new york city department of finance instructions …€¦ · · 2016-09-19l section 2 of chapter...

Instructions for Form NYC-3LGeneral Corporation Tax Return For fiscal years beginning in 2013 or for calendar year 2013

l Royalty payments -- For tax years beginning on or after January1, 2013, the General Corporation Tax has been amended to change the treatment of roy-alty payments to related members. Under prior law, taxpayers who made royalty payments to related entities were required to add back the amount ofthe payments to taxable income if those payments were deducted when calculating federal taxable income and if the royalty recipient, under certain con-ditions, could exclude the royalty income. Ad. Code section 11-602(8)(n), as amended, eliminates the income exclusion previously allowed to certainroyalty recipients and increases to four the number of exceptions to the add-back requirement. Part E of Chapter 59 of the Laws of 2013, § 10. Formore information, see “Royalty Payments to Related Members,” below.

l Local Law 67 of 2009, as amended, added section 11-604(21) to the Ad. Code, which provides a new biotechnology credit for tax years 2010 through2015 to certain qualified emerging technology companies for certain costs and expenses incurred.

l Section 2 of Chapter 201 of the Laws of 2009 provides for a phase-in of single factor allocation over 10 years beginning in 2009. For taxable years be-ginning in 2013, the business allocation factor will be a weighted average composed of 16.5% of New York City property over total property, 16.5%of New York City wages over total wages and 67% of New York City receipts over total receipts.

l For taxable years beginning after 2010, the election to double-weight the gross income percentage for manufacturers is no longer available. Note: Thephase-in of single factor allocation is now more advantageous than double-weighting.

l Section 17 of Chapter 201 of the Laws of 2009 replaced the $300 fixed dollar minimum tax under the General Corporation Tax (“GCT”) with a sliding scalefixed dollar minimum tax based on receipts allocated to New York City for tax years beginning after 2008. See Ad Code § 11-604(1)(E)(a)(4) as amended.

l Mandatory Combination – A 2009 amendment now requires the mandatory combination of related GCT taxpayers with substantial intercorporate trans-actions, regardless of the transfer price used in the intercorporate transactions. See Ad Code § 11-605(4), as amended by section 4 of Chapter 201 ofthe Laws of 2009. For more information see the instructions for Form NYC-3A.

l The law was changed in 2009 to add back the Metropolitan Commuter Transportation Mobility Tax (“MTA Payroll Tax”) under Article 23 of the NewYork State Tax Law. GCT taxpayers must add back the MTA Payroll Tax to the extent it was deducted in computing federal taxable income. See AdCode § 11-602(8)(b)(19) as added by section 17 of Part C of Chapter 25 of the Laws of 2009.

l Termination of GCT tax status under Gramm-Leach-Bliley transition rules - The law was amended in 2009 to provide conditions under which corpo-rations subject to tax under the General Corporation Tax (GCT) as a result of the transition rules relating to the Gramm-Leach-Bliley provisions willno longer be taxable under the GCT. If any of the conditions exist or occur in a tax year beginning on or after January 1, 2009, such a corporation willbe taxable under the Banking Corporation Tax (BCT), rather than the GCT, as of the first day of the tax year in which the condition applied. Adminis-trative Code section 11-640(m), as added by Chapter 201 of the Laws of 2009, section 32.

l Captive Real Estate Investment Trusts (REITs) and Regulated Investment Companies (RICs) - For tax years beginning on or after January 1, 2009, thelaw has been changed concerning the tax treatment of “captive” REITs and RICs, that is, those where more than 50% of the voting stock is owned or con-trolled, directly or indirectly, by a single corporation. Under those changes, if a corporation subject to the GCT directly owns over 50% of the voting stockof a captive REIT or RIC or is the closest controlling shareholder of the voting stock of a captive REIT or RIC, the REIT or RIC may be subject to theGCT and required to be included in a GCT combined return with that corporation. Chapter 201, section 9 of the Laws of 2009. For more information,see “Captive Real Estate Investment Trusts (REITs) and Regulated Investment Companies (RICs),” below.

l For purposes of the New York City Unincorporated Business Tax, General Corporation Tax and Banking Corporation Tax, the City has “decoupled”from the federal bonus depreciation allowed under the Economic Stimulus Act of 2008 and subsequent related legislation, except with respect to thedepreciation deductions allowed with respect to “qualified New York liberty zone property” and “qualified property” placed in service in the ResurgenceZone (generally the area in the borough of Manhattan south of Houston Street and north of Canal Street). For City tax purposes, depreciation deduc-tions for all other “qualified property” must be calculated as if the property was placed in service prior to September 11, 2001. Local Law 17 of 2002.See Form NYC-399Z and Finance Memorandum 13-1, “Application of IRC Section 280F Limits to Sports Utility Vehicles”for more information.

l For tax years beginning after 2006, taxpayers with (1) gross income, as defined under §61 of the Internal Revenue Code, of less than $250,000, (2) a businessallocation of 100%, and (3) no investment capital or income, or subsidiary capital or income are exempt from having to determine the alternative tax on cap-ital and the alternative tax on entire net income plus compensation. See section 11-604(1)(I) of the Administrative Code of the City of New York, as added byChapter 491 of the Laws of 2007. If a taxpayer meets these criteria and is otherwise eligible to file Form NYC-4S, the taxpayer may be eligible to use FormNYC-4S-EZ. To determine if you can use Form NYC-4S-EZ, see the instructions for that form. Taxpayers who meet the three criteria noted above but arenot eligible to file a Form NYC-4S-EZ must use Form NYC-3L but need not calculate the alternative tax on capital and the alternative tax on entire net in-come plus compensation. For purposes of computing entire net income for City purposes, corporations, other than New York State S corporations, that meetthe three requirements listed above may elect to use the sum of New York State entire net income and any deductions taken for the taxable year in computingfederal taxable income for General Corporation Tax paid or accrued.

Highlights of Recent Tax Law Changes for Corporations

NEW YORK CITY DEPARTMENT OF FINANCE

Payments may be made on the NYC Department of Finance website at nyc.gov/finance, or via check or money order. If pay-ing with check or money order, do not include these payments with your New York City return. Checks and money orders mustbe accompanied by payment voucher form NYC-200V and sent to the address on the voucher. Form NYC-200V must be post-marked by the return due date to avoid late payment penalties and interest. See form NYC-200V for more information.

IMPORTANT INFORMATION CONCERNING FORM NYC-200V AND PAYMENT OF TAX DUE

GENERAL INFORMATION

S CORPORATIONSAn S corporation is subject to the General Cor-poration Tax (GCT) and must file either FormNYC-4S, NYC-4S-EZ or NYC-3L, whicheveris applicable. Under certain limited circum-stances, an S corporation may be permitted orrequired to file a combined return. See, e.g., Fi-nance Memorandum 99-3 for information re-garding the treatment of qualified subchapter Ssubsidiaries. Federal S corporation taxpayersmust now complete the new form NYC-ATT-S-CORP, Calculation of Federal Taxable In-come for S Corporations and include it withtheir GCT filing. For more information seeForm NYC-ATT-S-CORP.CORPORATION DEFINEDUnincorporated entities electing to be treatedas associations taxable as corporations for fed-eral income tax purposes pursuant to the“check-the-box” rules under IRC §7701(a)(3)are treated as corporations for City tax pur-poses and are not subject to the Unincorpo-rated Business Tax. Eligible entities having asingle owner disregarded as a separate entityunder the “check-the-box” rules and treated aseither a sole proprietorship or a branch for fed-eral tax purposes will be similarly treated forCity tax purposes. See Finance Memorandum99-1 for additional information.

Royalty Payments to Related MembersFor tax years beginning on or after January 1,2013, the General Corporation Tax has beenamended to change the treatment of royaltypayments to related members. Under priorlaw, taxpayers who made royalty payments torelated entities were required to add back theamount of the payments to taxable income ifthey were deducted when calculating federaltaxable income. To avoid double taxation, ifthe royalty recipient was also a New York tax-payer, the statute allowed the recipient to ex-clude the royalty income if the related memberadded back the deduction for the royalty pay-ment expense. Ad. Code section 11-602(8)(n), as amended,eliminates the income exclusion previously al-lowed to certain royalty recipients. It alsomodifies the two previous exceptions to theadd-back requirement and adds two additionalexceptions. Those four exceptions generallycan apply in following situations (for addi-tional conditions that must be met, see the Ad.Code sections indicated below): l If all or part of the royalty payment a re-

lated member received was then paid toan unrelated third party during the taxyear, that portion of the payment will beexempt if the transaction giving rise to theoriginal royalty payment to the relatedmember was undertaken for a valid busi-ness purpose, and the related member was

subject to tax on the royalty payment inthis city or another city within the UnitedStates or a foreign nation or some combi-nation thereof (Ad. Code section 11-602(8)(n)(2)(B)(i));

l If the taxpayer's related member paid anaggregate effective rate of tax on the roy-alty payment, to this city or another citywithin the United States or some combi-nation thereof, that is not less than 80 per-cent of the rate of tax that applied to thetaxpayer under Ad. Code section 11-643.5for the tax year (Ad. Code section 11-602(8)(n)(2)(B)(ii));

l If the related member is organized underthe laws of a foreign country that has a taxtreaty with the United States, the relatedmember’s income from the transactionwas taxed in such country at an effectiverate of tax at least equal to that imposedby this city, and the transaction giving riseto the royalty was undertaken for a validbusiness purpose and reflected an arm'slength relationship. (Ad. Code section 11-602(8)(n)(2)(B)(iii)); or

l If the taxpayer and the Department of Fi-nance agree to alternative adjustments thatmore appropriately reflect the taxpayer's in-come. (Ad. Code section 11-602(8)(n)(2)(B)(iv)).

The law as amended also defines the term “re-lated member” by linking it to the definitionin Internal Revenue Code section 465(b)(3)(c),but substituting 50 percent for the 10 percentownership threshold.

FOR TAXPAYERS CLAIMINGA NET OPERATINGLOSS DEDUCTIONTaxpayers claiming a deduction for a Net Oper-ating Loss must complete the new form NYC-NOLD-GCT, Net Operating Loss Computationand include it with their GCT filing. For moreinformation see Form NYC-NOLD-GCT.

REPLACEMENT OF $300 FIXED DOLLARMINIMUM TAX WITH FIXED DOLLARMINIMUM TAX BASED ON ALLOCATEDRECEIPTSFor tax years beginning after 2008, the $300fixed dollar minimum tax has been replacedwith a sliding scale fixed dollar minimum taxbased on receipts allocated to New York City.The sliding scale is the same as the one used todetermine the fixed dollar minimum tax underthe New York State Franchise Tax, but the re-ceipts used to determine the fixed dollar mini-mum tax are receipts allocated to the Cityinstead of receipts allocated to New York State,as is done under the Franchise Tax. The amountof City receipts for this purpose is the same asthe amount used for determining the taxpayer’sbusiness allocation percentage. See Ad Code §

11-604(1)(E)(a)(4) as amended by Ch. 201, §17, of the Laws of 2009.

TRANSITIONAL PROVISIONS RELAT-ING TO THE ENACTMENT OF THEGRAMM-LEACH-BLILEY ACT OF 1999Existing CorporationsExcept for a banking corporation described inparagraphs (1) through (8) of Ad. Code sec-tion 11-640(a) (see Form NYC-1, Instructions,"Who Must File" items A through C), for tax-able years beginning after 1999 and before2001, a corporation that was in existence be-fore January 1, 2000, was taxable under thesame tax (either GCT or NYC Banking Cor-poration Tax (BCT)) as applied to it for its lasttaxable year beginning before January 1, 2000.For this purpose, a corporation was consideredto have been subject to a tax prior to 2000 if itwas not a taxpayer but was properly includedin a combined report filed by another corpo-ration under that tax. A corporation that was inexistence prior to 2000 but first became sub-ject to tax after 2000 is considered to havebeen subject to whichever tax, GCT or BCT,would have applied based on its activities hadit been a taxpayer prior to 2000.The transitional provisions relating to theGramm-Leach-Bliley Act of 1999 with respectto existing corporations have been extended toapply to each tax year following 2000. As aresult, existing corporations to which the tran-sitional rules apply remain required to be taxedunder the same tax, GCT or BCT, that appliedfor the preceding years. See Ad. Code §11-640(h)-(l) for more information.The transition rules were most recently ex-tended to require that a corporation that was inexistence before January 1, 2012, be taxed inyears beginning after 2011 and before 2015under the tax, either the GCT or BCT, that ap-plied to it for the last year beginning before2012. However, for years beginning after2011, only corporations that meet the defini-tion of a banking corporation in Ad. Code sec-tion 11-640(a) (see “Who Must File,” below)will be allowed to remain subject to the BankTax under the transitional provisions. Ad. Code§11-640(l)(1) as last amended by Ch. 59, PartR, §3 of the Laws of 2012.Newly-Formed CorporationsA corporation formed on or after January 1,2000, and before January 1, 2001, was per-mitted to elect to be subject to either the GCTor BCT for its first taxable year beginningafter 1999 and before 2001 provided either:l the corporation was a financial subsidiary,

orl at least 65% of the corporation's voting

stock is owned or controlled, directly orindirectly, by a financial holding com-

Instructions for Form NYC-3L - 2013

pany, and the corporation is principallyengaged in activities described in sections4(k)4 or 4(k)5 of the Bank Holding Com-pany Act of 1956, as amended, or de-scribed in regulations promulgated underthat section.

