Capital base tax

# (a)

# (1)

Generally, the capital base is the measure of the tax if such calculation results in an amount of tax that is greater than or equal to the business income base tax and greater than the fixed dollar minimum tax.

# (2)

The capital base is the portion of the corporation’s total business capital apportioned to New York State.

# (3)

To compute the tax measured by the capital base, the corporation must multiply its capital base by the tax rate specified in section 210(1)(b).

# (b)

# (1)

Where a group of corporations file a combined report, the combined capital base is the measure of the tax if such calculation results in an amount of tax greater than or equal to the combined business income base tax and greater than the fixed dollar minimum tax that is attributable to the designated agent of the combined group.

# (2)

The combined capital base is the combined total business capital apportioned to New York State.

# (3)

To compute the tax measured by the combined capital base, the combined capital base is multiplied by the tax rate specified in section 210(1)(b).

# (c)

The capital base tax does not apply to:

# (1)

a non-captive RIC;

# (2)

a non-captive REIT;

# (3)

the first two taxable years of a taxpayer that, for one or both such years, is a small business taxpayer;

# (4)

a New York S corporation.

# (d)

For purposes of subdivision (c) of this section, a small business taxpayer, as defined in section 210(1)(f), is required only to pay the higher of the business income base tax or the fixed dollar minimum tax in its first two taxable years. A combined group may qualify as a small business taxpayer if the combined group satisfies the requirements to be a small business taxpayer specified in section 210(1)(f)(i), (ii) and (iv) and each member of the combined group satisfies the requirement in section 210(1)(f)(iii).