F I N A N C E Instructions for Form NYC-3L NEW YORK

General Corporation Tax Return For fiscal years beginning in 2006 or for calendar year 2006 Highlights of Recent Tax Law Changes for Corporations For tax years beginning after 2005, qualifying taxpayers that relocate to an industrial business zone (IBZ) to engage in industrial and manufacturing activities may be eligible for a one-time refundable credit equal to $1,000 for each full-time employee at eligible premises in the IBZ, with certain limits. Use Form NYC-9.6 to claim the credit against the General Corporation Tax. For films and shows completed on or after January 1, 2005, eligible taxpayers are allowed a Made in NYC Film Production Credit equal to 5% of the qualified production costs paid or incurred in the production of qualified films and television shows. Use Form NYC-9.9 to claim the credit against the General Corporation Tax.

For tax years beginning on or after January 1, 2004, in determining entire net income (“ENI”) of taxpayers, other than eligible farmers (for purposes of the New York State farmers' school tax credit), the amount allowed as a deduction with respect to a sport utility vehi- cle that is not a passenger automobile for purposes of section 280F(d)(5) of the Internal Revenue Code is limited to the amount allowed under section 280F as if the vehicle were a passenger automobile as defined in that section. For SUVs that are qualified prop- erty, other than qualified Resurgence Zone property and other than New York Liberty Zone property, the amount allowed as a deduc- tion is calculated as of the date the SUV was actually placed in service and not as of September 10, 2001. See, Finance Memorandum 06-1 dated October 12, 2006 “Application of IRC Section 280F Limits to Sports Utility Vehicles” for more information. The Relocation Employment Assistance Program (REAP) has been reinstated and a program granting similar benefits to businesses that relocate to lower Manhattan (LMREAP) has been enacted. Both the reinstatement of the REAP program and the enactment of the LMREAP program are effective as of July 1, 2003. See Administrative Code sections 11-604.17 and 11-604.19. Related members income and expense modifications—For tax years beginning on or after January 1, 2003, taxpayers may be required to add back to ENI certain payments for the use of intangible property, such as trademarks or patents, made during the tax year to related member(s) to the extent such payments were deducted in computing federal taxable income. Where the related member is a New York City taxpayer, the related member must subtract from ENI those payments received during the tax year to the extent the payments were included in federal taxable income and were required to be added back to the ENI of a related taxpayer. See Chapter 686 of the Laws of 2003, Part M. Effective for tax periods beginning on and after August 1, 2002, entities that receive eighty percent or more of their gross receipts from charges for the provision of mobile telecommunications services to customers will be taxed as if they were regulated utilities for pur- poses of the New York City Utility Tax, General Corporation Tax, Banking Corporation Tax and Unincorporated Business Tax. Thus, such entities will be subject to only the New York City Utility Tax. The amount of gross income subject to tax has been amended to conform to the Federal Mobile Telecommunications Sourcing Act of 2000. In addition, if any such entity is a partnership, its partners will not be subject to the New York City Utility Tax on their distributive share of the income of any such entity. Finally, for tax years beginning on and after August 1, 2002, partners in any such entity will not be taxed on their distributive share of the income of any such entity. Chapter 93, Part C, of the Laws of New York, 2002. Effective for tax years ending after September 10, 2001, for purposes of the New York City Unincorporated Business Tax, General Corpo- ration Tax and Banking Corporation Tax, the City has "decoupled" from the Federal bonus depreciation deductions allowed under the Job Creation and Worker Assistance Act of 2002 and the Jobs and Growth Tax Relief Reconciliation Act of 2003, except with respect to the depreciation deductions allowed with respect to "qualified New York liberty zone property", "qualified New York liberty zone leasehold improvements" and "qualified property" placed in service in the Resurgence Zone (generally the area in the borough of Manhattan South of Houston Street and North of Canal Street.) For City tax purposes, depreciation deductions for all other "qualified property" must be cal- culated as if the property was placed in service prior to September 11, 2001. See, Finance Memorandum 02-3 (Revised) "New York City Tax Consequences of Certain Retroactive Federal and New York Tax Law Changes" and Form NYC-399Z for more information.

GENERAL INFORMATION TRANSITIONAL PROVISIONS subject to tax after 2000 is considered to RELATING TO THE ENACTMENT have been subject to whichever tax, GCT or S CORPORATIONS OF THE GRAMM-LEACH-BLILEY ACT BCT, would have applied based on its activi- An S Corporation is subject to the General OF 1999: ties had it been a taxpayer prior to 2000. Corporation Tax and must file either Form NYC-4S or NYC-3L, whichever is applicable. Existing Corporations: Ad. Code §11-640 was amended to similarly See Finance Memorandum 99-3 for informa- Except for a banking corporation described require a corporation that was in existence tion regarding the treatment of qualified sub- in paragraphs (1) through (8) of Ad. Code prior to January 1, 2001 to be taxed in years chapter S subsidiaries. section 11-640(a) (see, Form NYC-1, beginning after 2000 and before 2003 under Instructions "Who Must File" items A the same tax, either GCT or BCT, that CORPORATION DEFINED through C), for taxable years beginning applied to it for the last year beginning before Unincorporated entities electing to be treat- after 1999 and before 2001, a corporation 2001. Ch. 383, Laws of 2001, Part P, §8. ed as associations taxable as corporations for that was in existence before January 1, 2000 Ad. Code 11-640 was further amended to federal income tax purposes pursuant to the was taxable under the same tax (either NYC require a corporation that was in existence “check-the-box” rules under IRC §7701(a)(3) General Corporation Tax (GCT) or NYC prior to January 1, 2003 to be taxed in years are treated as corporations for City tax pur- Banking Corporation Tax (BCT)) as applied beginning after 2002 and before 2004 under poses and are not subject to the Unincorpo- to it for its last taxable year beginning the same tax, either GCT or BCT, that rated Business Tax. Eligible entities having a before January 1, 2000. For this purpose, a applied to it for the last year beginning single owner disregarded as a separate entity corporation was considered to have been before 2003. Ch. 62, Pt. G3, sec. 6 of the under the “check-the-box” rules and treated subject to a tax prior to 2000 if it was not a Laws of 2003. Ad. Code §11-640 again was as either a sole proprietorship or a branch for taxpayer but was properly included in a amended in 2004 to require a corporation federal tax purposes will be similarly treated combined report filed by another corpora- that was in existence prior to January 1, for City tax purposes. See Finance Memoran- tion under that tax. A corporation that was 2004 to be taxed in years beginning after dum 99-1 for additional information. in existence prior to 2000 but first became Instructions for Form NYC-3L - 2006 Page 2

2003 and before 2006 under the tax, either GCT 2006. Ch. 60, Pt. G, §6 of the Laws of 2004. 7) it claims a credit for sales and compen- or BCT, that applied to it for the last year Also, new Ad. Code § 11-640(k) permits a sating use taxes paid in the current beginning before 2004. Ch. 60, Pt.G, §6 of the qualifying corporation formed on or after year or is required to adjust its current Laws of 2004. January 1, 2006 and before January 1, 2008 to General Corporation Tax as a result of make a comparable election for its first tax- Code 11-640 was also amended in 2006 to re- able year beginning after 2005 and before 2008. credits claimed in prior years. See the quire a corporation that was in existence prior Ad. Code § 11-640(k), as added by Ch. 62, Pt.I, instructions to Form NYC-9.5 and the to January 1, 2006 to be taxed in years begin- of the Laws of 2006. instructions for Schedule B, lines 6a ning after 2005 and before 2008 under the tax, Combined Filing under Transitional Provisions and 14 for more information. either the GCT or the BCT that applied to it 8) it claims a credit for increased real for the last year beginning before 2006. Ad. A bank holding company doing business in Code § 11-640(k), as added by Ch. 62, Pt.I, the City that, during a taxable year beginning estate tax payments made to a landlord of the Laws of 2006. after 1999 and before 2008, registers for the in connection with the relocation of first time as a bank holding company under employment opportunities to New York Newly-formed Corporations: the Bank Holding Company Act of 1956, as City, as provided in Section 11-604.13 of amended, and elects to be a financial holding A corporation formed on or after January 1, company, may file a combined report under the NYC Admin. Code; 2000, and before January 1, 2001, was permit- the BCT for such year with one or more 9) it claims a credit for certain costs or ted to elect to be subject to either the GCT or banking corporations doing business in the expenses incurred in relocating to New York BCT for its first taxable year beginning after City and 65% or more owned or controlled, City, as provided in Sections 11-604.14, 1999 and before 2001 provided either: directly or indirectly, by that bank holding 11-604.17, 11-604.17-b or 11-604.19 of the company without seeking permission from the corporation was a financial sub- the Commissioner. In addition, such bank NYC Admin. Code. See Instr. to Forms sidiary, or holding company may, without seeking the NYC-9.5, NYC-9.6 and NYC-9.8; at least 65% of the corporation's voting Commissioner's permission: (i) include in a 10) it claims a modification with respect to stock is owned or controlled, directly or combined report filed for a subsequent year wages and salaries disallowed as a indirectly, by a financial holding compa- beginning after 1999 and before 2008 any eli- deduction for federal income tax pur- ny, and the corporation is principally gible banking corporation that, for the first time in such subsequent year, either is doing poses (work incentive/jobs credit pro- engaged in activities described in sec- visions), as provided in Section 11- tions 4(k) 4 or 4(k)5 of the Bank Hold- business in the City or meets the above own- ing Company Act of 1956, as amended, ership requirements; and (ii) eliminate from a 602.8(a)(7) of the NYC Admin. Code; or described in regulations promulgat- combined report filed in any such subsequent 11) either separately or as a member of a ed under that section. year any corporation no longer meeting the partnership, it is engaged in an insur- requirements for combination in such subse- quent year. Except as provided above, the ance business as a member of the New A financial subsidiary is a corporation whose York Insurance Exchange; voting stock is 65% or more owned or permission of the Commissioner is required controlled directly or indirectly, by a bank- for any such bank holding company to cease 12) it is a Regulated Investment Company ing corporation (including a corporation that to file on a combined basis, elect to file on a as defined in Section 851 of the Internal has elected to be