§ 7712 — Credits for assessments paid

§ 7712. Credits for assessments paid. (a) The superintendent shall\nannually issue a certificate of tax credit for net class A assessments\npaid, and a separate certificate of tax credit for total net class B and\nclass C assessments paid, as such assessments are described in section\nseven thousand seven hundred nine of this article, to an insurance\ncompany that is required to file a tax return pursuant to article\nthirty-three of the tax law. The superintendent shall issue such\ncertificates by March thirty-first of the year following the year in\nwhich the class A, B, and C assessments are paid or to which they are\nallocated pursuant to the provisions of subsection (c) of this section.\nFor the purposes of this section, an insurance company's "net class A\nassessments paid" shall mean its gross class A assessments paid pursuant\nto the provisions of article seventy-five or section seven thousand\nseven hundred nine of this article, less any refunds, recoveries, or\nreimbursements, and an insurance company's "total net class B and class\nC assessments paid" shall mean its gross class B and class C assessments\npaid pursuant to the provisions of article seventy-five or section seven\nthousand seven hundred nine of this article, less any refunds,\nrecoveries, or reimbursements.\n (b) The certificates of tax credit shall set forth the amount of tax\ncredit an insurance company may claim as follows:\n (1) for net class A assessments, the eligible credit amount shall be\nequal to the product of eighty per centum and the company's net class A\nassessments paid; and\n (2) for total net class B and class C assessments, the eligible credit\namount shall be equal to the product of eighty per centum and the\ncompany's total net class B and class C assessments paid, subject to\nsubsection (c) of this section.\n (c)(1) The aggregate amount of tax credits pursuant to this section\nfor total net class B and class C assessments in each calendar year\nshall not exceed one hundred fifty million dollars. The aggregate tax\ncredit amount shall be allocated annually by the superintendent on a pro\nrata basis to each company required to file a tax return pursuant to\narticle thirty-three of the tax law.\n (2) The superintendent shall allocate any tax credit amount that\nexceeds the annual credit cap of one hundred fifty million dollars to\nthe following calendar year and include such amount within the\ncalculation of the eligible credit amount subject to the aggregate\ncredit amount for the succeeding calendar year by the superintendent.\n (3) For companies issued a certificate of tax credit for total net\nclass B and class C assessments, such annual certificate shall set forth\nan amount equal to thirty-three and one-third per centum of the amount\ncalculated under subsection (b) of this section and allocated pursuant\nto paragraph one of this subsection. The amount on the certificate of\ntax credit shall be eligible to be claimed in the taxable year that\nbegins in the calendar year that such certificate is issued.\nThirty-three and one-third per centum of such amount shall be eligible\nto be claimed in each of the two taxable years following such taxable\nyear.\n (d)(1) The superintendent shall, in consultation with the commissioner\nof taxation and finance, develop a certificate of tax credit for net\nclass A assessments, and a certificate of tax credit for total net class\nB and class C assessments. Each certificate shall contain such\ninformation as required by the commissioner of taxation and finance,\nincluding a certificate date.\n (2) The superintendent shall solely determine the tax credit\neligibility of any insurance company and shall revoke any certificate of\ntax credit issued to an insurance company that no longer qualifies for a\ntax credit. The superintendent shall modify the amount of the credit\nshown on any such certificate if the superintendent determines that the\namount certified under subsection (b) of this section was not computed\nproperly pursuant to this section.\n (3) To be issued a certificate of tax credit by the superintendent,\neach insurance company shall:\n (A) agree to allow the department of taxation and finance to share the\ninsurance company's tax information relevant to the administration of\nthis section with the superintendent. However, any information shared\nwith the superintendent as a result of this section shall not be\navailable for public disclosure or inspection under article six of the\npublic officers law;\n (B) allow the superintendent and the corporation access to any and all\nbooks and records the superintendent or corporation may require to\nmonitor compliance with this section; and\n (C) agree to provide any additional information required by the\nsuperintendent relevant to this section.\n