FINAG NCE Instructions for Form NYC-3L NEW YORK General Corporation Tax Return For fiscal years beginning in 2007 or for calendar year 2007

ighlights of Recent Tax Law Changes for Corporations HG For tax years beginning in 2007, taxpayers with (1) gross income, as defined under §61 of the Internal Revenue Code, of less than $250,000, (2) a business allocation of 100%, and (3) no investment capital or income, or subsidiary capital or income are exempt from having to determine the alternative tax on capital and the alternative tax on entire net income plus compensation. See section 11-604(1)(I)of the Administrative Code of the City of New York, as added by Chapter 491 of the Laws of 2007. If a taxpayer meets these criteria and is otherwise eligible to file Form NYC 4-S, the taxpayer may be eligible to use new Form NYC-4S-EZ. To determine if you can use Form NYC-4S-EZ, see the instructions for that new form. Taxpayers who meet the three criteria noted above but are not eligible to file a Form NYC-4S-EZ must use Form NYC-3L but need not calculate the alternative tax on capital and the alternative tax on entire net income plus compensation. For purposes of computing entire net income for city purposes, corporations, other than New York State S corporations, that meet the three requirements listed above, may elect to use the sum of New York State entire net income and any deductions taken for the taxable year in computing federal taxable income for General Corporation Tax paid or accrued. G For tax years beginning in 2007, the alternative tax measured by entire net income plus compensation is determined by using 26.25 percent, as a multiplier, instead of 30 percent. See Chapter 491 of the Laws of 2007. G This year’s form has been modified to make it easier for taxpayers to request the consent of the Department of Finance to the use an alternative business allocation method. Taxpayers simply check the box the appropriate box in of Schedule H, complete Schedule H, Part 3, pay the tax based on that Schedule, and attach a rider, as further explained in the instructions to Schedule H. G 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. G 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. G For tax years beginning on or after January 1, 2004, in determining entire net income (“ENI”) of taxpayers, other than eligible farm - ers (for purposes of the New York State farmers' school tax credit), the amount allowed as a deduction with respect to a sport utility vehicle 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 de - duction is calculated as of the date the SUV was actually placed in service and not as of September 10, 2001. See, Finance Memorandum 07-3 dated September 24, 2007 “Application of IRC Section 280F Limits to Sports Utility Vehicles” for more infor - mation. G 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. G 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 Chap - ter 686 of the Laws of 2003, Part M. G 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 purposes 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 partner - ship, its partners will not be subject to the New York City Utility Tax on their distributive share of the income of any such entity. Fi - nally, 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. G Effective for tax years ending after September 10, 2001, for purposes of the New York City Unincorporated Business Tax, General Corporation Tax and Banking Corporation Tax, the City has "decoupled" from the Federal bonus depreciation 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 calculated as if the property was placed in service prior to September 11, 2001. See, Finance Mem - orandum 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. Instructions for Form NYC-3L - 2007 Page 2 GENERAL INFORMATION it for the last year beginning before 2003. Ch. 62, Pt. G3, sec. 6 of the Laws of 2003. Ad. Similarly, new Ad. Code §11-640(i) permits a S CORPORATIONS Code §11-640 again was amended in 2004 to qualifying corporation formed on or after Jan - An S Corporation is subject to the General require a corporation that was in existence uary 1, 2003 and before January 1, 2004 to Corporation Tax and must file either Form prior to January 1, 2004 to be taxed in years make a comparable election for its first tax NYC-4S, NYC-4S-EZ or NYC-3L, whichever beginning after 2003 and before 2006 under year beginning after 2002 and before 2004. is applicable. See Finance Memorandum 99- the tax, either GCT or BCT, that applied to it Ch. 62, Pt. G3, sec. 6 of the Laws of 2003. 3 for information regarding the treatment of for the last year beginning before 2004. Ch. qualified subchapter S subsidiaries. 60, Pt.G, §6 of the Laws of 2004. New Ad. Code §11-640(j) similarly permits a qualifying corporation formed on or after Jan - CORPORATION DEFINED Code 11-640 was also amended in 2006 to re - uary 1, 2004 and before January 1, 2006 to Unincorporated entities electing to be treated quire a corporation that was in existence prior make a comparable election for its first tax - as associations taxable as corporations for fed - to January 1, 2006 to be taxed in years begin - able year beginning after 2003 and before eral income tax purposes pursuant to the ning after 2005 and before 2008 under the tax, 2006. Ch. 60, Pt. G, §6 of the Laws of 2004. “check-the-box” rules under IRC §7701(a)(3) either the GCT or the BCT that applied to it Also, new Ad. Code § 11-640(k) permits a are treated as corporations for City tax purposes for the last year beginning before 2006. Ad. qualifying corporation formed on or after Jan - and are not subject to the Unincorporated Busi - Code § 11-640(k), as added by Ch. 62, Pt. I, uary 1, 2006 and before January 1, 2008 to ness Tax. Eligible entities having a single owner of the Laws of 2006. make a comparable election for its first tax - disregarded as a separate entity under the Newly-formed Corporations: able year beginning after 2005 and before “check-the-box” rules and treated as either a sole 2008. Ad. Code § 11-640(k), as added by Ch. proprietorship or a branch for federal tax pur - A corporation formed on or after January 1, 62, Pt. I, of the Laws of 2006. poses will be similarly treated for City tax pur - 2000, and before January 1, 2001, was per - poses. See Finance Memorandum 99-1 for mitted to elect to be subject to either the GCT Combined Filing under Transitional Provi - additional information. or BCT for its first taxable year beginning sions after 1999 and before 2001 provided either: G TRANSITIONAL PROVISIONS the corporation was a financial subsidiary, or A bank holding company doing business in the RELATING TO THE ENACTMENT G City that, during a taxable year beginning after OF THE GRAMM-LEACH-BLILEY at least 65% of the corporation's voting 1999 and before 2008, registers for the first ACT OF 1999: stock is owned or controlled, directly or in - time as a bank holding company under the directly, by a financial holding company, Bank Holding Company Act of 1956, as Existing Corporations: and the corporation is principally engaged amended, and elects to be a financial holding in activities described in sections 4(k) 4 or company, may file a combined report under Except for a banking corporation described in 4(k)5 of the Bank Holding Company Act paragraphs (1) through (8) of Ad. Code sec - the BCT for such year with one or more bank - of 1956, as amended, or described in reg - ing corporations doing business in the City tion 11-640(a) (see, Form NYC-1, Instructions ulations promulgated under that section. "Who Must File" items A through C), for tax - and 65% or more owned or controlled, directly able years beginning after 1999 and before A financial subsidiary is a corporation whose or indirectly, by that bank holding company 2001, a corporation that was in existence be - voting stock is 65% or more owned or con - without seeking permission from the Com - fore January 1, 2000 was taxable under the trolled directly or indirectly, by a banking cor - missioner. In addition, such bank holding same tax (either NYC General Corporation poration (including a corporation that has company may, without seeking the Commis - Tax (GCT) or NYC Banking Corporation Tax elected to be subject to the BCT under these sioner's permission: (i) include in a combined (BCT)) as applied to it for its last taxable year transition rules) described in paragraphs (1) report filed for a subsequent year beginning beginning before January 1, 2000. For this through (3) of Ad. Code section 11-640(a) and after 1999 and before 2008 any eligible bank - purpose, a corporation was considered to have described in 12 USCS section 24a or section ing corporation that, for the first time in such been subject to a tax prior to 2000 if it was not 46 of the Federal Deposit Insurance Act. subsequent year, either is doing business in the a taxpayer but was properly included in a com - City or meets the above ownership require - A financial holding company is a corporation bined report filed by another corporation ments; and (ii) eliminate from a combined re - that has filed with the Federal Reserve Board under that tax. A corporation that was in exis - port filed in any such subsequent year any a written declaration of its election to be a fi - tence prior to 2000 but first became subject to corporation no longer meeting the require - nancial holding company under section 4(i) of tax after 2000 is considered to have been sub - ments for combination in such subsequent the Bank Holding Company Act of 1956, as ject to whichever tax, GCT or BCT, would year. Except as provided above, the permis - amended, provided the Federal Reserve Board have applied based on its activities had it been sion of the Commissioner is required for any has not found that election to be ineffective. a taxpayer prior to 2000. such bank holding company to cease to file on a combined basis, elect to file on a combined An election by a newly-formed corporation Ad. Code §11-640 was amended to similarly basis or make any changes to the composition under this provision must have been made require a corporation that was in existence of the group of corporations filing on a com - on or before the due date for filing its re - prior to January 1, 2001 to be taxed in years bined basis for any subsequent year. Ad Code turn for the applicable year, including ex - beginning after 2000 and before 2003 under §11-646(f)(2)(iv). tensions, and was made by filing the return the same tax, either GCT or BCT, that applied required under the appropriate tax. The to it for the last year beginning before 2001. CORPORATIONS REQUIRED election is irrevocable. Ch. 383, Laws of 2001, Part P, §8. TO FILE FORM NYC-3L A corporation (as defined in Section 11-602.1 Ad. Code 11-640 was further amended to re - Ad. Code §11-640(h) permits a qualifying cor - of the New York City Administrative Code) quire a corporation that was in existence prior poration formed on or after January 1, 2001 doing business, employing capital, or owning to January 1, 2003 to be taxed in years begin - and before January 1, 2003 to make a compa - or leasing property in a corporate or organized ning after 2002 and before 2004 under the rable election for its first tax year beginning capacity, or maintaining an office in New York same tax, either GCT or BCT, that applied to after 2000 and before 2003. City must file Form NYC-3L and cannot use Instructions for Form NYC-3L - 2007 Page 3 Form NYC-4S if: 602.8(n) either to add back payments for operation of marine vessels whose activ - 1) it carries on business both inside and out - the use of intangibles made to related mem - ities in the City are limited exclusively to side New York City; bers or subtract such payments from related the use of property in interstate or foreign 2) it has subsidiary and/or investment capital; members. See "Highlights of Recent Tax commerce. 3) it claims an optional deduction for ex - Law Changes for Corporations;" or m) Foreign corporations that are exempt penditures relating to air pollution control 17) It claims a credit for certain costs incurred under the provisions of Public Law 86- facilities, as provided in Section 11- in the production of qualified films and tel - 272. See 19 RCNY Section 11 -04 (b)(11). 