§235-71.5  Alternative tax for corporations. 
Section 1201 (with respect to alternative tax for corporations) of the Internal
Revenue Code of 1986, as amended as of December 31, 1996, shall be operative
for the purposes of this chapter and shall be applied as set forth in this
section.  If for any taxable year a corporation, regulated investment company,
or real estate investment trust has a net capital gain, then, in lieu of the
tax imposed by section 235-71, there is hereby imposed a tax (if such tax is less
than the tax imposed under section 235-71) which shall consist of the sum of:



(1)  A tax computed on the taxable income reduced by
the amount of the net capital gain, at the rates and in the manner as if this
section had not been enacted, plus



(2)  The sum of:



(A)  3.08 per cent of the lesser of:



(i)  The net capital gain determined by
including only the gain or loss which is properly taken into account for the
portion of the taxable year before April 1, 1987 (i.e., the amount in paragraph
(1)), or



(ii)  The net capital gain for the taxable year,
plus



(B)  4 per cent of the excess (if any) of:



(i)  The net capital gain for the taxable year,
over



(ii)  The amount of the net capital gain taken
into account under subparagraph (A). [L 1988, c 10, §1(1); am L 1998, c 113,
§3]