There is a newer version of the New York Consolidated Laws
2006 New York Code - Credits Against Tax.
§ 606. Credits against tax. (a) Investment tax credit (ITC). * (1) A
taxpayer shall be allowed a credit, to be computed as hereinafter
provided, against the tax imposed by this article. The amount of the
credit shall be the per cent provided for hereinbelow of the investment
credit base. The investment credit base is the cost or other basis, for
federal income tax purposes, of tangible personal property and other
tangible property, including buildings and structural components of
buildings, described in paragraph two of this subsection, less the
amount of the nonqualified nonrecourse financing with respect to such
property to the extent such financing would be excludible from the
credit base pursuant to section 46(c)(8) of the internal revenue code
(treating such property as section thirty-eight property irrespective of
whether or not it in fact constitutes section thirty-eight property).
If, at the close of a taxable year following the taxable year in which
such property was placed in service, there is a net decrease in the
amount of nonqualified nonrecourse financing with respect to such
property, such net decrease shall be treated as if it were the cost or
other basis of property described in paragraph two of this subsection
acquired, constructed, reconstructed or erected during the year of the
decrease in the amount of nonqualified nonrecourse financing. The
percentage to be used to compute the credit allowed pursuant to this
subsection shall be that percentage appearing in column two which is
opposite the appropriate period in column one in which the tangible
personal property was acquired, constructed, reconstructed or erected,
as the case may be:
Column 1 Column 2
After December 31, 1968 and
prior to January 1, 1974 one per cent
After December 31, 1973 and
prior to January 1, 1978 two per cent
After December 31, 1977 and
prior to January 1, 1979 three per cent
After December 31, 1978 and
prior to June 1, 1981 four per cent
After May 31, 1981 and
prior to July 1, 1982 five per cent
After June 30, 1982 and
before January 1, 1987 six per cent
After December 31, 1986 four per cent, except that in the
case of research and development
property the applicable
percentage shall be seven
Provided, however, that in the case of an acquisition, construction,
reconstruction or erection which was commenced in any one period and
continued or completed in any subsequent period the credit shall be the
sum of the portions of the investment credit base attributable to each
such period, which portion with respect to each such period shall be
ascertained by multiplying such investment credit base by a fraction the
numerator of which shall be the expenditures paid or incurred during
such period for such purposes and the denominator of which shall be the
total of all expenditures paid or incurred for such acquisition,
construction, reconstruction or erection, multiplied by the allowable
percentage for each such period.
* NB Applies to taxable years beginning after December 31, 1986
(2) * A credit shall be allowed under this subsection with respect to
tangible personal property and other tangible property, including
buildings and structural components of buildings, which are: depreciable
pursuant to section one hundred sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one hundred seventy-nine (d) of the internal
revenue code, have a situs in this state and are principally used by the
taxpayer in the production of goods by manufacturing, processing,
assembling, refining, mining, extracting, farming, agriculture,
horticulture, floriculture, viticulture or commercial fishing.
For purposes of this paragraph, manufacturing shall mean the process
of working raw materials into wares suitable for use or which gives new
shapes, new quality or new combinations to matter which already has gone
through some artificial process by the use of machinery, tools,
appliances and other similar equipment. Property used in the production
of goods shall include machinery, equipment or other tangible property
which is principally used in the repair and service of other machinery,
equipment or other tangible property used principally in the production
of goods and shall include all facilities used in the production
operation, including storage of material to be used in production and of
the products that are produced.
* NB Applies to property to which the amendments made by section 201
of Public Law 99-514 apply
(A) A credit shall be allowed under this subsection with respect to
tangible personal property and other tangible property, including
buildings and structural components of buildings, which are: depreciable
pursuant to section one hundred sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one hundred seventy-nine (d) of the internal
revenue code, have a situs in this state and are (i) principally used by
the taxpayer in the production of goods by manufacturing, processing,
assembling, refining, mining, extracting, farming, agriculture,
horticulture, floriculture, viticulture or commercial fishing, (ii)
industrial waste treatment facilities or air pollution control
facilities, used in the taxpayer's trade or business, (iii) research and
development property, (iv) principally used in the ordinary course of
the taxpayer's trade or business as a broker or dealer in connection
with the purchase or sale (which shall include but not be limited to the
issuance, entering into, assumption, offset, assignment, termination, or
transfer) of stocks, bonds or other securities as defined in section
four hundred seventy-five (c)(2) of the Internal Revenue Code, or of
commodities as defined in section 475(e) of the Internal Revenue Code,
(v) principally used in the ordinary course of the taxpayer's trade or
business of providing investment advisory services for a regulated
investment company as defined in section eight hundred fifty-one of the
Internal Revenue Code, or lending, loan arrangement or loan origination
services to customers in connection with the purchase or sale (which
shall include but not be limited to the issuance, entering into,
assumption, offset, assignment, termination, or transfer) of securities
as defined in section four hundred seventy-five (c)(2) of the Internal
Revenue Code, or (vi) principally used as a qualified film production
facility including qualified film production facilities having a situs
in an empire zone designated as such pursuant to article eighteen-B of
the general municipal law, where the taxpayer is providing three or more
services to any qualified film production company using the facility,
including such services as a studio lighting grid, lighting and grip
equipment, multi-line phone service, broadband information technology
access, industrial scale electrical capacity, food services, security
services, and heating, ventilation and air conditioning. For purposes of
clauses (iv) and (v) of this subparagraph, property purchased by a
taxpayer affiliated with a regulated broker or dealer is allowed a
credit under this subsection if the property is used by its affiliated
regulated broker or dealer in accordance with this subsection. Provided,
however, a taxpayer shall not be allowed the credit provided by clauses
(iv) and (v) of this subparagraph unless all or a substantial portion of
the employees performing the administrative and support functions
resulting from or related to the qualifying uses of such equipment are
located in this state. For purposes of this subsection, the term "goods"
shall not include electricity.
(B) For purposes of this paragraph, the following definitions shall
apply:
(i) Manufacturing shall mean the process of working raw materials into
wares suitable for use or which gives new shapes, new quality or new
combinations to matter which already has gone through some artificial
process by the use of machinery, tools, appliances and other similar
equipment. Property used in the production of goods shall include
machinery, equipment or other tangible property which is principally
used in the repair and service of other machinery, equipment or other
tangible property used principally in the production of goods and shall
include all facilities used in the production operation, including
storage of material to be used in production and of the products that
are produced.
(ii) Research and development property shall mean property which is
used for purposes of research and development in the experimental or
laboratory sense. Such purposes shall not be deemed to include the
ordinary testing or inspection of materials or products for quality
control, efficiency surveys, management studies, consumer surveys,
advertising, promotions, or research in connection with literary,
historical or similar projects.
(iii) Industrial waste treatment facilities shall mean property
constituting facilities for the treatment, neutralization or
stabilization of industrial waste and other wastes (as the terms
"industrial waste" and "other wastes" are defined in section 17-0105 of
the environmental conservation law) from a point immediately preceding
the point of such treatment, neutralization or stabilization to the
point of disposal, including the necessary pumping and transmitting
facilities, but excluding such facilities installed for the primary
purpose of salvaging materials which are usable in the manufacturing
process or are marketable.
(iv) Air pollution control facilities shall mean property constituting
facilities which remove, reduce, or render less noxious air contaminants
emitted from an air contamination source (as the terms "air contaminant"
and "air contamination source" are defined in section 19-0107 of the
environmental conservation law) from a point immediately preceding the
point of such removal, reduction or rendering to the point of discharge
of air, meeting emission standards as established by the department of
environmental conservation, but excluding such facilities installed for
the primary purpose of salvaging materials which are usable in the
manufacturing process or are marketable and excluding those facilities
which rely for their efficacy on dilution, dispersion or assimilation of
air contaminants in the ambient air after emission. Such term shall
further include flue gas desulfurization equipment and attendant sludge
disposal facilities, fluidized bed boilers, precombustion coal cleaning
facilities or other facilities that conform with this subsection and
which comply with the provisions of the State Acid Deposition Control
Act set forth in title nine of article nineteen of the environmental
conservation law.
(v) For purposes of this paragraph, the terms "qualified film
production facility" and "qualified film production company" shall have
the same meaning as in section twenty-four of this chapter.
(C) However, such credit shall be allowed with respect to industrial
waste treatment facilities and air pollution control facilities only on
condition that such facilities have been certified by the state
commissioner of environmental conservation or his designated
representative, pursuant to subdivision one of section 17-0707 or
subdivision one of section 19-0309 of the environmental conservation
law, as complying with applicable provisions of the environmental
conservation law, the public health law, the state sanitary code and
codes, rules, regulations, permits or orders issued pursuant thereto.
* (3) A taxpayer shall not be allowed a credit under this subsection
with respect to any property described in paragraph two hereof if such
property qualifies for the modification allowed under either paragraph
three or paragraph four of subsection (g) of section six hundred twelve
whether or not such amount shall have been subtracted. Provided,
however, with respect to property which qualifies for a modification
under either clause (A), (B) or (C) of paragraph four of subsection (g)
because such property was ordered on or before December thirty-first,
nineteen hundred sixty-eight, but with respect to which no expenditure
has been paid or incurred at such date, the taxpayer may elect to
subtract the amount allowable under clauses (A), (B) or (C) or may take
the credit provided by this subsection, but not both.
* NB Applies to taxable years prior to December 31, 1986
* (3) A taxpayer shall not be allowed a credit under this subsection
with respect to any property described in clause (i) of subparagraph (B)
of paragraph two hereof if such property qualifies for the modification
allowed under either paragraph three or paragraph four of subsection (g)
of section six hundred twelve whether or not such amount shall have been
subtracted. Provided, however, with respect to property which qualifies
for a modification under either clause (A), (B) or (C) of paragraph four
of subsection (g) because such property was ordered on or before
December thirty-first, nineteen hundred sixty-eight, but with respect to
which no expenditure has been paid or incurred at such date, the
taxpayer may elect to subtract the amount allowable under clauses (A),
(B) or (C) or may take the credit provided by this subsection, but not
both.
* NB Applies to taxable years beginning after December 31, 1986
(4) A taxpayer shall not be allowed a credit under this subsection
with respect to tangible personal property and other tangible property,
including buildings and structural components of buildings, which it
leases to any other person or corporation except where a taxpayer leases
property to an affiliated regulated broker or dealer that uses such
property in accordance with clause (iv) or (v) of subparagraph (A) of
paragraph two of this subsection. For purposes of the preceding
sentence, any contract or agreement to lease or rent or for a license to
use such property shall be considered a lease. Provided, however, in
determining whether a taxpayer shall be allowed a credit under this
subsection with respect to such property, any election made with respect
to such property pursuant to the provisions of paragraph eight of
subsection (f) of section one hundred sixty-eight of the internal
revenue code, as such paragraph was in effect for agreements entered
into prior to January first, nineteen hundred eighty-four, shall be
disregarded. For purposes of this paragraph, the use of a qualified film
production facility by a qualified film production company shall not be
considered a lease of such facility to such company.
* (5) If the amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
may be carried over to the following year or years and may be deducted
from the taxpayer's tax for such year or years, provided, however, in
lieu of carrying over any such excess, a taxpayer who qualifies as an
owner of a new business for purposes of paragraph ten of this subsection
may, at his option, receive such excess as a refund. Any refund paid
pursuant to this paragraph shall be deemed to be a refund of an
overpayment of tax as provided in section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
* NB Applies to taxable years prior to December 31, 1986
* (5) If the amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
allowed for a taxable year commencing prior to January first, nineteen
hundred eighty-seven may be carried over to the following year or years
and may be deducted from the taxpayer's tax for such year or years, but
in no event shall such credit be carried over to taxable years
commencing on or after January first, nineteen hundred ninety-seven, and
any amount of credit allowed for a taxable year commencing on or after
January first, nineteen hundred eighty-seven and not deductible in such
year may be carried over to the ten taxable years next following such
taxable year and may be deducted from the taxpayer's tax for such year
or years. In lieu of carrying over any such excess, a taxpayer who
qualifies as an owner of a new business for purposes of paragraph ten of
this subsection may, at his option, receive such excess as a refund. Any
refund paid pursuant to this paragraph shall be deemed to be a refund of
an overpayment of tax as provided in section six hundred eighty-six of
this article, provided, however, that no interest shall be paid thereon.
* NB Applies to taxable years beginning after December 31, 1986
* (6) At the option of the taxpayer, air or water pollution control
facilities which qualify for elective modifications under subsection (h)
of section six hundred twelve, or research and development facilities
which qualify for elective modifications under paragraphs two and four
of subsection (g) of section six hundred twelve may be treated as
property principally used by the taxpayer in the production of goods by
manufacturing, processing, assembling, refining, mining, extracting,
farming, agriculture, horticulture, floriculture, viticulture or
commercial fishing, provided the property otherwise qualifies under
paragraph two of this subsection, in which event, a modification shall
not be allowed under such subsection (h) and under such paragraphs two
and four of subsection (g).
* NB Applies to taxable years prior to December 31, 1986
* (6) At the option of the taxpayer for taxable years commencing prior
to January first, nineteen hundred eighty-seven, air or water pollution
control facilities which qualify for elective modifications under
subsection (h) of section six hundred twelve, or research and
development facilities which qualify for elective modifications under
paragraphs two and four of subsection (g) of section six hundred twelve
may be treated as property principally used by the taxpayer in the
production of goods by manufacturing, processing, assembling, refining,
mining, extracting, farming, agriculture, horticulture, floriculture,
viticulture or commercial fishing, provided the property otherwise
qualifies under paragraph two of this subsection, in which event, a
modification shall not be allowed under such subsection (h) and under
such paragraphs two and four of subsection (g).
* NB Applies to taxable years beginning after December 31, 1986
* (7) (A) With respect to property which is depreciable pursuant to
section one hundred sixty-seven of the internal revenue code but is not
subject to the provisions of section one hundred sixty-eight of such
code and which is disposed of or ceases to be in qualified use prior to
the end of the taxable year in which the credit is to be taken, the
amount of the credit shall be that portion of the credit provided for in
this subsection which represents the ratio which the months of qualified
use bear to the months of useful life. If property on which credit has
been taken is disposed of or ceases to be in qualified use prior to the
end of its useful life, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. Provided, however, if such property is disposed of or
ceases to be in qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not be necessary to add
back the credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to the months
of useful life. For purposes of this subparagraph, useful life of
property shall be the same as the taxpayer uses for depreciation
purposes when computing his federal income tax liability.
(B) Except with respect to that property to which subparagraph (D) of
this paragraph applies, with respect to three-year property, as defined
in subsection (e) of section one hundred sixty-eight of the internal
revenue code, which is disposed of or ceases to be in qualified use
prior to the end of the taxable year in which the credit is to be taken,
the amount of the credit shall be that portion of the credit provided
for in this subsection which represents the ratio which the months of
qualified use bear to thirty-six. If property on which credit has been
taken is disposed of or ceases to be in qualified use prior to the end
of thirty-six months, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. The amount of credit allowed for actual use shall be
determined by multiplying the original credit by the ratio which the
months of qualified use bear to thirty-six.
(C) Except with respect to that property to which subparagraph (D) of
this paragraph applies, with respect to property subject to the
provisions of section one hundred sixty-eight of the internal revenue
code, other than three-year property as defined in subsection (e) of
such section one hundred sixty-eight which is disposed of or ceases to
be in qualified use prior to the end of the taxable year in which the
credit is to be taken, the amount of the credit shall be that portion of
the credit provided for in this subsection which represents the ratio
which the months of qualified use bear to sixty. If property on which
credit has been taken is disposed of or ceases to be in qualified use
prior to the end of sixty months, the difference between the credit
taken and the credit allowed for actual use must be added back in the
year of disposition. The amount of credit allowed for actual use shall
be determined by multiplying the original credit by the ratio which the
months of qualified use bear to sixty.
(D) With respect to any property to which section one hundred
sixty-eight of the internal revenue code applies, which is a building or
a structural component of a building and which is disposed of or ceases
to be in qualified use prior to the end of the taxable year in which the
credit is to be taken, the amount of the credit shall be that portion of
the credit provided for in this subsection which represents the ratio
which the months of qualified use bear to the total number of months
over which the taxpayer chooses to deduct the property under the
internal revenue code. If property on which credit has been taken is
disposed of or ceases to be in qualified use prior to the end of the
period over which the taxpayer chooses to deduct the property under the
internal revenue code, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. Provided, however, if such property is disposed of or
ceases to be in qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not be necessary to add
back the credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to the total
number of months over which the taxpayer chooses to deduct the property
under the internal revenue code.
* NB Applies to property to which the amendments made by section 201
of Public Law 99-514 apply
* (E) For purposes of this paragraph, property (i) which is described
in subparagraph (B), (C) or (D) of this paragraph, and (ii) which is
subject to paragraph twenty-six of subsection (c) and paragraph
twenty-five of subsection (b) of section six hundred twelve of this
chapter, shall be treated as property which is depreciable pursuant to
section one hundred sixty-seven of the internal revenue code but is not
subject to section one hundred sixty-eight of such code.
* NB Applies to taxable years beginning after December 31, 1986
* (F) For purposes of this paragraph, where a credit is allowed with
respect to an air pollution control facility on the basis of a
certificate of compliance issued pursuant to the environmental
conservation law and the certificate is revoked pursuant to subdivision
three of section 19-0309 of the environmental conservation law, such
revocation shall constitute a disposal or cessation of qualified use,
unless such facility is described in clause (i) or (iii) of subparagraph
(A) of paragraph two of this subsection. Also for purposes of this
subparagraph, the use of an air pollution control facility or an
industrial waste treatment facility for the primary purpose of salvaging
materials which are usable in the manufacturing process or are
marketable shall constitute a cessation of qualified use, unless such
facility is described in clause (i) or (iii) of subparagraph (A) of
paragraph two of this subsection.
* NB Applies to taxable years beginning after December 31, 1986
(G) For taxable years commencing on or after January first, nineteen
hundred eighty-seven, the amount required to be added back pursuant to
this paragraph shall be augmented by an amount equal to the product of
such amount and the underpayment rate of interest (without regard to
compounding), set by the commissioner pursuant to subsection (j) of
section six hundred ninety-seven, in effect on the last day of the
taxable year.
* Shall apply to interest chargeable on or after April 1, 2003
* (H) If, as of the close of the taxable year, there is a net increase
with respect to the taxpayer in the amount of nonqualified nonrecourse
financing (within the meaning of section 46(c) (8) of the internal
revenue code) with respect to any property with respect to which the
credit under this subsection was limited based on attributable
nonqualified nonrecourse financing, then an amount equal to the decrease
in such credit which would have resulted from reducing, by the amount of
such net increase, the cost or other basis taken into account with
respect to such property must be added back in such taxable year. The
amount of nonqualified nonrecourse financing shall not be treated as
increased by reason of a transfer of (or agreement to transfer) any
evidence of an indebtedness if such transfer occurs (or such agreement
is entered into) more than one year after the date such indebtedness was
incurred.
* NB Applies to taxable years beginning after December 31, 1986
(10) For purposes of paragraph five of this subsection, an individual
who is either a sole proprietor or a member of a partnership shall
qualify as an owner of a new business unless:
(A) the business of which the individual is an owner is substantially
similar in operation and in ownership to a business entity taxable, or
previously taxable, under section one hundred eighty-three, one hundred
eighty-four, one hundred eighty-five or one hundred eighty-six of
article nine; article nine-A, thirty-two or thirty-three of this
chapter; article twenty-three of this chapter or which would have been
subject to tax under such article twenty-three (as such article was in
effect on January first, nineteen hundred eighty) or the income (or
losses) of which is (or was) includable under article twenty-two of this
chapter whereby the intent and purpose of this paragraph and paragraph
five of this subsection with respect to refunding of credit to new
business would be evaded; or
(B) the individual has operated such new business entity in this state
for more than five taxable years (excluding short years of the
business).