subject to the BCT under combined basis or make any changes to the Revenue Code (see section 11-603.7 of these transition rules) described in composition of the group of corporations fil- ing on a combined basis for any subsequent the NYC Admin. Code); paragraphs (1) through (3) of Ad. Code 13) it is a Domestic International Sales Cor- section 11-640(a) and described in 12 USCS year. Ad Code §11-646(f)(2)(iv). section 24a or section 46 of the Federal poration (DISC) or a Foreign Sales Cor- Deposit Insurance Act. CORPORATIONS REQUIRED TO FILE poration; FORM NYC-3L 14) it claims a credit for New York City A financial holding company is a corpora- A corporation (as defined in Section 11- Unincorporated Business Tax paid by a tion that has filed with the Federal Reserve 602.1 of the New York City Administrative partnership in which it is a partner as Board a written declaration of its election to Code) doing business, employing capital, or be a financial holding company under sec- provided in Section 11-604.18 of the tion 4(i) of the Bank Holding Company Act owning or leasing property in a corporate or NYC Admin. Code; of 1956, as amended, provided the Federal organized capacity, or maintaining an office 15) it will be included in a combined report Reserve Board has not found that election to in New York City must file Form NYC-3L (Form NYC-3A); be ineffective. and cannot use Form NYC-4S if: 16) it is required by Ad. Code section 1- An election by a newly-formed corpora- 1) it carries on business both inside and 602.8(n) either to add back payments tion under this provision must have been outside New York City; for the use of intangibles made to relat- made on or before the due date for filing 2) it has subsidiary and/or investment ed members or subtract such payments its return for the applicable year, includ- capital; ing extensions, and was made by filing from related members. See "Highlights the return required under the appropri- 3) it claims an optional deduction for of Recent Tax Law Changes for Corpo- ate tax. The election is irrevocable. expenditures relating to air pollution rations;" or control facilities, as provided in Section 17) It claims a credit for certain costs Ad. Code §11-640(h) permits a qualifying 11-602.8(g) of the NYC Admin. Code; incurred in the production of qualified corporation formed on or after January 1, 4) it claims a modification with respect to 2001 and before January 1, 2003 to make a films and television shows, as provided comparable election for its first tax year gain arising from the sale of certain in Section 11-604.20 of the NYC Admin- beginning after 2000 and before 2003. property, as provided in Section 11- istrative Code. 602.8(h) of the NYC Admin. Code; Similarly, Ad. Code §11-640(i) permits a 5) it is a real estate investment trust quali- The following are NOT required to file a qualifying corporation formed on or after Jan- General Corporation Tax Return: uary 1, 2003 and before January 1, 2004 to fied under Sections 856 and 857 of the make a comparable election for its first tax year Internal Revenue Code (see section 11- a) A dormant corporation that did not at beginning after 2002 and before 2004. Ch. 62, 603.7 of the NYC Admin. Code); any time during its taxable year engage Pt. G3, sec. 6 of the Laws of 2003. 6) it entered into a “safe harbor” lease in any activity or hold title to real prop- Ad. Code §11-640(j) similarly permits a transaction under provisions of the erty located in New York City. qualifying corporation formed on or after Internal Revenue Code as it was in b) A nonstock corporation organized and January 1, 2004 and before January 1, 2006 to effect for agreements entered into prior operated exclusively for nonprofit purpos- make a comparable election for its first to January 1, 1994; es and not engaged in substantial com- taxable year beginning after 2003 and before Instructions for Form NYC-3L - 2006 Page 3

mercial activities that has been granted an and that is not subject to the General Corpo- ACCESSING NYC TAX FORMS exemption by the Department of Finance. ration Tax is not required to file a Form NYC- By Computer - Download forms from the c) Corporations subject to taxation under 3L or NYC-4S but must file a Form NYC - 245 Finance website at nyc.gov/finance Part 4 of Subchapter 3 of Chapter 6, (Section 11-605 of the NYC Admin. Code). By Fax - For fax copies call 212-504-4038 Title 11 (Banking Corporations) or WHEN AND WHERE TO FILE from the phone connected to your fax under Chapter 11, Title 11 (Utility Cor- machine or modem. porations) of the NYC Admin. Code are The due date for filing is on or before not required to file General Corporation March 15, 2007, or, for fiscal year taxpayers, By Phone - Order forms through Finance’s Tax returns. However, corporations that on or before the 15th day of the 3rd month form ordering service, by calling 212-504- are subject to tax under Chapter 11 as following the close of the fiscal year. 4035, and receive forms in the mail. vendors of utility services are subject to Special short-period returns: If this is OTHER FORMS YOU MAY BE the General Corporation Tax in accor- NOT a final return and your Federal return REQUIRED TO FILE dance with section 11-603.4 of the NYC covered a period of less than 12 months as a FORM NYC-6 OR NYC-6F - Application for Admin. Code and must file a return. result of your joining or leaving a Federal Automatic Extension for General Corpora- d) A limited profit housing corporation consolidated group or as a result of a Federal tion Tax is an application for a six-month organized and operating pursuant to IRC §338 election, this return generally will extension of time to file a tax return. File it the provisions of Article Two of the Pri- be due on the due date for the Federal return on or before the due date of the return. If vate Housing Finance Law. and not on the date noted above. Check the the corporation ceased to be subject to tax e) Insurance corporations. box on the front of the return. f) A Housing Development Fund Company during 2006, use Form NYC-6F to request (HDFC) organized and operating pur- Returns with remittances: an extension to file a final return. NYC Department of Finance suant to the provisions of Article Eleven FORM NYC-6.1 - Application for Additional P.O. Box 5040 of the Private Housing Finance Law. Extension for General Corporation Tax is a Kingston, NY 12402-5040 g) Organizations organized exclusively for request for an additional three months of the purpose of holding title to property Returns claiming refunds: time to file a return. A corporation with a as described in Sections 501(c)(2) or NYC Department of Finance valid six-month extension is limited to two (25) of the Internal Revenue Code. P.O. Box 5050 additional extensions. h) An entity treated as a Real Estate Mort- Kingston, NY 12402-5050 gage Investment Conduit (REMIC) for FORM NYC-8 - General Corporation Tax federal income tax purposes. (Holders of All others: Claim for Credit or Refund is used to claim interests in a REMIC remain taxable on NYC Department of Finance a refund of General Corporation Tax. such interests or on the income thereon.) P.O. Box 5060 Please note that it no longer can be used to i) Corporations principally engaged in the Kingston, NY 12402-5060 file an amended return. conduct of a ferry business and operating FORM NYC-222 - Underpayment of Esti- between any of the boroughs of the City AUTOMATIC EXTENSIONS mated Tax by Corporations will help a cor- under a lease granted by the City. An automatic extension of six months for fil- poration determine if it has underpaid an j) A corporation principally engaged in the ing this return will be allowed if, by the origi- estimated tax installment and, if necessary, conduct of an aviation, steamboat, ferry nal due date, the taxpayer files with the compute the penalty due. or navigation business, or two or more Department of Finance an application for auto- such businesses, provided that all of the matic extension on Form NYC-6 and pays the FORM NYC-245 - Activities Report of Cor- capital stock of the corporation is owned amount properly estimated as its tax. See the porations must be filed by a corporation that by a municipal corporation of New York. instructions for Form NYC-6 for information has an officer, employee, agent or represen- k) Bank holding corporations filing on a regarding what constitutes a proper estimated tative in the City but disclaims liability for combined basis in accordance with Sec- tax for this purpose. Failure to pay a proper the General Corporation Tax. tion 11-646(f) of the NYC Admin. Code. estimated amount will result in a denial of the FORM NYC-399 - Schedule of New York l) Corporations principally engaged in the extension. A taxpayer with a valid six-month City Depreciation Adjustments is used to operation of marine vessels whose automatic extension filed on Form NYC-6 may compute the allowable New York City activities in the City are limited exclu- request up to two additional three-month sively to the use of property in inter- extensions by filing Form NYC-6.1. A sepa- depreciation deduction if a federal ACRS or MACRS depreciation deduction is claimed state or foreign commerce. rate Form NYC-6.1 must be filed for each for certain property placed in service after m) Foreign corporations that are exempt additional three-month extension. December 31, 1980. under the provisions of Public Law 86- Mail Forms NYC-6 and 6.1 to the address 272. See 19 RCNY Section 11-04 (b)(11). indicated on those forms. FORM NYC-399Z - Depreciation Adjust- n) For taxable years beginning on or after ments for Certain Post 9/10/01 Property January 1, 1998, an alien corporation if FINAL RETURNS may have to be filed by taxpayers claiming its activities in the City are limited sole- If a corporation ceases to do business in depreciation deductions for certain sport ly to investing or trading in stocks and New York City, the due date for filing a final utility vehicles or "qualified property," other securities for its own account within General Corporation Tax Return is the 15th than "qualified New York Liberty Zone the meaning of IRC §864(b)(2)(A)(ii) day after the due date of the cessation (Sec- property" and "qualified New York Liberty or investing or trading in commodities tion 11-605 of the NYC Admin. Code). Cor- Zone leasehold improvements" placed in for its own account within the meaning porations may apply for an automatic six- service after September 10, 2001 for Federal of IRC §864(b)(2)(B)(ii) or any combi- month extension for filing a final return by or New York State tax purposes. See, nation of these activities. NYC Admin. filing Form NYC-6F, Application for Exten- Finance Memorandum 06-1 dated October Code §11-603.2-a. sion to File Final Return. Any tax due must 12, 2006 “Application of IRC §280F be paid with the final return or the exten- Limits to Sports Utility Vehicles” and NOTE: A corporation that has an officer, sion, whichever is filed earlier. Finance Memorandum 02-3 (Revised) employee, agent or representative in the City Instructions for Form NYC-3L - 2006 Page 4