A financial subsidiary is a corporation whosevoting stock is 65% or more owned or con-trolled, directly or indirectly, by a banking cor-poration (including a corporation that haselected to be subject to the BCT under thesetransition rules) described in paragraphs (1)through (3) of Ad. Code section 11-640(a) anddescribed in 12 USCS section 24a or section46 of the Federal Deposit Insurance Act.A financial holding company is a corporationthat has filed with the Federal Reserve Boarda written declaration of its election to be a fi-nancial holding company under section 4(i) ofthe Bank Holding Company Act of 1956, asamended, provided the Federal Reserve Boardhas not found that election to be ineffective.An election by a newly-formed corporationunder this provision must have been made onor before the due date for filing its return for theapplicable year, including extensions, and wasmade by filing the return required under the ap-propriate tax. The election is irrevocable.The transitional provisions relating to theGramm-Leach-Bliley Act of 1999 with respectto newly-formed corporations have been ex-tended to apply to each tax year following2000. As a result, a newly-formed corporationis permitted to elect to be taxed under eitherthe GCT or BCT for its first tax year if it meetsthe requirements described above. See Ad.Code §640(h)-(l) for more information.

The transition rules were most recently extended topermit a qualifying corporation formed on or afterJanuary 1, 2012, and before January 1, 2015, toelect to be taxed under either the GCT or BCT forits first tax year beginning after 2011 and before2015. Ad. Code §11-640(l)(2) as last amended byCh. 59, Part R, §3 of the Laws of 2012.However, see the section entitled “Termina-tion of GCT Tax Status under Transitional Pro-visions,” below, for changes to the lawapplicable to tax years beginning on or afterJanuary 1, 2009, and a description of when acorporation will no longer be taxable under theGCT.Combined Filing under Transitional Provi-sionsA bank holding company doing business in theCity that, during a taxable year beginning after1999 and before 2015, registers for the first timeas a bank holding company under the BankHolding Company Act of 1956, as amended,and elects to be a financial holding company,may file a combined report under the BCT for

such year with one or more banking corpora-tions doing business in the City and 65% ormore owned or controlled, directly or indirectly,by that bank holding company without seekingpermission from the Commissioner. In addition,such bank holding company may, without seek-ing the Commissioner's permission: (i) includein a combined report filed for a subsequent yearbeginning after 1999 and before 2015 any eligi-ble banking corporation that, for the first time insuch subsequent year, either is doing business inthe City or meets the above ownership require-ments; and (ii) eliminate from a combined re-port filed in any such subsequent year anycorporation no longer meeting the requirementsfor combination in such subsequent year. Ex-cept as provided above, the permission of theCommissioner is required for any such bankholding company to cease to file on a combinedbasis, elect to file on a combined basis or makeany changes to the composition of the group ofcorporations filing on a combined basis for anysubsequent year. Ad Code §11-646(f)(2)(iv).

Termination of GCT Tax Status underTransitional Provisions

The law was changed in 2009 to provide condi-tions under which corporations subject to taxunder the GCT as a result of the transition rulesrelating to the Gramm-Leach-Bliley provisions(both existing and newly-formed corporationsas described above) will no longer be taxableunder the GCT. If any of the conditions set outbelow exist or occur in a tax year beginning onor after January 1, 2009, such a corporation willbe taxable under the BCT, rather than the GCT,as of the first day of the tax year in which thecondition applied:• The corporation ceases to be a taxpayerunder the GCT.

• The corporation becomes subject to thefixed dollar minimum tax under Ad. Codesection 11-604(1)(E)(a)(4).

• The corporation has no wages or receipts al-locable to New York City pursuant to Ad.Code section 11-604(3) or is otherwise inac-tive. However, this condition does not applyto a corporation that is engaged in the activeconduct of a trade or business, or substan-tially all of the assets of which are stock andsecurities of corporations that are directly orindirectly controlled by it and are engaged inthe active conduct of a trade or business.

• 65% or more of the voting stock of the cor-poration becomes owned or controlled di-rectly by a corporation that acquired thestock in a transaction (or series of relatedtransactions) that qualifies as a purchasewithin the meaning of Internal RevenueCode section 338(h)(3), unless both corpo-rations, immediately before the purchase,were members of the same affiliated group

(as such term is defined in IRC section 1504without regard to the exclusions providedfor in 1504(b)).

• The corporation, in a transaction or series ofrelated transactions, acquires assets, whetherby contribution, purchase, or otherwise, hav-ing an average value as determined in accor-dance with Ad. Code section 11-604(2) (or, ifgreater, a total tax basis) in excess of 40% ofthe average value (or, if greater, the total taxbasis) of all assets of the corporation imme-diately before the acquisition and, as a resultof the acquisition, the corporation is princi-pally engaged in a business that is differentfrom the business immediately before the ac-quisition (provided that such different busi-ness is described in Ad. Code section11-640(a)(9)(i) or (ii)). See Ad. Code section 11-640(m).

CAPTIVE REAL ESTATE INVESTMENTTRUSTS (REITS) AND REGULATED IN-VESTMENT COMPANIES (RICS) Captive REITs and RICsFor tax years beginning on or after January 1,2009, the law has been amended to provide thata captive REIT or RIC must generally be in-cluded in a combined report under the GeneralCorporation Tax (GCT) or Banking CorporationTax (BCT). Under new Ad. Code 11-601(12), aREIT or RIC is a captive REIT or RIC if morethan 50% of its voting stock is owned or con-trolled, directly or indirectly, by a single corpo-ration. Any voting stock held in a segregatedasset account of a life insurance corporation asdescribed in Internal Revenue Code section 817is not taken into account for the purpose of de-termining the percentage of stock ownership. Asexplained more below, if a corporation subjectto the GCT directly owns over 50% of the votingstock of a captive REIT or RIC or is the “closestcontrolling shareholder” of a captive REIT orRIC, then the captive REIT or RIC must be in-cluded in a combined report under the GCT withthat corporation. For these purposes, the “clos-est controlling stockholder” means the corpora-tion: (a) that indirectly owns or controls over50% of the voting stock of a captive REIT orRIC, (b) is subject to tax under the GCT or BCTor otherwise required to be included in a com-bined report or report under the GCT or BCT,and (c) is the fewest tiers of corporations away inthe ownership structure from the captive REITor RIC.If a captive REIT or RIC is required to be in-cluded in a combined report under the GCT, itwill be subject to tax under the GCT. Ad.Code § 11-605(4)(a)(5). Note that if a cap-tive REIT or RIC is required to be includedin a combined report under the BCT, it willnot be subject to tax under the GCT, and,as a result, must file an NYC-1 report. Ad.


Code section 11-640(d). Further, theGramm-Leach-Bliley transitional provi-sions do not apply to a captive REIT or RICrequired to be included in a combined re-port under the BCT as provided by Ad.Code section 11-640(g)(4).Requirement to be Included in a CombinedReport under the GCTA captive REIT or RIC must be included in acombined report under the GCT under the fol-lowing conditions: (1) A captive REIT or RIC must be included

in a combined report with the corporationthat directly owns or controls over 50% ofthe voting stock of the captive REIT orRIC if that corporation is subject to tax orrequired to be included in a combined re-port under the GCT.

(2) If over 50% of the voting stock of a cap-tive REIT or RIC is not directly owned orcontrolled by a corporation that is subjectto tax or required to be included in a com-bined report under the GCT, then the cap-tive REIT or RIC must be included in acombined report with the corporation thatis the “closest controlling” stockholder ofthe captive REIT or RIC. If the corpora-tion that is the “closest controlling” stock-holder is subject to tax or required to beincluded in a combined report under theGCT, then the captive REIT or RIC mustbe included in a combined report under theGCT.

(3) If the corporation that directly owns orcontrols the voting stock of the captiveREIT or captive RIC is described as a cor-poration that is not permitted to make acombined report as provided in Ad. Codesection 11-605(4)(a)(1), (a)(2) or (a)(4),then the captive REIT or captive RICmust determine the closest controllingshareholder under Ad. Code section 11-605(4)(a)(5)(iii) to be included in a com-bined report with that corporation. If thecorporation that is the closest controllingstockholder of the captive REIT or cap-tive RIC is a corporation not permitted tomake a combined report, then that corpo-ration is deemed to not be in the owner-ship structure of the captive REIT orcaptive RIC, and the closest controllingstockholder will be determined under Ad.Code section 11-605(4)(a)(5)(iii) withoutregard to that corporation.

(4) If a captive REIT owns the stock of aqualified REIT subsidiary (as defined inIRC section 856(i)(2)), then the qualifiedREIT subsidiary must be included in anycombined report required to be made bythe captive REIT that owns its stock.

(5) If a captive REIT or RIC is required byany of the conditions set out herein to beincluded in a combined report with an-other corporation, and that other corpora-tion is required to be included in acombined report with another corporationunder other provisions of Ad. Code 11-605(4)(a), the captive REIT or RIC mustbe included in that combined report withthose corporations.

(6) If a captive REIT or RIC is not required tobe included in a combined report or reportunder the GCT (Ad. Code § 11-605(4)(a)(5)) or BCT (Ad. Code § 11-646(f)), then the corporation will berequired to file a combined report if it ei-ther meets the substantial intercorporatetransactions requirement provided in Ad.Code 11-605(4)(a) or the inter-companytransactions or agreement, understanding,arrangement or transaction requirement ofAd Code § 11-605(4)(a)(3) is satisfied andmore than 50% of the voting stock of thecaptive REIT or the captive RIC and sub-stantially all of the capital stock of thatother corporation are owned and con-trolled, directly or indirectly, by the samecorporation.

Computation of Tax for Captive REITs andRICsIn the case of a combined report under theGCT, the tax is measured by the combined en-tire net income or combined capital of all thecorporations included in the report, includingany captive REIT or RIC. In the case of a captive REIT or RIC that mustbe included in a combined report, the entirenet income of the captive REIT must be com-puted under Ad. Code § 11-603(7) and the en-tire net income of a captive RIC must becomputed under Ad. Code § 11-603(8). In computing entire net income, the deductionunder the IRC for dividends paid by the cap-tive REIT or RIC to any member of the affili-ated group that includes the corporation thatdirectly or indirectly owns over 50% of thevoting stock of the captive REIT or RIC mustbe added back to the federal taxable income ofthe captive REIT or RIC for tax years begin-ning on or after January 1, 2009. The term af-filiated group is defined in IRC section 1504without regard to the exceptions of 1504(b).

CORPORATIONS REQUIREDTO FILE FORM NYC-3LA corporation (as defined in Section 11-602.1of the New York City Administrative Code)doing business, employing capital, or owningor leasing property in a corporate or organizedcapacity, or maintaining an office in New YorkCity must file Form NYC-3L and cannot useForm NYC-4S if:

1) it carries on business both inside and out-side New York City;

2) it has subsidiary and/or investment capital;3) it claims an optional deduction for ex-

penditures relating to air pollution controlfacilities, as provided in Section 11-602.8(g) of the NYC Admin. Code;

4) it claims a modification with respect togain arising from the sale of certain prop-erty, as provided in Section 11-602.8(h)of the NYC Admin. Code;

5) it is a real estate investment trust quali-fied under Sections 856 and 857 of the In-ternal Revenue Code (see section11-603.7 of the NYC Admin. Code);

6) it entered into a “safe harbor” lease trans-action under provisions of the InternalRevenue Code as it was in effect foragreements entered into prior to January1, 1994;

7) it claims a credit for sales and compen-sating use taxes paid in the current yearor is required to adjust its current GeneralCorporation Tax as a result of creditsclaimed in prior years. See the instruc-tions to Form NYC-9.5 and the instruc-tions for Schedule B, lines 6a and 14 formore information.

8) it claims a credit for increased real estatetax payments made to a landlord in con-nection with the relocation of employ-ment opportunities to New York City, asprovided in Section 11-604.13 of theNYC Admin. Code;

9) it claims a credit for certain costs or ex-penses incurred in relocating employmentopportunities to New York City, as pro-vided in Sections 11-604.14, 11-604.17,11-604.17-b or 11-604.19 of the NYCAdmin. Code. See Instr. to Forms NYC-9.5, NYC-9.6 and NYC-9.8;

10) it claims a modification with respect towages and salaries disallowed as a de-duction for federal income tax purposes(work incentive/jobs credit provisions), asprovided in Section 11-602.8(a)(7) of theNYC Admin. Code;

11) either separately or as a member of a part-nership, it is engaged in an insurancebusiness as a member of the New YorkInsurance Exchange;

12) it is a Regulated Investment Company asdefined in Section 851 of the InternalRevenue Code (see section 11-603.7 ofthe NYC Admin. Code);

13) it is a Domestic International Sales Cor-poration (DISC) or a Foreign Sales Cor-poration;

14) it claims a credit for New York City Un-incorporated Business Tax paid by a part-nership in which it is a partner asprovided in Section 11-604.18 of theNYC Admin. Code;

15) it will be included in a combined report(Form NYC-3A);


16) it is required by NYC Admin. Code sec-tion 1-602.8(n) to add back payments forthe use of intangibles made to relatedmembers;

17) it claims a deduction pursuant to section199 of the Internal Revenue Code (In-come Attributable to Domestic Produc-tion Activities) on its federal tax return;or

18) it claims the biotechnology credit, a creditavailable under NYC Admin. Code sec-tion 11-604.21 to certain qualified emerg-ing technology companies for certaincosts and expenses incurred.

The following are NOT required to file aGeneral Corporation Tax Return:a) A dormant corporation that did not at any

time during its taxable year engage in anyactivity or hold title to real property lo-cated in New York City

b) A nonstock corporation, organized andoperated exclusively for nonprofit pur-poses and not engaged in substantialcommercial activities, that has beengranted an exemption by the Departmentof Finance

c) Corporations subject to taxation underPart 4 of Subchapter 3 of Chapter 6, Title11 (Banking Corporations) or underChapter 11, Title 11 (Utility Corpora-tions) of the NYC Admin. Code are notrequired to file General Corporation Taxreturns. However, corporations that aresubject to tax under Chapter 11 as ven-dors of utility services are subject to theGeneral Corporation Tax in accordancewith section 11-603.4 of the NYC Admin.Code and must file a return.

d) A limited profit housing corporation or-ganized and operating pursuant to theprovisions of Article Two of the PrivateHousing Finance Law

e) Insurance corporationsf) A Housing Development Fund Company

(HDFC) organized and operating pur-suant to the provisions of Article 11 of thePrivate Housing Finance Law

g) Organizations organized exclusively forthe purpose of holding title to property asdescribed in Sections 501(c)(2) or (25) ofthe Internal Revenue Code

h) An entity treated as a Real Estate Mort-gage Investment Conduit (REMIC) forfederal income tax purposes. (Holders ofinterests in a REMIC remain taxable onsuch interests or on the income thereon.)

i) Corporations principally engaged in theconduct of a ferry business and operatingbetween any of the boroughs of the Cityunder a lease granted by the City

j) A corporation principally engaged in theconduct of an aviation, steamboat, ferryor navigation business, or two or moresuch businesses, provided that all of thecapital stock of the corporation is owned

by a municipal corporation of New Yorkk) Bank holding corporations filing on a

combined basis in accordance with Sec-tion 11-646(f) of the NYC Admin. Code

l) Corporations principally engaged in the op-eration of marine vessels whose activities inthe City are limited exclusively to the use ofproperty in interstate or foreign commerce

m) Foreign corporations that are exemptunder the provisions of Public Law 86-272. See 19 RCNY Section 11-04 (b)(11).

n) For taxable years beginning on or afterJanuary 1, 1998, an alien corporation ifits activities in the City are limited solelyto investing or trading in stocks and se-curities for its own account within themeaning of IRC §864(b)(2)(A)(ii) or in-vesting or trading in commodities for itsown account within the meaning of IRC§864(b)(2)(B)(ii) or any combination ofthese activities. See NYC Admin. Code§11-603.2-a.

NOTE:A corporation that has an officer, em-ployee, agent or representative in the City andthat is not subject to the General CorporationTax is not required to file a Form NYC-3L,NYC-3A, NYC-4S or NYC-4S-EZ but mustfile a Form NYC-245 (Section 11-605 of theNYC Admin. Code).

WHEN AND WHERE TO FILEThe due date for filing is on or before March17, 2014 or, for fiscal year taxpayers, on or be-fore the 15th day of the 3rd month followingthe close of the fiscal year.Special short-period returns: If this is NOTa final return and your federal return covered aperiod of less than 12 months as a result ofyour joining or leaving a federal consolidatedgroup or as a result of a federal IRC §338 elec-tion, this return generally will be due on thedue date for the federal return and not on thedate noted above.Check the box on the frontof the return.All returns, except refund returns:NYC DEPARTMENT OF FINANCEGENERAL CORPORATION TAXP.O. BOX 5564BINGHAMTON, NY 13902-5564

Remittances - Pay online with Form NYC-200V at nyc.gov/finance, or Mail payment andForm NYC-200V only to:NYC Department of FinanceP.O. Box 3646New York, NY 10008-3646

Returns claiming refunds:NYC DEPARTMENT OF FINANCEGENERAL CORPORATION TAXP.O. BOX 5563BINGHAMTON, NY 13902-5563

AUTOMATIC EXTENSIONSAn automatic extension of six months for filing

this return will be allowed if, by the original duedate, the taxpayer files with the Department ofFinance an application for automatic extensionon Form NYC-EXT and pays the amount prop-erly estimated as its tax. See the instructionsfor Form NYC-EXT for information regardingwhat constitutes a proper estimated tax for thispurpose. Failure to pay a proper estimatedamount will result in a denial of the extension.A taxpayer with a valid six-month automaticextension filed on Form NYC-EXT may re-quest up to two additional three-month exten-sions by filing Form NYC-EXT.1. A separateForm NYC-EXT.1 must be filed for each addi-tional three-month extension.

Mail Forms NYC-EXT and EXT.1 to the ad-dress indicated on those forms.FINAL RETURNSIf a corporation ceases to do business in NewYork City, the due date for filing a final Gen-eral Corporation Tax Return is the 15th dayafter the due date of the cessation (Section 11-605 of the NYC Admin. Code). Corporationsmay apply for an automatic six-month exten-sion for filing a final return by filing FormNYC-EXT, Application for Automatic 6-Month Extension of Time to File Business In-come Tax Return. Any tax due must be paidwith the final return or the extension,whichever is filed earlier.ACCESSING NYC TAX FORMSBy Computer - Download forms from the Fi-nance website at nyc.gov/financeBy Phone - Order forms by calling 311. Ifcalling from outside of the five NYC bor-oughs, please call 212-NEW-YORK (212-639-9675).

OTHER FORMS YOU MAY BEREQUIRED TO FILEFORM NYC-EXT - Application For Auto-matic 6-Month Extension of Time to FileBusiness Income Tax Return. File it on or be-fore the due date of the return.FORM NYC-EXT.1 - Application for Addi-tional Extension is a request for an additionalthree months of time to file a return. A corpo-ration with a valid six-month extension is lim-ited to two additional extensions.FORM NYC-222 - Underpayment of Esti-mated Tax by Corporations will help a corpo-ration determine if it has underpaid anestimated tax installment and, if necessary,compute the penalty due.FORM NYC-245 - Activities Report of Cor-porations must be filed by a corporation thathas an officer, employee, agent or representa-tive in the City but disclaims liability for theGeneral Corporation Tax.FORM NYC-399 - Schedule of New York CityDepreciation Adjustments is used to computethe allowable New York City depreciation de-


duction if a federal ACRS or MACRS depreci-ation deduction is claimed for certain propertyplaced in service after December 31, 1980.FORM NYC-399Z - Depreciation Adjustmentsfor Certain Post 9/10/01 Property may have tobe filed by taxpayers claiming depreciation de-ductions for certain sport utility vehicles or"qualified property," other than "qualified NewYork Liberty Zone property," "qualified NewYork Liberty Zone leasehold improvements"and “qualified resurgence zone property”placed in service after September 10, 2001, forfederal or New York State tax purposes. See Fi-nance Memorandum 13-1, “Application ofIRC §280F Limits to Sports Utility Vehicles.”FORM NYC-400 - Declaration of Estimated Taxby General Corporations must be filed by anycorporation whose New York City tax liabilitycan reasonably be expected to exceed $1,000 forany calendar or fiscal tax year.FORM NYC-3360 - General Corporation TaxReport of Change in Tax Base Made by Inter-nal Revenue Service and/or New York StateDepartment of Taxation and Finance is usedfor reporting adjustments in taxable income orother basis of tax resulting from an audit ofyour federal corporate tax return and/or Stateaudit of your State corporate tax return.FORM NYC-CR-A - Commercial Rent TaxAnnual Return must be filed by every tenantthat rents premises for business purposes inManhattan south of the center line of 96thStreet and whose annual or annualized grossrent for any premises is at least $200,000. (Ef-fective June 1, 2001.)FORM NYC-RPT - Real Property TransferTax Return must be filed when the corporationacquires or disposes of an interest in real prop-erty, including a leasehold interest; when thereis a partial or complete liquidation of the cor-poration that owns or leases real property; orwhen there is a transfer of a controlling eco-nomic interest in a corporation, partnership ortrust that owns or leases real property.FORM NYC-ATT-S-CORP - Calculation offederal Taxable Income for S Corporationsmust be included in the GCT filing of everyfederal S corporation.FORM NYC-NOLD-GCT - Net OperatingLoss Computation must be included in theGCT filing of every GCT taxpayer claiming anet operating loss deduction.If you have delinquent taxes and you are in-terested in the Voluntary Disclosure and Com-pliance Program, please go to our website atwww.nyc.gov/finance.

ESTIMATED TAXIf the tax for the period following that coveredby this return is expected to exceed $1,000, adeclaration of estimated tax and installmentpayments are required. Form NYC-400 is to

be used for this purpose. If the tax on this re-turn exceeds $1,000, Form NYC-400 will au-tomatically be mailed to you.If, after filing a declaration, your estimated taxsubstantially increases or decreases as a resultof a change in income, deduction or allocation,you must amend your declaration on or beforethe next date for an installment payment. Theprocedure is as follows:l Complete the amended schedule of the no-

tice of estimated tax due. (This is your quar-terly notice for payment of estimated tax.)

l Mail the bottom portion of the noticealong with your check to:NYC Department of Finance P.O. Box 3922New York, NY 10008-3922

If the amendment is made after the 15th day ofthe 9th month of the taxable year, any increasein tax must be paid with the amendment.For more information regarding estimated taxpayments and due dates, see Form NYC-400.

PENALTY FOR UNDERSTATING TAXIf there is a substantial understatement of tax(i.e., if the amount of the understatement ex-ceeds the greater of 10% of the tax required tobe shown on the return or $5,000) for any tax-able year, a penalty will be imposed equal to10% of the amount of the understated tax.The amount on which you pay the penalty canbe reduced by subtracting any item for which(1) there is or was substantial authority for theway in which the item was treated on the return,or (2) there is adequate disclosure of the rele-vant facts affecting the item’s tax treatment onthe return or in a statement attached to the re-turn.

CHANGE OF BUSINESSINFORMATIONIf there have been any changes in your busi-ness name, identification number, billing ormailing address or telephone number, completeForm DOF-1, Change of Business Informa-tion. You can obtain this form by calling 311.If calling from outside of the five NYC bor-oughs, please call 212-NEW-YORK (212-639-9675). You can also logon to nyc.gov/finance.

FOREIGN AIRLINESRetroactive to tax years beginning on or afterJanuary 1, 1989, foreign airlines that have aforeign air carrier permit pursuant to Section402 of the Federal Aviation Act of 1958 arepermitted to exclude from entire net incomethe following items:l all income from the international opera-

tion of aircraft, even though effectivelyconnected with the conduct of a trade orbusiness in the United States

l income from outside the United States that

is derived from the operation of aircraftl certain passive income derived from

sources outside the United StatesThe above exclusions are permitted providedthat the foreign country in which the airline isbased and organized grants a similar or greaterexemption from tax with respect to UnitedStates airlines. For more information, seeAdmin. Code Section 11-602.8 (c-1).For taxable years beginning on or after January1, 1994, property, receipts and wages, salariesor other personal service compensation directlyattributable to the generation of income de-scribed above not included in entire net incomeunder Admin. Code Section 11-602.8 (c-1) areexcluded when calculating the business alloca-tion percentage. See Admin. Code Section 11-604.3 (a) (6).Also for taxable years beginning on or afterJanuary 1, 1994, in calculating the tax on busi-ness and investment capital of foreign airlines,assets (and the liabilities directly or indirectlyattributable to those assets) employed in gen-erating the income excluded from entire netincome are excluded. (See Admin. Code Sec-tions 11-602.4 and 11-602.6.)

WIRELESS TELECOMMUNICATIONSSERVICE PROVIDERSEffective for tax periods beginning on andafter August 1, 2002, entities who receiveeighty percent or more of their gross receiptsfrom charges for the provision of mobiletelecommunications services to customers willbe taxed as if they were regulated utilities forpurposes of the New York City Utility Tax andGeneral Corporation Tax. Thus, such entitieswill be subject to only the New York City Util-ity Tax. The amount of gross income subjectto tax has been amended to conform to theFederal Mobile Telecommunications SourcingAct of 2000. In addition, for tax years begin-ning on and after August 1, 2002, partners inany such entity will not be subject to GeneralCorporation Tax on their distributive share ofthe income of any such entity.

SIGNATUREThis report must be signed by an officer au-thorized to certify that the statements con-tained herein are true. If the taxpayer is apublicly-traded partnership or another unin-corporated entity taxed as a corporation, thisreturn must be signed by a person duly au-thorized to act on behalf of the taxpayer.

TAX PREPARERSAnyone who prepares a return for a fee mustsign the return as a paid preparer and enter hisor her Social Security Number or PTIN. (SeeFinance Memorandum 00-1.) Include thecompany or corporation name and EmployerIdentification Number, if applicable.


Preparer Authorization: If you want toallow the Department of Finance to discussyour return with the paid preparer who signedit, you must check the "Yes" box in the signa-ture area of the return. This authorization ap-plies only to the individual whose signatureappears in the "Preparer's Use Only" sectionof your return. It does not apply to the firm, ifany, shown in that section. By checking the"Yes" box, you are authorizing the Departmentof Finance to call the preparer to answer anyquestions that may arise during the processingof your return. Also, you are authorizing thepreparer to:l give the Department any information

missing from your return,l call the Department for information about

the processing of your return or the statusof your refund or payment(s), and

l respond to certain notices that you haveshared with the preparer about math er-rors, offsets, and return preparation. Thenotices will not be sent to the preparer.