602.8(g) of the NYC Admin. Code; evision shows, as provided in Section 11- n) For taxable years beginning on or after Jan - 4) it claims a modification with respect to 604.20 of the NYC Administrative Code. uary 1, 1998, an alien corporation if its ac - gain arising from the sale of certain prop - tivities in the City are limited solely to The following are NOT required to file a erty, as provided in Section 11-602.8(h) investing or trading in stocks and securities General Corporation Tax Return: of the NYC Admin. Code; for its own account within the meaning of 5) it is a real estate investment trust quali - a) A dormant corporation that did not at any IRC §864(b)(2)(A)(ii) or investing or trad - fied under Sections 856 and 857 of the In - time during its taxable year engage in any ing in commodities for its own account ternal Revenue Code (see section activity or hold title to real property lo - within the meaning of IRC §864(b)(2)(B)(ii) 11-603.7 of the NYC Admin. Code); cated in New York City. or any combination of these activities. NYC 6) it entered into a “safe harbor” lease transac - b) A nonstock corporation organized and Admin. Code §11-603.2-a . tion under provisions of the Internal Rev - operated exclusively for nonprofit pur - enue Code as it was in effect for agreements poses and not engaged in substantial NOTE: A corporation that has an officer, em - entered into prior to January 1, 1994; commercial activities that has been ployee, agent or representative in the City and 7) it claims a credit for sales and compen - granted an exemption by the Department that is not subject to the General Corporation Tax sating use taxes paid in the current year of Finance. is not required to file a Form NYC-3L or NYC- or is required to adjust its current General c) Corporations subject to taxation under 4S or NYC-4S-EZ but must file a Form NYC- Corporation Tax as a result of credits Part 4 of Subchapter 3 of Chapter 6, Title 245 (Section 11-605 of the NYC Admin. Code). claimed in prior years. See the instruc - 11 (Banking Corporations) or under tions to Form NYC-9.5 and the instruc - Chapter 11, Title 11 (Utility Corpora - WHEN AND WHERE TO FILE tions for Schedule B, lines 6a and 14 for tions) of the NYC Admin. Code are not The due date for filing is on or before March more information. required to file General Corporation Tax 17, 2008, or, for fiscal year taxpayers, on or 8) it claims a credit for increased real estate returns. However, corporations that are before the 15th day of the 3rd month following tax payments made to a landlord in con - subject to tax under Chapter 11 as ven - the close of the fiscal year. nection with the relocation of employ - dors of utility services are subject to the Special short-period returns: If this is NOT ment opportunities to New York City, as General Corporation Tax in accordance a final return and your Federal return covered provided in Section 11-604.13 of the with section 11-603.4 of the NYC Admin. a period of less than 12 months as a result of NYC Admin. Code; Code and must file a return. your joining or leaving a Federal consolidated 9) it claims a credit for certain costs or ex - d) A limited profit housing corporation or - group or as a result of a Federal IRC §338 penses incurred in relocating employment ganized and operating pursuant to the election, this return generally will be due on opportunities to New York City, as pro - provisions of Article Two of the Private the due date for the Federal return and not on vided in Sections 11-604.14, 11-604.17, Housing Finance Law. the date noted above. Check the box on the 11-604.17-b or 11-604.19 of the NYC e) Insurance corporations. front of the return. Admin. Code. See Instr. to Forms NYC- f) A Housing Development Fund Company 9.5, NYC-9.6 and NYC-9.8; (HDFC) organized and operating pur - Returns with remittances: 10) it claims a modification with respect to suant to the provisions of Article Eleven NYC Department of Finance wages and salaries disallowed as a de - of the Private Housing Finance Law. P.O. Box 5040 duction for federal income tax purposes g) Organizations organized exclusively for Kingston, NY 12402-5040 (work incentive/jobs credit provisions), as the purpose of holding title to property as provided in Section 11-602.8(a)(7) of the described in Sections 501(c)(2) or (25) of Returns claiming refunds: NYC Admin. Code; the Internal Revenue Code. NYC Department of Finance 11) either separately or as a member of a part - h) An entity treated as a Real Estate Mort - P.O. Box 5050 nership, it is engaged in an insurance gage Investment Conduit (REMIC) for Kingston, NY 12402-5050 business as a member of the New York federal income tax purposes. (Holders of Insurance Exchange; interests in a REMIC remain taxable on All others: 12) it is a Regulated Investment Company as such interests or on the income thereon.) NYC Department of Finance defined in Section 851 of the Internal i) Corporations principally engaged in the P.O. Box 5060 Revenue Code (see section 11-603.7 of conduct of a ferry business and operating Kingston, NY 12402-5060 the NYC Admin. Code); between any of the boroughs of the City 13) it is a Domestic International Sales Cor - under a lease granted by the City. AUTOMATIC EXTENSIONS poration (DISC) or a Foreign Sales Cor - j) A corporation principally engaged in the An automatic extension of six months for fil - poration; conduct of an aviation, steamboat, ferry ing this return will be allowed if, by the origi - 14) it claims a credit for New York City Un - or navigation business, or two or more nal due date, the taxpayer files with the incorporated Business Tax paid by a part - such businesses, provided that all of the Department of Finance an application for au - nership in which it is a partner as capital stock of the corporation is owned tomatic extension on Form NYC-6 and pays provided in Section 11-604.18 of the by a municipal corporation of New York. the amount properly estimated as its tax. See NYC Admin. Code; k) Bank holding corporations filing on a the instructions for Form NYC-6 for informa - 15) it will be included in a combined report combined basis in accordance with Sec - tion regarding what constitutes a proper esti - (Form NYC-3A); tion 11-646(f) of the NYC Admin. Code. mated tax for this purpose. Failure to pay a 16) it is required by Ad. Code section 1- l) Corporations principally engaged in the Instructions for Form NYC-3L - 2007 Page 4 proper estimated amount will result in a denial the allowable New York City depreciation de - the next date for an installment payment. The of the extension. A taxpayer with a valid six- duction if a federal ACRS or MACRS depreci - procedure is as follows: month automatic extension filed on Form ation deduction is claimed for certain property G Complete the amended schedule of the no - NYC-6 may request up to two additional placed in service after December 31, 1980. tice of estimated tax due. (This is your quar - three-month extensions by filing Form NYC- FORM NYC-399Z - Depreciation Adjustments terly notice for payment of estimated tax.) 6.1. A separate Form NYC-6.1 must be filed G for each additional three-month extension. for Certain Post 9/10/01 Property may have to Mail the bottom portion of the notice be filed by taxpayers claiming depreciation de - along with your check to: Mail Forms NYC-6 and 6.1 to the address in - ductions for certain sport utility vehicles or dicated on those forms. "qualified property," other than "qualified New NYC Department of Finance P.O. Box 5100 York Liberty Zone property" and "qualified Kingston, NY 12402-5100 FINAL RETURNS New York Liberty Zone leasehold improve - If a corporation ceases to do business in New ments" placed in service after September 10, If the amendment is made after the 15th day of York City, the due date for filing a final General 2001 for Federal or New York State tax pur - the 9th month of the taxable year, any increase in Corporation Tax Return is the 15th day after the poses. See, Finance Memorandum 07-3 dated tax must be paid with the amendment. due date of the cessation (Section 11-605 of the September 24, 2007 “Application of IRC §280F NYC Admin. Code). Corporations may apply Limits to Sports Utility Vehicles” and Finance For more information regarding estimated tax for an automatic six-month extension for filing Memorandum 02-3 (Revised) "New York City payments and due dates, see Form NYC-400. a final return by filing Form NYC-6F, Applica - Tax Consequences of Certain Retroactive Fed - tion for Extension to File Final Return. Any tax eral and New York Tax Law Changes". PENALTY FOR UNDERSTATING TAX due must be paid with the final return or the ex - If there is a substantial understatement of tax tension, whichever is filed earlier. FORM NYC-400 - Declaration of Estimated (i.e., if the amount of the understatement ex - Tax by General Corporations must be filed by ceeds the greater of 10% of the tax required to ACCESSING NYC TAX FORMS any corporation whose New York City tax li - be shown on the return or $5,000) for any tax - By Computer - Download forms from the Fi - ability can reasonably be expected to exceed able year, a penalty will be imposed equal to nance website at nyc.gov/finance $1,000 for the 2008 calendar year or fiscal 10% of the amount of the understated tax. year beginning in 2008. By Phone - Order forms through Finance’s The amount on which you pay the penalty can form ordering service, by calling 212-504- FORM NYC-3360 - General Corporation Tax be reduced by subtracting any item for which 4035, and receive forms in the mail. Report of Change in Tax base made by the In - (1) there is or was substantial authority for the ternal Revenue Service and/or New York State way in which the item was treated on the re - OTHER FORMS YOU MAY BE Department of Taxation and Finance is used turn, or (2) there is adequate disclosure of the REQUIRED TO FILE for reporting adjustments in taxable income or relevant facts affecting the item’s tax treatment other basis of tax resulting from an audit of FORM NYC-6 OR NYC-6F - Application for on the return or in a statement attached to the your federal corporate tax return and/or State Automatic Extension for General Corporation return. audit of your State corporate tax return. Tax is an application for a six-month extension CHANGE OF BUSINESS of time to file a tax return. File it on or before FORM NYC-CR-A - Commercial Rent Tax INFORMATION the due date of the return. If the corporation Annual Return must be filed by every tenant If there have been any changes in your busi - ceased to be subject to tax during 2007, use that rents premises for business purposes in ness name, identification number, billing or Form NYC-6F to request an extension to file Manhattan south of the center line of 96th mailing address or telephone number, com - a final return. Street and whose annual or annualized gross plete Form DOF-1, Change of Business Infor - rent for any premises is at least $200,000. (Ef - FORM NYC-6.1 - Application for Additional Ex - mation. You can obtain this form by calling fective June 1, 2001.) tension for General Corporation Tax is a request Taxpayer Assistance at (212) 504-4036. You for an additional three months of time to file a re - FORM NYC-RPT - Real Property Transfer can also visit our Internet website at the fol - turn. A corporation with a valid six-month ex - Tax Return must be filed when the corporation lowing address: nyc.gov/finance. tension is limited to two additional extensions. acquires or disposes of an interest in real prop - erty, including a leasehold interest; when there FOREIGN AIRLINES FORM NYC-8 - General Corporation Tax is a partial or complete liquidation of the cor - Retroactive to tax years beginning on or after Claim for Credit or Refund is used to claim a poration that owns or leases real property; or January 1, 1989, foreign airlines that have a refund of General Corporation Tax. Please when there is a transfer of a controlling eco - foreign air carrier permit pursuant to Section note that it no longer can be used to file an nomic interest in a