Enacts the MEGA corporations act mandating worldwide combined reporting for large corporations that have more than one billion dollars in gross receipts.
STATE OF NEW YORK
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7323
2025-2026 Regular Sessions
IN SENATE
April 10, 2025
___________
Introduced by Sens. KRUEGER, GOUNARDES -- read twice and ordered print-
ed, and when printed to be committed to the Committee on Budget and
Revenue
AN ACT to amend the tax law, in relation to enacting the MEGA corpo-
rations act mandating worldwide combined reporting for large corpo-
rations
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "multinational earnings and global accountability for (MEGA) corpo-
3 rations act".
4 § 2. Legislative intent. The legislature finds that multinational
5 corporations who profit from sales in New York often engage in practices
6 that shift profits outside the United States to reduce their tax liabil-
7 ity. To ensure a level playing field with New York-based businesses and
8 that multinationals pay their fair share, this act mandates worldwide
9 combined reporting for multinational corporations with gross receipts
10 exceeding one billion dollars, requiring them to report all profits,
11 international and domestic, against which the corporate franchise tax
12 can be levied based on the portion of sales made in New York.
13 § 3. Paragraphs (b) and (c) of subdivision 2 of section 210-C of the
14 tax law, as added by section 18 of part A of chapter 59 of the laws of
15 2014, are amended to read as follows:
16 (b) A corporation required to make a combined report within the mean-
17 ing of this section shall also include (i) a captive REIT and a captive
18 RIC if the captive REIT or captive RIC is not required to be included in
19 a combined report under article thirty-three of this chapter; (ii) a
20 combinable captive insurance company; and (iii) an alien corporation
21 that satisfies the conditions in paragraph (a) of this subdivision if
22 (I) under any provision of the internal revenue code, that corporation
23 is treated as a "domestic corporation" as defined in section seven thou-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04124-04-5
S. 7323 2
1 sand seven hundred one of the internal revenue code, [or] (II) it has
2 effectively connected income for the taxable year pursuant to clause
3 (iv) of the opening paragraph of subdivision nine of section two hundred
4 eight of this article, or (III) it is engaged in a unitary business with
5 any taxpayer and the combined annual gross receipts of the unitary busi-
6 ness including both taxpayers and nontaxpayers exceeds one billion
7 dollars.
8 (c) A corporation required or permitted to make a combined report
9 under this section does not include (i) a corporation that is taxable
10 under a franchise tax imposed by article nine or article thirty-three of
11 this chapter or would be taxable under a franchise tax imposed by arti-
12 cle nine or thirty-three of this chapter if subject to tax; (ii) a REIT
13 that is not a captive REIT, and a RIC that is not a captive RIC; (iii) a
14 New York S corporation; or (iv) an alien corporation that under any
15 provision of the internal revenue code is not treated as a "domestic
16 corporation" as defined in section seven thousand seven hundred one of
17 such code, is not engaged with any taxpayer in a unitary business with
18 combined annual gross receipts including both taxpayers and nontaxpayers
19 in excess of one billion dollars, and has no effectively connected
20 income for the taxable year pursuant to clause (iv) of the opening para-
21 graph of subdivision nine of section two hundred eight of this article.
22 If a corporation is subject to tax under this article solely as a result
23 of its ownership of a limited partner interest in a limited partnership
24 that is doing business, employing capital, owning or leasing property,
25 maintaining an office in this state, or deriving receipts from activity
26 in this state, and none of the corporation's related corporations are
27 subject to tax under this article, such corporation shall not be
28 required or permitted to file a combined report under this section with
29 such related corporations.
30 § 4. Paragraph (iv) of the opening paragraph of subdivision 9 of
31 section 208 of the tax law, as amended by section 4 of part A of chapter
32 59 of the laws of 2014, is amended and a new paragraph (v) is added to
33 read as follows:
34 (iv) except as provided in paragraph (v) of this paragraph, in the
35 case of an alien corporation that under any provision of the internal
36 revenue code is not treated as a "domestic corporation" as defined in
37 section seven thousand seven hundred one of such code is effectively
38 connected with the conduct of a trade or business within the United
39 States as determined under section 882 of the Internal Revenue Code[.];
40 or
41 (v) in the case of an alien corporation required to be included in a
42 combined report pursuant to paragraph (b) of subdivision two of section
43 two hundred ten-C of this article, the corporation's worldwide income
44 computed as if such corporation were subject to tax.
45 § 5. Paragraph (a) of subdivision 5-a of section 210-A of the tax law,
46 as amended by section 3 of part I of chapter 39 of the laws of 2019, is
47 amended to read as follows:
48 (a) Notwithstanding any other provision of this section, global intan-
49 gible low-taxed income shall be included in the apportionment fraction
50 as provided in this subdivision, except for a corporation required to
51 file a combined report within the meaning of subparagraph (III) of para-
52 graph (b) of subdivision two of section two hundred ten-C of this arti-
53 cle, because they are engaged in a unitary business with any taxpayer
54 and the combined annual gross receipts of the unitary business including
55 both taxpayers and nontaxpayers exceeds one billion dollars, which shall
S. 7323 3
1 not include global intangible low-taxed income in the denominator of the
2 apportionment fraction.
3 § 6. The commissioner of taxation and finance is authorized to repeal
4 or make any necessary additions or amendments to any applicable rules or
5 regulations in order to administer the provisions of this act, includ-
6 ing, but not limited to, those necessary to prevent the double-taxation
7 of income.
8 § 7. This act shall take effect immediately and shall apply to taxable
9 years commencing on or after January 1, 2026.