"New York City Tax Consequences of Cer- For more information regarding estimated tax Also for taxable years beginning on or after tain Retroactive Federal and New York Tax payments and due dates, see Form NYC-400. January 1, 1994, in calculating the tax on busi- Law Changes". ness and investment capital of foreign air- PENALTY FOR UNDERSTATING TAX lines, assets (and the liabilities directly or FORM NYC-400 - Declaration of Estimated If there is a substantial understatement of indirectly attributable to those assets) Tax by General Corporations must be filed tax (i.e., if the amount of the understate- employed in generating the income excluded by any corporation whose New York City ment exceeds the greater of 10% of the tax from entire net income are excluded. (See tax liability can reasonably be expected to required to be shown on the return or Admin. Code Sections 11-602.4 and 11-602.6.) exceed $1,000 for the 2007 calendar year or $5,000) for any taxable year, a penalty will fiscal year beginning in 2007. be imposed equal to 10% of the amount of WIRELESS TELECOMMUNICATIONS FORM NYC-3360 - General Corporation Tax the understated tax. SERVICE PROVIDERS Effective for tax periods beginning on and Report of Change in Tax base made by the The amount on which you pay the penalty after August 1, 2002, entities who receive Internal Revenue Service and/or New York can be reduced by subtracting any item for State Department of Taxation and Finance eighty percent or more of their gross which (1) there is or was substantial author- receipts from charges for the provision of is used for reporting adjustments in taxable ity for the way in which the item was treated income or other basis of tax resulting from mobile telecommunications services to cus- on the return, or (2) there is adequate dis- tomers will be taxed as if they were regulat- an audit of your federal corporate tax return closure of the relevant facts affecting the and/or State audit of your State corporate ed utilities for purposes of the New York item’s tax treatment on the return or in a tax return. City Utility Tax and General Corporation statement attached to the return. Tax. Thus, such entities will be subject to FORM NYC-CR-A - Commercial Rent Tax only the New York City Utility Tax. The Annual Return must be filed by every tenant CHANGE OF BUSINESS amount of gross income subject to tax has that rents premises for business purposes INFORMATION been amended to conform to the Federal in Manhattan south of the center line of If there have been any changes in your busi- Mobile Telecommunications Sourcing Act 96th Street and whose annual or annualized ness name, identification number, billing or of 2000. In addition, for tax years beginning gross rent for any premises is at least mailing address or telephone number, com- on and after August 1, 2002, partners in any $200,000. (Effective June 1, 2001.) plete Form DOF-1, Change of Business such entity will not be subject to General FORM NYC-RPT - Real Property Transfer Information. You can obtain this form by Corporation Tax on their distributive share Tax Return must be filed when the corpora- calling Taxpayer Assistance at (212) 504- of the income of any such entity. tion acquires or disposes of an interest in 4036. You can also visit our Internet web- site at http://nyc.gov/finance. SIGNATURE real property, including a leasehold interest; This report must be signed by an officer when there is a partial or complete liquida- authorized to certify that the statements con- tion of the corporation that owns or leases FOREIGN AIRLINES Retroactive to tax years beginning on or tained herein are true. If the taxpayer is a real property; or when there is a transfer of publicly-traded partnership or another unin- a controlling economic interest in a corpora- after January 1, 1989, foreign airlines that have a foreign air carrier permit pursuant to corporated entity taxed as a corporation, this tion, partnership or trust that owns or leas- return must be signed by a person duly Section 402 of the Federal Aviation Act of es real property. authorized to act on behalf of the taxpayer. 1958 are permitted to exclude from entire ESTIMATED TAX net income the following items: TAX PREPARERS If the tax for the period following that cov- Anyone who prepares a return for a fee must ered by this return is expected to exceed all income from the international opera- tion of aircraft, even though effectively sign the return as a paid preparer and enter $1,000, a declaration of estimated tax and his or her Social Security Number or PTIN. connected with the conduct of a trade installment payments are required. Form See Finance Memorandum 00-1. Include the or business in the United States NYC-400 is to be used for this purpose. If company or corporation name and Employer the tax on this return exceeds $1,000, Form income from outside the United States Identification Number, if applicable. NYC-400 will automatically be mailed to that is derived from the operation of air- you. Preparer Authorization: If you want to craft allow the Department of Finance to discuss If, after filing a declaration, your estimated certain passive income derived from your return with the paid preparer who tax substantially increases or decreases as a sources outside the United States signed it, you must check the "yes" box in the result of a change in income, deduction or signature area of the return. This authoriza- The above exclusions are permitted provid- allocation, you must amend your declara- tion applies only to the individual whose sig- ed that the foreign country in which the air- tion on or before the next date for an install- nature appears in the "Preparer's Use Only" line is based and organized grants a similar ment payment. The procedure is as follows: section of your return. It does not apply to Complete the amended schedule of the or greater exemption from tax with respect the firm, if any, shown in that section. By notice of estimated tax due. (This is to United States airlines. For more informa- checking the "Yes" box, you are authorizing your quarterly notice for payment of tion, see Admin. Code Section 11-602.8 (c-1). the Department of Finance to call the prepar- estimated tax.) For taxable years beginning on or after Jan- er to answer any questions that may arise Mail the bottom portion of the notice uary 1, 1994, property, receipts and wages, during the processing of your return. Also, along with your check to: salaries or other personal service compen- you are authorizing the preparer to: NYC Department of Finance sation directly attributable to the generation Give the Department any information P.O. Box 5100 of income described above not included in missing from your return, Kingston, NY 12402-5100 entire net income under Admin. Code Sec- Call the Department for information If the amendment is made after the 15th day of tion 11-602.8 (c-1) are excluded when calcu- about the processing of your return or the 9th month of the taxable year, any increase lating the business allocation percentage. the status of your refund or payment(s), in tax must be paid with the amendment. See Admin. Code Section 11-604.3 (a) (6). and Instructions for Form NYC-3L - 2006 Page 5 Respond to certain notices that you have net income plus compensation, you may use tance program. (Attach Form NYC-9.8.) shared with the preparer about math the worksheet on page 6 of Form NYC-3L. errors, offsets, and return preparation. The Professional corporations must calculate the LINE 9a - CREDITS FROM notices will not be sent to the preparer. alternative tax. FORM NYC-9.6 Real estate tax escalation credit, employment You are not authorizing the preparer to Additional Information for Computing opportunity relocation costs credit, and receive any refund check, bind you to any- the Alternative Tax Industrial Business Zone credit (Refer to thing (including any additional tax liability), ALTERNATIVE TAX WORKSHEET instructions on Form NYC-9.6 and attach form.) or otherwise represent you before the Department. The authorization cannot be a) Line 2 - Salaries. For taxable years begin- LINE 9b – CREDITS FROM ning on or after 7/1/99 no portion of offi- revoked, however, the authorization will auto- FORM NYC-9.9 cers salaries and other compensation is matically expire no later than the due date Enter on this line the NYC film production included in the alternative tax base. (without regard to any extensions) for filing credit. (Attach Form NYC-9.9.) Notwithstanding the foregoing, next year's return. Failure to check the include in the alternative tax computation 100% box will be deemed a denial of authority. LINE 11b - FIRST INSTALLMENT of all salaries and compensation of PAYMENT stockholders owning more than 5% of Do not use this line if an application for auto- SPECIFIC INSTRUCTIONS the corporation’s stock, as deducted matic extension, Form NYC-6, has been filed. for federal tax purposes and reported The payment of the amount shown at line 11b Check the box marked "yes" on page 1 of on Schedule F, regardless of whether is required as payment on account of estimat- this form if, on your federal return: (i) you such stockholders are also officers. In ed tax for the 2007 calendar year, if a calen- reported bonus depreciation and/or a first determining whether a stockholder owns dar year taxpayer, or for the taxable year year expense deduction under IRC §179 for more than 5% of the issued capital stock, beginning in 2007, if a fiscal year taxpayer. "qualified New York Liberty Zone property," include all classes of voting and nonvoting "qualified New York Liberty Zone leasehold stock, issued and outstanding. LINE 12 - SALES TAX ADDBACK improvements," or "qualified Resurgence b) Line 3 - Enter on line 3 the sum of line 1 This line relates to the General Corporation Zone property," regardless of whether you and line 2. Tax credit for sales and compensating use are required to file form NYC-399Z, (ii) you c) Line 4 - For taxable years beginning on taxes paid on certain machinery and equip- claimed a federal targeted jobs credit for Lib- or after 7/1/98, enter $40,000. If the ment and/or certain services. If the taxpay- erty Zone business employees, or (iii) you return does not cover an entire year, er received a credit or refund of any such replaced property involuntarily converted as the exclusion must be prorated based sales or compensating use taxes during the a result of the attacks on the World Trade on period covered by the return. year covered by this return for which it Center during the five (5) year extended claimed a General Corporation Tax credit in LINE 5 - ALLOCATED SUBSIDIARY replacement period. You must attach Feder- a prior tax period, the amount of such credit CAPITAL al forms 4562, 4684, 4797 and 8884 to this or refund must be added back at line 12. A Enter the amount from Schedule C, line 2, return. See instructions for Schedule B, corresponding adjustment is to be made at Column G. If that amount is less than zero, lines 6d, 15, and 16 for more information. line 14 on Schedule B. (Refer to instructions enter "0". to line 14 on Schedule B.) SCHEDULE A Computation of Tax LINE 7 - UBT PAID CREDIT LINE 14 - PREPAYMENTS Enter on line 7 the credit against the Gener- Enter the sum of all estimated tax payments LINES 2a AND 2b - TAX ON al Corporation Tax for Unincorporated Busi- made for this tax period, the payment made ALLOCATED CAPITAL ness Tax paid by partnerships from which with the extension request, if any, and both For cooperative housing corporations as you receive a distributive share or guaran- the carryover credit and the first installment defined in the Internal Revenue Code, the teed payment that you include in calculating reported on the prior tax period’s return. rate of tax on capital is 4/10 mill (.04%) General Corporation Tax liability on either This figure should be obtained from the instead of 1 1/2 mills (.15%). For all other the entire net income or income plus com- Composition of Prepayments Schedule on corporations subject to tax, including hous- pensation base. (Attach Form NYC-9.7.) page 6 of Form NYC-3L. ing companies organized and operating pur- LINE 8a - CREDITS FROM suant to Article Four of the Private Housing LINE 17a - LATE PAYMENT - INTEREST Finance Law (other than cooperative hous- FORM NYC-9.5 If the tax is