corporation, partnership or 402 of the Federal Aviation Act of 1958 are amended return. trust that owns or leases real property. permitted to exclude from entire net income the following items: FORM NYC-222 - Underpayment of Esti - G mated Tax by Corporations will help a corpo - ESTIMATED TAX all income from the international opera - ration determine if it has underpaid an If the tax for the period following that covered tion of aircraft, even though effectively estimated tax installment and, if necessary, by this return is expected to exceed $1,000, a connected with the conduct of a trade or compute the penalty due. declaration of estimated tax and installment business in the United States G payments are required. Form NYC-400 is to income from outside the United States that FORM NYC-245 - Activities Report of Cor - be used for this purpose. If the tax on this re - is derived from the operation of aircraft porations must be filed by a corporation that turn exceeds $1,000, Form NYC-400 will au - G has an officer, employee, agent or representa - tomatically be mailed to you. certain passive income derived from tive in the City but disclaims liability for the sources outside the United States If, after filing a declaration, your estimated tax General Corporation Tax. The above exclusions are permitted provided substantially increases or decreases as a result that the foreign country in which the airline is FORM NYC-399 - Schedule of New York City of a change in income, deduction or allocation, based and organized grants a similar or greater Depreciation Adjustments is used to compute you must amend your declaration on or before Instructions for Form NYC-3L - 2007 Page 5 exemption from tax with respect to United It does not apply to the firm, if any, shown in ule A. The amount entered on line 6 of Sched - States airlines. For more information, see that section. By checking the "Yes" box, you ule A should be the larger of line 1 or line 4. Admin. Code Section 11-602.8 (c-1). are authorizing the Department of Finance to Because these taxpayers have a 100% business call the preparer to answer any questions that allocation percentage and are not subject to the For taxable years beginning on or after Janu - may arise during the processing of your return. tax on capital, these taxpayers also will not be ary 1, 1994, property, receipts and wages, Also, you are authorizing the preparer to: required to complete Schedules E or G of this salaries or other personal service compensa - G form. tion directly attributable to the generation of Give the Department any information income described above not included in entire missing from your return, In addition, for purposes of computing the G net income under Admin. Code Section 11- Call the Department for information about tax based on entire net income, eligible cor - 602.8 (c-1) are excluded when calculating the the processing of your return or the status porations (other than New York State S cor - business allocation percentage. See Admin. of your refund or payment(s), and porations) can elect to use the sum of New Code Section 11-604.3 (a) (6). G York State entire net income, as determined Respond to certain notices that you have under New York State Law §208, and any Also for taxable years beginning on or after shared with the preparer about math er - deductions taken for the taxable year in com - January 1, 1994, in calculating the tax on busi - rors, offsets, and return preparation. The puting federal taxable income for General ness and investment capital of foreign airlines, notices will not be sent to the preparer. Corporation Tax paid or accrued, rather than assets (and the liabilities directly or indirectly report the New York City specific modifica - You are not authorizing the preparer to re - attributable to those assets) employed in gen - tions normally required to compute New ceive any refund check, bind you to anything erating the income excluded from entire net York City taxable income. Corporations (including any additional tax liability), or oth - income are excluded. (See Admin. Code Sec - making that election should enter the New erwise represent you before the Department. tions 11-602.4 and 11-602.6.) York State entire net income on Line 1 of The authorization cannot be revoked, how - Schedule B, skip lines 2 through 5a of WIRELESS TELECOMMUNICATIONS ever, the authorization will automatically ex - Schedule B, enter the amount of the General SERVICE PROVIDERS pire no later than the due date (without regard Corporation Tax deducted on the federal re - Effective for tax periods beginning on and to any extensions) for filing next year's return. turn on line 5b of Schedule B, skip lines 6 after August 1, 2002, entities who receive Failure to check the box will be deemed a through 18 and enter the sum of Line 1 and eighty percent or more of their gross receipts denial of authority . line 5b on line 19. from charges for the provision of mobile telecommunications services to customers will SPECIFIC INSTRUCTIONS Computation of Tax be taxed as if they were regulated utilities for purposes of the New York City Utility Tax and Check the box marked "yes" on page 1 of this LINES 2 a AND 2 b - TAX ON General Corporation Tax. Thus, such entities form if, on your federal return: (i) you reported ALLOCATED CAPITAL will be subject to only the New York City Util - bonus depreciation and/or a first year expense de - For cooperative housing corporations as de - ity Tax. The amount of gross income subject duction under IRC §179 for "qualified New York fined in the Internal Revenue Code, the rate of to tax has been amended to conform to the Liberty Zone property," "qualified New York Lib - tax on capital is 4/10 mill (.04%) instead of 1 Federal Mobile Telecommunications Sourc - erty Zone leasehold improvements," or "qualified 1/2 mills (.15%). For all other corporations ing Act of 2000. In addition, for tax years be - Resurgence Zone property," regardless of subject to tax, including housing companies ginning on and after August 1, 2002, partners whether you are required to file form NYC-399Z, organized and operating pursuant to Article in any such entity will not be subject to Gen - (ii) you claimed a federal targeted jobs credit for Four of the Private Housing Finance Law eral Corporation Tax on their distributive Liberty Zone business employees, or (iii) you re - (other than cooperative housing corporations), share of the income of any such entity. placed property involuntarily converted as a result the rate of tax on capital is 1 1/2 mills (.15%). of the attacks on the World Trade Center during SIGNATURE the five (5) year extended replacement period. Enter the amount from Schedule E, line 14 in This report must be signed by an officer au - You must attach Federal forms 4562, 4684, 4797 the left-hand column of line 2a or line 2b. thorized to certify that the statements con - and 8884 to this return. See instructions for Multiply by the applicable percentage and tained herein are true. If the taxpayer is a Schedule B, lines 6d, 15, and 16 for more infor - enter the tax in the right-hand column. If that publicly-traded partnership or another unin - mation. amount exceeds $350,000, enter $350,000. corporated entity taxed as a corporation, this See instructions for Schedule E, lines 7-11 for return must be signed by a person duly au - SCHEDULE A information on how to calculate capital for thorized to act on behalf of the taxpayer. short tax years. NOTE - ELIGIBLE SMALL FIRMS TAX PREPARERS For tax years beginning in 2007, taxpayers are LINE 3 - ALTERNATIVE TAX Anyone who prepares a return for a fee must exempt from having to determine the alterna - Every taxpayer, other than a real estate invest - sign the return as a paid preparer and enter his tive tax on capital and the alternative tax on the ment trust or regulated investment company, or her Social Security Number or PTIN. See entire net income plus compensation if they or taxpayers exempt under section 11- Finance Memorandum 00-1. Include the com - have: (1) gross income, as defined under § 61 of 604(1)(I) of Administrative Code as described pany or corporation name and Employer Iden - the Internal Revenue Code, of less than above, must calculate its alternative tax and tification Number, if applicable. $250,000, (2) a 100% business allocation per - enter its computation on line 3. To compute the centage, and (3) no investment capital or in - alternative tax, measured by entire net income Preparer Authorization: If you want to allow come or subsidiary capital or income. See plus compensation, you may use the work - the Department of Finance to discuss your re - section 11-604(1)(I) of Administrative Code, as sheet on page 6 of Form NYC-3L. Profes - turn with the paid preparer who signed it, you added by L. 2007, ch. 491. Those taxpayers are sional corporations must calculate the must check the "yes" box in the signature area subject to tax on the larger of the tax on entire alternative tax. of the return. This authorization applies only to net income and fixed-dollar minimum tax. the individual whose signature appears in the Therefore, taxpayers meeting these criteria, For special treatment of “Eligible Small "Preparer's Use Only" section of your return. may skip Lines 2a, 2b, 2c and line 3 of Sched - Firms” see instructions above. Instructions for Form NYC-3L - 2007 Page 6 ADDITIONAL INFORMATION FOR 1) Relocation and employment assistance LINE 17 a - LATE PAYMENT - INTEREST COMPUTING THE ALTERNATIVE TAX. program (REAP) credit (Attach Form If the tax is not paid on or before the due date NYC-9.5.) (determined without regard to any extension ALTERNATIVE TAX WORKSHEET of time), interest must be paid on the amount 2) Sales and compensating use taxes (Refer a) Line 1- Net Income. Enter the amount on of the underpayment from the due date to the to instructions on Form NYC-9.5 and at - Schedule B, line 19 or 20. If the amount date paid. For information as to the applica - tach form.) entered on Schedule B line 19 is 0 because ble rate of interest, call: (212) 504-4036 or the amount that would have been entered NOTE: This credit may only be taken for see the Department of Finance website at: on that line would have been as a loss (i.e. sales tax paid in the current year for certain http://home2.nyc.gov/html/dof/html/busi - the amount on Schedule B, line 18 was purchases in certain prior periods. ness/business_tax_interest.shtml. greater than the amount on Schedule B, line 8), enter the amount of this loss on LINE 8 b – CREDITS FROM LINE 17 b - LATE PAYMENT OR LATE Line 1. FORM NYC-9.8 FILING/ADDITIONAL CHARGES b) Line 2 - Salaries. For taxable years begin - Enter on this line the credit against the General a) A late filing penalty is assessed if you ning on or after 7/1/99 no portion of offi - Corporation Tax for the new Lower Manhattan fail to file this form when due, unless the cers salaries and other compensation is relocation and employment assistance program. failure is due to reasonable cause. For included in the alternative tax base. (Attach Form NYC-9.8.) every month or partial month that this Notwithstanding the foregoing, include in form is late, add to the tax (less any pay - LINE 9 a - CREDITS FROM the alternative tax computation 100% of ments made on or before the due date) FORM NYC-9.6 all salaries and compensation of stock - 5%, up to a total of 25%. Real estate tax escalation credit and employ - holders owning more than 5% of the b) If this form is filed more than 60 days late, ment opportunity relocation costs credit and corporation’s stock, as deducted for fed - the above late filing penalty cannot be less industrial business zone credit (Refer to in - eral tax purposes and reported on than the lesser of (1) $100 or (2) 100% of structions on Form NYC-9.6 and attach form.) Schedule F, regardless of whether such the amount required to be shown on the stockholders are also officers. In deter - form (less any payments made by the due LINE 9 b – CREDITS FROM mining whether a stockholder owns more date or credits claimed on the return). FORM NYC-9.9 than 5% of the issued capital stock, include Enter on this line the NYC film production