N.Y. Tax Law § 1505: Limitation on tax

§ 1505. Limitation on tax. (a) (1) Domestic, foreign and alien

insurance corporations except life insurance corporations.

Notwithstanding the provisions of sections fifteen hundred one and

fifteen hundred ten of this article, and except as otherwise provided in

paragraph two of this subdivision, the amount of taxes imposed under

such sections for taxable years beginning on or after January first,

nineteen hundred seventy-seven and before January first, two thousand

three, computed without regard to any credits allowable against such tax

other than those credits provided under subdivisions (g) and (h) of

section fifteen hundred eleven of this article, shall not exceed an

amount computed as if such taxes were determined solely under section

fifteen hundred ten, except that for purposes of the limitation provided

herein, the rate of tax under such section shall be deemed to be (i) two

and six-tenths percent for taxable years beginning on or after January

first, nineteen hundred seventy-seven and before July first, two

thousand, (ii) two and four tenths percent for taxable years beginning

after June thirtieth, two thousand and before July first, two thousand

one, (iii) two and two tenths percent for taxable years beginning after

June thirtieth, two thousand one and before July first, two thousand

two, and (iv) two percent for taxable years beginning after June

thirtieth, two thousand two.

(2) Domestic, foreign and alien life insurance corporations. The

provisions of this paragraph shall apply to taxpayers subject to tax

under paragraph one of subdivision (b) of section fifteen hundred ten of

this article. Notwithstanding the provisions of sections fifteen hundred

one and fifteen hundred ten of this article, the amount of taxes imposed

under such sections for taxable years beginning on or after January

first, nineteen hundred seventy-seven, computed without regard to any

credits allowable against such tax other than those credits provided

under subdivisions (g) and (h) of section fifteen hundred eleven of this

article, shall not exceed an amount computed as if such taxes were

determined solely under section fifteen hundred ten, except that for

purposes of the limitation provided herein, the rate of tax under such

section shall be deemed to be (i) two and six-tenths percent for taxable

years beginning on or after January first, nineteen hundred

seventy-seven and before January first, nineteen hundred ninety-eight,

and (ii) two percent for taxable years beginning on or after January

first, nineteen hundred ninety-eight.

(b) Notwithstanding the provisions of sections fifteen hundred one and

fifteen hundred ten of this article, in the case of taxpayers subject to

tax under subdivision (b) of section fifteen hundred ten, the total

amount of tax imposed under this article, computed before the

application of any credits allowable against such tax, shall in no event

be less than the amount computed as if such tax was determined solely

under section fifteen hundred ten, except that the rate of tax under

section fifteen hundred ten shall be deemed to be one and five-tenths

percent.

(c) For purposes of the limitation set forth in subdivision (a) of

this section, in the case of an insurance corporation more than

ninety-five percent of whose premiums are received as consideration for

annuity contracts or are for policies and insurance described in

paragraph two of subdivision (c) of section fifteen hundred ten of this

article, in determining the amount of tax computed solely under section

fifteen hundred ten of this article, gross direct premiums subject to

tax under such section shall include such amounts received as

consideration for annuity contracts and premiums for policies and

insurance, including any separate costs assessed by such insurance

corporation upon its policyholders, described in paragraph two of

subdivision (c) of such section that exceed ninety-five percent of all

premiums received, including consideration for annuity contracts and

premiums for policies and insurance (and any separate costs assessed by

such insurance corporations upon its policyholders) described in

paragraph two of subdivision (c) of such section.