A 10273: Provides that certain deductions allowable under the internal revenue code related to certain types of property and domestic research or experimental expenditures shall be added to federal adjusted gross income.

  
  STATE OF NEW YORK ________________________________________________________________________ 10273  IN ASSEMBLY February 20, 2026 ___________ Introduced by M. of A. R. CARROLL -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to the treatment of certain deductions allowable under the internal revenue code in calculating federal adjusted gross income The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph (a) of subdivision 9 of section 208 of the tax 2 law is amended by adding four new subparagraphs 24, 25, 26, and 27 to 3 read as follows: 4 (24) For taxable years beginning on or after January first, two thou- 5 sand twenty-five, in the case of qualified production property described 6 in paragraph two of subsection (n) of section one hundred sixty-eight of 7 the internal revenue code, the amount of any deduction allowed pursuant 8 to subsection (a) of section one hundred sixty-seven of the internal 9 revenue code as if the taxpayer has not made an election pursuant to 10 subsection (n) of section one hundred sixty-eight of the internal reven- 11 ue code. 12 (25) For taxable years beginning on or after January first, two thou- 13 sand twenty-five, the amount of any foreign and domestic research or 14 experimental expenditures, as defined in sections one hundred seventy- 15 four and 174A of the internal revenue code, paid or incurred in each 16 taxable year on and after January first, two thousand twenty-five, amor- 17 tized over a sixty-month period as if the election in subsection (c) of 18 section 174A of the internal revenue code applied to such foreign and 19 domestic research or experimental expenditures. 20 (26) For taxable years beginning on or after January first, two thou- 21 sand twenty-five, the remaining amount of any foreign and domestic 22 research or experimental expenditures, as defined in sections one 23 hundred seventy-four and 174A of the internal revenue code, paid or 24 incurred prior to January first, two thousand twenty-five, determined as 25 if section one hundred seventy-four of the internal revenue code in 26 effect as of January first, two thousand twenty-two, applied to such 27 expenditures. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14215-04-6 
 A. 10273 2 1 (27) For taxable years beginning on or after January first, two thou- 2 sand twenty-five, in the case of section 179 property as described in 3 subsection (d) of section one hundred seventy-nine of the internal 4 revenue code with respect to such property the amount of any deduction 5 made pursuant to section 179 of the internal revenue code as it shall 6 have been in effect as of January first, two thousand twenty-two. 7 § 2. Paragraph (b) of subdivision 9 of section 208 of the tax law is 8 amended by adding three new subparagraphs 28, 29, and 30 to read as 9 follows: 10 (28) For taxable years beginning on or after January first, two thou- 11 sand twenty-five, in the case of qualified production property described 12 in paragraph two of subsection (n) of section one hundred sixty-eight of 13 the internal revenue code, any amount which the taxpayer claimed as a 14 deduction under subsection (a) of section one hundred sixty-seven of the 15 internal revenue code that included an allowance solely as a result of 16 an election made pursuant to subsection (n) of section one hundred 17 sixty-eight of the internal revenue code. 18 (29) For taxable years beginning on or after January first, two thou- 19 sand twenty-five, any amount claimed as a deduction under sections one 20 hundred seventy-four and 174A of the internal revenue code in effect as 21 of January first, two thousand twenty-five, and any amount claimed as a 22 deduction pursuant to federal Public Law 119-21, title VII, section 23 70302(f)(2)(a), for foreign and domestic research or experimental 24 expenditures, as defined in sections one hundred seventy-four and 174A 25 of the internal revenue code. 26 (30) For taxable years beginning on or after January first, two thou- 27 sand twenty-five, in the case of section 179 property described in 28 subsection (d) of section one hundred seventy-nine of the internal 29 revenue code with respect to such property the amount of the deduction 30 allowable under section one hundred seventy-nine of the internal revenue 31 code. 32 § 3. Subsection (b) of section 612 of the tax law is amended by adding 33 three new paragraphs 44, 45 and 46 to read as follows: 34 (44) For taxable years beginning on or after January first, two thou- 35 sand twenty-five, in the case of qualified production property described 36 in paragraph two of subsection (n) of section one hundred sixty-eight of 37 the internal revenue code, any amount which the taxpayer claimed as a 38 deduction under subsection (a) of section one hundred sixty-seven of the 39 internal revenue code that included an allowance solely as a result of 40 an election made pursuant to subsection (n) of section one hundred 41 sixty-eight of the internal revenue code. 42 (45) For taxable years beginning on or after January first, two thou- 43 sand twenty-five, any amount claimed as a deduction under sections one 44 hundred seventy-four and 174A of the internal revenue code in effect as 45 of January first, two thousand twenty-five, and any amount claimed as a 46 deduction pursuant to federal Public Law 119-21, title VII, section 47 70302(f)(2)(a), for foreign and domestic research or experimental 48 expenditures, as defined in sections one hundred seventy-four and 174A 49 of the internal revenue code. 50 (46) For taxable years beginning after December thirty-first, two 51 thousand twenty-five, in the case of section 179 property described in 52 subsection (d) of section one hundred seventy-nine of the internal 53 revenue code, with respect to such property the amount of the deduction 54 allowable under section one hundred seventy-nine of the internal revenue 55 code. 