c) A late payment penalty is assessed if you all classes of voting and nonvoting stock, credit. (Attach Form NYC-9.9.) fail to pay the tax shown on this form by issued and outstanding. the prescribed filing date, unless the fail - c) Line 3 - Enter on line 3 the sum of line 1 LINE 11 b - FIRST INSTALLMENT ure is due to reasonable cause. For every and line 2. PAYMENT month or partial month that your payment Do not use this line if an application for auto - is late, add to the tax (less any payments d) Line 4 - For taxable years beginning on matic extension, Form NYC-6, has been filed. made) 1/2%, up to a total of 25%. or after 7/1/98, enter $40,000. If the re - The payment of the amount shown at line 11b is turn does not cover an entire year, the ex - required as payment on account of estimated tax d) The total of the additional charges in a) and clusion must be prorated based on period for the 2008 calendar year, if a calendar year tax - c) may not exceed 5% for any one month covered by the return. payer, or for the taxable year beginning in 2008, except as provided for in b). if a fiscal year taxpayer. e) Line 6- For tax years beginning in 2007, If you claim not to be liable for these additional the alternative tax measured by entire net LINE 12 - SALES TAX ADDBACK charges, attach a statement to your return ex - income plus compensation is determined plaining the delay in filing, payment or both. by multiplying line 5 by 26.25 percent, in - This line relates to the General Corporation Tax credit for sales and compensating use stead of 30 percent. See Chapter 491 of LINE 17 c - PENALTY FOR UNDERPAY - taxes paid on certain machinery and equip - the Laws of 2007. MENT OF ESTIMATED TAX ment and/or certain services. If the taxpayer A penalty is imposed for failure to file a dec - received a credit or refund of any such sales LINE 5 - ALLOCATED SUBSIDIARY laration of estimated tax or for failure to pay or compensating use taxes during the year CAPITAL each installment payment of estimated tax due. covered by this return for which it claimed a Enter the amount from Schedule C, line 2, (For complete details, refer to Form NYC-222, General Corporation Tax credit in a prior tax Column G. If that amount is less than zero, Underpayment of Estimated Tax by Corpora - period, the amount of such credit or refund enter "0". tions.) If you underpaid your estimated tax, must be added back at line 12. A correspon - use Form NYC-222 to compute the penalty. ding adjustment is to be made at line 14 on LINE 7 - UBT PAID CREDIT Attach Form NYC-222 . If no penalty is due, Schedule B. (Refer to instructions to line 14 Enter on line 7 the credit against the General enter “0” on line 17c. Corporation Tax for Unincorporated Business on Schedule B.) Tax paid by partnerships from which you re - LINE 21 - TOTAL REMITTANCE LINE 14 - PREPAYMENTS ceive a distributive share or guaranteed pay - If the amount on line 15 is greater than zero or Enter the sum of all estimated tax payments ment that you include in calculating General the amount on line 19 is less than zero, enter made for this tax period, the payment made Corporation Tax liability on either the entire on line 21 the sum of line 15 and the amount, with the extension request, if any, and both the net income or income plus compensation base. if any, by which line 18 exceeds the amount carryover credit and the first installment re - (Attach Form NYC-9.7.) on line 16. After completing this return, enter ported on the prior tax period’s return. This the amount of your remittance on line A. This figure should be obtained from the Composi - LINE 8 a - CREDITS FROM must be the full amount as shown on line 21. tion of Prepayments Schedule on page 6 of FORM NYC-9.5 All remittances must be payable in U.S. dol - Form NYC-3L. Enter on this line the following credits against lars drawn on a U.S. bank. Checks drawn on the General Corporation Tax: foreign banks will be rejected and returned. Instructions for Form NYC-3L - 2007 Page 7 Remittances must be made payable to the amount of the General Corporation Tax de - On line 5b enter the amount of New York City order of NYC Department of Finance. ducted on the federal return on line 5b of General Corporation Tax and Banking Corpo - Schedule B, skip lines 6 through 18 and enter ration Tax deducted on your federal return. LINE 22 - NEW YORK CITY RENT the sum of Line 1 and line 5b on line 19. If the corporation is carrying on business both Attach a schedule listing each locality and the inside and outside New York City, complete LINE 2 - NONTAXABLE INTEREST amount of all those taxes deducted on your Schedule G and enter on line 22 of Schedule A Include all interest received or accrued which federal return . total rent from Schedule G, part 1. If the cor - was not taxable on your federal income tax LINES 6 a, 6 b, 6 c AND 6 d- poration is only carrying on business in New return. York City, enter the total rent deducted on the NEW YORK CITY ADJUSTMENTS federal return for premises located in the City. LINES 3 AND 4 - SUBSIDIARY CAPITAL a) The credit for sales tax paid on electric - ity or electric service used in the produc - Rent includes consideration paid for the use or A subsidiary is a corporation which is con - tion of certain tangible property formerly occupancy of premises as well as payments trolled by the taxpayer by reason of the tax - allowed by Admin. Code §11-604.15 has made to or on behalf of a landlord for taxes, payer’s ownership of more than 50% of the been repealed for purchases on or after charges, insurance or other expenses normally total number of shares of the corporation’s vot - November 1, 2000. No amount should be payable by the landlord other than for the im - ing capital stock, issued and outstanding. The added back with respect to this credit. provement, repair or maintenance of the ten - term “subsidiary capital” means all invest - ant’s premises. ments in the stock of subsidiary corporations, Purchases of machinery or equipment for plus all indebtedness from subsidiary corpora - which a credit is allowed by Admin. Code SCHEDULE B tions (other than accounts receivable acquired §11-604.12 were exempted from sales tax Computation and Allocation of Entire Net in the ordinary course of business for services effective December 1, 1989. Purchases Income rendered or from sales of property held pri - of certain services performed on machin - marily for sale to customers), whether or not LINE 1 - FEDERAL TAXABLE INCOME ery or equipment used in production for evidenced by bonds or other written instru - which a credit is allowed by Admin. Code Enter your federal taxable income (before net ments, on which interest is not claimed and de - §11-604.17-a were exempted from sales operating loss and special deductions) as re - ducted by the subsidiary for purposes of tax effective September 1, 1996. Credits quired to be reported on your federal tax return. taxation under Title 11, Chapter 6, Subchap - may be taken under these two provisions If you file federal Form 1120, use the amount ters 2 and 3 of the Admin. Code. only if the sales tax payment was made in the current year with respect to a pur - from line 28. If you have a subsidiary, complete lines 3 and chase in a period when the applicable 4, and attach a list of all items included. You If you file federal Form 1120-RIC, see Admin. sales tax was effective. In such case, the will also have to complete Schedule C. If you Code section 11-603.8. sales tax excluded or deducted for federal do not have a subsidiary, enter “0” on lines 3 tax purposes should be added back. If and 4. If you file federal Form 1120-REIT, see you are claiming a credit pursuant to §11- Admin. Code section 11-603.7. On line 3, enter total of amounts, including in - 604.12, a form NYC 9.5 for the year 1990 S Corporations and qualified subchapter S terest expense, deducted in computing federal or a prior year should be used. If you are subsidiaries (QSSS) must file returns as or - taxable income that are directly attributable to claiming a credit pursuant to §11-604.17- dinary corporations. If you are an S corpo - subsidiary capital or to income, gains or losses a, a form NYC 9.5 for the year 2000 or a ration filing on Form 1120S or a QSSS, you from subsidiary capital. Include capital losses prior year should be used. must report on line 1 the amount you would from sales or exchanges of subsidiary capital, b & c) Taxpayers claiming the real estate tax es - have had to report as taxable income were all other losses, bad debts and any carrying calation credit and/or the employment op - you not a federal S corporation or QSSS. charges attributable to subsidiary capital. portunity relocation costs credit or the Enter at Schedule B, line 1, the total amount of On line 4, enter all amounts, including interest, industrial business zone credit must enter income reported on lines 1 through 10 of the that are indirectly attributable to subsidiary on lines 6(c) and 6(b), respectively the federal form 1120S, Schedule K, less the total capital or to income, gains or losses from sub - amounts shown on lines 4 and 5, respec - amount of deductions reported on lines 11 sidiary capital. tively, of Part II of Form NYC-9.6. through 12d of that Schedule. In addition, in - clude other items and amounts that are re - For more information, see also Statement of d) The Federal bonus depreciation allowed quired to be reported separately to Audit Procedure 96-1-GCT, Noninterest Ex - for "qualified property," as defined in the shareholders and not numerically included on pense Attribution, January 29, 1996, available Job Creation and Worker Assistance Act federal Schedule K, but attached in a separate on the Department's website (nyc.gov/fi - of 2002 is not allowed for General Cor - schedule. nance). poration Tax purposes except for such deductions allowed with respect to NOTE: The charitable contribution deduc - LINE 5 - STATE AND LOCAL "qualified New York liberty zone prop - tion from federal Form 1120S, Schedule K, INCOME TAXES erty", "qualified New York liberty zone line 12a may not exceed 10% of the sum of On line 5a enter the amount deducted on your leasehold improvements" and "qualified lines 1 through 12e (other than line 12a) of federal return for income taxes paid or accrued property" placed in service in the Resur - Schedule K. to any state, any political subdivision of a state gence Zone (generally the area in the or to the District of Columbia, if they are on or borough of Manhattan South of Houston ELIGIBLE SMALL FIRMS: Eligible Small measured by profits or income or include Street and North of Canal Street.) For Firms that elect to use New York State entire profits or income as a measure of tax, includ - City tax purposes, depreciation deduc - net income as described on Page 5 of the in - ing taxes expressly in lieu of any of the fore - tions for all other "qualified property" structions should enter the New York State en - going taxes. Include the New York State must be calculated as if the property was tire net income on Line 1 of Schedule B, skip Metropolitan Transportation Business Tax sur - placed in service prior to September 11, lines 2 through 5a of Schedule B, enter the charge. 