LBD16168-01-0
A. 10096 2
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
in existence before January first, two thousand [eight] TEN but first
becomes a taxpayer in a taxable year beginning on or after January
first, two thousand [eight] TEN and before January first, two thousand
[ten] ELEVEN, 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 [eight] TEN 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
[eight] TEN but first becomes a taxpayer in a taxable year beginning on
or after January first, two thousand [eight] TEN and before January
first, two thousand [ten] ELEVEN, shall be considered 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 [eight]
TEN if such corporation would have been subject to tax under this arti-
cle 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, [as added by a chapter of the
laws of two thousand seven,] a corporation formed on or after January
first, two thousand [eight] TEN and before January first, two thousand
[ten] ELEVEN 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 [eight] TEN and before January
first, two thousand [ten] ELEVEN in which either (i) sixty-five percent
or more of its voting stock is owned or controlled, directly or indi-
rectly by a financial holding company, provided the corporation whose
voting stock is so owned or controlled is principally engaged in activ-
ities 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
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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 [eight] TEN and before January first, two thousand
[ten] ELEVEN, provided that the stock ownership and activities require-
ments 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 2. 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 201
of the laws of 2009, 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 [eight] TEN and was subject
to tax under subchapter two of this chapter for its last taxable year
beginning before January first, two thousand [eight] TEN, shall continue
to be taxable under such subchapter for all taxable years beginning on
or after January first, two thousand [eight] TEN and before January
first, two thousand [ten] ELEVEN. 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 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 [eight] TEN and was subject to tax under this subchapter
for its last taxable year beginning before January first, two thousand
[eight] TEN, shall continue to be taxable under this subchapter for all
taxable years beginning on or after January first, two thousand [eight]
TEN and before January first, two thousand [ten] ELEVEN 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 subdi-
vision (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 taxable year. A corporation that
was in existence before January first, two thousand [eight] TEN but
first becomes a taxpayer in a taxable year beginning on or after January
first, two thousand [eight] TEN and before January first, two thousand
[ten] ELEVEN, shall be considered 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 [eight] TEN 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 [eight] TEN but first becomes a taxpayer in a taxable year
beginning on or after January first, two thousand [eight] TEN and before
January first, two thousand [ten] ELEVEN, shall be considered for
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purposes of this paragraph to have been subject to tax under this
subchapter for its last taxable year beginning before January first, two
thousand [eight] TEN 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 [eight] TEN and before January first,
two thousand [ten] ELEVEN 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 [eight] TEN and
before January first, two thousand [ten] ELEVEN 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 [eight] TEN and before January first, two thousand
[ten] ELEVEN, provided that the stock ownership and activities require-
ments 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 3. Subparagraph (iv) of paragraph 2 of subdivision (f) of section
1462 of the tax law, as amended by section 5 of part H of chapter 60 of
the laws of 2007, 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 [ten] ELEVEN during
which such bank holding company registers for the first time under the
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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 [ten] ELEVEN, 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
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 [ten]
ELEVEN, 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 [ten] ELEVEN, 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 [ten] ELEVEN,
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 Janu-
ary first, two thousand [ten] ELEVEN 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 4. 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
section 7 of part H of chapter 60 of the laws of 2007, 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
A. 10096 6
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 [ten] ELEVEN 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 [ten] ELEVEN, 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 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 [ten]
ELEVEN, 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 [ten] ELEVEN, 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 [ten] ELEVEN,
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 Janu-
ary first, two thousand [ten] ELEVEN 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 5. This act shall take effect immediately.