NY A09433

Creates two categories of electing S corporations: "electing resident S corporations" (all shareholders are New York residents) and "electing standard S corporations" (those with non-resident shareholders).

Electing resident S corporations are taxed on all income included in shareholder taxable income under Article 22, while electing standard S corporations are taxed only on income from New York sources.

Requires S corporations to certify residency status of all shareholders at time of election; certification is irrevocable as of the election due date, with non-certifying corporations automatically treated as standard S corporations.

Allows partners, members, and shareholders to exclude pass-through entity taxes from federal adjusted gross income on New York tax returns, including similar taxes imposed by other states or the District of Columbia.

For taxable year 2022, extends the certification deadline for electing resident S corporations to March 15, 2023, and requires staggered estimated tax payments with 75% of annual payment due by September 15, 2022.