not paid on or before the due ing corporations), the rate of tax on capital Enter on this line the following credits date (determined without regard to any is 1 1/2 mills (.15%). against the General Corporation Tax: extension of time), interest must be paid on 1) Relocation and employment assistance the amount of the underpayment from the Enter the amount from Schedule E, line 14 program (REAP) credit (Attach Form due date to the date paid. For information in the left-hand column of line 2a or line 2b. NYC-9.5.) as to the applicable rate of interest, call: Multiply by the applicable percentage and 2) Sales and compensating use taxes (212) 504-4036. enter the tax in the right-hand column. If (Refer to instructions on Form NYC-9.5 that amount exceeds $350,000, enter and attach form.) LINE 17b - LATE PAYMENT OR LATE $350,000. See instructions for Schedule FILING/ADDITIONAL CHARGES E, lines 7-11 for information on how to cal- NOTE: This credit may only be taken for a) A late filing penalty is assessed if you culate capital for short tax years. sales tax paid in the current year for cer- fail to file this form when due, unless tain purchases in certain prior periods. the failure is due to reasonable cause. LINE 3 - ALTERNATIVE TAX For every month or partial month that Every taxpayer, other than a real estate LINE 8b – CREDITS FROM this form is late, add to the tax (less investment trust or regulated investment FORM NYC-9.8 any payments made on or before the company, must calculate its alternative tax Enter on this line the credit against the Gen- due date) 5%, up to a total of 25%. and enter its computation on line 3. To com- eral Corporation Tax for the new Lower pute the alternative tax, measured by entire Manhattan relocation and employment assis- b) If this form is filed more than 60 days Instructions for Form NYC-3L - 2006 Page 6

late, the above late filing penalty cannot SCHEDULE B under Title 11, Chapter 6, Subchapters 2 be less than the lesser of (1) $100 or Computation and Allocation of Entire Net and 3 of the Admin. Code. (2) 100% of the amount required to be Income If you have a subsidiary, complete lines 3 shown on the form (less any payments LINE 1 - FEDERAL TAXABLE made by the due date or credits and 4, and attach a list of all items included. INCOME claimed on the return). You will also have to complete Schedule C. Enter your federal taxable income (before If you do not have a subsidiary, enter “0” on c) A late payment penalty is assessed if net operating loss and special deductions) lines 3 and 4. you fail to pay the tax shown on this as required to be reported on your federal form by the prescribed filing date, tax return. On line 3, enter total of amounts, including unless the failure is due to reasonable interest expense, deducted in computing cause. For every month or partial If you file federal Form 1120, use the federal taxable income that are directly amount from line 28. month that your payment is late, add to attributable to subsidiary capital or to the tax (less any payments made) If you file federal Form 1120-A, use the income, gains or losses from subsidiary cap- 1/2%, up to a total of 25%. amount from line 24. ital. Include capital losses from sales or d) The total of the additional charges in a) If you file federal Form 1120-RIC, see exchanges of subsidiary capital, all other and c) may not exceed 5% for any one Admin. Code section 11-603.8. losses, bad debts and any carrying charges month except as provided for in b). If you file federal Form 1120-REIT, see attributable to subsidiary capital. If you claim not to be liable for these addi- Admin. Code section 11-603.7. On line 4, enter all amounts, including inter- tional charges, attach a statement to your S Corporations and qualified subchap- est, that are indirectly attributable to sub- return explaining the delay in filing, pay- ter S subsidiaries (QSSS) must file sidiary capital or to income, gains or losses ment or both. returns as ordinary corporations. If from subsidiary capital. you are an S corporation filing on Form LINE 17c - PENALTY FOR UNDER- For more information, see also Statement of 1120S or a QSSS, you must report on PAYMENT OF ESTIMATED TAX Audit Procedure 96-1-GCT, Noninterest Ex- line 1 the amount you would have had A penalty is imposed for failure to file a dec- pense Attribution, January 29, 1996, available to report as taxable income were you laration of estimated tax or for failure to pay on the Department's website (nyc.gov/finance). not a federal S corporation or QSSS. each installment payment of estimated tax LINE 5 - STATE AND LOCAL INCOME due. (For complete details, refer to Form Enter at Schedule B, line 1, the total amount TAXES NYC-222, Underpayment of Estimated Tax by of income reported on lines 1 through 10 of On line 5a enter the amount deducted on Corporations.) If you underpaid your esti- the federal form 1120S, Schedule K, less the your federal return for income taxes paid or mated tax, use Form NYC-222 to compute total amount of deductions reported on lines accrued to any state, any political subdivi- the penalty. Attach Form NYC-222. If no 11 through 12d of that Schedule. In addi- sion of a state or to the District of Columbia, penalty is due, enter “0” on line 17c. tion, include other items and amounts that if they are on or measured by profits or are required to be reported separately to income or include profits or income as a LINE 21 - TOTAL REMITTANCE shareholders and not numerically included measure of tax, including taxes expressly in If the amount on line 15 is greater than zero on federal Schedule K, but attached in a lieu of any of the foregoing taxes. Include or the amount on line 19 is less than zero, separate schedule. the New York State Metropolitan Trans- enter on line 21 the sum of line 15 and the portation Business Tax surcharge. amount, if any, by which line 18 exceeds the NOTE: The charitable contribution amount on line 16. After completing this deduction from federal Form 1120S, Sched- On line 5b enter the amount of New York return, enter the amount of your remittance ule K, line 12a may not exceed 10% of the City General Corporation Tax and Banking on line A. This must be the full amount as sum of lines 1 through 12d (other than line Corporation Tax deducted on your federal shown on line 21. All remittances must be 12a) of Schedule K. return. payable in U.S. dollars drawn on a U.S. LINE 2 - NONTAXABLE INTEREST Attach a schedule listing each locality and the bank. Checks drawn on foreign banks will Include all interest received or accrued amount of all those taxes deducted on your be rejected and returned. Remittances which was not taxable on your federal federal return. must be made payable to the order of NYC income tax return. Department of Finance. LINES 6a, 6b, 6c AND 6d - LINES 3 AND 4 - NEW YORK CITY ADJUSTMENTS LINE 22 - NEW YORK CITY RENT SUBSIDIARY CAPITAL a) The credit for sales tax paid on electric- If the corporation is carrying on business A subsidiary is a corporation which is con- ity or electric service used in the pro- both inside and outside New York City, com- trolled by the taxpayer by reason of the tax- duction of certain tangible property for- plete Schedule G and enter on line 22 of payer’s ownership of more than 50% of the merly allowed by Admin. Code §11- Schedule A total rent from Schedule G, part total number of shares of the corporation’s 604.15 has been repealed for purchases 1. If the corporation is only carrying on busi- voting capital stock, issued and outstanding. on or after November 1, 2000. No ness in New York City, enter the total rent The term “subsidiary capital” means all amount should be added back with deducted on the federal return for premises investments in the stock of subsidiary cor- respect to this credit. located in the City. Rent includes considera- porations, plus all indebtedness from sub- tion paid for the use or occupancy of premis- Purchases of machinery or equipment sidiary corporations (other than accounts es as well as payments made to or on behalf for which a credit is allowed by Admin. receivable acquired in the ordinary course of a landlord for taxes, charges, insurance or Code §11-604.12 were exempted from of business for services rendered or from other expenses normally payable by the land- sales tax effective December 1, 1989. sales of property held primarily for sale to lord other than for the improvement, repair Purchases of certain services per- customers), whether or not evidenced by or maintenance of the tenant’s premises. formed on machinery or equipment bonds or other written instruments, on used in production for which a credit is which interest is not claimed and deducted allowed by Admin. Code §11-604.17-a by the subsidiary for purposes of taxation Instructions for Form NYC-3L - 2006 Page 7

were exempted from sales tax effective the disposition of an SUV subject to the entered into prior to January 1, 1984. September 1, 1996. Credits may be limitation, the amount of any gain or Any amount included in the computa- taken under these two provisions only loss included in income must be adjust- tion of federal taxable income solely as if the sales tax payment was made in ed to reflect the limited deductions a result of an election made under IRC the current year with respect to a pur- allowed for City purposes under this Section 168(f)(8) must be removed chase in a period when the applicable provision. Enter on Schedule B, line when computing New York City tax- sales tax was effective. In such case, 6(d) and 16 the appropriate adjust- able income. Any amount excluded in the sales tax excluded or deducted for ments from form NYC-399Z. See the computation of federal taxable federal tax purposes should be added Finance Memorandum 06-1 dated income solely as a result of an election back. If you are claiming a credit pur- October 12, 2006 “Application of IRC made under IRC Section 168(f)(8) must suant to §11-604.12, a form NYC 9.5 for §280F Limits to Sports Utility Vehi- be included when computing New York the year 1990 or a prior year should be cles.” City taxable income. used. If you are claiming a credit pur- The federal depreciation deduction Exempt from these adjustments are suant to §11-604.17-a, a form NYC 9.5 computed under the Accelerated Cost leases for qualified mass commuting for the year 2000 or a prior year should Recovery System or Modified Acceler- vehicles and property of a taxpayer, be used. ated Cost Recovery System (IRC Sec- subject to the General Corporation Tax, b&c) Taxpayers claiming the real estate tax tion 168) is not allowed for the follow- principally engaged in the conduct of escalation credit, the employment oppor- ing types of property: an aviation, steamboat, ferry or naviga- tion business, or two or more such tunity relocation costs credit, or the property placed in service in New businesses, which is placed in service Industrial Business Zone credit must enter York State in taxable years begin- before taxable years beginning in 1989. on lines 6(c) and 6(b), respectively the ning before January 1, 1985 (except amounts shown on lines 4 and 5, recovery property subject to the Enter the appropriate additions and respectively, of Part II of Form NYC-9.6. provisions of Internal Revenue deductions on lines 7 and 17, respec- tively, and attach a rider to show the d) The Federal bonus depreciation Code Section 280-F) “safe harbor” adjustments to New York allowed for "qualified property," as property of a taxpayer principally City taxable income. defined in the Job Creation and Worker engaged in the conduct of an avia- Assistance Act of 2002 is not allowed tion, steamboat, ferry, or navigation b) Foreign taxes paid or accrued that are for General