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

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

(2)  The sum of:

(A)  3.08 per cent of the lesser of:

(i)  The net capital gain determined byincluding only the gain or loss which is properly taken into account for theportion 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 takeninto account under subparagraph (A). [L 1988, c 10, §1(1); am L 1998, c 113,§3]