New York Credits Against Tax.
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§ 606. Credits against tax. (a) Investment tax credit (ITC). * (1) A
taxpayer shall be allowed a credit, to be computed as hereinafter
provided, against the tax imposed by this article. The amount of the
credit shall be the per cent provided for hereinbelow of the investment
credit base. The investment credit base is the cost or other basis, for
federal income tax purposes, of tangible personal property and other
tangible property, including buildings and structural components of
buildings, described in paragraph two of this subsection, less the
amount of the nonqualified nonrecourse financing with respect to such
property to the extent such financing would be excludible from the
credit base pursuant to section 46(c)(8) of the internal revenue code
(treating such property as section thirty-eight property irrespective of
whether or not it in fact constitutes section thirty-eight property).
If, at the close of a taxable year following the taxable year in which
such property was placed in service, there is a net decrease in the
amount of nonqualified nonrecourse financing with respect to such
property, such net decrease shall be treated as if it were the cost or
other basis of property described in paragraph two of this subsection
acquired, constructed, reconstructed or erected during the year of the
decrease in the amount of nonqualified nonrecourse financing. The
percentage to be used to compute the credit allowed pursuant to this
subsection shall be that percentage appearing in column two which is
opposite the appropriate period in column one in which the tangible
personal property was acquired, constructed, reconstructed or erected,
as the case may be:
Column 1 Column 2
After December 31, 1968 and
prior to January 1, 1974 one per cent
After December 31, 1973 and
prior to January 1, 1978 two per cent
After December 31, 1977 and
prior to January 1, 1979 three per cent
After December 31, 1978 and
prior to June 1, 1981 four per cent
After May 31, 1981 and
prior to July 1, 1982 five per cent
After June 30, 1982 and
before January 1, 1987 six per cent
After December 31, 1986 four per cent, except that in the
case of research and development
property the applicable
percentage shall be seven
Provided, however, that in the case of an acquisition, construction,
reconstruction or erection which was commenced in any one period and
continued or completed in any subsequent period the credit shall be the
sum of the portions of the investment credit base attributable to each
such period, which portion with respect to each such period shall be
ascertained by multiplying such investment credit base by a fraction the
numerator of which shall be the expenditures paid or incurred during
such period for such purposes and the denominator of which shall be the
total of all expenditures paid or incurred for such acquisition,
construction, reconstruction or erection, multiplied by the allowable
percentage for each such period.
* NB Applies to taxable years beginning after December 31, 1986
(2) * A credit shall be allowed under this subsection with respect to
tangible personal property and other tangible property, including
buildings and structural components of buildings, which are: depreciable
pursuant to section one hundred sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one hundred seventy-nine (d) of the internal
revenue code, have a situs in this state and are principally used by the
taxpayer in the production of goods by manufacturing, processing,
assembling, refining, mining, extracting, farming, agriculture,
horticulture, floriculture, viticulture or commercial fishing.
For purposes of this paragraph, manufacturing shall mean the process
of working raw materials into wares suitable for use or which gives new
shapes, new quality or new combinations to matter which already has gone
through some artificial process by the use of machinery, tools,
appliances and other similar equipment. Property used in the production
of goods shall include machinery, equipment or other tangible property
which is principally used in the repair and service of other machinery,
equipment or other tangible property used principally in the production
of goods and shall include all facilities used in the production
operation, including storage of material to be used in production and of
the products that are produced.
* NB Applies to property to which the amendments made by section 201
of Public Law 99-514 apply
(A) A credit shall be allowed under this subsection with respect to
tangible personal property and other tangible property, including
buildings and structural components of buildings, which are: depreciable
pursuant to section one hundred sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one hundred seventy-nine (d) of the internal
revenue code, have a situs in this state and are (i) principally used by
the taxpayer in the production of goods by manufacturing, processing,
assembling, refining, mining, extracting, farming, agriculture,
horticulture, floriculture, viticulture or commercial fishing, (ii)
industrial waste treatment facilities or air pollution control
facilities, used in the taxpayer's trade or business, (iii) research and
development property, (iv) principally used in the ordinary course of
the taxpayer's trade or business as a broker or dealer in connection
with the purchase or sale (which shall include but not be limited to the
issuance, entering into, assumption, offset, assignment, termination, or
transfer) of stocks, bonds or other securities as defined in section
four hundred seventy-five (c)(2) of the Internal Revenue Code, or of
commodities as defined in section 475(e) of the Internal Revenue Code,
(v) principally used in the ordinary course of the taxpayer's trade or
business of providing investment advisory services for a regulated
investment company as defined in section eight hundred fifty-one of the
Internal Revenue Code, or lending, loan arrangement or loan origination
services to customers in connection with the purchase or sale (which
shall include but not be limited to the issuance, entering into,
assumption, offset, assignment, termination, or transfer) of securities
as defined in section four hundred seventy-five (c)(2) of the Internal
Revenue Code, or (vi) principally used as a qualified film production
facility including qualified film production facilities having a situs
in an empire zone designated as such pursuant to article eighteen-B of
the general municipal law, where the taxpayer is providing three or more
services to any qualified film production company using the facility,
including such services as a studio lighting grid, lighting and grip
equipment, multi-line phone service, broadband information technology
access, industrial scale electrical capacity, food services, security
services, and heating, ventilation and air conditioning. For purposes of
clauses (iv) and (v) of this subparagraph, property purchased by a
taxpayer affiliated with a regulated broker or dealer is allowed a
credit under this subsection if the property is used by its affiliated
regulated broker or dealer in accordance with this subsection. Provided,
however, a taxpayer shall not be allowed the credit provided by clauses
(iv) and (v) of this subparagraph unless all or a substantial portion of
the employees performing the administrative and support functions
resulting from or related to the qualifying uses of such equipment are
located in this state. For purposes of this subsection, the term "goods"
shall not include electricity.
(B) For purposes of this paragraph, the following definitions shall
apply:
(i) Manufacturing shall mean the process of working raw materials into
wares suitable for use or which gives new shapes, new quality or new
combinations to matter which already has gone through some artificial
process by the use of machinery, tools, appliances and other similar
equipment. Property used in the production of goods shall include
machinery, equipment or other tangible property which is principally
used in the repair and service of other machinery, equipment or other
tangible property used principally in the production of goods and shall
include all facilities used in the production operation, including
storage of material to be used in production and of the products that
are produced.
(ii) Research and development property shall mean property which is
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.
(iii) Industrial waste treatment facilities shall mean property
constituting facilities for the treatment, neutralization or
stabilization of industrial waste and other wastes (as the terms
"industrial waste" and "other wastes" are defined in section 17-0105 of
the environmental conservation 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.
(iv) Air pollution control facilities shall mean property constituting
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 19-0107 of the
environmental conservation law) from a point immediately preceding the
point of such removal, reduction or rendering to the point of discharge
of air, meeting emission standards as established by the department of
environmental conservation, 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 emission. Such term shall
further include flue gas desulfurization equipment and attendant sludge
disposal facilities, fluidized bed boilers, precombustion coal cleaning
facilities or other facilities that conform with this subsection and
which comply with the provisions of the State Acid Deposition Control
Act set forth in title nine of article nineteen of the environmental
conservation law.
(v) For purposes of this paragraph, the terms "qualified film
production facility" and "qualified film production company" shall have
the same meaning as in section twenty-four of this chapter.
(C) However, such credit shall be allowed with respect to industrial
waste treatment facilities and air pollution control facilities only on
condition that such facilities have been certified by the state
commissioner of environmental conservation or his designated
representative, pursuant to subdivision one of section 17-0707 or
subdivision one of section 19-0309 of the environmental conservation
law, as complying with applicable provisions of the environmental
conservation law, the public health law, the state sanitary code and
codes, rules, regulations, permits or orders issued pursuant thereto.
* (3) A taxpayer shall not be allowed a credit under this subsection
with respect to any property described in paragraph two hereof if such
property qualifies for the modification allowed under either paragraph
three or paragraph four of subsection (g) of section six hundred twelve
whether or not such amount shall have been subtracted. Provided,
however, with respect to property which qualifies for a modification
under either clause (A), (B) or (C) of paragraph four of subsection (g)
because such property was ordered on or before December thirty-first,
nineteen hundred sixty-eight, but with respect to which no expenditure
has been paid or incurred at such date, the taxpayer may elect to
subtract the amount allowable under clauses (A), (B) or (C) or may take
the credit provided by this subsection, but not both.
* NB Applies to taxable years prior to December 31, 1986
* (3) A taxpayer shall not be allowed a credit under this subsection
with respect to any property described in clause (i) of subparagraph (B)
of paragraph two hereof if such property qualifies for the modification
allowed under either paragraph three or paragraph four of subsection (g)
of section six hundred twelve whether or not such amount shall have been
subtracted. Provided, however, with respect to property which qualifies
for a modification under either clause (A), (B) or (C) of paragraph four
of subsection (g) because such property was ordered on or before
December thirty-first, nineteen hundred sixty-eight, but with respect to
which no expenditure has been paid or incurred at such date, the
taxpayer may elect to subtract the amount allowable under clauses (A),
(B) or (C) or may take the credit provided by this subsection, but not
both.
* NB Applies to taxable years beginning after December 31, 1986
(4) A taxpayer shall not be allowed a credit under this subsection
with respect to tangible personal property and other tangible property,
including buildings and structural components of buildings, which it
leases to any other person or corporation except where a taxpayer leases
property to an affiliated regulated broker or dealer that uses such
property in accordance with clause (iv) or (v) of subparagraph (A) of
paragraph two of this subsection. For purposes of the preceding
sentence, any contract or agreement to lease or rent or for a license to
use such property shall be considered a lease. Provided, however, in
determining whether a taxpayer shall be allowed a credit under this
subsection with respect to such property, any election made with respect
to such property pursuant to the provisions of paragraph eight of
subsection (f) of section one hundred sixty-eight of the internal
revenue code, as such paragraph was in effect for agreements entered
into prior to January first, nineteen hundred eighty-four, shall be
disregarded. For purposes of this paragraph, the use of a qualified film
production facility by a qualified film production company shall not be
considered a lease of such facility to such company.
