210 - Computation of tax.

§  210.  Computation  of tax. 1. The tax imposed by subdivision one of  section two hundred nine of this chapter shall be: (A) in  the  case  of  each  taxpayer  other  than  a  New  York  S  corporation or a qualified  homeowners association, the sum  of  (1)  the  highest  of  the  amounts  prescribed  in  paragraphs (a), (b), (c) and (d) of this subdivision and  (2) the amount prescribed in paragraph (e) of this subdivision,  (B)  in  the  case  of  each  New  York  S  corporation, the amount prescribed in  paragraph (g) of this subdivision, and (C) in the case  of  a  qualified  homeowners  association,  the  sum  of  (1)  the  highest of the amounts  prescribed in paragraphs (a), (b) and (c) of this  subdivision  and  (2)  the amount prescribed in paragraph (e) of this subdivision. For purposes  of  this  paragraph, the term "qualified homeowners association" means a  homeowners association, as such term is defined  in  subsection  (c)  of  section  five  hundred twenty-eight of the internal revenue code without  regard to subparagraph (E) of paragraph one of such subsection (relating  to elections to be  taxed  pursuant  to  such  section),  which  has  no  homeowners  association  taxable  income,  as  such  term  is defined in  subsection (d) of such section. Provided, however, that in the case of a  small business taxpayer (other than a New York S corporation) as defined  in paragraph (f) of this subdivision, if the amount prescribed  in  such  paragraph (b) is higher than the amount prescribed in such paragraph (a)  solely  by  reason  of  the  application of the rate applicable to small  business taxpayers, then with respect to such taxpayer the tax  referred  to  in  the previous sentence shall be the sum of (1) the highest of the  amounts prescribed in paragraphs (a), (c) and (d)  of  this  subdivision  and (2) the amount prescribed in paragraph (e) of this subdivision.    (a)  Entire  net  income base. For taxable years beginning before July  first, nineteen hundred  ninety-nine,  the  amount  prescribed  by  this  paragraph  shall  be  computed  at  the  rate  of  nine  percent  of the  taxpayer's entire net income base. For  taxable  years  beginning  after  June  thirtieth, nineteen hundred ninety-nine and before July first, two  thousand, the amount prescribed by this paragraph shall be  computed  at  the  rate  of  eight  and  one-half percent of the taxpayer's entire net  income base. For taxable  years  beginning  after  June  thirtieth,  two  thousand  and before July first, two thousand one, the amount prescribed  by this paragraph shall be computed at the rate of eight percent of  the  taxpayer's  entire  net  income  base. For taxable years beginning after  June thirtieth, two thousand one and before January first, two  thousand  seven,  the amount prescribed by this paragraph shall be computed at the  rate of seven and one-half percent of the taxpayer's entire  net  income  base.  For  taxable  years  beginning  on  or  after  January first, two  thousand seven,  the  amount  prescribed  by  this  paragraph  shall  be  computed  at  the  rate of seven and one-tenth percent of the taxpayer's  entire net income base. The taxpayer's entire net income base shall mean  the portion of the taxpayer's entire net  income  allocated  within  the  state  as  hereinafter provided, subject to any modification required by  paragraphs (d) and (e) of subdivision three of this section. However, in  the case of a small business taxpayer, as defined in  paragraph  (f)  of  this  subdivision,  the  amount  prescribed  by  this paragraph shall be  computed pursuant to subparagraph (iv) of this paragraph and in the case  of a manufacturer, as defined in subparagraph (vi)  of  this  paragraph,  the  amount  prescribed  by this paragraph shall be computed pursuant to  subparagraph (vi) of this paragraph.    (i) if the entire net  income  base  is  not  more  than  two  hundred  thousand  dollars,  (1)  for  taxable years beginning before July first,  nineteen hundred ninety-nine, the amount shall be eight percent  of  the  entire  net  income  base;  (2)  for  taxable years beginning after June  thirtieth, nineteen hundred  ninety-nine  and  before  July  first,  twothousand  three,  the  amount shall be seven and one-half percent of the  entire net income base; and (3) for taxable years beginning  after  June  thirtieth,  two  thousand  three  and before January first, two thousand  five, the amount shall be 6.85 percent of the entire net income base;    (ii)  if  the entire net income base is more than two hundred thousand  dollars but not over  two  hundred  ninety  thousand  dollars,  (1)  for  taxable years beginning before July first, nineteen hundred ninety-nine,  the  amount  shall  be the sum of (a) sixteen thousand dollars, (b) nine  percent of the excess of the entire net income  base  over  two  hundred  thousand  dollars  and  (c) five percent of the excess of the entire net  income base over two hundred fifty thousand  dollars;  (2)  for  taxable  years  beginning  after June thirtieth, nineteen hundred ninety-nine and  before July first, two thousand, the amount shall  be  the  sum  of  (a)  fifteen  thousand  dollars, (b) eight and one-half percent of the excess  of the entire net income base over two hundred thousand dollars and  (c)  five  percent  of  the  excess  of  the  entire net income base over two  hundred fifty thousand dollars; (3) for taxable  years  beginning  after  June  thirtieth,  two  thousand and before July first, two thousand one,  the amount shall be the sum of (a) fifteen thousand dollars,  (b)  eight  percent  of  the  excess  of the entire net income base over two hundred  thousand dollars and (c) two and one-half percent of the excess  of  the  entire  net income base over two hundred fifty thousand dollars; (4) for  taxable years beginning after  June  thirtieth,  two  thousand  one  and  before  July  first,  two  thousand three, the amount shall be seven and  one-half percent of the entire net income  base;  and  (5)  for  taxable  years  beginning  after  June  thirtieth,  two thousand three and before  January first, two thousand five, the amount shall be  the  sum  of  (a)  thirteen  thousand  seven hundred dollars, (b) 7.5 percent of the excess  of the entire net income base over two hundred thousand dollars and  (c)  3.25  percent  of  the  excess  of  the  entire net income base over two  hundred fifty thousand dollars;    (iii) for taxable years beginning  on  or  after  January  first,  two  thousand  five  and  ending before January first, two thousand seven, if  the entire net income base is not more than two hundred ninety  thousand  dollars  the  amount shall be six and one-half percent of the entire net  income base; if the entire net income base  is  more  than  two  hundred  ninety  thousand  dollars  but  not  over  three hundred ninety thousand  dollars the amount shall be the  sum  of  (1)  eighteen  thousand  eight  hundred  fifty  dollars, (2) seven and one-half percent of the excess of  the entire net income base over two hundred ninety thousand dollars  but  not  over  three  hundred  ninety  thousand  dollars  and  (3) seven and  one-quarter percent of the excess of the entire  net  income  base  over  three  hundred  fifty thousand dollars but not over three hundred ninety  thousand dollars;    (iv) for taxable years  beginning  on  or  after  January  first,  two  thousand  seven,  if  the  entire  net  income base is not more than two  hundred ninety thousand dollars the amount shall  be  six  and  one-half  percent  of the entire net income base; if the entire net income base is  more than two hundred ninety thousand dollars but not over three hundred  ninety thousand dollars the amount shall be  the  sum  of  (1)  eighteen  thousand eight hundred fifty dollars, (2) seven and one-tenth percent of  the  excess  of  the  entire  net  income  base  over two hundred ninety  thousand dollars but not over three hundred ninety thousand dollars  and  (3)  four and thirty-five hundredths percent of the excess of the entire  net income base over three hundred fifty thousand dollars but  not  over  three hundred ninety thousand dollars;(v) if the taxable period to which subparagraphs (i), (ii), (iii), and  (iv)  of  this  paragraph  apply  is less than twelve months, the amount  prescribed by this paragraph shall be computed as follows:    (A) Multiply the entire net income base for such taxpayer by twelve;    (B)  Divide  the result obtained in (A) by the number of months in the  taxable year;    (C) Compute an amount pursuant to subparagraphs (i) and (ii) as if the  result obtained in (B) were the taxpayer's entire net income base;    (D) Multiply the result obtained in (C) by the number of months in the  taxpayer's taxable year;    (E) Divide the result obtained in (D) by twelve.    (vi) for taxable years beginning on or after January thirty-first, two  thousand seven, the amount prescribed by this paragraph for  a  taxpayer  which  is  a  qualified  New York manufacturer, shall be computed at the  rate of six and one-half (6.5) percent  of  the  taxpayer's  entire  net  income  base. The term "manufacturer" shall mean a taxpayer which during  the taxable year is principally engaged in the production  of  goods  by  manufacturing,  processing,  assembling,  refining,  mining, extracting,  farming,  agriculture,  horticulture,   floriculture,   viticulture   or  commercial   fishing.   However,  the  generation  and  distribution  of  electricity, the distribution of natural  gas,  and  the  production  of  steam  associated  with  the  generation  of  electricity  shall  not be  qualifying  activities  for  a  manufacturer  under  this  subparagraph.  Moreover,  the  combined  group shall be considered a "manufacturer" for  purposes of this subparagraph only if  the  combined  group  during  the  taxable  year is principally engaged in the activities set forth in this  paragraph, or any combination thereof. A taxpayer or  a  combined  group  shall  be "principally engaged" in activities described above if, during  the taxable year, more than fifty percent of the gross receipts  of  the  taxpayer or combined group, respectively, are derived from receipts from  the  sale  of goods produced by such activities. In computing a combined  group's gross receipts, intercorporate receipts shall be  eliminated.  A  "qualified  New  York manufacturer" is a manufacturer which has property  in New York which is described in clause  (A)  of  subparagraph  (i)  of  paragraph  (b)  of subdivision twelve of this section and either (I) the  adjusted basis of such property for federal income tax purposes  at  the  close of the taxable year is at least one million dollars or (II) all of  its  real  and  personal property is located in New York. In addition, a  "qualified New York manufacturer" means a taxpayer which is defined as a  qualified emerging technology company under paragraph (c) of subdivision  one of section thirty-one hundred two-e of the  public  authorities  law  regardless   of   the   ten   million  dollar  limitation  expressed  in  subparagraph one of such paragraph (c).    (b) Capital base. (1) The amount  prescribed  by  this  paragraph  for  taxable  years  beginning before January first, two thousand eight shall  be computed at .178 percent for each  dollar  of  the  taxpayer's  total  business and investment capital, or the portion thereof allocated within  the  state  as  hereinafter  provided. For taxable years beginning on or  after January first, two thousand eight, the amount prescribed  by  this  paragraph  shall  be  computed  at .15  percent  for  each dollar of the  taxpayer's total business and investment capital, or the portion thereof  allocated within the state as hereinafter provided. However, in the case  of a cooperative housing corporation as defined in the internal  revenue  code,  the  applicable rate shall be .04 percent.  In no event shall the  amount prescribed by this paragraph exceed three hundred fifty  thousand  dollars for qualified New York manufacturers and for all other taxpayers  ten  million  dollars  for  taxable  years beginning on or after January  first, two thousand eight but before January first, two thousand  elevenand  one million dollars for taxable years beginning on or after January  first, two thousand eleven.    (2)  For  purposes  of  subparagraph  one  of this paragraph, the term  "manufacturer" shall mean a taxpayer which during the  taxable  year  is  principally  engaged  in  the  production  of  goods  by  manufacturing,  processing,   assembling,   refining,   mining,   extracting,   farming,  agriculture,   horticulture,  floriculture,  viticulture  or  commercial  fishing. Moreover, for purposes of  computing  the  capital  base  in  a  combined report, the combined group shall be considered a "manufacturer"  for  purposes of this subparagraph only if the combined group during the  taxable year is principally engaged in the activities set forth in  this  subparagraph, or any combination thereof. A taxpayer or a combined group  shall  be "principally engaged" in activities described above if, during  the taxable year, more than fifty percent of the gross receipts  of  the  taxpayer or combined group, respectively, are derived from receipts from  the  sale  of goods produced by such activities. In computing a combined  group's gross receipts, intercorporate receipts shall be  eliminated.  A  "qualified New York manufacturer" is a manufacturer that has property in  New  York  that  is  described  in  clause  (A)  of  subparagraph (i) of  paragraph (b) of subdivision twelve of this section and either  (i)  the  adjusted  basis  of that property for federal income tax purposes at the  close of the taxable year is at least one million dollars or (ii) all of  its real and personal property is located in New York.  In  addition,  a  "qualified  New York manufacturer" means a taxpayer that is defined as a  qualified emerging technology company under paragraph (c) of subdivision  one of section thirty-one hundred two-e of the  public  authorities  law  regardless   of   the   ten   million  dollar  limitation  expressed  in  subparagraph one of such paragraph.    (c) Minimum taxable income bases.  (i)  For  taxable  years  beginning  after   nineteen   hundred   eighty-six   and  before  nineteen  hundred  eighty-nine, the amount prescribed by this paragraph shall  be  computed  at the rate of three and one-half percent of the taxpayer's pre-nineteen  hundred  ninety minimum taxable income base. For taxable years beginning  in nineteen hundred eighty-nine, the amount prescribed by this paragraph  shall be computed  at  the  rate  of  five  percent  of  the  taxpayer's  pre-nineteen  hundred  ninety minimum taxable income base. A "taxpayer's  pre-nineteen hundred ninety minimum taxable income base" shall mean  the  portion  of  the taxpayer's entire net income allocated within the state  as  hereinafter  provided,  subject  to  any  modification  required  by  paragraphs (d) and (e) of subdivision three of this section;    (ii)  For taxable years beginning in nineteen hundred ninety, nineteen  hundred  ninety-one,  nineteen  hundred  ninety-two,  nineteen   hundred  ninety-three  and  nineteen hundred ninety-four the amount prescribed by  this paragraph shall be computed at the rate  of  five  percent  of  the  taxpayer's  minimum  taxable  income  base.  For taxable years beginning  after nineteen hundred  ninety-four  and  before  July  first,  nineteen  hundred  ninety-eight,  the amount prescribed by this paragraph shall be  computed at the rate of three and one-half  percent  of  the  taxpayer's  minimum  taxable  income  base.  For  taxable years beginning after June  thirtieth, nineteen hundred ninety-eight and before July first, nineteen  hundred ninety-nine, the amount prescribed by this  paragraph  shall  be  computed  at the rate of three and one-quarter percent of the taxpayer's  minimum taxable income base. For  taxable  years  beginning  after  June  thirtieth,  nineteen  hundred  ninety-nine  and  before  July first, two  thousand, the amount prescribed by this paragraph shall be  computed  at  the rate of three percent of the taxpayer's minimum taxable income base.  