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Life Insurance Company Guaranty Corporation (LICGC) credit

Life insurance corporations are eligible, in certain instances, to claim a LICGC credit. The credit is allowed for a portion of the net assessments paid by insurance companies pursuant to Articles 75 and 77 of the Insurance Law and is taken in three equal installments over three tax years, beginning with the first tax year after the next calendar year following the authorized calendar year. The credit is applied against the franchise tax imposed by Article 33, after the application of all other credits, but cannot reduce the tax below the fixed dollar minimum tax. Any unused credit may be carried forward to subsequent tax years. No credit is allowed against the MTA surcharge.

The maximum authorized credit (including any unused credit carryforwards) that can be used by all life insurance companies for a particular tax year is limited to the greater of $40 million or 40% of the total tax liability under Article 33 of all such companies, before credits and not including the MTA surcharge, for tax years beginning in the second preceding calendar year (Tax Law section 1511(f)(3)(B)). The credit as limited is allocated among the life insurance companies in proportion to the net assessments paid by each company. Any credit unused because of this limitation is carried forward and allowed in subsequent tax years.

Additional requirements apply.

How much is the credit?

Claiming the credit

For tax years 2016 and later, the credit is claimed by completing Form CT-33.2 and submitting it with your Form CT-33 or CT-33-A.

For tax year 2015, the credit may be claimed by entering the amount obtained from the online calculator in the “other credits” box in the Summary of tax credits section of Form CT-33 or CT-33-A.

Additional information

  • TSB-M-85(6)CChapters 802 and 803 Life Insurance Company Guaranty Corporation Credit.
  • Tax Law Article 33, Section 1511(f).
  • Statement of Operations from the NYS Department of Financial Services, Exhibit A, Assessments: