Skip universal navigation

New York State Universal header

Skip to main content

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? 

Tax year 2017: 

To determine the amount of credit available to be claimed for tax year 2017, you must complete Form CT-33.2, Life Insurance Company Guaranty Corporation Credit. See the instructions to Form CT-33.2 for additional information.

In order to complete Form CT-33.2, you will need the following:

  • For Form CT-33.2, line 4, column A - Your net assessments paid pursuant to Articles 75 and 77 of the Insurance Law for calendar year 2015. To determine such net assessments amount, use the 2015 Statement of Operations from the NYS Department of Financial Services, Exhibit Bfind your company name/NAIC #, and determine the amount in your row in the Article 77 Assessments Total 2015 column. This is the amount of your net assessments paid in calendar year 2015 pursuant to Article 77 of the Insurance Law.

    Note:
    There were no net assessments paid in calendar year 2015 pursuant to Article 75 of the Insurance Law.

  • For Form CT-33.2, line 6 - The total tax liability under Article 33 of all life insurance companies, before credits and not including the MTA surcharge, for tax years beginning in calendar year 2015. Such tax year 2015 total Article 33 tax liability has been determined by the Commissioner of Taxation and Finance to be:

$xxx,xxx,xxx**

** This amount will be available in early January. You must wait until this amount is available before completing Form CT-33.2.

 

Tax year 2016: 

To determine the amount of credit available to be claimed for tax year 2016, you must complete Form CT-33.2, Life Insurance Company Guaranty Corporation Credit. See the instructions to Form CT-33.2 for additional information.

In order to complete Form CT-33.2, you will need the following:

  • For Form CT-33.2, line 4, column A - Your net assessments paid pursuant to Articles 75 and 77 of the Insurance Law for calendar year 2014. To determine such net assessments amount, use the 2014 Statement of Operations from the NYS Department of Financial Services, Exhibit Bfind your company name/NAIC #, and determine the amount in your row in the Article 77 Assessments Total 2014 column. This is the amount of your net assessments paid in calendar year 2014 pursuant to Article 77 of the Insurance Law.

    Note: There were no net assessments paid in calendar year 2014 pursuant to Article 75 of the Insurance Law.

  • For Form CT-33.2, line 6 - The total tax liability under Article 33 of all life insurance companies, before credits and not including the MTA surcharge, for tax years beginning in calendar year 2014. Such tax year 2014 total Article 33 tax liability has been determined by the Commissioner of Taxation and Finance to be:

$297,959,516


Tax year 2015:

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.

For additional information, see:

Updated: