S 7877 New York Senate · 2025 Regular Session

Relates to application of net operating losses in the calculation of corporate franchise taxes

Bill S 7877 modifies the rules for how corporations can apply net operating losses (NOLs) when calculating their franchise taxes. It reduces the period corporations can carry back an NOL to offset past profits from three years to one year. Additionally, the bill shortens the period for carrying forward an unused NOL to offset future profits from twenty years to five years. These changes will apply to taxable years beginning on and after January 1, 2025.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

May 2025

Committee Review

Floor Vote

Governor

Introduced May 13, 2025 Last action Feb 10, 2026

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What changed between versions

S7877 → S7877A · 3 edits

MINOR

This bill amends New York's tax law to clarify how net operating losses can be carried back and forward for corporate franchise tax purposes. The primary change extends the carryback period from one year to three years, while also adjusting the effective date of the law to apply to taxable years beginning after the law becomes effective rather than a fixed date in 2025.

Scope change

The bill's scope remains focused on corporate franchise tax calculations, but the applicability window for loss carrybacks has expanded from one year to three years, and the effective date mechanism has been modified.

ELIGIBILITY

Extended net operating loss carryback period from one taxable year to three taxable years preceding the loss year.

TIMELINE

Changed the effective date from a fixed date (January 1, 2025) to a relative date (taxable years beginning after the law becomes effective).

REQUIREMENT

Updated the minimum carryback year restriction from January 1, 2024 to January 1, 2015 to align with the three-year carryback provision.

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Full legislative history

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Key actions

Committee

Amendments

Feb 10, 2026

Upper · Passed

PRINT NUMBER 7877A

upper

Feb 10, 2026

Upper · Passed

AMEND AND RECOMMIT TO BUDGET AND REVENUE

upper

Jan 7, 2026

Committee

REFERRED TO BUDGET AND REVENUE

upper

May 13, 2025

Committee

REFERRED TO BUDGET AND REVENUE

upper

1 primary · 0 co-sponsors