Department of Taxation and Finance

Instructions for Form CT-225-A and CT-225-A/B New York State Modifications

(for filers of combined franchise tax returns)

Tax Law: Articles 9-A and 33

CT-225-A-I

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All citations are to New York State Tax Law sections unless specifically noted otherwise.

General information 

Who must file

If you file one of the following forms in column A, and you need to report certain New York additions and subtractions from federal income, you must complete and file Form CT-225-A. These additions and subtractions will be entered on the form and lines in column B.

If you are filing as a combined group with more than one group member other than the group designated agent (for general business corporations) or parent (for life insurance corporations) you must also file Form CT-225-A/B, Group Member’s Detail Spreadsheet. Form CT-225-A/B is a breakdown of certain additions and subtractions claimed by each member.

If you are filing as a combined group with only one member other than the designated agent or parent do not file Form CT-225-A/B; instead, enter the member’s information on Form CT-225-A, column B.

If you are not filing as a member of a combined group under Articles 9-A or 33, you must file Form CT-225, New York State Modifications, instead of Form CT-225-A.

Completing Schedules A and B

You must report the addition and subtraction modifications on this form using the number assigned to each (for example, A-109 or S-117).

Use Schedule A to report New York additions and Schedule B to report New York subtractions. For a list of the modifications, see New York State addition and subtraction modifications.

Schedule A or Schedule B, Part 1

Enter the modification number including the prefix of A or S and the amount of each addition or subtraction modification generated by the entity filing this Form CT-225-A.

Schedule A or Schedule B, Part 2

Enter the modification number including the prefix of EA or ES and the amount of the filer’s share of these modifications that flow through to the entity filing this Form CT-225-A from a partnership, estate, or trust.

Using the same modification number more than once

You may list the same modification number in both Parts 1 and 2 of either Schedule A or B.

Example: For environmental remediation insurance premiums a corporation deducted when it calculated federal income and for which it is taking a New York State tax credit, the corporation enters addition modification number A-212 in Schedule A, Part 1.

Then, for the corporation’s share of the amount of environmental remediation insurance premiums that a partnership, in which the corporation is a partner, has deducted in calculating partnership income federally, the corporation enters number EA-212 in Schedule A, Part 2, if:

• the partnership is allowed a New York State tax credit for those premiums, and
• a share of the credit flowed through to the corporation.

Note: If a corporation is a qualified entity (or a corporate partner of a qualified entity) in any innovation hot spot, you must report on Form CT-225-A the amount of income or gain attributable to those innovation hot spots you reported on Form CT-223, Innovation Hot Spot Deduction. Use subtraction modification number S/ES-216 (see S-216, New York State innovation hot spot deduction).

Additional forms

If you need more room to report all your addition and subtraction modifications, submit additional Forms CT-225-A to list the remaining modifications.

Line instructions for Form CT-225-A

Form CT-225-A provides a column A for the group designated agent (for general business corporations) or parent (for life insurance corporations) and a total group member column B for the other members of the group.

If the combined group consists of more than one member:

1. Enter the amounts from Forms CT-225-A/B in column B.
2. Add columns A and B and enter the result in column C.
3. In column D, enter any intercorporate eliminations.
4. Subtract column D from the subtotal in column C and enter the balance in column E.
5. If the result in column E is zero or less, enter 0. Do not enter a negative amount in column E.

Corporations

• To report certain New York State additions to federal income that did not flow through to you from a partnership, estate, or trust, complete Schedule A, Part 1.
• To report certain New York State subtractions from federal income that did not flow through to you from a partnership, estate, or trust, complete Schedule B, Part 1.

Corporate partners or beneficiaries

• To report your share of certain New York State additions to federal income from a partnership, estate, or trust, complete Schedule A, Part 2.
• To report your share of certain New York State subtractions from federal income from a partnership, estate, or trust, complete Schedule B, Part 2.

Corporate partners filing under Article 9-A: The partnership should report to you the amount of certain New York State additions and subtractions to enter from each partnership on Form IT-204-CP, New York Corporate Partner’s Schedule K-1.

Schedule A: Certain New York State additions to federal income

Part 1: For certain additions to federal income that did not flow through from a partnership, estate, or trust

Lines 1a through 1p: Enter the modification number and amount for each New York State addition that applies. See New York State additions.

Part 2: Corporations’ share of certain additions to federal income from partnerships, estates, or trusts

Lines 3a through 3p: Enter the modification number and amount of each New York State addition that applies. If you are a partner or beneficiary in more than one partnership, estate, or trust, enter the total amount of any specific addition that flows through from all partnerships, estates, or trusts.

Line 5: Enter all amounts on this line as positive numbers. Transfer the amount from column E to Form CT-3-A, Part 3, line 2; or Form CT-33-A, line 74, column E.

Schedule B: Certain New York State subtractions from federal income

Part 1: For certain subtractions from federal income that did not flow through from a partnership, estate, or trust

Lines 6a through 6p: Enter the modification number and amount for each New York State subtraction that applies. See New York State subtractions.

Part 2: Corporations’ share of certain subtractions from federal income from partnerships, estates, or trusts

Lines 8a through 8p: Enter the modification number and amount of each New York State subtraction that applies. If you are a partner or beneficiary in more than one partnership, estate, or trust, enter the total amount of any specific subtraction that flows through from all partnerships, estates, or trusts.

Line 10: Enter all amounts on this line as positive numbers. Transfer the amount from column E to Form CT-3-A, Part 3, line 4; or Form CT-33-A, line 83, column E.

Line instructions for Form CT-225-A/B

Corporations

• To report certain New York State additions to federal income that did not flow through to a group member from a partnership, estate, or trust, complete Schedule A, Part 1.
• To report certain New York State subtractions from federal income that did not flow through to a group member from a partnership, estate, or trust, complete Schedule B, Part 1.

Corporate partners and beneficiaries

• To report a group member’s share of certain New York State additions to federal income from all partnerships, estates, or trusts, complete Schedule A, Part 2.
• To report a group member’s share of certain New York State subtractions from federal income from all partnerships, estates, or trusts, complete Schedule B, Part 2.

Corporate partners filing under Article 9-A

The partnership should report to you the amount of certain New York State additions and subtractions to enter from each partnership on Form IT-204-CP, New York Corporate Partner’s Schedule K-1.

Each group member included in a combined return must:

• provide on this form a breakdown of the amounts reported for that member as certain additions or subtractions to federal income, and
• complete its own Form CT-225-A/B.

Schedule A: Certain New York State additions to federal income

Part 1: For certain additions to federal income that did not flow through from a partnership, estate, or trust

Lines 1a through 1p: Enter the modification number and amount for each New York State addition that applies. See New York State additions.

Part 2: Share of certain additions to federal income from all partnerships, estates, or trusts in which the member is a partner or beneficiary

Lines 1a through 1p: Enter the modification number and amount for each New York State addition that applies. If you are a partner or beneficiary in more than one partnership, estate, or trust, enter the total amount of any specific other addition that flows through from all partnerships, estates, or trusts.

Line 2 (Article 33 filers): Transfer the amount from this line to this member’s column on Form CT-33-A/B, line 74.

Schedule B: Certain New York State subtractions from federal income

Part 1: For certain subtractions from federal income that did not flow through from a partnership, estate, or trust

Lines 3a through 3p: Enter the modification number and amount of each New York State subtraction that applies. See New York State subtractions.

Part 2: Share of certain subtractions from federal income from all partnerships, estates, or trusts in which the member is a partner or beneficiary

Lines 3a through 3p: Enter the modification number and amount of each New York State subtraction that applies. If you are a partner or beneficiary in more than one partnership, estate, or trust, enter the total amount of any specific subtraction that flows through from all partnerships, estates, or trusts.

Line 4 (Article 33 filers): Transfer the amount from this line to this member’s column on Form CT-33-A/B, line 83.

New York State addition and subtraction modifications

New York State additions

A-105 Federal deduction for special additional mortgage recording tax: If you deducted special additional mortgage recording tax when you calculated your federal income, enter that amount if you also claimed a New York State tax credit by filing Form CT-43, Claim for Special Additional Mortgage Recording Tax Credit.

See §§ 208.9(b)(4-a)(A) and 1503(b)(2)(E).

A-106 Special additional mortgage recording tax basis adjustment: If the property on which you paid a special additional mortgage recording tax was sold or disposed of, enter the amount, if any, of the federal basis of the property that was not adjusted to reflect the amount of special additional mortgage recording credit previously allowed on Form CT-43.

See §§ 208.9(b)(4-a)(B) and 1503(b)(2)(F).

A-110 Qualified emerging technology investments: If you (1) elected to defer the gain from the sale of qualified emerging technology investment because you reinvested in a New York State qualified emerging technology company and (2) sold that reinvestment during the current tax year, enter the amount you previously deferred.

See §§ 208.9(m) and 1503(b)(13). Also see S-115.

A-203 Safe harbor leases (CT-3-A filers only): If, when you calculated your federal income, you claimed a deduction attributable to a safe harbor lease (except for mass transit vehicles) solely as a result of an election made under IRC § 168(f)(8) as it was in effect on December 31, 1983, enter that deduction. 

See § 208.9(b)(8). Also see A-204, S-208, and S-209.

A-204 Safe harbor leases (CT-3-A filers only): If your financial matters during the tax year involved a safe harbor lease (except for mass transit vehicles) made under the election provided for by IRC § 168(f)(8) as it was in effect on December 31, 1983, enter the income you would have included in federal income if you had not made the election.

See § 208.9(b)(9). Also see A-203, S-208, and S-209.

A-207 Federal deduction for farmers’ school taxes (CT-3-A filers only): If, when you calculated your federal income, you deducted real property taxes on qualified agricultural property and you claimed the farmers’ school tax credit on Form CT-47, Claim for Farmers’ School Tax Credit, enter the lesser of the amount of the deduction or the amount of the credit allowed.

See § 208.9(b)(15).

A-208 Federal IRC § 179 deduction for a sport utility vehicle (CT-3-A filers only): If you are not an eligible farmer, you are required to add back the amount of the deduction claimed in calculating federal income.

See § 208.9(b)(16).

A-211 Royalty payments: If, during the tax year, you paid, accrued, or incurred royalty payments in connection with one or more transactions with one or more related members, enter the amount of these payments to the extent deductible when calculating federal income.

There are exceptions to this addition modification (see TSB-M-13(6)C, Summary of Budget Bill Corporation Tax Changes Enacted in 2013 - Effective for Tax Years 2013 and After).

If you believe you do not need to make this modification because one of the exceptions applies, attach a statement to your return:

• explaining how you meet each requirement for the exception, and
• indicating the amount of royalty payments excluded.

In addition, CT-3-A filers must mark the box on Form CT-3-A, Part 1, Section B, line 4.

See §§ 208.9(o) and 1503(b)(14).

A-212 Federal deduction for environmental remediation insurance premiums: If, when determining federal income, you deducted premiums for environmental remediation insurance and claimed the environmental remediation insurance credit by filing Form CT-613, Claim for Environmental Remediation Insurance Credit, enter the lesser of the amount of deductions or the amount of the credit allowed.

See §§ 208.9(b)(18) and 1503(b)(2)(N-1).

A-214 Federal deduction for the metropolitan commuter transportation mobility tax under Article 23 (CT-33-A filers only): If you claimed a federal deduction for the metropolitan commuter transportation mobility tax, enter the amount deducted in determining federal income.

See § 1503(b)(2)(V).

A-216 Federal deduction for real property taxes of manufacturers (CT-3-A filers only): If you claimed any federal deduction for real property taxes and you also claimed the manufacturer’s real property tax credit by filing Form CT-641, Manufacturer’s Real Property Tax Credit, enter the amount of the federal deduction for real property taxes you used as the basis of the calculation of that credit.

See § 208.9(b)(21).

A-217 Federal deduction for Tax Law § 186-e tax that flow through to a START-UP NY business (CT-3-A filers only): If you claimed any federal deduction for the New York State excise tax on telecommunication services that were passed on to you by your telecommunication provider, and you also claimed the START-UP NY telecommunication services excise tax credit on Form CT-640, START-UP NY Telecommunication Services Excise Tax Credit, enter the amount of the federal deduction for excise taxes of telecommunication services you used as the basis of the calculation of that credit.

See § 208.9(b)(20-a).

A-218 Farm donations to food pantries (CT-3-A filers only): If you claimed any federal deduction for charitable contributions allowed under IRC § 170 and you claimed the farm donations to food pantries credit by filing Form CT-649, Farm Donations to Food Pantries Credit, enter the amount of the contributions used as the basis of the calculation of that credit.

See § 208.9(b)(22).

A-221 Investments in a qualified opportunity fund: If you excluded a gain invested in a qualified opportunity fund from federal income in the current tax year as a result of IRC § 1400Z-2(a)(1)(A), enter the amount of the gain.

