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Definitions for Article 9-A corporations

Information on this page relates to a tax year that began on or after January 1, 2016.

A general business corporation that is subject to tax under Article 9-A is every corporation except:

  • an insurance corporation (including certain for-profit HMOs) (Article 33);
  • a transportation and transmission corporation (other than aviation corporations, corporations principally engaged in transportation, transmission, or distribution of gas, electricity, or steam (TTD corporations), and non-electing railroad and trucking corporations) (Article 9);
  • certain cooperative corporations;
  • a nonstock or not-for-profit corporation, no part of whose net earnings inures to the benefit of any officer, director, or member;
  • a continuing section 186 taxpayer (Article 9).

The business income base equals federal taxable income, minus investment income and other exempt income apportioned to New York State with certain modifications for items of income and deduction that New York treats differently. The current tax rates for business income are as follows: 

 Tax rate
 Tax rate
General business taxpayers 6.5%
Qualified small business taxpayers 6.5%
Qualified New York manufacturers 0.0%
Qualified emerging technology companies (QETCs) 5.5%

The business capital base is the total business capital allocated to New York State after deducting short-term and long-term liabilities attributable to assets. The current tax rate is .125% for general business taxpayers, .106% for qualified New York manufacturers and QETCs, and .04% for qualified cooperative housing corporations. (A new small business corporation may claim an exemption from the tax on this base for its first two tax years if it meets certain requirements.)  The tax on capital is limited to $350,000 for qualified New York manufacturers and QETCs, and $5 million for all other taxpayers.

The fixed dollar minimum (FDM) tax is determined by the corporation's New York State receipts. The current amounts of the FDM tax are as follows:

Fixed dollar minimum tax for general business taxpayers

 General
For a corporation with New York State receipts of:Tax
Not more than $100,000 $25
More than $100,000 but not over $250,000 $75
More than $250,000 but not over $500,000  $175
More than $500,000 but not over $1,000,000  $500
More than $1,000,000 but not over $5,000,000  $1,500
More than $5,000,000 but not over $25,000,000  $3,500
More than $25,000,000 but not over $50,000,000  $5,000
More than $50,000,000 but not over $100,000,000 $10,000
More than $100,000,000 but not over $250,000,000 $20,000
More than $250,000,000 but not over $500,000,000 $50,000
More than $500,000,000 but not over $1,000,000,000 $100,000
Over $1,000,000,000 $200,000

 Fixed dollar minimum tax for qualified New York manufacturers and QETCs

QETCs
For a corporation with New York State receipts of:Tax
Not more than $100,000 $21
More than $100,000 but not over $250,000 $63
More than $250,000 but not over $500,000 $148
More than $500,000 but not over $1,000,000 $423
More than $1,000,000 but not over $5,000,000 $1,269
More than $5,000,000 but not over $25,000,000 $2,961
Over $25,000,000 $4,230

The metropolitan transportation business tax (MTA surcharge) applies to corporations that do business, employ capital, own or lease property, maintain an office , or derive receipts from activity, in the Metropolitan Commuter Transportation District (MCTD). The MCTD includes the counties of New York (Manhattan), Bronx, Kings (Brooklyn), Queens, Richmond (Staten Island), Rockland, Nassau, Suffolk, Orange, Putnam, Dutchess, and Westchester.

Estimated tax is the amount of estimated franchise tax for the current tax year minus the amount of estimated allowable tax credits for the current tax year. A corporation doing business in the Metropolitan Commuter Transportation District that owes estimated franchise tax must also pay an estimated MTA surcharge.

Updated: