New York Elective Passthrough Entity Tax (PTET) General Questions.

  • Article Type:
  • QA
  • Last Modified:
  • 11/05/2022

Question

What is some general background information regarding PTET credit?
 

Environment

  • CCH ProSystem fx Tax
  • CCH Axcess Tax
  • CCH Axcess
  • 1065
  • 1120S
  • New York
  • PTET

Answer

What is New York PTET?
  • New York’s 2021-2022 Budget Act (including S2509C/A3009C, among other bills) enacted on April 19, 2021, includes a new elective pass-through entity tax (PTET).
  • This type of tax has been enacted by a number of states and is generally designed in response to the $10,000 cap on the federal state and local tax (SALT) deduction as added by the Tax Cuts and Jobs Act (TCJA) in 2017.
Calculating the PTE taxable income, the PTET, and the credit

Additional Information

PTET may be filed online through the Business Online Services account.
  • https://www.tax.ny.gov/bus/ptet/
  • https://www.tax.ny.gov/pdf/memos/ptet/m21-1c-1i.pdf
New York Senate ARTICLE 24-A - Pass-through Entity Tax - Tax (TAX) CHAPTER 60
  • https://www.nysenate.gov/legislation/laws/TAX/A24-A
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