Net operating loss deduction

# (a)

# (1)

A corporation that reports as part of a consolidated group for Federal income tax purposes, but on a separate basis for purposes of article 9-A, computes its NOL and its net operating loss deduction (NOLD) as if it were filing on a separate basis for Federal income tax purposes.

# (2)

If the combined group is different than the consolidated group for Federal income tax purposes, then the combined group computes its NOL and NOLD as if it were filing a consolidated return for Federal income tax purposes with the combined group members.

# (b)

The NOLD is not limited to the Federal NOLD amount. However, such deduction is determined using the same limitations that would apply for Federal income tax purposes under the IRC and the related regulations regarding the NOLs of the acquired or merged loss companies.

# (c)

The NOLD that is required to be utilized in a taxable year is the amount that reduces the tax on apportioned total business income after the prior net operating loss conversion (PNOLC) subtraction and prior to the NOLD to the higher of the tax on the capital base or the fixed dollar minimum tax. In the case of a combined report, the NOLD that is required to be utilized in a taxable year is the amount that reduces the tax on apportioned total combined business income after the PNOLC subtraction and prior to the NOLD to the higher of the tax on the combined capital base or the fixed dollar minimum tax of the designated agent.

# (d)

# (1)

A corporation is allowed an NOLD in computing its business income base or, in the case of a combined report, in computing the combined group’s business income base.

# (2)

The NOLD is the amount of NOL from one or more taxable years that is carried forward or carried back to a particular taxable year, subject to the limitations in this Subpart. In the case of a combined report, the NOLD is the aggregate amount of the combined group members’ NOL from one or more taxable years that is carried forward or carried back to a particular taxable year, subject to the limitations in this Subpart.

# (3)

When both a PNOLC subtraction and an NOLD are being claimed for a particular taxable year, the PNOLC subtraction must be applied against the business income base before the NOLD.

# (e)

A corporation will not be allowed an NOLD for any NOL sustained in any of the taxable years listed in paragraph (1), (2) or (3) of this subdivision:

# (1)

a New York S year. The New York S year must, however, be treated as a taxable year for purposes of determining the number of taxable years to which an NOL may be carried forward or back.

# (2)

any taxable year beginning prior to January 1, 2015; or

# (3)

any taxable year in which the corporation was not subject to tax under article 9-A or not a member of a combined group subject to tax under article 9-A.