N.Y. Insurance Law § 7712: Credits for assessments paid

§ 7712. Credits for assessments paid. (a) The superintendent shall

annually issue a certificate of tax credit for net class A assessments

paid, and a separate certificate of tax credit for total net class B and

class C assessments paid, as such assessments are described in section

seven thousand seven hundred nine of this article, to an insurance

company that is required to file a tax return pursuant to article

thirty-three of the tax law. The superintendent shall issue such

certificates by March thirty-first of the year following the year in

which the class A, B, and C assessments are paid or to which they are

allocated pursuant to the provisions of subsection (c) of this section.

For the purposes of this section, an insurance company's "net class A

assessments paid" shall mean its gross class A assessments paid pursuant

to the provisions of article seventy-five or section seven thousand

seven hundred nine of this article, less any refunds, recoveries, or

reimbursements, and an insurance company's "total net class B and class

C assessments paid" shall mean its gross class B and class C assessments

paid pursuant to the provisions of article seventy-five or section seven

thousand seven hundred nine of this article, less any refunds,

recoveries, or reimbursements.

(b) The certificates of tax credit shall set forth the amount of tax

credit an insurance company may claim as follows:

(1) for net class A assessments, the eligible credit amount shall be

equal to the product of eighty per centum and the company's net class A

assessments paid; and

(2) for total net class B and class C assessments, the eligible credit

amount shall be equal to the product of eighty per centum and the

company's total net class B and class C assessments paid, subject to

subsection (c) of this section.

(c)(1) The aggregate amount of tax credits pursuant to this section

for total net class B and class C assessments in each calendar year

shall not exceed one hundred fifty million dollars. The aggregate tax

credit amount shall be allocated annually by the superintendent on a pro

rata basis to each company required to file a tax return pursuant to

article thirty-three of the tax law.

(2) The superintendent shall allocate any tax credit amount that

exceeds the annual credit cap of one hundred fifty million dollars to

the following calendar year and include such amount within the

calculation of the eligible credit amount subject to the aggregate

credit amount for the succeeding calendar year by the superintendent.

(3) For companies issued a certificate of tax credit for total net

class B and class C assessments, such annual certificate shall set forth

an amount equal to thirty-three and one-third per centum of the amount

calculated under subsection (b) of this section and allocated pursuant

to paragraph one of this subsection. The amount on the certificate of

tax credit shall be eligible to be claimed in the taxable year that

begins in the calendar year that such certificate is issued.

Thirty-three and one-third per centum of such amount shall be eligible

to be claimed in each of the two taxable years following such taxable

year.

(d)(1) The superintendent shall, in consultation with the commissioner

of taxation and finance, develop a certificate of tax credit for net

class A assessments, and a certificate of tax credit for total net class

B and class C assessments. Each certificate shall contain such

information as required by the commissioner of taxation and finance,

including a certificate date.

(2) The superintendent shall solely determine the tax credit

eligibility of any insurance company and shall revoke any certificate of

tax credit issued to an insurance company that no longer qualifies for a

tax credit. The superintendent shall modify the amount of the credit

shown on any such certificate if the superintendent determines that the

amount certified under subsection (b) of this section was not computed

properly pursuant to this section.

(3) To be issued a certificate of tax credit by the superintendent,

each insurance company shall:

(A) agree to allow the department of taxation and finance to share the

insurance company's tax information relevant to the administration of

this section with the superintendent. However, any information shared

with the superintendent as a result of this section shall not be

available for public disclosure or inspection under article six of the

public officers law;

(B) allow the superintendent and the corporation access to any and all

books and records the superintendent or corporation may require to

monitor compliance with this section; and

(C) agree to provide any additional information required by the

superintendent relevant to this section.