20 NYCRR § 4-2.8

Net interest income from reverse repurchase agreements and securities borrowing

Official textus-ny/regstax.ny.gov

agreements. (Tax Law, section 210-A(5)(a)(2)(E))

# (a)

8% of net interest income (not less than zero) from reverse repurchase agreements and securities borrowing agreements is included in New York receipts. Net interest income (not less than zero) from reverse repurchase agreements and securities borrowing agreements is included in everywhere receipts.

# (b)

Net interest income from reverse repurchase agreements and securities borrowing agreements is determined for purposes of this section after the deduction of the interest expense from the corporation’s repurchase agreements and securities lending agreements, but cannot be less than zero. For this calculation, the amount of such interest expense is the interest expense associated with the sum of the value of the corporation’s repurchase agreements where it is the seller/borrower plus the value of the corporation's securities lending agreements where it is the securities lender, provided such sum is limited to the sum of the value of the corporation's reverse repurchase agreements where it is the purchaser/lender plus the value of the corporation’s securities lending agreements where it is the securities borrower.

# (c)

Example.
Corporation A has $4,000 of interest income from reverse repurchase agreements and $5,000 of interest expense from repurchase agreements.
Corporation A also has $6,000 of interest income from securities borrowing agreements and $3,000 of interest expense from securities lending agreements for the same year. To determine the amount of net interest income from these transactions, Corporation A must reduce the sum of the interest income from reverse repurchase agreements and securities borrowing agreements by the sum of the interest expense from repurchase agreements and securities lending agreements. The result is $2,000 ($4,000 + $6,000 - $5,000 -$3,000) of net interest income from reverse repurchase and securities borrowing agreements that is included in everywhere receipts. Corporation A must also report $160 (8% of $2,000) in New York receipts.

Source: official source document (DTF adopted rule text, December 2023 corporate reform)

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