New Jersey Tax Division Issues Bulletin on Changes to Corporation Business Tax Rules

The New Jersey Division of Taxation Oct. 11 issued a bulletin on changes to the corporation business tax rules related to the dividend exclusion and the historic ordering of net operating losses, the dividend exclusion (DRD), and the international banking facility deduction (IBF), for corporate income tax purposes. The bulletin provides: 1) the DRD and the IBF are now calculated pre-allocation, effective for privilege periods ending on and after July 31; 2) the prior net operating loss conversion carryover deduction (PNOLs) and net operating loss carryovers (NOLs) are calculated post-allocation; 3) taxpayers can’t adjust NOLs and PNOLs from periods ending ...