State Codes and Statutes

Statutes > New-york > Gct > Article-2-d > 25-a-12

§ 12. City  adjusted  gross  income  of  a  resident  individual.--(a)  General.--The city adjusted gross income of a resident individual  means  his  federal  adjusted gross income as defined in the laws of the United  States for the taxable year, with the modifications  specified  in  this  section.    (b)  Modifications  increasing  federal  adjusted gross income.--There  shall be added to federal adjusted gross income:    (1) Interest income on obligations of any state other than this  state  or  of a political subdivision of any such other state unless created by  compact or agreement to which this state is a party;    (2) Interest or dividend income on obligations or  securities  of  any  authority,  commission,  or  instrumentality of the United States, which  the laws of the United States exempt from federal  income  tax  but  not  from state or local income taxes;    (3)  Income  taxes imposed by the city, this state or any other taxing  jurisdiction, to the extent deductible in determining  federal  adjusted  gross income and not credited against federal income tax;    (4)  Interest  on  indebtedness  incurred  or continued to purchase or  carry obligations or securities the income from which is exempt from tax  under this local law, to the extent deductible  in  determining  federal  adjusted gross income;    (5)  Expenses  paid  or  incurred  during the taxable year for (A) the  production or collection of income which is exempt from tax  under  this  local  law,  or  (B)  the  management,  conservation  or  maintenance of  property held for the production of such  income,  and  the  amortizable  bond  premium  for the taxable year on any bond the interest on which is  exempt from tax under this local law, to the extent that  such  expenses  and  premiums  are  deductible  in  determining  federal  adjusted gross  income; and    (6) In the case of a taxpayer who has exercised the election permitted  by subdivisions (g) or (h)  of  this  section,  the  amount  or  amounts  required  by  said  subdivisions  to  be added to federal adjusted gross  income.    (c) Modifications reducing federal adjusted gross income.--There shall  be subtracted from federal adjusted gross income:    (1) Interest income on  obligations  of  the  United  States  and  its  possessions  to the extent includible in gross income for federal income  tax purposes;    (2) Interest or dividend income on obligations or  securities  of  any  authority,  commission  or  instrumentality  of the United States to the  extent includible in gross income for federal income  tax  purposes  but  exempt  from  state  or  local income taxes under the laws of the United  States;    (3) Pensions to officers and employees of this state, its subdivisions  and agencies, to the extent  includible  in  gross  income  for  federal  income tax purposes;    (4)  Interest  or  dividend income on obligations or securities to the  extent exempt from income tax under the laws of this  state  authorizing  the  issuance  of such obligations or securities but includible in gross  income for federal income tax purposes;    (5) The amount of any refund or credit for overpayment of income taxes  imposed by the city, the state, or any other taxing jurisdiction, to the  extent  properly  included  in  gross  income  for  federal  income  tax  purposes;    (6)  Interest  on  indebtedness  incurred  or continued to purchase or  carry obligations or securities the income from which is subject to  tax  under  this  local law but exempt from federal income tax, to the extent  that such interest is not deductible  in  determining  federal  adjustedgross  income  and  is attributable to a trade or business carried on by  the taxpayer;    (7)  Ordinary  and  necessary  expenses  paid  or  incurred during the  taxable year for (A) the production or collection  of  income  which  is  subject  to tax under this local law but exempt from federal income tax,  or (B) the management, conservation or maintenance of property held  for  the  production of such income, and the amortizable bond premium for the  taxable year on any bond the interest on which is subject to  tax  under  this  local  law  but exempt from federal income tax, to the extent that  such expenses and premiums are not  deductible  in  determining  federal  adjusted  gross  income  and  are  attributable  to  a trade or business  carried on by the taxpayer;    (8) In the case of a taxpayer who has exercised the election permitted  by subdivisions (g) or (h)  of  this  section,  the  amount  or  amounts  required  by  said  subdivisions  to be subtracted from federal adjusted  gross income;    (9) With respect to gain derived from the sale or other disposition of  any property acquired prior to July first, nineteen  hundred  sixty-six,  except  property described in subsections one and four of section twelve  hundred  twenty-one  of  the  internal  revenue  code,  the   difference  between--    (a)  the amount of the taxpayer's federal adjusted gross income or, in  the case of an estate or trust, the taxpayer's taxable income, and    (b) the amount of the taxpayer's federal adjusted gross income or,  in  the  case  of  an  estate  or  trust,  the taxpayer's taxable income (if  smaller than the amount described in (a)) computed  as  if  the  federal  adjusted  basis  of  such  property (on the sale or other disposition of  which gain was derived) on the date of the sale or other disposition had  been equal to either (i) its fair market value on July  first,  nineteen  hundred  sixty-six or the date of its sale or other disposition prior to  July first, nineteen hundred sixty-six, plus or minus all adjustments to  basis made with respect to such property for federal income tax purposes  for periods on and after July first, nineteen hundred sixty-six or  (ii)  the  amount  realized  from its sale or disposition, whichever is lower;  provided,  however,  that  the  total  modification  provided  by   this  subparagraph  shall  not  exceed  the  amount  described in (i), (ii) or  (iii)--    (i) if the taxpayer's federal adjusted gross  income  reflects  a  net  gain  from  the  sale  or other disposition of property, except property  described  in  subsections  one  and  four  of  section  twelve  hundred  twenty-one  of  the  internal revenue code, the amount of such gain plus  one thousand dollars,    (ii) if the taxpayer's federal adjusted gross income  reflects  a  net  loss  from  the  sale  or other disposition of property, except property  described  in  subsections  one  and  four  of  section  twelve  hundred  twenty-one  of  the  internal  revenue  code,  the  amount  by which one  thousand dollars exceeds such loss,    (iii) if the taxpayer's federal adjusted gross income reflects neither  a net gain nor a  net  loss  from  the  sale  or  other  disposition  of  property,  other  than property described in subsections one and four of  section twelve hundred twenty-one of  the  internal  revenue  code,  one  thousand dollars.    (d)  Modification for city fiduciary adjustment.