Instructions for Form NYC-2A

Combined Business Corporation Tax Return for fiscal years beginning in 2022 or for calendar year 2022

 Highlights         of Recent Tax Law Changes for Business Corporations

 l Section 7 of Chapter 555 of the Laws of 2022 amended section 11-653 of the of the Administrative Code of the City of New York 
   (the “Ad. Code”), adopting economic nexus provisions for New York City. For taxable years beginning on or after January 1, 
   2022, a corporation will be subject to the Business Corporation Tax if it derives $1 million or more of receipts from activity in New 
   York City. A corporation that does not have $1 million of receipts, but derives at least $10,000 of receipts from activity in the City 
   and is part of a unitary group of corporations that meets the ownership test under Ad. Code section 11-654.3, will be subject to the 
   tax if the aggregate receipts of all members of such unitary group that derive at least $10,000 of receipts from activity in the City, 
   is $1 million. Additionally, a corporation that is a credit card issuer that does not meet any of the thresholds set out in section 11-
   653(1)(c), but that has at least 10 customers, or locations, or customers and locations, as described in section 11-653(1)(c), and is 
   part of a unitary group of corporations that meets the ownership test under section 11-654.3, will be subject to the tax if the ag-
   gregate number of customers, or locations, or customers and locations of all members of such unitary group that have at least 10 
   customers, or locations, or customers and locations, meets any of the threshold requirements set out in section 11-653(1)(c). 
  
 l Pursuant to Administrative Code section 11-654.3(3), a corporation may elect to treat all corporations that meet the ownership re-
   quirements of section 11-654.3(2)(a) (“commonly owned group”) as its combined group whether or not such corporations are en-
   gaged in a unitary business. Once made, the election is irrevocable for the year in which it was made and the subsequent six tax years. 
   After such time, the election will automatically renew for another period of 7 tax years, unless revoked by the designated agent of 
   the group on an original timely filed return for the first taxable year after the completion of the seven year period for which the elec-
   tion was in effect. Tax year 2022 is the first tax year in which a revocation of the commonly owned group election can be made, for 
   those taxpayers that made such election in tax year 2015. See Revocation of the Commonly Owned Group Election instructions.  
  
 l Section 5 of Chapter 555 of the Laws of 2022 added a new subparagraph 17 to Administrative Code section 11-652(8)(a), which 
   excludes from entire net income (i.e., taxable business income) the amount of any grant received through either the COVID-19 
   Pandemic Small Business Recovery Grant program pursuant to section 16-ff of the New York State Urban Development Corpo-
   ration Act or the New York City Small Business Resilience Grant program administered by the New York City Department of Small 
   Business Services to the extent the amount of either such grant is included in federal taxable income. 
  
 l For details on the proper reporting of income and expenses addressed in the federal Tax Cuts and Jobs Act of 2017, such as manda-
   tory deemed repatriation income, foreign-derived intangible income (FDII), global intangible low-taxed income (GILTI), please 
   refer to Finance Memorandum 18-9.  For information about the IRC section 163(j) limitation on the business interest expense de-
   duction, please refer to Finance Memorandum 18-11. 
  
 l In general, for tax years beginning in or after 2018, taxpayer combined groups which allocate business income and business cap-
   ital inside and outside New York City must do so using their receipts factor (i.e. the percentage of all receipts that are from 
   sources inside New York City).  See Administrative Code sections 11-654(3)(a)(10)(x) and 11-654.2.  However, a combined 
   group with NYC receipts of $50,000,000 or less that allocates business income and business capital may make a one-time elec-
   tion to allocate business income and business capital using the three-factor weighted formula applicable to the 2017 tax year.  See 
   Administrative Code section 11-654(3)(a)(10)(xii).

GENERAL INFORMATION                          corporation, or qualified subchapter S    S CORPORATIONS 
                                             subsidiary, under subchapter S of the In-  
Subchapter 3-A (“Subchapter 3-A”) of         ternal Revenue Code of 1986 (“IRC”), as   If subject to GCT, an S corporation must 
Chapter 6 of Title 11 of the Administra-     amended (collectively,“S Corporations”).  file a GCT return (generally Form NYC-
tive Code of the City of New York (the       S corporations are subject to tax under   4S, Form NYC-4S-EZ or Form NYC-3L). 
“Ad. Code”) applies to tax years starting    the GCT and Banking Corporation Tax.      If subject to Bank Tax, an S corporation 
on or after January 1, 2015. This sub-       Corporations subject to Subchapter 3-A,   must file a Banking Corporation Tax re-
chapter applies to corporations that were    Business Corporation  Tax, must file      turn (generally Form NYC-1). Under cer-
previously subject to the General Corpo-     Form NYC-2 unless they are required or    tain limited circumstances, an S 
ration  Tax (“GCT”), Subchapter 2 of         permitted to file as members of a com-    corporation may be permitted or required 
Chapter 6 of Title 11 of the Code, and the   bined group, in which case they would be  to file a combined return (Form NYC-3A 
Banking Corporation Tax, Subchapter 3        included on this form.                    for GCT or Form NYC-1A for Bank Tax, 
of Title 11 of the Code, except that it does                                           whichever is applicable). See, e.g., Fi-
not apply to any corporation that is an S                                              nance Memorandum 99-3, New York City 
                                                                                       Tax Treatment of Federal S Elections by 

 Instructions for Form NYC-2A - 2022                                                                            Page 2

Banking Corporations and Qualified Sub-       riod begins within seven days from the         653(1)(c), and is part of a unitary group of 
chapter S Subsidiaries” for information       first day of any calendar month, the tax       corporations that meets the ownership test 
regarding the treatment of qualified sub-     year is deemed to begin on the first day of    under section 11-654.3, will be subject to 
chapter S subsidiaries. For additional re-    that calendar month. If a 52-53 week ac-       the tax if the aggregate number of cus-
quirements see the instructions to those      counting period ends within seven days         tomers, or locations, or customers and lo-
forms. An S corporation may not be in-        from the last day of any calendar month,       cations of all members of such unitary 
cluded in this return.                        the tax period will be deemed to end on        group that have at least 10 customers, or 
                                              the last day of the calendar month.            locations, or customers and locations, 
Corporate Tax Filing Requirements                                                            meets any of the threshold requirements set 
                                              Corporations Subject to  Tax under             out in section 11-653(1)(c).  “Receipts” 
For tax years beginning on or after Janu-     Subchapter 3-A                                 means the receipts that are subject to the 
ary 1, 2015, including short periods, all                                                    allocation rules under Ad. Code section 11-
federal C corporations subject to tax         CORPORATION DEFINED                            654.2, and the term “receipts within the 
under Subchapter 3-A (including those         Any entity that is an association taxable      City” means the receipts included in the 
corporations formerly subject to the Bank     as a corporation for federal income tax        numerator of the receipts fraction deter-
Tax) must file using the following re-        purposes pursuant to IRC §7701(a)(3) is        mined under Ad. Code section 11-654.2. 
turns, as applicable:                         treated as a corporation for City tax pur-     Also, receipts from processing credit card 
                                              poses including an unincorporated entity       transactions for merchants include merchant 
•  Form NYC-2, Business Corporation           that elects to be taxable as a corporation.    discount fees received by the corporation.  
   Tax Return                                 Unincorporated entities that are taxable        
                                              under the Business Corporation Tax are         Pursuant to section 21 of Chapter 201 of 
•  Form NYC-2A, Business Corpora-             not subject to the Unincorporated Busi-        the Laws of 2009, for tax years beginning 
   tion Combined Tax Return. When             ness Tax. Eligible entities having a single    on or after January 1, 2011, the Banking 
   filing Form NYC-2A,                        owner disregarded as a separate entity         Corporation Tax was amended to provide 
                                              under the “check-the-box” rules and            criteria by which banking corporations, 
•  Form NYC-2A/BC, Member’s Detail            treated as either a sole proprietorship or a   engaged in the business of credit card 
   Report, Filed by a Corporation In-         branch for federal tax purposes will be        transactions and not otherwise doing busi-
   cluded in a Combined Business Tax          similarly treated for City tax purposes.       ness in New York City, would be subject 
   Return, must be filed by each mem-         See Finance Memorandum 99-1 for ad-            to tax if they met certain criteria, regard-
   ber of the combined group, except for      ditional information.                          ing credit card customers or merchant 
   the designated agent, including non-                                                      customer contracts in the City. Some of 
   taxpayer members, beginning on or          Corporations Required to File a Busi-          these criteria were carried over and incor-
   after January 1, 2015.                     ness Corporation Tax Return                    porated into the Business Corporation 
                                              Corporations, other than S corporations,       Tax. Pursuant to these criteria, a corpora-
Any return filed on an incorrect form, or     doing business, employing capital, owning      tion is doing business in the City if (1) it 
on a form for the wrong year,  may not be     or leasing property, maintaining an office     has issued credit cards (bank, credit, 
processed and will not be considered          or deriving receipts from activity in the      travel and entertainment) to one thousand 
timely filed. As a result, penalties and in-  City are required to file a Business Corpo-    or more customers who have a mailing 
terest may be incurred. Use this tax return   ration Tax return. A corporation is consid-    address in the City as of the last day of its 
for calendar year 2022, fiscal years that     ered to be deriving receipts in the City if it taxable year and (2) it has merchant cus-
begin in 2022 and end in 2023, and tax        has receipts within New York City of $1        tomer contracts with merchants and the 
years of less than 12 months that begin on    million or more in a tax year. Further, a      total number of locations covered by 
or after January 1, 2022, but before Janu-    corporation that does not have $1 million      those contracts equals one thousand or 
ary 1,  2023. If you have a tax year of less  of receipts, but derives at least $10,000 of   more locations in the City to whom the 
than 12 months that begins and ends in        receipts from activity in the City and is part corporation remitted payment for credit 
2023 and the 2023 return is not yet avail-    of a unitary group of corporations that        card transactions during the taxable year, 
able at the time you are required to file the meets the ownership test under §11-654.3,      or (3) the sum of the number of customers 
return, you may also use this form.  See      will be subject to the tax if the aggregate    described in (1) plus the number of loca-
the instructions under “Specific Instruc-     receipts of all members of such unitary        tions covered by its contracts describe in 
tions—Period Covered” on page 7.              group that derive at least $10,000 of re-      (2) equals one thousand or more.  
                                              ceipts from activity in the City, is $1 mil-    
Taxpayers using a 52-53 week year – A         lion. Additionally, a corporation that is a    Corporate Partners 
taxpayer who reports on the basis of a 52-    credit card issuer that does not meet any of    
53 week accounting period for federal in-     the thresholds set out in section 11-          • If a partnership is doing business, 
come tax purposes may report on the           653(1)(c), but that has at least 10 cus-         employing capital, owning or leasing 
same basis for Business Corporation Tax       tomers, or locations, or customers and           property, maintaining an office or de-
purposes. If a 52-53 week accounting pe-      locations, as described in section 11-           riving receipts from activity in New 

 Instructions for Form NYC-2A - 2022                                                                             Page 3

  York City, then a corporation that is    • The keeping of books or records of a         • which owns or controls, either di-
  a general partner in that partnership      corporation in the City if such books          rectly or indirectly, more than 50% of 
  is subject to tax and must file Form       and records are not kept by employ-            the voting power of the capital stock 
  NYC-2.                                     ees of the corporation and the corpo-          of one or more other corporations;  or
                                             ration does not otherwise do                  
• If a partnership is doing business,        business,  employ capital, own or            • more than 50% of the voting power of 
  employing capital, owning or leasing       lease property, or maintain an office          the capital stock of such taxpayer is 
  property, maintaining an office or de-     in the City; or                                owned or controlled, either directly or 
  riving receipts from activity in New                                                      indirectly, by another corporation; or 
  York City, then a corporation that is    • Any combination of the activities             
  a limited partner of that partnership      listed above.                                • more than 50% of the voting power 
  may be subject to tax pursuant to the                                                     of the capital stock of such taxpayer, 
  regulations promulgated by the Com-        All business corporations subject to           and the capital stock of one or more 
  missioner of Finance.                      tax under Subchapter 3-A must file             other corporations, is owned or con-
                                             Business Corporation  Tax returns              trolled, directly or indirectly, by the 
  An LLC or LLP that is treated as a         using Form NYC-2, unless such cor-             same interests; and 
  partnership for federal income tax         porations are required or permitted to        
  purposes will be treated as a part-        file as members of a combined group.         • that is engaged in a unitary business 
  nership for New York City tax pur-                                                        with such other corporations; 
  poses.                                   Alien corporations – An alien corporation       
                                           (a corporation  organized under the laws of    must file a combined return with those 
  A corporation shall not be deemed to     a country, or any political subdivision        other corporations. 
  be doing business, employing capital,    thereof, other than the United States, or or-   
  owning or leasing property, main-        ganized under the laws of a possession, ter-   A corporation required to file a combined 
  taining an office or deriving receipts   ritory or commonwealth of the United           return also includes (§11-654.3(2)(b)): 
  from activity in the City by reason of:  States) is not deemed to be doing business,     
                                           employing capital, owning or leasing prop-     • a captive real estate investment trust 
• The maintenance of cash balances         erty, maintaining an office, or deriving re-     (REIT) (as defined in section 11-
  with banks or trust companies in the     ceipts from activity, in this city if its        601(12)) or captive regulated invest-
  City;                                    activities in this city are limited solely to:   ment company (RIC) (as defined in 
                                                                                            §11-601(13)); 
• The ownership of shares of stock or      • investing or trading in stocks and se-        
  securities kept in the City if kept in a   curities for its own account per IRC         • a combinable captive insurance com-
  safe deposit box, safe, vault, or other    section 864(b)(2)(A)(ii);                      pany (as defined in section 11-
  receptacle rented for the purpose, if                                                     652(12)); and 
  pledged as collateral security, or if    • investing or trading in commodities           
  deposited with one or more banks or        for its own account per IRC section          • an alien corporation that satisfies the 
  trust companies, or with brokers who       864(b)(2)(B)(ii);   or                         conditions in section 11-654.3(2)(a) 
  are members of a recognized security                                                      (see above for such conditions), if 
  exchange, in safekeeping or custody      • any combination of the above two ac-           such corporation is treated, under any 
  accounts;                                  tivities.                                      provision of the IRC, as a domestic 
                                                                                            corporation as defined in IRC section 
• The taking of any action by any such     An alien corporation that under any provi-       7701, or has effectively connected in-
  bank or trust company or broker,         sion of the IRC is not treated as a domes-       come pursuant to Ad. Code section 11-
  which is incidental to the rendering     tic corporation as defined under IRC             652(8) introductory paragraph (iii). 
  of safekeeping or custodian service to   section 7701 and has no effectively con-         
  the corporation;                         nected income for the tax year will not be     A corporation required or permitted to 
                                           subject to tax under the Business Corpora-     file a combined return does not include 
• The maintenance of an office in this     tion Tax  for that tax year. Ad. Code sec-     (§11-654.3(2)(c)): 
  city by one or more officers or direc-   tion 11-652(8) introductory paragraph (iii).    
  tors of the corporation who are not                                                     • a corporation that is taxable, or would 
  employees of the corporation if the      WHO MUST FILE A COMBINED                         be taxable if subject to tax, under the 
  corporation otherwise is not doing       RETURN                                           General Corporation Tax or the Util-
  business in the City, and does not em-                                                    ity Tax (except for a vendor of utility 
  ploy capital or own or lease property    Under Administrative Code Section 11-            services that is taxable under both the 
  in the City;                             654.3, a taxpayer:                               New York City Utility Tax and Sub-
                                                                                            chapter 3-A) or would have been tax-