(11) Retail enterprise tax credit. A retail enterprise, not eligible
to claim the credit under paragraph one of this subsection, but eligible
to claim the credit allowable under section thirty-eight of the internal
revenue code pursuant solely to the provisions of subparagraph (E) of
paragraph one of subsection (a) of section forty-eight of such code,
shall be allowed a credit as hereinafter computed. The amount of the
credit shall be the percentage appearing in paragraph one of this
subsection for the periods described therein for the amount of qualified
rehabilitation expenditures, as defined in subsection (g) of section
forty-eight of such code, paid or incurred with respect to a qualified
rehabilitated building, as defined in such subsection (g), located in
this state and such expenditures shall be further limited to only the
portion thereof paid or incurred with respect to that part of a
qualified rehabilitated building employed by such taxpayer in the retail
sales activity of such retail enterprise. For the purposes of this
subsection, the term "retail enterprise" means a taxpayer which is: (A)
a registered vendor under article twenty-eight of this chapter, (B)
primarily engaged in the retail sale, as the term "retail sale" is
defined in subparagraph (i) of paragraph four of subdivision (b) of
section eleven hundred one of this chapter, of tangible personal
property, and (C) otherwise eligible for the credit allowed pursuant to
section thirty-eight of the internal revenue code.
* (12) Rehabilitation credit for historic barns. A taxpayer shall be
allowed a credit, to be computed as hereinafter provided, against the
tax imposed by this article. The amount of the credit shall be
twenty-five percent of the taxpayer's qualified rehabilitation
expenditures, as defined in paragraph two of subsection (c) of section
forty-seven of the internal revenue code, which qualify as the basis for
the credit provided for under paragraph one of subsection (b) of section
thirty-eight of such code by reason of subsection one of section
forty-six of such code, paid or incurred with respect to any barn
located in this state which is a qualified rehabilitated building, as
such term is defined in paragraph one of subsection (c) of such section
forty-seven. For purposes of this paragraph, the term "barn" means a
building originally designed and used for storing farm equipment or
agricultural products, or for housing livestock. Provided, however, such
qualified rehabilitation expenditures shall not include any such
expenditures which are included, directly or indirectly, in the
computation of a credit claimed by the taxpayer pursuant to paragraph
one of this subsection. Provided further that no rehabilitation credit
shall be allowed for any rehabilitation of a barn which, immediately
prior to the commencement of such rehabilitation, was used for
residential purposes, or which converts a barn not suitable for
residential purposes into one which is so suitable, nor shall a
rehabilitation credit be allowed for any rehabilitation that materially
alters the historic appearance of the barn.
* NB Applies to taxable years beginning on or after January 1, 1997
(13)(A)(i) If a taxpayer is required by paragraph seven of this
subsection to add back a portion of the credit taken because property
was destroyed or ceased to be in qualified use as a direct result of the
September eleventh, two thousand one terrorist attacks, such taxpayer
may elect to defer the amount to be recaptured for all such property to
the taxable year next succeeding the taxable year in which the
destruction or cessation of qualified use occurred. The taxable year in
which the destruction or cessation of qualified use occurred shall be
hereinafter referred to as the "recapture event taxable year". If the
taxpayer's total employment number in the state on the last day of the
taxable year next succeeding the recapture event taxable year is a
significant percentage of the taxpayer's average total employment number
in the state for the taxpayer's recapture event taxable year and the two
taxable years immediately preceding the recapture event taxable year,
then the taxpayer shall not be required to recapture any credit with
respect to such property. If the taxpayer's total employment number in
the state on the last day of the taxable year next succeeding the
recapture event taxable year is not a significant percentage of the
taxpayer's average total employment number in the state for the
taxpayer's recapture event taxable year and the two taxable years
immediately preceding the recapture event taxable year, the taxpayer
shall be required to recapture the portion of the credit taken under
this subsection, as required by paragraph seven of this subsection, for
all of its property destroyed or which ceased to be in qualified use as
a direct result of the September eleventh, two thousand one terrorist
attacks. The amount required to be recaptured shall be augmented as
required pursuant to subparagraph (G) of paragraph seven of this
subsection by using an interest rate equal to two times the rate of
interest specified in such subparagraph seven applicable for the taxable
year in which the recapture occurs.
(ii) The taxpayer's total employment number shall include all
employees of the taxpayer employed full-time by the taxpayer in the
state. The average total employment number for the recapture event
taxable year and the two taxable years immediately preceding the
recapture event taxable year shall be computed by determining the
taxpayer's total employment number on the thirty-first day of March, the
thirtieth day of June, the thirtieth day of September and the
thirty-first day of December during the applicable taxable years, adding
together the number of such individuals determined to be so employed on
each of such dates and dividing the sum so obtained by the number of
such dates occurring within such applicable taxable years. However, in
the case of the taxable year which included September eleventh, two
thousand one, the average total employment number for such taxable year
shall be determined by using the total employment number on September
first, two thousand one in lieu of September thirtieth, two thousand one
and, if such taxable year included December thirty-first, two thousand
one, by excluding the total employment number on December thirty-first,
two thousand one.
(B) In lieu of subparagraph (A) of this paragraph, a taxpayer may
elect to recapture the portion of the credit taken under this
subsection, as required by paragraph seven of this subsection, for all
of its property destroyed or which ceased to be in qualified use as a
direct result of the September eleventh, two thousand one terrorist
attacks, in the taxable year in which the destruction or cessation of
qualified use occurred. If the taxpayer makes such election and acquires
property (hereinafter referred to as "replacement property") to replace
any property destroyed as a direct result of the September eleventh, two
thousand one terrorist attacks (regardless of when such property was
placed in service and whether a credit was claimed on that property
pursuant to this subsection), and such replacement property is similar
or related in service or use to such destroyed property, the investment
credit base of the replacement property shall be determined without
regard to any basis reduction required pursuant to section 1033 of the
internal revenue code.
(C) The election made by the taxpayer under subparagraph (A) or (B) of
this paragraph shall be made in the manner and form prescribed by the
commissioner.
(D) A taxpayer, over fifty percent of whose employees died as a direct
result of the September eleventh, two thousand one terrorist attacks,
may make the election provided for in subparagraph (A) of this
paragraph, and shall not be required to recapture any credit with
respect to property which was destroyed or which ceased to be in
qualified use as a direct result of such attacks, whether or not it
meets the employment test specified in clause (i) of subparagraph (A) of
this paragraph.
(a-1) Employment incentive credit (EIC). (1)(A) Where a taxpayer is
allowed a credit under subsection (a) of this section, other than at the
optional rate applicable to research and development property, the
taxpayer shall be allowed a credit for each of the two years next
succeeding the taxable year for which the credit under such subsection
(a) is allowed with respect to such property, whether or not deductible
in such taxable year or in subsequent taxable years pursuant to
paragraph five of subsection (a) of this section. Provided, however,
that the credit allowable under this subsection for any taxable year
shall be allowed only if the average number of employees during such
taxable year is at least one hundred one percent of the average number
of employees during the employment base year. The employment base year
shall be the taxable year immediately preceding the taxable year for
which the credit under such subsection (a) is allowed except that in the
case of a new business, the employment base year shall be the taxable
year in which the credit under such subsection (a) is allowed.