2001. See, Finance Memorandum 02-3 Instructions for Form NYC-3L - 2007 Page 8 (Revised) "New York City Tax Conse - York in years beginning after 1984 and holder owning more than 50% of its issued quences of Certain Retroactive Federal before 1994. See Finance Memorandum and outstanding stock, that corporate and New York Tax Law Changes" for 99-4 “Depreciation for Property Placed in shareholder may not exclude that interest more information. For tax years begin - Service Outside New York After 1984 from its NYC entire net income as income ning on or after January 1, 2004, other and Before 1994”. from subsidiary capital. (See instructions than for eligible farmers (for purposes of for lines 3, 4 and 9.) To enable a more than the New York State farmers' school tax LINE 7 a - PAYMENT FOR USE 50% corporate shareholder to treat any credit), the amount allowed as a deduc - OF INTANGIBLES such interest as excludible income from tion with respect to a sport utility vehicle Add back payments for the use of intangibles subsidiary capital, such interest should be that is not a passenger automobile for made to related members as required by Ad. added back on line 7 of this return in com - purposes of section 280F(d)(5) of the In - Code section 11-602.8(n). See "Highlights of puting NYC entire net income. ternal Revenue Code is limited to the Recent Tax Law Changes for Corporations." amount allowed under section 280F of e) In the case of a taxpayer organized out - the Internal Revenue Code as if the ve - LINE 7 b - OTHER ADDITIONS side the United States, all income from hicle were a passenger automobile as de - a) Effective for taxable years beginning on sources outside the United States, less all fined in that section. For SUVs that are or after January 1, 1982, the New York allowable deductions attributable thereto, qualified property other than qualified City Admin. Code was amended to nul - that was not taken into account in com - Resurgence Zone property and other lify the effects of federal “safe harbor puting federal taxable income must be added back in computing NYC entire net than New York Liberty Zone property, leases” upon New York City taxable in - income. the amount allowed as a deduction is cal - come (Section 11-602.8(a)(8) and (9) of culated as of the date the SUV was actu - the Admin. Code). This applies to agree - ally placed in service and not as of LINES 9 a AND 9 b - INCOME FROM September 10, 2001. On the disposition ments entered into prior to January 1, SUBSIDIARY CAPITAL of an SUV subject to the limitation, the 1984. Enter on line 9a dividends, capital gains and amount of any gain or loss included in other income and gain from subsidiary capital Any amount included in the computation income must be adjusted to reflect the that was included as part of federal taxable in - of federal taxable income solely as a re - limited deductions allowed for City pur - come. Complete Schedule C. sult of an election made under IRC Sec - poses under this provision. Enter on tion 168(f)(8) must be removed when Enter on line 9b interest from subsidiary cap - Schedule B, line 6(d) and 16 the appro - computing New York City taxable in - ital that was included in federal taxable in - priate adjustments from form NYC- come. Any amount excluded in the com - come. Do not enter on line 9b interest for 399Z. See Finance Memorandum 07-3 putation of federal taxable income solely which the payor subsidiary claimed a deduc - dated September 24, 2007 “Application as a result of an election made under IRC tion. (See instructions for Schedule B, lines 3 of IRC §280F Limits to Sports Utility Section 168(f)(8) must be included when and 4, above, for the definition of subsidiary Vehicles.” computing New York City taxable in - capital.) The federal depreciation deduction com - come. puted under the Accelerated Cost Recov - LINE 10 - NONSUBSIDIARY Exempt from these adjustments are leases ery System or Modified Accelerated Cost DIVIDENDS for qualified mass commuting vehicles Recovery System (IRC Section 168) is not Enter 50% of dividends received from non - and property of a taxpayer, subject to the allowed for the following types of property: subsidiary corporations. Do not include the General Corporation Tax, principally en - G following: (1) “gross-up” dividends pursuant property placed in service in New gaged in the conduct of an aviation, to IRS Section 78, and (2) dividends from York State in taxable years beginning steamboat, ferry or navigation business, stocks not meeting the holding period require - before January 1, 1985 (except re - or two or more such businesses, which is ment set forth in IRC Section 246(c). Regu - covery property subject to the provi - placed in service before taxable years be - lated investment companies and real estate sions of Internal Revenue Code ginning in 1989. investment trusts do not qualify for this de - Section 280-F) Enter the appropriate additions and de - duction. G property of a taxpayer principally en - ductions on lines 7 and 17, respectively, LINE 11 - NET OPERATING LOSS gaged in the conduct of an aviation, and attach a rider to show the “safe har - Enter New York City net operating loss carry - steamboat, ferry, or navigation busi - bor” adjustments to New York City tax - forward from prior years. The following rules ness, or two or more such businesses able income. apply to net operating losses. which is placed in service in taxable b) Foreign taxes paid or accrued that are de - years beginning after December 31, 1) A deduction may only be claimed for net ducted from gross income to determine 1988, and before January 1, 1994. operating losses sustained in taxable years federal taxable income must be added to during all or part of which the corporation In place of the federal depreciation de - entire net income. A foreign tax credit was subject to the General Corporation duction, a depreciation deduction using may not be used as a deduction when Tax. New York City allows net operating pre-ACRS or MACRS rules (IRC Sec - computing NYC entire net income. losses to be used in the same manner as tion 167) is allowed. Enter on line 6d the provided by IRC Section 172. However, ACRS adjustment from Form NYC-399, c) Any “windfall profit” tax deducted in the amount of any federal loss must be ad - Schedule C, line 8, Column A. Enter on computing federal income must be added justed in accordance with Section 11- line 16 the ACRS adjustment from Form back when computing NYC entire net in - 602.8(f) of the Admin. Code. Regulated NYC-399, Schedule C, line 8, Column B. come. investment companies and real estate in - ACRS and MACRS may be available for d) If the taxpayer deducted on its federal re - vestment trusts do not qualify for this de - property placed in service outside New turn interest paid to a corporate stock - duction. Instructions for Form NYC-3L - 2007 Page 9 2) The deduction of a net operating loss car - b) the loss was sustained in 1988, and course of trade or business or accounts or ryforward from prior years may not ex - notes receivable acquired in the ordinary ceed, and is limited to, the amount of the c) the taxpayer had elected to relinquish course of trade or business). The amount of the current year’s federal taxable income. A the entire carryback period under IRC deduction with respect to each such property is net operating loss may not be claimed as a Section 172. equal to the difference between: deduction if Schedule B, line 1 reflects a For special rules relating to acquisitions, loss. a) the amount of the taxpayer’s federal tax - mergers or consolidations involving cor - able income; and 3) The deduction shall not exceed the deduc - porations principally engaged in the con - tion that would have been allowed if the duct of aviation, steamboat, ferry or b) the amount of the taxpayer’s federal tax - taxpayer had not made an election to be an navigation business, refer to Section 77b of able income (if smaller than the amount S Corporation under the rules of the Inter - Chapter 241 of the Laws of 1989. described in(a)), computed as if the federal nal Revenue Code or had not elected to be adjusted basis of each such property (on 7) Corporations reporting both business and included in a group reporting on a consoli - the sale or other disposition of which gain investment income must complete line 22 dated basis for federal income tax purposes. was realized) on the date of the sale or of this schedule to apportion any net oper - other disposition had been equal to either: 4) The New York City net operating loss de - ating loss between business income and in - duction taken for City purposes for each vestment income. 1) its fair market value on January 1, year may not exceed the deduction allow - 1966, or the date of its sale or other Attach a copy of the schedule supporting the able for that year for federal income tax disposition prior to January 1, 1966, deduction claimed on line 29(a) on page 1 of purposes calculated as if the taxpayer had plus or minus all adjustments to your federal Form 1120. elected to relinquish the carryback period basis made with respect to such except with respect to the first $10,000 of property for federal income tax pur - CARRYBACK LOSSES each year’s loss. The carryback period for poses for periods on or after January If the amount on line 18 is greater than the General Corporation Tax purposes corre - 1, 1966; or amount on line 8 so that the entry on line 19 sponds to the federal carryback period. If would be a loss, a request to carry it back as a 2) the amount realized from its sale or the taxpayer elects to use a 2-year carry - net operating loss deduction in any prior year other disposition, whichever is lower. back period for federal purposes, the same must be made separately on Form NYC-8CB carryback period applies for City purposes. or Form NYC-8. Do not attach or mail a Form In no event, however, shall the total amount If the taxpayer elects to relinquish the en - NYC-8CB or Form NYC-8 with the tax return. computed above exceed the taxpayer’s net gain tire carryback period for federal purposes, This request must be submitted within three for the year from the sale or other disposition then the taxpayer may not carryback any years of the due date of the return for the loss of property (other than stock in trade, inventory, amount for City purposes. See instructions year or within the period prescribed in Section property held primarily for sale to customers in for Forms NYC-8 and NYC-8CB for more 11-678 of the Admin. Code. Corporations that the ordinary course of trade or business, or ac - information. have elected to relinquish the carryback period counts or notes receivable acquired in the ordi - nary course of trade or business). 5) Losses which are not permitted to be car - for a net operating loss incurred in taxable ried back, may generally be carried for - years beginning after August 5, 1997 must sub - Attach a rider showing computation and a ward and used to offset income for the mit a copy of the federal election. copy of federal Form 1120 or 1120-S, Sched - period permitted for federal tax purposes, ule D. Because an S corporation does not carry over generally 20 years subsequent to the loss NOLs, it will not have made a federal election year for losses incurred in taxable years be - LINE 13 - CITY AND STATE REFUNDS to relinquish any or all of its carryback period. ginning after August 5, 1997. Enter at line 13 refunds or credits of the New Therefore, for City tax purposes for losses York City General Corporation Tax, New York 6) Corporations principally engaged in the arising in taxable years ending in or after 2002, State Franchise Tax or New York City or State conduct of an aviation, steamboat, ferry or it will be presumed that, unless the taxpayer S Banking Corporation Tax for which no tax ex - navigation business or two or more of such corporation attached a statement to this return clusion or deduction was allowed in deter - businesses are permitted to claim a net op - indicating that the taxpayer intends to carry mining the taxpayer’s taxable (entire) net erating loss deduction in the same manner back the loss, the taxpayer is presumed to have income in a prior year. as other corporations. elected to relinquish the entire carryback pe - riod. For S corporations filing on a combined LINE 14 - SALES TAX REFUNDS These corporations are allowed to carry basis only with other S corporations or quali - AND CREDITS forward any net operating losses or a pro - fied Subchapter S subsidiaries, any statement This line relates to credits or refunds of sales portionate part of a net operating loss sus - attached either to a proforma NYC-3L or to the and compensating use tax paid on certain ma - tained during the federal taxable period(s) NYC-3A will be deemed applicable to the en - chinery and equipment and/or certain services covering the years 1985 through 1988, pro - tire group. Any excess net operating loss may included in federal taxable income for which a vided the corporation was taxable under be carried forward as if the taxpayer had credit was claimed in a prior year. The amount Title 11, Chapter 6, Subchapter 