New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter I - Franchise and Certain Business Taxes
Subchapter A - Business Corporation Franchise Tax
Part 4 - APPORTIONMENT
Subpart 4-2 - SPECIFIC APPORTIONMENT RULES
Section 4-2.9 - Net interest income from Federal funds
Current through Register Vol. 47, No. 12, March 26, 2025
(Tax Law, section 210-A(5)(a)(2)(F))
(a) 8% of net interest income (not less than zero) from Federal funds is included in New York receipts. The net interest income (not less than zero) from Federal funds is included in everywhere receipts.
(b) Net interest income from Federal funds is determined after the deduction of interest expense from Federal funds. Interest income from Federal funds means interest income paid by another institution in the Federal reserve system for borrowing the corporation's funds deposited at a Federal reserve bank. Interest expense from Federal funds includes the interest paid by the corporation to another institution in the Federal reserve system for the use of the other institution's funds deposited at a Federal reserve bank.
(c) Interest paid to the corporation directly by the Federal reserve on reserves maintained at a Federal reserve bank does not constitute interest income from Federal funds for purposes of this section and is apportioned under the rules for other financial instruments.
