N.Y. Ins. Law § 7712
Credits for assessments paid
Redline — January 1, 2015 → current.View current text →
Current — January 1, 2025
As of January 1, 2015
§ 7712. Credits for assessments paid. (a) The superintendent shall\nannually, within six months following the close of each calendar year,\nfurnish to the commissioner of taxation and finance and the director of\nthe division of the budget a statement of operations for the life\ninsurance guaranty corporation and the life insurance company guaranty\ncorporation of New York. Such statement shall show the assessments, less\nany refunds or reimbursements thereof, paid by each insurance company\npursuant to the provisions of article seventy-five or section seven\nthousand seven hundred nine of this article, for the purposes of meeting\nthe requirements of this chapter. Each statement, starting with the\nstatement furnished in the year nineteen hundred eighty-six and ending\nwith the statement furnished in the year two thousand, shall show the\nannual activity for every year commencing from nineteen hundred\neighty-five through the most recently completed year. Each statement\nfurnished in each year after the year two thousand shall reflect such\nassessments paid during the preceding fifteen calendar years. The\nsuperintendent shall also furnish a copy of such statement to each such\ninsurance company.\n (b) The maximum authorized credit for each company in respect of the\nassessments paid during the most recent calendar year covered by such\nstatement shall be as follows:\n (1) if the sum of the net assessments paid by all companies in the\nperiod reported on in the statement of operations required to be\nfurnished by the superintendent pursuant to the provisions of subsection\n(a) of this section is less than one hundred million dollars, no such\ncredits shall be authorized;\n (2) (A) if the sum of such net assessments exceeds one hundred million\ndollars, the maximum authorized credit for each company with respect to\nnet assessments paid by such company in any year shall be the excess, if\nany, of (i) over (ii), where (i) is the sum of such company's tentative\ncross-over year credit and its tentative credits for subsequent years,\nboth as determined pursuant to subparagraphs (B) and (C) of this\nparagraph, and (ii) is the sum of the maximum credits theretofore\nauthorized for the years covered by such statement, to and including the\nmost recently completed year, determined with reference to the periods\ncovered by all prior such statements.\n (B) Such company's tentative cross-over year credit shall be eighty\nper centum of the product of (i) and (ii), where (i) is the sum of\nassessments paid by such company during the cross-over year, and (ii) is\na fraction, the numerator of which is the excess over one hundred\nmillion dollars of the sum of net assessments paid by all companies\nduring such period and the denominator of which is the sum of net\nassessments paid by such companies during the cross-over year. For\npurposes of this paragraph, the cross-over year is the first year during\nthe period covered by such statement in which the net assessments paid\nby all companies during such period exceeded one hundred million dollars\nin whole or in part.\n (C) Such company's tentative credit for each year subsequent to the\ncross-over year shall be eighty per centum of the net assessments paid\nby such company during such year.\n (3) For the purposes of this section, net assessments means gross\nassessments, less any recoveries or reimbursements, paid during the\nperiod covered by the most recent statement of operations furnished by\nthe superintendent pursuant to the provisions of subsection (a) of this\nsection.\n
§ 7712. Credits for assessments paid. (a) The superintendent shall\nannually issue a certificate of tax credit for net class A assessments\npaid, and a separate certificate of tax credit for total net class B and\nclass C assessments paid, as such assessments are described in section\nseven thousand seven hundred nine of this article, to an insurance\ncompany that is required to file a tax return pursuant to article\nthirty-three of the tax law. The superintendent shall issue such\ncertificates by March thirty-first of the year following the year in\nwhich the class A, B, and C assessments are paid or to which they are\nallocated pursuant to the provisions of subsection (c) of this section.\nFor the purposes of this section, an insurance company's "net class A\nassessments paid" shall mean its gross class A assessments paid pursuant\nto the provisions of article seventy-five or section seven thousand\nseven hundred nine of this article, less any refunds, recoveries, or\nreimbursements, and an insurance company's "total net class B and class\nC assessments paid" shall mean its gross class B and class C assessments\npaid pursuant to the provisions of article seventy-five or section seven\nthousand seven hundred nine of this article, less any refunds,\nrecoveries, or reimbursements.\n (b) The certificates of tax credit shall set forth the amount of tax\ncredit an insurance company may claim as follows:\n (1) for net class A assessments, the eligible credit amount shall be\nequal to the product of eighty per centum and the company's net class A\nassessments paid; and\n (2) for total net class B and class C assessments, the eligible credit\namount shall be equal to the product of eighty per centum and the\ncompany's total net class B and class C assessments paid, subject to\nsubsection (c) of this section.\n (c)(1) The aggregate amount of tax credits pursuant to this section\nfor total net class B and class C assessments in each calendar year\nshall not exceed one hundred fifty million dollars. The aggregate tax\ncredit amount shall be allocated annually by the superintendent on a pro\nrata basis to each company required to file a tax return pursuant to\narticle thirty-three of the tax law.\n (2) The superintendent shall allocate any tax credit amount that\nexceeds the annual credit cap of one hundred fifty million dollars to\nthe following calendar year and include such amount within the\ncalculation of the eligible credit amount subject to the aggregate\ncredit amount for the succeeding calendar year by the superintendent.\n (3) For companies issued a certificate of tax credit for total net\nclass B and class C assessments, such annual certificate shall set forth\nan amount equal to thirty-three and one-third per centum of the amount\ncalculated under subsection (b) of this section and allocated pursuant\nto paragraph one of this subsection. The amount on the certificate of\ntax credit shall be eligible to be claimed in the taxable year that\nbegins in the calendar year that such certificate is issued.\nThirty-three and one-third per centum of such amount shall be eligible\nto be claimed in each of the two taxable years following such taxable\nyear.\n (d)(1) The superintendent shall, in consultation with the commissioner\nof taxation and finance, develop a certificate of tax credit for net\nclass A assessments, and a certificate of tax credit for total net class\nB and class C assessments. Each certificate shall contain such\ninformation as required by the commissioner of taxation and finance,\nincluding a certificate date.\n (2) The superintendent shall solely determine the tax credit\neligibility of any insurance company and shall revoke any certificate of\ntax credit issued to an insurance company that no longer qualifies for a\ntax credit. The superintendent shall modify the amount of the credit\nshown on any such certificate if the superintendent determines that the\namount certified under subsection (b) of this section was not computed\nproperly pursuant to this section.\n (3) To be issued a certificate of tax credit by the superintendent,\neach insurance company shall:\n (A) agree to allow the department of taxation and finance to share the\ninsurance company's tax information relevant to the administration of\nthis section with the superintendent. However, any information shared\nwith the superintendent as a result of this section shall not be\navailable for public disclosure or inspection under article six of the\npublic officers law;\n (B) allow the superintendent and the corporation access to any and all\nbooks and records the superintendent or corporation may require to\nmonitor compliance with this section; and\n (C) agree to provide any additional information required by the\nsuperintendent relevant to this section.\n
Official source: NYS Open Legislation (New York State Senate). Reproduced from public-domain New York statutes; confirm against the official source for the current text. Not legal advice.