall include income required to be included in a taxpayer's federal gross income pursuant to subsection (a) of section 951A of the internal revenue code; excludes the amount of any federal deduction allowed pursuant to section 250(a)(1)(B)(i) of the IRC from being included in the calculation of entire net income.

S8991 - Sponsor Memo

S8991 - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8991

                            I N  S E N A T E

                              June 11, 2018
                               ___________

Introduced  by Sen. FLANAGAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the tax law and the administrative code of the  city  of
  New York, in relation to the definitions of the terms "CFC income" and
  "entire net income"

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (b) of subdivision 6-a of section 208 of the  tax
law,  as  amended  by  section 1 of part KK of chapter 59 of the laws of
2018, is amended to read as follows:
  (b) "Exempt CFC income" means (i) except to the  extent  described  in
subparagraph  (ii) of this paragraph, the income required to be included
in the taxpayer's federal gross income pursuant  to  subsection  (a)  of
section  951  of  the internal revenue code, received from a corporation
that is conducting a unitary business  with  the  taxpayer  but  is  not
included  in  a  combined report with the taxpayer, and (ii) such income
required to be included in the taxpayer's federal gross income  pursuant
to  subsection  (a)  of such section 951 of the internal revenue code by
reason of subsection (a) of section 965 of the internal revenue code, as
adjusted by subsection (b) of section 965 of the internal revenue  code,
and  without  regard  to subsection (c) of such section, received from a
corporation that is not included in a combined report with the taxpayer,
less, AND (iii) SUCH INCOME REQUIRED TO BE INCLUDED  IN  THE  TAXPAYER'S
FEDERAL  GROSS  INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A OF THE
INTERNAL REVENUE CODE, WITHOUT REGARD TO THE DEDUCTION UNDER SECTION 250
OF THE INTERNAL REVENUE CODE, RECEIVED FROM A CORPORATION  THAT  IS  NOT
INCLUDED  IN  A  COMBINED  REPORT  WITH  THE TAXPAYER, LESS, (IV) in the
discretion of the commissioner,  any  interest  deductions  directly  or
indirectly  attributable to that income. In lieu of subtracting from its
exempt CFC income the amount of those interest deductions, the  taxpayer
may  make  a revocable election to reduce its total exempt CFC income by
forty percent. If the taxpayer makes this election,  the  taxpayer  must
also make the elections provided for in paragraph (b) of subdivision six
of  this  section and paragraph (c) of this subdivision. If the taxpayer

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

S8991A (ACTIVE) - Details

Law Section:
Tax Law
Laws Affected:
Amd §§208 & 1503, Tax L; amd §11-652, NYC Ad Cd

S8991A (ACTIVE) - Summary

Relates to the definitions of the terms "CFC income" and "entire net income"; provides that exempt CFC income shall include income required to be included in a taxpayer's federal gross income pursuant to subsection (a) of section 951A of the internal revenue code; excludes the amount of any federal deduction allowed pursuant to section 250(a)(1)(B)(i) of the IRC from being included in the calculation of entire net income.

S8991A (ACTIVE) - Sponsor Memo

S8991A (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8991--A

                            I N  S E N A T E

                              June 11, 2018
                               ___________

Introduced  by Sen. FLANAGAN -- read twice and ordered printed, and when
  printed to be  committed  to  the  Committee  on  Rules  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to amend the tax law and the administrative code of the city of
  New York, in relation to the definitions of the terms "CFC income" and
  "entire net income"

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. Paragraph (b) of subdivision 6-a of section 208 of the tax
law, as amended by section 1 of part KK of chapter 59  of  the  laws  of
2018, is amended to read as follows:
  (b)  "Exempt  CFC  income" means (i) except to the extent described in
subparagraph (ii) of this paragraph, the income required to be  included
in  the  taxpayer's  federal  gross income pursuant to subsection (a) of
section 951 of the internal revenue code, received  from  a  corporation
that  is  conducting  a  unitary  business  with the taxpayer but is not
included in a combined report with the taxpayer, and  (ii)  such  income
required  to be included in the taxpayer's federal gross income pursuant
to subsection (a) of such section 951 of the internal  revenue  code  by
reason of subsection (a) of section 965 of the internal revenue code, as
adjusted  by subsection (b) of section 965 of the internal revenue code,
and without regard to subsection (c) of such section,  received  from  a
corporation that is not included in a combined report with the taxpayer,
less,  AND  (iii)  SUCH INCOME REQUIRED TO BE INCLUDED IN THE TAXPAYER'S
FEDERAL GROSS INCOME PURSUANT TO SUBSECTION (A) OF SECTION 951A  OF  THE
INTERNAL REVENUE CODE, WITHOUT REGARD TO THE DEDUCTION UNDER SECTION 250
OF  THE  INTERNAL  REVENUE CODE, RECEIVED FROM A CORPORATION THAT IS NOT
INCLUDED IN A COMBINED REPORT WITH  THE  TAXPAYER,  LESS,  (IV)  in  the
discretion  of  the  commissioner,  any  interest deductions directly or
indirectly attributable to that income. In lieu of subtracting from  its
exempt  CFC income the amount of those interest deductions, the taxpayer
may make a revocable election to reduce its total exempt CFC  income  by
forty  percent.  If  the taxpayer makes this election, the taxpayer must

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

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