New York S07643 limits pass-through entity credits to 87% of tax due for electing partnerships and S corporations.

New York S07643 amends the tax law to impose a cap on the aggregate amount of pass-through entity credits that can be claimed by partners, members, or shareholders of an electing partnership or S corporation. Specifically, the total credits claimed by all such individuals cannot exceed 87% of the tax due from the electing entity. This applies to both pass-through entity tax credits and city pass-through entity tax credits. The amendment takes effect immediately and applies to taxable years beginning after January 1 of the year following the date the bill becomes law.

New York S07643 limits pass-through entity credits to 87% of tax due for electing partnerships and S corporations.

New York S07643 amends the tax law to impose a cap on the aggregate amount of pass-through entity credits that can be claimed by partners, members, or shareholders of an electing partnership or S corporation. Specifically, the total credits claimed by all such individuals cannot exceed 87% of the tax due from the electing entity. This applies to both pass-through entity tax credits and city pass-through entity tax credits. The amendment takes effect immediately and applies to taxable years beginning after January 1 of the year following the date the bill becomes law.