See §§ 208.9(b)(27) and 1503(b)(2)(Z). Also see S-218.

A-502 Addback pursuant to §§ 208.9(c-2) and 208.9(c-3) (CT-3-A filers only): Qualified public utility corporations, qualified power producers, and qualified pipeline corporations, see Form CT-224-I, Instructions for Form CT-224.

Also see S-503.

A-504 Interest on federal, state, municipal, and other obligations not included in federal income (only CT-3-A filers that are not alien corporations; alien corporations see A-508): Include all interest received or accrued from federal, state, municipal, and other obligations that was exempt from federal income tax and is, therefore, not included in federal income.

See § 208.9(b)(2). Also see S-510.

A-505 Certain taxes deducted on your federal return (CT-3-A filers only):

• Include all amounts deducted for New York State taxes imposed under Articles 9 (§§ 183, 183-a, 184, 184-a), 9-A, 23, and former Article 32. This includes the metropolitan transportation business tax (MTA surcharge). However, do not include New York City taxes.
• Include the amount deducted for taxes paid or accrued to the United States, or any of its possessions, territories or commonwealths, other U.S. states or their political subdivisions, and the District of Columbia, if the tax or taxes:
  • are on or are measured by profits or income, or
  • include profits or income as a measure of tax, including taxes expressly in place of the foregoing.

See §§ 208.9(b)(3), 208.9(b)(3-a), 208.9(b)(4), and 208.9(b)(20).

A-506 Federal treaty obligations (only CT-3-A filers that are alien corporations):

Enter any income exempt from federal income under any treaty obligation of the United States, if:

• under any provision of the IRC you are not treated as a domestic corporation as defined in IRC § 7701, and
• the income would be treated as effectively connected in the absence of such exemption, provided that the treaty obligation does not preclude the taxation of this income by a state.

Attach a statement to your return with:

• each amount that is included in the total addback amount being reported, and
• a brief description of what the amount represents.

See § 208.9(b)(1)(ii). Also see S-509.

A-507 Federal depreciation from Form CT-399, if applicable (CT-3-A filers only): If the corporation:

• claims the federal accelerated cost recovery system/modified accelerated cost recovery system deduction for property placed in service either in or outside New York State after 1980 in tax periods beginning before 1985; or
• claims the federal accelerated cost recovery system/modified accelerated cost recovery system deduction for property placed in service outside New York State in tax periods beginning after 1984 and before tax periods beginning in 1994, and the corporation made the election to continue using the IRC § 167 depreciation deduction for the property; or
• claims a federal special depreciation deduction under IRC § 168(k) for qualified property (excluding qualified resurgence zone property described in § 208.9(q) or qualified New York liberty zone property described in IRC § 1400L(b)(2)) placed in service on or after June 1, 2003, in tax years beginning after December 31, 2002; or
• disposes this year of either accelerated cost recovery system/modified accelerated cost recovery system property, or property for which you claimed a federal special depreciation deduction under IRC § 168(k), and the New York depreciation modifications applied to the property in any prior years,

include the amount from Form CT-399, line 3, column E; or if you have disposed of property this year use the amount from Form CT-399, line 10, column A.

See §§ 208.9(b)(10), 208.9(b)(11), 208.9(b)(17), and 208.9(p). Also see S-507.

A-508 Dividend or interest income received, or accrued, by alien corporations (only CT-3-A filers that are alien corporations): Enter any part of any income received, or accrued, from dividends or interest on any kind of stock, securities, or indebtedness, if:

• under any provision of the IRC you are not treated as a domestic corporation as defined in IRC § 7701,
• the income received or accrued is treated as effectively connected with the conduct of a trade or business in the United States under IRC § 864, and
• the income is not included in your federal income.

See §§ 208.9(b)(1)(i) and 208.9(b)(1)(iii). Also see S-511.

A-510 IRC § 965(c) deduction amount (only CT-3-A and CT-33-A filers that have a combined group member that is a captive real estate investment trust or a CT-3-A filer that is a non-captive real estate investment trust filing with its qualified real estate investment trust subsidiary): You must include the amount of deduction allowed under IRC § 965(c) to the extent that amount was deducted when calculating your federal income reported on Form CT-3-A, Part 3, line 1g, or, for Form CT-33-A, on Schedule D, line 64 (do not include this amount on Form CT-3-A, Part 3, line 1c, or on Form CT-33-A, Schedule D, line 65).

See § 208.9(b)(23).

