There is a newer version of the New York Consolidated Laws
2006 New York Code - Credits Against Tax.
§ 1310. Credits against tax. (a) Credit to trust beneficiary receiving
accumulation distribution. A beneficiary of a trust who is subject to a
city personal income tax imposed pursuant to the authority of this
article and whose New York adjusted gross income under article
twenty-two of this chapter includes all or part of an accumulation
distribution by such trust, as defined in section six hundred sixty-five
of the internal revenue code, shall be allowed a credit against the tax
otherwise due under such city personal income tax for all or a
proportionate part of any tax paid by the trust under such tax or under
any prior local law of the city for any preceding taxable year which
would not have been payable if the trust had in fact made distributions
to its beneficiaries at the times and in the amounts specified in
section six hundred sixty-six of the internal revenue code. The credit
under this subsection shall not reduce the tax otherwise due from the
beneficiary under such city personal income tax to an amount less than
would have been due if the accumulation distribution or his part thereof
were excluded from his New York adjusted gross income as defined in
section six hundred twelve of this chapter.
(b) Credit for tax withheld. Wages upon which tax is required to be
withheld shall be taxable under a city personal income tax as if no
withholding were required, but any amount of tax actually deducted and
withheld under such tax in any calendar year shall be deemed to have
been paid to the state tax commission on behalf of the person from whom
withheld, and such person shall be credited with having paid that amount
of tax for the taxable year beginning in such calendar year. For a
taxable year of less than twelve months, the credit shall be made under
regulations of the state tax commission.
(c) Credit relating to net capital gain. For taxable years beginning
in nineteen hundred eighty-seven, a credit against the city personal
income tax determined in accordance with section thirteen hundred four
shall be allowed. The amount of the credit shall be one-half of one
percent of net capital gain includible in city adjusted gross income for
the taxable year. The credit allowed by this section shall not exceed
the tax determined in accordance with section thirteen hundred four,
reduced by the credits permitted under subsections (a) and (d) of this
section.
(d) Household credit. (1) For taxable years beginning after nineteen
hundred eighty-six, a credit against the city personal income tax
determined in accordance with section thirteen hundred four shall be
allowed. The credit, computed as described in paragraph two of this
subsection, shall not exceed the tax determined in accordance with
section thirteen hundred four reduced by the credit permitted under
subsection (a) of this section.
(2) (A) For any individual who is not married nor the head of a
household nor a surviving spouse, the amount of the credit shall be
determined in accordance with the following table:
If household gross The credit shall be:
income is:
For taxable years For taxable years
beginning after 1986 beginning after
and before 1996 1995
Not over $7,500 $15 $15
Over $7,500 but not
over $10,000 $10 $15
Over $10,000 but not
over $12,500 $ 0 $10
(B) For any husband and wife, head of household or surviving spouse,
the amount of the credit shall be determined by multiplying 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 by the credit factor for
the taxable year as specified in the following table:
If household gross The credit factor is:
income is:
For taxable years beginning in For taxable years
1987 1988 1989 through 1995 beginning after
1995
Not over $12,500 $30 $50 $50 $30
Over $12,500 but not
over $15,000 $20 $40 $50 $30
Over $15,000 but not
over $17,500 $10 $20 $25 $25
Over $17,500 but not
over $20,000 $ 0 $15 $15 $15
Over $20,000 but not
over $22,500 $ 0 $ 0 $ 0 $10
(3) For 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 city income tax returns are
filed. Provided, however, that a husband or wife who is required to file
a separate city 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.
(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 the number of months in the period
of residence. 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 the
number of months in the period of residence.
* (e) State school tax reduction credit. (1) For taxable years
beginning after nineteen hundred ninety-seven, a state school tax
reduction credit shall be allowed as provided in the following tables.
The credit shall be allowed against the taxes authorized by this article
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. For purposes
of this subsection, no credit shall be granted 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.
(2) Attained age of sixty-five. If the taxpayer has attained the age
of sixty-five on or before the close of the taxable year, for married
individuals filing joint returns and surviving spouses the credit shall
be one hundred twenty-five dollars. In the case of an unmarried
individual, a head of a household or a married individual filing a
separate return, the credit shall be sixty-two dollars and fifty cents.
(3) Attained age less than sixty-five. If the taxpayer has not
attained the age of sixty-five on or before the close of the taxable
year, the credit shall be determined under this paragraph.