(B) The amount of the credit allowed under this subsection shall be as
set forth in the following table:
Average number of employees Credit allowed under
during the taxable year this subsection expressed as a
expressed as a percentage of percentage of
average number of employees the applicable investment
in employment base year: credit base:
Less than 102% 1.5%
at least 102% and less than 103% 2%
at least 103% 2.5%
(2) The average number of employees in a taxable year shall be
computed by ascertaining the number of employees within the state
employed by the taxpayer on the thirty-first day of March, the thirtieth
day of June, the thirtieth day of September and the thirty-first day of
December in the taxable year, by adding together the number of employees
ascertained on each of such dates and dividing the sum so obtained by
the number of such abovementioned dates occurring within the taxable
year. For the purposes of this subsection, the term "employees within
the state" shall not include, except with respect to the employment base
year, any employee with respect to whom a credit provided for under
subsection (k) of this section is claimed for the taxable year, based on
employment within a zone equivalent area designated as such pursuant to
article eighteen-B of the general municipal law.
(3) If the amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
allowed for a taxable year may be carried over to the ten taxable years
next following such taxable year and may be deducted from the taxpayer's
tax for such year or years. In lieu of carrying over any such excess, a
taxpayer who qualifies as an owner of a new business for purposes of
paragraph ten of subsection (a) of this section may, at his or her
option, receive such excess as a refund. Any refund paid pursuant to
this paragraph shall be deemed to be a refund of an overpayment of tax
as provided in section six hundred eighty-six of this article, provided,
however, that no interest shall be paid thereon.
(b) Household credit. * (1) For taxable years beginning before
nineteen hundred ninety-one, a household credit shall be allowed against
the tax imposed by section six hundred one of this article. Provided,
however, the credit allowed for the taxable year beginning in nineteen
hundred ninety shall be fifty percent of the credit otherwise allowable
under this subsection. The credit, computed as described in paragraph
two of this subsection, shall not exceed the tax imposed by section six
hundred one for the taxable year, reduced by the credits permitted under
subsection (c) of this section and sections six hundred twenty, six
hundred twenty-one and six hundred forty of this article.
* NB Applies to taxable years beginning prior to 1988
* (1) A household credit shall be allowed against the tax determined
under subsections (a) through (d) of section six hundred one of this
article. The credit, computed as described in paragraph two of this
subsection, shall not exceed the tax determined under subsections (a)
through (d) of section six hundred one for the taxable year, reduced by
the credits permitted under subsections (c) and (m) of this section and
sections six hundred twenty and six hundred twenty-one of this article.
* NB Applies to taxable years beginning after 1987
* (1) A household credit shall be allowed against the tax determined
under subsections (a) through (d) of section six hundred one of this
article. The credit, computed as described in paragraph two of this
subsection, shall not exceed the tax determined under subsections (a)
through (d) of section six hundred one for the taxable year, reduced by
the credits permitted under sections six hundred twenty and six hundred
twenty-one of this article.
* NB Applies to taxable years beginning on or after January 1, 1996
(2) (A) For any individual who is not married nor the head of a
household nor a surviving spouse, the amount of the credit allowed
pursuant to this subsection for taxable years beginning on or after
January first, nineteen hundred eighty-six shall be determined in
accordance with the following table:
If household gross The credit
income is shall be
Not over $5,000 $75.00
Over $5,000 but not over $6,000 60.00
Over $6,000 but not over $7,000 50.00
Over $7,000 but not over $20,000 45.00
Over $20,000 but not over $25,000 40.00
Over $25,000 but not over $28,000 20.00
* (B) For any husband and wife, head of a household, or surviving
spouse, the amount of the credit allowed pursuant to this subsection for
taxable years beginning on or after January first, nineteen hundred
eighty-six shall be determined in accordance with the following table:
If household gross The credit
income is shall be
Not over $5,000 $90.00 plus an amount equal to
$15.00 multiplied by a number which
is one less than the number of
exemptions for which the taxpayer (or
in the case of a husband and wife,
taxpayers) is entitled to a deduction
for the taxable year for federal
income tax purposes under subsections
(b) and (c) of section one hundred
fifty-one of the internal revenue
code
Over $5,000 but not over $6,000 $75.00 plus such an amount
Over $6,000 but not over $7,000 $65.00 plus such an amount
Over $7,000 but not over $20,000 $60.00 plus such an amount
Over $20,000 but not over $22,000 $60.00 plus an amount equal to $10.00
multiplied by a number which is one
less than the number of exemptions
for which the taxpayer (or in the
case of a husband and wife,
taxpayers) is entitled to a deduction
for the taxable year for federal
income tax purposes under subsections
(b) and (c) of section one hundred
fifty-one of the internal revenue
code
Over $22,000 but not over $25,000 $50.00 plus such an amount
Over $25,000 but not over $28,000 $40.00 plus an amount equal to $5.00
multiplied by a number which is one
less than the number of exemptions
for which the taxpayer (or in the
case of a husband and wife,
taxpayers) is entitled to a deduction
for the taxable year for federal
income tax purposes under subsections
(b) and (c) of section one hundred
fifty-one of the internal revenue
code
Over $28,000 but not over $32,000 $20.00 plus such an amount
* NB Applies to taxable years beginning after 1986
(3) For the purposes of this subsection:
(A) "Household gross income" shall mean the aggregate federal adjusted
gross income of a household, as the term household is defined in
subparagraph (B) of this paragraph, for the taxable year.
(B) "Household" means a husband and wife, a head of household, a
surviving spouse, or an individual who is not married nor the head of a
household nor a surviving spouse nor a taxpayer with respect to whom a
deduction under subsection (c) of section one hundred fifty-one of the
internal revenue code is allowable to another taxpayer for the taxable
year.
(C) "Household gross income of a husband and wife" shall be the
aggregate of their federal adjusted gross incomes for the taxable year
irrespective of whether joint or separate New York income tax returns
are filed. Provided, however, that a husband or wife who is required to
file a separate New York income tax return shall be permitted one-half
the credit otherwise allowed his or her household, except as limited by
paragraph one of this subsection.
* (D) "Household gross income" shall be computed in all cases as if
each member of the household were a resident for the entire taxable
year.
* NB Repealed as applied to taxable years beginning after 1987
* (E) If a taxpayer changes his status during his taxable year from
resident to nonresident, or from nonresident to resident, the household
credit shall be prorated according to each period. In the case of a
husband and wife, if either or both changes his or her status from
resident to nonresident or from nonresident to resident and separate
returns are filed, the credit computed for the entire year shall be
divided first as provided in subparagraph (C) of this paragraph and then
prorated according to each period.
* NB Repealed as applied to taxable years beginning after 1987
(c) Credit for certain household and dependent care services necessary
for gainful employment.
