Bill > A06629

This bill, known as the Multinational Earnings and Global Accountability (MEGA) Corporations Act, aims to address tax strategies used by large multinational corporations to reduce their tax liability by shifting profits outside the United States. The legislation mandates worldwide combined reporting for multinational corporations with gross annual receipts exceeding one billion dollars, requiring them to report all profits (both international and domestic) for corporate franchise tax purposes, with the tax calculation based on the portion of sales made in New York. Specifically, the bill amends existing tax law to require alien corporations (foreign corporations) to be included in combined tax reporting if they are part of a unitary business with combined gross receipts over one billion dollars, and modifies how global intangible low-taxed income is calculated in the tax apportionment fraction. The bill gives the Commissioner of Taxation and Finance authority to make necessary regulatory adjustments to implement the law and prevent double taxation. The provisions will take effect for taxable years beginning on or after January 1, 2026, providing corporations time to prepare for the new reporting requirements. The underlying intent is to ensure that multinational corporations pay their fair share of taxes and create a more level playing field for New York-based businesses.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A6629