A-602 Unearned premiums (CT-33-A filers only): Include the amount of unearned premiums on outstanding business at the end of the preceding tax year excluded from premiums earned as a result of IRC §§ 832(b)(4)(B), 832(b)(7)(B)(i), and 832(b)(8)(A)(i).

See §§ 1503(b)(2)(O), 1503(b)(2)(P), and 1503(b)(2)(Q).

A-603 Discounted unpaid losses (CT-33-A filers only): Include the difference between the amount of discounted unpaid losses at the end of the preceding tax year used in the calculation of losses incurred as a result of IRC § 832(b)(5)(A), and the amount of unpaid losses at the end of the preceding tax year that you would have used in your calculation if these losses were not discounted for federal income tax purposes. Attach a copy of the loss reserves discount summary schedule you used to calculate discounted unpaid losses from federal Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return, and a copy of Schedule P, Analysis of Losses and Loss Expenses, Part 1, Summary, from the prior year’s Annual Statement.

See § 1503(b)(2)(R).

A-605 Deductions attributable to IRC § 965(a) inclusion amount (only CT-33-A filers that have a combined group member that is a captive real estate investment trust): To the extent not included on Form CT-33-A, line 69, you must include:

• interest deductions directly or indirectly attributable to IRC § 965(a) inclusion amounts, and
• any other amount directly attributable to IRC § 965(a) inclusion amounts.

See § 1503(b)(2)(H). Also see S-605.

A-606 Deductions attributable to IRC § 951A(a) (CT-33-A filers only): To the extent not included on Form CT-33-A, line 69, you must include:

• interest deductions directly or indirectly attributable to the income described in §§ 1503(b)(1)(U) and 1503(b)(1)(V), and
• any other amount directly attributable to the income described in §§ 1503(b)(1)(U) and 1503(b)(1)(V).

See § 1503(b)(2)(H). Also see S-606 and S-607.

New York State subtractions

S-111 Distributions made to victims or targets of Nazi persecution: Include the amount received (including accumulated interest) from an eligible settlement fund, or from an eligible grantor trust established for the benefit of these victims or targets, if included in your federal income.

Do not include amounts received from assets acquired with those assets or with the proceeds from the sale.

See § 13.

S-115 Qualified emerging technology investments:

A qualified emerging technology investment is an investment in the stock of a corporation, or an ownership interest in a partnership or limited liability company that is a qualified emerging technology company, or an investment in a partnership or a limited liability company to the extent that the partnership or limited liability company invests in these companies.

You may defer the gain on the sale of qualified emerging technology investments that are:

• held for more than 36 months, and
• rolled over into the purchase of a qualified emerging technology investment within the 365-day period beginning on the date of sale.

However, you must:

• recognize the amount realized on the sale of the original qualified emerging technology investment that exceeds the cost of a replacement qualified emerging technology investment;
• apply gain deferral only to any qualified emerging technology investment sold on or after March 12, 1998, that meets the holding-period criteria; and
• add back the gain deferred in the year the replacement qualified emerging technology investment is sold.

If you elect to defer the gain from the sale of a qualified emerging technology investment, enter the amount of the gain deferral (to the extent the gain is included in federal income).

Purchase of replacement qualified emerging technology investment: If purchase of the replacement qualified emerging technology investment within the 365-day period occurs in:

• the same tax year as the sale of the original qualified emerging technology investment, take the deduction on that return;
• the following tax year and before the date the corporation’s franchise tax return is filed, take the deduction on that return; or
• the following tax year and on or after the date the corporation’s franchise tax return is filed, file an amended return to claim the deduction.

For more information, see TSB-M-98(7)C, 1998 Summary of Corporation Tax Legislative Changes.

See §§ 208.9(a)(14) and 1503(b)(1)(Q).

S-205 Wage and salary expenses allowed as federal credits but not as federal expenses: Include the amount of wages disallowed under IRC § 280C in the calculation of your federal income because you claimed a federal credit.

Attach a copy of the appropriate federal credit form.

See §§ 208.9(a)(7) and 1503(b)(1)(D).

S-208 Safe harbor leases (CT-3-A filers only): Include all amounts that were included in your federal income solely as a result of an election made under IRC § 168(f)(8) as it was in effect on December 31, 1983.

Leases for qualified mass-commuting vehicles as defined in IRC § 103(b)(9) do not qualify for this adjustment.

