S. 3750 2
(a) sections one through eight shall not apply to taxable years begin-
ning on or after January 1, 2011;
(b) sections nine, twelve, the amendment made to paragraph 9 of
subsection (a) of section 1452 of the tax law by section thirteen,
sections fifteen, sixteen, eighteen, nineteen, twenty, twenty-three,
twenty-seven, thirty and thirty-two, the amendment made to paragraph 9
of subdivision (a) of section 11-640 of the administrative code of the
city of New York by section thirty-three, sections thirty-five, thirty-
six, thirty-eight, thirty-nine, forty, and forty-five shall not apply to
corporations other than savings banks and savings and loan associations
for taxable years beginning on or after January 1, 2011.
(c) sections twenty-one, twenty-two, twenty-four, forty-one and
forty-two shall not apply to corporations other than savings banks and
savings and loan associations for taxable years beginning on or after
January 1, 2011, provided, however, that the provisions of such sections
which relate to the alternative minimum tax measured by taxable assets
shall continue to apply to all taxpayers for taxable years beginning on
or after January 1, 2011;
(d) the amendment to the section heading and the opening paragraph of
section 11-643.3 of the administrative code of the city of New York made
by section forty-three shall not apply to corporations other than
savings banks and savings and loan associations for taxable years begin-
ning on or after January 1, 2011 with respect to those provisions of
such section 11-643.3 which relate to the basic tax measured by entire
net income; and
(e) section twenty-eight, and the addition of new section 11-643.5 of
the administrative code of the city of New York made by section forty-
four shall not apply to corporations other than savings banks and
savings and loan associations for taxable years beginning on or after
January 1, 2011, provided, however, that the provisions of such sections
which relate to the alternative minimum taxes measured by assets, issued
capital stock and one hundred twenty-five dollars shall continue to
apply to all taxpayers for taxable years beginning on or after January
1, 2011].
S 2. Subdivisions (d) and (f) of section 110 of chapter 817 of the
laws of 1987, amending the tax law and the environmental conservation
law, constituting the business tax reform and rate reduction act of
1987, as amended by chapter 67 of the laws of 2010, are amended to read
as follows:
(d) The provisions of section sixty-seven of this act except insofar
as it amends paragraph 10 of subsection (b) of section 1453 of the tax
law, seventy-one and seventy-four shall apply to taxable years beginning
after December 31, 1986[, provided, however, that new paragraphs 11 and
12 of subsection (b) of section 1453 of the tax law as added by section
sixty-seven of this act, the amendments made by section seventy-one of
this act, and new subsection (i) of section 1453 of the tax law as added
by section seventy-four of this act shall not apply to taxable years
beginning on or after January 1, 2011];
(f) The provisions of section one hundred four of this act shall apply
to taxable years beginning after December 31, 1986[, and shall not apply
to corporations other than savings banks and savings and loan associ-
ations for taxable years beginning on or after January 1, 2011,
provided, however, that the provisions of such section which relate to
the alternative minimum tax measured by taxable assets shall continue to
apply to all taxpayers for taxable years beginning on or after January
1, 2011].
