Bill > S07877

This bill amends New York's tax law to change how businesses can use net operating losses, which are the excess of a company's deductible expenses over its taxable income in a given year. Previously, businesses could carry forward these losses for up to twenty years to offset future taxable income and reduce their corporate franchise taxes. This legislation, however, restricts the carryforward period for net operating losses to a maximum of five years following the year the loss occurred. The bill also removes the ability for businesses to carry back net operating losses to previous tax years, meaning losses can only be used to reduce taxes in future years, and only for a limited time. This change will apply to taxable years beginning on or after January 1st of the year following the bill's enactment.