4 of the elected to relinquish the entire carryback pe - entered here should be the same as the amount Admin. Code (Transportation Corporation riod for all but the first $10,000 of the loss. entered at line 12 of Schedule A. (Refer to in - Tax) for the calendar years 1985 through structions for Schedule A, line 12.) and including 1988. The net operating loss LINE 12 - PROPERTY ACQUIRED must be computed as if: PRIOR TO 1966 There is no addback for current refunds of A deduction is allowed with respect to gain sales tax paid on purchases of electricity or a) the corporation had been subject to from the sale or other disposition of any prop - electric service used in the production of cer - taxation under Subchapter 2 (General erty acquired prior to January 1, 1966 (except tain tangible property for which the taxpayer Corporation Tax) during the period(s) stock in trade, inventory, property held prima - took a credit in a prior period under Adm. the loss was sustained, rily for sale to customers in the ordinary Code §11-604.15. Instructions for Form NYC-3L - 2007 Page 10 LINE 15 - FEDERAL JOBS CREDIT LINE 20 - SPECIAL ADJUSTMENTS LINE 21 a - DIVIDENDS Enter the portion of wages and salaries paid or If, as a result of the adjustments on this line, Enter dividends not excluded on line 10 ex - incurred for the taxable year for which a de - entire net income is a loss, enter zero (“0”) on cept for “gross-up” dividends pursuant to Sec - duction is not allowed pursuant to the provi - this line, skip lines 22 through 26, and enter tion 78 of the IRC. This includes 50% of sions of Section 280C of the Internal Revenue zero on line 27 of this Schedule B and line 1 of dividends from nonsubsidiary corporations Code because the federal targeted jobs tax Schedule A. for which an exclusion was allowed on line credit was taken. Attach Federal Form 5884 or 10 of this schedule and 100% of dividends 8884 for Liberty Zone business employees. a) A corporation organized outside the from stock not meeting the holding period re - The New York Liberty Zone business em - United States must enter at line 20 its en - quirement set forth in Section 246(c) of the ployee credit is only available for wages paid tire net income wherever earned, includ - IRC. or incurred during the current taxable year for ing all income from sources outside the work performed in 2002 or 2003. United States, less all allowable deduc - LINE 21 d - INCOME FROM CASH tions attributable thereto, not taken into Enter income from cash on Schedule B, line LINE 16 - DEPRECIATION account in computing federal taxable in - 21d, only if you have elected to treat cash as ADJUSTMENT come. Attach Schedule. See “FOREIGN investment capital and have entered the Enter on line 16 the adjustments from Form AIRLINES” under GENERAL INFOR - amount thereof on Schedule D, line 3. NYC-399 and/or Form NYC-399Z, Schedule MATION, above. C, line 8, Column B. See instructions for LINE 21 f - DEDUCTIONS b) If you are, either separately or as a mem - Schedule B, line 6(d). ATTRIBUTABLE TO ber of a partnership, doing insurance INVESTMENT INCOME LINE 17 a - ROYALTY INCOME business as a member of the New York For more information, see Statement of Audit FROM INTANGIBLES Insurance Exchange described in Section Procedure 96-1-GCT, Noninterest Expense At - Subtract income such as royalties from related 6201 of the Insurance Law, make the ad - tribution, January 29, 1996 and Statement of members for the use of intangibles as de - justment required under Section 11- Audit Procedure 04-02-AU, GCT & UBT scribed in section 11-602.8(n) of the Admin - 602.8(a)(6) and Section 11-602.8(b)(8) of the Treatment of Repurchase Agreements and Se - istrative Code. See "Highlights of Recent Tax Admin. Code. curities Lending and Borrowing Transactions Law Changes for Corporations." c) For tax years beginning on or after August for Financial Services Firms Regularly En - 1, 2002, corporations that are partners in gaged in Such Activities, September 24, 2004, LINE 17 b - OTHER DEDUCTIONS partnerships that receive at least eighty available on the Department’s website at a) Refer to instructions to Schedule B, line 7 for percent of their gross receipts from pro - nyc.gov/finance. adjustments relating to safe harbor leases. viding mobile telecommunications serv - ices must exclude their distributive share LINE 22 - APPORTIONED NEW b) Taxpayers entitled to a special deduction YORK CITY NET OPERATING for construction, reconstruction, erection or of income, gains, losses and deductions from any such partnership, including their LOSS DEDUCTION improvement of air pollution control facil - Corporations that report both business and in - ities initiated on or after January 1, 1966, share of separately reported items, from their federal taxable income reported on vestment income must apportion any net op - and having a situs in NYC in accordance erating loss deduction on line 11 between with Section 11-602.8(g) should submit a line 1. See "Highlights of Recent Tax Law Changes for Corporations", supra . business income and investment income. This rider showing the complete computation. is computed by multiplying the net operating loss deduction by a ratio. The ratio is a frac - Enclose certification of compliance issued LINE 21 - INVESTMENT INCOME tion, the numerator of which consists of in - pursuant to Section 17-0707 or Section 19- Investment income includes: 50% of dividends vestment income before deducting any net 0309 of the Environmental Conservation from non-subsidiary stocks held for investment; operating loss and the denominator of which is Law. Entire net income for the current year interest from investment capital; net capital gain entire net income before deducting any net op - and all succeeding years must be computed or loss from sales or exchanges of nonsub - erating loss. The ratio may be expressed as a without any deduction for such expendi - sidiary securities held for investment; and in - percentage. Multiply the net operating loss tures or for depreciation of such property. come from cash if an election is made to treat cash as investment capital on line 3 of Schedule deduction by the result. Enter this amount on c) Deduct foreign dividend gross-up pursuant D. Do not include any “gross-up” dividends line 22. to Section 78 of the IRC (see federal Form pursuant to Section 78 of the IRC that have 1120, Schedule C, line 15) to the extent not been deducted in computing entire net income. LINE 23b – INVESTMENT INCOME deducted at line 9a. Entire net income does Investment income includes interest received TO BE ALLOCATED not include any amount treated as divi - on a loan to a subsidiary if the subsidiary Enter the amount from line 23a. If the amount dends pursuant to Section 78 of the IRC. claims such interest as a NYC General or on line 23a is greater than the amount on line Banking Corporation Tax deduction on any re - 19 or 20, enter the amount from line 19 or 20. d) Regulated investment companies must turn for any period, and if such loan is evi - If the entry on line 23a is a loss, enter zero deduct dividends paid to stockholders on denced by a bond or other corporate security. (“0”) on line 23b. this line. Do not include any capital loss which was not used in computing federal taxable income. LINE 25 - ALLOCATED LINE 19 – ENTIRE NET INCOME INVESTMENT INCOME If line 18 is greater than line 8 so that the In computing investment income, subtract the If the investment allocation percentage is zero, amount on this line would be a loss, enter zero amount of deductions allowable in computing interest on bank accounts must be multiplied (“0”) on this line, skip lines 22 through 26, and entire net income which are directly or indi - by the business allocation percentage. enter zero (“0”) on line 27 of this Schedule B rectly attributable to investment capital or in - and on line 1 of Schedule A. That loss may be vestment income. available as a carryover. See instructions to Schedule B, Line 11, for more information. Instructions for Form NYC-3L - 2007 Page 11 SCHEDULE C WORKSHEET SCHEDULE E Subsidiary Capital and Allocation ______Computation and Allocation of Capital Total liabilities from Sch. E, line 6, Col. C 1. - and - Liabilities directly attributable to: ______“Eligible Small Firms” as described in the Subsidiary capital ...... 2. instructions on Page 5 do not need to com - SCHEDULE D ______Investment capital ...... 3. plete this schedule. Investment Capital and Allocation ______Business capital ...... 4. LINES 1 THROUGH 5 - AVERAGE ______Complete Schedule C if you have any sub - Add: lines 2, 3, and 4 ...... 5. VALUE OF TOTAL ASSETS sidiaries. (Refer to the instructions for Sched - ______To determine the value of your assets for busi - Subtract: line 5 from line 1 ...... 6. ule B, lines 3 and 4 for the definition of a ness, investment and subsidiary capital pur - subsidiary and subsidiary capital.) Enter amount from either: poses, you must include real property and Sch. C, line 1, col. C less ______marketable securities at fair market value. Complete Schedule D if you have investment amount from line 2 of worksheet 7a. OR capital. Investment capital is the average value The value of all other property must be in - Sch. D, line 1, col. C less ______of your investments in stocks, bonds, and amount from line 3 of worksheet 7b. cluded at the value shown on the taxpayer's other corporate or government securities, less books and records in accordance with gener - liabilities, both long term and short term, di - Enter amount from Sch. E, line 5, col. C ______less amount from line 5 of worksheet ...... 8. ally accepted accounting principles (GAAP). rectly or indirectly attributable to investment capital. Investment capital does not include Divide: line 7a or 7b by line 8 ...... 9. ______% On Schedule E, line 1, enter the value of total ______assets at the beginning of the year in column A those stocks, bonds or other securities that are Multiply: line 6 by line 9 ...... 10. held for sale to customers in the regular course ______and at the end of the year in column B. Enter of business or that constitute subsidiary capi - Average value of a particular asset ...... 11. the average value in column C. Attach a Enter amount from either: schedule showing the computation of the av - tal. Investment capital does not include inter - ______ests in, or obligations of, partnerships or other Sch. C, line 1, col. C ...... 12a. erage value. (Refer to Title 19 OR unincorporated entities. ______On line 2, enter the value of real property and mar - Rules of the City of New York Section 11-37 Sch. D, line 1, col. C ...... 12b. ketable securities included in line 1. for the definition of investment capital.) Divide: line 11 by line 12a or 12b ...... 13. ______% ______Enter amount from line 10 ...... 14. Enter on line 4 the fair market value of real To determine the value of your assets for busi - property and marketable securities. ______ness, investment and subsidiary capital pur - Multiply: line 14 by line 13 ...... 