S. 3750 3
S 3. Subdivisions (c) and (d) of section 68 of chapter 525 of the
laws of 1988, amending the tax law and the administrative code of the
city of New York relating to the imposition of taxes in the city of New
York, as amended by chapter 67 of the laws of 2010, are amended to read
as follows:
(c) The provisions of sections one, thirty-one, thirty-two, thirty-
three, thirty-six, thirty-seven, forty through forty-five, forty-seven
and forty-eight of this act shall apply to taxable years beginning after
December 31, 1986[, provided, however, that the amendments made by
sections thirty-six and forty-one of this act, and new subdivision (i)
of section 11-641 of the administrative code of the city of New York as
added by section forty-four of this act shall not apply to taxable years
beginning on or after January 1, 2011];
(d) The provisions of section forty-six of this act shall apply to
taxable years beginning after December 31, 1986[, and shall not apply to
corporations other than savings banks and savings and loan associations
for taxable years beginning on or after January 1, 2011, provided,
however, that the provisions of such section which relate to the alter-
native minimum tax measured by taxable assets shall continue to apply to
all taxpayers for taxable years beginning on or after January 1, 2011];
S 4. Paragraphs 1 and 2 of subsection (m) of section 1452 of the tax
law, as amended by chapter 24 of the laws of 2010, are amended to read
as follows:
(1) Notwithstanding anything to the contrary contained in this section
other than subsection (n) of this section, a corporation that was in
existence before January first, two thousand [ten] ELEVEN and was
subject to tax under article nine-A of this chapter for its last taxable
year beginning before January first, two thousand [ten] ELEVEN, shall
continue to be taxable under such article for all taxable years begin-
ning on or after January first, two thousand [ten] ELEVEN and before
January first, two thousand [eleven] THIRTEEN. The preceding sentence
shall not apply to any taxable year during which such corporation is a
banking corporation described in paragraphs one through eight of
subsection (a) of this section. Notwithstanding anything to the contrary
contained in this section other than subsection (n) of this section, a
banking corporation or corporation that was in existence before January
first, two thousand [ten] ELEVEN and was subject to tax under this arti-
cle for its last taxable year beginning before January first, two thou-
sand [ten] ELEVEN, shall continue to be taxable under this article for
all taxable years beginning on or after January first, two thousand
[ten] ELEVEN and before January first, two thousand [eleven] THIRTEEN or
in which the corporation satisfies the requirements for a corporation to
elect to be taxable under this article. Provided further, that nothing
in this subsection shall prohibit a corporation that elected pursuant to
subsection (d) of this section to be taxable under article nine-A of
this chapter from revoking that election in accordance with such
subsection (d).
For purposes of this paragraph, a corporation shall be considered to
be subject to tax under article nine-A of this chapter for a taxable
year if such corporation was not a taxpayer but was properly included in
a combined report filed pursuant to section two hundred eleven of this
chapter for such taxable year and a corporation shall be considered to
be subject to tax under this article for a taxable year if such corpo-
ration was not a taxpayer but was properly included in a combined return
filed pursuant to subsection (f) or (g) of section fourteen hundred
sixty-two of this article for such taxable year. A corporation that was
S. 3750 4
in existence before January first, two thousand [ten] ELEVEN but first
becomes a taxpayer in a taxable year beginning on or after January
first, two thousand [ten] ELEVEN and before January first, two thousand
[eleven] THIRTEEN, shall be considered for purposes of this paragraph to
have been subject to tax under article nine-A of this chapter for its
last taxable year beginning before January first, two thousand [ten]
ELEVEN if such corporation would have been subject to tax under such
article for such taxable year if it had been a taxpayer during such
taxable year. A corporation that was in existence before January first,
two thousand [ten] ELEVEN but first becomes a taxpayer in a taxable year
beginning on or after January first, two thousand [ten] ELEVEN and
before January first, two thousand [eleven] THIRTEEN, shall be consid-
ered for purposes of this paragraph to have been subject to tax under
this article for its last taxable year beginning before January first,
two thousand [ten] ELEVEN if such corporation would have been subject to
tax under this article for such taxable year if it had been a taxpayer
during such taxable year.
(2) Notwithstanding anything to the contrary contained in this section
other than subsection (n) of this section, a corporation formed on or
after January first, two thousand [ten] ELEVEN and before January first,
two thousand [eleven] THIRTEEN may elect to be subject to tax under this
article or under article nine-A of this chapter for its first taxable
year beginning on or after January first, two thousand [ten] ELEVEN and
before January first, two thousand [eleven] THIRTEEN in which either (i)
sixty-five percent or more of its voting stock is owned or controlled,
directly or indirectly by a financial holding company, provided the
corporation whose voting stock is so owned or controlled is principally
engaged in activities that are described in section 4(k)(4) or 4(k)(5)
of the federal bank holding company act of nineteen hundred fifty-six,
as amended and the regulations promulgated pursuant to the authority of
such section, or (ii) it is a financial subsidiary. An election under
this paragraph may not be made by a corporation described in paragraphs
one through eight of subsection (a) of this section or in subsection (e)
of this section. In addition, an election under this paragraph may not
be made by a corporation that is a party to a reorganization, as defined
in subsection (a) of section 368 of the internal revenue code of 1986,
as amended, of a corporation described in paragraph one of this
subsection if both corporations were sixty-five percent or more owned or
controlled, directly or indirectly, by the same interests at the time of
the reorganization.