* (5) If the amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
may be carried over to the following year or years and may be deducted
from the taxpayer's tax for such year or years, provided, however, in
lieu of carrying over any such excess, a taxpayer who qualifies as an
owner of a new business for purposes of paragraph ten of this subsection
may, at his option, receive such excess as a refund. Any refund paid
pursuant to this paragraph shall be deemed to be a refund of an
overpayment of tax as provided in section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
* NB Applies to taxable years prior to December 31, 1986
* (5) If the amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
allowed for a taxable year commencing prior to January first, nineteen
hundred eighty-seven may be carried over to the following year or years
and may be deducted from the taxpayer's tax for such year or years, but
in no event shall such credit be carried over to taxable years
commencing on or after January first, nineteen hundred ninety-seven, and
any amount of credit allowed for a taxable year commencing on or after
January first, nineteen hundred eighty-seven and not deductible in such
year may be carried over to the ten taxable years next following such
taxable year and may be deducted from the taxpayer's tax for such year
or years. In lieu of carrying over any such excess, a taxpayer who
qualifies as an owner of a new business for purposes of paragraph ten of
this subsection may, at his option, receive such excess as a refund. Any
refund paid pursuant to this paragraph shall be deemed to be a refund of
an overpayment of tax as provided in section six hundred eighty-six of
this article, provided, however, that no interest shall be paid thereon.
* NB Applies to taxable years beginning after December 31, 1986
* (6) At the option of the taxpayer, air or water pollution control
facilities which qualify for elective modifications under subsection (h)
of section six hundred twelve, or research and development facilities
which qualify for elective modifications under paragraphs two and four
of subsection (g) of section six hundred twelve may be treated as
property principally used by the taxpayer in the production of goods by
manufacturing, processing, assembling, refining, mining, extracting,
farming, agriculture, horticulture, floriculture, viticulture or
commercial fishing, provided the property otherwise qualifies under
paragraph two of this subsection, in which event, a modification shall
not be allowed under such subsection (h) and under such paragraphs two
and four of subsection (g).
* NB Applies to taxable years prior to December 31, 1986
* (6) At the option of the taxpayer for taxable years commencing prior
to January first, nineteen hundred eighty-seven, air or water pollution
control facilities which qualify for elective modifications under
subsection (h) of section six hundred twelve, or research and
development facilities which qualify for elective modifications under
paragraphs two and four of subsection (g) of section six hundred twelve
may be treated as property principally used by the taxpayer in the
production of goods by manufacturing, processing, assembling, refining,
mining, extracting, farming, agriculture, horticulture, floriculture,
viticulture or commercial fishing, provided the property otherwise
qualifies under paragraph two of this subsection, in which event, a
modification shall not be allowed under such subsection (h) and under
such paragraphs two and four of subsection (g).
* NB Applies to taxable years beginning after December 31, 1986
* (7) (A) With respect to property which is depreciable pursuant to
section one hundred sixty-seven of the internal revenue code but is not
subject to the provisions of section one hundred sixty-eight of such
code and which is disposed of or ceases to be in qualified use prior to
the end of the taxable year in which the credit is to be taken, the
amount of the credit shall be that portion of the credit provided for in
this subsection which represents the ratio which the months of qualified
use bear to the months of useful life. If property on which credit has
been taken is disposed of or ceases to be in qualified use prior to the
end of its useful life, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. Provided, however, if such property is disposed of or
ceases to be in qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not be necessary to add
back the credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to the months
of useful life. For purposes of this subparagraph, useful life of
property shall be the same as the taxpayer uses for depreciation
purposes when computing his federal income tax liability.
(B) Except with respect to that property to which subparagraph (D) of
this paragraph applies, with respect to three-year property, as defined
in subsection (e) of section one hundred sixty-eight of the internal
revenue code, which is disposed of or ceases to be in qualified use
prior to the end of the taxable year in which the credit is to be taken,
the amount of the credit shall be that portion of the credit provided
for in this subsection which represents the ratio which the months of
qualified use bear to thirty-six. If property on which credit has been
taken is disposed of or ceases to be in qualified use prior to the end
of thirty-six months, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. The amount of credit allowed for actual use shall be
determined by multiplying the original credit by the ratio which the
months of qualified use bear to thirty-six.
(C) Except with respect to that property to which subparagraph (D) of
this paragraph applies, with respect to property subject to the
provisions of section one hundred sixty-eight of the internal revenue
code, other than three-year property as defined in subsection (e) of
such section one hundred sixty-eight which is disposed of or ceases to
be in qualified use prior to the end of the taxable year in which the
credit is to be taken, the amount of the credit shall be that portion of
the credit provided for in this subsection which represents the ratio
which the months of qualified use bear to sixty. If property on which
credit has been taken is disposed of or ceases to be in qualified use
prior to the end of sixty months, the difference between the credit
taken and the credit allowed for actual use must be added back in the
year of disposition. The amount of credit allowed for actual use shall
be determined by multiplying the original credit by the ratio which the
months of qualified use bear to sixty.
(D) With respect to any property to which section one hundred
sixty-eight of the internal revenue code applies, which is a building or
a structural component of a building and which is disposed of or ceases
to be in qualified use prior to the end of the taxable year in which the
credit is to be taken, the amount of the credit shall be that portion of
the credit provided for in this subsection which represents the ratio
which the months of qualified use bear to the total number of months
over which the taxpayer chooses to deduct the property under the
internal revenue code. If property on which credit has been taken is
disposed of or ceases to be in qualified use prior to the end of the
period over which the taxpayer chooses to deduct the property under the
internal revenue code, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. Provided, however, if such property is disposed of or
ceases to be in qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not be necessary to add
back the credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to the total
number of months over which the taxpayer chooses to deduct the property
under the internal revenue code.
* NB Applies to property to which the amendments made by section 201
of Public Law 99-514 apply
* (E) For purposes of this paragraph, property (i) which is described
in subparagraph (B), (C) or (D) of this paragraph, and (ii) which is
subject to paragraph twenty-six of subsection (c) and paragraph
twenty-five of subsection (b) of section six hundred twelve of this
chapter, shall be treated as property which is depreciable pursuant to
section one hundred sixty-seven of the internal revenue code but is not
subject to section one hundred sixty-eight of such code.
* NB Applies to taxable years beginning after December 31, 1986
* (F) For purposes of this paragraph, where a credit is allowed with
respect to an air pollution control facility on the basis of a
certificate of compliance issued pursuant to the environmental
conservation law and the certificate is revoked pursuant to subdivision
three of section 19-0309 of the environmental conservation law, such
revocation shall constitute a disposal or cessation of qualified use,
unless such facility is described in clause (i) or (iii) of subparagraph
(A) of paragraph two of this subsection. Also for purposes of this
subparagraph, the use of an air pollution control facility or an
industrial waste treatment facility for the primary purpose of salvaging
materials which are usable in the manufacturing process or are
marketable shall constitute a cessation of qualified use, unless such
facility is described in clause (i) or (iii) of subparagraph (A) of
paragraph two of this subsection.
* NB Applies to taxable years beginning after December 31, 1986
(G) For taxable years commencing on or after January first, nineteen
hundred eighty-seven, the amount required to be added back pursuant to
this paragraph shall be augmented by an amount equal to the product of
such amount and the underpayment rate of interest (without regard to
compounding), set by the commissioner pursuant to subsection (j) of
section six hundred ninety-seven, in effect on the last day of the
taxable year.
* Shall apply to interest chargeable on or after April 1, 2003
* (H) If, as of the close of the taxable year, there is a net increase
with respect to the taxpayer in the amount of nonqualified nonrecourse
financing (within the meaning of section 46(c) (8) of the internal
revenue code) with respect to any property with respect to which the
credit under this subsection was limited based on attributable
nonqualified nonrecourse financing, then an amount equal to the decrease
in such credit which would have resulted from reducing, by the amount of
such net increase, the cost or other basis taken into account with
respect to such property must be added back in such taxable year. The
amount of nonqualified nonrecourse financing shall not be treated as
increased by reason of a transfer of (or agreement to transfer) any
evidence of an indebtedness if such transfer occurs (or such agreement
is entered into) more than one year after the date such indebtedness was
incurred.
* NB Applies to taxable years beginning after December 31, 1986
(10) For purposes of paragraph five of this subsection, an individual
who is either a sole proprietor or a member of a partnership shall
qualify as an owner of a new business unless:
(A) the business of which the individual is an owner is substantially
similar in operation and in ownership to a business entity taxable, or
previously taxable, under section one hundred eighty-three, one hundred
eighty-four, one hundred eighty-five or one hundred eighty-six of
article nine; article nine-A, 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 whereby the intent and purpose of this paragraph and paragraph
five of this subsection with respect to refunding of credit to new
business would be evaded; or
(B) the individual has operated such new business entity in this state
for more than five taxable years (excluding short years of the
business).
(11) Retail enterprise tax credit. A retail enterprise, not eligible
to claim the credit under paragraph one of this subsection, but eligible
to claim the credit allowable under section thirty-eight of the internal
revenue code pursuant solely to the provisions of subparagraph (E) of
paragraph one of subsection (a) of section forty-eight of such code,
shall be allowed a credit as hereinafter computed. The amount of the
credit shall be the percentage appearing in paragraph one of this
subsection for the periods described therein for the amount of qualified
rehabilitation expenditures, as defined in subsection (g) of section
forty-eight of such code, paid or incurred with respect to a qualified
rehabilitated building, as defined in such subsection (g), located in
this state and such expenditures shall be further limited to only the
portion thereof paid or incurred with respect to that part of a
qualified rehabilitated building employed by such taxpayer in the retail
sales activity of such retail enterprise. For the purposes of this
subsection, the term "retail enterprise" means a taxpayer which is: (A)
a registered vendor under article twenty-eight of this chapter, (B)
primarily engaged in the retail sale, as the term "retail sale" is
defined in subparagraph (i) of paragraph four of subdivision (b) of
section eleven hundred one of this chapter, of tangible personal
property, and (C) otherwise eligible for the credit allowed pursuant to
section thirty-eight of the internal revenue code.
* (12) Rehabilitation credit for historic barns. A taxpayer shall be
allowed a credit, to be computed as hereinafter provided, against the
tax imposed by this article. The amount of the credit shall be
twenty-five percent of the taxpayer's qualified rehabilitation
expenditures, as defined in paragraph two of subsection (c) of section
forty-seven of the internal revenue code, which qualify as the basis for
the credit provided for under paragraph one of subsection (b) of section
thirty-eight of such code by reason of subsection one of section
forty-six of such code, paid or incurred with respect to any barn
located in this state which is a qualified rehabilitated building, as
such term is defined in paragraph one of subsection (c) of such section
forty-seven. For purposes of this paragraph, the term "barn" means a
building originally designed and used for storing farm equipment or
agricultural products, or for housing livestock. Provided, however, such
qualified rehabilitation expenditures shall not include any such
expenditures which are included, directly or indirectly, in the
computation of a credit claimed by the taxpayer pursuant to paragraph
one of this subsection. Provided further that no rehabilitation credit
shall be allowed for any rehabilitation of a barn which, immediately
prior to the commencement of such rehabilitation, was used for
residential purposes, or which converts a barn not suitable for
residential purposes into one which is so suitable, nor shall a
rehabilitation credit be allowed for any rehabilitation that materially
alters the historic appearance of the barn.
* NB Applies to taxable years beginning on or after January 1, 1997
(13)(A)(i) If a taxpayer is required by paragraph seven of this
subsection to add back a portion of the credit taken because property
was destroyed or ceased to be in qualified use as a direct result of the
September eleventh, two thousand one terrorist attacks, such taxpayer
may elect to defer the amount to be recaptured for all such property to
the taxable year next succeeding the taxable year in which the
destruction or cessation of qualified use occurred. The taxable year in
which the destruction or cessation of qualified use occurred shall be
hereinafter referred to as the "recapture event taxable year". If the
taxpayer's total employment number in the state on the last day of the
taxable year next succeeding the recapture event taxable year is a
significant percentage of the taxpayer's average total employment number
in the state for the taxpayer's recapture event taxable year and the two
taxable years immediately preceding the recapture event taxable year,
then the taxpayer shall not be required to recapture any credit with
respect to such property. If the taxpayer's total employment number in
the state on the last day of the taxable year next succeeding the
recapture event taxable year is not a significant percentage of the
taxpayer's average total employment number in the state for the
taxpayer's recapture event taxable year and the two taxable years
immediately preceding the recapture event taxable year, the taxpayer
shall be required to recapture the portion of the credit taken under
this subsection, as required by paragraph seven of this subsection, for
all of its property destroyed or which ceased to be in qualified use as
a direct result of the September eleventh, two thousand one terrorist
attacks. The amount required to be recaptured shall be augmented as
required pursuant to subparagraph (G) of paragraph seven of this
subsection by using an interest rate equal to two times the rate of
interest specified in such subparagraph seven applicable for the taxable
year in which the recapture occurs.
(ii) The taxpayer's total employment number shall include all
employees of the taxpayer employed full-time by the taxpayer in the
state. The average total employment number for the recapture event
taxable year and the two taxable years immediately preceding the
recapture event taxable year shall be computed by determining the
taxpayer's total employment number on the thirty-first day of March, the
thirtieth day of June, the thirtieth day of September and the
thirty-first day of December during the applicable taxable years, adding
together the number of such individuals determined to be so employed on
each of such dates and dividing the sum so obtained by the number of
such dates occurring within such applicable taxable years. However, in
the case of the taxable year which included September eleventh, two
thousand one, the average total employment number for such taxable year
shall be determined by using the total employment number on September
first, two thousand one in lieu of September thirtieth, two thousand one
and, if such taxable year included December thirty-first, two thousand
one, by excluding the total employment number on December thirty-first,
two thousand one.
(B) In lieu of subparagraph (A) of this paragraph, a taxpayer may
elect to recapture the portion of the credit taken under this
subsection, as required by paragraph seven of this subsection, for all
of its property destroyed or which ceased to be in qualified use as a
direct result of the September eleventh, two thousand one terrorist
attacks, in the taxable year in which the destruction or cessation of
qualified use occurred. If the taxpayer makes such election and acquires
property (hereinafter referred to as "replacement property") to replace
any property destroyed as a direct result of the September eleventh, two
thousand one terrorist attacks (regardless of when such property was
placed in service and whether a credit was claimed on that property
pursuant to this subsection), and such replacement property is similar
or related in service or use to such destroyed property, the investment
credit base of the replacement property shall be determined without
regard to any basis reduction required pursuant to section 1033 of the
internal revenue code.
(C) The election made by the taxpayer under subparagraph (A) or (B) of
this paragraph shall be made in the manner and form prescribed by the
commissioner.
(D) A taxpayer, over fifty percent of whose employees died as a direct
result of the September eleventh, two thousand one terrorist attacks,
may make the election provided for in subparagraph (A) of this
paragraph, and shall not be required to recapture any credit with
respect to property which was destroyed or which ceased to be in
qualified use as a direct result of such attacks, whether or not it
meets the employment test specified in clause (i) of subparagraph (A) of
this paragraph.
(a-1) Employment incentive credit (EIC). (1)(A) Where a taxpayer is
allowed a credit under subsection (a) of this section, other than at the
optional rate applicable to research and development property, the
taxpayer shall be allowed a credit for each of the two years next
succeeding the taxable year for which the credit under such subsection
(a) is allowed with respect to such property, whether or not deductible
in such taxable year or in subsequent taxable years pursuant to
paragraph five of subsection (a) of this section. Provided, however,
that the credit allowable under this subsection for any taxable year
shall be allowed only if the average number of employees during such
taxable year is at least one hundred one percent of the average number
of employees during the employment base year. The employment base year
shall be the taxable year immediately preceding the taxable year for
which the credit under such subsection (a) is allowed except that in the
case of a new business, the employment base year shall be the taxable
year in which the credit under such subsection (a) is allowed.
(B) The amount of the credit allowed under this subsection shall be as
set forth in the following table:
Average number of employees Credit allowed under
during the taxable year this subsection expressed as a
expressed as a percentage of percentage of
average number of employees the applicable investment
in employment base year: credit base:
Less than 102% 1.5%
at least 102% and less than 103% 2%
at least 103% 2.5%
(2) The average number of employees in a taxable year shall be
computed by ascertaining the number of employees within the state
employed by the taxpayer on the thirty-first day of March, the thirtieth
day of June, the thirtieth day of September and the thirty-first day of
December in the taxable year, by adding together the number of employees
ascertained on each of such dates and dividing the sum so obtained by
the number of such abovementioned dates occurring within the taxable
year. For the purposes of this subsection, the term "employees within
the state" shall not include, except with respect to the employment base
year, any employee with respect to whom a credit provided for under
subsection (k) of this section is claimed for the taxable year, based on
employment within a zone equivalent area designated as such pursuant to
article eighteen-B of the general municipal law.
(3) If the amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
allowed for a taxable year may be carried over to the ten taxable years
next following such taxable year and may be deducted from the taxpayer's
tax for such year or years. In lieu of carrying over any such excess, a
taxpayer who qualifies as an owner of a new business for purposes of
paragraph ten of subsection (a) of this section may, at his or her
option, receive such excess as a refund. Any refund paid pursuant to
this paragraph shall be deemed to be a refund of an overpayment of tax
as provided in section six hundred eighty-six of this article, provided,
however, that no interest shall be paid thereon.
(b) Household credit. * (1) For taxable years beginning before
nineteen hundred ninety-one, a household credit shall be allowed against
the tax imposed by section six hundred one of this article. Provided,
however, the credit allowed for the taxable year beginning in nineteen
hundred ninety shall be fifty percent of the credit otherwise allowable
under this subsection. The credit, computed as described in paragraph
two of this subsection, shall not exceed the tax imposed by section six
hundred one for the taxable year, reduced by the credits permitted under
subsection (c) of this section and sections six hundred twenty, six
hundred twenty-one and six hundred forty of this article.
* NB Applies to taxable years beginning prior to 1988
* (1) A household credit shall be allowed against the tax determined
under subsections (a) through (d) of section six hundred one of this
article. The credit, computed as described in paragraph two of this
subsection, shall not exceed the tax determined under subsections (a)
through (d) of section six hundred one for the taxable year, reduced by
the credits permitted under subsections (c) and (m) of this section and
sections six hundred twenty and six hundred twenty-one of this article.
* NB Applies to taxable years beginning after 1987
* (1) A household credit shall be allowed against the tax determined
under subsections (a) through (d) of section six hundred one of this
article. The credit, computed as described in paragraph two of this
subsection, shall not exceed the tax determined under subsections (a)
through (d) of section six hundred one for the taxable year, reduced by
the credits permitted under sections six hundred twenty and six hundred
twenty-one of this article.
* NB Applies to taxable years beginning on or after January 1, 1996
(2) (A) For any individual who is not married nor the head of a
household nor a surviving spouse, the amount of the credit allowed
pursuant to this subsection for taxable years beginning on or after
January first, nineteen hundred eighty-six shall be determined in
accordance with the following table:
If household gross The credit
income is shall be
Not over $5,000 $75.00
Over $5,000 but not over $6,000 60.00
Over $6,000 but not over $7,000 50.00
Over $7,000 but not over $20,000 45.00
Over $20,000 but not over $25,000 40.00
Over $25,000 but not over $28,000 20.00
* (B) For any husband and wife, head of a household, or surviving
spouse, the amount of the credit allowed pursuant to this subsection for
taxable years beginning on or after January first, nineteen hundred
eighty-six shall be determined in accordance with the following table:
If household gross The credit
income is shall be
Not over $5,000 $90.00 plus an amount equal to
$15.00 multiplied by a number which
is one less than the number of
exemptions for which the taxpayer (or
in the case of a husband and wife,
taxpayers) is entitled to a deduction
for the taxable year for federal
income tax purposes under subsections
(b) and (c) of section one hundred
fifty-one of the internal revenue
code
Over $5,000 but not over $6,000 $75.00 plus such an amount
Over $6,000 but not over $7,000 $65.00 plus such an amount
Over $7,000 but not over $20,000 $60.00 plus such an amount
Over $20,000 but not over $22,000 $60.00 plus an amount equal to $10.00
multiplied by a number which is one
less than the number of exemptions
for which the taxpayer (or in the
case of a husband and wife,
taxpayers) is entitled to a deduction
for the taxable year for federal
income tax purposes under subsections
(b) and (c) of section one hundred
fifty-one of the internal revenue
code
Over $22,000 but not over $25,000 $50.00 plus such an amount
Over $25,000 but not over $28,000 $40.00 plus an amount equal to $5.00
multiplied by a number which is one
less than the number of exemptions
for which the taxpayer (or in the
case of a husband and wife,
taxpayers) is entitled to a deduction
for the taxable year for federal
income tax purposes under subsections
(b) and (c) of section one hundred
fifty-one of the internal revenue
code
Over $28,000 but not over $32,000 $20.00 plus such an amount
* NB Applies to taxable years beginning after 1986
(3) For the purposes of this subsection:
(A) "Household gross income" shall mean the aggregate federal adjusted
gross income of a household, as the term household is defined in
subparagraph (B) of this paragraph, for the taxable year.
(B) "Household" means a husband and wife, a head of household, a
surviving spouse, or an individual who is not married nor the head of a
household nor a surviving spouse nor a taxpayer with respect to whom a
deduction under subsection (c) of section one hundred fifty-one of the
internal revenue code is allowable to another taxpayer for the taxable
year.
(C) "Household gross income of a husband and wife" shall be the
aggregate of their federal adjusted gross incomes for the taxable year
irrespective of whether joint or separate New York income tax returns
are filed. Provided, however, that a husband or wife who is required to
file a separate New York income tax return shall be permitted one-half
the credit otherwise allowed his or her household, except as limited by
paragraph one of this subsection.
* (D) "Household gross income" shall be computed in all cases as if
each member of the household were a resident for the entire taxable
year.
* NB Repealed as applied to taxable years beginning after 1987
* (E) If a taxpayer changes his status during his taxable year from
resident to nonresident, or from nonresident to resident, the household
credit shall be prorated according to each period. In the case of a
husband and wife, if either or both changes his or her status from
resident to nonresident or from nonresident to resident and separate
returns are filed, the credit computed for the entire year shall be
divided first as provided in subparagraph (C) of this paragraph and then
prorated according to each period.
* NB Repealed as applied to taxable years beginning after 1987
(c) Credit for certain household and dependent care services necessary
for gainful employment.
* (1) A taxpayer shall be allowed a credit, to be computed as
hereinafter provided, against the tax imposed by section six hundred one
of this article. Except as provided below, the amount of the credit
shall be twenty percent of the credit allowed such taxpayer pursuant to
the provisions of section twenty-one of the internal revenue code for
the same taxable year. The amount of such credit shall not exceed the
tax imposed by section six hundred one of this article for the taxable
year, reduced by the credits permitted under sections six hundred
twenty, six hundred twenty-one and six hundred forty of this article.
* NB Shall be deemed to have been in full force and effect since April
20, 1987
* (1) A taxpayer shall be allowed a credit, to be computed as
hereinafter provided, against the tax determined under subsections (a)
through (d) of section six hundred one of this article. Except as
provided below, the amount of the credit shall be twenty percent of the
credit allowed such taxpayer pursuant to the provisions of section
twenty-one of the internal revenue code for the same taxable year. The
amount of such credit shall not exceed the tax determined under
subsections (a) through (d) of section six hundred one of this article
for the taxable year, reduced by the credits permitted under sections
six hundred twenty and six hundred twenty-one of this article.
* NB Applies to taxable years beginning after 1987
* (2) In the case of a husband and wife who file a joint federal
return, but who are required to determine their New York taxes
separately, the credit allowed pursuant to this subsection may only be
applied against the tax imposed on the spouse with the lower taxable
income, computed without regard to such credit.
* NB Applies to taxable years beginning after 1986
* (3) A nonresident individual shall be allowed the same credit as is
allowed resident individuals under this subsection; except that if (A)
his New York adjusted gross income determined under section six hundred
thirty-two of this article, as a nonresident is exceeded by (B) the New
York adjusted gross income he would be required to report under section
six hundred twelve of this article, if he were a resident, by more than
one hundred dollars, the credit shall be limited to the amount which
represents the same percentage of the total allowable credit which (A)
is of (B).
* NB Applies to taxable years beginning after 1986
* NB Repealed as applied to taxable years beginning after 1987
* (4) If a taxpayer changes his status during his taxable year from
resident to nonresident, or from nonresident to resident, a credit
computed as if the taxpayer were a resident for the entire taxable year
shall be prorated according to the periods of residence and
nonresidence, and the portion thereby assigned to the period of
nonresidence shall be then subject to the limitations set forth in
paragraph three of this subsection computed with respect to such period
of nonresidence.
* NB Repealed as applied to taxable years beginning after 1987
* (c) Credit for certain household and dependent care services
necessary for gainful employment.
(1) A taxpayer shall be allowed a credit as provided herein equal to
the applicable percentage of the credit allowable under section
twenty-one of the internal revenue code for the same taxable year
(without regard to whether the taxpayer in fact claimed the credit under
such section twenty-one for such taxable year). The applicable
percentage shall be the sum of (i) twenty percent and (ii) a multiplier
multiplied by a fraction. For taxable years beginning in nineteen
hundred ninety-six and nineteen hundred ninety-seven, the numerator of
such fraction shall be the lesser of (i) four thousand dollars or (ii)
fourteen thousand dollars less the New York adjusted gross income for
the taxable year, provided, however, the numerator shall not be less
than zero. For the taxable year beginning in nineteen hundred
ninety-eight, the numerator of such fraction shall be the lesser of (i)
thirteen thousand dollars or (ii) thirty thousand dollars less the New
York adjusted gross income for the taxable year, provided, however, the
numerator shall not be less than zero. For taxable years beginning in
nineteen hundred ninety-nine, the numerator of such fraction shall be
the lesser of (i) fifteen thousand dollars or (ii) fifty thousand
dollars less the New York adjusted gross income for the taxable year,
provided, however, the numerator shall not be less than zero. For
taxable years beginning after nineteen hundred ninety-nine, the
numerator of such fraction shall be the lesser of (i) fifteen thousand
dollars or (ii) sixty-five thousand dollars less the New York adjusted
gross income for the taxable year, provided, however, the numerator
shall not be less than zero. The denominator of such fraction shall be
four thousand dollars for taxable years beginning in nineteen hundred
ninety-six and nineteen hundred ninety-seven, thirteen thousand dollars
for the taxable year beginning in nineteen hundred ninety-eight, and
fifteen thousand dollars for taxable years beginning after nineteen
hundred ninety-eight. The multiplier shall be ten percent for taxable
years beginning in nineteen hundred ninety-six, forty percent for
taxable years beginning in nineteen hundred ninety-seven, and eighty
percent for taxable years beginning after nineteen hundred ninety-seven.
Provided, however, for taxable years beginning after nineteen hundred
ninety-nine, for a person whose New York adjusted gross income is less
than forty thousand dollars, such applicable percentage shall be equal
to (i) one hundred percent, plus (ii) ten percent multiplied by a
fraction whose numerator shall be the lesser of (i) fifteen thousand
dollars or (ii) forty thousand dollars less the New York adjusted gross
income for the taxable year, provided such numerator shall not be less
than zero, and whose denominator shall be fifteen thousand dollars.
Provided, further, that if the reversion event, as defined in this
paragraph, occurs, the applicable percentage shall, for taxable years
ending on or after the date on which the reversion event occurred, be
determined using the rules specified in this paragraph applicable to
taxable years beginning in nineteen hundred ninety-nine. The reversion
event shall be deemed to have occurred on the date on which federal
action, including but not limited to, administrative, statutory or
regulatory changes, materially reduces or eliminates New York state's
allocation of the federal temporary assistance for needy families block
grant, or materially reduces the ability of the state to spend federal
temporary assistance for needy families block grant funds for the credit
for certain household and dependent care services necessary for gainful
employment or to apply state general fund spending on the credit for
certain household and dependent care services necessary for gainful
employment toward the temporary assistance for needy families block
grant maintenance of effort requirement, and the commissioner of the
office of temporary and disability assistance shall certify the date of
such event to the commissioner, the director of the division of the
budget, the speaker of the assembly and the temporary president of the
senate.
(2) Residents. In the case of a resident taxpayer, the credit under
this subsection shall be allowed against the taxes imposed by this
article for the taxable year reduced by the credits permitted by this
article. If the credit exceeds the tax as so reduced, the taxpayer may
receive, and the comptroller, subject to a certificate of the
commissioner, shall pay as an overpayment, without interest, the amount
of such excess.
(3) Nonresidents. In the case of a nonresident taxpayer, the credit
under this subsection shall be allowed against the tax determined under
subsections (a) through (d) of section six hundred one. The amount of
the credit shall not exceed the tax determined under such subsections
for the taxable year reduced by the credit permitted under subsection
(b) of this section.
(4) Part-year residents. In the case of a part-year resident taxpayer,
the credit under this subsection shall be allowed against the tax
determined under subsections (a) through (d) of section six hundred one
reduced by the credit permitted under subsection (b) of this section,
and any excess credit after such application shall be allowed against
the taxes imposed by sections six hundred two and six hundred three. Any
remaining excess, after such application, shall be refunded as provided
in paragraph two hereof, provided, however, that any overpayment under
such paragraph shall be limited to the amount of the remaining excess
multiplied by a fraction, the numerator of which is federal adjusted
gross income for the period of residence, computed as if the taxable
year for federal income tax purposes were limited to the period of
residence, and the denominator of which is federal adjusted gross income
for the taxable year.
(5) In the case of a husband and wife who file a joint federal return,
but who are required to determine their New York taxes separately, the
credit allowed pursuant to this subsection may only be applied against
the tax imposed on the spouse with the lower taxable income, computed
without regard to such credit. In the case of a husband and wife who are
not required to file a federal return, the credit under this subsection
shall be allowed only if such taxpayers file a joint New York income tax
return.
* NB Applies to taxable years beginning on or after January 1, 1996
(c-1) Empire state child credit. (1) A resident taxpayer shall be
allowed a credit as provided herein equal to the greater of one hundred
dollars times the number of qualifying children of the taxpayer or the
applicable percentage of the child tax credit allowed the taxpayer under
section twenty-four of the internal revenue code for the same taxable
year. Provided, however, in the case of a taxpayer whose federal
adjusted gross income exceeds the applicable threshold amount set forth
by section 24(b)(2) of the Internal Revenue Code, the credit shall only
be equal to the applicable percentage of the child tax credit allowed
the taxpayer under section 24 of the Internal Revenue Code. For the
purposes of this subsection, a qualifying child shall be a child who
meets the definition of qualified child under section 24(c) of the
internal revenue code and is at least four years of age. The applicable
percentage shall be thirty-three percent.
(2) If the amount of the credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
shall be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(3) In the case of a husband and wife who file a joint federal return,
but who are required to determine their New York taxes separately, the
credit allowed pursuant to this subsection may be applied against the
tax imposed of either or divided between them as they may elect.
(d) Earned income credit. (1) General. A taxpayer shall be allowed a
credit as provided herein equal to (i) the applicable percentage of the
earned income credit allowed under section thirty-two of the internal
revenue code for the same taxable year, (ii) reduced by the credit
permitted under subsection (b) of this section.
The applicable percentage shall be (i) seven and one-half percent for
taxable years beginning in nineteen hundred ninety-four, (ii) ten
percent for taxable years beginning in nineteen hundred ninety-five,
(iii) twenty percent for taxable years beginning after nineteen hundred
ninety-five and before two thousand, (iv) twenty-two and one-half
percent for taxable years beginning in two thousand, (v) twenty-five
percent for taxable years beginning in two thousand one, (vi)
twenty-seven and one-half percent for taxable years beginning in two
thousand two, and (vii) thirty percent for taxable years beginning in
two thousand three and thereafter. Provided, however, that if the
reversion event, as defined in this paragraph, occurs, the applicable
percentage shall be twenty percent for taxable years ending on or after
the date on which the reversion event occurred. The reversion event
shall be deemed to have occurred on the date on which federal action,
including but not limited to, administrative, statutory or regulatory
changes, materially reduces or eliminates New York state's allocation of
the federal temporary assistance for needy families block grant, or
materially reduces the ability of the state to spend federal temporary
assistance for needy families block grant funds for the earned income
credit or to apply state general fund spending on the earned income
credit toward the temporary assistance for needy families block grant
maintenance of effort requirement, and the commissioner of the office of
temporary and disability assistance shall certify the date of such event
to the commissioner of taxation and finance, the director of the
division of the budget, the speaker of the assembly and the temporary
president of the senate.
(2) Residents. In the case of a resident taxpayer, the credit under
this subsection shall be allowed against the taxes imposed by this
article for the taxable year reduced by the credits permitted by this
article. If the credit exceeds the tax as so reduced, the taxpayer may
receive, and the comptroller, subject to a certificate of the
commissioner, shall pay as an overpayment, without interest, the amount
of such excess.
(3) Nonresidents. In the case of a nonresident taxpayer, the credit
under this subsection shall be allowed against the tax determined under
subsections (a) through (d) of section six hundred one. The amount of
the credit shall not exceed the tax determined under such subsections
for the taxable year reduced by the credits permitted under subsections
(b), (c) and (m) of this section.
(4) Part-year residents. In the case of a part-year resident taxpayer,
the credit under this subsection shall be allowed against the tax
determined under subsections (a) through (d) of section six hundred one
reduced by the credits permitted under subsections (b), (c) and (m) of
this section, and any excess credit after such application shall be
allowed against the taxes imposed by sections six hundred two and six
hundred three. Any remaining excess, after such application, shall be
refunded as provided in paragraph two hereof, provided, however, that
any overpayment under such paragraph shall be limited to the amount of
the remaining excess multiplied by a fraction, the numerator of which is
federal adjusted gross income for the period of residence, computed as
if the taxable year for federal income tax purposes were limited to the
period of residence, and the denominator of which is federal adjusted
gross income for the taxable year.
(5) Husband and wife. In the case of a husband and wife who file a
joint federal return but who are required to determine their New York
taxes separately, the credit allowed pursuant to this subsection may be
applied against the tax of either or divided between them as they may
elect.
(6) Notification. The commissioner shall periodically, but not less
than every three years, make efforts to alert taxpayers that may be
currently eligible to receive the credit provided under this subsection,
and the credit provided under any local law enacted pursuant to
subsection (f) of section thirteen hundred ten of this chapter, as to
their potential eligibility. In making the determination of whether a
taxpayer may be eligible for such credit, the commissioner shall use
such data as may be appropriate and available, including, but not
limited to, data available from the United States Department of
Treasury, Internal Revenue Service and New York state income tax returns
for preceding tax years.
(7) Reports. The commissioner shall prepare a preliminary written
report after July thirty-first and a final written report after December
thirty-first of each calendar year, which shall contain statistical
information regarding the credits granted on or before such dates under
this subsection, and under any local law enacted pursuant to subsection
(f) of section thirteen hundred ten of this chapter, during such
calendar year. Copies of these reports shall be submitted by such
commissioner to the governor, the temporary president of the senate, the
speaker of the assembly, the chairman of the senate finance committee
and the chairman of the assembly ways and means committee within sixty
days of July thirty-first with respect to the preliminary report, and
within forty-five days of December thirty-first with respect to the
final report, and copies of such reports with respect to credits under
any local law enacted pursuant to subsection (f) of section thirteen
hundred ten of this chapter shall be submitted in addition to the mayor
and the speaker of the council of the city where such a local law is in
effect. Such reports shall contain, but need not be limited to, the
number of credits and the average amount of such credits allowed; and of
those, the number of credits and the average amount of such credits
allowed to taxpayers in each county; and of those, the number of credits
and the average amount of such credits allowed to taxpayers whose earned
income falls within ranges, determined by the commissioner, of not more
than four thousand dollars; and of those, the number of credits and the
average amount of such credits allowed to taxpayers who file under the
different statuses set forth in subsections (a), (b) and (c) of section
six hundred one of this part; and of those, the number of credits and
the average amount of such credits allowed to taxpayers whose number of
qualifying children falls within the categories set forth in such
section thirty-two of the internal revenue code.
(d-1) Enhanced earned income tax credit. (1) A taxpayer described in
paragraph two of this subsection shall be allowed a credit equal to the
greater of:
(A) twenty percent of the amount of the earned income tax credit that
would have been allowed to the taxpayer under section 32 of the internal
revenue code, absent the application of section 32(b)(2)(B) of such
code, if the child or children described in subparagraph (C) of
paragraph two of this subsection satisfied the requirements for a
qualifying child set forth in section 32(c)(3) of such code, provided
however, that the credit shall be calculated as if the taxpayer had only
one child; or
(B) the product of two and one-half and the amount of the earned
income tax credit that would have been allowed to the taxpayer under
section 32 of the internal revenue code, if the taxpayer satisfied the
eligibility requirements set forth in section 32(c)(1)(A)(ii) of such
code.
(2) To be allowed a credit under this subsection, a taxpayer must
satisfy all of the following qualifications.
(A) The taxpayer must be a resident taxpayer.
(B) The taxpayer must have attained the age of eighteen.
(C) The taxpayer must be the parent of a minor child or children with
whom the taxpayer does not reside.
(D) The taxpayer must have an order requiring him or her to make child
support payments, which are payable through a support collection unit
established pursuant to section one hundred eleven-h of the social
services law, which order must have been in effect for at least one-half
of the taxable year.
(E) The taxpayer must have paid an amount in child support in the
taxable year at least equal to the amount of current child support due
during the taxable year for every order requiring him or her to make
child support payments.
(3) If the amount of the credit allowed under this subsection shall
exceed the taxpayer's tax for such year, the excess shall be treated as
an overpayment of tax to be credited or refunded in accordance with the
provisions of section six hundred eighty-six of this article, provided,
however, that no interest shall be paid thereon.
(4) No claim for credit under this subsection shall be allowed unless
the department has verified, from information provided by the office of
temporary and disability assistance, that a taxpayer has satisfied the
qualifications set forth in subparagraphs (C), (D) and (E) of paragraph
two of this subsection. The office of temporary and disability
assistance shall provide to the department by January fifteenth of each
year information applicable for the immediately preceding tax year
necessary for the department to make such verification. Such information
shall be provided in the manner and form agreed upon by the department
and such office. If a taxpayer's claim for a credit under this
subsection is disallowed because the taxpayer has not satisfied the
qualifications set forth in subparagraphs (C), (D) and (E) of paragraph
two of this subsection, the taxpayer may request a review of those
qualifications by the support collection unit established pursuant to
section one hundred eleven-h of the social services law through which
the child support payments were payable. The support collection unit
shall transmit the result of that review to the office of temporary and
disability assistance on a form developed by such office. Such office
shall then transmit such result to the department in a manner agreed
upon by the department and such office.
(5) A taxpayer shall not be allowed multiple credits under this
subsection for a taxable year even if such taxpayer has more than one
child or has more than one order requiring him or her to make child
support payments.
(6) If a credit is allowed under this subsection and the taxpayer is
also allowed a credit under subsection (d) of this section, the taxpayer
shall only be allowed to claim one credit.
(7) In the report prepared pursuant to paragraph seven of subsection
(d) of this section, the commissioner shall include statistical
information concerning the credit allowed pursuant to this subsection.
Such information shall be limited to the number of credits and the
average amount of such credits allowed; and of those, the number of
credits and the average amounts of such credits allowed to taxpayers in
each county.
* (e) Real property tax circuit breaker credit. (1) For purposes of
this subsection:
(A) "Qualified taxpayer" means a resident individual of the state who
has occupied the same residence for six months or more of the taxable
year, and is required or chooses to file a return under this article.
(B) "Household" or "members of the household" means a qualified
taxpayer and all other persons, not necessarily related, who have the
same residence and share its furnishings, facilities and accommodations.
Such terms shall not include a tenant, subtenant, roomer or boarder who
is not related to the qualified taxpayer in any degree specified in
paragraphs one through eight of subsection (a) of section one hundred
fifty-two of the internal revenue code. Provided, however, no person may
be a member of more than one household at one time.
(C) "Household gross income" means the aggregate adjusted gross income
of all members of the household for the taxable year as reported for
federal income tax purposes, or which would be reported as adjusted
gross income if a federal income tax return were required to be filed,
with the modifications in subsection (b) of section six hundred twelve
but without the modifications in subsection (c) of such section, plus
any portion of the gain from the sale or exchange of property otherwise
excluded from such amount; earned income from sources without the United
States excludable from federal gross income by section nine hundred
eleven of the internal revenue code; support money not included in
adjusted gross income; nontaxable strike benefits; supplemental security
income payments; the gross amount of any pension or annuity benefits to
the extent not included in such adjusted gross income (including, but
not limited to, railroad retirement benefits and all payments received
under the federal social security act and veterans' disability
pensions); nontaxable interest received from the state of New York, its
agencies, instrumentalities, public corporations, or political
subdivisions (including a public corporation created pursuant to
agreement or compact with another state or Canada); workers'
compensation; the gross amount of "loss-of-time" insurance; and the
amount of cash public assistance and relief, other than medical
assistance for the needy, paid to or for the benefit of the qualified
taxpayer or members of his household. Household gross income shall not
include surplus foods or other relief in kind or payments made to
individuals because of their status as victims of Nazi persecution as
defined in P.L. 103-286. Provided, further, household gross income shall
only include all such income received by all members of the household
while members of such household.
(D) "Residence" means a dwelling in this state, whether owned or
rented, and so much of the land abutting it, not exceeding one acre, as
is reasonably necessary for use of the dwelling as a home, and may
consist of a part of a multi-dwelling or multi-purpose building
including a cooperative or condominium, and rental units within a single
dwelling. Residence includes a trailer or mobile home, used exclusively
for residential purposes and defined as real property pursuant to
paragraph (g) of subdivision twelve of section one hundred two of the
real property tax law.
