There is a newer version of the New York Consolidated Laws
2006 New York Code - Credits.
§ 1511. Credits. (a) Credit for certain other premium taxes. In
computing the tax imposed by this article there shall be allowed a
credit for the amount of taxes paid or accrued by the taxpayer during
the taxable year on premiums for any insurance against loss or damage by
fire under section nine thousand one hundred four or section nine
thousand one hundred five of the insurance law or under the charters of
the cities of Buffalo or New York; provided, however, that any unused
credit remaining may not be carried over to any other year.
(b) Credit against reciprocal taxes imposed by this state. In
assessing taxes under the reciprocal provisions of section one thousand
one hundred twelve of the insurance law, credit shall be allowed for any
taxes paid under this article.
(c) Credit for certain taxes payable to other jurisdictions. (1) If,
by the laws of any state other than this state, or by the action of any
public official of such other state, any insurer organized or domiciled
in this state, or the duly authorized agents thereof, shall be required
to pay taxes for the privilege of doing business in such other state and
such amounts are imposed or assessed because the taxes which are or
would be imposed under this chapter and the insurance law upon insurers
organized or domiciled in such other state are greater than those
required of insurers organized or domiciled in this state by the laws of
such other state for the privilege of doing business therein, then and
in every case, to the extent such amounts are legally due to such other
states, an insurer organized or domiciled in this state may claim a
credit, as hereinafter provided, against the tax payable pursuant to
this article of a sum not to exceed ninety per cent of such amount.
Provided, such credit shall in no event be greater than the tax payable
pursuant to this article during the taxable year with respect to which
such amount has been imposed or assessed by such other states. For
purposes of this section, the term "taxes for the privilege of doing
business" shall include, but shall not be limited to, a tax on or
measured by income.
(2) A credit may be claimed for the amount computed as provided in
paragraph one of this subdivision, on the return required pursuant to
section fifteen hundred fifteen, against the tax imposed pursuant to
this article for the taxable year in which such amount shall be paid. To
the extent such credit shall exceed the amount payable pursuant to
section fifteen hundred sixteen of this article for the taxable year
against which the credit is allowed, the difference between the amount
allowed as a credit and the tax payable pursuant to section fifteen
hundred sixteen shall be credited or refunded by the tax commission,
without interest.
(3) The credit allowed pursuant to this subdivision shall be in
addition to the credits allowed pursuant to subdivisions (a) and (b) of
this section.
(4) The superintendent of insurance and the tax commission shall
examine claims for credit or refund made under this subdivision. If the
superintendent of insurance or the tax commission shall determine that
any amount for which a credit shall have been claimed was not legally
due to another state or that an error exists in the amount of credit
shown on such return, or the amount claimed as a refund or refunded, the
tax commission shall take appropriate action under this chapter for the
assessment and collection of any tax resulting from the disallowance of
a claim for credit made under this subdivision or to disallow any such
claim for refund.
(5) Any taxpayer which commences an action or proceeding in any state
or federal court to contest the validity of any assessment made against
the taxpayer by another state pursuant to a statute similar to section
one thousand one hundred twelve of the insurance law or any other
statute or regulation of another state under which retaliatory taxes or
other charges are imposed or assessed against such taxpayer shall give
the state tax commission and the superintendent of insurance written
notice of the commencement of such action or proceeding within five days
after such commencement.
(d) Credit relating to eligible business facilities. (1) On or after
April first, nineteen hundred eighty-three, for taxable years beginning
before January first, two thousand, a credit against the tax imposed by
this article shall be allowed only to an insurance corporation owning or
operating an eligible business facility where such corporation has
received a certificate of eligibility for tax credits, or a renewal or
extension thereof, for such facility from the New York state job
incentive board prior to April first, nineteen hundred eighty-three, or
has received a certificate of eligibility for tax credits, or a renewal
or extension thereof, for such facility from the state tax commission
subsequent to such date pursuant to paragraph eight of this subdivision,
and only with respect to such facility, to be computed as hereinafter
provided.
(2) The amount of the credit allowable in any taxable year shall be
the sum determined by multiplying the tax otherwise due by a percentage
to be determined by:
(A) ascertaining the percentage which the total of eligible property
values during the taxable year, as defined in paragraph four of this
subdivision, bears to the average value of all real and tangible
personal property connected with the insurance corporation and located
within the state, during such year. For the purposes of this
subparagraph only, real and tangible personal property connected with
the insurance corporation shall include not only such property owned by
the insurance corporation but also property rented to it, and the value
of rented property shall be deemed to be eight times the net annual
rental rate, that is, the annual rental rate paid by the insurance
corporation less any annual rental rate received by it from subrentals.
(B) ascertaining the percentage which the total wages, salaries and
other personal service compensation during the taxable year to
employees, except general executive officers, serving in jobs created or
retained in an eligible area (as the term "eligible area" was defined by
section one hundred fifteen of the commerce law as it existed on March
thirty-first, nineteen hundred eighty-three) by such business facility,
bears to the total wages, salaries and other personal service
compensation during such taxable year of such insurance corporation's
employees within the state, except general executive officers.
(C) adding together the percentages so determined and dividing the
result by two; provided, however, that if no wages, salaries or other
personal service compensation was paid or incurred by the insurance
corporation during such year to employees in this state, subparagraph
(B) of this paragraph shall be disregarded and the amount of credit
allowable shall be determined by multiplying the tax otherwise due by
the percentage specified in subparagraph (A) of this paragraph.
(3) In no event shall the credit herein provided for be allowed in an
amount which will reduce the tax payable to less than the minimum fixed
by paragraph four of subdivision (a) of section fifteen hundred two of
such chapter.
(4) (A) Eligible property values, for the purposes of this subsection,
shall include such part of the value of depreciable real and tangible
personal property included in an eligible business facility as
represents:
(i) expenditures paid or incurred by the taxpayer for capital
improvements consisting of the construction, reconstruction, erection or
improvement of real property included in an eligible business facility,
which construction, reconstruction, erection or improvement was
commenced on or after July first, nineteen hundred sixty-eight and
expenditures paid or incurred by the taxpayer for the acquisition of
real property, included in an eligible business facility, on or after
January first, nineteen hundred seventy-seven.
(ii) in the case of real property leased by the taxpayer from another
party, eight times the portion of the net annual rental rate
attributable to such expenditures paid or incurred by the lessor for
such construction, reconstruction, erection or improvement commenced on
or after July first, nineteen hundred sixty-eight and, with respect to
real property leased by the taxpayer from another party on or after
January first, nineteen hundred seventy-seven, eight times any remaining
portion of the net annual rental rate.