15. poses, you must include real property and Average value is generally computed on a marketable securities at fair market value. To determine the portion of subsidiary or in - quarterly basis. A more frequent basis vestment capital to be allocated within the (monthly, weekly or daily) may be used. The fair market value of any asset is the price Where the taxpayer’s usual accounting prac - (without any encumbrance, whether or not the City, multiply the amount of subsidiary or in - vestment capital during the period covered by tice does not permit computation of average taxpayer is liable) at which a willing seller, not value on a quarterly or more frequent basis, a compelled to sell, will sell and a willing pur - the return (column E) by the issuer’s alloca - tion percentage (as defined in the instructions semiannual or annual basis may be used if no chaser, not compelled to buy, will buy. The distortion of average value results. fair market value, on any date, of stocks, for Schedule E, line 15). bonds and other securities regularly dealt in on This percentage may be obtained (1) from tax With respect to real property owned by the an exchange, or in the over-the-counter mar - service publications, (2) by writing to: NYC taxpayer and located within New York City, ket, is the mean between the highest and low - Department of Finance, Taxpayer Correspon - the fair market value is presumed to be not less est selling prices on that date. dence Unit, 59 Maiden Lane, 28th Floor, New than the estimated market value of the prop - erty on the Final Assessment Roll of the City The value of all other property must be in - York, NY 10038, (3) from the department’s website under “Forms/Guides” at nyc.gov/fi - for the period covered by the return or the cluded at the value shown on the taxpayer’s most recent sales price, whichever is greater. books and records in accordance with gener - nance, or (4) by calling (212) 504-4036. If the subsidiary or other issuer was not doing busi - ally accepted accounting principles (GAAP). LINE 6 - TOTAL LIABILITIES ness in New York City during the preceding (Refer to the instructions for Schedule E, lines The liabilities deductible in computing each year, the percentage is zero. The investment 1 through 5 for more information on comput - type of capital are those liabilities (both long allocation percentage should be rounded to the ing average value.) and short term) that are directly or indirectly nearest one hundredth of a percentage point. attributable to each type of capital. Use the In completing Schedules C and D, you may same method of averaging as is used in deter - SCHEDULE D, LINE 3 - CASH use the worksheet which appears below to de - mining average value of assets. termine the amount of liabilities indirectly at - If you have both business and investment cap - ital, you may elect to treat cash on hand or on tributable to a particular asset. LINES 7 THROUGH 11 deposit as either business or investment capi - If the period covered by this report is other In column D of Schedules C and D on the line tal. If you wish to elect to treat cash as in - than a period of twelve calendar months, first for the asset in question, include the sum of vestment capital, you must include it on this follow the instructions on Schedule E to cal - the amount from line 15 of this worksheet and line. Otherwise, you will be deemed to have culate preliminary amounts for lines 7 through the amount of liabilities directly attributable to elected to treat cash as business capital. You 11. Before entering these amounts on Sched - that asset. may not elect to treat part of such cash as busi - ule E multiply each amount by a fraction, the ness capital and part as investment capital. numerator of which is the number of months You may not revoke your election after it has or major parts thereof included in such period been made. and the denominator of which is twelve. Instructions for Form NYC-3L - 2007 Page 12 Enter on line 8, the amount from Schedule 11001, 11040 and 11096 are in the borough of you must check the appropriate box in Sched - C, Column E, line 1. Subtract the amount on Queens. If the zip code is 11001, 11040 or ule H, complete Schedule H, and fully explain line 8 from the amount on line 7 and enter 11096, call the US Postal Service at (516) 354- your proposed alternative allocation method in the difference on line 9 of this Schedule E. If 3297 to determine if the corporation's address a rider. This explanation must provide full in - the amount on line 8 is less than zero be - is within New York City. formation regarding the nature and scope of the cause liabilities attributable to subsidiary business activities carried on within and with - capital exceed the value of the assets re - A corporation is entitled to allocate part of its out New York City and provide complete details ported in Schedule C, add the absolute business income and capital outside New of how the method you propose would allocate amount of the amount on line 8 to the York City if it carries on business both inside income on a more equitable basis than the statu - amount on line 7 and enter the total on line 9. and outside New York City and, for taxable tory method. In addition, at the time of filing For example, if the amount on Schedule E, years beginning before July 1, 1996, only if it the return, you must pay the tax in accordance line 8 is ($100) and the amount on Schedule has a “regular place of business” outside the with the formula basis set out in Schedule H. If E, line 7 is $200, the amount on Schedule E, City. Otherwise, 100% of its business income the Department consents to your proposed al - line 9 should be $300. and capital must be allocated to New York ternative allocation method and it results in a City. If you did not carry on business both in - lower tax liability than the formula basis set out If the amount on Schedule D, line 4 is less than side and outside New York City, you must in Schedule H, you may be entitled to a refund zero, enter zero (“0”) on line 10 of this Sched - enter 100% at Schedule H, line 5. If you car - of the excess amount you have paid. ule E, enter the amount from line 9 on line 11, ried on business both inside and outside New and enter zero (“0”) on line 12. York City, you must complete Schedule G, LINES 1 AND 2 parts I and II and Schedule H, business allo - LINE 15 - ISSUER’S cation percentage. Property Factor ALLOCATION PERCENTAGE When computing the property percentage, The percentage is determined by adding to - The business allocation percentage is gener - value real and tangible personal property gether allocated New York City business, in - ally computed by means of a three factor for - owned by the corporation at the adjusted basis vestment and subsidiary capital, dividing the mula: used for federal income tax purposes. How - G sum by total capital, and rounding to the near - real and tangible personal property (in - ever, you may make a one-time revocable est one hundredth of a percentage point. cluding rented property) election to value real and tangible personal G property owned at fair market value. You The issuer's allocation percentage cannot be business receipts must make this election on or before the due G less than zero. Do not calculate your issuer's payroll date (or extended due date) for filing the tax - allocation percentage by adding the business, payer’s first General Corporation Tax Return. investment and subsidiary capital allocation Each factor is computed by dividing the This election will not apply to any taxable percentages and dividing that total by the amount in column A (New York City amount) year with respect to which the corporation is number of percentages. by the amount in column B (total amount). included in a combined report unless each of The three resulting percentages are added to - the corporations included on the combined re - The issuer’s allocation percentage represents the gether, the sum is divided by 3 rounded to the port has made the election which remains in amount of capital employed within New York City nearest one hundredth of a percentage point effect for such year. as compared to total capital employed everywhere. and the resulting business allocation percent - Every taxpayer using Form NYC-3L is required to age is entered at Schedule H, line 5. If one of LINE 1 b - REAL ESTATE RENTED compute its issuer’s allocation percentage. the factors is missing, the other two percent - The value of real property rented to the taxpayer ages are added and the sum is divided by two. Combined filers must compute a combined is - is eight times the gross rent payable during the If two of the factors are missing, the remain - suer’s allocation percentage by using amounts year covered by this return. Gross rent includes ing percentage is the business allocation per - from Form NYC-3A. The combined issuer’s any amount payable as rent or in lieu of rent, centage. A factor is not missing merely allocation percentage should be entered on such as taxes, repairs, etc., and, if there are lease - because its numerator is zero, but is missing Schedule A of Form NYC-3A. hold improvements made by or on behalf of the if both its numerator and denominator are taxpayer, the amount of annual amortization of zero. SCHEDULE G such cost. Do not include the rental of personal property on this line. For special treatment of “Eligible Small Example: A corporation owns no real or tan - Firms” see instructions on Page 5. gible personal property and rents no real prop - LINE 1 d - TANGIBLE PERSONAL erty either within or without the City. The SCHEDULE H PROPERTY OWNED property factor being missing, the business al - Business Allocation Enter the average value of the tangible personal location percentage is computed by adding the property owned. The term “tangible personal NOTE: Zip codes beginning with the follow - business receipts and payroll percentages and property” means corporeal personal property, ing three-digits are within the five boroughs of dividing the total by two. such as machinery, tools, implements, goods and New York City: wares. Do not include cash, shares of stock, ALTERNATIVE ALLOCATION bonds, notes, credits, evidences of an interest in Manhattan - 100, 101, 102 METHOD property, or evidences of debt. Bronx - 104 You cannot use an allocation method other than the formula basis set out in Schedule H without LINE 1 e - TANGIBLE PERSONAL Brooklyn - 112 the consent of the Department of Finance. PROPERTY RENTED Queens - 111, 113, 114, 116 However, if you believe that Schedule H does Enter the average value of the tangible per - Staten Island - 103 not fairly and equitably reflect income from sonal property you rented. The value of rented New York City, you may request the Depart - tangible personal property is eight times the In addition, the five-digit zip codes 11004, ment’s consent to use an alternative method gross rent payable during the year covered by 11005 and some addresses with a zip code of when filing this return. To make that request, this return. Instructions for Form NYC-3L - 2007 Page 13 Receipts Factor LINE 2 d - RENTALS OF PROPERTY add the percentages in column B and divide the Receipts from rentals of real and personal LINES 2 a AND 2 b - SALES OF sum by 4 and enter the result on line 5 rounded property situated in New York City are alloca - TANGIBLE PERSONAL PROPERTY to the nearest one hundredth of a percentage ble to New York City. These include all Enter on line 2a, column A, receipts in the reg - point. If one or more of the other factors is amounts received by the taxpayer for the use ular course of business from the sale of tangi - missing, add the remaining percentage(s) and or occupation of property, whether or not such ble personal property where shipments are divide by the number of percentages so added. property is owned by the taxpayer. made to points within New York City. Enter If you do not wish to make the election, do on line 2b, column B, receipts from all sales not enter an amount on line 2i. For purposes LINE 2 e - ROYALTIES of tangible personal property. of this election, a corporation is engaged in a Royalties from the use in New York City of manufacturing business if it is primarily en - LINE 2 c - SERVICES PERFORMED patents or copyrights are allocable to New York gaged in the manufacturing and sale of tangi - Receipts from services performed within New City. These include all amounts received by ble personal property. Manufacturing includes York City are allocable to New York City. All the taxpayer for the use of patents or copy - assembly, working raw materials into wares, amounts received by the taxpayer in payment rights, whether or not the patents or copyrights and giving new shapes, qualities or combina - for such services are allocable to New York City were originally issued to or are owned by the tions to matter that has already gone through regardless of whether the services were per - taxpayer. A patent or copyright is used in New some artificial process, through the use of ma - formed by employees or agents of the taxpayer, York City to the extent that activities thereun - chinery, tools, appliances or other similar equip - by subcontractors, or by any other persons. It is der are carried on in New York City . ment. A corporation is primarily engaged in immaterial