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Instructions for Form NYC-2.2 - 2022 Page 4
mitment to purchase made by the taxpayer prior to the loan’s orig- Total assets are those assets that are properly reflected on a balance sheet,
ination; and computed in the same manner as is required by the banking regulator of
the taxpayers included in the combined return. Assets will only be in-
(B) Satisfies conditions of item (I) or (II) of this paragraph B. cluded if the income or expenses of the assets are properly reflected (or
would have been properly reflected if not fully depreciated or expensed,
(I) The loan is secured by a housing accommodation located or depreciated or expensed to a nominal amount) in the computation of
within the city, where there are rental units in such housing ac- the taxpayer’s ENI for the tax year. Assets will not include deferred tax
commodation that are qualifying units, which for purposes of assets and intangible assets identified as goodwill. Tangible real and per-
this paragraph B, means units subject to rent control, rent sta- sonal property, such as buildings, land, machinery, and equipment are
bilization or to a regulatory agreement, provided that, each such valued at cost. Leased assets (other than assets leased under a capital
loan will be considered a qualifying loan for purposes of this lease and reflected on the balance sheet) are valued at the annual lease
modification only in proportion to a percentage equal to the payment multiplied by eight. Intangible property, such as loans and in-
number of qualifying units divided by the total number of all vestments, are valued at book value exclusive of reserves. Average assets
residential and commercial units located on the site of the real are computed using the assets measured on the first day of the tax year,
property securing the loan, as determined as of the date the loan and on the last day of each subsequent quarter of the tax year, or month,
is made. or day during the tax year.
(II) To the extent not included in item (I) of this paragraph B, loans If the total average value during the taxable year of the assets of the tax-
secured by residential real property located in a low-income payer, or if the taxpayer is included in a combined return, of the assets
community. For purposes of this modification, low-income of the combined reporting group of the taxpayer under Ad. Code §11-
community areas are census tracts within the New York City in 654.3, does not exceed $100 billion, the deduction is equal to the tax-
which the poverty rate for such tract is at least twenty percent payer’s net interest from qualifying loans.
and the median family income for such tract does not exceed
eighty percent of metropolitan area median family income. If the total average value during the taxable year of the assets of the tax-
This determination will be made by reference to the poverty payer, or if the taxpayer is included in a combined report, the assets of
and median family income census data for application of sec- the combined reporting group of the taxpayer, exceeds $100 billion but
tion 45D of the Internal Revenue Code of 1986, as in effect on is less than $150 billion, the taxpayer is allowed a deduction equal to the
April 13, 2015. taxpayer’s net interest income from qualifying loans multiplied by a frac-
tion, the numerator of which is $150 billion minus the total average value
(C) The loan is not treated as a qualifying loan in the computation of a during the taxable year of the assets of the taxpayer or if the taxpayer is
subtraction from entire net income pursuant to paragraph Ad. Code included in a combined report, the assets of the combined reporting
§11-652(8)(q) (See instructions to Schedule D above) group of the taxpayer, and the denominator of which is $50 billion.
(D) If the taxpayer applies a subtraction pursuant to Ad. Code §11- Net interest income from qualifying loans is the taxpayer’s net interest in-
652(8)(r), the interest or net gains from the loan are not recognized come from loans during the taxable year multiplied by a fraction, the nu-
by a captive REIT as defined in Ad. Code §11-601. merator of which is the gross interest income during the taxable year
from qualifying loans and the denominator of which is the gross interest
(E) A loan that meets the definition of a qualifying loan in a prior tax- income from all loans.
able year (including years prior to the effective date of this para-
graph) remains a qualifying loan in taxable years during and after Net interest income from loans is the gross interest income during the
which such loan is acquired by another corporation in the taxpayer's taxable year from loans less gross interest expense from loans. Gross in-
combined reporting group under Ad. Code §11-654.3. terest expense from loans is determined by multiplying gross interest ex-
pense by a fraction, the numerator of which is the average total value of
“Housing accommodations” for purposes of this modification means a loans owned by the taxpayer during the taxable year and the denomina-
multiple dwelling that contains at least five dwelling units together with tor of which is the average total assets of the taxpayer for the year.
the land on which such structure is situated.
SCHEDULE F
“Regulatory agreement” for purposes of this modification means a writ- Computation of total net interest income from qualifying loans
ten agreement with or approved by any local, municipal, state, federal or
other government agency that requires the provision of housing accom- Check the appropriate box to indicate whether this form is being com-
modations for families and persons of low or moderate income, and binds pleted for purpose of the subtraction under Ad. Code §11-652(8)(q) or
the owner of such real property and its successors and assigns. A regu- Ad. Code §11-652(8)(t). For purposes of determining the qualifying
latory agreement may include such other terms and conditions as the lo- loans specified on line 8 of this schedule, use the appropriate definition
cality, municipality, state, or federal government shall determine. of qualifying loans found in the instructions to Schedule D orE, above.
If both subtractions are being claimed, complete a separate Schedule F
“Rent stabilization” for purposes of this modification means, collectively, for each subtraction.
the rent stabilization law of nineteen hundred sixty-nine, the rent stabi-
lization code, and the emergency tenant protection act of nineteen sev- Form NYC-2A filers: Complete this schedule on a separate basis for
enty-four, all as in effect as of April 13, 2015 or as amended thereafter, each entity in the combined group that is a qualified community bank or
together with any successor statutes or regulations addressing substan- small thrift institution or for each member of the combined group claim-
tially the same subject matter ing a subtraction under Schedule D or Schedule E, and attach all such
schedules. Enter the total of all Schedule F, line 11 amounts on Sched-
In order to determine your eligibility for this modification, you must first ule D, line 15 or Schedule E, line 17, as appropriate.
complete Schedule F using the definition of qualifying loans above and
NOT the definition of qualifying loans applicable to Schedule D. NYC-2.2 Instructions - 2022
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