You are not authorizing the preparer to re-ceive any refund check, bind you to anything(including any additional tax liability), or oth-erwise represent you before the Department.The authorization cannot be revoked; how-ever, the authorization will automatically ex-pire no later than the due date (without regardto any extensions) for filing next year's return.Failure to check the box will be deemed adenial of authority.

SPECIFIC INSTRUCTIONSCheck the appropriate box on page 1 of thisform if, on your federal return: (i) you reportedbonus depreciation and/or a first year expensededuction under IRC §179 for "qualified NewYork Liberty Zone property," "qualified NewYork Liberty Zone leasehold improvements,"or "qualified Resurgence Zone property," re-gardless of whether you are required to fileform NYC-399Z, or (ii) you replaced propertyinvoluntarily converted as a result of the at-tacks on the World Trade Center during thefive (5) year extended replacement period.You must attach federal forms 4562, 4684 and4797 to this return. See instructions forSchedule B, lines 6d and 16 for more infor-mation.Special Condition CodesAt the time this form is being published, thereare no special condition codes for tax year2013. Check the Finance website for updatedspecial condition codes. If applicable, enter thetwo character code in the box provided on theform.SCHEDULE ANOTE - ELIGIBLE SMALL FIRMS

For tax years beginning after 2006, taxpayersare exempt from having to determine the al-ternative tax on capital and the alternative taxon the entire net income plus compensation ifthey have: (1) gross income, as defined under§ 61 of the Internal Revenue Code, of less than$250,000, (2) a 100% business allocation per-centage, and (3) no investment capital or in-come or subsidiary capital or income. Seesection 11-604(1)(I) of Administrative Code,as added by L. 2007, ch. 491. Those taxpay-ers are subject to tax on the larger of the taxon entire net income and fixed-dollar mini-mum tax. Therefore, taxpayers meeting thesecriteria may skip lines 2a, 2b, 2c and line 3 ofSchedule A. The amount entered on line 6 ofSchedule A should be the larger of line 1 orline 4. These taxpayers are not required tocomplete Schedule F. Because these taxpayershave a 100% business allocation percentageand are not subject to the tax on capital, thesetaxpayers also will not be required to completeSchedules E or G of this form.In addition, for purposes of computing thetax based on entire net income, eligible cor-porations (other than New York State S cor-porations) can elect to use the sum of NewYork State entire net income, as determinedunder New York State Law § 208, and anydeductions taken for the taxable year in com-puting federal taxable income for GeneralCorporation Tax paid or accrued, rather thanreport the New York City specific modifica-tions normally required to compute NewYork City taxable income. Corporationsmaking that election should enter the NewYork State entire net income on line 1 ofSchedule B, skip lines 2 through 5a ofSchedule B, enter the amount of the GeneralCorporation Tax deducted on the federal re-turn on line 5b of Schedule B, skip lines 6through 18 and enter the sum of line 1 andline 5b on line 19.

Computation of TaxLINES 2a AND 2b - TAX ON ALLOCATED CAPITALFor cooperative housing corporations as de-fined in the Internal Revenue Code, the rateof tax on capital is 4/10 mill (.04%) insteadof 1 1/2 mills (.15%). For all other corpora-tions subject to tax, including housing com-panies organized and operating pursuant toArticle Four of the Private Housing FinanceLaw (other than cooperative housing corpo-rations), the rate of tax on capital is 1 1/2 mills(.15%).Enter the amount from Schedule E, line 14 inthe left-hand column of line 2a or line 2b.Multiply by the applicable percentage andenter the tax in the right-hand column. If thetax amount exceeds $1,000,000, enter$1,000,000. See instructions for Schedule E,

lines 7-11 for information on how to calculatecapital for short tax years.A real estate investment trust (“REIT “) and aregulated investment company (“RIC”), otherthan a captive REIT or captive RIC that mustbe included in a combined report, are not sub-ject to the alternative tax on capital and shouldnot include any amount on line 2a. For moreon the application of the alternative tax on cap-ital to captive REITs and RICs, see the in-structions under the heading “Computation ofTax for Captive REITs and RICs” on page 4of these instructions.

LINE 3 - ALTERNATIVE TAXEvery taxpayer, other than a REIT or RIC, ortaxpayers exempt under section 11-604(1)(I)of the Administrative Code as describedabove, must calculate its alternative tax andenter its computation on line 3. To compute thealternative tax, measured by entire net incomeplus compensation, you may use the work-sheet on page 2 of Form NYC-3L. Profes-sional corporations must calculate thealternative tax.For special treatment of “Eligible SmallFirms,” see instructions above.ADDITIONAL INFORMATION FORCOMPUTING THE ALTERNATIVE TAXALTERNATIVE TAX WORKSHEET a) Line 1- Net Income. Enter the amount on

Schedule B, line 19 or 20. If the amountentered on Schedule B, line 19 is 0 be-cause the amount that would have beenentered on that line would have been as aloss (i.e., the amount on Schedule B, line18 was greater than the amount on Sched-ule B, line 8), enter the amount of thisloss on line 1.

b) Line 2 - Salaries. No portion of officerssalaries and other compensation is in-cluded in the alternative tax base.Notwithstanding the foregoing, includein the alternative tax computation100% of all salaries and compensationof stockholders owning more than 5%of the corporation’s stock, as deductedfor federal tax purposes and reportedon Schedule F, regardless of whethersuch stockholders are also officers. Indetermining whether a stockholder ownsmore than 5% of the issued capital stock,include all classes of voting and nonvot-ing stock, issued and outstanding.

c) Line 3 - Enter on line 3 the sum of line 1and line 2.

d) Line 4 - Enter $40,000. If the return doesnot cover an entire year, the exclusionmust be prorated based on period coveredby the return.

e) Line 6 - The alternative tax measured by


entire net income plus compensation isdetermined by multiplying line 5 by 15percent.

LINE 4 – MINIMUM TAXEnter the amount of New York City Receiptsfrom Schedule H, Column A, line 2g and theMinimum Tax amount from the followingtable. If 100% of your business income isto be allocated to the City, enter the totalamount of your business receipts, whichshould be the same as the amount that youwould have had to enter on line 2g of Sched-ule H if you had been required to completethat line.

TABLE - FIXED DOLLAR MINIMUM TAX

For a corporation with New York Cityreceipts of:Not more than $100,000. . . . . . . . . . . . . $ 25More than $100,000but not over $250,000. . . . . . . . . . . . . . . $ 75More than $250,000but not over $500,000. . . . . . . . . . . . . . $ 175More than $500,000but not over $1,000,000 . . . . . . . . . . . . $ 500More than $1,000,000but not over $5,000,000 . . . . . . . . . . . $1,500More than $5,000,000but not over $25,000,000 . . . . . . . . . . $3,500Over $25,000,000. . . . . . . . . . . . . . . . $5,000

Short Periods - Fixed Dollar Minimum Tax Compute the New York City receipts for shortperiods (tax periods of less than 12 months)by dividing the amount of New York City re-ceipts by the number of months in the shortperiod and multiplying the result by 12. Thefixed dollar minimum tax may be reduced forshort periods:

Period ReductionNot more than 6 months. . . . . . . . . . . . . 50%More than 6 monthsbut not more than 9 months . . . . . . . . . . 25%More than 9 months . . . . . . . . . . . . . . . None

LINE 5 - ALLOCATED SUBSIDIARYCAPITALEnter the amount from Schedule C, line 2, Col-umn G. If that amount is less than zero, enter "0".

LINE 7 - UBT PAID CREDITEnter on line 7 the credit against the GeneralCorporation Tax for Unincorporated BusinessTax paid by partnerships from which you re-ceive a distributive share or guaranteed pay-ment that you include in calculating GeneralCorporation Tax liability on either the entire netincome or income plus compensation base. (At-tach Form NYC-9.7.)

LINE 8a - CREDITS FROMFORM NYC-9.5Enter on this line the following credits againstthe General Corporation Tax:1) Relocation and Employment Assistance

Program (REAP) credit (Attach FormNYC-9.5.)

2) Sales and compensating use taxes (Referto instructions on Form NYC-9.5 and at-tach form.)NOTE: This credit may only be takenfor sales tax paid in the current year forcertain purchases in certain prior periods.

LINE 8b – CREDITS FROMFORM NYC-9.8Enter on this line the credit against the Gen-eral Corporation Tax for the Lower ManhattanRelocation and Employment Assistance Pro-gram. (Attach Form NYC-9.8.)LINE 9a - CREDITS FROMFORM NYC-9.6Real estate tax escalation credit and employ-ment opportunity relocation costs credit andindustrial business zone credit (Refer to in-structions on Form NYC-9.6 and attach form.)

LINE 9b – CREDITS FROMFORM NYC-9.10Enter on this line the NYC biotechnologycredit. (Attach Form NYC-9.10.)LINE 11b - FIRST INSTALLMENTPAYMENTDo not use this line if an application for auto-matic extension, Form NYC-EXT, has beenfiled. The payment of the amount shown atline 11b is required as payment on account ofestimated tax for the 2014 calendar year, if acalendar year taxpayer, or for the taxable yearbeginning in 2014, if a fiscal year taxpayer.LINE 12 - SALES TAX ADDBACKThis line relates to the General CorporationTax credit for sales and compensating usetaxes paid on certain machinery and equip-ment and/or certain services. If the taxpayerreceived a credit or refund of any such salesor compensating use taxes during the yearcovered by this return for which it claimed aGeneral Corporation Tax credit in a prior taxperiod, the amount of such credit or refundmust be added back at line 12. A correspon-ding adjustment is to be made at line 14 onSchedule B. (Refer to instructions to line 14on Schedule B.)

LINE 14 - PREPAYMENTSEnter the sum of all estimated tax paymentsmade for this tax period, the payment madewith the extension request, if any, and both thecarryover credit and the first installment re-ported on the prior tax period’s return. This

figure should be obtained from the Composi-tion of Prepayments Schedule on page 2 ofForm NYC-3L.

LINE 17a - LATE PAYMENT - INTERESTIf the tax is not paid on or before the due date(determined without regard to any extensionof time), interest must be paid on the amountof the underpayment from the due date to thedate paid. For information as to the applicablerate of interest, call 311. If calling from out-side of the five NYC boroughs, please call212-NEW-YORK (212-639-9675) or logon tonyc.gov/finance.

LINE 17b - LATE PAYMENT OR LATEFILING/ADDITIONAL CHARGESa) A late filing penalty is assessed if you

fail to file this form when due, unless thefailure is due to reasonable cause. Forevery month or partial month that thisform is late, add to the tax (less any pay-ments made on or before the due date)5%, up to a total of 25%.

b) If this form is filed more than 60 dayslate, the above late filing penalty cannotbe less than the lesser of (1) $100 or (2)100% of the amount required to beshown on the form (less any paymentsmade by the due date or credits claimedon the return).

c) A late payment penalty is assessed ifyou fail to pay the tax shown on this formby the prescribed filing date, unless thefailure is due to reasonable cause. Forevery month or partial month that yourpayment is late, add to the tax (less anypayments made) 1/2%, up to a total of25%.

d) The total of the additional charges in a)and c) may not exceed 5% for any onemonth except as provided for in b).

If you claim not to be liable for these addi-tional charges, attach a statement to your re-turn explaining the delay in filing, payment orboth.

LINE 17c - PENALTY FOR UNDERPAY-MENT OF ESTIMATED TAXA penalty is imposed for failure to file a declarationof estimated tax or for failure to pay each install-ment payment of estimated tax due. (For completedetails, refer to Form NYC-222, Underpayment ofEstimated Tax by Corporations.) If you underpaidyour estimated tax, use Form NYC-222 to com-pute the penalty. Attach Form NYC-222. If nopenalty is due, enter “0” on line 17c.

LINE 21 - TOTAL REMITTANCE DUEIf the amount on line 15 is greater than zero orthe amount on line 19 is less than zero, enteron line 21 the sum of line 15 and the amount,if any, by which line 18 exceeds the amount online 16. After completing this return, enter the


amount of your remittance on line A. All re-mittances must be payable in U.S. dollarsdrawn on a U.S. bank. Checks drawn on for-eign banks will be rejected and returned. Re-mittances must be made payable to the orderof NYC Department of Finance.LINE 22 - NEW YORK CITY RENTIf the corporation is carrying on businessboth inside and outside New York City, com-plete Schedule G and enter on line 22 ofSchedule A total rent from Schedule G, part1. If the corporation is only carrying onbusiness in New York City, enter the totalrent deducted on the federal return for prem-ises located in the City. Rent includes con-sideration paid for the use or occupancy ofpremises as well as payments made to or onbehalf of a landlord for taxes, charges, in-surance or other expenses normally payableby the landlord other than for the improve-ment, repair or maintenance of the tenant’spremises.

LINE 24The amount entered on line 24 should be thesame amount entered on line 1c of the tax-payer's federal Form 1120 (Gross receipts orsales less returns and allowances).

PREPAYMENTS SCHEDULEEnter the payment date and the amount of allprepayments made for this tax period. For interest calculations and account informa-tion, call 311. If calling from outside of thefive NYC boroughs, please call 212-NEW-YORK (212-639-9675).

You can also visit the Finance website atnyc.gov/finance

SCHEDULE BComputation and Allocation of Entire Net In-comeLINE 1 - FEDERAL TAXABLE INCOMEEnter your federal taxable income (before netoperating loss and special deductions) as re-quired to be reported on your federal tax re-turn.If you file federal Form 1120, use the amountfrom line 28.If you file federal Form 1120-RIC, see Admin.Code section 11-603.8.If you file federal Form 1120-REIT, seeAdmin. Code section 11-603.7.S corporations and qualified subchapter Ssubsidiaries (QSSS) must file returns as or-dinary corporations. Federal S corporationtaxpayers must complete form NYC-ATT-S- CORP, Calculation of FederalTaxable Income for S corporations and in-clude it with their GCT Form 3L, 4S or 4S-EZ.