 Instructions for Form NYC-2A - 2022                                                                                 Page 4

  able as an insurance corporation under      Schedule A. Any corporation entering a         ified residential loan portfolios (Ad. Code 
  the former Part  IV, Title R, Chapter       commonly owned group subsequent to             §11-652(8)(s)), the subtraction modifica-
  46 of the NYC Administrative Code           the year of election shall be included in      tion for community banks and small 
  as in effect on June 30, 1974;              the combined group, and is considered to       thrifts (Ad. Code §11-652(8)(q)), the sub-
                                              have waived any objection to its inclu-        traction modification for community 
• a REIT that is not a captive REIT;          sion in the combined group.                    banks and small thrifts with a captive 
                                                                                             REIT (Ad. Code §11-652(8)(r)) or the 
• a RIC that is not a captive RIC; or         The election is irrevocable, and binding       subtraction modification for qualified af-
                                              for and applicable to the tax year for         fordable housing and low income com-
• an alien corporation that, under any        which it is made, and for the next six tax     munity loans (Ad. Code §11-652(8)(t)). 
  provision of the IRC, is not treated as     years (not including short tax years). The      
  a domestic corporation as defined in        election will automatically be renewed         FORM NYC-2.3 -Prior Net Operating 
  IRC section 7701 and has no effec-          for another seven tax years, unless it has     Loss Conversion (PNOLC Subtrac-
  tively connected income for the tax         been revoked by the designated agent on        tion), must be filed to calculate and utilize 
  year pursuant to Ad. Code section 11-       an original, timely filed return for the first the PNOLC subtraction and carryforward 
  652(8) introductory paragraph (iii).        tax year after the completion of the prior     (Ad. Code §11-654.1(2)). This form must 
                                              seven year period. A revocation shall pro-     be filed for every tax year that  a combined 
If a corporation is subject to tax under      hibit a new election in any of the imme-       group carries  a balance of a PNOLC sub-
Subchapter 3-A solely as a result of its      diately following three tax years (not         traction, even if  the group is unable to uti-
ownership of a limited partner interest in    including short tax years) by any mem-         lize the subtraction in a given year. 
a limited partnership, or its membership      ber of the commonly owned group.                
interest that is equated to the interest of a                                                FORM NYC-2.4 -Net Operating Loss 
limited partner, in an LLC that is being      Revocation of Commonly Owned                   Deduction (NOLD), must be filed to cal-
treated as a partnership for federal income   Group Election - For instructions on re-       culate and utilize the NOLD and carry-
tax purposes, that is doing business, em-     voking the commonly owned group elec-          forward (Ad. Code §11-654.1(3)). This 
ploying capital, owning or leasing prop-      tion, see the instructions for Schedule A,     form must be filed with the amended re-
erty, maintaining an office, or deriving      Line 28c.                                      turn when the carryback of a post corpo-
receipts from activity, in this city, and                                                    rate tax reform net operating loss (NOL) 
none of the corporation’s related corpora-    Designated agent – Each combined               is claimed. NOLs from tax years that 
tions are subject to tax under Subchapter     group must have one designated agent,          begin on or after January 1, 2015, cannot 
3-A, such corporation shall not be re-        which must be a taxpayer. The designated       be carried back to tax years that began 
quired or permitted to file a combined re-    agent files the combined return of the         before January 1, 2015. 
turn with such related corporations.          combined group. Only the designated             
                                              agent may act on behalf of the members         FORM NYC-2.5A -Computation of Re-
Commonly owned group election -               of the combined group for matters relat-       ceipts Factor — must be filed by any 
(§11-654.3(3)) - Subject to the restric-      ing to the combined return (§11-               combined group claiming less than a 100% 
tions of section 11-654.3(2)(c) (see above    654.3(7)). However, every member of the        business allocation percentage to NYC. 
for such restrictions), a taxpayer may        combined group that is subject to tax           
elect to treat as its combined group all      under Subchapter 3-A is jointly and sev-       FORM NYC-2.5A/BC -Computation 
corporations that meet only the owner-        erally liable for the tax due pursuant to a    of Receipts Factor, (Member’s Detail 
ship requirements of section 11-              combined return.                               Report) - must be filled out for each 
654.3(2)(a) (see above for such                                                              member of a combined group other than 
requirements) without regard to also          OTHER FORMS YOU MAY                            the designated agent when the combined 
meeting the unitary business require-         NEED TO FILE                                   group is claiming less than a 100% busi-
ment. If this election is made, such cor-                                                    ness allocation percentage to NYC. 
porations must compute the combined           FORM NYC-2.1 -       Investment and             
business income, combined capital, and        Other Exempt Income and Investment             FORM NYC-EXT    - Application  For 
fixed dollar minimum bases of all mem-        Capital, must be filed by a corporation        Automatic 6-Month Extension of Time to 
bers of the group, whether or not that        that has investment capital (Ad. Code          File Business Income Tax Return. File it 
business income or business capital is        section 11-651(4)), investment income          on or before the due date of the return. 
from a single unitary business.               (Ad. Code section 11-651(5)), or other          
                                                                                             FORM NYC-300 -  Mandatory First In-
                                              exempt income (Ad. Code §11- 651(5-a). 
                                                                                             stallment (MFI) by Business C Corpora-
The election must be made on an origi-         
                                                                                             tions. This form is to be submitted with 
nal, timely filed return of the combined      FORM NYC-2.2 -Subtraction Modifi-
group, determined with regard to valid        cation for Qualified Banks and Other           respect to the MFI.  The MFI on this form 
                                                                                             is equal to 25% of the second preceding 
extensions of time for filing. The election   Qualified Lenders, must be filed to uti-
                                                                                             year's tax.  The due date of the form is 2-
is made by checking  “Yes” on line 28a of     lize the subtraction modification for qual-
                                                                                             1/2 months after the close of the previous 

 Instructions for Form NYC-2A - 2022                                                                               Page 5

fiscal year, not the due date of the return every tenant that rents premises for busi-    return generally will be due on the due 
or extension for the previous year.  For a  ness purposes in Manhattan south of the       date for the federal return and not on the 
calendar year taxpayer, the due date is     center line of 96th Street and whose an-      date noted above. 
March 15th.                                 nual or annualized gross rent for any          
                                            premises is at least $200,000. (Effective     Mail all returns, except refund returns: 
FORM NYC-EXT.1 - Application for            June 1, 2001.)                                 
Additional Extension is a request for an                                                  NYC Department of Finance 
additional three months of time to file a   FORM NYC-RPT - Real Property Trans-           P.O. Box 5564 
return. A corporation with a valid six-     fer Tax Return must be filed when the cor-    Binghamton, NY 13902-5564 
month extension is limited to two addi-     poration acquires or disposes of an interest   
tional extensions.                          in real property, including a leasehold in-   Remittances – Pay online with Form 
                                            terest; when there is a partial or complete   NYC- 200V at nyc.gov/eservices, or Mail 
FORM NYC-222 - Underpayment of              liquidation of the corporation that owns or   payment and Form NYC-200V only to: 
Estimated Tax by Corporations will help     leases real property; or when there is a       
a corporation determine if it has under-    transfer of a controlling economic interest   NYC Department of Finance 
paid an estimated tax installment and, if   in a corporation, partnership or trust that   P.O. Box 3933 
necessary, compute the penalty due.         owns or leases real property.                 New York, NY 10008-3933 
                                                                                           
FORM NYC-245       - Activities Report of   For credits or refunds based upon carry-      Mail returns claiming refunds: 
Corporations must be filed by a corpora-    back of a net operating loss (NOL)— To         
tion that has an officer, employee, agent   claim a credit or refund resulting from the   NYC Department of Finance 
or representative in the City but disclaims carryback of an NOL to a prior year, file     P.O. Box 5563 
liability for the Business Corporation Tax. an amended return for the year to which       Binghamton, NY 13902-5563 
                                            the carryback is being applied within 90       
FORM NYC-399        - Schedule of New       days (120 days if filing an amended com-      AUTOMATIC EXTENSIONS 
York City Depreciation Adjustments is       bined return) from the date of the docu-      An automatic extension of six months for 
used to compute the allowable New York      ment indicating approval of the federal       filing this return will be allowed if, by the 
City depreciation deduction if a federal    refund or credit.  Note: No NOL  may be       original due date, the taxpayer files with 
ACRS or MACRS depreciation deduc-           carried back to a year beginning be-          the Department of Finance an application 
tion is claimed for certain property placed fore January 1, 2015.  You must attach        for automatic extension on Form NYC-
in service after December 31, 1980.         the following to your amended return:         EXT and pays the amount properly esti-
                                                                                          mated as its tax. See the instructions for 
FORM NYC-399Z - Depreciation Ad-            • Federal claim Form 1139, Corpora-           Form NYC-EXT for information regard-
justments for Certain Post 9/10/01 Prop-      tion  Application for  Tentative Re-        ing what constitutes a proper estimated 
erty may have to be filed by taxpayers        fund, or federal Form 1120X,                tax for this purpose. Failure to pay a 
claiming depreciation deductions for          Amended U.S. Corporation Income             proper estimated amount will result in a 
certain sport utility vehicles or "quali-     Tax Return;                                 denial of the extension. 
fied property," other than "qualified                                                      
New  York Liberty Zone property,"           • A copy of the New York City return          A taxpayer with a valid six-month auto-
"qualified New  York Liberty Zone             previously filed with New York City         matic extension filed on Form NYC-
leasehold improvements" and “qualified        for the loss year;                          EXT may request up to two additional 
resurgence zone property” placed in                                                       three month extensions by filing Form 
service after September 10, 2001, for       • Proof of federal refund approval,           NYC-EXT.1.  A separate Form NYC-
federal or New York State tax purposes.       Statement of Adjustment to your Ac-         EXT.1 must be filed for each additional 
See Finance Memorandum 22-1, “Ap-             count.                                      three-month extension. Forms NYC-
plication of IRC §280F Limits to Sports                                                   EXT and EXT.1 may be submitted elec-
Utility Vehicles.”                          WHEN AND WHERE TO FILE                        tronically via the Department’s Website 
                                            The due date for filing is on or before       or mailed to the address indicated on 
FORM NYC-400 - Declaration of Esti-         April 18, 2023 or, for fiscal year taxpayers, those forms. 
mated Tax by Business Corporations and      on or before the 15th day of the 4th month     
Subchapter S General Corporations must      following the close of the fiscal year.       FINAL RETURNS 
be filed by any corporation whose New                                                     If a corporation ceases to do business in 
York City tax liability can reasonably be   Special short-period returns: If this is      New York City, the due date for filing a final 
expected to exceed $1,000 for any calen-    NOT a final return and your federal re-       Business Corporation Tax Return is the 15th 
dar or fiscal tax year.                     turn covered a period of less than 12         day after the date of the cessation (Ad. Code 
                                            months as a result of your joining or leav-   § 11- 655). Corporations may apply for an 
FORM NYC-CR-A - Commercial Rent             ing a federal consolidated group or as a      automatic six-month extension for filing a 
Tax  Annual Return must be filed by         result of a federal IRC §338 election, this 

 Instructions for Form NYC-2A - 2022                                                                                  Page 6

final return by filing Form NYC-EXT, Ap-     changes on the same amended return that        OVERVIEW OF BUSINESS CORPO-
plication for Automatic 6- Month Extension   includes separate tax worksheets for the       RATION TAX 
of Time to File Business Income Tax Return   IRS Tax Base Changes and the DTF Tax            
on or before that date.  Any tax due must be Base Changes.  Note that for taxable           Tax Bases and Rates  
paid with the final return or the extension, years beginning on or after January 1,         Under the Business Corporation Tax, the 
whichever is filed earlier.                  2015, DTF Tax Base Changes may in-             business income base is the primary tax 
                                             clude changes that affect income or cap-       base, with the business capital and fixed 
AMENDED RETURNS                              ital allocation.                               dollar minimum tax bases as alternatives. A 
If you are filing an amended return for any                                                 combined group must pay the tax that  re-
purpose, mark an X in the Amended return     The Amended Return checkbox on the re-         sults in the largest amount owed.  In addi-
box on page 1 of the return.  If you file an turn is to be used for reporting any IRS or    tion, the tax on a combined return includes 
amended federal or state return, you must    DTF Tax Base Changes, with the appro-          the fixed dollar minimum tax of each 
file an amended New York City return         priate box for the agency making the Tax       member of the combined group (other than 
within 90 days (or 120 days if filing an     Base Changes also checked.  Taxpayers          the designated agent) that is a taxpayer. 
amended combined return thereafter).         must file an amended return for Tax Base        
                                             Changes within 90 days (120 days for tax-      Tax on Business Income 
You must file using the correct year’s re-   payers filing a combined report) after (i) a   The tax on the business income base is 
turn for the tax year being amended. Do      final determination on the part of the IRS     computed on Schedule B. The business 
not use the most current year’s return if    or DTF, (ii) the signing of a waiver under     income base is generally determined 
the current year is not the year being       IRC §6312(d) or NY Tax Law §1081(f),           using a single receipts factor allocation.    
amended. If you file on the wrong year’s     or (iii) the IRS has allowed a tentative ad-   For more on the allocation of the business 
return, it may cause the amended return      justment based on a an NOL carryback or        income base see Schedule F and the ac-
to be rejected, or may cause a delay in re-  a net capital loss carryback.                  companying instructions.  For more on 
ceiving any tax benefits being claimed.                                                     the tax rate applicable to the business in-
The Business Corporation Tax is effec-       If the taxpayer believes that any Tax Base     come base, see Schedule H and accom-
tive January 1, 2015 and does not apply      Change is erroneous or should not apply        panying instructions. 
to any tax return filed for a tax year com-  to its City tax calculation, it should not in-  
mencing prior to January 1, 2015.            corporate that Tax Base Change into its        Tax on Business Capital 
                                             City tax calculation on its amended return.    The tax on the business capital base is com-
FOR AMENDED RETURNS BASED                    However, the taxpayer must attach: (i) a       puted on Schedule C. The business capital 
ON CHANGES  TO FEDERAL OR                    statement to its report that explains why it   base is generally determined using a single 
STATE  TAXABLE INCOME OR                     believes the adjustment is erroneous or in-    receipts factor allocation.  For more on the 
OTHER TAX BASE                               applicable; (ii) the explanatory tax work-     allocation of the capital base see Schedule 
For taxable years beginning on or after      sheet that identifies each Tax Base Change     C and the accompanying instructions.  
January 1, 2015, changes in taxable in-      and shows how each would affect its City        
come or other tax base made by the In-       tax calculation; and (iii) a copy of the IRS   Fixed Dollar Minimum Tax. 
ternal Revenue Service (“IRS”) and /or       and/or DTF final determination, waiver, or     The fixed dollar minimum tax is deter-
New York State Department of Taxation        notice of carryback allowance.                 mined by the corporation’s New  York 
and Finance (“DTF”) will no longer be                                                       City receipts. To avoid an erroneous as-
reported on Form NYC-3360 or Form            For more information on federal or state       sessment or a delay in your refund, you 
NYC-3360B.  Instead, taxpayers must re-      Tax Base Changes, including a more ex-         must enter an amount on Form NYC-2A, 
port these federal or state changes to tax-  pansive explanation of how taxpayers           Schedule A, line 3a. If you do not have 
able income or other tax base by filing an   must report these changes as well as sam-      New York City receipts, enter 0 in the box 
amended return.  This amended return         ple tax worksheets to be included within       on line 3a. Failure to make an entry on 
must include a tax worksheet that identi-    the amended return, see Finance Memo-          this line may result in an assessment of 
fies each change to the tax base (“Tax       randum 17-5, “Reporting Federal or             tax, or reduction of your refund or credit. 
Base Change”) and shows how each such        State Changes” revised and dated                
Tax Base Change affects the taxpayer’s       10/10/2018.                                    FOR TAXPAYERS  CLAIMING  A 
calculation of its New York City tax.  A                                                    NET OPERATING LOSS DEDUC-
template for the tax worksheet is avail-     ACCESSING NYC TAX FORMS                        TION 
able on the DOF website at nyc.gov/fi-       By Computer - Download forms from              Taxpayers claiming a deduction for a Net 
nance.  This amended return must also        the Finance website at nyc.gov/finance         Operating Loss must complete form 
include a copy of the IRS and/or DTF                                                        NYC-2.4 (Net Operating Loss Deduc-
final determination, waiver, or notice of    By Phone - Order forms by calling 311.         tion) and include it with their Business 
carryback allowance.   Taxpayers that        If calling from outside of the five NYC        Corporation Tax filing. For more infor-
have federal and state Tax Base Changes      boroughs, please call 212-NEW-YORK             mation see Form NYC-2.4. Under Sub-
for the same tax period may report these     (212- 639-9675).                               chapter 3-A, the restriction for REITs on 
                                                                                            using the NOL deduction is no longer ap-

 Instructions for Form NYC-2A - 2022                                                                                   Page 7

plicable and, thus, REITs are permitted       turn, or (2) there is adequate disclosure   turn.  It does not apply to the firm, if any, 
an NOL deduction. Taxpayers subject to        of the relevant facts affecting the item’s  shown in that section. By checking the 
the small business tax rate are still sub-    tax treatment on the return or in a state-  "Yes" box, you are authorizing the De-
ject to the PNOLC limitations (unlike         ment attached to the return.                partment of Finance to call the preparer 
NYS). NOLs from tax years that begin                                                      to answer any questions that may arise 
on or after January 1, 2015, cannot be        CHANGE OF BUSINESS                          during the processing of your return. 
carried back to tax years that began          INFORMATION                                 Also, you are authorizing the preparer to: 
before January 1, 2015.                       If there have been any changes in your       
                                              business name, identification number,       ● give the Department any information 
ESTIMATED TAX                                 billing or mailing address or telephone       missing from your return 
                                                                                           
If the tax for the period following that cov- number, complete Form DOF-1, Change           call the Department for information 
                                                                                          ●
ered by this return is expected to exceed     of Business Information. You can obtain       about the processing of your return 
$1,000, a declaration of estimated tax and    this form by calling 311. If calling from     or the status of your refund or pay-
installment payments are required.            outside of the five NYC boroughs, please      ment(s), and 
                                              call 212-NEW-YORK (212-639-9675).            
Form NYC-400 is to be used for declara-                                                     respond to certain notices that you 
                                                                                          ●
tions and installment payments of esti-       You can also logon to nyc.gov/finance.        have shared with the preparer           
mated tax. If the tax on this return exceeds                                                about math errors, offsets, and return 
$1,000, submit Form NYC-400 which is          HOW TO FILL OUT YOUR TAX                      preparation. (These notices will not 
available on the Department of Finance’s      RETURN                                        be sent to the preparer) . 
                                                                                           
website. If, after filing a declaration, your Important Identifying Information           You are not authorizing the preparer to 
estimated tax substantially increases or de-
                                              When preparing your corporation tax re-
creases as a result of a change in income,                                                receive any refund check, bind you to any 
                                              turn, be sure to accurately complete the 
deduction or allocation, you must amend                                                   statement, act or legal position (including 
                                              corporation’s identifying information 
your declaration on or before the next date                                               any additional tax liability), or otherwise 
                                              (employer identification number (EIN)) 
for an installment payment. Mail the                                                      represent you before the Department. 
                                              including the current address. Keep a        
amended declaration, using Form NYC-
                                              record of the corporation’s identifying in- The authorization cannot be revoked; how-
400, along with your check to: 
                                              formation for future use.                   ever, the authorization will automatically 
                                                                                          expire no later than the due date (without 
NYC Department of Finance                     Check all the boxes on the front of the re- regard to any extensions) for filing next 
P.O. Box 3922                                 turn that apply.                            year's return. Failure to check the box 
New York, NY 10008-3922                        
                                                                                          will be deemed a denial of authority. 
                                              SIGNATURE                                    
If the amendment is made after the 15th       This report must be signed by an officer 
day of the 9th month of the taxable year,     authorized to certify that the statements   SPECIFIC INSTRUCTIONS 
                                                                                           
any increase in tax must be paid with the     contained herein are true. If the taxpayer  Period Covered 
amendment.                                    is a publicly-traded partnership or an-     File the 2022 return for calendar year 
                                              other unincorporated entity taxed as a      2022 and fiscal years that  begin in 2022 
These payments can also be made online        corporation, this return must be signed by  and end in 2023. For a fiscal or short tax 
at nyc.gov/eservices.                         a person duly authorized to act on behalf   year return, fill in the tax year space at 
                                              of the taxpayer.                            the top of the form.  The 2022 Form 
For more information regarding esti-                                                      NYC-2A also can be used if: 
mated tax payments and due dates, see         TAX PREPARERS                                
Form NYC-400.                                 Anyone who prepares a return for a fee      ● You have a tax year of less than 12 
                                                                                            months that begins and ends in 2023, and 
                                              must sign the return as a paid preparer 
PENALTY FOR UNDERSTATING TAX                                                               
                                              and enter his or her Social Security Num-
If there is a substantial understatement of                                               ● The 2023 Form NYC-2A is not 
                                              ber or PTIN. (See Finance Memorandum 
tax (i.e., if the amount of the understate-                                                 available at the time you are required 
                                              00-1.) Include the company or corpora-
ment exceeds the greater of 10% of the                                                      to file the return. 
                                              tion name and EIN, if applicable. 
tax required to be shown on the return or                                                  
                                                                                          You must show the 2023 tax year on the 
$5,000) for any taxable year, a penalty       Preparer Authorization: If you want to      2022 Form NYC-2A and take into ac-
will be imposed in an amount equal to 
                                              allow the Department of Finance to dis-
10% of the amount of the understated tax.                                                 count any tax law changes that are effec-
                                              cuss your return with the paid preparer 
The amount of understated tax on which                                                    tive for tax years beginning after 
                                              who signed it, you must check the "Yes" 
you pay the penalty can be reduced by                                                     December 31, 2022. 
                                              box in the signature area of the return.     
subtracting any item for which (1) there 
                                              This authorization applies only to the in-  September 11, 2001 Related Benefits 
is or was substantial authority for the way 
                                              dividual whose signature appears in the     Check the appropriate box on page 1 of 
in which the item was treated on the re-
                                              "Preparer's Use Only" section of your re-   this form (“Claim any 9/11/01-related 

 Instructions for Form NYC-2A - 2022                                                                                          Page 8
federal tax benefits”) if, on your federal     Schedule A                                       Short Periods - Fixed Dollar Minimum Tax 
                                                                                                 
return: (i) you reported bonus deprecia-       Computation of Balance Due or Over-              Compute the New York City receipts for 
tion and/or a first year expense deduction     payment                                          short periods (tax periods of less than 12 
under IRC section 179 for "qualified                                                            months) by dividing the amount of New 
New York Liberty Zone property," "qual-        LINE 3 - MINIMUM TAX                             York City receipts by the number of 
ified New York Liberty Zone leasehold          This line pertains only to the group’s des-      months in the short period and multiply-
improvements," or "qualified Resurgence        ignated agent. The sum of the fixed dol-         ing the result by 12.  Once this annual-
Zone property," regardless of whether          lar minimum taxes for each taxable group         ized amount is calculated (do not replace 
you are required to file form NYC-399Z,        member is reported on line 5. The fixed          your NYC receipts on Line 3 with this 
or (ii) you replaced property involuntar-      dollar minimum tax is determined by a            annualized amount) use the table above 
ily converted as a result of the attacks on    corporation’s New York City receipts.            to determine the fixed dollar minimum 
the World Trade Center during the five         Enter your New York City receipts in the         tax  based on the annualized amount. The 
(5) year extended replacement period.          first box. If you do not have New York           resulting fixed dollar minimum tax may 
You must attach federal forms 4562,            City receipts, enter 0. To avoid an erro-        be reduced for short periods  as indicated 
4684 and 4797 to this return.     See in-      neous assessment or a delay in your re-          below.  Enter the reduced amount on line 
structions for Schedule B, lines 11 and 19     fund, you   must enter an amount on this         3 (If applicable). 
for more information.                          line.                                             
                                                                                                Period Reduction 
                                                                                                 
Filing your final return                       The designated agent’s New York City             Not more than 6 months..................50% 
Mark an  Xin the Final return box on           receipts are the receipts as determined on 
                                                                                                More than 6 months 
page 1 of the return if the corporation has    line 54a, column F of Form NYC-2.5A.             but not more than 9 months.............25% 
ceased doing business, employing capi-          
tal, or owning or leasing property in New      Enter the amount of these receipts on line 3a.   More than 9 months.......................None 
                                                                                                 
York City.                                     A homeowners association, as such term           Line 5 – Enter the sum of all the amounts 
 
                                               is defined in IRC section 528(c) without 
Do not mark an  Xin the Final return if                                                         entered on all attached Forms NYC-2-
                                               regard to section 528(c)(1)(E), with no 
you are only changing the type of return                                                        A/BC, Schedule A, ”Minimum tax”, line 2. 
                                               FTI, as the term is defined in section 
that you file.                                                                                   
                                               528(d), is not subject to the fixed dollar       CREDITS - GENERAL 
Do not mark an  Xin the Final return box       minimum tax and must enter  0on line 3.          Complete a separate Credit Form for the 
in the case of a merger or consolidation.                                                       designated agent and for any other mem-
Include the full profit from any install-      TABLE - FIXED DOLLAR MINI-                       ber of the combined group, if applicable.  
ment sale made in your final tax year on       MUM TAX                                          The total amount of each credit is placed 
your final return.  Also include on your       For a corporation with New York City re-         on Schedule A, lines 7 and 9 through 13. 
                                                                                                 
final return any remaining profit not yet       ceipts of: 
                                                                                                LINE 7 - UBT PAID CREDIT 
received from a prior year’s installment       Not  more than $100,000..................$ 25    Enter on line 7 the credit against the 
 
sale.                                          More than $100,000                               Business Corporation Tax for Unincor-
S Corporation Termination      Year             but not over $250,000 .....................$ 75 porated Business Tax paid by partner-
If an S corporation is terminating its fed-    More than $250,000                               ships from which any corporation 
eral S election on a day other than the         but not over $500,000 ...................$ 175  included in this report  (a “member cor-
first day of the tax year, the tax year is di- More than $500,000                               poration”)  receives a distributive share 
vided into two tax periods (an S short          but not over $1,000,000 ................$ 500   of income, loss or deduction or guaran-
year and a C short year). The taxpayer         More than $1,000,000                             teed payment that you include in entire 
must file a GCT or Bank Tax return for          but not over $5,000,000 ..............$1,500    net income (ENI)(Attach a Form NYC-
the S Corporation short year and a Form        More than $5,000,000                             9.7C for each partnership from which 
                                                                                                you receive a credit.) 
NYC-2 or Form NYC-2A for the C cor-            but  not over $25,000,000 ............$3,500      
poration short year. See Finance Memo-
                                               More than $25,000,000 
randum 15-2, “Transitional Filing                                                               LINE 9 - REAP CREDIT 
                                               but not over $50,000,000 ............$5,000 
Provisions for Taxpayers   Affected By                                                          Enter on this line the Relocation and Em-
Corporate Tax Reform Legislation”              More than $50,000,000                            ployment Assistance Program (REAP) 
4/17/2015.                                     but  not over $100,000,000 ........$10,000       credit against the Business Corporation 
                                               More than $100,000,000                           Tax. (Attach Form NYC-9.5.) 
                                                                                                 
Special Condition Codes                         but not over $250,000,000 ........$20,000 
                                                                                                LINE 10 - CREDITS FROM FORM 
Check the Finance website for applicable       More than $250,000,000 
                                                                                                NYC-9.6 
special condition codes. If applicable,        but  not over $500,000,000 ........$50,000       Enter on this line the real estate tax esca-
enter the two character code in the box        More than $500,000,000                           lation credit and employment opportunity 
provided on the form.                          but  not over $1,000,000,000 ...$100,000         relocation costs credit and industrial busi-
                                               Over $1,000,000,000...............$200,000       ness zone credit (Refer to instructions 

 Instructions for Form NYC-2A - 2022                                                                             Page 9

on Form NYC-9.6 and attach form.)                if you fail to pay the tax shown on          carrying on business both inside and out-
                                                 this form by the prescribed filing           side New York City, complete Schedule E 
LINE 11 - LMREAP CREDIT                          date, unless the failure is due to rea-      and enter on line 23 of Schedule A the 
Enter on this line the credit against the Busi-  sonable cause. For every month or            total rent from Schedule E, Part 1. If the 
ness Corporation Tax for the Lower Man-          partial month that your payment is           members of the combined group are only 
hattan Program. (Attach Form NYC-9.8.)           late, add to the tax (less any payments      carrying on business in New York City, 
 
                                                 made) 1/2%, up to a total of 25%.            enter the total rent deducted on the federal 
LINE 13 - BEER PRODUCTION                                                                     return for premises located in the City.  
CREDIT                                          d) The total of the additional charges in      
Enter on this line the NYC beer produc-          a) and c) may not exceed 5% for any          LINE 25 - GROSS RECEIPTS 
tion credit.  (Attach Form NYC-9.12.)            one month except as provided for in          OR SALES 
 
                                                 b). If you claim not to be liable for 
LINE 15 - TOTAL PREPAYMENTS                                                                   The amount entered on line 25 should be 
                                                 these additional charges, attach a 
Enter the sum of all estimated tax payments                                                   the same amount entered on line 1c of the 
                                                 statement to your return explaining 
made for this tax period, the payment made                                                    taxpayer's federal Form 1120 (Gross re-
                                                 the delay in filing, payment or both.        ceipts or sales less returns and al-
with the extension request, if any, and both                                                  lowances). If  the federal consolidated 
the carryover credit and the first installment  LINE 18c - PENALTY FOR UNDER-                 group and the City combined group dif-
reported on the prior tax period’s return.      PAYMENT OF ESTIMATED TAX                      fer, attach a copy of the federal consoli-
This figure should be obtained from the         A penalty is imposed for failure to file a    dated group return, the consolidating 
Composition of Prepayments Schedule on          declaration of estimated tax or for failure   workpapers indicating the gross receipts 
page 2 of Form NYC-2A.  Use line H of the       to pay each installment payment of esti-      of each corporation and a complete copy 
Prepayment Schedule for original returns;       mated tax due. (For complete details,         of each separate federal return.   The 
use line I in case of an amended return.  See   refer to Form NYC-222, Underpayment           amount entered on line 25 should be the 
the instructions to the Prepayments Sched-      of Estimated Tax by Corporations.). If        gross receipts of all the corporations in-
ule.                                            you underpaid your estimated tax, use         cluded in the combined return. 
 
                                                Form NYC-222 to compute the penalty. 
LINE 18a - LATE PAYMENT - IN-                                                                  
                                                Attach Form NYC-222. If no penalty is 
TEREST                                                                                        LINE 28c - REVOCATION OF 
                                                due, enter “0” on line 18c.                   THE COMMONLY OWNED 
If the tax is not paid on or before the due      
                                                                                              GROUP ELECTION 
date (determined without regard to any          LINE 22 - TOTAL REMITTANCE DUE 
                                                                                              Pursuant to Ad. Code section 11-654.3(3), 
extension of time), interest must be paid       If the amount on line 16 is greater than zero 
                                                                                              a corporation may elect to treat all corpo-
on the amount of the underpayment from          or the amount on line 20 is less than zero, 
                                                                                              rations that meet the ownership require-
the due date to the date paid. For infor-       enter on line 22 the sum of line 16 and the 
                                                                                              ments of section   11-654.3(2)(a)
mation as to the applicable rate of inter-      amount, if any, by which line 19 exceeds 
                                                                                              (“commonly owned group”) as its com-
est, call 311. If calling from outside of the   the amount on line 17.  If filing and paying 
                                                                                              bined group whether or not such corpora-
five NYC boroughs, please call 212-             electronically, enter the amount of your re-
                                                                                              tions are engaged in a unitary business. 
NEW-YORK (212-639-9675) or log on               mittance on Line A. If not paying electron-
                                                                                              Once made, the election is irrevocable for 
to nyc.gov/finance.                             ically, leave Line A blank. All remittances 
                                                                                              the year in which it was made and the 
                                                must be payable in U.S. dollars drawn on a 
LINE 18b  - LATE PAYMENT OR LATE                                                              subsequent six taxable years. After such 
                                                U.S. bank. Checks drawn on foreign banks 
FILING/ADDITIONAL CHARGES                                                                     time, the election will automatically 
                                                will be rejected and returned. 
a) A late filing penalty is assessed if you                                                   renew for another period of 7 tax years, 
 fail to file this form when due, unless        Remittances must be made payable to the       unless revoked by the designated agent of 
 the failure is due to reasonable cause.        order of NYC Department of Finance.           the commonly owned group on an origi-
 For every month or partial month that                                                        nal timely filed (with regard to exten-
 this form is late, add to the tax (less        LINE 23 - NEW YORK CITY RENT                  sions) return for the first taxable year after 
 any payments made on or before the             Enter the total rent deducted for federal     the completion of the seven year period 
 due date) 5%, up to a total of 25%.            purposes for premises located in New York     for which the election was in effect. Once 
                                                City for each member of the combined          revoked, the election cannot be made by 
b) If this form is filed more than 60 days      group. Rent includes consideration paid for   any member of such commonly owned 
 late, the above late filing penalty can-       the use or occupancy of premises as well as   group for 3 tax years immediately fol-
 not be less than the lesser of (1) $100        payments made to or on behalf of a land-      lowing the revocation. In determining the 
 or (2) 100% of the amount required             lord for taxes, charges, insurance or other   seven and three year periods described in 
 to be shown on the form (less any              expenses normally payable by the landlord     this paragraph, short taxable years shall 
 payments made by the due date or               other than for the improvement, repair or     not be considered. 
 credits claimed on the return).                maintenance of the tenant's premises.          
                                                                                              If a combined group has made the elec-
c) A late payment penalty is assessed           If the members of the combined group are      tion pursuant to section 11-645.3(3) and 

 Instructions for Form NYC-2A - 2022                                                                                  Page 10

such election had been in effect for 7 tax    PREPAYMENTS SCHEDULE                         Computation of Tax on Business In-
years immediately preceding the tax year      Enter the payment date and the amount of     come Base 
for which this return is filed, the com-      all prepayments made for this tax period.     
bined group through its designated agent                                                   The combined business income base is 
can revoke the election.  The designated      LINE I (Amended Returns Only) -              the amount of the combined business in-
agent must check the box on this line.        This line should reflect the total amount of come of the group that is allocated to 
The names and EIN of the corporations         payments that is applicable to the taxable   New York City, less any PNOLC sub-
that are no longer part of the combined       year covered by this return, including       traction and any NOLD for the combined 
group because of this election must be re-    those made with the original return (less    group. In computing the combined busi-
ported on Part IV of the  Affiliations        any amounts that were carried forward and    ness income base, the group is generally 
Schedule.                                     applied to a subsequent period and any re-   treated as a single corporation. 
                                              funds received) and any subsequent pay-       
Designated agent’s information                ments made prior to the filing of this       Combined business income is the ENI of 
                                              amended return. Do not include payments      the group minus the investment income of 
Line 31 - Federal separate taxable income     being made with this return.  Attach a       the group and the other exempt income of 
means for this purpose, the amount the        schedule listing the payments, credits and   the group. In computing combined busi-
designated agent computed (or if the des-     refunds included on this line.               ness income, most intercorporate divi-
ignated agent’s federal consolidated group                                                 dends     are  eliminated. All   other
is not the same as its New York City com-     Example - Taxpayer listed payments of        intercorporate transactions are deferred in 
bined group, the amount the  designated       $6,000 on the Composition of Prepay-         a manner similar to the United States 
agent would have computed if the federal      ments Schedule on the original return.       Treasury Regulations relating to intercom-
consolidated group was comprised of the       The tax liability as reflected on the origi- pany transactions under IRC section 1502. 
same members as the New York City com-        nal return was $5,000.  The taxpayer re-      
bined group) as follows: Report the           quested and received a refund of $1,000.     ENI is: 
amount computed in accordance with the        A year later, the taxpayer files an amended   
provisions of the IRC that govern the com-    return showing a new tax liability for the   • total net income from all sources 
putation of taxable income for separate re-   same period of $1,000.  Because of the re-     which is presumably the same as the 
turn purposes, but subject to  Treasury       fund, the amount of the prepayment is          entire taxable income the taxpayer is 
Regulations section 1.1502-12.                now $5,000, which should be entered on         required to report to the U.S. Treas-
                                              this line and on line 15 of Schedule A.  At-   ury Department, or 
Line 32 - Enter the value of the desig-       tach a schedule showing all payments (in-     
nated agent’s total assets at the beginning   cluding those made prior to the filing of    • income effectively connected with 
of the tax year on line 32a, and at the end   the original return) and the refund.           the conduct of a trade or business 
of the tax year on line 32b. Use the values                                                  within the United States, as deter-
that would have been shown on the bal-        Schedule B                                     mined under IRC section 882, for an 
ance sheet of the federal return if the des-  Line Instructions                              alien corporation that under any pro-
ignated agent had filed a separate federal                                                   vision of the IRC is not treated as a 
Form 1120. Enter on line 32c the average      Schedule B of Form NYC-2A for lines 2          domestic corporation as defined in 
value, as the average value is described      through 20, provides a column for the          IRC section 7701; or 
in Schedule C, Part 1, lines 1 through 11     group designated agent and a separate         
instructions.                                 column for all the other combined mem-       • Federal taxable income that would 
                                              bers of the group.  The amounts that are       have been reported to the IRS in the 
Line 33 - Enter the value of the desig-       entered into the column for the combined       case of a corporation which is exempt 
nated agent’s total liabilities at the begin- members of the group should represent the      from federal income tax (other than 
ning of the tax year on line 33a, and at      total of the amounts from the correspon-       tax on unrelated business income im-
the end of the tax year on line 33b. Use      ding lines from Schedule B of each mem-        posed under IRC section 511), but is 
the values that would have been shown         ber’s Form 2A/BC that must be attached         taxable under Subchapter 3-A;  
on the balance sheet of the federal return    to Form NYC-2A.  For example, on line         
if the designated agent had filed a sepa-     12, enter the appropriate adjustment for     plus or minus certain New York City 
rate federal Form 1120. Enter on line 33c     the designated agent in the designated       modifications. 
the average value, as the average value is    agent column on Schedule B, line 12.  For     
described in Schedule C, Part 1, lines 1      each member of the combined group ex-        If you have federal capital gains or losses 
through 11 instructions.                      cept the designated agent, enter the appro-  included in your federal consolidated tax-
                                              priate adjustment on line 12 on the Form     able income (CTI) that flow from items 
Lines 34 through 36 -    the figures on       NYC-2A/BC submitted for that member,         that qualify as New York investment cap-
these lines should match the figures on       and enter the sum of  these adjustments on   ital, you must adjust federal CTI on line 
Form NYC-2.3, Schedule  A, line 1,            line 12 of Schedule B of Form NYC-2A         1g by recomputing the amount of your 
columns E, D and G.                           in the “Total of all Affiliates” column.     federal net capital gain income. In this re-

 Instructions for Form NYC-2A - 2022                                                                                  Page 11

computation, you must net your federal         FDII and GILTI deductions: Also  re-          652(8)(b)(20) requires that any IRC sec-
capital gains and losses by the   type of      flected in the line 1a amount is the IRC sec- tion 965(c) amount deducted when com-
New York capital (business or investment)      tion 250(a)(1)(A) deduction, as reduced by    puting federal CTI must be added back to 
that generated the federal capital gain or     IRC section 250(a)(2) (excluding captive      federal CTI.  Add back the IRC section 
loss, rather than netting business and in-     REITS and captive RICs). Administrative       965(c) deduction amount on Schedule B, 
vestment capital gains and losses against      Code § 11-652(8)(b)(21) requires that any     Line 1c(iii).  A federal election can be 
each other. Business capital loss(es) are      IRC section 250(a)(1)(A) amount deducted      made under IRC section 965(m)(1)(B). 
only allowed to be netted against business     (as reduced by IRC section 250(a)(2)) when    When this election is made, New York 
capital gain(s) to the extent that there are   computing federal CTI) must be added back     City conforms to it. 
business capital gain(s) to absorb the busi-   to federal CTI.  Add back the IRC section      
ness capital loss(es). Likewise, investment    250(a)(1)(A) on Schedule B, Line 1c(ii).      • If you file Form 1120-RIC, use: 
                                                                                              
capital loss(es) are only allowed to be net-   You are allowed the IRC section 250 deduc-      – investment company taxable in-
ted against investment capital gain(s) to      tion for the portion of such deduction com-       come (as defined in IRC section 
the extent that there are investment capital   puted under IRC section 250(a)(1)(B)(i), as       852(b)(2)), as modified by IRC 
gain(s) to absorb the investment capital       reduced by IRC section 250(a)(2).  This           section 855; plus 
loss(es). When completing Form CT-3.1,         amount is included on Line 1a.                 
the adjustment made for purposes of line                                                       – the amount taxable under IRC 
1g must be taken into consideration.           When a captive REIT or captive RIC is re-         section 852(b)(3); 
                                               quired to file as a member of a combined         
The sum of the group’s investment in-          group, determine federal separate taxable       – then, in computing the dividends 
come and other exempt income must not          income of such captive REIT or captive            paid deduction, any dividends 
exceed the group’s ENI.                        RIC as follows (but also subject to Treas-        paid by the captive RIC to any 
                                               ury Regulations section 1.1502-12):               member of the affiliated group 
Line 1a – Enter the federal consolidated                                                         that includes the corporation that 
taxable income (CTI) of the New York           • If you file Form 1120-REIT, use:                directly or indirectly owns over 
                                                                                                 50% of the voting stock of the 
City combined group. The CTI of the New          –  REIT taxable income as defined               captive RIC are not allowed and 
York City combined group must be com-               in IRC section 857(b)(2), as mod-            must be included in combined 
puted as if the New York City combined              ified by IRC section 858; plus               business income.  An affiliated 
group, as formulated for purposes of fil-         
                                                                                                 group is defined in IRC section 
ing this Form NYC-2A, had together filed         –  the amount taxable under IRC 
                                                                                                 1504, but without regard to the 
a consolidated federal Form 1120 (even in           section 857(b)(3); 
instances where that was not the case, and                                                       exceptions provided for in IRC 
even when some members of the New                –  then, in computing the dividends             section 1504(b). Include such dis-
York City combined group would be pro-              paid deduction, dividends paid by            allowed dividends paid deduction 
hibited under the IRC to file a consoli-            the captive REIT to any member               amount on Form NYC-2A, 
dated federal Form 1120 with a member               of the affiliated group that includes        Schedule B, line 1d. 
                                                                                              
of the New York City combined group).               the corporation that directly or in-     • If you are exempt from federal in-
                                                    directly owns over 50% of the vot-         come tax but subject to New York 
In computing the federal CTI of the New             ing stock of the captive REIT are          City Business Corporation Tax, you 
York City combined group, each member of            not allowed and must be included           must determine the amount you 
the combined group must first compute its           in combined business income. An            would have had to report as separate 
own federal separate taxable income in ac-          affiliated group is defined in IRC         federal taxable income, were you not 
cordance with the provisions of the IRC that        section 1504, but without regard to        exempt. Attach a separate sheet show-
govern the computation of taxable income            the exceptions provided for in IRC         ing how you determined the amount. 
for separate return purposes, but subject to        section 1504(b). Include such dis-        
United States Treasury Regulations section          allowed dividends paid deduction         • If you have an amount of excess in-
1.1502-12. Report such federal separate tax-        amount on Form NYC-2A, Sched-              clusion as a result of having a resid-
able income of each member of the group on          ule B, line 1d.                            ual interest in a real estate mortgage 
such member’s Form NYC-2-A/BC, Sched-                                                          investment conduit (REMIC), you 
ule A, line 4 and report such income of the    Note: If you are required to include a          must properly reflect this income. 
group’s designated agent on Form NYC-2A,       captive REIT in your combined return,          
Schedule A, line 31. To this aggregate of fed- and the captive REIT is required to in-       • If you are a corporate stockholder in a 
eral separate taxable incomes of all group     clude in its calculation of REIT taxable        tax-exempt DISC, all transactions be-
members, including the designated agent,       income an IRC section 965(a) inclusion          tween you and each such DISC must 
the consolidated items stated in Treasury      amount, such inclusion, as well as the          be eliminated from your receipts, ex-
Regulations section 1.1502-11 must be sub-     corresponding IRC section 965(c)                penses, assets, and liabilities. 
                                                                                              
tracted from, or added to, such aggregate.     amount, is already reflected in the line 1a     Your ENI must not include the amount 
The result is entered on line 1a.              amount.  Administrative Code § 11-              of the deemed distribution of current 

 Instructions for Form NYC-2A - 2022                                                                          Page 12

 income, if any, that was included in        section 864 of the IRC, but which are ex-    the real estate tax escalation credit must 
 your FTI.                                   cluded from federal taxable income; and      enter on line 10 the amount shown on line 
 
                                             enter on line 3 any other income not in-     4 of Part II of Form NYC-9.6. 
If you are a member of a federal affiliated                                                
                                             cluded on line 1g which would be treated 
group that files a consolidated return and                                                Line 11 - The federal bonus depreciation 
                                             as effectively connected with the conduct 
the City combined group is the same as                                                    allowed for "qualified property", as de-
                                             of a trade or business in the U.S. pursuant 
the federal group, or if all members of the                                               fined in the Job Creation and Worker As-
                                             to section 864 of the IRC were it not ex-
City group are included in a larger fed-                                                  sistance Act of 2002 is not allowed for 
                                             cluded from gross income pursuant to 
eral group filing the consolidated return,                                                Business Corporation Tax purposes ex-
                                             section 103(a) of the IRC. 
attach a copy of the federal consolidated                                                 cept for such deductions allowed with re-
return and the consolidating workpapers      LINE 6 - INCOME TAXES                        spect to "qualified New York liberty zone 
indicating the separate taxable income of    Enter any taxes on or measured by in-        property", "qualified New York liberty 
each corporation before elimination of in-   come or profit paid or accrued to the        zone leasehold improvements" and 
tercorporate transactions. If some mem-      United States, or any of its possessions,    "qualified property" placed in service in 
bers of the City combined group are not      which were deducted in computing fed-        the Resurgence Zone (generally the area 
included in the federal consolidated re-     eral CTI on line 1a.                         in the borough of Manhattan south of 
turn, but instead file separately, send a                                                 Houston Street and north of Canal 
copy of the federal consolidated return      LINES 7 AND 8 - STATE AND                    Street). For City tax purposes, deprecia-
plus a complete copy of the separate fed-    LOCAL BUSINESS TAXES                         tion deductions for all other "qualified 
eral return, as filed with the IRS, for each On line 7, in the appropriate column,        property" must be calculated as if the 
corporation not included in the federal      enter the amount deducted on your fed-       property was placed in service prior to 
consolidated group.                          eral return for business taxes paid or ac-   September 11, 2001. 
 
Line 1c(ii) - Add back the amount of any     crued to any state, any political             
federal deduction allowed pursuant to IRC    subdivision of a state or to the District of Recent Federal Legislation Effecting 
§250(a)(1)(A) to the extent such amount      Columbia if they are on or measured by       Depreciation. 
was deducted in computing your FTI re-       profits or income or include profits or in-  Section 143 of the Protecting Americans 
ported on line 1a.                           come as a measure of tax, including taxes    from Tax Hikes Act of 2015, Pub. L. No. 
                                             expressly in lieu of any of the foregoing    114-113, Div Q (December 18, 2015) 
Line 1c(iii) - Add back the amount of any    taxes. Include the New York State Met-       (“2015 PATH Act”) extended bonus de-
federal deduction allowed pursuant to        ropolitan Transportation  Business Tax       preciation so that it is available for prop-
IRC §965(c) to the extent such amount        surcharge and the MTA Payroll Tax (New       erty acquired and placed in service during 
was deducted in computing your FTI re-       York State Tax Law, Art. 23).                2015-2019; bonus depreciation was ex-
ported on line 1a.                                                                        tended through 2020 for certain property 
                                             Attach a schedule listing each locality      with a longer production period. Under 
Line 1f - Enter any intercorporate divi-     and the amount of all those taxes de-        the 2015 PATH Act, the bonus deprecia-
dends between members of the New York        ducted on your federal return.               tion is 50% for property placed in service 
City combined group that remain on line                                                   during 2015-2017, 40% for property 
1e after the application of the federal      On line 8, in the appropriate column,        placed in service during 2018, and 30% 
rules governing the computation of fed-      enter the amount of New York City Gen-       for property placed in service during 
eral CTI. However, if the combined           eral Corporation Tax, Banking Corpora-       2019. The first year depreciation for pas-
group is claiming the modification for a     tion Tax and Business Corporation Tax        senger automobiles under IRC section 
captive REIT under Ad. Code section 11-      deducted on your federal return.             280F(a)(1)(A) is increased by $8,000 for 
652(8)(r), intercompany dividends re-                                                     the 2015 tax year and the 2016 calendar 
ceived from the combined captive REIT        LINES 9, 10 AND 11 - NEW YORK                tax year for certain qualified property. 
should not be eliminated.                    CITY ADJUSTMENTS                             However, in the case of a passenger auto-
                                                                                          mobile placed in service after December 
LINES 2 and 3 - DIVIDENDS AND IN-            Lines 9 & 10 – For the designated agent,     2016, the first year additional deprecia-
TEREST AND OTHER INCOME EF-                  enter the amount on NYC-2A, column A.        tion is phased down to $6,400 in the case 
FECTIVELY CONNECTED  WITH                    For the other members of the combined        of an automobile placed in service during 
THE CONDUCT OF A  TRADE OR                   group, enter amount on Form NYC-             2018 and to $4,800 in the case of auto-
BUSINESS IN THE UNITED STATES                2A/BC and the sum on NYC-2A under            mobile placed in service during 2019. 
NOT INCLUDED ON LINE 1g BY                   total of all combined members.                
ALIEN CORPORATIONS                                                                        Most recently, section 13201(b) of the 
Alien corporations enter on line 2 divi-     Taxpayers claiming the employment op-        Tax Cuts and Jobs Act of 2017 (“TCJA”) 
dends and interest on any kind of stock,     portunity relocation costs credit or the in- extended the bonus depreciation deduc-
securities or indebtedness which are ef-     dustrial business zone credit must enter on  tion to cover property placed in service 
fectively connected with the conduct of a    line 9 the amount shown on line 5 of Part    before January 1, 2027 (except for air-
trade or business in the U.S. pursuant to    II of Form NYC-9.6. Taxpayers claiming       craft and log-production period property 

 Instructions for Form NYC-2A - 2022                                                                               Page 13

had to be placed into service before Jan-   Zone (which is generally in the borough       The federal depreciation deduction com-
uary 1, 2028.) Pursuant to section          of Manhattan south of Houston Street and      puted under the Accelerated Cost Recovery 
13201(a) of the  TCJA, for property         north of Canal Street), is in the active con- System or Modified Accelerated Cost Re-
placed in service after September 27,       duct of a trade or business by the taxpayer   covery System (IRC Section 168) is not al-
2017, the bonus depreciation rate was       in such zone, and the original use of         lowed for the following types of property: 
raised to 100% with the phase-down to       which in the Resurgence Zone com-              
begin in 2023.  The taxpayer can elect to   mences with the taxpayer after September      - property placed in service in New 
apply a 50% depreciation rate for prop-     10, 2001. The Administrative Code also          York State in taxable years begin-
erty placed in service in the taxpayer’s    requires appropriate adjustments to the         ning before January 1, 1985 (except 
first tax year ending after September 27,   amount of any gain or loss included in en-      recovery property subject to the pro-
2017.  The phase-down of the bonus de-      tire net income or unincorporated busi-         visions of Internal Revenue Code 
preciation enacted under the 2015 PATH      ness entire net income upon the                 Section 280-F) 
is still applicable for property acquired   disposition of any property for which the      
before September 28, 2017.  Thus, for       federal and New York City depreciation        - property of a taxpayer principally en-
property acquired before September 28,      deductions differ.  For further information,    gaged in the conduct of an aviation, 
2017 and placed in service in service in    see the instructions to Form NYC-2 and          steamboat, ferry, or navigation busi-
2018, the bonus depreciation is 40% and     use Form NYC-399Z for this calculation.         ness, or two or more such businesses 
30% for property placed in service in                                                       which is placed in service in taxable 
2019 with no bonus depreciation for         For tax years beginning on or after Janu-       years beginning after December 31, 
property placed in service after 2019.      ary 1, 2004, other than for eligible farmers    1988, and before January 1, 1994. In 
                                            (for purposes of the New York State farm-       place of the federal depreciation de-
Under the TCJA, the first year deprecia-    ers  school tax credit), the amount allowed     duction, a depreciation deduction 
tion limit increase of $8,000 for passenger as a deduction with respect to a sport util-    using pre-ACRS or MACRS rules 
automobiles under §280(F)(a)(1)(A) is ex-   ity vehicle that is not a passenger automo-     (IRC §167) is allowed. Enter on line 
tended to include automobiles placed in     bile for purposes of section 280F(d)(5) of      11 the ACRS adjustment from Form 
service on or before December 31, 2026.     the IRC is limited to the amount allowed        NYC-399, Schedule C, line 8, Col-
Prior to that, in order to qualify for the  under section 280F of the IRC as if the ve-     umn A. Enter on line 19 the ACRS 
$8,000 increase in bonus depreciation ,the  hicle were a passenger automobile as de-        adjustment from Form NYC-399, 
passenger automobile would have had to      fined in that section. For SUVs that are        Schedule C, line 8, Column B.  
been placed into service on or before De-   qualified property other than qualified         ACRS and MACRS may be avail-
cember 31, 2019.  This extension of the     Resurgence Zone property and other than         able for property placed in service 
placed in service deadline only applies to  New  York Liberty Zone property, the            outside New York City in years be-
automobiles acquired on or after Septem-    amount allowed as a deduction is calcu-         ginning after 1984 and before 1994. 
ber 28, 2017.  However, if the passenger    lated as of the date the SUV was actually       See Finance Memorandum 99-4 
automobiles was acquired before Septem-     placed in service and not as of September       “Depreciation for Property Placed 
ber 28, 2018, the first year additional de- 10, 2001. Note that for Business Corpora-       in Service Outside New York After 
preciation is phased down to $6,400 in the  tion Tax purposes:                              1984 and Before 1994.” 
case of an automobile placed in service                                                    
during 2018 and to $4,800 in the case of    - An SUV cannot qualify as either Qual-       LINE 12 - PAYMENT FOR USE OF 
automobile placed in service during 2019.   ified Resurgence Zone Property or as          INTANGIBLES 
                                            New York Liberty Zone property.  (See         Add back payments for the use of intan-
The Administrative Code limits the de-      Administrative Code §11-652(8)(o)).           gibles made to related members as re-
preciation for “qualified property” other                                                 quired by Ad. Code section 11-652(8)(n). 
than “Qualified Resurgence Zone prop-       - An SUV cannot qualify for the addi-         Ad. Code section 11-652(8)(n) provides 
erty” and “New York Liberty Zone prop-        tional first year depreciation avail-       that, except where a taxpayer is included 
erty” to the deduction that would have        able under the recent federal               in a combined report pursuant to Ad. 
been allowed for such property had the        legislation described above.                Code section 11-654.3 with the applica-
                                             
                                                                                          ble related member, for the purpose of 
property been acquired by the taxpayer on     On the disposition of an SUV subject 
                                                                                          computing entire net income or other ap-
September 10, 2001, and therefore, ex-        to the limitation, the amount of any 
                                                                                          plicable taxable basis, a taxpayer must 
cept for Qualified Resurgence Zone prop-      gain or loss included in income must 
                                                                                          add back royalty payments directly or in-
erty, as defined in the.Administrative        be adjusted to reflect the limited de-
                                                                                          directly paid, accrued or incurred in con-
Code and “New York Liberty Zone prop-         ductions allowed for City purposes 
                                                                                          nection with one or more direct or 
erty,” the City has decoupled from the        under this provision. 
federal bonus depreciation provision.                                                     indirect transactions with one or more re-
Qualified Resurgence Zone property is       See Finance Memorandum 22-1, “Appli-          lated members during the taxable year to 
qualified property described in section     cation of IRC §280F Limits to Sports          the extent deductible in calculating fed-
168(k)(2) of the IRC substantially all of   Utility Vehicles.”                            eral taxable income. There are four statu-
the use of which is in the Resurgence                                                     tory exceptions to this requirement. 

 Instructions for Form NYC-2A - 2022                                                                             Page 14

Those four exceptions generally can              entered into prior to January 1, 1984.      deductions or losses included in the 
apply in following situations (for addi-                                                     amount reported on line 1a. 
tional conditions that must be met, see          Any amount included in the compu-        
the Ad. Code sections indicated below):          tation of federal taxable income        d)    For taxable years beginning on or after 
                                                 solely as a result of an election made      January 1, 2021, the amount of any 
If all or part of the royalty payment a re-      under IRC section 168(f)(8) as it           gain excluded from federal gross in-
lated member received was then paid to           was in effect for agreements entered        come for the taxable year pursuant to 
an unrelated third party during the tax          into prior to January 1, 1984, must         IRC section 1400Z-2(a)(1)(A) because 
year, that portion of the payment will be        be removed when computing New               it is invested in a qualified opportunity 
exempt if the transaction giving rise to         York City taxable income.  Any              zone must be added back.  See Ad. 
the original royalty payment to the re-          amount excluded in the computation          Code section 11-652(8)(b)(23). 
lated member was undertaken for a valid          of federal taxable income solely as      
business purpose, and the related mem-           a result of an election made under      LINE 16 - PROPERTY ACQUIRED 
ber was subject to tax on the royalty pay-       IRC section 168(f)(8) must be in-       PRIOR TO 1966 
ment in this city or another city within the     cluded when computing New York          A deduction is allowed with respect to 
United States or a foreign nation or some        City taxable income.                    gain from the sale or other disposition of 
combination thereof (Ad. Code §11-                                                       any property acquired prior to January 1, 
652(8)(n)(2)(ii)(A));                            Exempt from these adjustments are       1966 (except stock in trade, inventory, 
                                                 leases for qualified mass commuting     property held primarily for sale to cus-
If the taxpayer's related member paid an         vehicles and property of a taxpayer,    tomers in the ordinary course of trade or 
aggregate effective rate of tax on the roy-      subject to the Business Corporation     business, or accounts or notes receivable 
alty payment, to this city or another city       Tax, principally engaged in the con-    acquired in the ordinary course of trade 
within the United States or some combi-          duct of an aviation, steamboat, ferry   or business). The amount of the deduc-
nation thereof, that is not less than 80 per-    or navigation business, or two or       tion with respect to each such property is 
cent of the rate of tax that applied to the      more such businesses, which is          equal to the difference between: 
                                                                                          
taxpayer under Ad. Code section 11- 604          placed in service before taxable 
                                                                                         a)  the amount of the taxpayer’s federal 
for the tax year (Ad. Code §11-                  years beginning in 1989.  
652(8)(n)(2)(ii)(B));                                                                        taxable income; and 
                                                                                          
                                                 Enter the appropriate additions and     b)  the amount of the taxpayer’s federal 
If the related member is organized under         deductions  of the designated agent on      taxable income (if smaller than the 
the laws of a foreign country that has a         lines 14 and 20, respectively, and at-      amount described in (a)), computed 
tax treaty with the United States, the re-       tach a rider to show the “safe harbor”      as if the federal adjusted basis of each 
lated member’s income from the transac-          adjustments to New York City taxable        such property (on the sale or other 
tion was taxed in such country at an             income.  With respect to the other          disposition of which gain was real-
effective rate of tax at least equal to that     members of the combined group,              ized) on the date of the sale or other 
imposed by this city, and the transaction        enter the adjustments on lines 14 and       disposition had been equal to either: 
                                                                                          
giving rise to the royalty was undertaken        20, respectively of each member’s 
                                                                                            1) its fair market value on January 
for a valid business purpose and reflected       NYC-2A/BC and attach a rider show-
                                                                                               1, 1966, or the date of its sale or 
an arm's length relationship. (Ad. Code          ing the “safe harbor” adjustments to 
                                                                                               other disposition prior to January 
§11- 652(8)(n)(2)(ii)(C)); or                    New York City taxable income. 
                                                                                               1, 1966, plus or minus all adjust-
                                                                                               ments to basis made with respect 
                                              b) Any “windfall profit” tax deducted 
If the taxpayer and the Department of Fi-                                                      to such property for federal in-
                                                 in computing federal income must 
nance agree to alternative adjustments                                                         come tax purposes for periods on 
                                                 be added back when computing 
that more appropriately reflect the tax-                                                       or after January 1, 1966; or 
                                                 NYC entire net income. 
payer's income (Ad. Code §11-                                                                
652(8)(n)(2)(ii)(D)).                         c) For tax years beginning on or after        2) the amount realized from its sale 
                                                 August 1, 2002, corporations that are         or other disposition, whichever 
The law as amended also defines the term         partners in partnerships that receive         is lower. 
“related member” by linking it to the def-       at least eighty percent of their gross 
                                                                                         In no event, however, shall the total 
inition in Internal Revenue Code section         receipts from providing mobile 
                                                                                         amount computed above exceed the tax-
465(b)(3)(c), but substituting 50 percent        telecommunications services must 
                                                                                         payer’s net gain for the year from the sale 
for the 10 percent ownership threshold.          exclude their distributive share of in-
                                                                                         or other disposition of property (other than 
                                                 come, gains, losses and deductions 
                                                                                         stock in trade, inventory, property held pri-
LINE 14 - OTHER ADDITIONS                        from any such partnership, including 
                                                                                         marily for sale to customers in the ordi-
a) The Ad. Code nullifies the effects of         their share of separately reported 
                                                                                         nary course of trade or business, or 
   federal “safe harbor leases” upon             items, from their federal taxable in-
   New  York City taxable income                                                         accounts or notes receivable acquired in 
                                                 come reported on line 1a. Include in 
   (§§11-652(8)(a)(8) and (9) of the Ad.                                                 the ordinary course of trade or business).  
   Code). This applies to agreements             this line the distributive share of any 
                                                                                         Attach a rider showing computation and a 

 Instructions for Form NYC-2A - 2022                                                                              Page 15

copy of federal Form 1120 Schedule D.           any amount treated as dividends pur-       amount of New York City small business 
                                                suant to section 78 of the IRC.            loans and New York City residential mort-
LINE 17 - CITY AND STATE                                                                   gages. The second modification is avail-
REFUNDS                                      d) Regulated investment companies             able to small thrifts and qualified 
Enter on line 17 refunds or credits of the      and Real Estate Investment Trusts          community banks that maintained a REIT 
New York City General Corporation Tax,          (REITs) must include the amount of         on April 1, 2014. The third modification is 
New York State Franchise Tax or New York        their federal dividends paid deduc-        available to thrifts and qualified commu-
City or State Banking Corporation Tax or        tion on this line.                         nity banks that hold a qualified residential 
                                              
New York City Business Corporation Tax       e) For tax years beginning on or after Au-    loan portfolio. The fourth modification is 
for which no tax exclusion or deduction         gust 1, 2002, corporations that are part-  available for taxpayers and combined 
was allowed in determining the taxpayer’s       ners in partnerships that receive at least groups that have less than $150 billion of 
taxable (entire) net income in a prior year.    eighty percent of their gross receipts     assets and make or purchase (immediately 
 
                                                from providing mobile telecommuni-         after origination) loans secured by resi-
LINE 18 - FEDERAL JOBS CREDIT 
                                                cations services must exclude their dis-   dential real property in New York City that 
Enter the portion of wages and salaries 
                                                tributive share of income, gains, losses   is used for affordable housing or located in 
paid or incurred for the taxable year for 
                                                and deductions from any such partner-      a low income community. There are limi-
which a deduction is not allowed pur-
                                                ship, including their share of separately  tations on which modifications a taxpayer 
suant to the provisions of Section 280C 
                                                reported items, from their federal tax-    meeting these general criteria are eligible 
of the Internal Revenue Code because the 
                                                able income reported on line 1a. In-       to subtract. Further information can be 
federal targeted jobs tax credit was taken. 
                                                clude in this line the distributive share  found in the instructions to Form NYC-2.2. 
Attach federal Form 5884 or any other                                                       
                                                of any such income or gains included 
applicable federal forms.                                                                  If you have completed Form NYC-2.2, 
                                                in the amount reported on line 1a. 
                                                                                           enter the amount from Form NYC-2.2, 
LINE 19 - DEPRECIATION                       f) The amount of any gain included in         schedule A, line 1 on Line 23. 
ADJUSTMENT                                      entire net income pursuant to Ad.           
Enter on line 19 the adjustments from           Code section 11-652(8)(b)(23) in a         LINE 24 - ENTIRE NET INCOME 
Form NYC-399 and/or Form NYC-399Z,              previous tax year that is included in      If line 21 is greater than line 15 or line 23 
Schedule C, line 8, Column B. See in-           federal gross income in the current        is greater than line 22 so that the amount 
structions for Schedule B, line 11.             tax year should be subtracted.  See        on this line is a loss, you must continue to 
                                                                                           complete this form. DO NOT enter zero 
                                                Ad. Code section 11-652(8)(a)( 16). 
LINE 20 - OTHER SUBTRACTIONS                                                               or skip any lines. 
                                              
a) Refer to instructions to Schedule B,                                                     
                                             g) The amount of any grant received 
 line 14 for adjustments relating to                                                       LINE 25 - INVESTMENT AND 
                                                through either the COVID-19 Pan-
 safe harbor leases.                                                                       OTHER EXEMPT INCOME 
                                                demic Small Business Recovery 
b) Taxpayers entitled to a special de-          Grant Program, pursuant to section-        Under Subchapter 3-A, investment in-
 duction for construction, reconstruc-          ff of the New York State Urban De-         come is not subject to tax. Investment in-
 tion, erection or improvement of               velopment Corporation Act, or the          come is income from stocks of 
 industrial waste treatment facilities          Small Business Resilience Grant            nonunitary corporations held for invest-
 or air pollution control facilities ini-       Program administered by the De-            ment for more than one year that satisfy 
 tiated on or after January 1, 1966,            partment of Small Business Serv-           the definition of capital asset under sec-
 and having a situs in NYC in accor-            ices, to the extent the amount of          tion 1221 of the Internal Revenue Code 
 dance with section 11-652(8)(g)                either grant is included in federal        (IRC) at all times during the year, that 
 should submit a rider showing the              taxable income.                            would generate capital gain or loss upon 
 complete computation.                                                                     disposition and that are clearly identified 
                                             LINES 23 THROUGH 36                           as held for investment in the same man-
                                              
 Enclose certification of compliance is-                                                   ner required under IRC section 
                                             Forms NYC-2.1 NYC-2.2, NYC-2.3 
 sued pursuant to Section 17-0707 or                                                       1236(a)(1) (whether or not the taxpayer 
                                             and NYC-2.4 
 Section 19-0309 of the Environmental                    generally should be com-
 Conservation Law. Entire net income         pleted on a combined basis. See the in-       is a dealer), and for all stock acquired 
 for the current year and all succeeding     structions for each of those forms for        after January 1, 2015, that has never been 
 years must be computed without any          more information.                             held for sale to customers after the close 
                                                                                           of the day on which the stock was ac-
 deduction for such expenditures or for      LINE 23 - SUBTRACTION MODIFI-                 quired. Income that cannot be included in 
 depreciation of such property.              CATION FOR QUALIFIED BANKS                    allocable business income under the U.S. 
 
c) Deduct foreign dividend gross-up          Four new ENI modifications have been          Constitution is also investment income. 
 pursuant to section 78 of the IRC (see      created under Subchapter 3-A to encour-       See Ad. Code §§11- 652(4) and (5), the 
 federal Form 1120, Schedule C, line         age local lending. The first modification is  instructions to Form NYC-2.1 and Fi-
 15) to the extent included in line 1a.      available to small thrifts and qualified      nance Memorandum 15-3. If you have 
 Entire net income does not include          community banks for holding a significant     this type of income, complete Form 

 Instructions for Form NYC-2A - 2022                                                                                  Page 16

NYC-2.1 and enter the amount from Line       the amount on line 32a or 32b.  Enter the     Line 6 - The amount entered on this line 
1 of Schedule D of that form on this line.   result on line 34.  For the NOL deduction,    should equal the amount entered on 
The amount entered on this line must not     complete Form NYC-2.4 and enter the           Schedule B, line 1a. 
exceed your combined ENI (line 24).          amount from line 6 of that form on line 35.    
                                                                                           Lines 7 through 10 - Report the amount 
LINE 27 - EXCESS INTEREST DE-                Reconciliation of aggregate of federal        of certain specific adjustments that were 
DUCTIONS ATTRIBUTABLE  TO                    separate taxable income to federal con-       included on either line 2 or line 4. The 
INVESTMENT INCOME                            solidated taxable income (CTI)                amount reported should be computed as 
Enter amount from Form NYC-2.1,                                                            if the New York City combined  group 
Schedule D, line 2. For more information     Column A - Enter the legal name of each       had together filed a consolidated federal 
see the instructions for Form NYC-2.1.       member of the New York City combined          Form 1120. 
                                             group. Use row A to enter the group’s          
LINE 29 - ADDBACK OF INCOME                  designated agent. Include non-taxpayer 
                                                                                           Schedule C 
PREVIOUSLY REPORTED AS IN-                   members of the group. 
                                                                                            
VESTMENT INCOME                              Column C - For each member, enter the         Computation of tax on combined capi-
An addback to business income is re-         percentage of the voting power of the         tal base 
quired when the presumptive holding pe-      capital stock that is owned, directly or in-  The tax on the combined capital base is 
riod for qualification as investment         directly, by all other members of the New     computed on that portion of the combined 
capital is not met. See the instructions to  York City combined group.                     capital allocated  to New York City. In 
Form NYC-2.1 and  Ad. Code §§11-              
                                                                                           computing combined capital, all intercor-
652(4)(d) and 11-652(5) for more infor-      Column D - If the member filed as part 
                                                                                           porate stockholdings, intercorporate bills, 
mation.                                      of a federal consolidated group, mark an 
                                             X in the box.                                 intercorporate notes receivable and 
Enter the amount from NYC-2.1, Sched-                                                      payable, intercorporate accounts receiv-
ule F, line 6 on line 29.                    Column E - For each member, enter the         able and payable, and other intercorporate 
                                             form number of the federal return filed       indebtedness, shall be eliminated. Com-
LINE 32b                                     by, or on behalf of, that member.             bined capital is all assets, other than in-
If the amount on line 32a is not correct,                                                  vestment capital and stock issued by the 
enter the correct amount on line 32b and     Column G - For each member, enter the 
                                                                                           taxpayer, less liabilities not deducted from 
explain in a rider.                          federal separate taxable income or loss 
                                                                                           investment capital. Combined capital in-
                                             before applying the rules and the adjust-
                                                                                           cludes only those assets the income, loss, 
LINES 33, 34 AND 35 - PRIOR NET              ments required by Treasury Regulations 
OPERATING LOSS CONVERSION                    section 1.1502-12.                            or expense of which are properly reflected 
SUBTRACTION  AND NET OPER-                                                                 (or would have been properly reflected if 
ATING LOSS DEDUCTION                         NOTE: The amount to enter is    not the       not fully depreciated or expensed, or de-
                                             amount the designated agent entered on        preciated or expensed to a nominal 
NOTE:  Line 35 is to be used for any net     line 32 of Schedule  A, nor is it the         amount) in the computation of ENI for the 
operating loss accumulated for tax years     amount a combined group member en-            tax year. Corporate partners filing using 
beginning on or after January 1, 2015.       tered on line 4 of Schedule A of its Form     the aggregate method must include their 
You may not carry forward to any period      NYC-2A/BC, as those amounts were              proportionate part of the partnership’s as-
beginning on or after January 1, 2015 any    after the application of Treasury Regula-     sets and liabilities in their computation. 
net operating loss (NOL) from any period     tions section 1.1502-12.  If more space is     
beginning before that date. Accordingly,     needed, attach additional sheets provid-      SCHEDULE C, PART 1 
no NOL from any period beginning be-         ing the information in the same format.       COMPUTATION OF TOTAL BUSI-
                                              
fore January 1, 2015 may be deducted on                                                    NESS CAPITAL 
                                             Line 2 - Enter the combined group’s ag-        
line 35. Instead, all NOLs from a periods 
                                             gregate amount of the adjustment to line      If this report is for a period other than 
beginning before January 1, 2015 must be     1 as a result of the application of the rules twelve calendar months, do not prorate the 
converted into the Prior Net Operating       of Treasury Regulations section 1.1502-       amounts in Parts 1 and 2.  Amounts are 
Loss Conversion (PNOLC) Subtraction          12. Apply such rules as if the New York       only prorated in Part 3 of this schedule 
pool and then deducted on line 33 in ac-     City combined group had together filed a      (see special instructions for Schedule C, 
cordance with the PNOLC Subtraction          consolidated federal Form 1120.               Part 3).  
rules. For more on the PNOLC Subtrac-         
tion rules see the instructions for Form     Line 4 - Enter the combined group’s ag-        
NYC-2.3. For more on the NOL deduc-          gregate amount of the adjustment to line      Check the box to indicate the basis used 
tion, see instructions for Form NYC-2.4.     3 as a result of the application of the rules to determine the average value in col-
                                             of Treasury Regulations section 1.1502-       umn  D.  Attach a detailed schedule to 
For the PNOLC Subtraction, complete          11. Apply such rules as if the New York       show the calculation of the average 
Form NYC-2.3 and enter the amount from       City combined group had together filed a      value listed in column  D. 
Schedule C, line 4 of that form on line 33.  consolidated federal Form 1120.                
Subtract the amount on line 33, if any, from                                                

 Instructions for Form NYC-2A - 2022                                                                                  Page 17

LINES 1 THROUGH 5 - AVERAGE                  method of averaging used to determine       LINE 2 - LIABILITIES DIRECTLY 
VALUE OF TOTAL ASSETS                        average value of assets. In column A,       ATTRIBUTABLE TO INVESTMENT 
To determine the value of your assets for    enter the average value entered on line     CAPITAL 
business and investment capital purposes,    34c of Schedule A for the designated        Enter the portion of the amount included on 
you must include real property and mar-      agent. In column B, enter the sum of the    form NYC-2.1, Schedule E, Part 4, Column 
ketable securities at fair market value. The amounts from Form NYC-2A/BC,                G, line 4 that represents the liabilities di-
value of all other property must be in-      Schedule C, line 6, column C for each       rectly attributable to investment capital. This 
cluded at the value shown on the taxpayer's  other member  of the combined group. In     would be the amount that would have been 
books and records in accordance with gen-    column C, enter any required intercorpo-    entered on Line B of the Column G work-
erally accepted accounting principles        rate eliminations. In column D, enter the   sheet in the instructions to Form NYC-2.1. 
(GAAP). Attach a schedule showing the        result of column A, plus column B, minus     
computation of the average value.  Aver-     column C.                                   LINE 3 - LIABILITIES DIRECTLY 
age value is generally computed on a quar-                                               ATTRIBUTABLE TO  BUSINESS 
terly basis. A more frequent basis (monthly, LINES 8 AND 9                               CAPITAL   
weekly or daily) may be used. Where the      Enter on line 8 the amount from Schedule    Enter the same amount that you entered 
taxpayer’s usual accounting practice does    D, line 4. Subtract the amount on line 8    on Line C of the Column G worksheet 
not permit computation of average value      from the amount on line 7 and enter the     (Computation of liabilities indirectly at-
on a quarterly or more frequent basis, a     difference on line 9 of this Schedule C.    tributable to a particular item of invest-
semiannual or annual basis may be used if    If the amount on Schedule D, line 4 is      ment capital) on page 4 of the Instructions 
no distortion of average value results.      less than zero, enter zero (“0”) on line 8  to Form NYC-2.1. 
                                                                                          