(iii) expenditures paid or incurred by the taxpayer for the purchase
of tangible personal property, other than vehicles, included in an
eligible business facility, provided such property was purchased on or
after July first, nineteen hundred sixty-eight; and
(iv) in the case of tangible personal property, other than vehicles,
leased by the taxpayer from another party and included in an eligible
business facility, eight times the net annual rental rate, provided the
period for which such property was leased by the taxpayer began on or
after July first, nineteen hundred sixty-eight.
(B) Provided, however, eligible property values for purposes of this
subsection shall not include expenditures paid or incurred more than one
year prior to the filing of an application for a certificate of
eligibility pursuant to section one hundred nineteen of the commerce
law, as such section existed on March thirty-first, nineteen hundred
eighty-three.
(5) The total of all credits allowed pursuant to this subdivision in
any taxable year or years with reference to any eligible business
facility shall not exceed the total eligible property values included in
such facility.
(6) If a credit is allowed for any taxable year as herein provided on
the basis of a certificate of eligibility, and if such certificate is
revoked or modified, the taxpayer shall report such revocation or
modification in its report for the taxable year during which it occurs
and the tax commission shall recompute such credit and may assess any
additional tax resulting from such recomputation within the time fixed
by paragraph nine of subsection (c) of section ten hundred eighty-three
of this chapter.
(7) If a business facility owned or operated by an insurance
corporation shall be an eligible business facility for only part of a
taxable year, the credit allowed by this subdivision shall be prorated
according to the period such facility was an eligible business facility,
and if the total of the eligible property values shall have changed
during any taxable year, a pro-rata adjustment shall be made in
computing such credit.
(8) The state tax commission shall be empowered, on or after April
first, nineteen hundred eighty-three, to issue a certificate of
eligibility for tax credits to a taxpayer for an eligible business
facility with regard to which such taxpayer has, prior to July first,
nineteen hundred eighty-three, received from the New York state job
incentive board initial approval of an application for such certificate
by such board as evidenced by the minutes of the meeting of the board at
which such application was approved, or a letter of intent authorized by
section 102.4 of part one hundred two of title five of the codes, rules
and regulations of the state of New York regarding such certificate of
eligibility and to renew, extend, revoke or modify a certificate of
eligibility for tax credits, pursuant to section one hundred twenty of
the commerce law as such section existed on March thirty-first, nineteen
hundred eighty-three.
(9) For purposes of the requirement for eligibility for the credit
allowed under this subdivision that a business facility create or retain
not less than five jobs as provided in subdivision (c) of section one
hundred eighteen of the commerce law as such section existed on March
thirty-first, nineteen hundred eighty-three, a business facility shall
have (i) created not less than five jobs only if the number of jobs for
the taxable year exceeds the number of jobs at the time of the
commencement of the project as stated on its application for initial
approval by five or more; or (ii) retained not less than five jobs only
if initial approval was based on the retention of five or more jobs and
(A) the number of jobs for the taxable year is at least equal to the
number of jobs at the time of the commencement of the project as stated
on its application for initial approval or (B) where initial approval
was based on the retention of fewer jobs than the number of jobs at the
time of the commencement of the project as stated on its application for
initial approval, the number of jobs for the taxable year is at least
equal to the number approved for retention. For purposes of this
paragraph, the phrase "initial approval was based on the retention of
five or more jobs" shall mean that such initial approval was given by
the job incentive board to an applicant that had not stated in its
application for initial approval that it would increase the number of
jobs at its facility by at least five.
(e) Mortgage recording tax credit. (1) A taxpayer shall be allowed a
credit, to be credited against the tax imposed by 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.
(2) In no event shall the credit herein provided for be allowed in an
amount which will reduce the tax payable to less than the minimum tax
fixed by paragraph four of subdivision (a) of section fifteen hundred
two of this article or section fifteen hundred two-a of this article,
whichever is applicable. If, however, the amount of credit allowable
under this subdivision for any taxable year reduces the tax to such
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.
(f) Credit relating to life insurance guaranty corporation
assessments. A credit shall be allowed against the tax imposed pursuant
to this article (other than section fifteen hundred five-a of this
article), for a portion of the assessments paid by a taxpayer pursuant
to article seventy-five or section seven thousand seven hundred nine of
the insurance law. The credit shall be determined in accordance with the
following provisions.
(1) The maximum authorized credit for each taxpayer shall be
determined as provided in subsection (a) of section seven thousand seven
hundred twelve of the insurance law.
(2) Thirty-three and one-third per centum of the maximum authorized
credit for the second calendar year preceding the taxable year, plus any
amount carried forward under subparagraph (C) of paragraph three of this
subdivision or paragraph four of this subdivision, shall be allowed as a
credit under this subdivision for such taxable year, and thirty-three
and one third per centum of such maximum authorized credit for such
second preceding calendar year, plus any amount carried forward under
subparagraph (C) of this subdivision or paragraph four of this
subdivision, shall be allowed in each of the two taxable years following
such taxable year.
(3) (A) For each calendar year for which a credit has been authorized
pursuant to section seven thousand seven hundred twelve of the insurance
law, the commissioner of taxation and finance shall determine the total
tax liability of all life insurance corporations under this article,
other than under section fifteen hundred five-a of this article, before
the application of any credits allowed pursuant to this section, for
taxable years beginning in such calendar year. Such total tax liability
shall be published in the state register on or before the thirtieth day
of September of the next succeeding calendar year.
(B) The credit allowed under paragraph two of this subdivision for
each taxpayer shall not exceed the product of (x) and (y) where (x) is a
fraction, the numerator of which is the sum of the gross assessments
paid by the particular taxpayer during the calendar year for which the
credit has been authorized and the denominator of which is the sum of
the gross assessments paid by all companies during such year, both as
shown in the most recent statement of operations furnished by the
superintendent of insurance under subsection (a) of section seven
thousand seven hundred twelve of the insurance law and both the
numerator and denominator being reduced, as appropriate, by any refunds
or reimbursements and (y) is the greater of (i) forty per centum of the
total tax liability published by the commissioner pursuant to
subparagraph (A) of this paragraph and (ii) forty million dollars.
(C) The amount by which the allowable credit computed without
reference to the limitation contained in subparagraph (B) of this
paragraph exceeds the allowable credit for such taxable year shall be
carried forward as a credit under paragraph two of this subdivision.