(E) "Qualifying real property taxes" means all real property taxes,
special ad valorem levies and special assessments, exclusive of
penalties and interest, levied on the residence of a qualified taxpayer
and paid during the taxable year. In addition, for taxable years
beginning after December thirty-first, nineteen hundred eighty-four, a
qualified taxpayer may elect to include any additional amount that would
have been levied in the absence of an exemption from real property
taxation pursuant to section four hundred sixty-seven of the real
property tax law. If tenant-stockholders in a cooperative housing
corporation have met the requirements of section two hundred sixteen of
the internal revenue code by which they are allowed a deduction for real
estate taxes, the amount of taxes so allowable, or which would be
allowable if the taxpayer had filed returns on a cash basis, shall be
qualifying real property taxes. If a residence is owned by two or more
individuals as joint tenants or tenants in common, and one or more than
one individual is not a member of the household, qualifying real
property taxes is that part of such taxes on the residence which
reflects the ownership percentage of the qualified taxpayer and members
of his household. If a residence is an integral part of a larger unit,
qualifying real property taxes shall be limited to that amount of such
taxes paid as may be reasonably apportioned to such residence. If a
household owns and occupies two or more residences during different
periods in the same taxable year, qualifying real property taxes shall
be the sum of the prorated qualifying real property taxes attributable
to the household during the periods such household occupies each of such
residences. If the household owns and occupies a residence for part of
the taxable year and rents a residence for part of the same taxable
year, it may include both the proration of qualifying real property
taxes on the residence owned and the real property tax equivalent with
respect to the months the residence is rented. Provided, however, for
purposes of the credit allowed under this subsection, qualifying real
property taxes may be included by a qualified taxpayer only to the
extent that such taxpayer or the spouse of such taxpayer occupying such
residence for six months or more of the taxable year owns or has owned
the residence and paid such taxes.
(F) "Real property tax equivalent" means twenty-five percent of the
adjusted rent actually paid in the taxable year by a household solely
for the right of occupancy of its New York residence for the taxable
year. If (i) a residence is rented to two or more individuals as
cotenants, or such individuals share in the payment of a single rent for
the right of occupancy of such residence, and (ii) each of such
individuals is a member of a different household, one or more of which
individuals shares such residence, real property tax equivalent is that
portion of twenty-five percent of the adjusted rent paid in the taxable
year which reflects that portion of the rent attributable to the
qualified taxpayer and the members of his household.
(G) "Adjusted rent" means rental paid for the right of occupancy of a
residence, excluding charges for heat, gas, electricity, furnishings and
board. Where charges for heat, gas, electricity, furnishing or board are
included in rental but where such charges and the amount thereof are not
separately set forth in a written rental agreement, for purposes of
determining adjusted rent the qualified taxpayer shall reduce rental
paid as follows:
(i) For heat, or heat and gas, deduct fifteen percent of rental paid.
(ii) For heat, gas and electricity, deduct twenty percent of rental
paid.
(iii) For heat, gas, electricity and furnishings, deduct twenty-five
percent of rental paid.
(iv) For heat, gas, electricity, furnishings and board, deduct fifty
percent of rental paid.
If the tax commission determines that the adjusted rent shown on the
return is excessive, the tax commission may reduce such rent, for
purposes of the computation of the credit, to an amount substantially
equivalent to rent for a comparable accommodation.
(2) A qualified taxpayer shall be allowed a credit as provided in
paragraph three hereof against the taxes imposed by this article reduced
by the credits permitted by this article. If the credit exceeds the tax
as so reduced for such year under this article the qualified taxpayer
may receive, and the comptroller, subject to a certificate of the state
tax commission, shall pay as an overpayment, without interest, any
excess between such tax as so reduced and the amount of the credit. If a
qualified taxpayer is not required to file a return pursuant to section
six hundred fifty-one, a qualified taxpayer may nevertheless receive and
the comptroller, subject to a certificate of the state tax commission,
shall pay as an overpayment the full amount of the credit, without
interest.
(3) Determination of credit. (A) For qualified taxpayers who have
attained the age of sixty-five years before the beginning of or during
the taxable year the amount of the credit allowable under this
subsection shall be fifty percent, or in the case of a qualified
taxpayer who has elected to include an additional amount pursuant to
subparagraph (E) of paragraph one of this subsection, twenty-five
percent, of the excess of real property taxes or the excess of real
property tax equivalent determined as follows:
Excess real property taxes are the
excess of real property tax
equivalent or the excess of
qualifying
real property taxes over the follow-
If household gross income for ing percentage of household gross
the taxable year is: income:
_____________________________ ____________________________________
$3,000 or less 3 1/2
Over $3,000 but not over $5,000 4
Over $5,000 but not over $7,000 4 1/2
Over $7,000 but not over $9,000 5
Over $9,000 but not over $11,000 5 1/2
Over $11,000 but not over $14,000 6
Over $14,000 but not over $18,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit
determined under this subparagraph may not exceed the amount determined
in accordance with the following table:
If household gross income The maximum credit is:
for the taxable year is:
_________________________________ ____________________________________
$1,000 or less $375
Over $1,000 but not over $2,000 $358
Over $2,000 but not over $3,000 $341
Over $3,000 but not over $4,000 $324
Over $4,000 but not over $5,000 $307
Over $5,000 but not over $6,000 $290
Over $6,000 but not over $7,000 $273
Over $7,000 but not over $8,000 $256
Over $8,000 but not over $9,000 $239
Over $9,000 but not over $10,000 $222
Over $10,000 but not over $11,000 $205
Over $11,000 but not over $12,000 $188
Over $12,000 but not over $13,000 $171
Over $13,000 but not over $14,000 $154
Over $14,000 but not over $15,000 $137
Over $15,000 but not over $16,000 $120
Over $16,000 but not over $17,000 $103
Over $17,000 but not over $18,000 $ 86
(B) For all other qualified taxpayers the amount of the credit
allowable under this subsection shall be fifty percent of excess real
property taxes or the excess of the real property tax equivalent
determined as follows:
Excess real property taxes are the
excess of real property tax
equivalent or the excess of
qualifying
real property taxes over the follow-
If household gross income for ing percentage of household gross
the taxable year is: income:
_____________________________ ____________________________________
$3,000 or less 3 1/2
Over $3,000 but not over $5,000 4
Over $5,000 but not over $7,000 4 1/2
Over $7,000 but not over $9,000 5
Over $9,000 but not over $11,000 5 1/2
Over $11,000 but not over $14,000 6
Over $14,000 but not over $18,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit
determined under this subparagraph may not exceed the amount determined
in accordance with the following table:
If household gross income for
the taxable year is: The maximum credit is:
______________________________ ____________________________________
$1,000 or less $75
Over $1,000 but not over $2,000 $73
Over $2,000 but not over $3,000 $71
Over $3,000 but not over $4,000 $69
Over $4,000 but not over $5,000 $67
Over $5,000 but not over $6,000 $65
Over $6,000 but not over $7,000 $63
Over $7,000 but not over $8,000 $61
Over $8,000 but not over $9,000 $59
Over $9,000 but not over $10,000 $57
Over $10,000 but not over $11,000 $55
Over $11,000 but not over $12,000 $53
Over $12,000 but not over $13,000 $51
Over $13,000 but not over $14,000 $49
Over $14,000 but not over $15,000 $47
Over $15,000 but not over $16,000 $45
Over $16,000 but not over $17,000 $43
Over $17,000 but not over $18,000 $41
(4) If a qualified taxpayer occupies a residence for a period of less
than twelve months during the taxable year or occupies two or more
residences during different periods in such taxable year, the credit
allowed pursuant to this subsection shall be computed in such manner as
the tax commission may, by regulation, prescribe in order to properly
reflect the credit or portion thereof attributable to such residence or
residences and such period or periods.
(5) The tax commission may prescribe that the credit under this
subsection shall be determined in whole or in part by the use of tables
prescribed by such commission. Such tables shall set forth the credit to
the nearest dollar.
(6) Only one credit per household and per qualified taxpayer shall be
allowed per taxable year under this subsection. When two or more members
of a household are able to meet the qualifications for a qualified
taxpayer, the credit shall be equally divided between or among such
individuals unless such individuals file with the tax commission a
written agreement among such individuals setting forth a different
division. Where two or more members of a household are able to meet the
qualifications of a qualified taxpayer and one of them is sixty-five
years of age or more, the credit which may be taken shall be the credit
applicable to individuals who have attained the age of sixty-five years.
(A) Provided, however, where a joint income tax return has been filed
pursuant to the provisions of section six hundred fifty-one by a
qualified taxpayer and his spouse (or where both spouses are qualified
taxpayers and have filed such joint return), the credit, or the portion
of the credit if divided, to which the husband and wife are entitled
shall be applied against the tax of both spouses and any overpayment
shall be made to both spouses.
(B) Where any return required to be filed pursuant to the provisions
of section six hundred fifty-one is combined with any return of tax
imposed pursuant to the authority of this chapter or any other law if
such tax is administered by the tax commission, the credit or the
portion of the credit if divided, allowed to the qualified taxpayer may
be applied by the tax commission toward any liability for the
aforementioned taxes.
(7) No credit shall be granted under this subsection:
(A) If household gross income for the taxable year exceeds eighteen
thousand dollars.
(B) To a property owner unless: (i) the property is used for
residential purposes, (ii) not more than twenty percent of the rental
income, if any, from the property is from rental for nonresidential
purposes and (iii) the property is occupied as a residence in whole or
in part by one or more of the owners of the property.
(C) To a property owner who owns real property, the full value of
which exceeds eighty-five thousand dollars.
(D) To a tenant if the adjusted rent for the residence exceeds four
hundred fifty dollars per month on average.
(E) To an individual with respect to whom a deduction under subsection
(c) of section one hundred fifty-one of the internal revenue code is
allowable to another taxpayer for the taxable year.
(F) With respect to a residence that is wholly exempted from real
property taxation.
(G) To an individual who is not a resident individual of the state for
the entire taxable year.
(8) The right to claim a credit or the portion of a credit, where such
credit has been divided under this subsection, shall be personal to the
qualified taxpayer and shall not survive his death, but such right may
be exercised on behalf of a claimant by his legal guardian or attorney
in fact during his lifetime.
(9) Returns. If a qualified taxpayer is not required to file a return
pursuant to section six hundred fifty-one, a claim for a credit may be
taken on a return filed with the tax commission within three years from
the time it would have been required that a return be filed pursuant to
such section had the qualified taxpayer had a taxable year ending on
December thirty-first. Returns under this paragraph shall be in such
form as shall be prescribed by the tax commission, which shall make
available such forms and instructions for filing such returns.
(10) Proof of claim. The tax commission may require a qualified
taxpayer to furnish the following information in support of his claim
for credit under this subsection: household gross income, rent paid,
name and address of owner or managing agent of the property rented, real
property taxes levied or that would have been levied in the absence of
an exemption from real property tax pursuant to section four hundred
sixty-seven of the real property tax law, the names of members of the
household and other qualifying taxpayers occupying the same residence
and their identifying numbers including social security numbers,
household gross income, size and nature of property claimed as residence
and all other information which may be required by the tax commission to
determine the credit.