(A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
For taxable years beginning: The credit shall be:
in 1998 $12
in 1999 $35
in 2000 $85
after 2000 $125
(B) All others. In the case of an unmarried individual, a head of a
household or a married individual filing a separate return:
For taxable years beginning: The credit shall be:
in 1998 $12
in 1999 $39
in 2000 $45
after 2000 $62.50
(4) Husband and wife who make a joint return. If a husband and wife
make a single return jointly, the credit under this subsection shall be
determined under paragraph two of this subsection, if either of them has
attained the age of sixty-five on or before the close of the taxable
year.
(5) Part-year residents. If a taxpayer changes status during the
taxable year from resident to nonresident, or from nonresident to
resident, the state school tax reduction credit shall be prorated
according to the number of months in the period of residence.
* NB There are 2 sub§ (e)'s
* (e) Credit for city of New York unincorporated business tax paid.
(1) Notwithstanding any other provision of law to the contrary, any
city imposing a tax under this article is hereby authorized and
empowered to adopt and amend local laws for any taxable year beginning
after nineteen hundred ninety-seven, as specified in such local laws,
providing for a credit as provided in paragraph two of this subsection
against the taxes imposed pursuant to the authority granted by section
thirteen hundred one of this article on the city taxable income
determined pursuant to sections thirteen hundred four, thirteen hundred
four-A and thirteen hundred four-B of this article and on the ordinary
income portion of a lump sum distribution determined pursuant to section
thirteen hundred one-B of this article, to any city resident individual,
estate or trust whose city adjusted gross income includes income, gain,
loss or deductions from one or more unincorporated businesses conducted
by such city resident individual, estate or trust on which a tax is
imposed by chapter five of title eleven of the administrative code of
the city of New York, or a distributive share of income, gain, loss and
deductions of, or guaranteed payments from, one or more partnerships on
which a tax is imposed by such chapter. Any such local laws may contain
provisions to ensure that such credit shall not reduce the tax paid by a
city resident below that which would be paid by such city resident if
such city resident were a city nonresident.
(2) (A) Subject to the limitation set forth in subparagraph (B) of
this paragraph, the credit allowed to a taxpayer for a taxable year
shall be equal to all or a portion of the amount determined in paragraph
three of this subsection, provided, however, such portion shall not be
less than:
(i) If the city taxable income is forty-two thousand dollars or less,
sixty-five percent of the amount determined in paragraph three of this
subsection.
(ii) If the city taxable income is greater than forty-two thousand
dollars but not greater than one hundred forty-two thousand dollars, a
percentage of the amount determined in paragraph three of this
subsection to be determined by subtracting from sixty-five percent, one
tenth of a percentage point (.001) for every increment of two hundred
dollars, or fractional part thereof, of city taxable income in excess of
forty-two thousand dollars.
(iii) If the city taxable income is greater than one hundred forty-two
thousand dollars, fifteen percent of the amount determined in paragraph
three of this subsection.
(B) Notwithstanding anything to the contrary in subparagraph (A) of
this paragraph, the credit allowed to a taxpayer for a taxable year
under this subsection shall not exceed the sum of the taxes that would
otherwise be imposed on such taxpayer for such taxable year pursuant to
the authority granted by section thirteen hundred one of this article on
the city taxable income determined pursuant to sections thirteen hundred
four, thirteen hundred four-A and thirteen hundred four-B of this
article and on the ordinary income portion of a lump sum distribution
determined pursuant to section thirteen hundred one-B of this article,
reduced by the credits allowed to such taxpayer pursuant to subsections
(a), (c) and (d) of this section.
(3) Subject to the provisions of subparagraph (C) of this paragraph,
the amount determined in this paragraph is the sum of:
(A) for each unincorporated business conducted by the taxpayer, the
tax imposed by chapter five of title eleven of the administrative code
of the city of New York on such unincorporated business for its taxable
year ending with the taxable year of the taxpayer and paid by the
unincorporated business; and
(B) for each unincorporated business in which the taxpayer is a
partner, the product of:
* (i) the sum of (I) the tax imposed by chapter five of title eleven
of the administrative code of the city of New York on such
unincorporated business for its taxable year ending within or with the
taxable year of the partner and paid by the unincorporated business and
(II) the sum of the amount of any credit or credits taken by the
unincorporated business under subdivision (j) of section 11-503 of the
administrative code of the city of New York and the amount of any credit
authorized by subdivision (b) of section twelve hundred one-a of this
chapter to the extent that the credit authorized by such subdivision (b)
is not treated as an overpayment of tax paid by such unincorporated
business for its taxable year ending within or with the taxable year of
the partner; and
* NB Effective until August 20, 2008
* (i) the sum of (I) the tax imposed by chapter five of title eleven
of the administrative code of the city of New York on such
unincorporated business for its taxable year ending within or with the
taxable year of the partner and paid by the unincorporated business and
(II) the amount of any credit or credits taken by the unincorporated
business under subdivision (j) of section 11-503 of the administrative
code of the city of New York for its taxable year ending within or with
the taxable year of the partner; and
* NB Effective August 20, 2008
(ii) a fraction, the numerator of which is the net total of the
partner's distributive share of income, gain, loss and deductions of,
and guaranteed payments from, the unincorporated business for such
taxable year, and the denominator of which is the sum, for such taxable
year, of the net total distributive shares of income, gain, loss and
deductions of, and guaranteed payments to, all partners in the
unincorporated business for whom or which such net total (as separately
determined for each partner) is greater than zero.
