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Senate Bill S7877

2025-2026 Legislative Session

Relates to application of net operating losses in the calculation of corporate franchise taxes

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Current Bill Status - In Senate Committee Budget And Revenue Committee

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2025-S7877 (ACTIVE) - Details

Current Committee:
Senate Budget And Revenue
Law Section:
Tax Law
Laws Affected:
Amd §210, Tax L

2025-S7877 (ACTIVE) - Summary

Restricts the carrying back of net operating losses to one year, and carrying forward to five years.

2025-S7877 (ACTIVE) - Sponsor Memo

2025-S7877 (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7877
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 13, 2025
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to the application of net oper-
   ating losses in the calculation of corporate franchise taxes
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Clause 4 of subparagraph (ix) of paragraph (a) of  subdivi-
 sion 1 of section 210 of the tax law, as amended by section 16 of part T
 of chapter 59 of the laws of 2015, is amended to read as follows:
   (4)  A  net  operating  loss  may  be carried back [three] ONE taxable
 [years] YEAR preceding the taxable year of the loss ("the  loss  year").
 However  no  loss can be carried back to a taxable year beginning before
 January first, two thousand [fifteen] TWENTY-FOUR.  [The loss  is  first
 carried to the earliest of the three taxable years. If it is not entire-
 ly used in that year, it is carried to the second taxable year preceding
 the  loss  year, and any remaining amount is carried to the taxable year
 immediately preceding the loss year.] Any unused  amount  of  loss  then
 remaining  may  be  carried forward for as many as [twenty] FIVE taxable
 years following the loss year.    Losses  carried  forward  are  carried
 forward  first  to the taxable year immediately following the loss year,
 then to the second taxable year following the loss year, and then to the
 next immediately subsequent taxable year or years until the loss is used
 up or the [twentieth] FIFTH taxable year following the loss year, which-
 ever comes first.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2025.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11013-01-5

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