Corporation Tax purposes business, or two or more such busi- deducted from gross income to deter- except for such deductions allowed nesses which is placed in service in mine federal taxable income must be with respect to "qualified New York lib- taxable years beginning after added to entire net income. A foreign tax erty zone property", "qualified New December 31, 1988, and before Jan- credit may not be used as a deduction York liberty zone leasehold improve- uary 1, 1994. when computing NYC entire net income. ments" and "qualified property" placed In place of the federal depreciation c) Any “windfall profit” tax deducted in in service in the Resurgence Zone (gen- deduction, a depreciation deduction computing federal income must be erally the area in the borough of Man- using pre-ACRS or MACRS rules (IRC added back when computing NYC hattan South of Houston Street and Section 167) is allowed. Enter on line entire net income. North of Canal Street.) For City tax 6d the ACRS adjustment from Form d) If the taxpayer deducted on its federal purposes, depreciation deductions for NYC-399, Schedule C, line 8, Column return interest paid to a corporate all other "qualified property" must be A. Enter on line 16 the ACRS adjust- stockholder owning more than 50% of calculated as if the property was placed ment from Form NYC-399, Schedule C, its issued and outstanding stock, that in service prior to September 11, 2001. line 8, Column B. corporate shareholder may not exclude See, Finance Memorandum 02-3 that interest from its NYC entire net (Revised) "New York City Tax Conse- ACRS and MACRS may be available for income as income from subsidiary capi- quences of Certain Retroactive Federal property placed in service outside New tal. (See instructions for lines 3, 4 and and New York Tax Law Changes" for York in years beginning after 1984 and 9.) To enable a more than 50% corpo- more information. For tax years begin- before 1994. See Finance Memoran- rate shareholder to treat any such inter- ning on or after January 1, 2004, other dum 99-4 “Depreciation for Property est as excludible income from sub- than for eligible farmers (for purposes Placed in Service Outside New York sidiary capital, such interest should be of the New York State farmers' school After 1984 and Before 1994”. added back on line 7 of this return in tax credit), the amount allowed as a computing NYC entire net income. deduction with respect to a sport utility LINE 7a - PAYMENT FOR USE OF vehicle that is not a passenger automo- INTANGIBLES e) In the case of a taxpayer organized out- bile for purposes of section 280F(d)(5) Add back payments for the use of intangibles side the United States, all income from of the Internal Revenue Code is limited made to related members as required by Ad. sources outside the United States, less to the amount allowed under section Code section 11-602.8(n). See "Highlights of all allowable deductions attributable 280F of the Internal Revenue Code as if Recent Tax Law Changes for Corporations." thereto, that was not taken into account in computing federal taxable income the vehicle were a passenger automo- LINE 7b - OTHER ADDITIONS bile as defined in that section. For must be added back in computing NYC a) Effective for taxable years beginning on SUVs that are qualified property other entire net income. or after January 1, 1982, the New York than qualified Resurgence Zone proper- LINES 9a and 9b - INCOME FROM ty and other than New York Liberty City Admin. Code was amended to nullify SUBSIDIARY CAPITAL Zone property, the amount allowed as a the effects of federal “safe harbor leases” Enter on line 9a dividends, capital gains and deduction is calculated as of the date upon New York City taxable income (Sec- other income and gain from subsidiary capi- the SUV was actually placed in service tion 11-602.8(a)(8) and (9) of the Admin. tal that was included as part of federal tax- and not as of September 10, 2001. On Code). This applies to agreements able income. Complete Schedule C. Instructions for Form NYC-3L - 2006 Page 8

Enter on line 9b interest from subsidiary taxpayer elects to relinquish the entire prescribed in Section 11-678 of the Admin. capital that was included in federal taxable carryback period for federal purposes, Code. Corporations that have elected to income. Do not enter on line 9b interest then the taxpayer may not carryback any relinquish the carryback period for a net for which the payor subsidiary claimed a amount for City purposes. See instruc- operating loss incurred in taxable years deduction. (See instructions for Schedule B, tions for Forms NYC-8 and NYC-8CB for beginning after August 5, 1997 must submit lines 3 and 4, above, for the definition of sub- more information. a copy of the federal election. sidiary capital.) 5) Losses which are not permitted to be car- Because an S corporation does not carry LINE 10 - NONSUBSIDIARY ried back, may generally be carried for- over NOLs, it will not have made a federal DIVIDENDS ward and used to offset income for the election to relinquish any or all of its carry- Enter 50% of dividends received from non- period permitted for federal tax purpos- back period. Therefore, for City tax purpos- subsidiary corporations. Do not include the es, generally 20 years subsequent to the es for losses arising in taxable years ending following: (1) “gross-up” dividends pursuant loss year for losses incurred in taxable in or after 2002, it will be presumed that, to IRS Section 78, and (2) dividends from years beginning after August 5, 1997. unless the taxpayer S corporation attached a stocks not meeting the holding period 6) Corporations principally engaged in the statement to this return indicating that the requirement set forth in IRC Section 246(c). conduct of an aviation, steamboat, ferry taxpayer intends to carry back the loss, the Regulated investment companies and real or navigation business or two or more of taxpayer is presumed to have elected to estate investment trusts do not qualify for such businesses are permitted to claim a relinquish the entire carryback period. For S this deduction. net operating loss deduction in the same corporations filing on a combined basis only manner as other corporations. with other S corporations or qualified Sub- LINE 11 - NET OPERATING LOSS chapter S subsidiaries, any statement Enter New York City net operating loss car- These corporations are allowed to carry attached either to a proforma NYC-3L or to ryforward from prior years. The following forward any net operating losses or a the NYC-3A will be deemed applicable to the rules apply to net operating losses. proportionate part of a net operating loss entire group. Any excess net operating loss sustained during the federal taxable peri- may be carried forward as if the taxpayer had 1) A deduction may only be claimed for net od(s) covering the years 1985 through elected to relinquish the entire carryback operating losses sustained in taxable 1988, provided the corporation was tax- period for all but the first $10,000 of the loss. years during all or part of which the cor- able under Title 11, Chapter 6, Subchap- poration was subject to the General Cor- ter 4 of the Admin. Code (Transportation LINE 12 - PROPERTY ACQUIRED poration Tax. New York City allows net Corporation Tax) for the calendar years PRIOR TO 1966 operating losses to be used in the same 1985 through and including 1988. The A deduction is allowed with respect to gain manner as provided by IRC Section 172. net operating loss must be computed as if: from the sale or other disposition of any prop- However, the amount of any federal loss a) the corporation had been subject to erty acquired prior to January 1, 1966 (except must be adjusted in accordance with taxation under Subchapter 2 (Gener- stock in trade, inventory, property held pri- Section 11-602.8(f) of the Admin. Code. al Corporation Tax) during the peri- marily for sale to customers in the ordinary Regulated investment companies and od(s) the loss was sustained, course of trade or business or accounts or real estate investment trusts do not qual- b) the loss was sustained in 1988, and notes receivable acquired in the ordinary ify for this deduction. c) the taxpayer had elected to relin- course of trade or business). The amount of 2) The deduction of a net operating loss quish the entire carryback period the deduction with respect to each such prop- carryforward from prior years may not under IRC Section 172. erty is equal to the difference between: exceed, and is limited to, the amount of For special rules relating to acquisitions, a) the amount of the taxpayer’s federal the current year’s federal taxable mergers or consolidations involving cor- taxable income; and income. A net operating loss may not be porations principally engaged in the con- b) the amount of the taxpayer’s federal claimed as a deduction if Schedule B, duct of aviation, steamboat, ferry or navi- taxable income (if smaller than the line 1 reflects a loss. gation business, refer to Section 77b of amount described in(a)), computed as 3) The deduction shall not exceed the Chapter 241 of the Laws of 1989. if the federal adjusted basis of each deduction that would have been allowed 7) Corporations reporting both business such property (on the sale or other dis- if the taxpayer had not made an election and investment income must complete position of which gain was realized) on to be an S Corporation under the rules of line 22 of this schedule to apportion any the date of the sale or other disposition the Internal Revenue Code or had not net operating loss between business had been equal to either: elected to be included in a group report- income and investment income. 1) its fair market value on January 1, ing on a consolidated basis for federal Attach a copy of the schedule supporting the 1966, or the date of its sale or income tax purposes. deduction claimed at either line 29(a) on other disposition prior to January 4) The New York City net operating loss page 1 of your federal Form 1120 or line 1, 1966, plus or minus all adjust- deduction taken for City purposes for 25(a) of your federal Form 1120A. ments to basis made with respect each year may not exceed the deduction to such property for federal CARRYBACK LOSSES allowable for that year for federal income income tax purposes for periods If the amount on line 18 is greater than the tax purposes calculated as if the taxpay- on or after January 1, 1966; or er had elected to relinquish the carry- amount on line 8 so that the entry on line 19 2) the amount realized from its sale back period except with respect to the would be a loss, a request to carry it back as or other disposition, whichever is first $10,0000 of each year’s loss. The a net operating loss deduction in any prior lower. carryback period for General Corpora- year must be made separately on Form NYC- tion Tax purposes corresponds to the 8CB or Form NYC-8. Do not attach or mail a In no event, however, shall the total amount federal carryback period. If the taxpayer Form NYC-8CB or Form NYC-8 with the tax computed above exceed the taxpayer’s net elects to use a 2-year carryback period return. This request must be submitted gain for the year from the sale or other dis- for federal purposes, the same carryback within three years of the due date of the position of property (other than stock in period applies for City purposes. If the return for the loss year or within the period trade, inventory, property held primarily for Instructions for Form NYC-3L - 2006 Page 9 sale to customers in the ordinary course of LINE 17b - OTHER DEDUCTIONS c) For tax years beginning on or after August trade or business, or accounts or notes a) Refer to instructions to Schedule B, 1, 