(C) For a taxpayer that changes its status from a city resident to a
city nonresident or from a city nonresident to a city resident during
the taxable year:
(i) the amount determined in subparagraph (A) of this paragraph shall
be, with respect to each unincorporated business conducted by the
taxpayer, the tax imposed by chapter five of title eleven of the
administrative code of the city of New York on such unincorporated
business for its taxable year ending with the taxable year of the
taxpayer and paid by the unincorporated business, multiplied by a
fraction, the numerator of which is that portion of the income, gain,
loss and deductions of the unincorporated business included in the
taxpayer's city adjusted gross income for the portion of the taxable
year during which the taxpayer was a city resident, and the denominator
of which is the total, for such taxable year, of the income, gain, loss
and deductions of the unincorporated business, and
(ii) the amount determined in clause (ii) of subparagraph (B) of this
paragraph shall be a fraction, the numerator of which is that portion of
the taxpayer's net total distributive share of income, gain, loss and
deductions of, and that portion of guaranteed payments from, the
unincorporated business included in the taxpayer's city adjusted gross
income for the portion of the taxable year during which the taxpayer was
a city resident, and the denominator of which is the sum, for such
taxable year, of the net total distributive shares of income, gain, loss
and deductions of, and guaranteed payments to, all partners in the
unincorporated business, for whom or which such net total (as separately
determined for each partner) is greater than zero.
(4) No local law enacted pursuant to the authority of this subsection
shall be effective unless a certified copy of such local law is mailed
by registered mail to the state department of taxation and finance at
its office in Albany at least fifteen days prior to the date it is to
become effective. However, the state department of taxation and finance
may waive and reduce such fifteen-day minimum notice requirement to a
mailing of such certified copy by registered mail within such period if
it deems such action to be consistent with its duties under this
article.
* NB There are 2 sub§ (e)'s
(f) Earned income tax credit. (1) Notwithstanding any other provision
of law to the contrary, any city having a population of one million or
more, acting through its local legislative body, is hereby authorized
and empowered to adopt and amend local laws granting in any such city,
for taxable years beginning after two thousand three, a credit against
the city personal income tax equal to five percent of the earned income
credit allowed under section thirty-two of the internal revenue code for
the same taxable year.
(2) In the case of a resident taxpayer, the credit provided by local
law adopted pursuant to this subsection shall be allowed against the
taxes authorized 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) If a taxpayer changes his or her status during the taxable year
from city resident to city nonresident, or from city nonresident to city
resident, the credit determined under this subsection shall be limited
to the amount determined by multiplying the amount of such credit by a
fraction, the numerator of which is such taxpayer's city adjusted gross
income, as defined in chapter seventeen of title eleven of the
administrative code of the city of New York, for the period of
residence, and the denominator of which is such taxpayer's city adjusted
gross income determined as if he or she were a city resident for the
entire taxable year. City adjusted gross income shall be adjusted as
provided in section 11-1754 of the administrative code of the city of
New York. The credit as so limited shall be applied as provided in
paragraph two of this subsection.
(4) Subject to the provisions of paragraph three of this subsection,
in the case of a husband and wife who file a joint return, but who are
required to determine their city personal income taxes separately, the
credit authorized pursuant to this subsection may be applied against the
tax of either or divided between them as they may elect. 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 city personal income tax return.
(5) A local law enacted pursuant to this subsection shall be
applicable with respect to any taxable year only if it has been enacted
on or before the date that is forty-five days after the effective date
of this subsection and for taxable years subsequent to taxable year two
thousand four, on or before July thirty-first of such taxable year. A
certified copy of such local law shall be mailed by registered mail to
the state department of taxation and finance at its office in Albany
within fifteen days of its enactment. However, the state department of
taxation and finance may allow additional time for such certified copy
to be mailed if it deems such action to be consistent with its duties
under this article.
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