NOTE: The charitable contribution deduc-tion from federal Form 1120S, Schedule K,line 12a may not exceed 10% of the sum oflines 1 through 12d (other than line 12a) ofSchedule K.

ELIGIBLE SMALL FIRMS: Eligible SmallFirms that elect to use New York State entirenet income as described on Page 7 of the in-structions should enter the New York State en-tire net income on Line 1 of Schedule B, skiplines 2 through 5a of Schedule B, enter theamount of the General Corporation Tax de-ducted on the federal return on line 5b ofSchedule B, skip lines 6 through 18 and enterthe sum of Line 1 and line 5b on line 19.

LINE 2 - NONTAXABLE INTERESTInclude all interest received or accrued whichwas not taxable on your federal income tax re-turn.

LINES 3 AND 4 - SUBSIDIARY CAPITALA subsidiary is a corporation which is con-trolled by the taxpayer by reason of the tax-payer’s ownership of more than 50% of thetotal number of shares of the corporation’s vot-ing capital stock, issued and outstanding. Theterm “subsidiary capital” means all invest-ments in the stock of subsidiary corporations,plus all indebtedness from subsidiary corpora-tions (other than accounts receivable acquiredin the ordinary course of business for servicesrendered or from sales of property held pri-marily for sale to customers), whether or notevidenced by bonds or other written instru-ments, on which interest is not claimed and de-ducted by the subsidiary for purposes oftaxation under Title 11, Chapter 6, Subchap-ters 2 and 3 of the Admin. Code.If you have a subsidiary, complete lines 3 and4, and attach a list of all items included. Youwill also have to complete Schedule C. If youdo not have a subsidiary, enter “0” on lines 3and 4.On line 3, enter total of amounts, includinginterest expense, deducted in computing fed-eral taxable income that are directly attribut-able to subsidiary capital or to income, gainsor losses from subsidiary capital. Includecapital losses from sales or exchanges of sub-sidiary capital, all other losses, bad debts andany carrying charges attributable to subsidiarycapital.On line 4, enter all amounts, including interest,that are indirectly attributable to subsidiary cap-ital or to income, gains or losses from subsidiarycapital. For more information, see also Statement ofAudit Procedure GCT-2008-04, NoninterestExpense Attribution, April 9, 2008, availableon the Department's website (nyc.gov/fi-nance).

LINE 5 - STATE AND LOCALBUSINESS TAXESOn line 5a enter the amount deducted on yourfederal return for business taxes paid or ac-crued to any state, any political subdivision ofa state or to the District of Columbia if theyare on or measured by profits or income or in-clude profits or income as a measure of tax,including taxes expressly in lieu of any of theforegoing taxes. Include the New York StateMetropolitan Transportation Business Tax sur-charge and the MTA Payroll Tax (New YorkState Tax Law, Art. 23). Attach a schedule listing each locality and theamount of all those taxes deducted on your federalreturn.

On line 5b, enter the amount of New York CityGeneral Corporation Tax and Banking Corpo-ration Tax deducted on your federal return.

LINES 6a, 6b, 6c AND 6d -NEW YORK CITY ADJUSTMENTSa) The credit for sales tax paid on electric-

ity or electric service used in the produc-tion of certain tangible property formerlyallowed by Admin. Code §11-604.15 hasbeen repealed for purchases on or afterNovember 1, 2000. No amount should beadded back with respect to this credit. Purchases of machinery or equipment forwhich a credit is allowed by Admin. Code§11-604.12 were exempted from sales taxeffective December 1, 1989. Purchasesof certain services performed on machin-ery or equipment used in production forwhich a credit is allowed by Admin. Code§11-604.17-a were exempted from salestax effective September 1, 1996. Creditsmay be taken under these two provisionsonly if the sales tax payment was made inthe current year with respect to a pur-chase in a period when the applicablesales tax was effective. In such case, thesales tax excluded or deducted for federaltax purposes should be added back. Ifyou are claiming a credit pursuant to §11-604.12, a form NYC-9.5 for the year1990 or a prior year should be used. Ifyou are claiming a credit pursuant to §11-604.17-a, a form NYC-9.5 for the year2000 or a prior year should be used.

b & c) Taxpayers claiming the real estatetax escalation credit and/or the employ-ment opportunity relocation costs creditor the industrial business zone credit mustenter on lines 6(c) and 6(b), respectively,the amounts shown on lines 4 and 5, re-spectively, of Part II of Form NYC-9.6.

d) The federal bonus depreciation allowedfor "qualified property", as defined in theJob Creation and Worker Assistance Act


of 2002 is not allowed for General Corpo-ration Tax purposes except for such de-ductions allowed with respect to"qualified New York liberty zone prop-erty", "qualified New York liberty zoneleasehold improvements" and "qualifiedproperty" placed in service in the Resur-gence Zone (generally the area in the bor-ough of Manhattan south of HoustonStreet and north of Canal Street). ForCity tax purposes, depreciation deductionsfor all other "qualified property" must becalculated as if the property was placed inservice prior to September 11, 2001. Economic Stimulus Act of 2008 andOther Federal Legislation Effecting De-preciation. Section 102 of the EconomicStimulus Act of 2008, Pub.L. No. 110-185, 122 Stat. 613 (Feb. 13, 2008)amended IRC section 168(k). Asamended, section 168(k)(1)(A) provides a50-percent additional first year deprecia-tion deduction for certain new propertyacquired by the taxpayer after December31, 2007, and before January 1, 2009 (inthe case of certain property, before Janu-ary 1, 2010), so long as no written bindingcontract for the acquisition of the propertyexisted prior to January 1, 2008. Section1201 of Title I of Division B of the Amer-ican Recovery and Reinvestment Act of2009, Pub. L. No. 111- 5, 123 Stat 115(February 17, 2009) further amended IRCsection 168(k) by extending the 50 percentadditional first year depreciation deduc-tion to new property acquired before Jan-uary 1, 2010 (in the case of certainproperty, before January 1, 2011). Section2022 of the Small Business Jobs andCredit Act of 2010, Pub. L. No. 111- 240,124 Stat. 2504 (September 27, 2010) fur-ther amended IRC section 168(k) by ex-tending the 50 percent additional first yeardepreciation deduction to new propertyacquired before January 1, 2011 (in thecase of certain property, before January 1,2012.) Section 401 of the Tax Relief, Un-employment Insurance Reauthorization,and Job Creation Act of 2010, Pub. L. No.111-312 , 124 Stat. 3296 (Dec. 17, 2010)(“2010 Tax Relief Act”) extended and ex-panded additional first-year depreciationto equal 100% of the cost of qualifiedproperty placed in service after Sept. 8,2010 and before Jan. 1, 2012 (before Jan.1, 2013 for certain longer-lived and trans-portation property); and 50% of the costof qualified property placed in serviceafter Dec. 31, 2011 and before Jan. 1,2013 (after Dec. 31, 2012 and before Jan.1, 2014 for certain longer-lived and trans-portation property). Section 331 of theAmerican Taxpayer Relief Act of 2012,Pub. L. No. 112-240, 126 Stat. 2313 (Jan-uary 2, 2013) (“2012 Tax Relief Act”) ex-

tended the 50 percent additional first yeardepreciation to qualified property ac-quired after December 31, 2012 and be-fore January 1, 2014 (after December 31,2013 and before January 1, 2015 for cer-tain longer-lived and transportation prop-erty). Consequently, the years in whichthe first year depreciation for passengerautomobiles under §280F(a)(1)(A) is in-creased by $8,000 have also been ex-tended. However, as discussed above theAdministrative Code limits the deprecia-tion for “qualified property” other than“Qualified Resurgence Zone property”and “New York Liberty Zone property” tothe deduction that would have been al-lowed for such property had the propertybeen acquired by the taxpayer on Septem-ber 10, 2001, and therefore, except forQualified Resurgence Zone property, asdefined in the Administrative Code and“New York Liberty Zone property,” theCity has decoupled from the federal bonusdepreciation provision. The Administra-tive Code also requires appropriate ad-justments to the amount of any gain orloss included in entire net income or un-incorporated business entire net incomeupon the disposition of any property forwhich the federal and New York City de-preciation deductions differ. Use FormNYC-399Z for this calculation. For taxyears beginning on or after January 1,2004, other than for eligible farmers (forpurposes of the New York State farmers'school tax credit), the amount allowed asa deduction with respect to a sport utilityvehicle that is not a passenger automobilefor purposes of section 280F(d)(5) of theInternal Revenue Code is limited to theamount allowed under section 280F of theInternal Revenue Code as if the vehiclewere a passenger automobile as defined inthat section. For SUVs that are qualifiedproperty other than qualified ResurgenceZone property and other than New YorkLiberty Zone property, the amount al-lowed as a deduction is calculated as ofthe date the SUV was actually placed inservice and not as of September 10, 2001.Note that for the 2013 tax year for Gen-eral Corporation Tax purposes:l An SUV cannot qualify as either New

York Resurgence Zone Property or asNew York Liberty Zone property. SeeAdministrative Code section 11-602(8)(o).

l An SUV cannot qualify for the addi-tional first year depreciation availableunder the Economic Stimulus Act of2008, the American Recovery andReinvestment Act of 2009, the SmallBusiness Jobs and Credit Act of 2010and the 2010 and 2012 Tax ReliefActs.

On the disposition of an SUV subject to thelimitation, the amount of any gain or loss in-cluded in income must be adjusted to reflectthe limited deductions allowed for City pur-poses under this provision. Enter on Sched-ule B, lines 6(d) and 16 the appropriateadjustments from form NYC-399Z. See Fi-nance Memorandum 13-1, “Application ofIRC §280F Limits to Sports Utility Vehicles.”The federal depreciation deduction com-puted under the Accelerated Cost Recov-ery System or Modified Accelerated CostRecovery System (IRC Section 168) is notallowed for the following types of property: l property placed in service in New

York State in taxable years beginningbefore January 1, 1985 (except re-covery property subject to the provi-sions of Internal Revenue CodeSection 280-F)

l property of a taxpayer principally en-gaged in the conduct of an aviation,steamboat, ferry, or navigation busi-ness, or two or more such businesseswhich is placed in service in taxableyears beginning after December 31,1988, and before January 1, 1994

In place of the federal depreciation de-duction, a depreciation deduction usingpre-ACRS or MACRS rules (IRC Sec-tion 167) is allowed. Enter on line 6d theACRS adjustment from Form NYC-399,Schedule C, line 8, Column A. Enter online 16 the ACRS adjustment from FormNYC-399, Schedule C, line 8, Column B.ACRS and MACRS may be available forproperty placed in service outside NewYork in years beginning after 1984 andbefore 1994. See Finance Memorandum99-4 “Depreciation for Property Placed inService Outside New York After 1984and Before 1994.”

LINE 7a - PAYMENT FOR USEOF INTANGIBLESAdd back payments for the use of intangiblesmade to related members as required by Ad.Code section 11-602.8(n). See Royalty Pay-ments to Related Members, p. 2, above.LINE 7b - DOMESTIC PRODUCTIONACTIVITIES DEDUCTIONAdd back any amounts deducted under section199 of the Internal Revenue Code (DomesticProduction Activities Deduction). Please at-tach federal Form 8903.

LINE 7c - OTHER ADDITIONS a) Effective for taxable years beginning on

or after January 1, 1982, the New YorkCity Admin. Code was amended to nul-lify the effects of federal “safe harbor


leases” upon New York City taxable in-come (Section 11-602.8(a)(8) and (9) ofthe Admin. Code). This applies to agree-ments entered into prior to January 1,1984.Any amount included in the computationof federal taxable income solely as a re-sult of an election made under IRC Sec-tion 168(f)(8) must be removed whencomputing New York City taxable in-come. Any amount excluded in the com-putation of federal taxable income solelyas a result of an election made under IRCSection 168(f)(8) must be included whencomputing New York City taxable in-come.Exempt from these adjustments are leasesfor qualified mass commuting vehiclesand property of a taxpayer, subject to theGeneral Corporation Tax, principally en-gaged in the conduct of an aviation,steamboat, ferry or navigation business,or two or more such businesses, which isplaced in service before taxable years be-ginning in 1989.Enter the appropriate additions and deduc-tions on lines 7 and 17, respectively, andattach a rider to show the “safe harbor” ad-justments to New York City taxable in-come.

b) Foreign taxes paid or accrued that are de-ducted from gross income to determinefederal taxable income must be added toentire net income. A foreign tax creditmay not be used as a deduction whencomputing NYC entire net income.

c) Any “windfall profit” tax deducted in com-puting federal income must be added backwhen computing NYC entire net income.

d) If the taxpayer deducted on its federal re-turn interest paid to a corporate stock-holder owning more than 50% of its issuedand outstanding stock, that corporateshareholder may not exclude that interestfrom its NYC entire net income as incomefrom subsidiary capital. (See instructionsfor lines 3, 4 and 9.) To enable a more than50% corporate shareholder to treat anysuch interest as excludible income fromsubsidiary capital, such interest should beadded back on line 7 of this return in com-puting NYC entire net income.

e) In the case of a taxpayer organized outsidethe United States, all income from sourcesoutside the United States, less all allowabledeductions attributable thereto, that wasnot taken into account in computing fed-eral taxable income must be added back incomputing NYC entire net income.

LINES 9A, 9B AND 9C - INCOME FROM

SUBSIDIARY CAPITALEnter on line 9a dividends from subsidiarycapital that was included as part of federal tax-able income. Complete Schedule C.Enter on line 9b interest from subsidiary cap-ital that was included in federal taxable in-come. Enter on line 9c capital gains and other incomeand gain from subsidiary capital that was in-cluded as part of federal taxable income.Complete Schedule C.Do not enter on line 9b interest for which thepayor subsidiary claimed a deduction. (See in-structions for Schedule B, lines 3 and 4, abovefor the definition of subsidiary capital.)

LINE 10 - NONSUBSIDIARY DIVIDENDSEnter 50% of dividends received from non-subsidiary corporations. Do not include thefollowing: (1) “gross-up” dividends pursuantto IRS Section 78, and (2) dividends fromstocks not meeting the holding period require-ment set forth in IRC Section 246(c). Regu-lated investment companies and real estateinvestment trusts do not qualify for this de-duction.LINE 11 - NET OPERATING LOSSEnter New York City net operating loss carry-forward from prior years. The following rulesapply to net operating losses.

1) A deduction may only be claimed for net op-erating losses sustained in taxable years dur-ing all or part of which the corporation wassubject to the General Corporation Tax.New York City allows net operating lossesto be used in the same manner as providedby IRC Section 172. However, the amountof any federal loss must be adjusted in ac-cordance with Section 11-602.8(f) of theAdmin. Code. Regulated investment com-panies and real estate investment trusts donot qualify for this deduction.

2) The deduction of a net operating loss car-ryforward from prior years may not ex-ceed, and is limited to, the amount of thecurrent year’s federal taxable income. Anet operating loss may not be claimed as adeduction if Schedule B, line 1 reflects aloss.

3) The deduction shall not exceed the deduc-tion that would have been allowed if thetaxpayer had not made an election to be anS corporation under the rules of the Inter-nal Revenue Code or had not elected to beincluded in a group reporting on a consol-idated basis for federal income tax pur-poses.

4) The New York City net operating loss de-duction taken for City purposes for each

year may not exceed the deduction allow-able for that year for federal income tax pur-poses calculated as if the taxpayer hadelected to relinquish the carryback periodexcept with respect to the first $10,000 ofeach year’s loss. The carryback period forGeneral Corporation Tax purposes corre-sponds to the federal carryback period. Ifthe taxpayer elects to use a 2-year carrybackperiod for federal purposes, the same carry-back period applies for City purposes. If thetaxpayer elects to relinquish the entire car-ryback period for federal purposes, then thetaxpayer may not carry back any amount forCity purposes.

5) Losses which are not permitted to be carriedback may generally be carried forward andused to offset income for the period permit-ted for federal tax purposes, generally, 20years subsequent to the loss year for lossesincurred in taxable years beginning after Au-gust 5, 1997.

6) Corporations principally engaged in theconduct of an aviation, steamboat, ferry ornavigation business or two or more of suchbusinesses are permitted to claim a net op-erating loss deduction in the same manneras other corporations.These corporations are allowed to carry for-ward any net operating losses or a propor-tionate part of a net operating loss sustainedduring the federal taxable period(s) coveringthe years 1985 through 1988, provided thecorporation was taxable under Title 11,Chapter 6, Subchapter 4 of the Admin. Code(Transportation Corporation Tax) for the cal-endar years 1985 through and including1988. The net operating loss must be com-puted as if:a) the corporation had been subject to

taxation under Subchapter 2 (GeneralCorporation Tax) during the period(s)the loss was sustained,

b) the loss was sustained in 1988, andc) the taxpayer had elected to relinquish

the entire carryback period under IRCSection 172.

For special rules relating to acquisitions,mergers or consolidations involving cor-porations principally engaged in the con-duct of aviation, steamboat, ferry ornavigation business, refer to Section 77b ofChapter 241 of the Laws of 1989.

7) Corporations reporting both business andinvestment income must complete line 22of this schedule to apportion any net oper-ating loss between business income and in-vestment income.

Attach a copy of Form NYC-NOLD-GCT,Net Operating Loss Computation.


CARRYBACK LOSSESIf the amount on line 18 is greater than theamount on line 8 so that the entry on line 19would be a loss, a request to carry it back asa net operating loss deduction in any prioryear must be made separately on an amendedreturn. Do not attach or mail an amended re-turn with this tax return. This request mustbe submitted within three years of the duedate of the return for the loss year or withinthe period prescribed in Section 11-678 of theAdmin. Code. Corporations that have electedto relinquish the carryback period for a netoperating loss incurred in taxable years be-ginning after August 5, 1997, must submit acopy of the federal election.Because an S corporation does not carry overNOLs, it will not have made a federal electionto relinquish any or all of its carryback period.Therefore, for City tax purposes for losses aris-ing in taxable years ending in or after 2002, itwill be presumed that, unless the taxpayer Scorporation attached a statement to this returnindicating that the taxpayer intends to carryback the loss, the taxpayer is presumed to haveelected to relinquish the entire carryback pe-riod. For S corporations filing on a combinedbasis only with other S corporations or quali-fied Subchapter S subsidiaries, any statementattached either to a pro forma NYC-3L or tothe NYC-3A will be deemed applicable to theentire group. Any excess net operating lossmay be carried forward as if the taxpayer hadelected to relinquish the entire carryback pe-riod for all but the first $10,000 of the loss.

LINE 12 - PROPERTY ACQUIREDPRIOR TO 1966A deduction is allowed with respect to gainfrom the sale or other disposition of any prop-erty acquired prior to January 1, 1966 (exceptstock in trade, inventory, property held prima-rily for sale to customers in the ordinary courseof trade or business, or accounts or notes re-ceivable acquired in the ordinary course oftrade or business). The amount of the deduc-tion with respect to each such property is equalto the difference between:a) the amount of the taxpayer’s federal tax-

able income; andb) the amount of the taxpayer’s federal tax-

able income (if smaller than the amountdescribed in (a)), computed as if the fed-eral adjusted basis of each such property(on the sale or other disposition of whichgain was realized) on the date of the sale orother disposition had been equal to either:1) its fair market value on January 1,

1966, or the date of its sale or otherdisposition prior to January 1, 1966,plus or minus all adjustments to

basis made with respect to suchproperty for federal income tax pur-poses for periods on or after January1, 1966; or

2) the amount realized from its sale orother disposition, whichever islower.

In no event, however, shall the total amountcomputed above exceed the taxpayer’s netgain for the year from the sale or other dispo-sition of property (other than stock in trade, in-ventory, property held primarily for sale tocustomers in the ordinary course of trade orbusiness, or accounts or notes receivable ac-quired in the ordinary course of trade or busi-ness).Attach a rider showing computation and acopy of federal Form 1120 or 1120-S, Sched-ule D.

LINE 13 - CITY AND STATE REFUNDSEnter at line 13 refunds or credits of the NewYork City General Corporation Tax, New YorkState Franchise Tax or New York City or StateBanking Corporation Tax for which no tax ex-clusion or deduction was allowed in determin-ing the taxpayer’s taxable (entire) net incomein a prior year.

LINE 14 - SALES TAX REFUNDSAND CREDITSThis line relates to credits or refunds of sales andcompensating use tax paid on certain machineryand equipment and/or certain services included infederal taxable income for which a credit wasclaimed in a prior year. The amount entered hereshould be the same as the amount entered at line12 of Schedule A. (Refer to instructions forSchedule A, line 12.)There is no addback for current refunds ofsales tax paid on purchases of electricity orelectric service used in the production of cer-tain tangible property for which the taxpayertook a credit in a prior period under Admin.Code §11-604.15.

LINE 15 - FEDERAL JOBS CREDITEnter the portion of wages and salaries paid orincurred for the taxable year for which a de-duction is not allowed pursuant to the provi-sions of Section 280C of the Internal RevenueCode because the federal targeted jobs taxcredit was taken. Attach federal Form 5884.

LINE 16 - DEPRECIATION ADJUSTMENTEnter on line 16 the adjustments from FormNYC-399 and/or Form NYC-399Z, ScheduleC, line 8, Column B. See instructions forSchedule B, line 6(d).

LINE 17 - OTHER DEDUCTIONSa) Refer to instructions to Schedule B, line 7

for adjustments relating to safe harborleases.

b) Taxpayers entitled to a special deductionfor construction, reconstruction, erectionor improvement of air pollution controlfacilities initiated on or after January 1,1966, and having a situs in NYC in ac-cordance with Section 11-602.8(g) shouldsubmit a rider showing the completecomputation.Enclose certification of compliance is-sued pursuant to Section 17-0707 or Sec-tion 19-0309 of the EnvironmentalConservation Law. Entire net income forthe current year and all succeeding yearsmust be computed without any deductionfor such expenditures or for depreciationof such property.

c) Deduct foreign dividend gross-up pur-suant to Section 78 of the IRC (see fed-eral Form 1120, Schedule C, line 15) tothe extent not deducted at line 9a. Entirenet income does not include any amounttreated as dividends pursuant to Section78 of the IRC.

d) Regulated investment companies mustdeduct dividends paid to stockholders onthis line.

LINE 19 – ENTIRE NET INCOMEIf line 18 is greater than line 8 so that theamount on this line would be a loss, enter zero(“0”) on this line, skip lines 22 through 26, andenter zero (“0”) on line 27 of this Schedule Band on line 1 of Schedule A. That loss may beavailable as a carryover. See instructions toSchedule B, line 11 for more information.

LINE 20 - SPECIAL ADJUSTMENTSIf, as a result of the adjustments on this line, en-tire net income is a loss, enter zero (“0”) on thisline, skip lines 22 through 26, and enter zero online 27 of this Schedule B and line 1 of ScheduleA.a) A corporation organized outside the

United States must enter at line 20 its en-tire net income wherever earned, includ-ing all income from sources outside theUnited States, less all allowable deduc-tions attributable thereto, not taken intoaccount in computing federal taxable in-come. Attach a schedule. See “FOR-EIGN AIRLINES” under GENERALINFORMATION, above.

b) If you are, either separately or as a mem-ber of a partnership, doing insurancebusiness as a member of the New YorkInsurance Exchange described in Section6201 of the Insurance Law, make the ad-justment required under Section 11-602.8(a)(6) and Section 11-602.8(b)(8) ofthe Admin. Code.


c) For tax years beginning on or after Au-gust 1, 2002, corporations that are part-ners in partnerships that receive at leasteighty percent of their gross receipts fromproviding mobile telecommunicationsservices must exclude their distributiveshare of income, gains, losses and deduc-tions from any such partnership, includ-ing their share of separately reporteditems, from their federal taxable incomereported on line 1.

LINE 21 - INVESTMENT INCOMEInvestment income includes: 50% of dividends fromnon-subsidiary stocks held for investment, interestfrom investment capital, net capital gain or loss fromsales or exchanges of nonsubsidiary securities heldfor investment, and income from cash if an electionis made to treat cash as investment capital on line 3of Schedule D. Do not include any “gross-up” div-idends pursuant to Section 78 of the IRC that havebeen deducted in computing entire net income.Investment income includes interest received on aloan to a subsidiary if the subsidiary claims such in-terest as an NYC General or Banking CorporationTax deduction on any return for any period, and ifsuch loan is evidenced by a bond or other corporatesecurity. Do not include any capital loss which wasnot used in computing federal taxable income.In computing investment income, subtract theamount of deductions allowable in computing entirenet income which are directly or indirectly attribut-able to investment capital or investment income.LINE 21a - DIVIDENDS Enter dividends not excluded on line 10 exceptfor “gross-up” dividends pursuant to Section 78of the IRC. This includes 50% of dividends fromnonsubsidiary corporations for which an exclu-sion was allowed on line 10 of this schedule and100% of dividends from stock not meeting theholding period requirement set forth in Section246(c) of the IRC.

LINE 21d - INCOME FROM CASHEnter income from cash on Schedule B, line21d, only if you have elected to treat cash asinvestment capital and have entered theamount thereof on Schedule D, line 3.LINE 21f - DEDUCTIONS ATTRIBUTA-BLE TO INVESTMENT INCOMEFor more information, see Statement of AuditProcedure GCT-2008-04, Noninterest ExpenseAttribution, April 9, 2008, and Statement ofAudit Procedure PP-2008-12, GCT & UBTTreatment of Repurchase Agreements and Se-curities Lending and Borrowing Transactionsfor Financial Services Firms Regularly En-gaged in Such Activities, March 31, 2008,available on the Department’s website atnyc.gov/finance. Attach a list of the deduc-tions directly attributable to investment in-come and the deductions indirectlyattributable to investment income.

LINE 22 - APPORTIONED NEWYORK CITY NET OPERATINGLOSS DEDUCTIONCorporations that report both business and in-vestment income must apportion any net operat-ing loss deduction on line 11 between businessincome and investment income. This is com-puted by multiplying the net operating loss de-duction by a ratio. The ratio is a fraction, thenumerator of which consists of investment in-come before deducting any net operating loss andthe denominator of which is entire net income be-fore deducting any net operating loss. The ratiomay be expressed as a percentage. Multiply thenet operating loss deduction by the result. Enterthis amount on line 22. Attach a rider detailingthe calculation of the apportionment of the tax-payer’s New York City NOL deduction betweenbusiness income and investment income.LINE 23b – INVESTMENT INCOMETO BE ALLOCATEDEnter the amount from line 23a. If the amount online 23a is greater than the amount on line 19 or 20,enter the amount from line 19 or 20. If the entry online 23a is a loss, enter zero (“0”) on line 23b.LINE 25 - ALLOCATEDINVESTMENT INCOMEIf the investment allocation percentage is zero,interest on bank accounts must be multipliedby the business allocation percentage.SCHEDULE CSubsidiary Capital and Allocation- and -SCHEDULE DInvestment Capital and AllocationComplete Schedule C if you have any sub-sidiaries. (Refer to the instructions for Sched-ule B, lines 3 and 4 for the definition of asubsidiary and subsidiary capital.)Complete Schedule D if you have investmentcapital. Investment capital is the average valueof your investments in stocks, bonds, and othercorporate or government securities, less liabili-ties, both long term and short term, directly orindirectly attributable to investment capital. In-vestment capital does not include those stocks,bonds or other securities that are held for sale tocustomers in the regular course of business orthat constitute subsidiary capital. Investmentcapital does not include interests in, or obliga-tions of, partnerships or other unincorporatedentities. (Refer to Title 19 Rules of the City ofNew York Section 11-37 for the definition of in-vestment capital.)

To determine the value of your assets for busi-ness, investment and subsidiary capital pur-poses, you must include real property andmarketable securities at fair market value.The fair market value of any asset is the price(without any encumbrance, whether or not the

taxpayer is liable) at which a willing seller, notcompelled to sell, will sell and a willing pur-chaser, not compelled to buy, will buy. Thefair market value, on any date, of stocks,bonds and other securities regularly dealt in onan exchange, or in the over-the-counter mar-ket, is the mean between the highest and low-est selling prices on that date.The value of all other property must be in-cluded at the value shown on the taxpayer’sbooks and records in accordance with gener-ally accepted accounting principles (GAAP).(Refer to the instructions for Schedule E, lines1 through 5 for more information on comput-ing average value.)In completing Schedules C and D, you mayuse the worksheet which appears below to de-termine the amount of liabilities indirectly at-tributable to a particular asset.In column D of Schedules C and D on the line forthe asset in question, include the sum of the amountfrom line 15 of this worksheet and the amount ofliabilities directly attributable to that asset.

WORKSHEETTotal liabilities from Sch. E, line 6, Col. C 1. __________

Liabilities directly attributable to:Subsidiary capital ....................... 2. __________

Investment capital ...................... 3. __________

Business capital .......................... 4. __________

Add: lines 2, 3, and 4 ............................... 5. __________

Subtract: line 5 from line 1 ....................... 6. __________

Enter amount from either:Sch. C, line 1, col. C less amount from line 2 of worksheet 7a.__________

ORSch. D, line 1, col. C lessamount from line 3 of worksheet 7b.__________

Enter amount from Sch. E, line 5, col. Cless amount from line 5 of worksheet ...... 8. __________

Divide: line 7a or 7b by line 8 .................. 9. ________%

Multiply: line 6 by line 9 .......................... 10.__________

Average value of a particular asset ........... 11.__________

Enter amount from either:Sch. C, line 1, col. C ................... 12a._________

ORSch. D, line 1, col. C ................... 12b._________

Divide: line 11 by line 12a or 12b ............ 13.________%

Enter amount from line 10 ....................... 14.__________

Multiply: line 14 by line 13 ...................... 15.__________

To determine the portion of subsidiary or in-vestment capital to be allocated within theCity, multiply the amount of subsidiary or in-vestment capital during the period covered bythe return (column E) by the issuer’s alloca-tion percentage (as defined in the instructionsfor Schedule E, line 15).This percentage may be obtained (1) from tax


service publications, (2) from the Depart-ment’s website under “Forms & Publications”at nyc.gov/finance, or (3) by calling 311. Ifcalling from outside of the five NYC bor-oughs, please call 212-NEW-YORK (212-639-9675). If the subsidiary or other issuerwas not doing business in New York City dur-ing the preceding year, the percentage is zero.The investment allocation percentage shouldbe rounded to the nearest one hundredth of apercentage point.

SCHEDULE D, LINE 3 - CASHIf you have both business and investment cap-ital, you may elect to treat cash on hand or ondeposit as either business or investment capi-tal. If you wish to elect to treat cash as in-vestment capital, you must include it on thisline. Otherwise, you will be deemed to haveelected to treat cash as business capital. Youmay not elect to treat part of such cash as busi-ness capital and part as investment capital.You may not revoke your election after it hasbeen made.

SCHEDULE EComputation and Allocation of Capital“Eligible Small Firms” as described in thenote at the beginning of the instructions toSchedule A do not need to complete thisschedule.

LINES 1 THROUGH 5 - AVERAGE VALUE OF TOTAL ASSETSTo determine the value of your assets for busi-ness, investment and subsidiary capital pur-poses, you must include real property andmarketable securities at fair market value.The value of all other property must be in-cluded at the value shown on the taxpayer'sbooks and records in accordance with gener-ally accepted accounting principles (GAAP).On Schedule E, line 1, enter the value of totalassets at the beginning of the year in columnA and at the end of the year in column B.Enter the average value in column C. Attach aschedule showing the computation of the av-erage value.On line 2, enter the value of real property andmarketable securities included in line 1.Enter on line 4 the fair market value of realproperty and marketable securities.Average value is generally computed on aquarterly basis. A more frequent basis(monthly, weekly or daily) may be used.Where the taxpayer’s usual accounting prac-tice does not permit computation of averagevalue on a quarterly or more frequent basis, asemiannual or annual basis may be used if nodistortion of average value results.

With respect to real property owned by the

taxpayer and located within New York City,the fair market value is presumed to be notless than the estimated market value of theproperty on the Final Assessment Roll ofthe City for the period covered by the re-turn or the most recent sales price,whichever is greater.

LINE 6 - TOTAL LIABILITIESThe liabilities deductible in computing eachtype of capital are those liabilities (both longand short term) that are directly or indirectlyattributable to each type of capital. Use thesame method of averaging as is used in deter-mining average value of assets.

LINES 7 THROUGH 11If the period covered by this report is otherthan a period of twelve calendar months, firstfollow the instructions on Schedule E to cal-culate preliminary amounts for lines 7 through11. Before entering these amounts on Sched-ule E, multiply each amount by a fraction, thenumerator of which is the number of monthsor major parts thereof included in such periodand the denominator of which is twelve.Enter on line 8 the amount from Schedule C,Column E, line 1. Subtract the amount online 8 from the amount on line 7 and enterthe difference on line 9 of this Schedule E. Ifthe amount on line 8 is less than zero be-cause liabilities attributable to subsidiarycapital exceed the value of the assets re-ported in Schedule C, add the absoluteamount of the amount on line 8 to theamount on line 7 and enter the total on line 9.For example, if the amount on Schedule E,line 8 is ($100) and the amount on ScheduleE, line 7 is $200, the amount on Schedule E,line 9 should be $300.If the amount on Schedule D, line 4 is less thanzero, enter zero (“0”) on line 10 of this Sched-ule E, enter the amount from line 9 on line 11,and enter zero (“0”) on line 12.

LINE 15 - ISSUER’SALLOCATION PERCENTAGEThe percentage is determined by adding to-gether allocated New York City business, in-vestment and subsidiary capital, dividing thesum by total capital, and rounding to the near-est one hundredth of a percentage point.

The issuer's allocation percentage cannotbe less than zero. Do not calculate yourissuer's allocation percentage by addingthe business, investment and subsidiarycapital allocation percentages and divid-ing that total by the number of percent-ages.

The issuer’s allocation percentage representsthe amount of capital employed within NewYork City as compared to total capital em-

ployed everywhere. Every taxpayer usingForm NYC-3L is required to compute its is-suer’s allocation percentage.SCHEDULE GFor special treatment of “Eligible SmallFirms,” see instructions on Page 7.

SCHEDULE HBusiness Allocation

NOTE: Zip codes beginning with the follow-ing three-digits are within the five boroughs ofNew York City:Manhattan - 100, 101, 102Bronx - 104Brooklyn - 112Queens - 111, 113, 114, 116Staten Island - 103

In addition, the five-digit zip codes 11004, 11005and some addresses with a zip code of 11001,11040 and 11096 are in the borough of Queens.If the zip code is 11001, 11040 or 11096, consultthe address translator located on the City’s websitehttp://gis.nyc.gov/dcp/at/f1.jsp to determine ifthe corporation's address is within New York City.A corporation is entitled to allocate part of itsbusiness income and capital outside New YorkCity if it carries on business both inside and out-side New York City and, for taxable years be-ginning before July 1, 1996, only if it has a“regular place of business” outside the City.Otherwise, 100% of its business income andcapital must be allocated to New York City. Ifyou did not carry on business both inside andoutside New York City, you must enter 100%at Schedule H, line 5. If you carried on businessboth inside and outside New York City, youmust complete Schedule G, parts I and II andSchedule H, business allocation percentage.The business allocation percentage is generallycomputed by means of a three-factor formula:l real and tangible personal property (in-

cluding rented property)l business receiptsl payroll

WEIGHTED FACTOR ALLOCATION For taxable years beginning in 2013, taxpayersmust weight the three factors as follows:16.5% for property; 16.5% for wages; and67% for receipts. Those corporations usingweighted factors must complete Schedule H.The following example illustrates the calcula-tion of the business allocation percentageusing weighted factors:

Example Assume the percentages on lines 1g, 2h and 3bare as follows:


1g. 25.0001%2h. 65.2207%3b. 35.6103%

The amounts on lines 1h, 2i, 3c, 4a and 4bshould be calculated as follows:

1h. 25.0001 X 16.5 = 412.50172i. 65.2207 X 67 = 4369.78693c. 35.6103 X 16.5 = 587.57004a. Sum of above = 5369.85864b. divide line 4a by 100Express as a percentage: 53.70%

ALTERNATIVE ALLOCATIONMETHOD You cannot use an allocation method other thanthe formula basis set out in Schedule H withoutthe consent of the Department of Finance. Inorder to request consent to use a different methodof allocation, a written request, separate and apartfrom filing this return, must be submitted. Fordetails on how to make such a request, go towww.nyc.gov/finance. If the consent to use adifferent allocation method has not been ob-tained at the time of the filing of the return, youmust use the formula basis set out in Schedule Hand pay the tax in accordance therewith. If theDepartment consents to your proposed alterna-tive allocation method and it results in a lowertax liability than the formula basis set out inSchedule H, you may be entitled to claim a re-fund of the excess amount you have paid.LINES 1 AND 2Property FactorWhen computing the property percentage,value real and tangible personal propertyowned by the corporation at the adjusted basisused for federal income tax purposes. How-ever, you may make a one-time revocable elec-tion to value real and tangible personalproperty owned at fair market value. You mustmake this election on or before the due date (orextended due date) for filing the taxpayer’s firstGeneral Corporation Tax Return. This electionwill not apply to any taxable year with respectto which the corporation is included in a com-bined report unless each of the corporations in-cluded on the combined report has made theelection which remains in effect for such year.

LINE 1b - REAL ESTATE RENTEDThe value of real property rented to the tax-payer is eight times the gross rent payable dur-ing the year covered by this return. Gross rentincludes any amount payable as rent or in lieuof rent, such as taxes, repairs, etc., and, if thereare leasehold improvements made by or on be-half of the taxpayer, the amount of annualamortization of such cost. Do not include therental of personal property on this line.

LINE 1d - TANGIBLE PERSONALPROPERTY OWNEDEnter the average value of the tangible per-

sonal property owned. The term “tangible per-sonal property” means corporeal personalproperty, such as machinery, tools, imple-ments, goods and wares. Do not include cash,shares of stock, bonds, notes, credits, evi-dences of an interest in property, or evidencesof debt.LINE 1e - TANGIBLE PERSONALPROPERTY RENTEDEnter the average value of the tangible per-sonal property you rented. The value of rentedtangible personal property is eight times thegross rent payable during the year covered bythis return.

Receipts FactorLINES 2a AND 2b - SALES OFTANGIBLE PERSONAL PROPERTYEnter on line 2a, column A, receipts in the reg-ular course of business from the sale of tangi-ble personal property where shipments aremade to points within New York City. Enteron line 2b, column B, receipts from all salesof tangible personal property.LINE 2c - SERVICES PERFORMEDReceipts from services performed within NewYork City are allocable to New York City. Allamounts received by the taxpayer in paymentfor such services are allocable to New YorkCity regardless of whether the services wereperformed by employees or agents of the tax-payer, by subcontractors, or by any other per-sons. It is immaterial where such amountswere payable or where they actually were re-ceived.Commissions received by the taxpayer are al-located to New York City if the services forwhich the commissions were paid were per-formed in New York City. If the taxpayer’sservices for which commissions were paidwere performed for the taxpayer by salesmenattached to or working out of a New York Cityoffice of the taxpayer, the taxpayer’s serviceswill be deemed to have been performed inNew York City.Corporations engaged in publishing newspa-pers or periodicals must allocate receipts fromadvertising in such publications based on thecirculation of the publication in the City com-pared to the total circulation. Corporations en-gaged in radio or television broadcasting,whether by cable or other means, must allo-cate receipts from broadcasting programs orcommercial messages based upon the locationof the audience for the broadcasts in the Citycompared to the total audience. For taxableyears beginning on or after January 1, 2002,corporations engaged in publishing newspa-pers or periodicals or in radio or televisionbroadcasting must allocate receipts from sub-scriptions to such newspapers, periodicals andbroadcast programs based on the location of

the subscriber.Taxpayers principally engaged in the activityof air freight forwarding acting as principaland like indirect air carriers are required to de-termine receipts for purposes of the receiptsfactor arising from the activity from servicesperformed within New York City as follows:100% of the receipts if both the pick up anddelivery associated with the receipts are madein New York City and 50% of the receipts ifeither the pickup or delivery associated withthe receipts is made in the City but not both.Receipts from management, administration ordistribution services provided to a regulatedinvestment company (RIC) must be allocatedbased upon the percentage of the RIC’s share-holders domiciled in New York City. (Attachrider showing computation.)