where such amounts were payable Do not include royalty income from related manufacturing if more than 50% of its gross re - or where they actually were received. members that was subtracted on line 17 of ceipts for the year are attributable to manufac - Commissions received by the taxpayer are allo - Schedule B. See "Highlights of Recent Tax Law turing. See Title 19 Rules of the City of New cated to New York City if the services for which Changes for Corporations." York §11-63(c)(4) for more information. the commissions were paid were performed in If a taxpayer that is otherwise eligible to elect to LINE 2 f - OTHER BUSINESS New York City. If the taxpayer’s services for use a double-weighted receipts factor is per - RECEIPTS which commissions were paid were performed mitted or required to file on a combined basis All other business receipts earned by the tax - for the taxpayer by salesmen attached to or with one or more other corporations, the tax - payer within New York City are allocable to working out of a New York City office of the tax - payer may elect to use a double-weighted re - New York City. Business receipts are not con - payer, the taxpayer’s services will be deemed to ceipts factor only if the requirements for the sidered to have been earned by the taxpayer in have been performed in New York City. election would be met if all the corporations in - New York City solely by reason of the fact that cluded in the combined report were treated as a Corporations engaged in publishing newspapers or they were payable in New York City or actually single corporation. If a taxpayer included in a periodicals must allocate receipts from advertising were received in New York City. Receipts from combined report properly makes an election to in such publications based on the circulation of the sales of capital assets (property not held by the use a double-weighted receipts factor, each of publication in the City compared to the total cir - taxpayer for sale to customers in the regular the other corporations in the combined groups culation. Corporations engaged in radio or televi - course of business) are not business receipts. sion broadcasting, whether by cable or other will be treated as having made a proper election means, must allocate receipts from broadcasting Do not include payments for the use of intangi - to use a double-weighted receipts factor. programs or commercial messages based upon the bles from related members that were subtracted location of the audience for the broadcasts in the on line 17 of Schedule B. Payroll Factor City compared to the total audience. For taxable LINE 3 a - WAGES AND SALARIES years beginning on or after January 1, 2002, cor - The following are also business receipts and are Employees within New York City include all em - porations engaged in publishing newspapers or pe - allocable to New York City: ployees, except general executive officers, regu - riodicals or in radio or television broadcasting G receipts from the sale of real property held by larly connected with or working out of an office must allocate receipts from subscriptions to such the taxpayer as a dealer for sale to customers or place of business maintained by the taxpayer newspapers, periodicals and broadcast programs in the regular course of business, provided the within New York City, irrespective of where the based on the location of the subscriber. real property was situated in New York City services of these employees were performed. G receipts from sales of intangible personal Taxpayers principally engaged in the activity General executive officers include the chair - property included in business capital held of air freight forwarding acting as principal man, president, vice-president, secretary, as - by the taxpayer as a dealer for sale to cus - and like indirect air carriers are required to de - sistant secretary, treasurer, assistant treasurer, tomers in the regular course of business, termine receipts for purposes of the receipts comptroller, and any other officer charged provided the sales were made in New factor arising from the activity from services with the general executive affairs of the cor - performed within New York City as follows: York City or through a regular place of poration. An executive officer whose duties 100% of the receipts if both the pick up and business in New York City. are restricted to territory either inside or out - delivery associated with the receipts are made side of New York City is not a general execu - LINE 2 i - ADDITIONAL RECEIPTS in New York City and 50% of the receipts if tive officer. either the pickup or delivery associated with FACTOR the receipts is made in the City but not both. For taxable years beginning after 6/30/96, a LINE 5 - BUSINESS ALLOCATION manufacturing business may elect to use a dou - PERCENTAGE Receipts from management, admin. or distri - ble-weighted receipts factor. An election must bution services provided to a regulated invest - Aviation Corporations and Corporations be made on a timely filed original return and is Operating Vessels. ment company (RIC) must be allocated based made by entering on line 2i the amount from upon the percentage of the RIC’s shareholders Complete Schedule I (Business Allocation for line 2h. The election is irrevocable except with domiciled in New York City. (Attach rider Aviation Corporations and Corporations Op - special permission of the Commissioner under showing computation.) erating Vessels) and enter the percentage from certain circumstances. If you make an election, part 1 or 2 on Schedule H, line 5. Instructions for Form NYC-3L - 2007 Page 14 SCHEDULE I York City territorial waters, such time may QSSS must file a separate general corporation Business Allocation for Aviation Corpora - be computed on the basis of records showing tax report. See Finance Memorandum 99-3. tions and Corporations Operating Vessels. the number of times the Ambrose Light Sta - tion was passed on the way in and out of port. SCHEDULE K Part 1 - Aviation Corporations Federal Return Information A taxpayer principally engaged in the conduct Line 2 If the corporation files as a member of a fed - of aviation is required to determine the portion of Transfer the percentage from part 2, line 2 eral consolidated group, enter the informa - the entire net income to be allocated within the to Schedule H, line 5. tion as it appears on its proforma federal City by multiplying its business income by a return. If the corporation files a separate re - business allocation percentage which is equal to SCHEDULE J turn, enter the information appearing on the the arithmetic average of the three percentages Additional Required Information Federal 1120 filed with the IRS. from part 1, lines 2, 4 and 6. All questions must be answered. Line 1 PREPAYMENTS SCHEDULE “Aircraft arrivals and departures” means the Enter the payment date and the amount of all pre - Question 1 number of landings and takeoffs of the aircraft payments made for this tax period. In reporting the "NYC principal business ac - of an aviation corporation and the number of air tivity," give the one activity that accounts for pickups and deliveries by such aircraft. Arrivals CUSTOMER ASSISTANCE the largest percentage of total receipts. Total and departures solely for maintenance or repair, For interest calculations and account informa - receipts means gross receipts plus all other in - refueling (where no debarking or embarking of tion, contact Customer Assistance at 212-504- come. State the broad field of business activ - traffic occurs), or arrivals and departures in the 4036 , Monday through Friday, 8:30am to 5:30 ity as well as the specific product or service event of emergency situations should not be in - pm. (e.g., mining copper, manufacturing cotton cluded in computing this percentage. broad woven fabric, wholesale meat, retail You can speak to a Customer Assistance Line 3 men’s apparel, export or import chemicals, real Representative between the hours of 9:00 am “Revenue tons handled” by an aviation cor - estate rental, or real estate operation of motel). and 4:30 pm. poration at an airport means the weight, in You can also visit our Internet website at tons, of revenue passengers (at two hundred Question 2 nyc.gov/finance pounds per passenger) and revenue cargo If the corporation is included in a consolidated first received either as originating or con - federal return, give the name of the common necting traffic, or finally discharged by parent corporation filing the consolidated return. PRIVACY ACT NOTIFICATION such corporation at such airport. Question 3 The Federal Privacy Act of 1974, as amended, re - quires agencies requesting Social Security Numbers Line 5 If the corporation is included in a New York City to inform individuals from whom they seek this in - “Originating revenue” means revenue to an Combined General Corporation Tax Return, give formation as to whether compliance with the request aviation corporation from the transportation the name of the corporation that is a member of is voluntary or mandatory, why the request is being of revenue passengers and revenue property the combined group and owns or controls, directly made and how the information will be used. The dis - first received by such corporation at an air - or indirectly, substantially all of the capital stock of closure of Social Security Numbers for taxpayers is port as either originating or connecting traffic. each other member of the combined group. If no corporation that is part of the combined group sat - mandatory and is required by section 11-102.1 of the Administrative Code of the City of New York. Such Line 8 isfies this requirement, give the name of the per - numbers disclosed on any report or return are re - Transfer the percentage from part 1, line 8 son or corporation that owns or controls, directly quested for tax administration purposes and will be to Schedule H, line 5. or indirectly, substantially all of the capital stock of all the members of the combined group. used to facilitate the processing of tax returns and to Part 2 - Corporations Operating Vessels establish and maintain a uniform system for identi - A taxpayer principally engaged in the operation of Question 10 fying taxpayers who are or may be subject to taxes vessels is required to determine the portion of en - If you answer “yes” to question a, attach a sep - administered and collected by the Department of Fi - tire net income to be allocated within the City by arate sheet providing street address, borough, nance, and, as may be required by law, or when the multiplying its business income by a business al - block and lot number of such property. If you taxpayer gives written authorization to the Depart - location percentage determined by dividing the ag - answer “yes” to question b, c or d, complete ment of Finance for another department, person, gregate number of working days of the vessels it questions 11 and 12. agency or entity to have access (limited or otherwise) to the information contained in his or her return. owns or leases in territorial waters of the City dur - A controlling interest in the case of a corpora - ing the period covered by its report by the aggre - tion means: gate number of working days of all the vessels it G owns or leases during the period. Complete part 2. 50% or more of the total combined vot - ing power of all classes of stock of such Line 1 corporation; or “Working days” means days during which a vessel is sufficiently manned for the carriage G 50% or more of the total fair market value of persons or cargo or during which it has of all classes of stock of such corporation. cargo aboard. The working time in New York City territorial waters and the working Question 13 time everywhere shall be computed for each If you answer “yes” to question 13, no portion of vessel in hours and minutes. At the end of the income, gain, loss, deduction or capital of a the year, such time shall be totalled for all QSSS is permitted to be included in a separate vessels and the sum converted into days. In report filed by the S corporation parent. The lieu of records indicating actual time in New NYC-3L Instructions - 2007 Rev.1