For  taxable  years  beginning  after  June thirtieth, two thousand, the  amount prescribed by this paragraph shall be computed at the rate of twoand one-half percent of the taxpayer's minimum taxable income base.  For  taxable  years  beginning on or after January first, two thousand seven,  amount prescribed by this paragraph shall be computed at the rate of one  and  one-half percent of the taxpayer's minimum taxable income base. The  "taxpayer's minimum taxable income base" shall mean the portion  of  the  taxpayer's   minimum  taxable  income  allocated  within  the  state  as  hereinafter  provided,  subject  to  any   modifications   required   by  paragraphs (d) and (e) of subdivision three of this section.    (d) Fixed dollar minimum.  (1) The amount prescribed by this paragraph  shall be for a taxpayer which during the taxable year has:    (A)  a gross payroll of six million two hundred fifty thousand dollars  or more, one thousand five hundred dollars;    (B) a gross payroll  of  less  than  six  million  two  hundred  fifty  thousand  dollars  but  more  than  one  million  dollars,  four hundred  twenty-five dollars;    (C) a gross payroll of no more than one million dollars but more  than  five hundred thousand dollars, three hundred twenty-five dollars;    (D)  a gross payroll of no more than five hundred thousand dollars but  more than two hundred fifty thousand dollars,  two  hundred  twenty-five  dollars;    (E)  a  gross  payroll  of  two hundred fifty thousand dollars or less  (except as prescribed in clause (F) of this subparagraph),  one  hundred  dollars;    (F)  a  gross  payroll  of  one  thousand  dollars or less, with total  receipts within and without this state of one thousand dollars or  less,  and the average value of the assets of which are one thousand dollars or  less, eight hundred dollars.    (2) For purposes of this paragraph:    (A)  gross  payroll shall be the same as the total wages, salaries and  other personal service compensation of  all  the  taxpayer's  employees,  within  and  without  this  state,  as  defined in subparagraph three of  paragraph (a) of subdivision three of this section, except that  general  executive officers shall not be excluded.    (B)  total  receipts  shall be the same as receipts within and without  this  state  as  defined  in  subparagraph  two  of  paragraph  (a)   of  subdivision three of this section.    (C)  average  value  of  the assets shall be the same as prescribed by  subdivision two of this section without reduction for liabilities.    (3) If the taxable  year  is  less  than  twelve  months,  the  amount  prescribed  by this paragraph shall be reduced by twenty-five percent if  the period for which the taxpayer is subject to tax  is  more  than  six  months  but not more than nine months and by fifty percent if the period  for which the taxpayer is subject to tax is not more  than  six  months.  Provided,  however,  that in determining the amount of gross payroll and  total receipts for purposes of subparagraph one of this paragraph, where  the taxable year is less than twelve months, the amount of each shall be  determined by dividing the amount of each with respect  to  the  taxable  year  by  the  number of months in such taxable year and multiplying the  result by twelve. If the taxable year is less than  twelve  months,  the  amount  of  New  York receipts for purposes of subparagraph four of this  paragraph is determined by dividing the amount of the receipts  for  the  taxable year by the number of months in the taxable year and multiplying  the result by twelve.    (4)  Notwithstanding  subparagraphs one and two of this paragraph, for  taxable years beginning on or after January first, two  thousand  eight,  the amount prescribed by this paragraph for New York S corporations will  be determined in accordance with the following table:If New York receipts are:                The fixed dollar minimum tax is:   not more than $100,000                               $   25   more than $100,000 but not over $250,000             $   50   more than $250,000 but not over $500,000             $  175   more than $500,000 but not over $1,000,000           $  300   more than $1,000,000 but not over $5,000,000         $1,000   more than $5,000,000 but not over $25,000,000        $3,000   Over $25,000,000                                     $4,500   Otherwise  the amount prescribed by this paragraph will be determined in  accordance with the following table:   If New York receipts are:                The fixed dollar minimum tax is:   not more than $100,000                               $   25   more than $100,000 but not over $250,000             $   75   more than $250,000 but not over $500,000             $  175   more than $500,000 but not over $1,000,000           $  500   more than $1,000,000 but not over $5,000,000         $1,500   more than $5,000,000 but not over $25,000,000        $3,500   Over $25,000,000                                     $5,000   For purposes of this paragraph,  New  York  receipts  are  the  receipts  computed  in  accordance  with  subparagraph  two  of  paragraph  (a) of  subdivision three of this section for the taxable year.    (e) Subsidiary  capital  base.  (1)  The  amount  prescribed  by  this  paragraph  shall  be  computed  at the rate of nine-tenths of a mill for  each  dollar  of  the  portion  of  the  taxpayer's  subsidiary  capital  allocated within the state as hereinafter provided.    (2)  For  purposes  of  this  paragraph, the amount of such subsidiary  capital, prior  to  allocation,  shall  be  reduced  by  the  applicable  percentage  of  the  taxpayer's (i) investments in the stock of, and any  indebtedness from, subsidiaries subject to tax under section one hundred  eighty-six of this chapter (but only to the extent such indebtedness  is  included  in  subsidiary capital), and (ii) investments in the stock of,  and any indebtedness from, subsidiaries subject  to  tax  under  article  thirty-two  or thirty-three of this chapter (but only to the extent such  indebtedness is included in subsidiary capital). For purposes of  clause  (i)  of  this  subparagraph,  the  applicable percentage shall be thirty  percent for taxable years beginning in two  thousand,  and  one  hundred  percent  for taxable years beginning after two thousand. For purposes of  clause (ii) of this subparagraph, the applicable percentage shall be one  hundred percent for  taxable  years  beginning  after  nineteen  hundred  ninety-nine.    (f)  For  purposes of this section, the term "small business taxpayer"  shall mean a taxpayer (i) which has an entire net  income  of  not  more  than  three  hundred  ninety thousand dollars for the taxable year; (ii)  which constitutes a small business as defined in section  1244(c)(3)  of  internal  revenue  code  (without  regard  to  the  second  sentence  of  subparagraph (A) thereof) as of the last day of the  taxable  year;  and  (iii)  which  is  not part of an affiliated group, as defined in section  1504 of the internal revenue code, unless such group, if it had filed  a  report  under  this  article  on  a  combined  basis,  would have itself  qualified as a "small business taxpayer" pursuant to  this  subdivision.  If  the  taxable  period  to  which  subparagraph  (i) of this paragraph  applies is less  than  twelve  months,  entire  net  income  under  such  subparagraph  shall  be  placed  on  an  annual basis by multiplying the  entire net income by twelve and dividing the result  by  the  number  of  months in the period.(g)  New  York S corporations.   (1) General. The amount prescribed by  this paragraph shall be, in the case of each New York S corporation, (i)  the higher of the amounts prescribed in paragraphs (a) and (d)  of  this  subdivision  (other  than  the  amount prescribed in the final clause of  subparagraph  one  of  that  paragraph  (d)) (ii) reduced by the article  twenty-two tax equivalent;  provided,  however,  that  the  amount  thus  determined  shall  not be less than the lowest of the amounts prescribed  in subparagraph one of that paragraph (d) (applying  the  provisions  of  subparagraph  three  of that paragraph as necessary). Provided, however,  notwithstanding any  provision  of  this  paragraph,  in  taxable  years  beginning  in  two  thousand  three  and  before two thousand eight, the  amount prescribed by this paragraph shall be the  amount  prescribed  in  subparagraph  one  of  that  paragraph  (d)  (applying the provisions of  subparagraph three of that paragraph  as  necessary)  and  applying  the  calculation  of  that  amount  in  the case of a termination year as set  forth in subparagraph four of this paragraph as  necessary.  In  taxable  years  beginning  in  two  thousand  eight  and  thereafter,  the amount  prescribed by this paragraph is the amount  prescribed  in  subparagraph  four  of  that  paragraph  (d)  (applying the provisions of subparagraph  three of that paragraph as necessary) and applying  the  calculation  of  that  amount  in  the  case  of  a  termination  year  as  set  forth in  subparagraph four of this paragraph as necessary.    (2) Article twenty-two tax equivalent.  For  taxable  years  beginning  before  July first, nineteen hundred ninety-nine, the article twenty-two  tax equivalent is the  amount  computed  under  paragraph  (a)  of  this  subdivision  by  substituting  for  the  rate  therein the rate of 7.875  percent. For taxable years  beginning  after  June  thirtieth,  nineteen  hundred  ninety-nine  and  before  July first, two thousand, the article  twenty-two tax equivalent is the amount computed under paragraph (a)  of  this  subdivision by substituting for the rate therein the rate of 7.525  percent. For taxable years beginning after June thirtieth, two  thousand  and  before  July  first,  two  thousand one, the article twenty-two tax  equivalent  is  the  amount  computed  under  paragraph  (a)   of   this  subdivision  by  substituting  for  the  rate  therein the rate of 7.175  percent. For taxable years beginning after June thirtieth, two  thousand  one  and  before  July first, two thousand three, the article twenty-two  tax equivalent is the  amount  computed  under  paragraph  (a)  of  this  subdivision  by  substituting  for  the  rate  therein  the rate of 6.85  percent. For taxable years beginning after June thirtieth, two  thousand  three,  the  article  twenty-two  tax  equivalent is the amount computed  under paragraph (a) of this subdivision by  substituting  for  the  rate  therein the rate of 7.1425 percent.    (3)  Small  business  taxpayers.  Notwithstanding  the  provisions  of  subparagraphs one and two of this paragraph, in the case of a New York S  corporation which is a small business taxpayer, as defined in  paragraph  (f) of this subdivision, the following provisions shall apply:    (A)  For  taxable  years beginning before July first, nineteen hundred  ninety-nine,  the  article  twenty-two  tax  equivalent  is  the  amount  computed under paragraph (a) of this subdivision by substituting for the  rate therein the rate of 7.875 percent.    (B) For taxable years beginning after June thirtieth, nineteen hundred  ninety-nine  and  before  July  first,  two  thousand  three, the amount  computed under paragraph (a) of this  subdivision,  as  referred  to  in  subparagraph  one  of  this paragraph, shall be computed by substituting  for the rate therein the rate of 7.5 percent, and the article twenty-two  tax equivalent under paragraph (a) of this subdivision shall be computed  as follows:(i) if the entire net  income  base  is  not  more  than  two  hundred  thousand  dollars,  the  article twenty-two tax equivalent is the amount  computed under paragraph (a) of this subdivision by substituting for the  rate therein the rate of 7.45 percent;    (ii)  if  the entire net income base is more than two hundred thousand  dollars but not over two hundred ninety thousand  dollars,  the  article  twenty-two  tax  equivalent shall be computed as the sum of (I) fourteen  thousand nine hundred  dollars,  (II)  six  and  eighty-five  hundredths  percent  of the first fifty thousand dollars in excess of the entire net  income base over two hundred  thousand  dollars,  and  (III)  three  and  eighty-five  hundredths percent of the excess, if any, of the entire net  income base over two hundred fifty thousand dollars.    (C) For taxable years beginning after  June  thirtieth,  two  thousand  three,  the  amount computed under paragraph (a) of this subdivision, as  referred to in subparagraph one of this paragraph, shall be computed  by  substituting  for  the  rate  therein  the  rate of 7.5 percent, and the  article  twenty-two  tax  equivalent  under  paragraph   (a)   of   this  subdivision shall be computed as follows:    (i)  if  the  entire  net  income  base  is  not more than two hundred  thousand dollars, the article twenty-two tax equivalent  is  the  amount  computed under paragraph (a) of this subdivision by substituting for the  rate therein the rate of 7.4725 percent;    (ii)  if  the entire net income base is more than two hundred thousand  dollars but not over two hundred ninety thousand  dollars,  the  article  twenty-two  tax  equivalent shall be computed as the sum of (I) fourteen  thousand nine hundred forty-five dollars, (II)  7.1425  percent  of  the  first  fifty  thousand  dollars  in excess of the entire net income base  over two hundred thousand dollars,  and  (III)  5.4925  percent  of  the  excess,  if  any,  of  the entire net income base over two hundred fifty  thousand dollars.    (4) Termination year. In the case of a termination year, the  tax  for  the  S  short year shall be computed under this paragraph without regard  to the fixed dollar minimum tax prescribed  in  paragraph  (d)  of  this  subdivision,  and  the  tax for the C short year shall be computed under  the opening paragraph of this subdivision without regard  to  the  fixed  dollar  minimum tax prescribed under such paragraph (d), but in no event  shall the sum of the tax for the S short year and  the  tax  for  the  C  short year be less than the fixed dollar minimum tax under paragraph (d)  of  this  subdivision  computed  as if the corporation were a New York C  corporation for the entire taxable year.    1-c. The computations specified in paragraph (b) of subdivision one of  this section shall not apply  to  the  first  two  taxable  years  of  a  taxpayer which, for one or both such years, is a small business concern.  A small business concern:    (a) is  a taxpayer which is a small business corporation as defined in  paragraph three of subsection (c) of section twelve  hundred  forty-four  of  the  internal revenue code (without regard to the second sentence of  subparagraph (A) thereof) as of the last day of the taxable year,    (b) is not a corporation over fifty percent of the number of shares of  stock of which entitling the holders thereof to vote for the election of  directors or trustees is owned by a taxpayer which (1) is subject to tax  under this  article;  section  one  hundred  eighty-three,  one  hundred  eighty-four   or  one  hundred  eighty-five  of  article  nine;  article  thirty-two or thirty-three of this chapter, and (2) does not qualify  as  a small business corporation as defined in paragraph three of subsection  (c)  of  section  twelve hundred forty-four of the internal revenue code  (without regard to the second sentence of subparagraph (A)  thereof)  asof  the  last  day of its taxable year ending within or with the taxable  year of the taxpayer,    (c)  is  not a corporation which is substantially similar in operation  and in  ownership  to  a  business  entity  (or  entities)  taxable,  or  previously   taxable,   under   this   article;   section   one  hundred  eighty-three, one hundred eighty-four, one hundred  eighty-five  or  one  hundred  eighty-six  of article nine; article thirty-two or thirty-three  of this chapter; article twenty-three of this  chapter  or  which  