See § 208.9(a)(9). Also see S-209, A-203, and A-204.

S-209 Safe harbor leases (CT-3-A filers only): Include all amounts you could have excluded from your federal income if you had not made the election provided for in IRC § 168(f)(8) as it was in effect on December 31, 1983.

Leases for qualified mass-commuting vehicles as defined in IRC § 103(b)(9) do not qualify for this adjustment.

See § 208.9(a)(10). Also see S-208, A-203, and A-204.

S-212 Federal IRC § 179 deduction recapture for a sport utility vehicle (CT-3-A filers only): If you previously claimed an IRC § 179 deduction with respect to a sport utility vehicle, you must include the amount of that deduction that was recaptured in calculating federal income.

See § 208.9(a)(16).

S-215 Refund of certain business tax credits: Include the amount of refund of certain New York State business tax credits that you are required to include in your federal income.

For more information, see TSB-M-10(9)C, (15)I, New York State Tax Treatment of Refunds of the Qualified Empire Zone Enterprise (QEZE) Credit for Real Property Taxes.

S-216 New York State innovation hot spot deduction (CT-3-A filers only): Include any income or gain included in the calculation of federal income attributable to the innovation hot spot (as reported on Form CT-223, Innovation Hot Spot Deduction, column G). A taxpayer who claims this benefit is no longer eligible for any other New York State exemption, deduction, credit, or refund under the Tax Law to the extent that such exemption, deduction, credit, or refund is attributable to the business operations of a tenant in, or as part of, the New York State innovation hot spot.

Claiming this subtraction represents an irrevocable election.

See § 208.9(a)(18).

S-218 Gains from qualified opportunity fund investments: If you included in your federal income a gain from a qualified opportunity fund investment in the current tax year, enter the amount of the gain (or portion of) that was previously added back when you calculated your entire net income.

See §§ 208.9(a)(21) and 1503(b)(1)(W). Also see A-221.

S-220 Deductions related to the production and distribution of adult-use cannabis products (CT-3-A filers only): Include the amount of any federal deduction disallowed under IRC § 280E related to the production and distribution of adult-use cannabis products (as defined under Article 20-C), provided that the amount:

• was not used as the basis for any other tax deduction, exemption, or credit; and
• was not otherwise required to be added back when calculating New York State taxable income.

See § 208.9(a)(23).

S-501 Taxable refunds or credits of certain taxes: Include any refund or credit of a tax that:

• is now being properly included as income for federal income tax purposes and for which no exclusion or deduction was allowed in determining the taxpayer’s entire net income for any prior year, and
• was previously added back on:
  • Form CT-3-A, line 6 (for years prior to 2015) or Form CT-225-A (see A-505), other than taxes paid or accrued to the United States or any of its possessions, territories or commonwealths, other U.S. states or their political subdivisions, and the District of Columbia; or
  • Form CT-33-A, line 70 or 74.

Do not include on this line:

• any refund or credit of tax that was used to offset an addition of tax on Form CT-3-A, CT-225-A, or CT-33-A; or
• any refund or credit of New York City taxes.

See §§ 208.9(a)(5) and 1503(b)(1)(C).

S-503 Deductions pursuant to §§ 208.9(c-2) and 208.9(c-3) (CT-3-A filers only): Qualified public utility corporations, qualified power producers, and qualified pipeline corporations, see Form CT-224-I.

Also see A-502.

S-504 Receipts from the operation of school buses (CT-3-A filers only): Include all receipts included in the calculation of federal income from the transportation of pupils, teachers, and others acting in a supervisory capacity to and from school or school activities, minus any deductions allowed in calculating federal income that are directly or indirectly attributable to those receipts.

See § 208.9(a)(4).

S-507 Allowable New York State depreciation from Form CT-399, if applicable (CT-3-A filers only): If the corporation:

• claims the federal accelerated cost recovery system/modified accelerated cost recovery system deduction for property placed in service either in or outside New York State after 1980 in tax periods beginning before 1985; or
• claims the federal accelerated cost recovery system/modified accelerated cost recovery system deduction for property placed in service outside New York State in tax periods beginning after 1984 and before tax periods beginning in 1994, and the corporation made the election to continue using the IRC § 167 depreciation deduction for the property; or
• claims a federal special depreciation deduction under IRC § 168(k) for qualified property (excluding qualified resurgence zone property described in § 208.9(q) or qualified New York liberty zone property described in IRC § 1400L(b)(2)) placed in service on or after June 1, 2003, in tax years beginning after December 31, 2002; or
• disposes this year of either accelerated cost recovery system/modified accelerated cost recovery system property, or property for which you claimed a federal special depreciation deduction under IRC § 168(k), and the New York depreciation modifications applied to the property in any prior years,

include the amount from Form CT-399, line 3, column I, or, if you have disposed of property this year, use the amount from Form CT-399, line 10, column B.