(11) Administration. The provisions of this article, including the
provisions of section six hundred fifty-three, six hundred fifty-eight,
and six hundred fifty-nine and the provisions of part six of this
article relating to procedure and administration, including the judicial
review of the decisions of the tax commission, except so much of section
six hundred eighty-seven which permits a claim for credit or refund to
be filed after the period provided for in paragraph nine of this
subsection and except sections six hundred fifty-seven, six hundred
eighty-eight and six hundred ninety-six, shall apply to the provisions
of this subsection in the same manner and with the same force and effect
as if the language of those provisions had been incorporated in full
into this subsection and had expressly referred to the credit allowed or
returns filed under this subsection, except to the extent that any such
provision is either inconsistent with a provision of this subsection or
is not relevant to this subsection. As used in such sections and such
part, the term "taxpayer" shall include a qualified taxpayer under this
subsection and, notwithstanding the provisions of subsection (e) of
section six hundred ninety-seven, where a qualified taxpayer has
protested the denial of a claim for credit under this subsection and the
time to file a petition for redetermination of a deficiency or for
refund has not expired, he shall, subject to such conditions as may be
set by the tax commission, receive such information (A) which is
contained in any return filed under this article by a member of his
household for the taxable year for which the credit is claimed, and (B)
which the tax commission finds is relevant and material to the issue of
whether such claim was properly denied. The tax commission shall have
the authority to promulgate such rules and regulations as may be
necessary for the processing, determination and granting of credits and
refunds under this subsection.
(12) The commissioner may request the cooperation of the state board
of real property services in carrying out the provisions of this
subsection. Such board may promulgate such rules and regulations,
subject to prior consultation with the commissioner, as may be necessary
to provide such assistance with respect to the determination of full
value of real property for purposes of the credit allowed under this
subsection.
(13) Notwithstanding any other provision of this article, the credit
allowed under this subsection shall be determined after the
determination and application of any other credits permitted under the
provisions of this article.
(14) The commissioner of taxation and finance shall prepare a
preliminary written report after July thirty-first and a final written
report after December thirty-first of each calendar year, which shall
contain statistical information regarding the credits granted on or
before such dates under this subsection during such calendar year.
Copies of these reports shall be submitted by such commissioner to the
governor, the temporary president of the senate, the speaker of the
assembly, the chairman of the senate finance committee and the chairman
of the assembly ways and means committee within sixty days of July
thirty-first with respect to the preliminary report, and within
forty-five days of December thirty-first with respect to the final
report. Such reports shall contain, but need not be limited to, the
number of credits and the average amount of such credits allowed; and of
those, the number of credits and the average amount of such credits
allowed to qualified taxpayers in each county; and of those, the number
of credits and the average amount of such credits allowed to qualified
taxpayers whose household gross income falls within each of the
household gross income ranges set forth in paragraph three of this
subsection; and of those, the number of credits and the average amount
of such credits allowed to qualified taxpayers whose credit amount falls
within credit amount ranges set forth in twenty-five dollar increments.
* NB Applies to taxable years beginning after 1986
(e-1) Volunteer firefighters' and ambulance workers' credit. (1) For
taxable years beginning on and after January first, two thousand seven,
a resident taxpayer who serves as an active volunteer firefighter as
defined in subdivision one of section two hundred fifteen of the general
municipal law or as a volunteer ambulance worker as defined in
subdivision fourteen of section two hundred nineteen-k of the general
municipal law shall be allowed a credit against the tax imposed by this
article equal to two hundred dollars. In order to receive this credit a
volunteer firefighter or volunteer ambulance worker must have been
active for the entire taxable year for which the credit is sought.
(2) If a taxpayer receives a real property tax exemption relating to
such service under title two of article four of the real property tax
law, such taxpayer shall not be eligible for this credit.
(3) In the case of a husband and wife who file a joint return and who
both individually qualify for the credit under this subsection, the
amount of the credit allowed shall be four hundred dollars.
(4) If the amount of the credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
shall be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(f) Credit for the special additional mortgage recording tax. * (1)
For taxable years beginning before nineteen hundred eighty-eight, a
taxpayer shall be allowed a credit, to be credited against the tax
imposed by this article, after allowance of any other credit provided
under this section and any credits permitted under sections six hundred
twenty, six hundred twenty-one and six hundred forty of this article.
The amount of the credit shall be the amount of the special additional
mortgage recording tax paid by the taxpayer pursuant to the provisions
of subdivision one-a of section two hundred fifty-three of this chapter
on mortgages recorded on and after January first, nineteen hundred
seventy-nine. Provided, however, no credit shall be allowed with respect
to a mortgage of real property principally improved or to be improved by
one or more structures containing in the aggregate not more than six
residential dwelling units, each dwelling unit having its own separate
cooking facilities, where the real property is located in one or more of
the counties comprising the metropolitan commuter transportation
district and where the mortgage is recorded on or after May first,
nineteen hundred eighty-seven. Provided, however, no credit shall be
allowed with respect to a mortgage of real property principally improved
or to be improved by one or more structures containing in the aggregate
not more than six residential dwelling units, each dwelling unit having
its own separate cooking facilities, where the real property is located
in the county of Erie and where the mortgage is recorded on or after May
first, nineteen hundred eighty-seven.
* NB Applies to taxable years beginning prior to 1988
* (1) For taxable years beginning before nineteen hundred
eighty-eight, a taxpayer shall be allowed a credit, to be credited
against the tax imposed by this article, after allowance of any other
credit provided under this section and any credits permitted under
sections six hundred twenty, six hundred twenty-one and six hundred
thirty-five of this article. The amount of the credit shall be the
amount of the special additional mortgage recording tax paid by the
taxpayer pursuant to the provisions of subdivision one-a of section two
hundred fifty-three of this chapter on mortgages recorded on and after
January first, nineteen hundred seventy-nine. Provided, however, no
credit shall be allowed with respect to a mortgage of real property
principally improved or to be improved by one or more structures
containing in the aggregate not more than six residential dwelling
units, each dwelling unit having its own separate cooking facilities,
where the real property is located in one or more of the counties
comprising the metropolitan commuter transportation district and where
the mortgage is recorded on or after May first, nineteen hundred
eighty-seven. Provided, however, no credit shall be allowed with respect
to a mortgage of real property principally improved or to be improved by
one or more structures containing in the aggregate not more than six
residential dwelling units, each dwelling unit having its own separate
cooking facilities, where the real property is located in the county of
Erie and where the mortgage is recorded on or after May first, nineteen
hundred eighty-seven.
* NB Applies to taxable years beginning after 1987
(2) In no event shall the amount of the credit herein provided for be
allowed in excess of the taxpayer's tax for such year. However, if the
amount of credit otherwise allowable under this subsection for any
taxable year results in such excess amount, any amount of credit not
deductible in such taxable year may be carried over to the following
year or years and may be deducted from the taxpayer's tax for such year
or years.
(3)(A) Notwithstanding the provisions of paragraphs one and two of
this subsection, for taxable years beginning after two thousand three, a
taxpayer shall be allowed a credit, to be credited against the tax
imposed by this article, equal to the amount of the special additional
mortgage recording tax paid by the taxpayer or, in the case of a
taxpayer who is a partner in a partnership, the partner's pro rata share
of the amount of the special additional mortgage recording tax paid by
the partnership, pursuant to the provisions of subdivision one-a of
section two hundred fifty-three of this chapter on mortgages recorded on
and after January first, two thousand four. Provided, however, no credit
shall be allowed with respect to a mortgage of real property principally
improved by one or more structures containing in the aggregate not more
than six residential dwelling units, each dwelling unit having its own
separate cooking facilities, where the real property is located in one
or more of the counties comprising the metropolitan commuter
transportation district and where the mortgage is recorded on or after
January first, two thousand four. Provided further, no credit shall be
allowed with respect to a mortgage of real property principally improved
by one or more structures containing in the aggregate not more than six
residential dwelling units, each dwelling unit having its own separate
cooking facilities, where the real property is located in Erie county
and where the mortgage is recorded on or after January first, two
thousand four.
(B) If the amount of credit allowable under this paragraph for any
taxable year exceeds the taxpayer's tax for such year, any amount of
credit exceeding such tax may be carried over to the following year or
years and may be deducted from the taxpayer's tax for such year or
years. Provided further, such taxpayer may elect to treat such unused
amount of credit as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article except that no interest shall be paid on such overpayment.
(g) Credit for solar and wind energy systems. (1) A taxpayer shall be
allowed a credit for taxable years beginning on or after January first,
nineteen hundred eighty-one and ending before December thirty-first,
nineteen hundred eighty-six against the tax imposed by this article for
the purchase and installation of a solar or wind energy system by a
taxpayer in his principal residence, if such residence is located within
the state. The amount of the credit shall be fifty-five percent of the
expenditure incurred in purchasing and installing any such system or
combination thereof, but not to exceed the maximum credit of two
thousand seven hundred fifty dollars.
(2) A solar or wind system is a system whose original use begins with
the taxpayer; which meets the eligibility criteria, if any, prescribed
by the department of taxation and finance; and which is:
(A) an active solar energy system which shall mean an arrangement or
combination of components designed to provide heating, cooling, hot
water or electricity through the process of collecting solar radiation,
converting it to another form of energy, storing the converted energy,
protecting against unnecessary dissipation and distributing the
converted energy, and which requires external mechanical power for
operation. This term shall not include pipes, controls, insulation or
other equipment which are part of the conventional heating, cooling,
insulation or electrical system of a building; nor shall it include any
expenditure allocable to a swimming pool used as a storage medium;
(B) a passive solar energy system, which shall mean a system which
relies upon the original or retrofitted design and elements of a
building to enhance the use of natural forces including solar radiation,
winds and night-time coolness to provide heating, cooling or hot water
through the process of collecting solar radiation, converting it to
another form of energy, storing the converted energy, protecting against
unnecessary dissipation and distributing the converted energy, and which
is not primarily dependent upon mechanical power for operation. This
term shall not include pipes, controls, insulation or other equipment
which are part of the conventional heating, cooling or insulation system
of the building; nor shall it include any expenditure allocable to a
swimming pool used as a storage medium; or
(C) a wind energy system, which shall mean an arrangement or
combination of components, including power conditioning equipment,
designed to provide electricity or mechanical energy through the process
of converting wind energy into mechanical and/or electric energy, and
storing or distributing such energy.