* (1) A taxpayer shall be allowed a credit, to be computed as
hereinafter provided, against the tax imposed by section six hundred one
of this article. Except as provided below, the amount of the credit
shall be twenty percent of the credit allowed such taxpayer pursuant to
the provisions of section twenty-one of the internal revenue code for
the same taxable year. The amount of such credit shall not exceed the
tax imposed by section six hundred one of this article for the taxable
year, reduced by the credits permitted under sections six hundred
twenty, six hundred twenty-one and six hundred forty of this article.
* NB Shall be deemed to have been in full force and effect since April
20, 1987
* (1) A taxpayer shall be allowed a credit, to be computed as
hereinafter provided, against the tax determined under subsections (a)
through (d) of section six hundred one of this article. Except as
provided below, the amount of the credit shall be twenty percent of the
credit allowed such taxpayer pursuant to the provisions of section
twenty-one of the internal revenue code for the same taxable year. The
amount of such credit shall not exceed the tax determined under
subsections (a) through (d) of section six hundred one of this article
for the taxable year, reduced by the credits permitted under sections
six hundred twenty and six hundred twenty-one of this article.
* NB Applies to taxable years beginning after 1987
* (2) In the case of a husband and wife who file a joint federal
return, but who are required to determine their New York taxes
separately, the credit allowed pursuant to this subsection may only be
applied against the tax imposed on the spouse with the lower taxable
income, computed without regard to such credit.
* NB Applies to taxable years beginning after 1986
* (3) A nonresident individual shall be allowed the same credit as is
allowed resident individuals under this subsection; except that if (A)
his New York adjusted gross income determined under section six hundred
thirty-two of this article, as a nonresident is exceeded by (B) the New
York adjusted gross income he would be required to report under section
six hundred twelve of this article, if he were a resident, by more than
one hundred dollars, the credit shall be limited to the amount which
represents the same percentage of the total allowable credit which (A)
is of (B).
* NB Applies to taxable years beginning after 1986
* NB Repealed as applied to taxable years beginning after 1987
* (4) If a taxpayer changes his status during his taxable year from
resident to nonresident, or from nonresident to resident, a credit
computed as if the taxpayer were a resident for the entire taxable year
shall be prorated according to the periods of residence and
nonresidence, and the portion thereby assigned to the period of
nonresidence shall be then subject to the limitations set forth in
paragraph three of this subsection computed with respect to such period
of nonresidence.
* NB Repealed as applied to taxable years beginning after 1987
* (c) Credit for certain household and dependent care services
necessary for gainful employment.
(1) A taxpayer shall be allowed a credit as provided herein equal to
the applicable percentage of the credit allowable under section
twenty-one of the internal revenue code for the same taxable year
(without regard to whether the taxpayer in fact claimed the credit under
such section twenty-one for such taxable year). The applicable
percentage shall be the sum of (i) twenty percent and (ii) a multiplier
multiplied by a fraction. For taxable years beginning in nineteen
hundred ninety-six and nineteen hundred ninety-seven, the numerator of
such fraction shall be the lesser of (i) four thousand dollars or (ii)
fourteen thousand dollars less the New York adjusted gross income for
the taxable year, provided, however, the numerator shall not be less
than zero. For the taxable year beginning in nineteen hundred
ninety-eight, the numerator of such fraction shall be the lesser of (i)
thirteen thousand dollars or (ii) thirty thousand dollars less the New
York adjusted gross income for the taxable year, provided, however, the
numerator shall not be less than zero. For taxable years beginning in
nineteen hundred ninety-nine, the numerator of such fraction shall be
the lesser of (i) fifteen thousand dollars or (ii) fifty thousand
dollars less the New York adjusted gross income for the taxable year,
provided, however, the numerator shall not be less than zero. For
taxable years beginning after nineteen hundred ninety-nine, the
numerator of such fraction shall be the lesser of (i) fifteen thousand
dollars or (ii) sixty-five thousand dollars less the New York adjusted
gross income for the taxable year, provided, however, the numerator
shall not be less than zero. The denominator of such fraction shall be
four thousand dollars for taxable years beginning in nineteen hundred
ninety-six and nineteen hundred ninety-seven, thirteen thousand dollars
for the taxable year beginning in nineteen hundred ninety-eight, and
fifteen thousand dollars for taxable years beginning after nineteen
hundred ninety-eight. The multiplier shall be ten percent for taxable
years beginning in nineteen hundred ninety-six, forty percent for
taxable years beginning in nineteen hundred ninety-seven, and eighty
percent for taxable years beginning after nineteen hundred ninety-seven.
Provided, however, for taxable years beginning after nineteen hundred
ninety-nine, for a person whose New York adjusted gross income is less
than forty thousand dollars, such applicable percentage shall be equal
to (i) one hundred percent, plus (ii) ten percent multiplied by a
fraction whose numerator shall be the lesser of (i) fifteen thousand
dollars or (ii) forty thousand dollars less the New York adjusted gross
income for the taxable year, provided such numerator shall not be less
than zero, and whose denominator shall be fifteen thousand dollars.
Provided, further, that if the reversion event, as defined in this
paragraph, occurs, the applicable percentage shall, for taxable years
ending on or after the date on which the reversion event occurred, be
determined using the rules specified in this paragraph applicable to
taxable years beginning in nineteen hundred ninety-nine. The reversion
event shall be deemed to have occurred on the date on which federal
action, including but not limited to, administrative, statutory or
regulatory changes, materially reduces or eliminates New York state's
allocation of the federal temporary assistance for needy families block
grant, or materially reduces the ability of the state to spend federal
temporary assistance for needy families block grant funds for the credit
for certain household and dependent care services necessary for gainful
employment or to apply state general fund spending on the credit for
certain household and dependent care services necessary for gainful
employment toward the temporary assistance for needy families block
grant maintenance of effort requirement, and the commissioner of the
office of temporary and disability assistance shall certify the date of
such event to the commissioner, the director of the division of the
budget, the speaker of the assembly and the temporary president of the
senate.
(2) Residents. In the case of a resident taxpayer, the credit under
this subsection shall be allowed against the taxes imposed by this
article for the taxable year reduced by the credits permitted by this
article. If the credit exceeds the tax as so reduced, the taxpayer may
receive, and the comptroller, subject to a certificate of the
commissioner, shall pay as an overpayment, without interest, the amount
of such excess.
(3) Nonresidents. In the case of a nonresident taxpayer, the credit
under this subsection shall be allowed against the tax determined under
subsections (a) through (d) of section six hundred one. The amount of
the credit shall not exceed the tax determined under such subsections
for the taxable year reduced by the credit permitted under subsection
(b) of this section.