2002, corporations that are partners in receivable acquired in the ordinary course line 7 for adjustments relating to safe partnerships that receive at least eighty of trade or business). harbor leases. percent of their gross receipts from providing mobile telecommunications b) Taxpayers entitled to a special deduc- Attach a rider showing computation and a services must exclude their distributive tion for construction, reconstruction, copy of federal Form 1120, 1120-A or 1120- share of income, gains, losses and erection or improvement of air pollu- S, Schedule D. deductions from any such partnership, tion control facilities initiated on or including their share of separately reported LINE 13 - CITY AND STATE after January 1, 1966, and having a situs items, from their federal taxable income REFUNDS in NYC in accordance with Section 11- reported on line 1. See "Highlights of Enter at line 13 refunds or credits of the 602.8(g) should submit a rider showing Recent Tax Law Changes for New York City General Corporation Tax, the complete computation. Corporations", supra. New York State Franchise Tax or New York Enclose certification of compliance City or State Banking Corporation Tax for issued pursuant to Section 17-0707 or LINE 21 - INVESTMENT INCOME which no tax exclusion or deduction was Section 19-0309 of the Environmental Investment income includes: 50% of dividends allowed in determining the taxpayer’s tax- Conservation Law. Entire net income from non-subsidiary stocks held for investment; able (entire) net income in a prior year. for the current year and all succeeding interest from investment capi- tal; net capital years must be computed without any gain or loss from sales or exchanges of LINE 14 - SALES TAX REFUNDS AND deduction for such expenditures or for nonsubsidiary securities held for investment; CREDITS depreciation of such property. and income from cash if an election is made to This line relates to credits or refunds of treat cash as investment capital on line 3 of c) Deduct foreign dividend gross-up pur- Schedule D. Do not include any “gross-up” sales and compensating use tax paid on cer- suant to Section 78 of the IRC (see fed- tain machinery and equipment and/or cer- dividends pursuant to Section 78 of the IRC that eral Form 1120, Schedule C, line 15) to have been deducted in computing entire net tain services included in federal taxable the extent not deducted at line 9a. income. income for which a credit was claimed in a Entire net income does not include any prior year. The amount entered here amount treated as dividends pursuant Investment income includes interest received on should be the same as the amount entered to Section 78 of the IRC. a loan to a subsidiary if the subsidiary claims such interest as a NYC General or Banking at line 12 of Schedule A. (Refer to instruc- d) Regulated investment companies must Corporation Tax deduction on any return for tions for Schedule A, line 12.) deduct dividends paid to stockholders any period, and if such loan is evidenced by a on this line. There is no addback for current refunds of bond or other corpo- rate security. Do not sales tax paid on purchases of electricity or LINE 19 – ENTIRE NET INCOME include any capital loss which was not used in electric service used in the production of If line 18 is greater than line 8 so that the computing federal taxable income. certain tangible property for which the tax- amount on this line would be a loss, enter In computing investment income, subtract the payer took a credit in a prior period under zero (“0”) on this line, skip lines 22 through amount of deductions allowable in computing Adm. Code §11-604.15. 26, and enter zero (“0”) on line 27 of this entire net income which are directly or Schedule B and on line 1 of Schedule A. LINE 15 - FEDERAL JOBS CREDIT indirectly attributable to investment capital or That loss may be available as a carryover. investment income. Enter the portion of wages and salaries paid See instructions to Schedule B, Line 11, for LINE 21a - DIVIDENDS or incurred for the taxable year for which a more information. deduction is not allowed pursuant to the Enter dividends not excluded on line 10 except provisions of Section 280C of the Internal LINE 20 - SPECIAL ADJUSTMENTS for “gross-up” dividends pursuant to Section 78 Revenue Code because the federal targeted If, as a result of the adjustments on this line, of the IRC. This includes 50% of dividends jobs tax credit was taken. Attach Federal entire net income is a loss, enter zero (“0”) from nonsubsidiary corporations for which an Form 5884 or 8884 for Liberty Zone busi- on this line, skip lines 22 through 26, and exclusion was allowed on line 10 of this ness employees. The New York Liberty enter zero on line 27 of this Schedule B and schedule and 100% of dividends from stock not meeting the holding period require- ment set Zone business employee credit is only avail- line 1 of Schedule A. forth in Section 246(c) of the IRC; able for wages paid or incurred during the a) A corporation organized outside the current taxable year for work performed in United States must enter at line 20 its LINE 21d - INCOME FROM CASH 2002 or 2003. entire net income wherever earned, Enter income from cash on Schedule B, line including all income from sources out- LINE 16 - DEPRECIATION 21d, only if you have elected to treat cash as side the United States, less all allow- ADJUSTMENT investment capital and have entered the amount able deductions attributable thereto, thereof on Schedule D, line 3. Enter on line 16 the adjustments from Form not taken into account in computing NYC-399 and/or Form NYC-399Z, Schedule federal taxable income. Attach Sched- LINE 21f - DEDUCTIONS ATTRIBUTABLE C, line 8, Column B. See instructions for ule. See “FOREIGN AIRLINES” under TO INVESTMENT INCOME Schedule B, line 6(d). GENERAL INFORMATION, above. For more information, see Statement of Audit b) If you are, either separately or as a Procedure 96-1-GCT, Noninterest Expense LINE 17a - ROYALTY INCOME FROM member of a partnership, doing insur- Attribution, January 29, 1996 and Statement of Audit INTANGIBLES ance business as a member of the New Procedure 04-02-AU, GCT & UBT Treatment of Subtract income such as royalties from York Insurance Exchange described in Repurchase Agreements and Securities Lending and related members for the use of intangibles Section 6201 of the Insurance Law, Borrowing Transactions for Financial Services Firms as described in section 11-602.8(n) of the make the adjustment required under Regularly Engaged in Such Activities, September 24, Administrative Code. See "Highlights of Section 11-602.8(a)(6) and Section 11- 2004, available on the Department's website at Recent Tax Law Changes for Corporations." 602.8(b)(8) of the Admin. Code. nyc.gov/finance. Instructions for Form NYC-3L - 2006 Page 10

LINE 22 - APPORTIONED NEW the taxpayer is liable) at which a willing sell- Floor, New York, NY 10038, (3) from the YORK CITY NET OPERATING er, not compelled to sell, will sell and a willing department’s website under “Forms/Guides” LOSS DEDUCTION purchaser, not compelled to buy, will buy. at nyc.gov/finance, or (4) by calling (212) Corporations that report both business and The fair market value, on any date, of stocks, 504-4036. If the subsidiary or other issuer investment income must apportion any net bonds and other securities regularly dealt in was not doing business in New York City operating loss deduction on line 11 between on an exchange, or in the over-the-counter during the preceding year, the percentage is business income and investment income. market, is the mean between the highest and zero. The investment allocation percentage This is computed by multiplying the net lowest selling prices on that date. should be rounded to the nearest one hun- operating loss deduction by a ratio. The dredth of a percentage point. The value of all other property must be ratio is a fraction, the numerator of which included at the value shown on the taxpay- consists of investment income before SCHEDULE D, LINE 3 - CASH er’s books and records in accordance with deducting any net operating loss and the If you have both business and investment generally accepted accounting principles denominator of which is entire net income capital, you may elect to treat cash on hand (GAAP). (Refer to the instructions for Sched- before deducting any net operating loss. or on deposit as either business or invest- ule E, lines 1 through 5 for more information The ratio may be expressed as a percentage. ment capital. If you wish to elect to treat on computing average value.) Multiply the net operating loss deduction by cash as investment capital, you must the result. Enter this amount on line 22. In completing Schedules C and D, you may include it on this line. Otherwise, you will use the worksheet which appears below to be deemed to have elected to treat cash as LINE 23b – INVESTMENT INCOME TO determine the amount of liabilities indirect- business capital. You may not elect to treat BE ALLOCATED ly attributable to a particular asset. part of such cash as business capital and Enter the amount from line 23a. If the part as investment capital. You may not In column D of Schedules C and D on the revoke your election after it has been made. amount on line 23a is greater than the line for the asset in question, include the amount on line 19 or 20, enter the amount sum of the amount from line 15 of this work- SCHEDULE E from line 19 or 20. If the entry on line 23a is sheet and the amount of liabilities directly Computation and Allocation of Capital a loss, enter zero (“0”) on line 23b. attributable to that asset. LINES 1 THROUGH 5 - AVERAGE LINE 25 - ALLOCATED WORKSHEET VALUE OF TOTAL ASSETS INVESTMENT INCOME To determine the value of your assets for If the investment allocation percentage is Total liabilities from Sch. E, line 6, Col. C .. 1. business, investment and subsidiary capital zero, interest on bank accounts must be Liabilities directly attributable to: purposes, you must include real property and multiplied by the business allocation per- Subsidiary capital ...... 2. ______marketable securities at fair market value. centage. Investment capital ...... 3. ______The value of all other property must be SCHEDULE C Business capital ...... 4. ______included at the value shown on the taxpay- Subsidiary Capital and Allocation Add: lines 2, 3, and 4 ...... 5. ______er's books and records in accordance with Subtract: line 5 from line 1 ...... 6. ______generally accepted accounting principles - and - Enter amount from either: (GAAP). SCHEDULE D Sch. C, line 1, col. C less On Schedule E, line 1, enter the value of Investment Capital and Allocation amount from line 2 of worksheet . 7a.______total assets at the beginning of the year in OR column A and at the end of the year in col- Complete Schedule C if you have any sub- Sch. D, line 1, col. C less amount from line 3 of worksheet . 7b.______umn B. Enter the average value in column sidiaries. (Refer to the instructions for Sched- C. Attach a schedule showing the computa- ule B, lines 3 and 4 for the definition of a sub- Enter amount from Sch. E, line 5, col. C ...... tion of the average value. sidiary and subsidiary capital.) less amount from line 5 of worksheet 8. ______Divide: line 7a or 7b by line 8 ...... 9. ______% On line 2, enter the value of real property and Complete Schedule D if you have invest- marketable securities included in line 1. Multiply: line 6 by line 9 ...... 10.______ment capital. Investment capital is the aver- Enter on line 4 the fair market value of real Average value of a particular asset ...... 11.