SOURCING OF RECEIPTS OF REGIS-TERED SECURITIES OR COMMODI-TIES BROKERS OR DEALERSFor taxable years beginning after 2008, newrules are applicable in determining the sourcingof the receipts of taxpayers which are regis-tered securities or commodities brokers ordealers. The rules below apply for determiningwhether a receipt is deemed to arise from serv-ices performed in New York City by a regis-tered securities or commodities broker ordealer, for purposes of computing the receiptsfactor of the BAP. See Ad. Code §11-604(3)(a)(10) as added by section 34 of Chap-ter 201 of the Laws of 2009. A registered securities or commodities broker ordealer is a broker or dealer who is registered bythe Securities and Exchange Commission (SEC)or the Commodities Futures Trading Commissionand includes over-the-counter (OTC) derivativesdealers as defined under regulations of the SEC(17 CFR 240.3b-12). The terms securities andcommodities have the same meanings as themeanings in IRC sections 475(c)(2) and 475(e)(2). l Brokerage commissions - Brokerage com-missions earned from the execution of se-curities or commodities purchase or salesorders for the accounts of customers aredeemed to arise from a service performed inNew York City if the customer who is re-sponsible for paying the commissions is lo-cated in New York City. See Ad. Code §11-604(3)(a)(10)(A)(i) as added by section34 of Chapter 201 of the Laws of 2009.

l Margin interest - Margin interest earned onbrokerage accounts is deemed to arise froma service performed in New York City if thecustomer who is responsible for paying themargin interest is located in New York City.See Ad. Code § 11-604(3)(a)(10)(A)(ii) asadded by section 34 of Chapter 201 of theLaws of 2009.


l Account maintenance fees - Account main-tenance fees are deemed to arise from a serv-ice performed in New York City if thecustomer who is responsible for paying the ac-count maintenance fees is located in New YorkCity. See Ad. Code § 11-604(3)(a)(10)(A)(vi)as added by section 34 of Chapter 201 of theLaws of 2009.

l Income from principal transactions - Grossincome from principal transactions (that is,transactions in which the registered broker ordealer is acting as principal for its own ac-count, rather than as an agent for the cus-tomer) is deemed to arise from a serviceperformed in New York City if the productioncredits for these transactions are awarded to aNew York City branch, office, or employeeof the taxpayer. Registered broker dealers may elect tosource the gross income from principaltransactions based on the location of thecustomer to the principal transaction. If theelection is made, gross income from princi-pal transactions is deemed to arise from aservice performed in New York City to theextent that the gross proceeds from thetransactions are generated from sales of se-curities or commodities to customers withinthe city based upon the mailing addresses ofthose customers in the records of the tax-payer. See Ad. Code § 11-604(3)(a)(10)(A)(iii) as added by section 34of Chapter 201 of the Laws of 2009.

l Fees from advisory services for the un-derwriting of securities - Fees earned fromadvisory services for a customer in connec-tion with the underwriting of securities(where the customer is the entity contem-plating the issuance of the securities or is is-suing securities) or for the management ofan underwriting of securities are deemed toarise from a service performed in New YorkCity if the customer responsible for payingthe fee is located in New York City. See Ad.Code § 11-604(3)(a)(10)(A)(iv)(I) as addedby section 34 of Chapter 201 of the Laws of2009.

l Receipts from the primary spread for theunderwriting of securities - Receipts fromthe primary spread or selling concessionfrom underwritten securities are deemed toarise from a service performed in New YorkCity if production credits are awarded to abranch, office, or employee of the taxpayerin New York City as a result of the sale ofunderwritten securities. See Ad. Code § 11-604(3)(a)(10)(A)(iv)(II) as added by section34 of Chapter 201 of the Laws of 2009.

l Interest earned on loans to affiliates - In-terest earned on loans and advances madeby a taxpayer to an affiliate with whom they

are not required or permitted to file a com-bined return are deemed to arise from aservice performed in New York City if theprincipal place of business of the affiliatewho is responsible for the payment of inter-est is located in New York City. See Ad.Code § 11-604(3)(a)(10)(A)(v) as added bysection 34 of Chapter 201 of the Laws of2009.

l Fees for management or advisory services- Fees earned from management or advisoryservices, including fees from advisory serv-ices for activities relating to mergers or ac-quisition activities, are deemed to arise froma service performed in New York City if thecustomer responsible for paying these feesis located in New York City. See Ad. Code§ 11-604(3)(a)(10)(A)(vii) as added by sec-tion 34 of Chapter 201 of the Laws of 2009.

A customer is located in New York City if themailing address of the customer, as it appears inthe broker’s or dealer's records, is in New YorkCity. See Ad. Code § 11-604(3)(a)(2)(B)(v) asadded by section 33 of Chapter 201 of the Lawsof 2009.If the taxpayer is unable from its records to de-termine the mailing address of the customer,the receipts enumerated in any of such itemsshall be deemed to arise from services per-formed at the branch or office of the taxpayerthat generates the transaction for the customerthat generated such receipts. See Ad Code §11-604(3)(a)(10)(D) as added by section 34 ofChapter 201 of the Laws of 2009.

Note that the rules for the receipts under Ad.Code § 11-604(3)(a)(10)(A) described aboveshall also apply to receipts described hereinarising from a correspondent securities rela-tionship. See Ad. Code § 11-604(3)(a)(10)(C)as added by section 34 of Chapter 201 of theLaws of 2009.

LINE 2d - RENTALS OF PROPERTYReceipts from rentals of real and personalproperty situated in New York City are alloca-ble to New York City. These include allamounts received by the taxpayer for the useor occupation of property, whether or not suchproperty is owned by the taxpayer.

LINE 2e - ROYALTIESRoyalties from the use in New York City ofpatents or copyrights are allocable to NewYork City. These include all amounts re-ceived by the taxpayer for the use of patentsor copyrights, whether or not the patents orcopyrights were originally issued to or areowned by the taxpayer. A patent or copyrightis used in New York City to the extent that ac-tivities thereunder are carried on in New YorkCity.

LINE 2f - OTHER BUSINESSRECEIPTSAll other business receipts earned by the tax-payer within New York City are allocable toNew York City. Business receipts are not con-sidered to have been earned by the taxpayer inNew York City solely by reason of the fact thatthey were payable in New York City or actu-ally were received in New York City. Receiptsfrom sales of capital assets (property not heldby the taxpayer for sale to customers in theregular course of business) are not business re-ceipts.The following are also business receipts andare allocable to New York City.l receipts from the sale of real property

held by the taxpayer as a dealer for saleto customers in the regular course of busi-ness, provided the real property was situ-ated in New York City

l receipts from sales of intangible personalproperty included in business capital heldby the taxpayer as a dealer for sale to cus-tomers in the regular course of business,provided the sales were made in NewYork City or through a regular place ofbusiness in New York City

Payroll FactorLINE 3a - WAGES AND SALARIESEmployees within New York City generally in-clude all employees, except general executiveofficers, regularly connected with or workingout of an office or place of business maintainedby the taxpayer within New York City. For moreinformation, please see 19 RCNY Section 11-66(a)(4).General executive officers include the chair-man, president, vice-president, secretary, as-sistant secretary, treasurer, assistant treasurer,comptroller, and any other officer chargedwith the general executive affairs of the cor-poration. An executive officer whose dutiesare restricted to territory either inside or out-side of New York City is not a general execu-tive officer.

WEIGHTED FACTOR ALLOCATIONLINE 4aThose taxpayers using the weighted factor al-location should add the values from lines 1h,2i and 3c.

LINE 4bDivide line 4a by 100 if no factors are miss-ing. If a factor is missing, divide line 4a bythe total of the weights of the factors present.Note that a factor is not missing merely be-cause its numerator is zero, but is missing ifboth its numerator and denominator are zero.Enter as a percentage. Round to the nearestone hundredth of a percentage point.


LINE 5 - BUSINESS ALLOCATIONPERCENTAGECorporations using the weighted factor allo-cation method should enter the amount fromline 4b. Aviation corporations and corpora-tions operating vessels should completeSchedule I (Business Allocation for AviationCorporations and Corporations Operating Ves-sels) and enter the percentage from Part 1 and2 on Schedule H, line 5.

SCHEDULE IBusiness Allocation for Aviation Corpora-tions and Corporations Operating VesselsPart 1 - Aviation CorporationsA taxpayer principally engaged in the conductof aviation is required to determine the portionof the entire net income to be allocated withinthe City by multiplying its business income bya business allocation percentage which isequal to the arithmetic average of the threepercentages from part 1, lines 2, 4 and 6. Line 1“Aircraft arrivals and departures” means thenumber of landings and takeoffs of the air-craft of an aviation corporation and thenumber of air pickups and deliveries bysuch aircraft. Arrivals and departures solelyfor maintenance or repair, refueling (whereno debarking or embarking of traffic oc-curs), or arrivals and departures in the eventof emergency situations should not be in-cluded in computing this percentage.

Line 3“Revenue tons handled” by an aviation cor-poration at an airport means the weight, intons, of revenue passengers (at two hundredpounds per passenger) and revenue cargofirst received either as originating or con-necting traffic, or finally discharged bysuch corporation at such airport.

Line 5“Originating revenue” means revenue to anaviation corporation from the transportationof revenue passengers and revenue propertyfirst received by such corporation at an air-port as either originating or connecting traf-fic.

Line 8Transfer the percentage from part 1, line 8to Schedule H, line 5.

Part 2 - Corporations Operating VesselsA taxpayer principally engaged in the opera-tion of vessels is required to determine the por-tion of entire net income to be allocated withinthe City by multiplying its business income bya business allocation percentage determinedby dividing the aggregate number of workingdays of the vessels it owns or leases in territo-rial waters of the City during the period cov-

ered by its report by the aggregate number ofworking days of all the vessels it owns orleases during the period. Complete part 2.Line 1“Working days” means days during whicha vessel is sufficiently manned for the car-riage of persons or cargo or during which ithas cargo aboard. The working time in NewYork City territorial waters and the workingtime everywhere shall be computed for eachvessel in hours and minutes. At the end ofthe year, such time shall be totalled for allvessels and the sum converted into days.

Line 2Transfer the percentage from part 2, line 2to Schedule H, line 5.

SCHEDULE JAdditional Required InformationAll questions must be answered.Question 1In reporting the "NYC principal business ac-tivity," give the one activity that accounts forthe largest percentage of total receipts. Totalreceipts means gross receipts plus all other in-come. State the broad field of business activ-ity as well as the specific product or service(e.g., mining copper, manufacturing cottonbroad woven fabric, wholesale meat, retailmen’s apparel, export or import chemicals,real estate rental, or real estate operation ofmotel).Question 3If the corporation is included in a consolidatedfederal return, give the name of the commonparent corporation filing the consolidated re-turn.Question 10If you answer “yes” to question a, attach aseparate sheet providing street address, bor-ough, block and lot number of such property.If you answer “yes” to question b, c or d,complete questions 11 and 12.A controlling interest in the case of a corpora-tion means:l 50% or more of the total combined vot-

ing power of all classes of stock of suchcorporation, or

l 50% or more of the total fair market valueof all classes of stock of such corporation.

Question 13If you answer “yes” to question 13, no por-tion of the income, gain, loss, deduction orcapital of a QSSS is permitted to be in-cluded in a separate report filed by the Scorporation parent. The QSSS must either:1) be included in the Combined Group as aseparate member corporation or 2) file aseparate General Corporation Tax return.

See Finance Memorandum 99-3. Note thatto be included in the Combined Group, theQSSS would have to be required to be in-cluded or to be permitted to be included andto have elected such inclusion.

SCHEDULE KFederal Return InformationIf the corporation files as a member of a fed-eral consolidated group or files as an S Cor-poration, enter the information as it appearson its proforma federal return. If the corpo-ration files a separate return, enter the infor-mation appearing on the federal 1120 filedwith the IRS.

PRIVACY ACT NOTIFICATIONThe Federal Privacy Act of 1974, as amended,requires agencies requesting Social SecurityNumbers to inform individuals from whomthey seek this information as to whether com-pliance with the request is voluntary ormandatory, why the request is being made andhow the information will be used. The disclo-sure of Social Security Numbers for taxpayersis mandatory and is required by section 11-102.1 of the Administrative Code of the Cityof New York. Such numbers disclosed on anyreport or return are requested for tax adminis-tration purposes and will be used to facilitatethe processing of tax returns and to establishand maintain a uniform system for identifyingtaxpayers who are or may be subject to taxesadministered and collected by the Departmentof Finance, and, as may be required by law, orwhen the taxpayer gives written authorizationto the Department of Finance for another de-partment, person, agency or entity to have ac-cess (limited or otherwise) to the informationcontained in his or her return.


NYC-3L Instructions - 2013

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