An election under this paragraph must be made by the taxpayer on or
before the due date for filing its return (determined with regard to
extensions of time for filing) for the applicable taxable year. The
election to be taxed under article nine-A of this chapter shall be made
by the taxpayer by filing the report required pursuant to section two
hundred eleven of this chapter and the election to be taxed under this
article shall be made by the taxpayer by filing the return required
pursuant to section fourteen hundred sixty-two of this article. Any
election made pursuant to this paragraph shall be irrevocable and shall
apply to each subsequent taxable year beginning on or after January
first, two thousand [ten] ELEVEN and before January first, two thousand
[eleven] THIRTEEN, provided that the stock ownership and activities
requirements described in subparagraph (i) of this paragraph are met or
such corporation described in subparagraph (ii) of this paragraph
continues as a financial subsidiary.
S. 3750 5
S 5. Paragraphs 1 and 2 of subdivision (l) of section 11-640 of the
administrative code of the city of New York, as amended by chapter 24 of
the laws of 2010, are amended to read as follows:
(1) Notwithstanding anything to the contrary contained in this section
other than subdivision (m) of this section, a corporation that was in
existence before January first, two thousand [ten] ELEVEN and was
subject to tax under subchapter two of this chapter for its last taxable
year beginning before January first, two thousand [ten] ELEVEN, shall
continue to be taxable under such subchapter for all taxable years
beginning on or after January first, two thousand [ten] ELEVEN and
before January first, two thousand [eleven] THIRTEEN. The preceding
sentence shall not apply to any taxable year during which such corpo-
ration is a banking corporation described in paragraphs one through
eight of subdivision (a) of this section. Notwithstanding anything to
the contrary contained in this section other than subdivision (m) of
this section, a banking corporation or corporation that was in existence
before January first, two thousand [ten] ELEVEN and was subject to tax
under this subchapter for its last taxable year beginning before January
first, two thousand [ten] ELEVEN, shall continue to be taxable under
this subchapter for all taxable years beginning on or after January
first, two thousand [ten] ELEVEN and before January first, two thousand
[eleven] THIRTEEN or in which the corporation satisfies the requirements
for a corporation to elect to be taxable under this subchapter. Provided
further, that nothing in this subdivision shall prohibit a corporation
that elected pursuant to subdivision (d) of this section to be taxable
under subchapter two of this chapter from revoking that election in
accordance with subdivision (d) of this section. For purposes of this
paragraph, a corporation shall be considered to be subject to tax under
subchapter two of this chapter for a taxable year if such corporation
was not a taxpayer but was properly included in a combined report filed
pursuant to subdivision four of section 11-605 of this chapter for such
taxable year and a corporation shall be considered to be subject to tax
under this subchapter for a taxable year if such corporation was not a
taxpayer but was properly included in a combined report filed pursuant
to subdivision (f) or (g) of section 11-646 of this part for such taxa-
ble year. A corporation that was in existence before January first, two
thousand [ten] ELEVEN but first becomes a taxpayer in a taxable year
beginning on or after January first, two thousand [ten] ELEVEN and
before January first, two thousand [eleven] THIRTEEN, shall be consid-
ered for purposes of this paragraph to have been subject to tax under
subchapter two of this chapter for its last taxable year beginning
before January first, two thousand [ten] ELEVEN if such corporation
would have been subject to tax under such subchapter for such taxable
year if it had been a taxpayer during such taxable year. A corporation
that was in existence before January first, two thousand [ten] ELEVEN
but first becomes a taxpayer in a taxable year beginning on or after
January first, two thousand [ten] ELEVEN and before January first, two
thousand [eleven] THIRTEEN, shall be considered for purposes of this
paragraph to have been subject to tax under this subchapter for its last
taxable year beginning before January first, two thousand [ten] ELEVEN
if such corporation would have been subject to tax under this subchapter
for such taxable year if it had been a taxpayer during such taxable
year.