(D) With respect to estimated taxes payable under section fifteen
hundred fourteen of this article any increase in estimated taxes due to
the limitation imposed by this paragraph shall be deemed timely paid if
paid on or before the fifteenth day of December next following the date
specified in subparagraph (A) of this paragraph.
(4) If for any taxable year the credits allowable under paragraph two
of this subdivision determined without regard to this paragraph exceed
the taxpayer's liability for taxes under this article for the taxable
year after the allowance of all other credits under this section, then
the sum of two hundred fifty dollars and the amount by which such
credits under this subdivision exceed such tax liability shall be
carried forward as a credit under paragraph two of this subdivision for
the taxable year next following.
(5) No credit allowed pursuant to this subdivision shall reduce the
tax payable by any taxpayer under this article for any taxable year to
an amount less than the minimum tax fixed by paragraph four of
subdivision (a) of section fifteen hundred two of this article or
section fifteen hundred two-a of this article, whichever is applicable.
(g) Empire zone wage tax credit. (1) A taxpayer shall be allowed a
credit, to be computed as hereinafter provided, against the tax imposed
by this article where the taxpayer has been certified pursuant to
article eighteen-B of the general municipal law. The amount of the
credit shall be as prescribed in paragraph four hereof.
(2) For purposes of this subdivision, the following terms shall have
the following meanings: (A) "Empire zone wages" means wages paid by the
taxpayer for full-time employment, other than to general executive
officers, during the taxable year, in an area designated or previously
designated as an empire zone or zone equivalent area pursuant to article
eighteen-B of the general municipal law, where such employment is in a
job created in the area (i) during the period of its designation as an
empire zone, (ii) within four years of the expiration of such
designation, or (iii) during the ten year period immediately following
the date of designation as a zone equivalent area, provided, however,
that if the taxpayer's certification under article eighteen-B of the
general municipal law is revoked with respect to an empire zone or zone
equivalent area, any wages paid by the taxpayer, on or after the
effective date of such decertification, for employment in such zone
shall not constitute empire zone wages.
(B) "Targeted employee" means a New York resident who receives empire
zone wages and who is (i) an eligible individual under the provision of
the targeted jobs tax credit (section fifty-one of the internal revenue
code), (ii) eligible for benefits under the provisions of the workforce
investment act as a dislocated worker or a low-income individual (P.L.
105-220, as amended), (iii) a recipient of public assistance benefits,
(iv) an individual whose income is below the most recently established
poverty rate promulgated by the United States department of commerce, or
a member of a family whose family income is below the most recently
established poverty rate promulgated by the appropriate federal agency
or (v) an honorably discharged member of any branch of the armed forces
of the United States.
An individual who satisfies the criteria set forth in clause (i),
(ii), (iv) or (v) at the time of initial employment in the job with
respect to which the credit is claimed, or who satisfies the criterion
set forth in clause (iii) at such time or at any time within the
previous two years, shall be a targeted employee so long as such
individual continues to receive empire zone wages.
(C) "Average number of individuals, excluding general executive
officers, employed full-time" shall be computed by ascertaining the
number of such individuals 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 during each taxable year or other
applicable period, by adding together the number of such individuals
ascertained on each of such dates and dividing the sum so obtained by
the number of such dates occurring within such taxable year or other
applicable period.
(3) The credit provided for herein shall be allowed only where the
average number of individuals, excluding general executive officers,
employed full-time by the taxpayer in (i) the state and, (ii) the empire
zone or area previously constituting such zone or zone equivalent area,
during the taxable year exceeds the average number of such individuals
employed full-time by the taxpayer in (i) the state and (ii) such zone
or area subsequently or previously constituting such zone or such zone
equivalent area, respectively, during the four years immediately
preceding the first taxable year in which the credit is claimed with
respect to such zone or area. Where the taxpayer provided full-time
employment within (i) the state or (ii) such zone or area during only a
portion of such four-year period, then for purposes of this paragraph
the term "four years" shall be deemed to refer instead to such portion,
if any.
The credit shall be allowed only with respect to the first taxable
year during which payments of empire zone wages are made and the
conditions set forth in this paragraph are satisfied, and with respect
to each of the four taxable years next following (but only, with respect
to each of such years, if such conditions are satisfied), in accordance
with paragraph four of this subdivision. Subsequent certifications of
the taxpayer pursuant to article eighteen-B of the general municipal
law, at the same or a different location in the same empire zone or zone
equivalent area or at a location in a different empire zone or zone
equivalent area, shall not extend the five taxable year time limitation
on the allowance of the credit set forth in the preceding sentence.
Provided, further, however, that no credit shall be allowed with respect
to any taxable year beginning more than four years following the taxable
year in which designation as an empire zone expired or more than ten
years after the designation as a zone equivalent area.
(4) The amount of the credit shall equal the sum of
(A) the product of three thousand dollars and the average number of
individuals (excluding general executive officers) employed full-time by
the taxpayer, computed pursuant to the provisions of subparagraph (C) of
paragraph two of this subdivision, who (i) received empire zone wages
for more than half of the taxable year,
(ii) received, with respect to more than half of the period of
employment by the taxpayer during the taxable year, an hourly wage which
was at least one hundred thirty-five percent of the minimum wage
specified in section six hundred fifty-two of the labor law, and
(iii) are targeted employees; and
(B) the product of fifteen hundred dollars and the average number of
individuals (excluding general executive officers and individuals
described in subparagraph (A) of this paragraph) employed full-time by
the taxpayer, computed pursuant to the provisions of subparagraph (C) of
paragraph two of this subdivision, who received empire zone wages for
more than half of the taxable year.
(C) For purposes of calculating the amount of the credit, individuals
employed within an empire zone or zone equivalent area within the
immediately preceding sixty months by a related person, as such term is
defined in subparagraph (c) of paragraph three of subsection (b) of
section four hundred sixty-five of the internal revenue code, shall not
be included in the average number of individuals described in
subparagraph (A) or subparagraph (B) of this paragraph, unless such
related person was never allowed a credit under this subdivision with
respect to such employees. For the purposes of this subparagraph, a
"related person" shall include an entity which would have qualified as a
"related person" to the taxpayer if it had not been dissolved,
liquidated, merged with another entity or otherwise ceased to exist or
operate.
(D) If a taxpayer is certified in an empire zone designated under
subdivision (a) or (d) of section nine hundred fifty-eight of the
general municipal law, the dollar amounts specified under subparagraph
(A) or (B) of this paragraph shall be increased by five hundred dollars
for each qualifying individual under such subparagraph who received,
during the taxable year, wages in excess of forty thousand dollars.
Provided, further, however, that the credit provided for herein with
respect to the taxable year, and carryovers of such credit to the
taxable year, deducted from the tax otherwise due, may not, in the
aggregate, exceed fifty percent of (i) in the case of taxpayers subject
to tax under subdivision (b) of section fifteen hundred ten of this
article, the lesser of (I) the limitation on tax computed pursuant to
subdivision (a) of section fifteen hundred five, or (II) the greater of
the sum of the taxes imposed under sections fifteen hundred one and
fifteen hundred ten or the amount of tax computed pursuant to
subdivision (b) of section fifteen hundred five, or (ii) for all other
insurance corporations, the tax imposed under section fifteen hundred
two-a of this article, computed without regard to any credit provided
for under this article.
(5) The credit or carryovers of such credit allowed under this
subdivision for any taxable year shall not, in the aggregate, reduce the
tax due for such year to less than the minimum tax fixed by paragraph
four of subdivision (a) of section fifteen hundred two of this article
or by section fifteen hundred two-a of this article, whichever is
applicable. However, if the amount of credit or carryovers of such
credit, or both, allowed under this subdivision for any taxable year
reduces the tax to such amount, or if any part of the credit or
carryovers of such credit may not be deducted from the tax otherwise due
by reason of the final sentence in paragraph four hereof, any amount of
credit or carryovers of such credit thus 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.
(h) Empire zone capital credit. (1) A taxpayer shall be allowed a
credit against the tax imposed by this article. The amount of the credit
shall be equal to twenty-five percent of the sum of the following
investments and contributions made during the taxable year and certified
by the commissioner of economic development: (A) for taxable years
beginning before January first, two thousand five, qualified investments
made in, or contributions in the form of donations made to, one or more
empire zone capital corporations established pursuant to section nine
hundred sixty-four of the general municipal law prior to January first,
two thousand five, (B) qualified investments in certified zone
businesses which during the twelve month period immediately preceding
the month in which such investment is made employed full-time within the
state an average number of individuals, excluding general executive
officers, of two hundred fifty or fewer, computed pursuant to the
provisions of subparagraph (C) of paragraph two of subsection (g) of
this section, except for investments made by or on behalf of an owner of
the business, including, but not limited to, a stockholder, partner or
sole proprietor, or any related person, as defined in subparagraph (C)
of paragraph three of subsection (b) of section four hundred sixty-five
of the internal revenue code, and (C) contributions of money to
community development projects as defined in regulations promulgated by
the commissioner of economic development. "Qualified investments" means
the contribution of property to a corporation in exchange for original
issue capital stock or other ownership interest, the contribution of
property to a partnership in exchange for an interest in the
partnership, and similar contributions in the case of a business entity
not in corporate or partnership form in exchange for an ownership
interest in such entity. The total amount of credit allowable to a
taxpayer under this provision for all years, taken in the aggregate,
shall not exceed three hundred thousand dollars, and shall not exceed
one hundred thousand dollars with respect to the investments and
contributions described in each of subparagraphs (A), (B) and (C) of
this paragraph.
(2) The credit and carryover of such credit allowed under this
subdivision for any taxable year shall not, in the aggregate, reduce the
tax due for such year to less than the minimum fixed by paragraph four
of subdivision (a) of section fifteen hundred two of this article or by
section fifteen hundred two-a of this article, whichever is applicable.
However, if the amount of credit or carryovers of such credit, or both,
allowed under this subdivision for any taxable year reduces the tax to
such amount, or if any part of the credit or carryovers of such credit
may not be deducted from the tax otherwise due by reason of the final
sentence of this paragraph, any amount of credit or carryovers of such
credit thus not deductible in such taxable year may be carried over to
the following year or years and may be deducted from the tax for such
year or years. In addition, the amount of such credit, and carryovers of
such credit to the taxable year, deducted from the tax otherwise due may
not, in the aggregate, exceed fifty percent of (i) in the case of
taxpayers subject to tax under subdivision (b) of section fifteen
hundred ten of this article, the lesser of (I) the limitation on tax
computed pursuant to subdivision (a) of section fifteen hundred five, or
(II) the greater of the sum of the taxes imposed under sections fifteen
hundred one and fifteen hundred ten or the amount of tax computed
pursuant to subdivision (b) of section fifteen hundred five, or (ii) for
all other insurance corporations, the tax imposed under section fifteen
hundred two-a of this article, computed without regard to any credit
provided for under this article.
(3) Where the stock, partnership interest or other ownership interest
arising from a qualified investment as described in subparagraphs (A)
and (B) of paragraph one of this subdivision is disposed of, the
taxpayer's entire net income shall be computed, pursuant to regulations
promulgated by the commissioner, so as to properly reflect the reduced
cost thereof arising from the application of the credit provided for
herein.
(4)(A) Where a taxpayer sells, transfers or otherwise disposes of
corporate stock, a partnership interest or other ownership interest
arising from the making of a qualified investment which was the basis,
in whole or in part, for the allowance of the credit provided for under
this subdivision, or where a contribution or investment which was the
basis for such allowance is in any manner, in whole or in part,
recovered by such taxpayer, and such disposition or recovery occurs
during the taxable year or within thirty-six months from the close of
the taxable year with respect to which such credit is allowed,
subparagraph (B) of this paragraph shall apply.
(B) The taxpayer shall add back with respect to the taxable year in
which the disposition or recovery described in subparagraph (A) of this
paragraph occurred the required portion of the credit originally
allowed.
(C) The required portion of the credit originally allowed shall be the
product of (i) the portion of such credit attributable to the property
disposed of or the payment or contribution recovered and (ii) the
applicable percentage.
(D) The applicable percentage shall be:
(i) one hundred percent, if the disposition or recovery occurs within
the taxable year with respect to which the credit is allowed or within
twelve months of the end of such taxable year,
(ii) sixty-seven percent, if the disposition or recovery occurs more
than twelve but not more than twenty-four months after the end of the
taxable year with respect to which the credit is allowed, or
(iii) thirty-three percent, if the disposition or recovery occurs more
than twenty-four but not more than thirty-six months after the end of
the taxable year with respect to which the credit is allowed.