                                             of Schedule C, Part 1, and enter the 
                                                                                         LINE 6 -  AVERAGE FMV OF IN-
Distortion is more likely to be present in   amount from line 7 on line 9. 
a return covering a short period (a period                                               VESTMENT CAPITAL BEFORE 
less than twelve calendar months) where      Line 10 - An addback to business capital    SUBTRACTION OF LIABILITIES 
the average value is determined on a         is required when the presumptive hold-      ATTRIBUTABLE   
quarterly or less frequent basis. There-     ing period for qualifications of invest-    Enter the average FMV of investment 
fore, the taxpayer should use as frequent    ment capital is not met (Ad. Code           capital before subtraction of liabilities at-
a basis as possible to provide an accurate   §11-652(4)(d); See Form NYC-2.1).           tributable from Form NYC-2.1, Schedule 
average value of capital.                                                                E, Part 4, column F, line 4. 
                                             For  Taxpayers who are Cooperative           
                                                                                         LINE 8 - INVESTMENT CAPITAL 
With respect to real property owned          Housing Corporations: Multiply Line 
by the taxpayer and located within           11 by the business allocation percent-      FACTOR 
New York City, the fair market value         age from Schedule F, Part 3 and enter       Divide line 6 by line 7 and express as a 
is presumed to be not less than the es-      the result on Schedule C, Part 3, line      percentage.  Round to the nearest ten-
timated market value of the property         3a.  If the result is less than zero, enter thousandth of a percentage point. 
on the Final Assessment Roll of the          zero.  Enter the Boro, block and lot         
City for the period covered by the re-       numbers for the taxpayer where indi-        LINE 12 - LIABILITIES DIRECTLY 
turn or the most recent sales price,         cated on Schedule C, Part 3, line 3b and    AND INDIRECTLY  ATTRIBUTA-
whichever is greater.                        complete line 3b.  DO NOT complete          BLE TO BUSINESS CAPITAL 
                                             Schedule C, Part 2.                         If the amount of liabilities directly and 
In column A, enter the average value en-                                                 indirectly attributable to business capital 
tered on line 33c of Schedule A for the      All other taxpayers must complete           exceeds the fair market value of business 
designated agent. In column B, enter the     Schedule C, Part 2.                         capital, STOP HERE.  You do not owe 
                                                                                         any tax on business capital. 
sum of the amounts from  Form NYC-           SCHEDULE C, PART 2 (For more in-             
2A/BC, Schedule C, line 1, column C, for     formation see Finance Memorandum            LINE 13 - LIABILITES DIRECTLY 
each other member of the combined            17-2, “Tax on Capital: Calculating Lia-     ATTRIBUTABLE TO  INSURANCE 
group.  In column D, enter the result of     bilities  Attributable to Categories of     AND UTILITY CAPITAL 
column A, plus column B, minus column        Business Capital” 03/02/2017)               Enter the amount of liabilities directly 
C.  On line 2, enter the value of real prop-                                             and indirectly attributable to Insurance 
erty and marketable securities included in   COMPUTATION OF LIABILITIES                  and Utility Capital. 
line 1. Enter on line 4 the fair market      ATTRIBUTABLE TO INVESTMENT                   
value of real property and marketable se-    CAPITAL AND WITHIN BUSINESS                 LINE 14 - LIABILITIES DIRECTLY 
curities.                                    CAPITAL                                     ATTRIBUTABLE TO  GENERAL 
                                                                                         BUSINESS CAPITAL 
LINE 6 - TOTAL LIABILITIES                   LINE 1 - TOTAL LIABILITIES                  Enter the liabilities directly attributable to 
Enter the amount of all liabilities attrib-  Enter the total liabilities from line 6 of  “General Business Capital.” General Busi-
utable to assets entered on line 1, both     Schedule C, Part 1, above.                  ness Capital is Business Capital other than 
long and short term. Use the same                                                        Insurance Capital and Utility Capital. 

 Instructions for Form NYC-2A - 2022                                                                          Page 18

LINE 15 - AVERAGE FMV OF IN-                    tion or an insurance corporation.            combined groups who allocate income 
SURANCE AND UTILITY CAPITAL                                                                  and capital both inside and outside of 
BEFORE SUBTRACTION OF LIA-                      LINE 3a                                      New York City must so allocate based on 
BILITIES ATTRIBUTABLE                           See the last paragraph of the instructions   their receipts factor: i.e. the percentage of 
Enter the average fair market value of In-      to Schedule C, Part 1.                       all receipts that are from sources inside 
surance and Utility Capital before sub-                                                      New York City.  See Administrative Code 
traction of any liabilities.                    Schedule D                                   sections 11-654(3)(a)(10)(x) and 11-
                                                Computation of combined investment           654.2.  These combined groups as well as 
LINE 16 - INSURANCE AND UTIL-                   capital for the current tax year.            combined groups that do not allocate in-
ITY CAPITAL FACTOR                                                                           come and capital outside of New York 
Divide line 15 by line 10 and express as        This schedule computes the amount of in-     City must complete Schedule F, Part 1. 
a percentage.  Round to the nearest ten-        vestment capital that is excluded from the    
thousandth of a percentage point.               tax on the capital base and is reported on   A combined group that has New York City 
 
                                                Schedule C, Part 1, line 8. Enter on this    receipts of $50,000,000 or less which allo-
LINE 19 - NET INSURANCE AND 
                                                Schedule D the amounts indicated on Sched-   cates business income and business capital 
UTILITY CAPITAL  
                                                ule E and Schedule F from Form NYC-2.1.      may make a one-time election to allocate 
If this line has a positive number after                                                     business income and business capital using 
subtracting the amount on line 18 from          For more information on investment cap-      the same weighted three-factor weighted 
the amount on line 15, reduce this amount       ital, see Form NYC-2.1.                      formula used to allocate income and capi-
by any negative value from line 22.              
                                                                                             tal for the 2017 tax year.  See Administra-
                                                NOTE: You must file Form NYC-2.1 
                                                                                             tive Code sections 11-654(3)(a)(10)(xii) 
LINE 22 - NET GENERAL BUSI-                     and identify investment capital items or 
                                                                                             and 11-654(3)(a)(10)(ix).  An eligible com-
NESS CAPITAL                                    the subtraction will be disallowed. 
Subtract the amounts on lines 15 and 21                                                      bined group which makes the weighted fac-
                                                 
from the amount on line 10, and add the                                                      tor election must check the appropriate box 
amount on Schedule C, Part 1, line 10 to that   Schedule F                                   provided, skip Schedule F, Part 1 and com-
amount.  If the result is positive, reduce this Business Allocation                          plete Schedule F, Part 2.  For more infor-
                                                 
result by any negative value from line 19.                                                   mation on the weighted factor election, see 
                                                NOTE: Zip codes beginning with the           below. 
SCHEDULE C, PART 3                              following three-digits are within the five    
COMPUTATION OF CAPITAL BASE                     boroughs of New York City:                   Special Entities 
                                                 
                                                Manhattan 100, 101, 102 
Special Instructions If This Report Is For                                                   FOREIGN AIRLINES 
                                                Bronx 104 
A Period Other Than 12 Calendar Months.                                                      Foreign airlines that have a foreign air 
                                                Brooklyn 112 
If the period covered by this report is other                                                carrier permit pursuant to section 402 of 
                                                Queens 111, 113, 114, 116 
than a period of twelve calendar months,                                                     the Federal Aviation Act of 1958 may ex-
                                                Staten Island 103 
first calculate preliminary amounts for                                                      clude from ENI all income from interna-
                                                 
lines 1a, 2a and 3a of this Part by filling in                                               tional operations effectively connected to 
                                                In addition, the five-digit zip codes 11004, 
Schedule C, Parts 1 and 2 without prorat-                                                    the United States, foreign passive income, 
                                                11005 and some addresses with a zip code 
ing. Before entering these amounts on                                                        and income earned from overseas opera-
                                                of 11001, 11040 and 11096 are in the bor-
lines 1a, 2a and 3a of this Part, multiply                                                   tions, provided the foreign country in 
                                                ough of Queens. If the zip code is 11001, 
each amount by a fraction, the numerator                                                     which the airline is based has a similar ex-
                                                11040 or 11096, consult the address trans-
of which is the number of months or major                                                    emption from tax with respect to United 
                                                lator located on the City’s website at: 
parts thereof included in such period and                                                    States airlines. (Ad. Code Section 11-
the denominator of which is twelve.             http://a030- goat.nyc.gov/goat/Default.aspx  652(8)(c-1)). 
                                                to determine if the corporation's address     
LINES 1a AND 1b                                 is within New York City.                     Receipts directly attributable to the gen-
If the amount on Part 2, line 22 is less                                                     eration of income described above not in-
than zero, enter zero on lines 1a and 1b.       A corporation is entitled to allocate part   cluded in entire net income under Ad. 
                                                of its business income and capital outside   Code Section 11-652(8)(c-1) are ex-
LINES 2a AND 2b                                 New York City if it carries on business      cluded when calculating the business al-
If the amount on Part 2, line 20 is greater     both inside and outside New York City,       location percentage.  The same is true for 
than zero, enter that amount on line 2a,        or otherwise carries on business in New      property and wages, salaries or other per-
and multiply that amount by 0.075% and          York City and less than 100% of its re-      sonal service compensation for eligible 
enter the result on line 2b.  If the amount     ceipts are allocated to New York City.       taxpayers making the weighted factor 
on Part 2, line 20 is not greater than zero,                                                 election.  See  Ad. Code Section 11- 
enter zero on lines 2a and 2b.  In all          Except for eligible combined groups who      654(3)(a)(11)).  
cases, check the box(s) to indicate if the      make the election to allocate using           
capital is attributable to a utility corpora-   weighted allocation factors, taxpayer        However, if the country in which the for-

 Instructions for Form NYC-2A - 2022                                                                                  Page 19

eign airline is based does not provide a      City receipts of $50,000,000 or less       the group.  The amounts entered in Col-
similar exemption from tax with respect       which allocates business income and        umn B should be the total of the amounts 
to United States airlines, the foreign air-   business capital may make a one-time       from the corresponding lines from 
line is not entitled to the exclusions from   election to allocate business income and   Schedule F, Part 2, of each member’s 
income and capital described above.           business capital using the same weighted   Form 2A/BC that must be attached to 
(Ad. Code §11-652(6)(b)).                     three-factor weighted formula taxpayer     Form NYC-2A. 
                                              combined groups used to allocate in-        
AVIATION CORPORATIONS AND                     come and capital for the 2017 tax year.    New York City amounts to enter in   row 
CORPORATIONS OPERATING                        Such election may only be made during      (A) of Schedule F, Part 2, lines 1a through 
VESSELS                                       the corporations’ first taxable year com-  3a are determined per the specific line in-
Aviation corporations and corporations        mencing on or after January 1, 2018, and   structions below. Everywhere amounts to 
operating vessels must complete this          shall remain in effect until revoked. To   enter in row (B)   of Schedule F, Part 2, 
Schedule F.  Additionally, these corpora-     revoke the election, check the revocation  lines 1a through 3a should be 100%, be-
tions must complete Form NYC-2.5A.            box and complete Schedule F, Part 1.       fore intercorporate eliminations, of the 
The special allocation rules formerly         Once revoked, the election may not be      Property, Receipts, or Wages, salaries or 
used to allocate the income of these cor-     made again.  See Administrative Code       other compensation of employees, unless 
porations are now used in allocating the      sections 11-654(3)(a)(10)(xii) and 11-     otherwise specified.  The amount entered 
receipts of these corporations on Form        654(3)(a)(10)(ix).                         on line 2a(A) of Schedule F, Part 2, is 
NYC-2.5A. See the instructions for Form                                                  from line 54a, Column D of Form NYC-
NYC-2.5A  for more information.               WEIGHTED FACTOR ALLOCATION                 2.5A.  The amount entered on line 2a(B) 
                                              For taxable years beginning in or after    of Schedule F, Part 2, is from line 54b, 
ALTERNATIVE ALLOCATION                        2018, combined groups using the three      Column E of Form NYC-2.5A. 
METHOD                                        factor allocation must use same weights     
You cannot use an allocation method other     as used in the 2017 taxable year for the   Skip a line only if both the numerator 
than as set out in Schedule F without the     three factors as follows: 3.5% for prop-   (New York City) and the denominator 
consent of the Department of Finance. In      erty; 3.5% for wages; and 93% for re-      (Everywhere) are zero. 
order to request consent to use a different   ceipts.  Eligible combined groups           
method of allocation, a written request,      making the weighted factor election for    For column C, the amount entered can be 
separate and apart from filing this return,   the first time must check the appropriate  either a positive or negative amount de-
must be submitted. For details on how to      box, skip Schedule F, Part 1 and com-      pending on what is being eliminated. If a 
make such a request, go to www.nyc.gov/fi-    plete Schedule F, Part 2.  The following   negative amount, use a minus (-) sign, not 
nance.                                        example illustrates the calculation of the parentheses or brackets. 
                                                                                          
                                              business allocation percentage using       For columns   D and E, if any combined 
If the consent to use a different allocation  weighted factor formula:                   total for a particular line nets to less than 
method has not been obtained at the time                                                 zero, enter  0for that line. Unless specif-
of the filing of the return, you must use the Example - Assume the percentages on        ically instructed otherwise, enter in col-
formula basis set out in Schedule F and pay   lines 1g, 2b and 3b are as follows:        umn D of any given line the result of row 
                                               
the tax in accordance therewith. If the De-
partment consents to your proposed alter-                                                A, column A plus column B, minus col-
                                              1g. 25.0002% 
                                                                                         umn C for that particular line; and enter 
native allocation method and it results in a   2b. 65.2206% 
lower tax liability than the formula basis    3b. 35.6104%                               in column E of any given line the result 
                                                                                         of row B, column  A plus column B, 
set out in Schedule F, you may be entitled    The amounts on lines 1h, 2c, 3c, 4 and 5   minus column C for that particular line. 
to claim a refund of the excess amount you    should be calculated as follows:            
have paid by filing an amended return and      
                                                                                         LINES 1 AND 2 - 
reporting the change in your tax liability     1h. 25.0002 X 3.5 = 87.5007                
using the alternative allocation method.       2c. 65.2206 X 93 = 6065.5158              Property Factor 
                                                                                          
PART 1                                        3c.  35.6104 X 3.5 = 124.6364              When computing the property percentage, 
                                               4.  Sum of above = 6277.6529              value real and tangible personal property 
LINE 1 
Enter on line 1, column A, the amount from                                               owned by the corporation at the adjusted 
                                              5.   divide line 4 by 100 
Form NYC-2.5A, line 54a, column D.            Express as a percentage: 62.7765%          basis used for federal income tax pur-
Enter on line 1, column B, the amount from                                               poses. However, you may make a one 
Form NYC-2.5A, line 54b, column E.            COMPLETING SCHEDULE F, Part 2              time revocable election to value real and 
                                              For lines 1a(A) through 1e(B) as well as   tangible personal property owned at fair 
ELECTION TO  USE WEIGHTED                     3a(A) and 3a(B), use Column A for the      market value. You must make this elec-
FACTOR ALLOCATION                             group designated agent and Column B        tion on or before the due date (or extended 
A combined group that has New York            for all the other combined members of      due date) for filing the taxpayer’s first 
                                                                                         Business Corporation Tax Return. This 

