New York Quickly Drops U.S. Virus Relief on Tax Write-Offs (2)

New York may be starting a trend, becoming the first state to decouple from a provision in the federal virus response package that temporarily relaxes limits on business interest payment deductions.

The state Legislature, in an item buried in an omnibus budget bill (A.9508B/S.7508B), amended the New York tax law and administrative code to require taxpayers to continue to limit their deduction for business interest expenses to 30% of the adjusted taxable income on their state and New York City returns. That’s the case even if taxpayers elect to use the more generous 50% limit allowed for federal ...