On April 9, 2007, New York State Governor Eliot Spitzer signed S 2110-C, the revenue portion of the New York State budget (Chapter 60 of the Laws of 2007). The new law contains several significant changes in tax laws affecting businesses including a modification of combined reporting requirements; a reduction in tax rates; an acceleration of the single sales factor phase-in; a phase-out of deductions for dividends received from, and gains from the sale of, Real Estate Investment Trusts (REITs) and Regulated Investment Companies (RICs); and a change in the taxation of bank affiliates. Changes affecting individuals include a "look-though" of professional corporations and certain S corporations and mandatory New York S elections for certain federal S corporations. Finally, New York’s tax shelter provisions, scheduled to sunset on July 1, 2007, have been extended for two years.
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