 Instructions for Form NYC-2A - 2022                                                                                    Page 20
election will not apply to any taxable year    sistant treasurer, comptroller, and any     Question 7 
with respect to which the corporation is       other officer charged with the general ex-  Note: a Form NYC-3360 or Form NYC-
included in a combined report unless each      ecutive affairs of the corporation. An ex-  3360B, as applicable should be filed if 
of the corporations included on the com-       ecutive officer whose duties are restricted the federal or New York State change in-
bined report has made the election which       to territory either inside or outside of    volved a tax period beginning before Jan-
remains in effect for such year.               New York City is not a general executive    uary 1, 2015. 
                                               officer.                                     
LINE 1b - REAL ESTATE RENTED                                                               For federal or state changes involving tax 
The value of real property rented to the       LINE 4 -                                    periods beginning on or after January 1, 
taxpayer is eight times the gross rent         Taxpayers using Schedule F, Part 2 must     2015, please submit an amended return 
payable during the year covered by this        add the values from lines 1h, 2c and 3c.    for the tax period involved. For more in 
return. Gross rent includes any amount                                                     information, see pages 5-6 of these in-
payable as rent or in lieu of rent, such as    PART 3                                      structions. 
taxes, repairs, etc., and, if there are lease- All taxpayers must complete Part 3 for       
hold improvements made by or on behalf         the return to be accepted.                  Questions 10, 11a through 11d, 12 and 13 
of the taxpayer, the amount of annual                                                      If you answer “yes” to question 10, attach 
amortization of such cost. Do not include      If not allocating, enter 100%.              a separate sheet providing street address, 
the rental of personal property on this                                                    borough, block and lot number of such 
line.                                          If using Schedule F, Part 1, divide Part 1, property. If you answer “yes” to ques-
                                               line 1, column A by column B. Round the     tions 11b, 11c or 11d, complete questions 
LINE 1d - TANGIBLE PERSONAL                    result to the nearest ten-thousandth of a   12 and 13. 
PROPERTY OWNED                                 percentage point.                            
Enter the average value of the tangible                                                    A controlling interest in the case of a cor-
personal property owned. The term “tan-        If using Schedule F, Part 2, divide Part 2  poration means: 
gible personal property” means corporeal       line 4 by 100 if no factors are missing. If  
personal property, such as machinery,          a factor is missing, divide Part 2, line 4  50% or more of the total combined vot-
tools, implements, goods and wares. Do         by the total of the weights of the factors  ing power of all classes of stock of such 
not include cash, shares of stock, bonds,      present. Note that a factor is not missing  corporation; or  
notes, credits, evidences of an interest in    merely because its numerator is zero, but    
property, or evidences of debt.                is missing if both its numerator and de-    50% or more of the total fair market 
                                               nominator are zero. Round the result to     value of all classes of stock of such cor-
LINE 1e -  TANGIBLE PERSONAL                   the nearest ten-thousandth of a percent-    poration. 
PROPERTY RENTED                                age point.                                   
Enter the average value of the tangible                                                    Question 20 
personal property you rented. The value        Schedule G                                  A corporation is deriving receipts from 
of rented tangible personal property is        Additional Required Information             activity in New York City if it has re-
eight times the gross rent payable during      All questions must be answered.             ceipts within the City of $1 million or 
the year covered by this return.                                                           more in the tax year. Further, a corpora-
                                               Question 1                                  tion that does not have $1 million of re-
Receipts Factor                                Please attach a schedule indicating all of  ceipts, but derives at least $10,000 of 
 
LINES 2a, 2b AND 2c - RECEIPTS                 the significant business activities of the  receipts from activity in the City and is 
Enter on line 2a(A), column D, the amount      combined group both in New York City        part of a unitary group of corporations 
from Form NYC-2.5A line 54, column D.          and everywhere. State the broad fields of   that meets the ownership test under §11-
Enter on line 2a(B), column E, the amount      business activities as well as the specific 654.3, will be subject to the tax if the ag-
from Form NYC-2.5A line 54, column E.          products or services (e.g., mining cop-     gregate receipts of all members of such 
                                               per, manufacturing cotton broad woven       unitary group that derive at least $10,000 
Payroll Factor                                 fabric, wholesale meat, retail men’s ap-    of receipts from activity in the City, is $1 
                                               parel, export or import chemicals, real     million. Additionally, a corporation that 
LINE 3a - WAGES AND SALARIES                   estate rental, or real estate operation of  is a credit card issuer that does not meet 
Employees within New York City gener-          motel).                                     any of the thresholds set out in section 
ally include all employees, except general                                                 11-653(1)(c), but that has at least 10 cus-
executive officers, regularly connected with   Question 2                                  tomers, or locations, or customers and lo-
or working out of an office or place of busi-  Enter your Secondary Business Code          cations, as described in section 
ness maintained by the taxpayer within                                                     11-653(1)(c), and is part of a unitary 
New York  City. For more information,          Question 4                                  group of corporations that meets the 
please see 19 RCNY §11- 66(a)(4).              If the designated agent is included in a    ownership test under section 11-654.3, 
                                               consolidated federal return, give the       will be subject to the tax if the aggregate 
General executive officers include the         name and EIN of the common parent cor-      number of customers, or locations, or 
chairman, president, vice-president, sec-      poration filing the consolidated return.    customers and locations of all members 
retary, assistant secretary, treasurer, as-                                                of such unitary group that have at least 

 Instructions for Form NYC-2A - 2022                                                                                 Page 21
10 customers, or locations, or customers    taxpayer for determining whether the tax-    
and locations, meets any of the threshold   payer meets the income requirements for     For qualified New York manufacturing 
requirements set out in section 11-         the special lower tax rate to apply.  (See  corporations, a lower tax rate will be ap-
653(1)(c). Answer YES if you are subject    Ad. Code  section 11-654.3(1)(a)(1)).       plicable to any such corporation which 
to tax solely as a result of deriving re-                                               meets the income criteria set forth on line 
ceipts in New York City.                    The special lower tax rate will be  deter-  7 and lines 10 through 12 of this Sched-
                                            mined in accordance with whichever of       ule H. 
Schedule H                                  the above stated lines is applicable.        
Determination of Tax Rate                                                               A combined group shall be treated as one 
                                            Special Lower Tax Rates for Qualified       corporation and one taxpayer for deter-
LINES A AND B                               Manufacturing Corporations                  mining  whether the taxpayer  meets the 
Enter on line A the tax rate computed or                                                income requirements for the special 
used below.  Enter on line B the line       A “manufacturing corporation" is a cor-     lower tax  rate to apply.  (See Ad. Code 
number of the tax rate computed or used     poration principally engaged in the man-    section 11-654.3(1)(a)(1)).  
below.                                      ufacturing and sale of tangible personal     
                                            property. For this purpose, the term        The special lower tax rate will be deter-
LINES Ca AND Cb                             "manufacturing" includes the process (in-   mined in accordance with whichever of 
Enter the amount on Schedule B, line 30     cluding the assembly process) (A) of        the above stated lines is applicable. 
on line Ca. If the amount on Schedule B,    working raw materials into wares suit-       
line 30 does not include all your unallo-   able for use or (B) which gives new         Financial Corporations 
cated business income, including distrib-   shapes, new qualities or new combina-        
utive shares from partnerships, add those   tions to matter which already has gone      Under Subchapter 3-A, a “financial cor-
amounts to the amount on Schedule B,        through some artificial process by the use  poration” means a corporation or, if the 
line 30 and enter the resulting amount on   of machinery, tools, appliances and other   corporation is included in a combined 
line Cb. This line Cb amount is to be used  similar equipment. A corporation is "prin-  group, a combined group, that (A) has 
in place of the amount on Schedule B,       cipally engaged" in the manufacturing       total assets reflected on its balance sheet 
line 30 when determining the applicable     activities described above, if during the   at the end of its taxable year in excess of 
tax rate on lines 1 through 13. Be sure to  taxable year, more than fifty (50) percent  one hundred billion dollars, computed 
attach an explanation.                      of the gross receipts of the corporation    under generally accepted accounting 
                                            are derived from receipts from the sale of  principles and (B)(I) allocates more than 
Generally Applicable Tax Rate               goods produced by such activities.          fifty percent of the receipts included in 
                                                                                        the denominator of its receipts fraction, 
The generally applicable tax rate for       For a combined group, more than (50)        determined under Ad. Code section 11-
Business Corporations other than Finan-     percent  of the combined group’s receipts   654.2, pursuant to Ad. Code section 11-
cial Corporations as defined in Ad. Code    (with any  intercorporate receipts elimi-   654.2(5) for its taxable year, or (II) is 
section 11-654(1)(e)(1)(i) is 8.85 per-     nated) must be the sale of goods pro-       itself or is included in a combined group 
cent. However, special lower tax rates      duced by the above-described activities.    in which more than fifty percent of the 
are applicable to small corporations and    See Ad. Code section 11-654(1)(k)(4)(i).    total assets reflected on its balance sheet 
                                             
Qualified New York Manufacturing Cor-                                                   at the end of its taxable year are held by 
                                            A “qualified New York manufacturing 
porations as described below. For any                                                   one or more corporations that are classi-
                                            corporation” is a manufacturing corpora-
tax rate calculated under lines 4 through                                               fied as (a) registered under state law as a 
                                            tion that has property described in Ad. 
6 or lines 10 through 12 of Schedule H,                                                 bank holding company or registered 
                                            Code section 11-654(1)(k)(5) and either 
express the finally determined rate as a                                                under the Federal Bank Holding Com-
                                            (A) the adjusted basis of that property for 
percentage carried out and rounded to                                                   pany Act of 1956 (12 U.S.C. §1841, et 
                                            New York State tax purposes at the close 
three (3) decimal places – i.e., 7.053%,                                                seq., as amended), or registered as a sav-
                                            of the taxable year is at least $1,000,000 
not 7.1% or 7.05%.                                                                      ings and loan holding company under the 
                                            or (B) more than 50% of its real and per-
                                                                                        Federal National Housing Act (12 U.S.C. 
                                            sonal property is located in New York 
Special Lower  Tax Rates for Small                                                      §1701, as amended), (b) a national bank 
                                            State.  A combined group will be treated 
Corporations                                                                            organized and existing as a national bank 
                                            as one corporation and one taxpayer for 
                                                                                        association pursuant to the provisions of 
                                            this purpose. 
For corporations, other than financial                                                  the National Bank Act, (12 U.S.C. §21 et. 
corporations (as defined in Ad. Code sec-   Any amount of global intangible low-        seq.), (c) a savings association or federal 
tion 11-654(1)(e)(1)(i)(A)), a lower tax    taxed income (GILTI) included in FTI is     savings bank as defined in the Federal 
rate may be applicable to any corporation   disregarded for purposes of the princi-     Deposit Insurance  Act, (12 U.S.C. § 
that meets the income criteria set forth on pally engaged test used to determine a      1813(b)(1)), (d) a bank, savings associa-
line 1 or lines 4 through 6 of Schedule H.  taxpayer’s, or combined group’s, eligi-     tion, or thrift institution incorporated or 
For a combined filer, the combined group    bility for preferential rates and amounts   organized under the laws of any state, (e) 
shall be treated as one corporation and one available to manufacturers.                 a corporation organized under the provi-

 Instructions for Form NYC-2A - 2022                                                                               Page 22
sions of 12 U.S.C. sections 611 to 631,     Exception: If City Combined Group Is       Social Security Numbers to inform indi-
(f) an agency or branch or a foreign de-    the Same  As Federal Consolidated          viduals from whom they seek this infor-
pository as defined in 12 U.S.C. section    Group                                      mation as to whether compliance with the 
3101, (g) a registered securities or com-   If the corporations in the New York City   request is voluntary or mandatory, why 
modities broker or dealer registered as     combined group are exactly the same as     the request is being made and how the in-
such by the securities and exchange com-    the corporations in the federal consoli-   formation will be used. The disclosure of 
mission or the commodities futures trad-    dated group as shown on federal Form       Social Security Numbers for taxpayers is 
ing commission, which shall include an      851, just submit federal Form 851 in PDF   mandatory and is required by section 11-
OTC derivatives dealer as defined under     form.  You need not complete the Affili-   102.1 of the Administrative Code of the 
regulations of the securities and exchange  ations Schedule.                           City of New York. Such numbers dis-
commission at title 17, part 240, section                                              closed on any report or return are re-
3b-12 of the code of federal regulations    Affiliations Schedule Requirements for     quested for tax administration purposes 
(17 CFR 240.3b-12), or (h) any corpora-     Net Operating Losses (NOLs) or             and will be used to facilitate the process-
tion whose voting stock is more than fifty  Amended Returns Regarding Preced-          ing of tax returns and to establish and 
percent owned, directly or indirectly, by   ing Years                                  maintain a uniform system for identify-
any person or business entity described     Taxpayers with any NOLs from any tax       ing taxpayers who are or may be subject 
in subitems (a) through (g) of this item,   year to be carried back to any of the 3    to taxes administered and collected by the 
other than an insurance company taxable     previous tax years or with any NOLs        Department of Finance, and, as may be 
under article thirty-three of the New York  from a previous tax year beginning on or   required by law, or when the taxpayer 
State Tax  Law. (See  Ad. Code §11-         after January 1, 2015 to be carried for-   gives written authorization to the Depart-
654(1)(e)(1)(i)).                           ward to any tax year must complete and     ment of Finance for another department, 
                                            submit an affiliations schedule for the    person, agency or entity to have access 
The rate for financial corporations is 9.00 previous tax year(s) if an NOL is to be    (limited or otherwise) to the information 
percent as stated on line 13 of Schedule    carried forward from or back to any pre-   contained in his or her return.
H.                                          vious tax year beginning on or after Jan-
                                            uary 1, 2015. 
AFFILIATIONS SCHEDULE                        
If the city combined group is the same      Taxpayers filing any amended tax return 
as the federal consolidated group, see      for any tax years beginning on or after 
below.                                      January 1, 2015 must submit an affilia-
                                            tions schedule with any amended return 
General Requirements                        filed for any of these years.  This re-
List names and addresses of all affiliated  quirement includes any amended return 
corporations, including those not in-       filed to report any Tax Base Adjustments 
cluded in this combined report, their fed-  due to federal or state tax changes. For 
eral Employer Identification Number, if     more information see  Finance Memo-
any, and principal business activity on     randum 17-5, “Reporting Federal or 
Part I. List the NAICS code and stock       State Changes” revised 10/10/2018. 
holdings at the beginning of the year on     
Part II.  Complete Parts III and IV of this Taxpayers filing any amended tax return 
Schedule, if applicable.  An affiliated     for tax years 2015 or 2016 must submit 
corporation for purposes of completing      an affiliations schedule with any 
the schedule is a corporation that satis-   amended return filed for these years.  
fies the stock ownership, control or vot-   This requirement includes any amended 
ing power requirements set forth under      return filed to report any Tax Base Ad-
“Who Must File A Combined Return” on        justments due to federal or state tax 
page 3 of these instructions, without re-   changes.  For more information see Fi-
gard to any limitation that may otherwise   nance Memorandum 17-5, “Reporting 
exclude the corporation from the com-       Federal or State Changes” revised 
bined report, including whether it is en-   10/10/2018.    
gaged in a unitary business with other       
affiliated corporations.  Submit in PDF     Use the affiliations schedule that is part 
form a copy of your New York State          of this 2022 form for the 2015 and/or the 
Form CT-50 or CT-51 along with a com-       2016 tax year. 
pleted federal Form 851 for any domes-       
tic corporations included on the            PRIVACY ACT NOTIFICATION 
Affiliations Schedule.                      The Federal Privacy  Act of 1974, as 
                                            amended, requires agencies requesting                    NYC-2A - Instructions - 2022