--There shall be added  to or subtracted from federal adjusted gross income (as the case may be)  the taxpayer's share, as beneficiary of an estate or trust, of the  city  fiduciary adjustment determined under section nineteen.    (e)  Partners.--The amounts of modifications required to be made under  this section by a partner, which relate to items of income,  gain,  lossor  deduction  of  a  partnership,  shall  be  determined  under section  seventeen.    (f)  Husband  and  wife.--If  husband and wife determine their federal  income tax on a joint return  but  determine  their  city  income  taxes  separately,  they  shall  determine  their  city  adjusted gross incomes  separately  as  if  their  federal  adjusted  gross  incomes  had   been  determined separately.    (g)  Optional  modifications.--At  the  election of the taxpayer there  shall also be subtracted from federal adjusted gross  income  either  or  both  of  the  items  set  forth  in  paragraphs  one  and  two  of this  subdivision, except that only one of such items shall be subtracted with  respect to any one item of property.    (1) Depreciation with respect to any property  such  as  described  in  paragraph   three   of   this   subdivision,  not  exceeding  twice  the  depreciation allowed with respect  to  the  same  property  for  federal  income  tax  purposes.  Such  modification  shall  be  allowed only upon  condition that  any  depreciation  allowed  with  respect  to  the  same  property  in determining federal adjusted gross income shall be added to  federal adjusted gross income pursuant to paragraph six  of  subdivision  (b)  of  this  section.  The total of all deductions allowed pursuant to  this paragraph in any taxable year or years with respect to any property  shall not exceed its cost or other basis.    (2) Expenditures paid or incurred during  the  taxable  year  for  the  construction,  reconstruction,  erection  or acquisition of any property  such as described in paragraph three of this subdivision which  is  used  or  to  be  used  for  purposes  of  research  and  development  in  the  experimental or laboratory sense. Such purposes shall not be  deemed  to  include  the ordinary testing or inspection of materials or products for  quality  control,  efficiency  surveys,  management  studies,   consumer  surveys,   advertising,   promotions  or  research  in  connection  with  literary, historical or similar projects.  Such  modification  shall  be  allowed  only  on  condition  that,  for  the  taxable  years,  and  all  succeeding years, any deductions allowed for federal income tax purposes  on account of such expenditures or on account  of  depreciation  of  the  same  property,  except to the extent that its basis may be attributable  to factors other than such  expenditures,  shall  be  added  to  federal  adjusted  gross  income  pursuant to paragraph six of subdivision (b) of  this section, or in case a modification is allowable  pursuant  to  this  paragraph  for  only  a  part  of such expenditures, on condition that a  proportionate part of any such deductions allowed for federal income tax  purposes be added to federal adjusted  gross  income.  With  respect  to  property  which  is used or to be used for research and development only  in part, or during only  part  of  its  useful  life,  the  modification  allowable pursuant to this paragraph shall be limited to a proportionate  part  of the expenditures relating thereto. If a modification shall have  been allowed pursuant  to  this  paragraph  for  all  or  part  of  such  expenditures with respect to any property, and such property is used for  purposes  other  than  research and development to a greater extent than  originally reported, the taxpayer shall report such use  in  his  return  for the first taxable year during which it occurs, and the administrator  may recompute the tax for the year or years for which such deduction was  allowed,   and  may  assess  any  additional  tax  resulting  from  such  recomputation within the  time  fixed  by  subdivision  (c)  of  section  sixty-three of this local law.    (3)  Such modifications shall be allowed only with respect to tangible  property  which  is  depreciable  pursuant  to   section   one   hundred  sixty-seven of the internal revenue code, having a situs in the city and  used  in  the  taxpayer's  trade  or  business,  (A)  the  construction,reconstruction or erection of which is completed after  June  thirtieth,  nineteen  hundred  sixty-six, and then only with respect to that portion  of the basis thereof or  the  expenditures  relating  thereto  which  is  properly  attributable  to such construction, reconstruction or erection  after June thirtieth, nineteen hundred sixty-six, or (B) acquired  after  June  thirtieth,  nineteen  hundred  sixty-six by purchase as defined in  section one hundred seventy-nine (d) of the internal  revenue  code,  if  the original use of such property commenced with the taxpayer, commenced  in the city and commenced after such date.    (4)  If  the  modifications allowable for any taxable year pursuant to  this subdivision exceed  the  taxpayer's  city  adjusted  gross  income,  determined  without  the allowance of such modifications, the excess may  be carried over to the following  taxable  year  or  years  and  may  be  subtracted from federal adjusted gross income for such year or years.    (5)  In  any  taxable year when property is sold or otherwise disposed  of, with respect to which a modification has been  allowed  pursuant  to  paragraph  one  or  two  of this subdivision, the basis of such property  shall be adjusted to reflect the modifications so allowed,  and  if  the  basis  as  so  adjusted  is  lower  than  the adjusted basis of the same  property for federal income  tax  purposes,  there  shall  be  added  to  federal  adjusted gross income the amount of the difference between such  adjusted bases; but if such gain  or  loss  is  considered  a  long-term  capital  gain  or loss for federal income tax purposes, the amount to be  added shall be limited to fifty percent of the difference  between  such  adjusted bases.    (h)    Optional    modification    for    waste   treatment   facility  expenditures.--At the election of the  taxpayer,  there  shall  also  be  subtracted  from  federal  adjusted  gross  income  expenditures paid or  incurred during the taxable year for the  construction,  reconstruction,  erection or improvement of industrial waste treatment facilities and air  pollution control facilities.    (1)  (A)  The  term "industrial waste treatment facilities" shall mean  facilities  for  the  treatment,  neutralization,  or  stabilization  of  industrial  waste  (as the term "industrial waste" is defined in section  twelve hundred two  of  the  State  public  health  law)  from  a  point  immediately  preceding  the  point  of such treatment, neutralization or  stabilization to the point of disposal, including the necessary  pumping  and transmitting facilities, but excluding such facilities installed for  the  primary  purpose  of  salvaging  materials  which are usable in the  manufacturing process or are marketable.    (B) The term "air pollution control facilities" shall mean  facilities  which  remove,  reduce,  or render less noxious air contaminants emitted  from an air contamination source (as the  terms  "air  contaminant"  and  "air  contamination  source"  are  defined  in  section  twelve  hundred  sixty-seven of the state public health law)  from  a  point  immediately  preceding the point of such removal, reduction or rendering the point of  discharge  of  air, meeting emission standards as established by the air  pollution control board, but excluding such facilities installed for the  primary  purpose  of  salvaging  materials  which  are  usable  in   the  manufacturing  process  or are marketable and excluding those facilities  which rely for their efficacy on dilution, dispersion or assimilation of  air contaminants in the ambient air after emmission.    (2) Such modifications shall be allowed only    (A) with respect to tangible property which is  depreciable,  pursuant  to  section one hundred sixty-seven of the internal revenue code, having  a situs in the city and used in the taxpayer's trade  or  business,  the  construction,  reconstruction,  erection or improvement of which, in the  case of industrial waste treatment facilities, is initiated on or  afterJuly  first,  nineteen hundred sixty-six, and only for expenditures paid  or incurred prior to January first,  nineteen  hundred  seventy-two,  or  which,  in the case of air pollution control facilities, is initiated on  or after July first, nineteen hundred sixty-six, and    (B) on condition that such facilities have been certified by the state  commissioner of health or his designated representative, pursuant to the  state  public  health law, as complying with the provisions of the state  public health law, the state sanitary code and regulations,  permits  or  orders promulgated pursuant thereto, and    (C)  on condition that for the taxable year and all succeeding taxable  years, any deductions allowed for federal income tax purposes  for  such  expenditures  or  for  depreciation  of the same property, except to the  extent that its basis may be attributable to  factors  other  than  such  expenditures,  be  added  to  federal  adjusted gross income pursuant to  paragraph six  of  subdivision  (b)  of  this  section,  or  in  case  a  modification  is allowable pursuant to this paragraph for only a part of  such expenditures, on condition that a proportionate amount of any  such  deductions  allowed  for federal income tax purposes be added to federal  adjusted gross income, and    (D) where the election provided for  in  subdivision  (g)  of  section  twelve has not been exercised in respect to the same property.    (3)  (A)  If  expenditures in respect to an industrial waste treatment  facility or an air pollution control facility have  been  allowed  as  a  modification  as provided herein and if within ten years from the end of  the taxable year in which such modification was allowed such property or  any part thereof is used for the primary purpose of salvaging  materials  which  are  usable  in  the manufacturing process or are marketable, the  taxpayer shall report such change of use in its  return  for  the  first  taxable year during which it occurs, and the administrator may recompute  the  tax  for the year or years for which such modification was allowed,  and may assess any additional  tax  resulting  from  such  recomputation  within  the  time fixed by paragraph eight of subdivision (c) of section  sixty-three.    (B) If a modification is allowed as herein provided  for  expenditures  paid  or  incurred  during  any taxable year on the basis of a temporary  certificate of compliance issued pursuant to  the  state  public  health  law,  and  if  the  taxpayer  fails to obtain a permanent certificate of  compliance upon completion of the facilities with respect to which  such  temporary certificate was issued, the taxpayer shall report such failure  in  its  report  for  the  taxable year during which such facilities are  completed, and the administrator may recompute the tax for the  year  or  years  for  which  such  modification  was  allowed,  and may assess any  additional tax resulting from such recomputation within the  time  fixed  by paragraph eight of subdivision (c) of section sixty-three.    (4)  In  any  taxable year when property is sold or otherwise disposed  of, with respect to which a modification has been  allowed  pursuant  to  this paragraph, such modification shall be disregarded in computing gain  or  loss,  and the gain or loss on the sale or other disposition of such  property shall be the gain or loss  entering  into  the  computation  of  federal adjusted gross income for such taxable year.

State Codes and Statutes

Statutes > New-york > Gct > Article-2-d > 25-a-12

§ 12. City  adjusted  gross  income  of  a  resident  individual.--(a)  General.--The city adjusted gross income of a resident individual  means  his  federal  adjusted gross income as defined in the laws of the United  States for the taxable year, with the modifications  specified  in  this  section.    (b)  Modifications  increasing  federal  adjusted gross income.--There  shall be added to federal adjusted gross income:    (1) Interest income on obligations of any state other than this  state  or  of a political subdivision of any such other state unless created by  compact or agreement to which this state is a party;    (2) Interest or dividend income on obligations or  securities  of  any  authority,  commission,  or  instrumentality of the United States, which  the laws of the United States exempt from federal  income  tax  but  not  from state or local income taxes;    (3)  Income  taxes imposed by the city, this state or any other taxing  jurisdiction, to the extent deductible in determining  federal  adjusted  gross income and not credited against federal income tax;    (4)  Interest  on  indebtedness  incurred  or continued to purchase or  carry obligations or securities the income from which is exempt from tax  under this local law, to the extent deductible  in  determining  federal  adjusted gross income;    (5)  Expenses  paid  or  incurred  during the taxable year for (A) the  production or collection of income which is exempt from tax  under  this  local  law,  or  (B)  the  management,  conservation  or  maintenance of  property held for the production of such  income,  and  the  amortizable  bond  premium  for the taxable year on any bond the interest on which is  exempt from tax under this local law, to the extent that  such  expenses  and  premiums  are  deductible  in  determining  federal  adjusted gross  income; and    (6) In the case of a taxpayer who has exercised the election permitted  by subdivisions (g) or (h)  of  this  section,  the  amount  or  amounts  required  by  said  subdivisions  to  be added to federal adjusted gross  income.    (c) Modifications reducing federal adjusted gross income.