How is the PNOLC Subtraction Calculated?
Prior to the passage of New York’s 2015 Tax reform, net operating losses (“NOLs”) were accumulated and applied on a pre-apportionment basis. Since, however, the new Tax regime went into effect for tax years beginning on or after Jan. 1, 2015, NOLs are now applied on a post-apportionment basis. The new Tax law allows taxpayers to monetize their pre-tax reform NOLs into a “post-apportioned” deduction—the PNOLC subtraction—which may be used over a number of years to reduce a taxpayer’s New York apportioned income.
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