(i) Credit for certain other taxes payable to other jurisdictions. (1)
If, by the laws of any state other than this state, or by the action of
any public official of such other state, an insurer organized or
domiciled in this state, or the duly authorized agents thereof, shall be
required to pay taxes for the privilege of doing business in such other
state, which taxes are imposed or assessed because of amounts imposed
upon and required to be paid by insurers organized or domiciled in such
other state pursuant to section twenty-eight hundred seven-t of the
public health law, then and in every case, to the extent such taxes are
legally due to such other state, such insurer organized or domiciled in
this state may claim a credit, as hereinafter provided, against the tax
payable pursuant to this article of a sum not to exceed ninety per cent
of such amount. Provided, such credit shall in no event be greater than
the tax payable pursuant to this article during the taxable year with
respect to which such taxes have been imposed or assessed by such other
state. For purposes of this section, the term "taxes for the privilege
of doing business" shall include, but shall not be limited to, a tax on
or measured by income.
(2) A credit may be claimed for the amount computed as provided in
paragraph one of this subdivision, on the return required pursuant to
section fifteen hundred fifteen, against the tax imposed pursuant to
this article for the taxable year in which such amount shall be paid. To
the extent such credit shall exceed the amount payable pursuant to
section fifteen hundred sixteen for the taxable year against which the
credit is allowed, the difference between the amount allowed as a credit
and the tax payable pursuant to section fifteen hundred sixteen shall be
credited or refunded by the commissioner, without interest.
(3) The credit allowed pursuant to this subdivision shall be in
addition to the credits allowed pursuant to subdivisions (a), (b) and
(c) of this section.
(4) The superintendent of insurance and the commissioner shall examine
claims for credit or refund made under this subdivision. If the
superintendent of insurance or the commissioner shall determine that any
tax for which a credit shall have been claimed was not legally due to
another state or that an error exists in the amount of credit shown on
such return or in the amount claimed as a refund or refunded, the
commissioner shall take appropriate action under this chapter for the
assessment and collection of any tax resulting from the disallowance of
a claim for credit made under this subdivision or to disallow any such
claim for refund.
(5) Any taxpayer which commences an action or proceeding in any state
or federal court to contest the validity of any assessment made against
the taxpayer by another state pursuant to a statute similar to section
one thousand one hundred twelve of the insurance law or any other
statute or regulation of another state under which retaliatory taxes or
other charges are imposed or assessed against such taxpayer shall give
the commissioner and the superintendent of insurance written notice of
the commencement of such action or proceeding within five days after
such commencement.
(6) The commissioner shall report annually, on or before the first day
of March, on the amount of credits claimed pursuant to this subdivision
on returns filed during the preceding calendar year. Such report shall
be provided to the director of the budget, the commissioner of health
and the superintendent of insurance.
(7) In addition to any other requirements of this article, an insurer
claiming a credit under this subdivision shall attach to the returns
required pursuant to section fifteen hundred fifteen a computation
identifying the credit attributable to taxes paid to other states
because of the amounts imposed and required to be paid pursuant to
section twenty-eight hundred seven-t of the public health law, which
credit shall be further broken down to reflect amounts and taxable years
to which the retaliatory taxes giving rise to the credit relate.
(j) Credit for employment of persons with disabilities. (1) Allowance
of credit. A taxpayer shall be allowed a credit, to be computed as
hereinafter provided, against the tax imposed by this article, for
employing within the state a qualified employee.
(2) Qualified employee. A qualified employee is an individual:
(A) who is certified by the education department, or in the case of an
individual who is blind or visually handicapped, by the state agency
responsible for provision of vocational rehabilitation services to the
blind and visually handicapped: (i) as a person with a disability which
constitutes or results in a substantial handicap to employment and (ii)
as having completed or as receiving services under an individualized
written rehabilitation plan approved by the education department or
other state agency responsible for providing vocational rehabilitation
services to such individual; and
(B) who has worked on a full-time basis for the employer who is
claiming the credit for at least one hundred eighty days or four hundred
hours.
(3) Amount of credit. Except as provided in paragraph four of this
subdivision, the amount of credit shall be thirty-five percent of the
first six thousand dollars in qualified first-year wages earned by each
qualified employee. "Qualified first-year wages" means wages paid or
incurred by the taxpayer during the taxable year to qualified employees
which are attributable, with respect to any such employee, to services
rendered during the one-year period beginning with the day the employee
begins work for the taxpayer.
(4) Credit where federal work opportunity tax credit applies. With
respect to any qualified employee whose qualified first-year wages under
paragraph three of this subdivision also constitute qualified first-year
wages for purposes of the work opportunity tax credit for vocational
rehabilitation referrals under section fifty-one of the internal revenue
code, the amount of credit under this subdivision shall be thirty-five
percent of the first six thousand dollars in qualified second-year wages
earned by each such employee. "Qualified second-year wages" means wages
paid or incurred by the taxpayer during the taxable year to qualified
employees which are attributable, with respect to any such employee, to
services rendered during the one-year period beginning one year after
the employee begins work for the taxpayer.
(5) Carryover. The credit and carryovers of such credit allowed under
this subdivision for any taxable year shall not, in the aggregate,
reduce the tax due for such year to less than the minimum tax fixed by
paragraph four of subdivision (a) of section fifteen hundred two of this
article or by section fifteen hundred two-a of this article, whichever
is applicable. However, if the amount of credit or carryovers of such
credit, or both, allowed under this subdivision for any taxable year
reduces the tax to such amount, then any amount of credit or carryovers
of such credit thus 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.
(6) Coordination with federal work opportunity tax credit. The
provisions of sections fifty-one and fifty-two of the internal revenue
code, as such sections applied on October first, nineteen hundred
ninety-six, that apply to the work opportunity tax credit for vocational
rehabilitation referrals shall apply to the credit under this
subdivision to the extent that such sections are consistent with the
specific provisions of this subdivision, provided that in the event of a
conflict the provisions of this subdivision shall control.
(k) Credit for certain investments in certified capital companies. (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 equal to one hundred percent of an investment of
certified capital in a certified capital company program made by the
taxpayer pursuant to section eleven of this chapter.
(2) Ten percent of such credit shall be allowed in the taxable year to
which such investment is allocated pursuant to subdivision (h) of
section eleven of this chapter and in each of the nine following taxable
years. In addition, in any taxable year subsequent to the taxable year
for which such investment is so allocated, any amount carried forward
under paragraphs three and four of this subdivision may be carried
forward indefinitely until such credits are utilized.
(3) No credit allowable pursuant to this subdivision shall reduce the
tax payable under this article to less than the minimum tax fixed by
paragraph four of subdivision (a) of section fifteen hundred two of this
article or by section fifteen hundred two-a of this article, whichever
is applicable. If, however, the amount of credit allowable under this
subdivision for any taxable year reduces the tax to such amount, any
amount of credit not taken 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.