(3) Where a solar or wind energy system is purchased and installed by
a condominium management association or a cooperative housing
corporation, a taxpayer who is a member of the condominium management
association or who is a tenant-stockholder in the cooperative housing
corportion may for the purpose of this subsection claim a proportionate
share of the total expense as the expenditure for the purposes of the
credit attributable to his principal residence.
(4) Where a solar or wind system is purchased and installed in a
principal residence shared by two or more taxpayers the amount of the
credit allowable under this subsection for each such taxpayer shall be
prorated according to the percentage of the total expenditure for such
system contributed by each taxpayer.
(5) To the extent that a federal income tax credit shall apply to
expenditures eligible for a credit under this subsection, the credit
provided in this subsection shall be reduced so that the combined credit
shall not exceed fifty-five percent of such expenditures or six thousand
seven hundred fifty dollars, whichever is less.
(6) If the amount of credit allowable under this subsection shall
exceed the taxpayer's tax for such year, the excess may be carried over
to the following year or years and may be deducted from the taxpayer's
tax for such year or years.
(7) If all or any part of the credit provided for under this
subsection was allowed or carried over from a prior taxable year or
years, a taxpayer shall reduce the allowable credit for additional
qualifying expenditures in a subsequent tax year by the amount of the
credit previously allowed or carried over; provided however that a
credit previously allowed or carried over from a prior taxable year or
years shall not be taken into account in determining the allowable
credit for the purchase and installation of a solar or wind energy
system in a subsequent principal residence.
(8) For the purpose of determining the amount of the actual
expenditure incurred in purchasing and installing a solar or wind energy
system, the amount of any federal, state or local grant received by the
taxpayer, which was used for the purchase and/or installation of such
system and which was not included in the gross income of the taxpayer,
shall not be taken into account.
* (9) Notwithstanding any other provision of law, if a credit is
allowed under this subsection for a renewable energy system with respect
to any property, the increase in the basis of such property which would
but for this subsection result from such expenditure shall be reduced by
the amount of the credit allowed.
* NB Applies to taxable years prior to December 31, 1986
* (9) Notwithstanding any other provision of law, if a credit is
allowed under this subsection for a renewable energy system with respect
to any property, the increase in the basis of such property which would
but for this subsection result from such expenditure shall be reduced by
the amount of the credit allowed. When the sale or other disposition of
such property results in the nonrecognition of gain under section one
thousand thirty-four of the internal revenue code, a like reduction
shall be made to the basis of the new residence, if such residence is
located within the state.
* NB Applies to taxable years beginning after December 31, 1986
(g-1) Solar energy system equipment credit. (1) General. An individual
taxpayer shall be allowed a credit against the tax imposed by this
article equal to twenty-five percent of qualified solar energy system
equipment expenditures. This credit shall not exceed three thousand
seven hundred fifty dollars for qualified solar energy equipment placed
in service before September first, two thousand six, and five thousand
dollars for qualified solar energy equipment placed in service on or
after September first, two thousand six.
(2) Qualified solar energy system equipment expenditures. (A) The term
"qualified solar energy system equipment expenditures" means
expenditures for the purchase of solar energy system equipment which is
installed in connection with residential property which is (i) located
in this state and (ii) which is used by the taxpayer as his or her
principal residence at the time the solar energy system equipment is
placed in service.
(B) Such qualified expenditures shall include expenditures for
materials, labor costs properly allocable to on-site preparation,
assembly and original installation, architectural and engineering
services, and designs and plans directly related to the construction or
installation of the solar electric generating equipment.
(C) Such qualified expenditures shall not include interest or other
finance charges.
(3) Solar energy system equipment. The term "solar energy system
equipment" shall mean an arrangement or combination of components
utilizing solar radiation, which, when installed in a residence,
produces energy designed to provide heating, cooling, hot water or
electricity for use in such residence. Such arrangement or components
shall not include equipment connected to solar energy system equipment
that is a component of part or parts of a non-solar energy system or
which uses any sort of recreational facility or equipment as a storage
medium. Solar energy system equipment that generates electricity for use
in a residence must conform to applicable requirements set forth in
section sixty-six-j of the public service law.
(4) Multiple taxpayers. Where solar energy system equipment is
purchased and installed in a principal residence shared by two or more
taxpayers, the amount of the credit allowable under this subsection for
each such taxpayer shall be prorated according to the percentage of the
total expenditure for such solar energy system equipment contributed by
each taxpayer.
(5) Grants. For purposes of determining the amount of the expenditure
incurred in purchasing and installing solar energy system equipment, the
amount of any federal, state or local grant received by the taxpayer,
which was used for the purchase and/or installation of such equipment
and which was not included in the federal gross income of the taxpayer,
shall not be included in the amount of such expenditures.
(6) When credit allowed. The credit provided for herein shall be
allowed with respect to the taxable year, commencing after nineteen
hundred ninety-seven, in which the solar energy system equipment is
placed in service.
(7) Carryover of credit. If the amount of the credit, and carryovers
of such credit, allowable under this subsection for any taxable year
shall exceed the taxpayer's tax for such year, such excess amount may be
carried over to the five taxable years next following the taxable year
with respect to which the credit is allowed and may be deducted from the
taxpayer's tax for such year or years.
(g-2) Fuel cell electric generating equipment credit. (1) General. An
individual taxpayer shall be allowed a credit against the tax imposed by
this article equal to twenty percent of qualified fuel cell electric
generating equipment expenditures. This credit shall not exceed one
thousand five hundred dollars per generating unit with respect to any
taxable year. The credit provided for herein shall be allowed with
respect to the taxable year in which the fuel cell electric generating
equipment is placed in service.
(2) Qualified fuel cell electric generating equipment expenditures.
(A) Qualified fuel cell electric generating equipment expenditures are
the costs, incurred on or after July first, two thousand five,
associated with the purchase of on-site electricity generation systems
utilizing proton exchange membrane fuel cells, providing a rated
baseload capacity of no less than one kilowatt and no more than one
hundred kilowatts of electricity, which are located in this state at the
time the qualified fuel cell electric generating equipment is placed in
service.
(B) Qualified fuel cell electric generating equipment expenditures
shall also include costs, incurred on or after July first, two thousand
five, for materials, labor for on-site preparation, assembly and
original installation, engineering services, designs and plans directly
related to construction or installation and utility compliance costs.
(C) Such qualified expenditures shall not include interest or other
finance charges.
(3) Multiple taxpayers. Where fuel cell electric generating equipment
is purchased and installed in a principal residence shared by two or
more taxpayers, the amount of the credit allowable under this subsection
for each such taxpayer shall be prorated according to the percentage of
the total expenditure for such fuel cell electric generating equipment
contributed by each taxpayer.
(4) Grants. For purposes of determining the amount of the expenditure
incurred in purchasing and installing fuel cell electric generating
equipment, the amount of any federal, state or local grant received by
the taxpayer, which was used for the purchase and/or installation of
such equipment and which was not included in the federal gross income of
the taxpayer, shall not be included in the amount of such expenditures.
(5) Carryover of credit. If the amount of the credit, and carryovers
of such credit, allowable under this subsection for any taxable year
shall exceed the taxpayer's tax for such year, such excess amount may be
carried over to the five taxable years next following the taxable year
with respect to which the credit is allowed and may be deducted from the
taxpayer's tax for such year or years.
(h) Research and development tax credit. * (1) For taxable years
commencing prior to January first, nineteen hundred eighty-seven, a
taxpayer shall be allowed a credit against the tax imposed by this
article after allowance of any other credit provided under this section
and any credits permitted under sections six hundred twenty, six hundred
twenty-one and six hundred forty of this article. The amount of the
credit shall be ten percent of the cost or other basis for federal
income tax purposes of tangible personal property, including buildings
and other structural components of buildings, described in paragraph two
of this subsection acquired, constructed or reconstructed, or erected
after June thirtieth, nineteen hundred eighty-two.
* NB Applies to taxable years prior to 1988
* (1) For taxable years commencing prior to January first, nineteen
hundred eighty-seven, a taxpayer shall be allowed a credit against the
tax imposed by this article after allowance of any other credit provided
under this section and any credits permitted under sections six hundred
twenty, six hundred twenty-one and six hundred thirty-five of this
article. The amount of the credit shall be ten percent of the cost or
other basis for federal income tax purposes of tangible personal
property, including buildings and other structural components of
buildings, described in paragraph two of this subsection acquired,
constructed or reconstructed, or erected after June thirtieth, nineteen
hundred eighty-two.
* NB Applies to taxable years beginning after 1987
* (2) A credit shall be allowed under this section with respect to
tangible personal property and other tangible property, including
buildings and structural components of buildings which are: depreciable
pursuant to section one hundred sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one hundred seventy-nine (d) of the internal
revenue code, have a situs in this state and are used or are 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.
* NB Applies to property to which the amendments made by section 201
of Public Law 99-514 apply
(3) A taxpayer shall not be allowed a credit under this subsection
with respect to any property described in paragraphs one and two of this
subsection, if such property qualifies for the modification allowed
under either paragraph three or paragraph four of subsection (g) of
section six hundred twelve whether or not such amount shall have been
subtracted, or if a credit is taken pursuant to subsection (a) of this
section. Provided, however, with respect to property which qualifies
under either clause (A), (B) or (C) of paragraph four of subsection (g)
because such property was ordered on or before December thirty-first,
nineteen hundred sixty-eight, but with respect to which no expenditure
has been paid or incurred at such date, the taxpayer may elect to
subtract the amount allowable under clause (A), (B) or (C) or may take
the credit provided by this subsection, but not both.
(4) A taxpayer shall not be allowed a credit under this subsection
with respect to tangible personal property and other tangible property,
including buildings and structural components of buildings, which it
leases to any other person or corporation. For purposes of the preceding
sentence, any contract or agreement to lease or rent or for a license to
use such property shall be considered a lease. Provided, however, in
determining whether a taxpayer shall be allowed a credit under this
subsection with respect to such property, any election made with respect
to such property pursuant to the provisions of paragraph eight of
subsection (f) of section one hundred sixty-eight of the internal
revenue code, as such paragraph was in effect for agreements entered
into prior to January first, nineteen hundred eighty-four, shall be
disregarded.
(5) If the amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
may be carried over to the following year or years and may be deducted
from the taxpayer's tax for such year or years but in no event shall
such credit be carried over to taxable years commencing on or after
January first, nineteen hundred ninety-four.
(6) * (A) With respect to property which is depreciable pursuant to
section one hundred sixty-seven of the internal revenue code but is not
subject to the provisions of section one hundred sixty-eight of such