On December 27, 2023, the New York State Department of Taxation and Finance (Department) adopted corporate tax reform regulations addressing New York’s corporate tax reform effective in 2015. The adopted regulations are consistent with the proposed regulations released in August 2023 and only include what the Department has called “minor clarifying and technical changes.”

Although public comments submitted in response to the proposed regulations expressed various concerns over the possibility that the regulations would be applied retroactive to their formal adoption, the Department announced that the regulations will “generally apply to taxable years beginning on or after January 1, 2015.” However, the Department announced that, “based on a totality of the circumstances,” it “may choose not to apply penalties in cases where taxpayers took a position in their tax filings prior to adoption of the proposed rule in reliance upon prior [adopted corporate tax] regulations or prior drafts of the proposed” regulations.