______age value of your investments in stocks, property and marketable securities. bonds, and other corporate or government Enter amount from either: securities, less liabilities, both long term Sch. C, line 1, col. C ...... 12a.______Average value is generally computed on a and short term, directly or indirectly attrib- OR quarterly basis. A more frequent basis Sch. D, line 1, col. C ...... 12b.______utable to investment capital. Investment (monthly, weekly or daily) may be used. capital does not include those stocks, bonds Divide: line 11 by line 12a or 12b ...... 13.______% Where the taxpayer’s usual accounting prac- or other securities that are held for sale to Enter amount from line 10 ...... 14.______tice does not permit computation of average value on a quarterly or more frequent basis, customers in the regular course of business Multiply: line 14 by line 13 ...... 15.______or that constitute subsidiary capital. Invest- a semiannual or annual basis may be used if no distortion of average value results. ment capital does not include interests in, or To determine the portion of subsidiary or obligations of, partnerships or other unin- investment capital to be allocated within the With respect to real property owned by corporated entities. (Refer to Title 19 Rules City, multiply the amount of subsidiary or the taxpayer and located within New of the City of New York Section 11-37 for the investment capital during the period cov- York City, the fair market value is pre- definition of investment capital.) ered by the return (column E) by the sumed to be not less than the estimated To determine the value of your assets for issuer’s allocation percentage (as defined in market value of the property on the Final business, investment and subsidiary capital the instructions for Schedule E, line 15). Assessment Roll of the City for the peri- purposes, you must include real property and This percentage may be obtained (1) from od covered by the return or the most marketable securities at fair market value. tax service publications, (2) by writing to: recent sales price, whichever is greater. The fair market value of any asset is the price NYC Department of Finance, Taxpayer Cor- LINE 6 - TOTAL LIABILITIES (without any encumbrance, whether or not respondence Unit, 59 Maiden Lane, 28th The liabilities deductible in computing each Instructions for Form NYC-3L - 2006 Page 11 type of capital are those liabilities (both long oughs of New York City: basis used for federal income tax purposes. and short term) that are directly or indirect- Manhattan - 100, 101, 102 However, you may make a one-time revoca- ly attributable to each type of capital. Use ble election to value real and tangible per- Bronx - 104 the same method of averaging as is used in sonal property owned at fair market value. Brooklyn - 112 determining average value of assets. You must make this election on or before Queens - 111, 113, 114, 116 the due date (or extended due date) for fil- Staten Island - 103 LINES 7 THROUGH 11 ing the taxpayer’s first General Corporation If the period covered by this report is other In addition, the five-digit zip codes 11004, Tax Return. This election will not apply to than a period of twelve calendar months, first 11005 and some addresses with a zip code of any taxable year with respect to which the follow the instructions on Schedule E to calcu- 11001 are in the borough of Queens. If the corporation is included in a combined report late preliminary amounts for lines 7 through zip code is 11001, call the US Postal Service unless each of the corporations included on 11. Before entering these amounts on Sched- at (516) 354-3297 to determine if the corpo- the combined report has made the election ule E multiply each amount by a fraction, the ration's address is within New York City. which remains in effect for such year. numerator of which is the number of months or major parts thereof included in such period A corporation is entitled to allocate part of LINE 1b - REAL ESTATE RENTED and the denominator of which is twelve. its business income and capital outside New The value of real property rented to the tax- York City if it carries on business both Enter on line 8, the amount from Schedule payer is eight times the gross rent payable inside and outside New York City and, for C, Column E, line 1. Subtract the amount on during the year covered by this return. taxable years beginning before July 1, 1996, line 8 from the amount on line 7 and enter Gross rent includes any amount payable as only if it has a “regular place of business” the difference on line 9 of this Schedule E. rent or in lieu of rent, such as taxes, repairs, outside the City. Otherwise, 100% of its If the amount on line 8 is less than zero etc., and, if there are leasehold improve- business income and capital must be allocat- because liabilities attributable to subsidiary ments made by or on behalf of the taxpayer, ed to New York City. If you did not carry on capital exceed the value of the assets report- the amount of annual amortization of such business both inside and outside New York ed in Schedule C, add the absolute amount cost. Do not include the rental of personal City, you must enter 100% at Schedule H, of the amount on line 8 to the amount on property on this line. line 5. If you carried on business both line 7 and enter the total on line 9. For inside and outside New York City, you must LINE 1d - TANGIBLE PERSONAL example, if the amount on Schedule E, line 8 complete Schedule G, parts I and II and PROPERTY OWNED is ($100) and the amount on Schedule E, Schedule H, business allocation percentage. Enter the average value of the tangible per- line 7 is $200, the amount on Schedule E, sonal property owned. The term “tangible line 9 should be $300. The business allocation percentage is gen- personal property” means corporeal personal If the amount on Schedule D, line 4 is less erally computed by means of a three factor property, such as machinery, tools, imple- than zero, enter zero (“0”) on line 10 of this formula: ments, goods and wares. Do not include Schedule E, enter the amount from line 9 on real and tangible personal property cash, shares of stock, bonds, notes, credits, line 11, and enter zero (“0”) on line 12. (including rented property) evidences of an interest in property, or evi- business receipts dences of debt. LINE 15 - ISSUER’S payroll ALLOCATION PERCENTAGE LINE 1e - TANGIBLE PERSONAL Each factor is computed by dividing the The percentage is determined by adding PROPERTY RENTED amount in column A (New York City together allocated New York City business, Enter the average value of the tangible per- amount) by the amount in column B (total investment and subsidiary capital, dividing sonal property you rented. The value of amount). The three resulting percentages the sum by total capital, and rounding to the rented tangible personal property is eight are added together, the sum is divided by 3 nearest one hundredth of a percentage point. times the gross rent payable during the rounded to the nearest one hundredth of a year covered by this return. The issuer's allocation percentage can- percentage point and the resulting business not be less than zero. Do not calculate allocation percentage is entered at Schedule Receipts Factor your issuer's allocation percentage by H, line 5. If one of the factors is missing, LINES 2a AND 2b - SALES OF adding the business, investment and the other two percentages are added and TANGIBLE PERSONAL PROPERTY subsidiary capital allocation percentages the sum is divided by two. If two of the fac- Enter on line 2a, column A, receipts in the and dividing that total by the number of tors are missing, the remaining percentage regular course of business from the sale of percentages. is the business allocation percentage. A fac- tangible personal property where shipments tor is not missing merely because its The issuer’s allocation percentage repre- are made to points within New York City. numerator is zero, but is missing if both its sents the amount of capital employed within Enter on line 2b, column B, receipts from all numerator and denominator are zero. New York City as compared to total capital sales of tangible personal property. employed everywhere. Every taxpayer using Example: A corporation owns no real or Form NYC-3L is required to compute its tangible personal property and rents no real LINE 2c - SERVICES PERFORMED issuer’s allocation percentage. property either within or without the City. Receipts from services performed within New York City are allocable to New York Combined filers must compute a combined The property factor being missing, the busi- City. All amounts received by the taxpayer issuer’s allocation percentage by using ness allocation percentage is computed by in payment for such services are allocable to amounts from Form NYC-3A. The com- adding the business receipts and payroll New York City regardless of whether the bined issuer’s allocation percentage should percentages and dividing the total by two. services were performed by employees or be entered on Schedule A of Form NYC-3A. LINES 1 AND 2 agents of the taxpayer, by subcontractors, SCHEDULE H Property Factor or by any other persons. It is immaterial Business Allocation When computing the property percentage, where such amounts were payable or where they actually were received. NOTE: Zip codes beginning with the fol- value real and tangible personal property lowing three-digits are within the five bor- owned by the corporation at the adjusted Commissions received by the taxpayer are Instructions for Form NYC-3L - 2006 Page 12 allocated to New York City if the services Do not include royalty income from related through the use of machinery, tools, appli- for which the commissions were paid were members that was subtracted on line 17 of ances or other similar equipment. A corpo- performed in New York City. If the taxpay- Schedule B. See "Highlights of Recent Tax ration is primarily engaged in manufactur- er’s services for which commissions were Law Changes for Corporations." ing if more than 50% of its gross receipts for paid were performed for the taxpayer by the year are attributable to manufacturing. salesmen attached to or working out of a LINE 2f - OTHER BUSINESS See Title 19 Rules of the City of New York New York City office of the taxpayer, the RECEIPTS §11-63(c)(4) for more information. taxpayer’s services will be deemed to have All other business receipts earned by the been performed in New York City. taxpayer within New York City are allocable If a taxpayer that is otherwise eligible to to New York City. Business receipts are not elect to use a double-weighted receipts fac- Corporations engaged in publishing newspa- considered to have been earned by the tax- tor is permitted or required to file on a com- pers or periodicals must allocate receipts payer in New York City solely by reason of bined basis with one or more other corpora- from advertising in such publications based the fact that they were payable in New York tions, the taxpayer may elect to use a dou- on the circulation of the publication in the City or actually were received in New York ble-weighted receipts factor only if the City compared to the total circulation. Corpo- City. Receipts from sales of capital assets requirements for the election would be met rations engaged in radio or television broad- (property not held by the taxpayer for sale if all the corporations included in the com- casting, whether by cable or other means, to customers in the regular course of busi- bined report were treated as a single corpo- must allocate receipts from broadcasting pro- ness) are not business receipts. ration. If a taxpayer included in a combined grams or commercial messages based upon report properly makes an election to use a the