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Department of Taxation and Finance

Deriving receipts thresholds

The Commissioner of Taxation and Finance annually reviews the thresholds at which a corporation is deemed to be deriving receipts from activity in New York State and in the Metropolitan Commuter Transportation District (MCTD) for purposes of imposing the Article 9-A franchise tax and metropolitan transportation business tax (MTA surcharge). The Commissioner adjusts the thresholds if the Consumer Price Index has changed by 10% or more since January 1, 2015, or since the date that the thresholds were last adjusted by the Commissioner.  

The thresholds at which a corporation and a unitary group are deemed to be deriving receipts from activity in New York State and in the MCTD for purposes of imposing the Article 9-A franchise tax and MTA surcharge are:

  • $1,000,000 for tax years beginning on or after January 1, 2015, and before January 1, 2022; 
  • $1,138,000 for tax years beginning on or after January 1, 2022, and before January 1, 2024; and
  • $1,283,000 for tax years beginning on or after January 1, 2024, and before January 1, 2025. 

Additionally, when determining whether the deriving receipts thresholds are met for a unitary group, only total the receipts from corporations conducting a unitary business that meet the ownership requirements under Tax Law § 210-C (except for corporations that may not be included in a combined report due to the exclusions in Tax Law § 210-C.2(c)):

  • with at least $10,000 in New York receipts, for the franchise tax, and at least $10,000 in MCTD receipts, for the MTA surcharge, for tax years beginning on or after January 1, 2015, and before January 1, 2022;
  • with at least $11,000 in New York receipts, for the franchise tax, and at least $11,000 in MCTD receipts, for the MTA surcharge, for tax years beginning on or after January 1, 2022, and before January 1, 2024; and
  • with at least $12,000 in New York receipts, for the franchise tax, and at least $12,000 in MCTD receipts, for the MTA surcharge, for tax years beginning on or after January 1, 2024, and before January 1, 2025.
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