--There shall  be subtracted from federal adjusted gross income:    (1) Interest income on  obligations  of  the  United  States  and  its  possessions  to the extent includible in gross income for federal income  tax purposes;    (2) Interest or dividend income on obligations or  securities  of  any  authority,  commission  or  instrumentality  of the United States to the  extent includible in gross income for federal income  tax  purposes  but  exempt  from  state  or  local income taxes under the laws of the United  States;    (3) Pensions to officers and employees of this state, its subdivisions  and agencies, to the extent  includible  in  gross  income  for  federal  income tax purposes;    (4)  Interest  or  dividend income on obligations or securities to the  extent exempt from income tax under the laws of this  state  authorizing  the  issuance  of such obligations or securities but includible in gross  income for federal income tax purposes;    (5) The amount of any refund or credit for overpayment of income taxes  imposed by the city, the state, or any other taxing jurisdiction, to the  extent  properly  included  in  gross  income  for  federal  income  tax  purposes;    (6)  Interest  on  indebtedness  incurred  or continued to purchase or  carry obligations or securities the income from which is subject to  tax  under  this  local law but exempt from federal income tax, to the extent  that such interest is not deductible  in  determining  federal  adjustedgross  income  and  is attributable to a trade or business carried on by  the taxpayer;    (7)  Ordinary  and  necessary  expenses  paid  or  incurred during the  taxable year for (A) the production or collection  of  income  which  is  subject  to tax under this local law but exempt from federal income tax,  or (B) the management, conservation or maintenance of property held  for  the  production of such income, and the amortizable bond premium for the  taxable year on any bond the interest on which is subject to  tax  under  this  local  law  but exempt from federal income tax, to the extent that  such expenses and premiums are not  deductible  in  determining  federal  adjusted  gross  income  and  are  attributable  to  a trade or business  carried on by the taxpayer;    (8) In the case of a taxpayer who has exercised the election permitted  by subdivisions (g) or (h)  of  this  section,  the  amount  or  amounts  required  by  said  subdivisions  to be subtracted from federal adjusted  gross income;    (9) With respect to gain derived from the sale or other disposition of  any property acquired prior to July first, nineteen  hundred  sixty-six,  except  property described in subsections one and four of section twelve  hundred  twenty-one  of  the  internal  revenue  code,  the   difference  between--    (a)  the amount of the taxpayer's federal adjusted gross income or, in  the case of an estate or trust, the taxpayer's taxable income, and    (b) the amount of the taxpayer's federal adjusted gross income or,  in  the  case  of  an  estate  or  trust,  the taxpayer's taxable income (if  smaller than the amount described in (a)) computed  as  if  the  federal  adjusted  basis  of  such  property (on the sale or other disposition of  which gain was derived) on the date of the sale or other disposition had  been equal to either (i) its fair market value on July  first,  nineteen  hundred  sixty-six or the date of its sale or other disposition prior to  July first, nineteen hundred sixty-six, plus or minus all adjustments to  basis made with respect to such property for federal income tax purposes  for periods on and after July first, nineteen hundred sixty-six or  (ii)  the  amount  realized  from its sale or disposition, whichever is lower;  provided,  however,  that  the  total  modification  provided  by   this  subparagraph  shall  not  exceed  the  amount  described in (i), (ii) or  (iii)--    (i) if the taxpayer's federal adjusted gross  income  reflects  a  net  gain  from  the  sale  or other disposition of property, except property  described  in  subsections  one  and  four  of  section  twelve  hundred  twenty-one  of  the  internal revenue code, the amount of such gain plus  one thousand dollars,    (ii) if the taxpayer's federal adjusted gross income  reflects  a  net  loss  from  the  sale  or other disposition of property, except property  described  in  subsections  one  and  four  of  section  twelve  hundred  twenty-one  of  the  internal  revenue  code,  the  amount  by which one  thousand dollars exceeds such loss,    (iii) if the taxpayer's federal adjusted gross income reflects neither  a net gain nor a  net  loss  from  the  sale  or  other  disposition  of  property,  other  than property described in subsections one and four of  section twelve hundred twenty-one of  the  internal  revenue  code,  one  thousand dollars.    (d)  Modification for city fiduciary adjustment.--There shall be added  to or subtracted from federal adjusted gross income (as the case may be)  the taxpayer's share, as beneficiary of an estate or trust, of the  city  fiduciary adjustment determined under section nineteen.    (e)  Partners.--The amounts of modifications required to be made under  this section by a partner, which relate to items of income,  gain,  lossor  deduction  of  a  partnership,  shall  be  determined  under section  seventeen.    (f)  Husband  and  wife.--If  husband and wife determine their federal  income tax on a joint return  but  determine  their  city  income  taxes  separately,  they  shall  determine  their  city  adjusted gross incomes  separately  as  if  their  federal  adjusted  gross  incomes  had   been  determined separately.    (g)  Optional  modifications.--At  the  election of the taxpayer there  shall also be subtracted from federal adjusted gross  income  either  or  both  of  the  items  set  forth  in  paragraphs  one  and  two  of this  subdivision, except that only one of such items shall be subtracted with  respect to any one item of property.    (1) Depreciation with respect to any property  such  as  described  in  paragraph   three   of   this   subdivision,  not  exceeding  twice  the  depreciation allowed with respect  to  the  same  property  for  federal  income  tax  purposes.  Such  modification  shall  be  allowed only upon  condition that  any  depreciation  allowed  with  respect  to  the  same  property  in determining federal adjusted gross income shall be added to  federal adjusted gross income pursuant to paragraph six  of  subdivision  (b)  of  this  section.  The total of all deductions allowed pursuant to  this paragraph in any taxable year or years with respect to any property  shall not exceed its cost or other basis.    (2) Expenditures paid or incurred during  the  taxable  year  for  the  construction,  reconstruction,  erection  or acquisition of any property  such as described in paragraph three of this subdivision which  is  used  or  to  be  used  for  purposes  of  research  and  development  in  the  experimental or laboratory sense. Such purposes shall not be  deemed  to  include  the ordinary testing or inspection of materials or products for  quality  control,  efficiency  surveys,  management  studies,   consumer  surveys,   advertising,   promotions  or  research  in  connection  with  literary, historical or similar projects.  