New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter XVII - Certified Capital Companies Under Section 11 Of The Tax Law
Part 400 - Certified Capital Companies Under Section 11 Of The Tax Law
Section 400.1 - Purpose

(a) This Part implements section 11 of the Tax Law, as added by section 144 of chapter 389 of the Laws of 1997, which provides for the establishment of certified capital companies and confers authority on the Insurance Department (the department) to certify and regulate such companies. Section 11 of the Tax Law creates a tax credit incentive mechanism to increase investment of financial resources of insurers into the State's venture capital markets. Section 1511 (k) of the Tax Law, as added by section 143 of chapter 389, describes the operation of the tax credit. In section 142 of chapter 389, the Legislature made a finding that, in order to promote the growth of the State economy, a need exists to further encourage the investment of private financial resources into the State's venture capital markets, emphasizing viable smaller business enterprises which traditionally have had difficulty in attracting institutional venture capital. In addition, the legislation and this Part implement the legislative goal of promoting the formation and expansion of new and existing businesses, thereby creating jobs and resulting in growth in the State's economy.

(b) This Part does not reflect legislative amendments to section 11 of the Tax Law enacted subsequent to October 28, 1998, with respect to the dates for acceptance of certified capital company certification and tax credit applications and to the maximum tax credits allocated and allowed under any subsequent certified capital program(s) established by such legislation.