 A. 10273 3 1 § 4. Subsection (c) of section 612 of the tax law is amended by adding 2 four new paragraphs 48, 49, 50, and 51 to read as follows: 3 (48) For taxable years beginning on or after January first, two thou- 4 sand twenty-five, in the case of qualified production property described 5 in paragraph two of subsection (n) of section one hundred sixty-eight of 6 the internal revenue code, the amount of any deduction allowed pursuant 7 to subsection (a) of section one hundred sixty-seven of the internal 8 revenue code as if the taxpayer has not made an election pursuant to 9 subsection (n) of section one hundred sixty-eight of the internal reven- 10 ue code. 11 (49) For taxable years beginning on or after January first, two thou- 12 sand twenty-five, the amount of any foreign and domestic research or 13 experimental expenditures, as defined in sections one hundred seventy- 14 four and 174A of the internal revenue code, paid or incurred in each 15 taxable year on and after January first, two thousand twenty-five, amor- 16 tized over a sixty-month period as if the election in subsection (c) of 17 section 174A of the internal revenue code applied to such foreign and 18 domestic research or experimental expenditures. 19 (50) For taxable years beginning on or after January first, two thou- 20 sand twenty-five, the remaining amount of any foreign and domestic 21 research or experimental expenditures, as defined in sections one 22 hundred seventy-four and 174A of the internal revenue code, paid or 23 incurred prior to January first, two thousand twenty-five, determined as 24 if section one hundred seventy-four of the internal revenue code in 25 effect as of January first, two thousand twenty-two, applied to such 26 expenditures. 27 (51) For taxable years beginning on or after January first, two thou- 28 sand twenty-five, in the case of section 179 property as described in 29 subsection (d) of section one hundred seventy-nine of the internal 30 revenue code with respect to such property the amount of any deduction 31 made pursuant to section 179 of the internal revenue code as it shall 32 have been in effect as of January first, two thousand twenty-two. 33 § 5. Paragraph 1 of subdivision (b) of section 1503 of the tax law is 34 amended by adding four new subparagraphs (X), (Y), (Z), and (AA) to read 35 as follows: 36 (X) For taxable years beginning on or after January first, two thou- 37 sand twenty-five, in the case of qualified production property described 38 in paragraph two of subsection (n) of section one hundred sixty-eight of 39 the internal revenue code, the amount of any deduction allowed pursuant 40 to subsection (a) of section one hundred sixty-seven of the internal 41 revenue code as if the taxpayer has not made an election pursuant to 42 subsection (n) of section one hundred sixty-eight of the internal reven- 43 ue code. 44 (Y) For taxable years beginning on or after January first, two thou- 45 sand twenty-five, the amount of any foreign and domestic research or 46 experimental expenditures, as defined in sections one hundred seventy- 47 four and 174A of the internal revenue code, paid or incurred in each 48 taxable year on and after January first, two thousand twenty-five, amor- 49 tized over a sixty-month period as if the election in subsection (c) of 50 section 174A of the internal revenue code applied to such foreign and 51 domestic research or experimental expenditures. 52 (Z) For taxable years beginning on or after January first, two thou- 53 sand twenty-five, the remaining amount of any foreign and domestic 54 research or experimental expenditures, as defined in sections one 55 hundred seventy-four and 174A of the internal revenue code, paid or 56 incurred prior to January first, two thousand twenty-five, determined as 
 A. 10273 4 1 if section one hundred seventy-four of the internal revenue code in 2 effect as of January first, two thousand twenty-two, applied to such 3 expenditures. 4 (AA) For taxable years beginning on or after January first, two thou- 5 sand twenty-five, in the case of section 179 property as described in 6 subsection (d) of section one hundred seventy-nine of the internal 7 revenue code with respect to such property the amount of any deduction 8 made pursuant to section 179 of the internal revenue code as it shall 9 have been in effect as of January first, two thousand twenty-two. 10 § 6. Paragraph 2 of subdivision (b) of section 1503 of the tax law is 11 amended by adding three new subparagraphs (AA), (BB), and (CC) to read 12 as follows: 13 (AA) For taxable years beginning on or after January first, two thou- 14 sand twenty-five, in the case of qualified production property described 15 in paragraph two of subsection (n) of section one hundred sixty-eight of 16 the internal revenue code, any amount which the taxpayer claimed as a 17 deduction under subsection (a) of section one hundred sixty-seven of the 18 internal revenue code that included an allowance solely as a result of 19 an election made pursuant to subsection (n) of section one hundred 20 sixty-eight of the internal revenue code. 21 (BB) For taxable years beginning on or after January first, two thou- 22 sand twenty-five, any amount claimed as a deduction under sections one 23 hundred seventy-four and 174A of the internal revenue code in effect as 24 of January first, two thousand twenty-five, and any amount claimed as a 25 deduction pursuant to federal Public Law 119-21, title VII, section 26 70302(f)(2)(a), for foreign and domestic research or experimental 27 expenditures, as defined in sections one hundred seventy-four and 174A 28 of the internal revenue code. 29 (CC) For taxable years beginning on or after January first, two thou- 30 sand twenty-five, in the case of section 179 property described in 31 subsection (d) of section one hundred seventy-nine of the internal 32 revenue code with respect to such property the amount of the deduction 33 allowable under section one hundred seventy-nine of the internal revenue 34 code. 35 § 7. This act shall take effect immediately and shall apply to taxable 36 years beginning on or after January 1, 2025.