(4) If for any taxable year the credit allowable under paragraph two
of this subdivision exceeds such minimum tax for such taxable year, then
the amount by which such credit exceeds such minimum tax liability shall
be carried forward as a credit under paragraph two of this subdivision
to the following year or years and may be deducted from the taxpayer's
tax for such year or years.
(5) Decertification of a certified capital company from a certified
capital company program shall cause the disallowance and the recapture
of the credit allowed under paragraph one of this subdivision, as
follows:
(A) Decertification of a certified capital company from a certified
capital company program within two years of its starting date prior to
meeting the requirements of subparagraph (A) of paragraph one of
subdivision (c) of section eleven of this chapter shall cause
disallowance of one hundred percent of the credit allowed under
paragraph one of this subdivision with respect to such certified capital
company program and the recapture of any portion of such credit that was
previously taken.
(B) Decertification of a certified capital company from a certified
capital company program which, having met all requirements of
subparagraph (A) of paragraph one of subdivision (c) of section eleven
of this chapter, subsequently fails to meet the requirements for
continued certification under the provisions of subparagraph (B) of such
paragraph one, shall cause the disallowance of eighty-five percent of
the credit allowed under paragraph one of this subdivision with respect
to such certified capital company program and recapture of any portion
of such credit in excess of fifteen percent that was previously taken.
(C) Decertification of a certified capital company from a certified
capital company program which, having met all requirements of
subparagraphs (A) and (B) of paragraph one of subdivision (c) of section
eleven of this chapter, subsequently fails to meet the requirements for
continued certification under the provisions of subparagraph (C) of such
paragraph one, shall cause the disallowance of seventy percent of the
credit allowed under paragraph one of this subdivision with respect to
such certified capital company program and the recapture of any portion
of such credit in excess of thirty percent that was previously taken.
(D) Decertification of a certified capital company from a certified
capital company program pursuant to paragraph two of subdivision (e) of
section eleven of this chapter, other than on the grounds of the failure
of such certified capital company to meet the requirements of
subparagraphs (A), (B) or (C) of paragraph one of subdivision (c) of
such section, shall not cause the disallowance of any of the credits
allowed under paragraph one of this subdivision with respect to such
certified capital company program, nor the recapture of any portion of
such credits that was previously taken.
(E) If, after twelve years after a certified capital company receives
an investment of certified capital under certified capital company
program four and any subsequent program, such certified capital company
has failed to invest one hundred percent of its certified capital
allocable to such certified capital company program in qualified
investments, such certified capital company shall be required to pay to
the department, for deposit in the general fund, an amount equal to two
times the amount of net profits on qualified investments as required
under paragraph five of subdivision (d) of section eleven of this
chapter at such subsequent time when it has fully invested one hundred
percent and has begun to make a distribution of its net profits;
provided that such requirement shall not apply to a certified capital
company in which at least fifty percent of the voting stock, capital,
membership interests, or other beneficial ownership interests, as the
case may be, are owned by an entity that is managed, directly or
indirectly, by a non-profit corporation. This amount of payment to the
department shall not be reduced by the amount set forth in paragraph six
of subdivision (d) of section eleven of this chapter, and a certified
capital company making a payment under this paragraph shall not be
eligible to create a fund pursuant to such paragraph six of subdivision
(d) of section eleven of this chapter for that particular certified
capital company program.
(6) Revocation of certification from a certified capital company
program pursuant to subdivision (f) of section eleven of this chapter,
before the later of (i) the third anniversary of the certification date
of the certified capital company or (ii) the date on which the certified
capital company satisfies the requirements of subparagraph (C) of
paragraph one of subdivision (c) of section eleven of this chapter,
shall cause disallowance of one hundred percent of the credit allowed
under paragraph one of this subdivision with respect to such certified
capital company program and the recapture of any portion of such credit
that was previously taken.
(7) No credit shall be allowed in any tax year in which the taxpayer
shall, individually or with or through one or more affiliates, be a
managing general partner of or underwrite or control the direction of
investments of a certified capital company for which the credit was
allowed under paragraph one of this subdivision. This provision shall
not preclude a certified investor, insurance company or any other party
from exercising its legal rights and remedies (which may include interim
management of a certified capital company) in the event that a certified
capital company is in default of its statutory obligations or its
contractual obligations to such certified investor, insurance company or
other party or from monitoring the certified capital company to ensure
its compliance with section eleven of this chapter or disallowing any
investments that have not been approved by the superintendent pursuant
to subparagraph (D) of paragraph one of subdivision (c) of such section
eleven. For purposes of this paragraph, affiliate shall mean a business
entity in which the taxpayer holds at least a ten percent beneficial
interest.
(8) A certified investor allowed a credit against its state tax
liability earned through an investment in a certified capital company
shall not be required to pay any additional retaliatory tax levied
pursuant to section eleven hundred twelve of the insurance law as a
result of claiming such credit.
(9) A taxpayer is permitted to transfer or sell tax credits allowed
under this subdivision, in whole or in part, to any affiliate within an
affiliated group of taxpayers, who are subject to tax in this state
under this article. Such transfer or sale shall not affect the time
schedule for claiming the credit transferred or sold. Any credit
recaptured shall be the liability of the taxpayer who actually claimed
the credit. The claim of a transferee shall be permitted in the same
manner and subject to the same provisions and limitations of section
eleven of this chapter as applied to the taxpayer to whom the credit was
originally allowed. For purposes of this paragraph, the term "affiliated
group" shall have the same meaning as described in section fifteen
hundred four of the internal revenue code, without exclusion for a
company listed under paragraph two of subsection (b) of section fifteen
hundred four of the internal revenue code, except that the references to
"at least eighty percent" in such section fifteen hundred four shall be
read as "more than fifty percent". Whenever a taxpayer transfers or
sells a tax credit pursuant to this paragraph, such taxpayer shall
notify the department and the insurance department of such transfer or
sale within forty-five days.
(l) Credit for purchase of an automated external defibrillator. A
taxpayer shall be allowed a credit as hereinafter provided, against the
tax imposed by this article for the purchase, other than for resale, of
an automated external defibrillator, as such term is defined in section
three thousand-b of the public health law. The amount of the credit
shall be the cost to the taxpayer of automated external defibrillators
purchased during the taxable year, such credit not to exceed five
hundred dollars with respect to each unit purchased. The credit allowed
under this subdivision for any taxable year shall not reduce the tax due
for such year to less than the minimum tax fixed by paragraph four of
subdivision (a) of section fifteen hundred two of this article or by
section fifteen hundred two-a of this article, whichever is applicable.