(2) Notwithstanding anything to the contrary contained in this section
other than subdivision (m) of this section, a corporation formed on or
after January first, two thousand [ten] ELEVEN and before January first,
S. 3750 6
two thousand [eleven] THIRTEEN may elect to be subject to tax under this
subchapter or under subchapter two of this chapter for its first taxable
year beginning on or after January first, two thousand [ten] ELEVEN and
before January first, two thousand [eleven] THIRTEEN in which either (i)
sixty-five percent or more of its voting stock is owned or controlled,
directly or indirectly by a financial holding company, provided the
corporation whose voting stock is so owned or controlled is principally
engaged in activities that are described in section 4(k)(4) or 4(k)(5)
of the federal bank holding company act of nineteen hundred fifty-six,
as amended and the regulations promulgated pursuant to the authority of
such section or (ii) it is a financial subsidiary. An election under
this paragraph may not be made by a corporation described in paragraphs
one through eight of subdivision (a) of this section or in subdivision
(e) of this section. In addition, an election under this paragraph may
not be made by a corporation that is a party to a reorganization, as
defined in subsection (a) of section 368 of the internal revenue code of
1986, as amended, of a corporation described in paragraph one of this
subdivision if both corporations were sixty-five percent or more owned
or controlled, directly or indirectly by the same interests at the time
of the reorganization.
An election under this paragraph must be made by the taxpayer on or
before the due date for filing its return (determined with regard to
extensions of time for filing) for the applicable taxable year. The
election to be taxed under subchapter two of this chapter shall be made
by the taxpayer by filing the return required pursuant to subdivision
one of section 11-605 of this chapter and the election to be taxed under
this subchapter shall be made by the taxpayer by filing the return
required pursuant to subdivision (a) of section 11-646 of this part. Any
election made pursuant to this paragraph shall be irrevocable and shall
apply to each subsequent taxable year beginning on or after January
first, two thousand [ten] ELEVEN and before January first, two thousand
[eleven] THIRTEEN, provided that the stock ownership and activities
requirements described in subparagraph (i) of this paragraph are met or
such corporation described in subparagraph (ii) of this paragraph
continues as a financial subsidiary.
S 6. Subparagraph (iv) of paragraph 2 of subdivision (f) of section
1462 of the tax law, as amended by chapter 24 of the laws of 2010, is
amended to read as follows:
(iv) (A) Notwithstanding any provision of this paragraph, any bank
holding company exercising its corporate franchise or doing business in
the state may make a return on a combined basis without seeking the
permission of the commissioner with any banking corporation exercising
its corporate franchise or doing business in the state in a corporate or
organized capacity sixty-five percent or more of whose voting stock is
owned or controlled, directly or indirectly, by such bank holding compa-
ny, for the first taxable year beginning on or after January first, two
thousand and before January first, two thousand [eleven] THIRTEEN during
which such bank holding company registers for the first time under the
federal bank holding company act, as amended, and also elects to be a
financial holding company. In addition, for each subsequent taxable year
beginning after January first, two thousand and before January first,
two thousand [eleven] THIRTEEN, any such bank holding company may file
on a combined basis without seeking the permission of the commissioner
with any banking corporation that is exercising its corporate franchise
or doing business in the state and sixty-five percent or more of whose
voting stock is owned or controlled, directly or indirectly, by such
S. 3750 7
bank holding company if either such banking corporation is exercising
its corporate franchise or doing business in the state in a corporate or
organized capacity for the first time during such subsequent taxable
year, or sixty-five percent or more of the voting stock of such banking
corporation is owned or controlled, directly or indirectly, by such bank
holding company for the first time during such subsequent taxable year.
Provided however, for each subsequent taxable year beginning after Janu-
ary first, two thousand and before January first, two thousand [eleven]
THIRTEEN, a banking corporation described in either of the two preceding
sentences which filed on a combined basis with any such bank holding
company in a previous taxable year, must continue to file on a combined
basis with such bank holding company if such banking corporation, during
such subsequent taxable year, continues to exercise its corporate fran-
chise or do business in the state in a corporate or organized capacity
and sixty-five percent or more of such banking corporation's voting
stock continues to be owned or controlled, directly or indirectly, by
such bank holding company, unless the permission of the commissioner has
been obtained to file on a separate basis for such subsequent taxable
year. Provided further, however, for each subsequent taxable year begin-
ning after January first, two thousand and before January first, two
thousand [eleven] THIRTEEN, a banking corporation described in either of
the first two sentences of this clause which did not file on a combined
basis with any such bank holding company in a previous taxable year, may
not file on a combined basis with such bank holding company during any
such subsequent taxable year unless the permission of the commissioner
has been obtained to file on a combined basis for such subsequent taxa-
ble year.