would  have  been  subject  to  tax  under  such  article twenty-three (as such  article was in effect on January first, nineteen hundred eighty) or  the  income  (or  losses)  of  which  is  (or  was)  includable under article  twenty-two of this chapter, and    (d) at least ninety percent of the assets of such corporation  (valued  at  original  cost)  were  located and employed in this state during the  taxable year and eighty percent of the employees of such corporation (as  ascertained within the meaning  and  intent  of  subparagraph  three  of  paragraph  (a)  of  subdivision  three of this section) were principally  employed in this state during the taxable year.    2. The amount of subsidiary capital, investment capital  and  business  capital  shall  each  be  determined  by taking the average value of the  assets included therein (less liabilities deductible therefrom  pursuant  to  the  provisions  of subdivisions four, five and seven of section two  hundred eight), and, if the period covered by the report is other than a  period of twelve calendar months,  by  multiplying  such  value  by  the  number  of  calendar  months  or  major  parts  thereof included in such  period, and dividing the product thus obtained by twelve.  For  purposes  of  this  subdivision,  real property and marketable securities shall be  valued at fair market value and the value  of  personal  property  other  than marketable securities shall be the value thereof shown on the books  and  records  of  the  taxpayer  in  accordance  with generally accepted  accounting principles.    3. The portion of the entire net income of a taxpayer to be  allocated  within the state shall be determined as follows:    (a)  multiply  its business income by a business allocation percentage  to be determined by    (1) ascertaining  the  percentage  which  the  average  value  of  the  taxpayer's  real and tangible personal property, whether owned or rented  to it, within the state during the period covered by its report bears to  the average value of all  the  taxpayer's  real  and  tangible  personal  property,  whether  owned or rented to it, wherever situated during such  period. For the purpose of this subparagraph  the  term  "value  of  the  taxpayer's  real and tangible personal property" shall mean the adjusted  bases of such properties for federal income tax purposes (except that in  the case of rented property such value shall mean  the  product  of  (i)  eight  and  (ii) the gross rents payable for the rental of such property  during the taxable year); provided, however, that the taxpayer may  make  a  one-time,  revocable election, pursuant to regulations promulgated by  the commissioner to use fair market value as the value  of  all  of  its  real and tangible personal property, provided that such election is made  on  or before the due date for filing a report under section two hundred  eleven for the taxpayer's first taxable  year  commencing  on  or  after  January  first,  nineteen  hundred  eighty-seven  and provided that such  election shall not apply to any taxable year with respect to  which  the  taxpayer  is  included on a combined report unless each of the taxpayers  included on such report has made  such  an  election  which  remains  in  effect for such year;    (2)  ascertaining  the  percentage which the receipts of the taxpayer,  computed on the cash  or  accrual  basis  according  to  the  method  ofaccounting  used  in  the  computation of its entire net income, arising  during such period from    (A)  sales  of its tangible personal property where shipments are made  to points within this state,    (B) services performed within the state, provided, however,  that  (i)  in  the  case  of  a  taxpayer  engaged  in  the  business of publishing  newspapers or periodicals, receipts arising from  sales  of  advertising  contained  in  such  newspapers and periodicals shall be deemed to arise  from services performed  within  the  state  to  the  extent  that  such  newspapers  and  periodicals  are  delivered to points within the state,  (ii) receipts from an  investment  company  arising  from  the  sale  of  management,  administration  or distribution services to such investment  company shall be deemed to arise  from  services  performed  within  the  state  to  the  extent  set forth in subparagraph six of this paragraph,  (iii) in the case of taxpayers principally engaged in  the  activity  of  air  freight  forwarding  acting  as  principal  and  like  indirect air  carriage receipts arising from such activity shall arise  from  services  performed  within  the  state  as  follows:  one hundred percent of such  receipts if both the pickup and delivery associated with  such  receipts  are  made in this state and fifty percent of such receipts if either the  pickup or delivery associated with such receipts is made in  this  state  and  (iv)  in the case of a taxpayer which is a registered securities or  commodities broker or dealer, the  receipts  specified  in  subparagraph  nine  of this paragraph shall be deemed to arise from services performed  within the state to the extent set forth in such subparagraph nine,  and  (iv)  in  the  case  of  receipts  arising  from  the  transportation or  transmission of gas through pipes, the portion of  such  receipts  which  constitute  receipts  from  services performed within the state shall be  the product of (I) the total of such receipts and (II) a  fraction,  the  numerator  of  which  is  the taxpayer's transportation units within the  state and the denominator of  which  is  the  taxpayer's  transportation  units  within  and  without  the  state.  A  transportation  unit is the  transportation of one cubic foot of gas over a distance of one mile,    (C) rentals from property situated, and  royalties  from  the  use  of  patents  or copyrights, within the state, and receipts from the sales of  rights for closed-circuit and cable television transmissions of an event  (other than events occurring on  a  regularly  scheduled  basis)  taking  place  within  the  state  as  a  result of the rendition of services by  employees of the corporation, as athletes,  entertainers  or  performing  artists,  but  only to the extent that such receipts are attributable to  such transmissions received or exhibited within the state and    (D) all other business receipts earned within the state, bear  to  the  total  amount  of  the  taxpayer's receipts, similarly computed, arising  during such period from all sales of  its  tangible  personal  property,  services,  rentals,  royalties,  receipts  from  the sales of rights for  closed-circuit and cable television transmissions and all other business  transactions, whether within or without the state;    (3) ascertaining the percentage of the total wages, salaries and other  personal service compensation, similarly computed, during such period of  employees within the state, except general executive  officers,  to  the  total wages, salaries and other personal service compensation, similarly  computed,  during such period of all the taxpayer's employees within and  without the state, except general executive officers; and    (4) adding together the percentages so  determined  and  dividing  the  result  by  the  number of percentages; provided, however, except (i) in  the case of a New York S corporation, (ii)  for  purposes  of  computing  minimum  taxable  income  for  taxable  years  beginning before nineteen  hundred ninety-four, and (iii) for purposes  of  computing  pre-nineteenhundred ninety minimum taxable income, for taxable years beginning on or  after  the  first  day  of  January,  nineteen  hundred seventy-six, the  business  allocation  percentage  shall  be  determined  by  adding  the  percentages  so  determined  and  an  additional percentage equal to the  percentage determined under subparagraph two of this paragraph together,  and dividing the result by the number of percentages so added  together;  provided,  however,  that  for  taxable  years  beginning before January  first, nineteen hundred seventy-eight, if the taxpayer does not  have  a  regular  place  of  business  outside  the  state other than a statutory  office, the business allocation percentage shall be one hundred percent;    (5) Provided, however,  that  any  taxpayer  required  to  adjust  its  receipts,  expenses,  assets  and  liabilities by adding an attributable  portion of the receipts, expenses, assets and liabilities of  any  DISC,  as  provided by paragraph (i) of subdivision nine of section two hundred  eight of  this  article,  shall  substitute  such  adjusted  figures  in  computing  the  percentages required in subparagraphs one, two and three  of this paragraph.    (6) Rules for receipts from certain services to investment  companies.  (A)  For purposes of subclause (ii) of clause (B) of subparagraph two of  this paragraph, the portion of  receipts  received  from  an  investment  company   arising   from  the  sale  of  management,  administration  or  distribution  services  to  such  investment   company   determined   in  accordance with clause (B) of this subparagraph shall be deemed to arise  from  services  performed  within  the  state  (such portion referred to  herein as the New York portion).    (B) The New York portion shall be the product of (a) the total of such  receipts from the  sale  of  such  services  and  (b)  a  fraction.  The  numerator  of  that  fraction  is the sum of the monthly percentages (as  defined  hereinafter)  determined  for  each  month  of  the  investment  company's  taxable  year  for  federal income tax purposes which taxable  year ends within the taxable year of the  taxpayer  (but  excluding  any  month  during  which  the investment company had no outstanding shares).  The monthly percentage for each such month is determined by dividing (a)  the number of shares in the investment company which are  owned  on  the  last  day  of the month by shareholders which are domiciled in the state  by (b) the total number of shares in the investment company  outstanding  on  that  date.  The  denominator  of the fraction is the number of such  monthly percentages.    (C) (i) For purposes of this subparagraph, the term "domicile", in the  case of an individual, shall have  the  meaning  ascribed  to  it  under  article  twenty-two  of this chapter; an estate or trust is domiciled in  the state if it is a resident estate or trust as  defined  in  paragraph  three  of  subsection (b) of section six hundred five of this chapter; a  business entity is domiciled in the state if the location of the  actual  seat of management or control is in the state. It shall be presumed that  the domicile of a shareholder, with respect to any month, is his, her or  its  mailing  address on the records of the investment company as of the  last day of such month.    (ii) For purposes of this subparagraph, the term "investment  company"  means  a  regulated investment company, as defined in section 851 of the  internal revenue code, and a partnership to which section 7704(a) of the  internal revenue code applies (by virtue of section 7704(c)(3)  of  such  code)  and  that  meets the requirements of section 851(b) of such code.  The preceding sentence shall be applied to the taxable year for  federal  income  tax  purposes  of  the  business  entity  that  is  asserted  to  constitute an investment company that ends within the  taxable  year  of  the taxpayer.(iii)  For  purposes  of this subparagraph, the term "receipts from an  investment  company"  includes  amounts  received   directly   from   an  investment  company as well as amounts received from the shareholders in  such investment company, in their capacity as such.    (iv) For purposes of this subparagraph, the term "management services"  means  the  rendering  of  investment  advice  to an investment company,  making determinations as to when sales and purchases of  securities  are  to  be  made  on  behalf  of  an  investment  company, or the selling or  purchasing of securities constituting assets of an  investment  company,  and  related  activities, but only where such activity or activities are  performed pursuant to a contract with  the  investment  company  entered  into  pursuant to section 15(a) of the federal investment company act of  nineteen hundred forty, as amended.    (v)  For  purposes  of  this  subparagraph,  the  term   "distribution  services" means the services of advertising, servicing investor accounts  (including  redemptions),  marketing  shares  or  selling  shares  of an  investment company, but, in the case of advertising, servicing  investor  accounts  (including  redemptions)  or marketing shares, only where such  service is performed by a person who is (or was, in the case of a closed  end company) also engaged in the service of selling such shares. In  the  case  of  an  open  end  company, such service of selling shares must be  performed pursuant to a contract entered into pursuant to section  15(b)  of  the  federal  investment  company  act of nineteen hundred forty, as  amended.    (vi) For purposes  of  this  subparagraph,  the  term  "administration  services"   includes   (1)   clerical,   accounting,  bookkeeping,  data  processing, internal auditing, legal and tax services performed  for  an  investment  company  but  only  (2)  if  the provider of such service or  services during the taxable year in which such service or  services  are  sold   also  sells  management  or  distribution  services,  as  defined  hereinabove, to such investment company.    (7) (A)  Provided,  further,  however,  that  a  taxpayer  principally  engaged  in  the  conduct of aviation (other than air freight forwarders  acting as principal and like indirect air carriers  and  other  than  as  provided  in clause (D) of this subparagraph) shall, notwithstanding the  foregoing provisions of this paragraph, determine the portion of  entire  net  income to be allocated within the state by multiplying its business  income by a  business  allocation  percentage  which  is  equal  to  the  arithmetic average of the following three percentages:    (i)  the  percentage  determined  by  dividing  sixty  percent  of the  aircraft arrivals and departures  within  this  state  by  the  taxpayer  during  the  period covered by its report by the total aircraft arrivals  and departures  within  and  without  this  state  during  such  period;  provided,  however,  arrivals  and  departures solely for maintenance or  repair, refueling  (where  no  debarkation  or  embarkation  of  traffic  occurs), arrivals and departures of ferry and personnel training flights  or  arrivals  and  departures in the event of emergency situations shall  not be included in computing  such  arrival  and  departure  percentage;  provided, further, the commissioner may also exempt from such percentage  aircraft  arrivals  and  departures of all non-revenue flights including  flights involving the transportation of officers or employees  receiving  air  transportation  to  perform maintenance or repair services or where  such officers or  employees  are  transported  in  conjunction  with  an  emergency  situation or the investigation of an air disaster (other than  on a scheduled flight); provided, however, that arrivals and  departures  of   flights   transporting   officers   and   employees  receiving  air  transportation for purposes other than specified above  (without  regardto  remuneration)  shall  be  included  in  computing  such  arrival and  departure percentage;    (ii)  the  percentage  determined  by  dividing  sixty  percent of the  revenue tons handled by the  taxpayer  at  airports  within  this  state  during  such  period by the total revenue tons handled by it at airports  within and without this state during such period; and    (iii) the percentage determined  by  dividing  sixty  percent  of  the  taxpayer's  originating revenue within this state for such period by its  total originating revenue within and without this state for such period.    (B) As used herein the term "aircraft arrivals and  departures"  means  the  number of landings and takeoffs of the aircraft of the taxpayer and  the number of air  pickups  and  deliveries  by  the  aircraft  of  such  taxpayer;  the  term "originating revenue" means revenue to the taxpayer  from the transportation of revenue passengers and revenue property first  received by the taxpayer either as originating or connecting traffic  at  airports;  and  the  term  "revenue  tons  handled"  by  the taxpayer at  airports means the weight in tons of revenue passengers (at two  hundred  pounds  per  passenger)  and  revenue  cargo  first  received  either as  originating or connecting traffic or finally discharged by the  taxpayer  at airports;    (C)  Taxpayers principally engaged as air freight forwarders acting as  principal and like indirect air carriers shall allocate business  income  in  accordance  with  subparagraphs  (1)  through (4) of this paragraph,  including the special provision relating to the allocation  of  receipts  from  the  activity  of  air  freight  forwarding  acting  as  principal  contained in clause (B) of subparagraph (2) of this paragraph.    (D)  A  foreign  air  carrier  described  in  the  first  sentence  of  subparagraph  one  of paragraph (c-1) of subdivision nine of section two  hundred eight of this article shall determine  its  business  allocation  percentage  pursuant to the provisions of subparagraphs one through four  of this paragraph, except that the numerators and denominators  involved  in  such  computation  shall  exclude property to the extent employed in  generating income excluded  from  entire  net  income  pursuant  to  the  provisions of paragraph (c-1) of subdivision nine of section two hundred  eight of this article, exclude such receipts as are excluded from entire  net  income for the taxable year pursuant to the provisions of paragraph  (c-1) of subdivision nine of section two hundred eight of this  article,  and exclude wages, salaries or other personal service compensation which  are  directly  attributable  to  the  generation of income excluded from  entire net income for the taxable year pursuant  to  the  provisions  of  paragraph (c-1) of subdivision nine of section two hundred eight of this  article.    (8) Provided, further, however that the business allocation percentage  of  a taxpayer principally engaged in the conduct of a railroad business  (including surface railroad, whether or not operated  by  steam,  subway  railroad,  elevated  railroad, palace car or sleeping car business) or a  trucking business, shall, notwithstanding the  foregoing  provisions  of  this  paragraph,  be  computed by dividing the taxpayer's mileage within  this state during the period covered by its  report  by  the  taxpayer's  mileage within and without this state during such period.    (9)(A)  In  the case of a taxpayer which is a registered securities or  commodities broker or dealer, the receipts specified in  subclauses  (i)  through  (vii)  of  this  clause  shall be deemed to arise from services  performed within the state to the extent  set  forth  in  each  of  such  subclauses.    (i)  Receipts  constituting  brokerage  commissions  derived  from the  execution of securities or commodities purchase or sales orders for  the  accounts  of  customers shall be deemed to arise from services performedat the mailing address in the records of the taxpayer  of  the  customer  who is responsible for paying such commissions.    (ii)  Receipts  constituting  margin  interest  earned  on  behalf  of  brokerage accounts shall be deemed to arise from services  performed  at  the  mailing  address in the records of the taxpayer of the customer who  is responsible for paying such margin interest.    (iii) Gross income, including any accrued interest or dividends,  from  principal  transactions  for  the  purchase  or  sale  of stocks, bonds,  foreign exchange and other securities or commodities (including  futures  and  forward  contracts,  options  and  other  types  of  securities  or  commodities  derivatives  contracts)  shall  be  deemed  to  arise  from  services  performed  within  the  state  either  (I)  to the extent that  production credits are awarded to branches, offices or employees of  the  taxpayer  within the state as a result of such principal transactions or  (II) if the taxpayer so elects, to the extent that  the  gross  proceeds  from  such  principal transactions (determined without deduction for any  cost incurred by the taxpayer to acquire the securities or  commodities)  are  generated  from  sales  of  securities  or commodities to customers  within the state based upon the mailing addresses of such  customers  in  the  records of the taxpayer. For purposes of item (II) of the preceding  sentence, the taxpayer shall separately calculate such gross income from  principal transactions by type of security or commodity. For purposes of  this subclause,  gross  income  from  principal  transactions  shall  be  determined  after  the deduction of any cost incurred by the taxpayer to  acquire  the  securities  or   commodities.   For   purposes   of   this  subparagraph,  the  term  "production  credits"  means  credits  granted  pursuant to the internal accounting  system  used  by  the  taxpayer  to  measure  the  amount  of  revenue that should be awarded to a particular  branch or office or employee of the taxpayer which is based, at least in  part, on  the  branch's,  the  office's  or  the  employee's  particular  activities.  Upon  request,  the taxpayer shall be required to furnish a  detailed  explanation  of  such  internal  accounting  system   to   the  department.    (iv)  (I)  Receipts  constituting  fees  earned  by  the  taxpayer for  advisory services to a customer in connection with the  underwriting  of  securities  for  such  customer (such customer being the entity which is  contemplating issuing or is issuing securities) or fees  earned  by  the  taxpayer  for  managing  an  underwriting  shall be deemed to arise from  services performed at the mailing address in the records of the taxpayer  of such customer who is responsible for paying such fees. (II)  Receipts  constituting  the primary spread or selling concession from underwritten  securities shall be deemed to arise from services performed  within  the  state  to  the  extent  that production credits are awarded to branches,  offices or employees of the taxpayer within the state as a result of the  sale of the underwritten securities. (III)  The  term  "primary  spread"  means  the  difference  between  the  price  paid by the taxpayer to the  issuer of the securities being marketed and the price received from  the  subsequent  sale  of  the  underwritten securities at the initial public  offering price, less any selling concession and any  fees  paid  to  the  taxpayer  for  advisory services or any manager's fees, if such fees are  not paid by the customer to the taxpayer separately.  The  term  "public  offering  price"  means  the  price  agreed upon by the taxpayer and the  issuer at which the securities are to be offered to the public. The term  "selling  concession"  means  the  amount  paid  to  the  taxpayer   for  participating  in  the  underwriting of a security where the taxpayer is  not the lead underwriter. The term "production credits" shall  have  the  same meaning as in subclause (iii) of this clause.(v) Receipts constituting interest earned by the taxpayer on loans and  advances  made  by  the  taxpayer  to  a corporation affiliated with the  taxpayer but with which the taxpayer is not  permitted  or  required  to  file  a  combined  report pursuant to section two hundred eleven of this  article  shall  be  deemed  to  arise  from  services  performed  at the  principal place of business of such affiliated corporation.    (vi) Receipts constituting account maintenance fees shall be deemed to  arise from services performed at the mailing address in the  records  of  the  taxpayer of the customer who is responsible for paying such account  maintenance fees.    (vii) Receipts constituting fees for management or advisory  services,  including   fees   for  advisory  services  in  relation  to  merger  or  acquisition activities but excluding fees paid for services described in  subclause (ii) of clause (B) of  subparagraph  two  of  this  paragraph,  shall  be deemed to arise from services performed at the mailing address  in the records of the taxpayer of the customer who  is  responsible  for  paying such fees.    (B)  For  purposes  of  this subparagraph, the term "securities" shall  have the same meaning as in section 475(c)(2) of  the  internal  revenue  code  and  the  term  "commodities"  shall  have  the same meaning as in  section 475(e)(2) of the internal revenue  code.  The  term  "registered  securities  or  commodities  broker  or dealer" means a broker or dealer  registered as such by the securities  and  exchange  commission  or  the  commodities  futures  trading  commission,  and  shall  include  an  OTC  derivatives dealer as defined under regulations of  the  securities  and  exchange  commission at title 17, part 240, section 3b-12 of the code of  federal regulations (17 CFR 240.3b-12).    (C) If the taxpayer receives any of the receipts enumerated in  clause  (A)  of  this  subparagraph  as  a  result of a securities correspondent  relationship such taxpayer has with  another  registered  securities  or  commodities   broker   or  dealer  with  the  taxpayer  acting  in  this  relationship as the clearing firm, such  receipts  shall  be  deemed  to  arise  from  services performed within the state to the extent set forth  in each of such subclauses. The amount of such  receipts  shall  exclude  the amount the taxpayer is required to pay to the correspondent firm for  such  correspondent  relationship.  If  the taxpayer receives any of the  receipts enumerated in clause (A) of this subparagraph as a result of  a  securities  correspondent  relationship  such  taxpayer has with another  registered securities or commodities broker or dealer with the  taxpayer  acting in this relationship as the introducing firm, such receipts shall  be  deemed  to  arise  from  services  performed within the state to the  extent set forth in each of such subclauses.    (D) If, for purposes of subclause (i), (ii), (iv)(I), (vi),  or  (vii)  of  clause  (A)  of  this  subparagraph, the taxpayer is unable from its  records to determine the mailing address of the customer,  the  receipts  enumerated  in  any  of  such  subclauses  shall be deemed to arise from  services performed  at  the  branch  or  office  of  the  taxpayer  that  generates the transaction for the customer that generated such receipts.    (10)  (A)  Notwithstanding the foregoing provisions of this paragraph,  other than subparagraphs seven and eight of this paragraph, the business  allocation percentage shall be computed in the manner set forth in  this  subparagraph.    (i)  For  taxable  years  beginning  on  or  after  January first, two  thousand six and before January first, two thousand seven, the  business  allocation  percentage  shall  be  determined  by  adding  together  the  following percentages:    (I) the product of twenty percent and the percentage determined  under  subparagraph one of this paragraph,(II)  the product of sixty percent and the percentage determined under  subparagraph two of this paragraph, and    (III)  the  product  of  twenty  percent and the percentage determined  under subparagraph three of this paragraph.    (ii) For taxable years  beginning  on  or  after  January  first,  two  thousand   seven,  the  business  allocation  percentage  shall  be  the  percentage provided for in subparagraph two of this paragraph.    (b) multiplying its investment  income  by  an  investment  allocation  percentage to be determined by    (1)  multiplying the amount of its investment capital invested in each  stock, bond or  other  security  (other  than  governmental  securities)  during  the  period  covered  by  its  report by the issuer's allocation  percentage of the issuer or obligor thereof.    (i) In the case of an issuer or obligor subject to tax  under  section  one  hundred  eighty-three,  one  hundred  eighty-five  or  one  hundred  eighty-six of this chapter or under this article or article thirty-three  of this chapter (except for savings and  insurance  banks  described  in  subdivision  (b)  of  section  fifteen  hundred  of  this  chapter), the  issuer's  allocation  percentage  shall  be  the   percentage   of   the  appropriate  measure  (as  defined  hereinafter) which is required to be  allocated within the state on the report, if any, required of the issuer  or obligor under this chapter for the preceding  year.  The  appropriate  measure  referred  to in the preceding sentence shall be: in the case of  an issuer or obligor subject to section one hundred eighty-three of this  chapter, issued capital stock; in the  case  of  an  issuer  or  obligor  subject  to  section  one  hundred  eighty-five  of this chapter, issued  capital stock; in the case of an issuer or obligor  subject  to  section  one  hundred  eighty-six of this chapter, gross earnings; in the case of  an issuer or obligor subject to this article, entire capital; and in the  case of an issuer or obligor subject to  article  thirty-three  of  this  chapter, gross direct premiums.    (ii)  In the case of an issuer or obligor subject to tax under article  thirty-two of this chapter, the issuer's allocation percentage shall  be  determined as follows:    (A)  In  the case of a banking corporation described in paragraphs one  through eight of subsection (a) of section fourteen hundred fifty-two of  this chapter which is organized under the laws  of  the  United  States,  this  state  or  any  other  state  of  the  United States, the issuer's  allocation  percentage  shall  be  its  alternative  entire  net  income  allocation  percentage, as defined in subsection (c) of section fourteen  hundred fifty-four of this chapter, for the preceding year. In the  case  of  such  a  banking corporation whose alternative entire net income for  the preceding year is  derived  exclusively  from  business  carried  on  within  the  state,  its  issuer's  allocation  percentage  shall be one  hundred percent.    (B) In the case of a banking corporation described in paragraph two of  subsection (a) of section fourteen hundred  fifty-two  of  this  chapter  which  is  organized  under  the laws of a country other than the United  States, the  issuer's  allocation  percentage  shall  be  determined  by  dividing  (I)  the amount described in clause (i) of subparagraph (A) of  paragraph two of subsection (a) of section fourteen  hundred  fifty-four  of this chapter with respect to such issuer or obligor for the preceding  year,  by  (II)  the  gross  income  of  such issuer or obligor from all  sources within and without the United States, for such  preceding  year,  whether or not included in alternative entire net income for such year.    (C) In the case of an issuer or obligor described in paragraph nine of  subsection (a) or in paragraph two of subsection (d) of section fourteen  hundred  fifty-two  of  this chapter, the issuer's allocation percentageshall be determined by dividing the portion of the entire capital of the  issuer or obligor allocable to this state for the preceding year by  the  entire  capital,  wherever  located,  of  the  issuer or obligor for the  preceding year.    (iii)  Provided,  however,  that if a report for the preceding year is  not filed, or if filed does not contain information which  would  permit  the  determination  of  such  issuer's  allocation  percentage, then the  issuer's allocation percentage to be used shall, at  the  discretion  of  the  commissioner,  be  either  (A)  the  issuer's allocation percentage  derived from the most recently filed report of the issuer or obligor  or  (B) a percentage calculated, by the commissioner, reasonably to indicate  the  degree  of economic presence in this state of the issuer or obligor  during the preceding year.    (2) adding together the sums so obtained, and    (3) dividing the r