location of the audience for the broad- Do not include payments for the use of double-weighted receipts factor, each of the casts in the City compared to the total audi- intangibles from related members that were other corporations in the combined groups ence. For taxable years beginning on or after subtracted on line 17 of Schedule B. will be treated as having made a proper elec- January 1, 2002, corporations engaged in pub- The following are also business receipts and tion to use a double-weighted receipts factor. lishing newspapers or periodicals or in radio are allocable to New York City: or television broadcasting must allocate receipts from the sale of real property Payroll Factor receipts from subscriptions to such newspa- held by the taxpayer as a dealer for sale LINE 3a - WAGES AND SALARIES pers, periodicals and broadcast programs to customers in the regular course of based on the location of the subscriber. Employees within New York City include all business, provided the real property was employees, except general executive offi- Taxpayers principally engaged in the activi- situated in New York City cers, regularly connected with or working ty of air freight forwarding acting as princi- receipts from sales of intangible per- out of an office or place of business main- pal and like indirect air carriers are sonal property included in business tained by the taxpayer within New York required to determine receipts for purposes capital held by the taxpayer as a dealer City, irrespective of where the services of of the receipts factor arising from the activi- for sale to customers in the regular these employees were performed. ty from services performed within New course of business, provided the sales York City as follows: 100% of the receipts if General executive officers include the chair- were made in New York City or man, president, vice-president, secretary, both the pick up and delivery associated through a regular place of business in with the receipts are made in New York assistant secretary, treasurer, assistant trea- New York City. City and 50% of the receipts if either the surer, comptroller, and any other officer charged with the general executive affairs pickup or delivery associated with the LINE 2i - ADDITIONAL RECEIPTS of the corporation. An executive officer receipts is made in the City but not both. FACTOR whose duties are restricted to territory For taxable years beginning after 6/30/96, a Receipts from management, admin. or dis- either inside or outside of New York City is manufacturing business may elect to use a tribution services provided to a regulated not a general executive officer. investment company (RIC) must be allocat- double-weighted receipts factor. An elec- ed based upon the percentage of the RIC’s tion must be made on a timely filed original LINE 5 - BUSINESS ALLOCATION shareholders domiciled in New York City. return and is made by entering on line 2i PERCENTAGE (Attach rider showing computation.) the amount from line 2h. The election is Aviation Corporations and Corporations irrevocable except with special permission Operating Vessels. LINE 2d - RENTALS OF PROPERTY of the Commissioner under certain circum- Complete Schedule I (Business Allocation Receipts from rentals of real and personal stances. If you make an election, add the for Aviation Corporations and Corporations property situated in New York City are allo- percentages in column B and divide the Operating Vessels) and enter the percent- cable to New York City. These include all sum by 4 and enter the result on line 5 age from part 1 or 2 on Schedule H, line 5. amounts received by the taxpayer for the rounded to the nearest one hundredth of a use or occupation of property, whether or percentage point. If one or more of the SCHEDULE I not such property is owned by the taxpayer. other factors is missing, add the remaining Business Allocation for Aviation Corpora- percentage(s) and divide by the number of tions and Corporations Operating Vessels. LINE 2e - ROYALTIES percentages so added. If you do not wish Royalties from the use in New York City of Part 1 - Aviation Corporations to make the election, do not enter an patents or copyrights are allocable to New A taxpayer principally engaged in the con- York City. These include all amounts amount on line 2i. For purposes of this duct of aviation is required to determine the received by the taxpayer for the use of election, a corporation is engaged in a man- portion of the entire net income to be allocat- patents or copyrights, whether or not the ufacturing business if it is primarily ed within the City by multiplying its business patents or copyrights were originally issued engaged in the manufacturing and sale of income by a business allocation percentage to or are owned by the taxpayer. A patent tangible personal property. Manufacturing which is equal to the arithmetic average of or copyright is used in New York City to the includes assembly, working raw materials the three percentages from part 1, lines 2, 4 extent that activities thereunder are carried into wares, and giving new shapes, qualities and 6. or combinations to matter that has already on in New York City. Line 1 gone through some artificial process, “Aircraft arrivals and departures” means Instructions for Form NYC-3L - 2006 Page 13

the number of landings and takeoffs of the SCHEDULE J rate return, enter the information appear- aircraft of an aviation corporation and the Additional Required Information ing on the Federal 1120 filed with the IRS. number of air pickups and deliveries by All questions must be answered. such aircraft. Arrivals and departures solely PREPAYMENTS SCHEDULE for maintenance or repair, refueling (where Question 1 Enter the payment date and the amount of all no debarking or embarking of traffic In reporting the "NYC principal business prepayments made for this tax period. In the occurs), or arrivals and departures in the activity," give the one activity that accounts last column enter the Transaction ID Num- event of emergency situations should not for the largest percentage of total receipts. ber. Every corporate estimated payment to be included in computing this percentage. Total receipts means gross receipts plus all New York City has been stamped with a other income. State the broad field of busi- twelve digit Transaction ID Code. (The Line 3 ness activity as well as the specific product number can be found on the face of your can- “Revenue tons handled” by an aviation cor- or service (e.g., mining copper, manufactur- celled check.) Enter on line E the amount of poration at an airport means the weight, in ing cotton broad woven fabric, wholesale any overpayment from the prior year that tons, of revenue passengers (at two hun- meat, retail men’s apparel, export or import you elected to credit toward this year’s tax. dred pounds per passenger) and revenue chemicals, real estate rental, or real estate Do not include this amount on lines B cargo first received either as originating or operation of motel). through D. connecting traffic, or finally discharged by such corporation at such airport. Question 2 CUSTOMER ASSISTANCE If the corporation is included in a consoli- For interest calculations and account infor- Line 5 dated federal return, give the name of the “Originating revenue” means revenue to mation, contact Customer Assistance at common parent corporation filing the con- (212) 504-4036, Monday through Fri- an aviation corporation from the trans- solidated return. portation of revenue passengers and rev- day, 8:30am to 5:30 pm. enue property first received by such cor- Question 3 You can speak to a Customer Assistance poration at an airport as either originat- If the corporation is included in a New York Representative between the hours of 9:00 ing or connecting traffic. City Combined General Corporation Tax am and 4:30 pm. Return, give the name of the corporation Line 8 that is a member of the combined group You can also visit our Internet website at Transfer the percentage from part 1, line and owns or controls, directly or indirectly, nyc.gov/finance 8 to Schedule H, line 5. substantially all of the capital stock of each Part 2 - Corporations Operating Vessels other member of the combined group. If no PRIVACY ACT NOTIFICATION A taxpayer principally engaged in the opera- corporation that is part of the combined The Federal Privacy Act of 1974, as amend- tion of vessels is required to determine the group satisfies this requirement, give the ed, requires agencies requesting Social portion of entire net income to be allocated name of the person or corporation that Security Numbers to inform individuals within the City by multiplying its business owns or controls, directly or indirectly, sub- from whom they seek this information as income by a business allocation percentage stantially all of the capital stock of all the to whether compliance with the request is determined by dividing the aggregate num- members of the combined group. voluntary or mandatory, why the request is being made and how the information will ber of working days of the vessels it owns Question 10 be used. The disclosure of Social Security or leases in territorial waters of the City dur- If you answer “yes” to question a, attach a Numbers for taxpayers is mandatory and is ing the period covered by its report by the separate sheet providing street address, bor- required by section 11-102.1 of the Admin- aggregate number of working days of all the ough, block and lot number of such proper- istrative Code of the City of New York. vessels it owns or leases during the period. ty. If you answer “yes” to question b, c or d, Such numbers disclosed on any report or Complete part 2. complete questions 11 and 12. return are requested for tax administration Line 1 A controlling interest in the case of a corpo- purposes and will be used to facilitate the “Working days” means days during ration means: processing of tax returns and to establish which a vessel is sufficiently manned for 50% or more of the total combined vot- and maintain a uniform system for identify- the carriage of persons or cargo or during ing power of all classes of stock of such ing taxpayers who are or may be subject to which it has cargo aboard. The working corporation; or taxes administered and collected by the time in New York City territorial waters 50% or more of the total fair market Department of Finance, and, as may be and the working time everywhere shall value of all classes of stock of such cor- required by law, or when the taxpayer be computed for each vessel in hours and poration. gives written authorization to the Depart- minutes. At the end of the year, such ment of Finance for another department, Question 13 time shall be totalled for all vessels and person, agency or entity to have access If you answer “yes” to question 13, no por- the sum converted into days. In lieu of (limited or otherwise) to the information tion of the income, gain, loss, deduction or records indicating actual time in New contained in his or her return. York City territorial waters, such time capital of a QSSS is permitted to be included may be computed on the basis of records in a separate report filed by the S corpora- showing the number of times the tion parent. The QSSS must file a separate Ambrose Light Station was passed on the general corporation tax report. See Finance way in and out of port. Memorandum 99-3. Line 2 SCHEDULE K Transfer the percentage from part 2, line Federal Return Information 2 to Schedule H, line 5. If the corporation files as a member of a federal consolidated group, enter the infor- mation as it appears on its proforma feder- al return. If the corporation files a sepa- NYC-3L - 2006 Instructions