Such  modification  shall  be  allowed  only  on  condition  that,  for  the  taxable  years,  and  all  succeeding years, any deductions allowed for federal income tax purposes  on account of such expenditures or on account  of  depreciation  of  the  same  property,  except to the extent that its basis may be attributable  to factors other than such  expenditures,  shall  be  added  to  federal  adjusted  gross  income  pursuant to paragraph six of subdivision (b) of  this section, or in case a modification is allowable  pursuant  to  this  paragraph  for  only  a  part  of such expenditures, on condition that a  proportionate part of any such deductions allowed for federal income tax  purposes be added to federal adjusted  gross  income.  With  respect  to  property  which  is used or to be used for research and development only  in part, or during only  part  of  its  useful  life,  the  modification  allowable pursuant to this paragraph shall be limited to a proportionate  part  of the expenditures relating thereto. If a modification shall have  been allowed pursuant  to  this  paragraph  for  all  or  part  of  such  expenditures with respect to any property, and such property is used for  purposes  other  than  research and development to a greater extent than  originally reported, the taxpayer shall report such use  in  his  return  for the first taxable year during which it occurs, and the administrator  may recompute the tax for the year or years for which such deduction was  allowed,   and  may  assess  any  additional  tax  resulting  from  such  recomputation within the  time  fixed  by  subdivision  (c)  of  section  sixty-three of this local law.    (3)  Such modifications shall be allowed only with respect to tangible  property  which  is  depreciable  pursuant  to   section   one   hundred  sixty-seven of the internal revenue code, having a situs in the city and  used  in  the  taxpayer's  trade  or  business,  (A)  the  construction,reconstruction or erection of which is completed after  June  thirtieth,  nineteen  hundred  sixty-six, and then only with respect to that portion  of the basis thereof or  the  expenditures  relating  thereto  which  is  properly  attributable  to such construction, reconstruction or erection  after June thirtieth, nineteen hundred sixty-six, or (B) acquired  after  June  thirtieth,  nineteen  hundred  sixty-six by purchase as defined in  section one hundred seventy-nine (d) of the internal  revenue  code,  if  the original use of such property commenced with the taxpayer, commenced  in the city and commenced after such date.    (4)  If  the  modifications allowable for any taxable year pursuant to  this subdivision exceed  the  taxpayer's  city  adjusted  gross  income,  determined  without  the allowance of such modifications, the excess may  be carried over to the following  taxable  year  or  years  and  may  be  subtracted from federal adjusted gross income for such year or years.    (5)  In  any  taxable year when property is sold or otherwise disposed  of, with respect to which a modification has been  allowed  pursuant  to  paragraph  one  or  two  of this subdivision, the basis of such property  shall be adjusted to reflect the modifications so allowed,  and  if  the  basis  as  so  adjusted  is  lower  than  the adjusted basis of the same  property for federal income  tax  purposes,  there  shall  be  added  to  federal  adjusted gross income the amount of the difference between such  adjusted bases; but if such gain  or  loss  is  considered  a  long-term  capital  gain  or loss for federal income tax purposes, the amount to be  added shall be limited to fifty percent of the difference  between  such  adjusted bases.    (h)    Optional    modification    for    waste   treatment   facility  expenditures.--At the election of the  taxpayer,  there  shall  also  be  subtracted  from  federal  adjusted  gross  income  expenditures paid or  incurred during the taxable year for the  construction,  reconstruction,  erection or improvement of industrial waste treatment facilities and air  pollution control facilities.    (1)  (A)  The  term "industrial waste treatment facilities" shall mean  facilities  for  the  treatment,  neutralization,  or  stabilization  of  industrial  waste  (as the term "industrial waste" is defined in section  twelve hundred two  of  the  State  public  health  law)  from  a  point  immediately  preceding  the  point  of such treatment, neutralization or  stabilization to the point of disposal, including the necessary  pumping  and transmitting facilities, but excluding such facilities installed for  the  primary  purpose  of  salvaging  materials  which are usable in the  manufacturing process or are marketable.    (B) The term "air pollution control facilities" shall mean  facilities  which  remove,  reduce,  or render less noxious air contaminants emitted  from an air contamination source (as the  terms  "air  contaminant"  and  "air  contamination  source"  are  defined  in  section  twelve  hundred  sixty-seven of the state public health law)  from  a  point  immediately  preceding the point of such removal, reduction or rendering the point of  discharge  of  air, meeting emission standards as established by the air  pollution control board, but excluding such facilities installed for the  primary  purpose  of  salvaging  materials  which  are  usable  in   the  manufacturing  process  or are marketable and excluding those facilities  which rely for their efficacy on dilution, dispersion or assimilation of  air contaminants in the ambient air after emmission.    (2) Such modifications shall be allowed only    (A) with respect to tangible property which is  depreciable,  pursuant  to  section one hundred sixty-seven of the internal revenue code, having  a situs in the city and used in the taxpayer's trade  or  business,  the  construction,  reconstruction,  erection or improvement of which, in the  case of industrial waste treatment facilities, is initiated on or  afterJuly  first,  nineteen hundred sixty-six, and only for expenditures paid  or incurred prior to January first,  nineteen  hundred  seventy-two,  or  which,  in the case of air pollution control facilities, is initiated on  or after July first, nineteen hundred sixty-six, and    (B) on condition that such facilities have been certified by the state  commissioner of health or his designated representative, pursuant to the  state  public  health law, as complying with the provisions of the state  public health law, the state sanitary code and regulations,  permits  or  orders promulgated pursuant thereto, and    (C)  on condition that for the taxable year and all succeeding taxable  years, any deductions allowed for federal income tax purposes  for  such  expenditures  or  for  depreciation  of the same property, except to the  extent that its basis may be attributable to  factors  other  than  such  expenditures,  be  added  to  federal  adjusted gross income pursuant to  paragraph six  of  subdivision  (b)  of  this  section,  or  in  case  a  modification  is allowable pursuant to this paragraph for only a part of  such expenditures, on condition that a proportionate amount of any  such  deductions  allowed  for federal income tax purposes be added to federal  adjusted gross income, and    (D) where the election provided for  in  subdivision  (g)  of  section  twelve has not been exercised in respect to the same property.    (3)  (A)  If  expenditures in respect to an industrial waste treatment  facility or an air pollution control facility have  been  allowed  as  a  modification  as provided herein and if within ten years from the end of  the taxable year in which such modification was allowed such property or  any part thereof is used for the primary purpose of salvaging  materials  which  are  usable  in  the manufacturing process or are marketable, the  taxpayer shall report such change of use in its  return  for  the  first  taxable year during which it occurs, and the administrator may recompute  the  tax  for the year or years for which such modification was allowed,  and may assess any additional  tax  resulting  from  such  recomputation  within  the  time fixed by paragraph eight of subdivision (c) of section  sixty-three.    (B) If a modification is allowed as herein provided  for  expenditures  paid  or  incurred  during  any taxable year on the basis of a temporary  certificate of compliance issued pursuant to  the  state  public  health  law,  and  if  the  taxpayer  fails to obtain a permanent certificate of  compliance upon completion of the facilities with respect to which  such  temporary certificate was issued, the taxpayer shall report such failure  in  its  report  for  the  taxable year during which such facilities are  completed, and the administrator may recompute the tax for the  year  or  years  for  which  such  modification  was  allowed,  and may assess any  additional tax resulting from such recomputation within the  time  fixed  by paragraph eight of subdivision (c) of section sixty-three.    (4)  In  any  taxable year when property is sold or otherwise disposed  of, with respect to which a modification has been  allowed  pursuant  to  this paragraph, such modification shall be disregarded in computing gain  or  loss,  and the gain or loss on the sale or other disposition of such  property shall be the gain or loss  entering  into  the  computation  of  federal adjusted gross income for such taxable year.

State Codes and Statutes

State Codes and Statutes

Statutes > New-york > Gct > Article-2-d > 25-a-12

§ 12. City  adjusted  gross  income  of  a  resident  individual.--(a)  General.--The city adjusted gross income of a resident individual  means  his  federal  adjusted gross income as defined in the laws of the United  States for the taxable year, with the modifications  specified  in  this  section.    (b)  Modifications  increasing  federal  adjusted gross income.--There  shall be added to federal adjusted gross income:    (1) Interest income on obligations of any state other than this  state  or  of a political subdivision of any such other state unless created by  compact or agreement to which this state is a party;    (2) Interest or dividend income on obligations or  securities  of  any  authority,  commission,  or  instrumentality of the United States, which  the laws of the United States exempt from federal  income  tax  but  not  from state or local income taxes;    (3)  Income  taxes imposed by the city, this state or any other taxing  jurisdiction, to the extent deductible in determining  federal  adjusted  gross income and not credited against federal income tax;    (4)  Interest  on  indebtedness  incurred  or continued to purchase or  carry obligations or securities the income from which is exempt from tax  under this local law, to the extent deductible  in  determining  federal  adjusted gross income;    (5)  Expenses  paid  or  incurred  during the taxable year for (A) the  production or collection of income which is exempt from tax  under  this  local  law,  or  (B)  the  management,  conservation  or  maintenance of  property held for the production of such  income,  and  the  amortizable  bond  premium  for the taxable year on any bond the interest on which is  exempt from tax under this local law, to the extent that  such  expenses  and  premiums  are  deductible  in  determining  federal  adjusted gross  income; and    (6) In the case of a taxpayer who has exercised the election permitted  by subdivisions (g) or (h)  of  this  section,  the  amount  or  amounts  required  by  said  subdivisions  to  be added to federal adjusted gross  income.    (c) Modifications reducing federal adjusted gross income.--There shall  be subtracted from federal adjusted gross income:    (1) Interest income on  obligations  of  the  United  States  and  its  possessions  to the extent includible in gross income for federal income  tax purposes;    (2) Interest or dividend income on obligations or  securities  of  any  authority,  commission  or  instrumentality  of the United States to the  extent includible in gross income for federal income  tax  purposes  but  exempt  from  state  or  local income taxes under the laws of the United  States;    (3) Pensions to officers and employees of this state, its subdivisions  and agencies, to the extent  includible  in  gross  income  for  federal  income tax purposes;    (4)  Interest  or  dividend income on obligations or securities to the  extent exempt from income tax under the laws of this  state  authorizing  the  issuance  of such obligations or securities but includible in gross  income for federal income tax purposes;    (5) The amount of any refund or credit for overpayment of income taxes  imposed by the city, the state, or any other taxing jurisdiction, to the  extent  properly  included  in  gross  income  for  federal  income  tax  purposes;    (6)  Interest  on  indebtedness  incurred  or continued to purchase or  carry obligations or securities the income from which is subject to  tax  under  this  local law but exempt from federal income tax, to the extent  that such interest is not deductible  in  determining  federal  adjustedgross  income  and  is attributable to a trade or business carried on by  the taxpayer;    (7)  Ordinary  and  necessary  expenses  paid  or  incurred during the  taxable year for (A) the production or collection  of  income  which  is  subject  to tax under this local law but exempt from federal income tax,  or (B) the management, conservation or maintenance of property held  for  the  production of such income, and the amortizable bond premium for the  taxable year on any bond the interest on which is subject to  tax  under  this  local  law  but exempt from federal income tax, to the extent that  such expenses and premiums are not  deductible  in  determining  federal  adjusted  gross  income  and  are  attributable  to  a trade or business  carried on by the taxpayer;    (8) In the case of a taxpayer who has exercised the election permitted  by subdivisions (g) or (h)  of  this  section,  the  amount  or  amounts  required  by  said  subdivisions  to be subtracted from federal adjusted  gross income;    (9) With respect to gain derived from the