(4) Part-year residents. In the case of a part-year resident taxpayer,
the credit under this subsection shall be allowed against the tax
determined under subsections (a) through (d) of section six hundred one
reduced by the credit permitted under subsection (b) of this section,
and any excess credit after such application shall be allowed against
the taxes imposed by sections six hundred two and six hundred three. Any
remaining excess, after such application, shall be refunded as provided
in paragraph two hereof, provided, however, that any overpayment under
such paragraph shall be limited to the amount of the remaining excess
multiplied by a fraction, the numerator of which is federal adjusted
gross income for the period of residence, computed as if the taxable
year for federal income tax purposes were limited to the period of
residence, and the denominator of which is federal adjusted gross income
for the taxable year.
(5) In the case of a husband and wife who file a joint federal return,
but who are required to determine their New York taxes separately, the
credit allowed pursuant to this subsection may only be applied against
the tax imposed on the spouse with the lower taxable income, computed
without regard to such credit. In the case of a husband and wife who are
not required to file a federal return, the credit under this subsection
shall be allowed only if such taxpayers file a joint New York income tax
return.
* NB Applies to taxable years beginning on or after January 1, 1996
(c-1) Empire state child credit. (1) A resident taxpayer shall be
allowed a credit as provided herein equal to the greater of one hundred
dollars times the number of qualifying children of the taxpayer or the
applicable percentage of the child tax credit allowed the taxpayer under
section twenty-four of the internal revenue code for the same taxable
year. Provided, however, in the case of a taxpayer whose federal
adjusted gross income exceeds the applicable threshold amount set forth
by section 24(b)(2) of the Internal Revenue Code, the credit shall only
be equal to the applicable percentage of the child tax credit allowed
the taxpayer under section 24 of the Internal Revenue Code. For the
purposes of this subsection, a qualifying child shall be a child who
meets the definition of qualified child under section 24(c) of the
internal revenue code and is at least four years of age. The applicable
percentage shall be thirty-three percent.
(2) If the amount of the credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
shall be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(3) In the case of a husband and wife who file a joint federal return,
but who are required to determine their New York taxes separately, the
credit allowed pursuant to this subsection may be applied against the
tax imposed of either or divided between them as they may elect.
(d) Earned income credit. (1) General. A taxpayer shall be allowed a
credit as provided herein equal to (i) the applicable percentage of the
earned income credit allowed under section thirty-two of the internal
revenue code for the same taxable year, (ii) reduced by the credit
permitted under subsection (b) of this section.
The applicable percentage shall be (i) seven and one-half percent for
taxable years beginning in nineteen hundred ninety-four, (ii) ten
percent for taxable years beginning in nineteen hundred ninety-five,
(iii) twenty percent for taxable years beginning after nineteen hundred
ninety-five and before two thousand, (iv) twenty-two and one-half
percent for taxable years beginning in two thousand, (v) twenty-five
percent for taxable years beginning in two thousand one, (vi)
twenty-seven and one-half percent for taxable years beginning in two
thousand two, and (vii) thirty percent for taxable years beginning in
two thousand three and thereafter. Provided, however, that if the
reversion event, as defined in this paragraph, occurs, the applicable
percentage shall be twenty percent for taxable years ending on or after
the date on which the reversion event occurred. The reversion event
shall be deemed to have occurred on the date on which federal action,
including but not limited to, administrative, statutory or regulatory
changes, materially reduces or eliminates New York state's allocation of
the federal temporary assistance for needy families block grant, or
materially reduces the ability of the state to spend federal temporary
assistance for needy families block grant funds for the earned income
credit or to apply state general fund spending on the earned income
credit toward the temporary assistance for needy families block grant
maintenance of effort requirement, and the commissioner of the office of
temporary and disability assistance shall certify the date of such event
to the commissioner of taxation and finance, the director of the
division of the budget, the speaker of the assembly and the temporary
president of the senate.
(2) Residents. In the case of a resident taxpayer, the credit under
this subsection shall be allowed against the taxes imposed by this
article for the taxable year reduced by the credits permitted by this
article. If the credit exceeds the tax as so reduced, the taxpayer may
receive, and the comptroller, subject to a certificate of the
commissioner, shall pay as an overpayment, without interest, the amount
of such excess.
(3) Nonresidents. In the case of a nonresident taxpayer, the credit
under this subsection shall be allowed against the tax determined under
subsections (a) through (d) of section six hundred one. The amount of
the credit shall not exceed the tax determined under such subsections
for the taxable year reduced by the credits permitted under subsections
(b), (c) and (m) of this section.
(4) Part-year residents. In the case of a part-year resident taxpayer,
the credit under this subsection shall be allowed against the tax
determined under subsections (a) through (d) of section six hundred one
reduced by the credits permitted under subsections (b), (c) and (m) of
this section, and any excess credit after such application shall be
allowed against the taxes imposed by sections six hundred two and six
hundred three. Any remaining excess, after such application, shall be
refunded as provided in paragraph two hereof, provided, however, that
any overpayment under such paragraph shall be limited to the amount of
the remaining excess multiplied by a fraction, the numerator of which is
federal adjusted gross income for the period of residence, computed as
if the taxable year for federal income tax purposes were limited to the
period of residence, and the denominator of which is federal adjusted
gross income for the taxable year.
(5) Husband and wife. In the case of a husband and wife who file a
joint federal return but who are required to determine their New York
taxes separately, the credit allowed pursuant to this subsection may be
applied against the tax of either or divided between them as they may
elect.
(6) Notification. The commissioner shall periodically, but not less
than every three years, make efforts to alert taxpayers that may be
currently eligible to receive the credit provided under this subsection,
and the credit provided under any local law enacted pursuant to
subsection (f) of section thirteen hundred ten of this chapter, as to
their potential eligibility. In making the determination of whether a
taxpayer may be eligible for such credit, the commissioner shall use
such data as may be appropriate and available, including, but not
limited to, data available from the United States Department of
Treasury, Internal Revenue Service and New York state income tax returns
for preceding tax years.
(7) Reports. The commissioner shall prepare a preliminary written
report after July thirty-first and a final written report after December
thirty-first of each calendar year, which shall contain statistical
information regarding the credits granted on or before such dates under
this subsection, and under any local law enacted pursuant to subsection
(f) of section thirteen hundred ten of this chapter, during such
calendar year. Copies of these reports shall be submitted by such
commissioner to the governor, the temporary president of the senate, the
speaker of the assembly, the chairman of the senate finance committee
and the chairman of the assembly ways and means committee within sixty
days of July thirty-first with respect to the preliminary report, and
within forty-five days of December thirty-first with respect to the
final report, and copies of such reports with respect to credits under
any local law enacted pursuant to subsection (f) of section thirteen
hundred ten of this chapter shall be submitted in addition to the mayor
and the speaker of the council of the city where such a local law is in
effect. Such reports shall contain, but need not be limited to, the
number of credits and the average amount of such credits allowed; and of
those, the number of credits and the average amount of such credits
allowed to taxpayers in each county; and of those, the number of credits
and the average amount of such credits allowed to taxpayers whose earned
income falls within ranges, determined by the commissioner, of not more
than four thousand dollars; and of those, the number of credits and the
average amount of such credits allowed to taxpayers who file under the
different statuses set forth in subsections (a), (b) and (c) of section
six hundred one of this part; and of those, the number of credits and
the average amount of such credits allowed to taxpayers whose number of
qualifying children falls within the categories set forth in such
section thirty-two of the internal revenue code.