(B) Notwithstanding any provision of this paragraph other than clause
(A) of this subparagraph, the commissioner may not require a bank hold-
ing company which, during a taxable year beginning on or after January
first, two thousand and before January first, two thousand [eleven]
THIRTEEN, registers for the first time during such taxable year under
the federal bank holding company act, as amended, and also elects to be
a financial holding company, to make a return on a combined basis for
any taxable year beginning on or after January first, two thousand and
before January first, two thousand [eleven] THIRTEEN with a banking
corporation sixty-five percent or more of whose voting stock is owned or
controlled, directly or indirectly, by such bank holding company.
S 7. Subparagraph (iv) of paragraph 2 of subdivision (f) of section
11-646 of the administrative code of the city of New York, as amended by
chapter 24 of the laws of 2010, is amended to read as follows:
(iv) (A) Notwithstanding any provision of this paragraph, any bank
holding company exercising its corporate franchise or doing business in
the city may make a return on a combined basis without seeking the
permission of the commissioner with any banking corporation exercising
its corporate franchise or doing business in the city in a corporate or
organized capacity sixty-five percent or more of whose voting stock is
owned or controlled, directly or indirectly, by such bank holding compa-
ny, for the first taxable year beginning on or after January first, two
thousand and before January first, two thousand [eleven] THIRTEEN during
which such bank holding company registers for the first time under the
federal bank holding company act, as amended, and also elects to be a
financial holding company. In addition, for each subsequent taxable year
beginning after January first, two thousand and before January first,
two thousand [eleven] THIRTEEN, any such bank holding company may file
on a combined basis without seeking the permission of the commissioner
S. 3750 8
with any banking corporation that is exercising its corporate franchise
or doing business in the city and sixty-five percent or more of whose
voting stock is owned or controlled, directly or indirectly, by such
bank holding company if either such banking corporation is exercising
its corporate franchise or doing business in the city in a corporate or
organized capacity for the first time during such subsequent taxable
year, or sixty-five percent or more of the voting stock of such banking
corporation is owned or controlled, directly or indirectly, by such bank
holding company for the first time during such subsequent taxable year.
Provided however, for each subsequent taxable year beginning after Janu-
ary first, two thousand and before January first, two thousand [eleven]
THIRTEEN, a banking corporation described in either of the two preceding
sentences which filed on a combined basis with any such bank holding
company in a previous taxable year, must continue to file on a combined
basis with such bank holding company if such banking corporation, during
such subsequent taxable year, continues to exercise its corporate fran-
chise or do business in the city in a corporate or organized capacity
and sixty-five percent or more of such banking corporation's voting
stock continues to be owned or controlled, directly or indirectly, by
such bank holding company, unless the permission of the commissioner has
been obtained to file on a separate basis for such subsequent taxable
year. Provided further, however, for each subsequent taxable year begin-
ning after January first, two thousand and before January first, two
thousand [eleven] THIRTEEN, a banking corporation described in either of
the first two sentences of this clause which did not file on a combined
basis with any such bank holding company in a previous taxable year, may
not file on a combined basis with such bank holding company during any
such subsequent taxable year unless the permission of the commissioner
has been obtained to file on a combined basis for such subsequent taxa-
ble year.
(B) Notwithstanding any provision of this paragraph other than clause
(A) of this subparagraph, the commissioner may not require a bank hold-
ing company which, during a taxable year beginning on or after January
first, two thousand and before January first, two thousand [eleven]
THIRTEEN, registers for the first time during such taxable year under
the federal bank holding company act, as amended, and also elects to be
a financial holding company, to make a return on a combined basis for
any taxable year beginning on or after January first, two thousand and
before January first, two thousand [eleven] THIRTEEN with a banking
corporation sixty-five percent or more of whose voting stock is owned or
controlled, directly or indirectly, by such bank holding company.
S 8. This act shall take effect immediately.