sale or other disposition of  any property acquired prior to July first, nineteen  hundred  sixty-six,  except  property described in subsections one and four of section twelve  hundred  twenty-one  of  the  internal  revenue  code,  the   difference  between--    (a)  the amount of the taxpayer's federal adjusted gross income or, in  the case of an estate or trust, the taxpayer's taxable income, and    (b) the amount of the taxpayer's federal adjusted gross income or,  in  the  case  of  an  estate  or  trust,  the taxpayer's taxable income (if  smaller than the amount described in (a)) computed  as  if  the  federal  adjusted  basis  of  such  property (on the sale or other disposition of  which gain was derived) on the date of the sale or other disposition had  been equal to either (i) its fair market value on July  first,  nineteen  hundred  sixty-six or the date of its sale or other disposition prior to  July first, nineteen hundred sixty-six, plus or minus all adjustments to  basis made with respect to such property for federal income tax purposes  for periods on and after July first, nineteen hundred sixty-six or  (ii)  the  amount  realized  from its sale or disposition, whichever is lower;  provided,  however,  that  the  total  modification  provided  by   this  subparagraph  shall  not  exceed  the  amount  described in (i), (ii) or  (iii)--    (i) if the taxpayer's federal adjusted gross  income  reflects  a  net  gain  from  the  sale  or other disposition of property, except property  described  in  subsections  one  and  four  of  section  twelve  hundred  twenty-one  of  the  internal revenue code, the amount of such gain plus  one thousand dollars,    (ii) if the taxpayer's federal adjusted gross income  reflects  a  net  loss  from  the  sale  or other disposition of property, except property  described  in  subsections  one  and  four  of  section  twelve  hundred  twenty-one  of  the  internal  revenue  code,  the  amount  by which one  thousand dollars exceeds such loss,    (iii) if the taxpayer's federal adjusted gross income reflects neither  a net gain nor a  net  loss  from  the  sale  or  other  disposition  of  property,  other  than property described in subsections one and four of  section twelve hundred twenty-one of  the  internal  revenue  code,  one  thousand dollars.    (d)  Modification for city fiduciary adjustment.--There shall be added  to or subtracted from federal adjusted gross income (as the case may be)  the taxpayer's share, as beneficiary of an estate or trust, of the  city  fiduciary adjustment determined under section nineteen.    (e)  Partners.--The amounts of modifications required to be made under  this section by a partner, which relate to items of income,  gain,  lossor  deduction  of  a  partnership,  shall  be  determined  under section  seventeen.    (f)  Husband  and  wife.--If  husband and wife determine their federal  income tax on a joint return  but  determine  their  city  income  taxes  separately,  they  shall  determine  their  city  adjusted gross incomes  separately  as  if  their  federal  adjusted  gross  incomes  had   been  determined separately.    (g)  Optional  modifications.--At  the  election of the taxpayer there  shall also be subtracted from federal adjusted gross  income  either  or  both  of  the  items  set  forth  in  paragraphs  one  and  two  of this  subdivision, except that only one of such items shall be subtracted with  respect to any one item of property.    (1) Depreciation with respect to any property  such  as  described  in  paragraph   three   of   this   subdivision,  not  exceeding  twice  the  depreciation allowed with respect  to  the  same  property  for  federal  income  tax  purposes.  Such  modification  shall  be  allowed only upon  condition that  any  depreciation  allowed  with  respect  to  the  same  property  in determining federal adjusted gross income shall be added to  federal adjusted gross income pursuant to paragraph six  of  subdivision  (b)  of  this  section.  The total of all deductions allowed pursuant to  this paragraph in any taxable year or years with respect to any property  shall not exceed its cost or other basis.    (2) Expenditures paid or incurred during  the  taxable  year  for  the  construction,  reconstruction,  erection  or acquisition of any property  such as described in paragraph three of this subdivision which  is  used  or  to  be  used  for  purposes  of  research  and  development  in  the  experimental or laboratory sense. Such purposes shall not be  deemed  to  include  the ordinary testing or inspection of materials or products for  quality  control,  efficiency  surveys,  management  studies,   consumer  surveys,   advertising,   promotions  or  research  in  connection  with  literary, historical or similar projects.  Such  modification  shall  be  allowed  only  on  condition  that,  for  the  taxable  years,  and  all  succeeding years, any deductions allowed for federal income tax purposes  on account of such expenditures or on account  of  depreciation  of  the  same  property,  except to the extent that its basis may be attributable  to factors other than such  expenditures,  shall  be  added  to  federal  adjusted  gross  income  pursuant to paragraph six of subdivision (b) of  this section, or in case a modification is allowable  pursuant  to  this  paragraph  for  only  a  part  of such expenditures, on condition that a  proportionate part of any such deductions allowed for federal income tax  purposes be added to federal adjusted  gross  income.  With  respect  to  property  which  is used or to be used for research and development only  in part, or during only  part  of  its  useful  life,  the  modification  allowable pursuant to this paragraph shall be limited to a proportionate  part  of the expenditures relating thereto. If a modification shall have  been allowed pursuant  to  this  paragraph  for  all  or  part  of  such  expenditures with respect to any property, and such property is used for  purposes  other  than  research and development to a greater extent than  originally reported, the taxpayer shall report such use  in  his  return  for the first taxable year during which it occurs, and the administrator  may recompute the tax for the year or years for which such deduction was  allowed,   and  may  assess  any  additional  tax  resulting  from  such  recomputation within the  time  fixed  by  subdivision  (c)  of  section  sixty-three of this local law.    (3)  Such modifications shall be allowed only with respect to tangible  property  which  is  depreciable  pursuant  to   section   one   hundred  sixty-seven of the internal revenue code, having a situs in the city and  used  in  the  taxpayer's  trade  or  business,  (A)  the  construction,reconstruction or erection of which is completed after  June  thirtieth,  nineteen  hundred  sixty-six, and then only with respect to that portion  of the basis thereof or  the  expenditures  relating  thereto  which  is  properly  attributable  to such construction, reconstruction or erection  after June thirtieth, nineteen hundred sixty-six, or (B) acquired  after  June  thirtieth,  nineteen  hundred  sixty-six by purchase as defined in  section one hundred seventy-nine (d) of the internal  revenue  code,  if  the original use of such property commenced with the taxpayer, commenced  in the city and commenced after such date.    (4)  If  the  modifications allowable for any taxable year pursuant to  this subdivision exceed  the  taxpayer's  city  adjusted  gross  income,  determined  without  the allowance of such modifications, the excess may  be carried over to the following  taxable  year  or  years  and  may  be  subtracted from federal adjusted gross income for such year or years.    (5)  In  any  taxable year when property is sold or otherwise disposed  of, with respect to which a modification has been  allowed  pursuant  to  paragraph  one  or  two  of this subdivision, the basis of such property  shall be adjusted to reflect the modifications so allowed,  and  if  the  basis  as  so  adjusted  is  lower  than  the adjusted basis of the same  property for federal income  tax  purposes,  there  shall  be  added  to  federal  adjusted gross income the amount of the difference between such  adjusted bases; but if such gain  or  loss  is  considered  a  long-term  capital  gain  or loss for federal income tax purposes, the amount to be  added shall be limited to fifty percent of the difference  between  such  adjusted bases.    (h)    Optional    modification    for    waste   treatment   facility  expenditures.--At the election of the  taxpayer,  there  shall  also  be  subtracted  from  federal  adjusted  gross  income  expenditures paid or  incurred during the taxable year for the  construction,  reconstruction,  erection or improvement of industrial waste treatment facilities and air  pollution control facilities.    (1)  (A)  The  term "industrial waste treatment facilities" shall mean  facilities  for  the  treatment,  neutralization,  or  stabilization  of  industrial  waste  (as the term "industrial waste" is defined in section  twelve hundred two  of  the  State  public  health  law)  from  a  point  immediately  preceding  the  point  of such treatment, neutralization or  stabilization to the point of disposal, including the necessary  pumping  and transmitting facilities, but excluding such facilities installed for  the  primary  purpose  of  salvaging  materials  which are usable in the  manufacturing process or are marketable.    (B) The term "air pollution control facilities" shall mean  facilities  which  remove,  reduce,  or render less noxious air contaminants emitted  from an air contamination source (as the  terms  "air  contaminant"  and  "air  contamination  source"  are  defined  in  section  twelve  hundred  sixty-seven of the state public health law)  from  a  point  immediately  preceding the point of such removal, reduction or rendering the point of  discharge  of  air, meeting emission standards as established by the air  pollution control board, but excluding such facilities installed for the  primary  purpose  of  salvaging  materials  which  are  usable  in   the  manufacturing  process  or are marketable and excluding those facilities  which rely for their efficacy on dilution, dispersion or assimilation of  air contaminants in the ambient air after emmission.    (2) Such modifications shall be allowed only    (A) with respect to tangible property which is  depreciable,  pursuant  to  section one hundred sixty-seven of the internal revenue code, having  a situs in the city and used in the taxpayer's trade  or  business,  the  construction,  reconstruction,  erection or improvement of which, in the  case of industrial waste treatment facilities, is initiated on or  afterJuly  first,  nineteen hundred sixty-six, and only for expenditures paid  or incurred prior to January first,  nineteen  hundred  seventy-two,  or  which,  in the case of air pollution control facilities, is initiated on  or after July first, nineteen hundred sixty-six, and    (B) on condition that such facilities have been certified by the state  commissioner of health or his designated representative, pursuant to the  state  public  health law, as complying with the provisions of the state  public health law, the state sanitary code and regulations,  permits  or  orders promulgated pursuant thereto, and    (C)  on condition that for the taxable year and all succeeding taxable  years, any deductions allowed for federal income tax purposes  for  such  expenditures  or  for  depreciation  of the same property, except to the  extent that its basis may be attributable to  factors  other  than  such  expenditures,  be  added  to  federal  adjusted gross income pursuant to  paragraph six  of  subdivision  (b)  of  this  section,  or  in  case  a  modification  is allowable pursuant to this paragraph for only a part of  such expenditures, on condition that a proportionate amount of any  such  deductions  allowed  for federal income tax purposes be added to federal  adjusted gross income, and    (D) where the election provided for  in  subdivision  (g)  of  section  twelve has not been exercised in respect to the same property.    (3)  (A)  If  expenditures in respect to an industrial waste treatment  facility or an air pollution control facility have  been  allowed  as  a  modification  as provided herein and if within ten years from the end of  the taxable year in which such modification was allowed such property or  any part thereof is used for the primary purpose of salvaging  materials  which  are  usable  in  the manufacturing process or are marketable, the  taxpayer shall report such change of use in its  return  for  the  first  taxable year during which it occurs, and the administrator may recompute  the  tax  for the year or years for which such modification was allowed,  and may assess any additional  tax  resulting  from  such  recomputation  within  the  time fixed by paragraph eight of subdivision (c) of section  sixty-three.    (B) If a modification is allowed as herein provided  for  expenditures  paid  or  incurred  during  any taxable year on the basis of a temporary  certificate of compliance issued pursuant to  the  state  public  health  law,  and  if  the  taxpayer  fails to obtain a permanent certificate of  compliance upon completion of the facilities with respect to which  such  temporary certificate was issued, the taxpayer shall report such failure  in  its  report  for  the  taxable year during which such facilities are  completed, and the administrator may recompute the tax for the  year  or  years  for  which  such  modification  was  allowed,  and may assess any  additional tax resulting from such recomputation within the  time  fixed  by paragraph eight of subdivision (c) of section sixty-three.    (4)  In  any  taxable year when property is sold or otherwise disposed  of, with respect to which a modification has been  allowed  pursuant  to  this paragraph, such modification shall be disregarded in computing gain  or  loss,  and the gain or loss on the sale or other disposition of such  property shall be the gain or loss  entering  into  the  computation  of  federal adjusted gross income for such taxable year.