(m) (1) A taxpayer shall be allowed a credit against the tax imposed
by this article equal to twenty percent of the premium paid during the
taxable year for long-term care insurance. In order to qualify for such
credit, the taxpayer's premium payment must be for the purchase of or
for continuing coverage under a long-term care insurance policy that
qualifies for such credit pursuant to section one thousand one hundred
seventeen of the insurance law.
(2) In no event shall the credit herein provided for be allowed in an
amount which will reduce the tax payable to less than the minimum tax
fixed by paragraph four of subdivision (a) of section fifteen hundred
two of this article or by section fifteen hundred two-a of this article,
whichever is applicable. If, however, the amount of credit allowable
under this subdivision for any taxable year reduces the tax to such
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.
(n) Low-income housing credit. (1) Allowance of credit. A taxpayer
shall be allowed a credit against the tax imposed by this article with
respect to the ownership of eligible low-income buildings, computed as
provided in section eighteen of this chapter.
(2) Application of credit. The credit and carryovers of such credit
allowed under this subdivision for any taxable year shall not, in the
aggregate, reduce the tax due for such year to less than the minimum tax
fixed by paragraph four of subdivision (a) of section fifteen hundred
two of this article or by section fifteen hundred two-a of this article,
whichever is applicable. However, if the amount of credit or carryovers
of such credit, or both, allowed under this subdivision for any taxable
year reduces the tax to such amount, then any amount of credit or
carryovers of such credit thus 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) Credit recapture. For provisions requiring recapture of credit,
see subdivision (b) of section eighteen of this chapter.
(o) Green building credit. (1) Allowance of credit. A taxpayer shall
be allowed a credit, to be computed as provided in section nineteen of
this chapter, against the taxes imposed by this article.
(2) Carryover. The credit and carryovers of such credit allowed under
this subdivision for any taxable year shall not, in the aggregate,
reduce the tax due for such year to less than the minimum tax fixed by
paragraph four of subdivision (a) of section fifteen hundred two of this
article or by section fifteen hundred two-a of this article, whichever
is applicable. However, if the amount of credit or carryovers of such
credit, or both, allowed under this subdivision for any taxable year
reduces the tax to such amount, then any amount of credit or carryovers
of such credit thus 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.
(p) Credit for transportation improvement contributions. (1) Allowance
of credit. A taxpayer shall be allowed a credit, to be computed as
provided in section twenty of this chapter, against the taxes imposed by
this article.
(2) Application of credit. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by paragraph four of subdivision (a) of
section fifteen hundred two of this article or by section fifteen
hundred two-a of this article, whichever is applicable. However, if the
amount of credit allowed under this subdivision for any taxable year
reduces the tax to such amount, then any amount of credit thus not
deductible in such taxable year shall be treated as an overpayment of
tax to be credited or refunded in accordance with the provisions of
section ten hundred eighty-six of this chapter. Provided, however, the
provisions of subsection (c) of section ten hundred eighty-eight of this
chapter notwithstanding, no interest shall be paid thereon.
(3) Credit recapture. For provisions requiring recapture of credit,
see subdivision (c) of section twenty of this chapter.
(q) 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. Provided, however, a taxpayer shall not be allowed such
credit provided by this subdivision 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. The amount of the credit shall be the percent
provided for herein below 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 subdivision, 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 subdivision acquired, constructed,
reconstructed or erected during the year of the decrease in the amount
of nonqualified nonrecourse financing. In the case of a combined return,
the term investment credit base shall mean the sum of the investment
credit base of each corporation included on such return. The percentage
to be used to compute the credit allowed pursuant to this subdivision
shall be five percent with respect to the first three hundred fifty
million dollars of the investment credit base, and four percent with
respect to the investment credit base in excess of three hundred fifty
million dollars.
(2) A credit shall be allowed under this subdivision 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 (A) 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 four
hundred seventy-five (e) of the Internal Revenue Code, or (B)
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. For purposes of subparagraphs (A) and (B) of this
paragraph, property purchased by a taxpayer affiliated with a regulated
broker or dealer is allowed a credit under this subdivision if the
property is used by its affiliated regulated broker or dealer in
accordance with this subdivision.
(3) A taxpayer shall not be allowed a credit under this subdivision
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 broker or dealer that uses such property in
accordance with subparagraph (A) or (B) of paragraph two of this
subdivision. 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.
(4) Except as otherwise provided in this paragraph, the credit allowed
under this subdivision for any taxable year shall not reduce the tax due
for such year to less than the amount fixed as a minimum tax by
paragraph four of subdivision (a) of section fifteen hundred two of this
article or by section fifteen hundred two-a of this article, whichever
is applicable. However, if the amount of credit allowable under this
subdivision for any taxable year reduces the tax to such amount, any
amount of credit allowed for a taxable year may be carried over to the
fifteen taxable years next following such taxable year and may be
deducted from the taxpayer's tax for such year or years. In lieu of such
carryover, any such taxpayer which qualifies as a new business under
paragraph seven of this subdivision may elect to treat the amount of
such carryover as an overpayment of tax to be credited or refunded in
accordance with the provisions of section one thousand eighty-six of
this chapter, provided, however, the provisions of subsection (c) of
section one thousand eighty-eight of this chapter notwithstanding no
interest shall be paid thereon.
(5) At the option of the taxpayer an eligible business facility for
which a credit is allowed under subdivision (d) of this section may be
treated as property (A) 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 four hundred seventy-five (e) of the
Internal Revenue Code, or (B) 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 provided the property otherwise
qualifies under paragraph two of this subdivision, in which event a
credit shall not be allowed under subdivision (d) of this section.
(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
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 subdivision 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 subdivision 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 subdivision 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 a 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 subdivision 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.
(E) 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 (e) of section one thousand
ninety-six of this chapter, in effect on the last day of the taxable
year.
(F) 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 subdivision 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.
(7) For purposes of paragraph four of this subdivision, a new business
shall include any corporation, except a corporation which:
(A) over fifty percent of the number of shares of stock entitling the
holders thereof to vote for the election of directors or trustees is
owned or controlled, either directly or indirectly, by a taxpayer
subject to tax under this article; section one hundred eighty-three, one
hundred eighty-four, one hundred eighty-five or one hundred eighty-six
of article nine; article nine-A or article thirty-two of this chapter;
or
(B) is substantially similar in operation and in ownership to a
business entity (or entities) taxable, or previously taxable, under this
article; section one hundred eighty-three, one hundred eighty-four, one
hundred eight-five or one hundred eighty-six of article nine; article
nine-A or article thirty-two 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 of 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 four of this subdivision
with respect to refunding of credit to new business would be evaded; or
(C) has been subject to tax under this article for more than five
taxable years (excluding short taxable years).