See §§ 208.9(a)(11), 208.9(a)(12), 208.9(a)(17), and 208.9(p). Also see A-507.

S-508 Amounts treated as IRC § 78 dividends (CT-3-A filers only): You may deduct any amount treated as dividends under IRC § 78 to the extent that this deduction is not already reflected in your federal income reported on Form CT-3-A, Part 3, line 1g.

See § 208.9(a)(6).

S-509 Expenses related to federal treaty obligations (only CT-3-A filers that are alien corporations): If under any provision of the IRC, you are not treated as a domestic corporation as defined in IRC § 7701, enter any expenses attributable to income that is not included in federal income due to a federal tax treaty.

Also see A-506.

S-510 Expenses related to interest on federal, state, municipal, and other obligations not included in federal income (only CT-3-A filers that are not alien corporations; alien corporations see S-511): Include any expense that was denied deductibility under IRC § 265 and is attributable to the exempt interest received, or accrued, on federal, state, municipal, and other obligations.

Also see A-504.

S-511 Expenses related to dividend or interest income received, or accrued, by alien corporations (only CT-3-A filers that are alien corporations): You may deduct any expenses not included in the calculation of your federal income attributable to income received, or accrued, from dividends or interest on any kind of stock, securities, or indebtedness, if:

• under any provision of the IRC you are not treated as a domestic corporation as defined in IRC § 7701, and
• the income received or accrued is treated as effectively connected with the conduct of a trade or business in the United States under IRC § 864.

Also see A-508.

S-513 Amount excluded from the term contribution to capital by IRC § 118(b)(2) (CT-3-A and CT-33-A filers only): Enter the amount of contributions to your capital that you included in your federal income as a result of IRC § 118(b)(2).

See §§ 208.9(a)(20) and 1503(b)(1)(T).

S-601 Unearned premiums (CT-33-A filers only): Include the amount of unearned premiums on outstanding business at the end of the tax year included in premiums earned as a result of IRC §§ 832(b)(4)(B), 832(b)(7)(B)(i), and 832(b)(8)(A)(i).

See §§ 1503(b)(1)(J), 1503(b)(1)(K) and 1503(b)(1)(L).

S-602 Discounted unpaid losses (CT-33-A filers only): Include the difference between the amount of discounted unpaid losses at the end of the tax year used in the calculation of losses incurred as a result of IRC § 832(b)(5)(A), and the amount of unpaid losses at the end of the tax year that would have been used in such calculation if these losses were not discounted for federal income tax purposes.

Attach a copy of the loss reserves discount summary schedule you used to calculate discounted unpaid losses from federal Form 1120-PC, and a copy of Schedule P, Analysis of Losses and Loss Adjustment Expenses, Part 1, Summary, from the current year’s Annual Statement.

See § 1503(b)(1)(N).

S-604 IRC § 832(b)(5)(B) (CT-33-A filers only): Include the amount by which losses incurred were reduced as a result of IRC § 832(b)(5)(B).

See § 1503(b)(1)(O).

S-605 IRC § 965(a) inclusion amount (only CT-33-A filers that have a combined group member that is a captive real estate investment trust): You must include the amount of your IRC § 965(a) inclusion.

See § 1503(b)(1)(S). Also see A-605.

S-606 Amounts treated as IRC § 78 dividends (CT-33-A filers only): Include any amount treated as a dividend under IRC § 78 that is attributable to the global intangible low-taxed income included in federal gross income based on IRC § 951A(a), to the extent this amount is not included on Form CT-33-A, line 76.

See § 1503(b)(1)(V). Also see A-606.

S-607 Global intangible low-taxed income exclusion (CT-33-A filers only): Include 95% of the income required to be included in your federal income based on IRC § 951A(a), without regard to the IRC § 250 deduction, to the extent this amount is not included on Form CT-33-A, line 76.

See § 1503(b)(1)(U). Also see A-606.

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See Form CT-1, Supplement to Corporation Tax Instructions.