NY Tax L § 1505 (2021)
2021 New York Laws TAX - Tax Article 33 - Franchise Taxes on Insurance Corporations 1505 - Limitation on Tax.

§  1505.  Limitation  on  tax.  (a)  (1)  Domestic,  foreign and alien insurance   corporations    except    life    insurance    corporations. Notwithstanding  the  provisions  of  sections  fifteen  hundred one and fifteen hundred ten of this article, and except as otherwise provided in paragraph two of this subdivision, the amount  of  taxes  imposed  under such  sections  for  taxable  years beginning on or after January first, nineteen hundred seventy-seven and before January  first,  two  thousand three, computed without regard to any credits allowable against such tax other  than  those  credits  provided  under subdivisions (g) and (h) of section fifteen hundred eleven of this  article,  shall  not  exceed  an amount  computed  as  if such taxes were determined solely under section fifteen hundred ten, except that for purposes of the limitation provided herein, the rate of tax under such section shall be deemed to be (i) two and six-tenths percent for taxable years beginning on or  after  January first,  nineteen  hundred  seventy-seven  and  before  July  first,  two thousand, (ii) two and four tenths percent for taxable  years  beginning after  June  thirtieth, two thousand and before July first, two thousand one, (iii) two and two tenths percent for taxable years beginning  after June  thirtieth,  two  thousand  one and before July first, two thousand two, and (iv)  two  percent  for  taxable  years  beginning  after  June thirtieth, two thousand two.  (2)  Domestic,  foreign  and  alien  life  insurance corporations. The provisions of this paragraph shall apply to  taxpayers  subject  to  tax under paragraph one of subdivision (b) of section fifteen hundred ten of this article. Notwithstanding the provisions of sections fifteen hundred one and fifteen hundred ten of this article, the amount of taxes imposed under  such  sections  for  taxable  years beginning on or after January first, nineteen hundred seventy-seven, computed without  regard  to  any credits  allowable  against  such  tax other than those credits provided under subdivisions (g) and (h) of section fifteen hundred eleven of this article, shall not exceed an amount  computed  as  if  such  taxes  were determined  solely  under  section  fifteen hundred ten, except that for purposes of the limitation provided herein, the rate of tax  under  such section shall be deemed to be (i) two and six-tenths percent for taxable years   beginning   on   or   after   January  first,  nineteen  hundred seventy-seven and before January first, nineteen  hundred  ninety-eight, and  (ii)  two  percent  for taxable years beginning on or after January first, nineteen hundred ninety-eight.  (b) Notwithstanding the provisions of sections fifteen hundred one and fifteen hundred ten of this article, in the case of taxpayers subject to tax under subdivision (b) of section  fifteen  hundred  ten,  the  total amount   of   tax  imposed  under  this  article,  computed  before  the application of any credits allowable against such tax, shall in no event be less than the amount computed as if such tax  was  determined  solely under  section  fifteen  hundred  ten, except that the rate of tax under section fifteen hundred ten shall be deemed to be  one  and  five-tenths percent.  (c)  For  purposes  of  the limitation set forth in subdivision (a) of this section,  in  the  case  of  an  insurance  corporation  more  than ninety-five  percent of whose premiums are received as consideration for annuity contracts  or  are  for  policies  and  insurance  described  in paragraph  two of subdivision (c) of section fifteen hundred ten of this article, in determining the amount of tax computed solely under  section fifteen  hundred  ten  of this article, gross direct premiums subject to tax  under  such  section  shall  include  such  amounts   received   as consideration  for  annuity  contracts  and  premiums  for  policies and insurance, including any  separate  costs  assessed  by  such  insurance corporation  upon  its  policyholders,  described  in  paragraph  two of  subdivision (c) of such section that exceed ninety-five percent  of  all premiums  received,  including  consideration  for annuity contracts and premiums for policies and insurance (and any separate costs assessed  by such   insurance  corporations  upon  its  policyholders)  described  in paragraph two of subdivision (c) of such section.