New York State Tax Reform Update

Qualified manufacturers subject to the New York State Business Corporation Tax may now pay no tax on business income earned in New York.

Recently enacted New York State tax reform legislation allows qualified corporate manufacturers to reduce the tax rate on business income to zero for tax years beginning in 2014 and thereafter. The reform includes a provision that allows manufacturers that have Investment Tax Credit (ITC)–eligible property in New York State with a federal tax basis of as little as $1 million to qualify. Corporate manufacturers that meet this minimum property requirement must also meet certain additional requirements, including the following:

• More than 50% of the manufacturer's gross receipts must be derived from the sale of its manufactured goods.