Decoupling from certain federal provisions (Articles 9-A and 22)

Corporations subject to tax under Article 9-A of the Tax Law are subject to the 30% interest deduction limitation enacted under the Tax Cuts and Jobs Act and are not allowed to use the 50% limitation enacted in the Coronavirus Aid, Relief, and Economic Security Act ( CARES Act ) for tax years beginning in 2019 and 2020. Taxpayers must add back to their federal taxable income the increase in their federal interest deduction created pursuant to Internal Revenue Code (IRC) § 163(j)(10)(A)(i), if they have not made a valid federal election to opt out of the increased limit in the tax year.

For tax years beginning before January 1, 2022, any amendments made to the IRC after March 1, 2020, will not apply to personal income tax (Article 22). For more information, see New York State tax implications of federal COVID relief for tax years beginning before January 1, 2022 .

Corresponding amendments have been made to the Administrative Code of the City of New York.

[Part WWW of Chapter 58 of the Laws of 2020; Tax Law §§ 208(9)(b)(26) and 607(a); Administrative Code of the City of New York §§ 11-1707(a), 11-506(b)(17), 11-602(8)(b)(21), and 11-652(8)(b)(22)]