(8)(A)(i) If a taxpayer is required by paragraph six of this
subdivision 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
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 subdivision, as required by paragraph six of this subdivision, 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 (E) of paragraph six of this
subdivision by using an interest rate equal to two times the rate of
interest specified in such subparagraph (E) 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 taxpayer's 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
subdivision, as required by paragraph six of this subdivision, 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 subdivision), 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.
(r) QEZE credit for real property taxes. (1) Allowance of credit. A
taxpayer which is a qualified empire zone enterprise shall be allowed a
credit for eligible real property taxes, to be computed as provided in
section fifteen of this chapter, against the tax imposed by this
article.
(2) Application of credit. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by paragraph four of subdivision (a) of
section fifteen hundred two of this article or by section fifteen
hundred two-a of this article, whichever is applicable. However, if the
amount of credit allowed under this subdivision for any taxable year
reduces the tax to such amount, then any amount of credit thus not
deductible in such taxable year shall be treated as an overpayment of
tax to be credited or refunded in accordance with the provisions of
section ten hundred eighty-six of this chapter. Provided, however, the
provisions of subsection (c) of section ten hundred eighty-eight of this
chapter notwithstanding, no interest shall be paid thereon.
(s) QEZE tax reduction credit. (1) Allowance of credit. A taxpayer
which is a qualified empire zone enterprise shall be allowed a QEZE tax
reduction credit, to be computed as provided in section sixteen of this
chapter, against the tax imposed by this article.
(2) Application of credit. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by paragraph four of subdivision (a) of
section fifteen hundred two of this article or by section fifteen
hundred two-a of this article, whichever is applicable.
(t) Order of credits. Notwithstanding the succeeding sentences of this
subdivision, the credits provided for in subdivisions (g) and (h) of
this section shall be deducted before any other credits allowable under
this article, and the credit provided for in such subdivision (g) shall
be deducted after the credit provided for in such subdivision (h). After
application of the first sentence of this subdivision, the credits
allowable under this article which cannot be carried over and which are
not refundable shall be deducted first. Credits allowable under this
article which can be carried over, and carryovers of such credits, shall
be deducted next, and among such credits, those whose carryover is of
limited duration shall be deducted before those whose carryover is of
unlimited duration. Credits allowable under this article which are
refundable shall be deducted last. Credits under subdivisions (g) and
(h) of this section may not be deducted from the limitation on tax
computed pursuant to subdivision (a) of section fifteen hundred five of
this article.
(u) Brownfield redevelopment tax credit. (1) Allowance of credit. A
taxpayer shall be allowed a credit, to be computed as provided in
section twenty-one of this chapter, against the taxes imposed by this
article.
(2) Application of credit. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for such year to less
than the minimum fixed by paragraph four of subdivision (a) of section
fifteen hundred two of this article. However, if the amount of credits
allowed under this subdivision for any taxable year reduces the tax to
such amount, any amount of credit thus not deductible in such taxable
year shall be treated as an overpayment of tax to be credited or
refunded in accordance with the provisions of section ten hundred
eighty-six of this chapter. Provided, however, the provisions of
subsection (c) of section ten hundred eighty-eight of this chapter
notwithstanding, no interest shall be paid thereon.
(v) Remediated brownfield credit for real property taxes for qualified
sites. (1) Allowance of credit. A taxpayer which is a developer of a
qualified site shall be allowed a credit for eligible real property
taxes, to be computed as provided in subdivision (b) of section
twenty-two of this chapter, against the tax imposed by this article. For
purposes of this subdivision, the terms "qualified site" and "developer"
shall have the same meaning as set forth in paragraphs two and three,
respectively, of subdivision (a) of section twenty-two of this chapter.
(2) Application of credit. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by paragraph four of subdivision (a) of
section fifteen hundred two of this article. However, if the amount of
credit allowed under this subdivision for any taxable year reduces the
tax to such amount, any amount of credit thus not deductible in such
taxable year shall be treated as an overpayment of tax to be credited or
refunded in accordance with the provisions of section ten hundred
eighty-six of this chapter. Provided, however, the provisions of
subsection (c) of section ten hundred eighty-eight of this chapter
notwithstanding, no interest shall be paid thereon.
(w) Environmental remediation insurance credit. (1) Allowance of
credit. A taxpayer shall be allowed a credit, to be computed as
provided in section twenty-three of this chapter, against the taxes
imposed by this article.
(2) Application of credit. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for such year to less
than the minimum fixed by paragraph four of subdivision (a) of section
fifteen hundred two or section fifteen hundred two-a of this article.
However, if the amount of credits allowed under this subdivision for any
taxable year reduces the tax to such amount, any amount of credit thus
not deductible in such taxable year shall be treated as an overpayment
of tax to be credited or refunded in accordance with the provisions of
section one thousand eighty-six of this chapter. Provided, however, the
provisions of subsection (c) of section one thousand eighty-eight of
this chapter notwithstanding, no interest shall be paid thereon.
* (x) Security training tax credit. (1) Allowance of credit. A
taxpayer shall be allowed a credit, to be computed as provided in
section twenty-six of this chapter, against the tax imposed by this
article.
(2) Application of credit. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for such year to less
than the minimum fixed by paragraph four of subdivision (a) of section
fifteen hundred two or section fifteen hundred two-a of this article.
However, if the amount of credits allowed under this subdivision for any
taxable year reduces the tax to such amount, any amount of credit thus
not deductible in such taxable year shall be treated as an overpayment
of tax to be credited or refunded in accordance with the provisions of
section one thousand eighty-six of this chapter. Provided, however, the
provisions of subsection (c) of section one thousand eighty-eight of
this chapter notwithstanding, no interest shall be paid thereon.
* NB There are 2 sb (x)'s
* (x) Credit for fuel cell electric generating equipment expenditures.
(1) Allowance of credit. A taxpayer shall be allowed a credit against
the tax imposed by this article, equal to its 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 in this subdivision 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 units
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.
(D) 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 qualified
expenditures.
(3) Application of credit. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by paragraph four of subdivision (a) of
section fifteen hundred two of this article or by section fifteen
hundred two-a of this article, whichever is applicable. However, if the
amount of credit allowed under this subdivision for any taxable year
reduces the tax to such amount, any amount of credit thus 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.
* NB There are 2 sb (x)'s
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