§ 1505. Limitation on tax. (a) (1) Domestic, foreign and alien
insurance corporations except life insurance corporations.
Notwithstanding the provisions of sections fifteen hundred one and
fifteen hundred ten of this article, and except as otherwise provided in
paragraph two of this subdivision, the amount of taxes imposed under
such sections for taxable years beginning on or after January first,
nineteen hundred seventy-seven and before January first, two thousand
three, computed without regard to any credits allowable against such tax
other than those credits provided under subdivisions (g) and (h) of
section fifteen hundred eleven of this article, shall not exceed an
amount computed as if such taxes were determined solely under section
fifteen hundred ten, except that for purposes of the limitation provided
herein, the rate of tax under such section shall be deemed to be (i) two
and six-tenths percent for taxable years beginning on or after January
first, nineteen hundred seventy-seven and before July first, two
thousand, (ii) two and four tenths percent for taxable years beginning
after June thirtieth, two thousand and before July first, two thousand
one, (iii) two and two tenths percent for taxable years beginning after
June thirtieth, two thousand one and before July first, two thousand
two, and (iv) two percent for taxable years beginning after June
thirtieth, two thousand two.

(2) Domestic, foreign and alien life insurance corporations. The
provisions of this paragraph shall apply to taxpayers subject to tax
under paragraph one of subdivision (b) of section fifteen hundred ten of
this article. Notwithstanding the provisions of sections fifteen hundred
one and fifteen hundred ten of this article, the amount of taxes imposed
under such sections for taxable years beginning on or after January
first, nineteen hundred seventy-seven, computed without regard to any
credits allowable against such tax other than those credits provided
under subdivisions (g) and (h) of section fifteen hundred eleven of this
article, shall not exceed an amount computed as if such taxes were
determined solely under section fifteen hundred ten, except that for
purposes of the limitation provided herein, the rate of tax under such
section shall be deemed to be (i) two and six-tenths percent for taxable
years beginning on or after January first, nineteen hundred
seventy-seven and before January first, nineteen hundred ninety-eight,
and (ii) two percent for taxable years beginning on or after January
first, nineteen hundred ninety-eight.

(b) Notwithstanding the provisions of sections fifteen hundred one and
fifteen hundred ten of this article, in the case of taxpayers subject to
tax under subdivision (b) of section fifteen hundred ten, the total
amount of tax imposed under this article, computed before the
application of any credits allowable against such tax, shall in no event
be less than the amount computed as if such tax was determined solely
under section fifteen hundred ten, except that the rate of tax under
section fifteen hundred ten shall be deemed to be one and five-tenths
percent.

(c) For purposes of the limitation set forth in subdivision (a) of
this section, in the case of an insurance corporation more than
ninety-five percent of whose premiums are received as consideration for
annuity contracts or are for policies and insurance described in
paragraph two of subdivision (c) of section fifteen hundred ten of this
article, in determining the amount of tax computed solely under section
fifteen hundred ten of this article, gross direct premiums subject to
tax under such section shall include such amounts received as
consideration for annuity contracts and premiums for policies and
insurance, including any separate costs assessed by such insurance
corporation upon its policyholders, described in paragraph two of
subdivision (c) of such section that exceed ninety-five percent of all
premiums received, including consideration for annuity contracts and
premiums for policies and insurance (and any separate costs assessed by
such insurance corporations upon its policyholders) described in
paragraph two of subdivision (c) of such section.