(d-1) Enhanced earned income tax credit. (1) A taxpayer described in
paragraph two of this subsection shall be allowed a credit equal to the
greater of:
(A) twenty percent of the amount of the earned income tax credit that
would have been allowed to the taxpayer under section 32 of the internal
revenue code, absent the application of section 32(b)(2)(B) of such
code, if the child or children described in subparagraph (C) of
paragraph two of this subsection satisfied the requirements for a
qualifying child set forth in section 32(c)(3) of such code, provided
however, that the credit shall be calculated as if the taxpayer had only
one child; or
(B) the product of two and one-half and the amount of the earned
income tax credit that would have been allowed to the taxpayer under
section 32 of the internal revenue code, if the taxpayer satisfied the
eligibility requirements set forth in section 32(c)(1)(A)(ii) of such
code.
(2) To be allowed a credit under this subsection, a taxpayer must
satisfy all of the following qualifications.
(A) The taxpayer must be a resident taxpayer.
(B) The taxpayer must have attained the age of eighteen.
(C) The taxpayer must be the parent of a minor child or children with
whom the taxpayer does not reside.
(D) The taxpayer must have an order requiring him or her to make child
support payments, which are payable through a support collection unit
established pursuant to section one hundred eleven-h of the social
services law, which order must have been in effect for at least one-half
of the taxable year.
(E) The taxpayer must have paid an amount in child support in the
taxable year at least equal to the amount of current child support due
during the taxable year for every order requiring him or her to make
child support payments.
(3) If the amount of the credit allowed under this subsection shall
exceed the taxpayer's tax for such year, the excess shall be treated as
an overpayment of tax to be credited or refunded in accordance with the
provisions of section six hundred eighty-six of this article, provided,
however, that no interest shall be paid thereon.
(4) No claim for credit under this subsection shall be allowed unless
the department has verified, from information provided by the office of
temporary and disability assistance, that a taxpayer has satisfied the
qualifications set forth in subparagraphs (C), (D) and (E) of paragraph
two of this subsection. The office of temporary and disability
assistance shall provide to the department by January fifteenth of each
year information applicable for the immediately preceding tax year
necessary for the department to make such verification. Such information
shall be provided in the manner and form agreed upon by the department
and such office. If a taxpayer's claim for a credit under this
subsection is disallowed because the taxpayer has not satisfied the
qualifications set forth in subparagraphs (C), (D) and (E) of paragraph
two of this subsection, the taxpayer may request a review of those
qualifications by the support collection unit established pursuant to
section one hundred eleven-h of the social services law through which
the child support payments were payable. The support collection unit
shall transmit the result of that review to the office of temporary and
disability assistance on a form developed by such office. Such office
shall then transmit such result to the department in a manner agreed
upon by the department and such office.
(5) A taxpayer shall not be allowed multiple credits under this
subsection for a taxable year even if such taxpayer has more than one
child or has more than one order requiring him or her to make child
support payments.
(6) If a credit is allowed under this subsection and the taxpayer is
also allowed a credit under subsection (d) of this section, the taxpayer
shall only be allowed to claim one credit.
(7) In the report prepared pursuant to paragraph seven of subsection
(d) of this section, the commissioner shall include statistical
information concerning the credit allowed pursuant to this subsection.
Such information shall be limited to the number of credits and the
average amount of such credits allowed; and of those, the number of
credits and the average amounts of such credits allowed to taxpayers in
each county.
* (e) Real property tax circuit breaker credit. (1) For purposes of
this subsection:
(A) "Qualified taxpayer" means a resident individual of the state who
has occupied the same residence for six months or more of the taxable
year, and is required or chooses to file a return under this article.
(B) "Household" or "members of the household" means a qualified
taxpayer and all other persons, not necessarily related, who have the
same residence and share its furnishings, facilities and accommodations.
Such terms shall not include a tenant, subtenant, roomer or boarder who
is not related to the qualified taxpayer in any degree specified in
paragraphs one through eight of subsection (a) of section one hundred
fifty-two of the internal revenue code. Provided, however, no person may
be a member of more than one household at one time.
(C) "Household gross income" means the aggregate adjusted gross income
of all members of the household for the taxable year as reported for
federal income tax purposes, or which would be reported as adjusted
gross income if a federal income tax return were required to be filed,
with the modifications in subsection (b) of section six hundred twelve
but without the modifications in subsection (c) of such section, plus
any portion of the gain from the sale or exchange of property otherwise
excluded from such amount; earned income from sources without the United
States excludable from federal gross income by section nine hundred
eleven of the internal revenue code; support money not included in
adjusted gross income; nontaxable strike benefits; supplemental security
income payments; the gross amount of any pension or annuity benefits to
the extent not included in such adjusted gross income (including, but
not limited to, railroad retirement benefits and all payments received
under the federal social security act and veterans' disability
pensions); nontaxable interest received from the state of New York, its
agencies, instrumentalities, public corporations, or political
subdivisions (including a public corporation created pursuant to
agreement or compact with another state or Canada); workers'
compensation; the gross amount of "loss-of-time" insurance; and the
amount of cash public assistance and relief, other than medical
assistance for the needy, paid to or for the benefit of the qualified
taxpayer or members of his household. Household gross income shall not
include surplus foods or other relief in kind or payments made to
individuals because of their status as victims of Nazi persecution as
defined in P.L. 103-286. Provided, further, household gross income shall
only include all such income received by all members of the household
while members of such household.
(D) "Residence" means a dwelling in this state, whether owned or
rented, and so much of the land abutting it, not exceeding one acre, as
is reasonably necessary for use of the dwelling as a home, and may
consist of a part of a multi-dwelling or multi-purpose building
including a cooperative or condominium, and rental units within a single
dwelling. Residence includes a trailer or mobile home, used exclusively
for residential purposes and defined as real property pursuant to
paragraph (g) of subdivision twelve of section one hundred two of the
real property tax law.
(E) "Qualifying real property taxes" means all real property taxes,
special ad valorem levies and special assessments, exclusive of
penalties and interest, levied on the residence of a qualified taxpayer
and paid during the taxable year. In addition, for taxable years
beginning after December thirty-first, nineteen hundred eighty-four, a
qualified taxpayer may elect to include any additional amount that would
have been levied in the absence of an exemption from real property
taxation pursuant to section four hundred sixty-seven of the real
property tax law. If tenant-stockholders in a cooperative housing
corporation have met the requirements of section two hundred sixteen of
the internal revenue code by which they are allowed a deduction for real
estate taxes, the amount of taxes so allowable, or which would be
allowable if the taxpayer had filed returns on a cash basis, shall be
qualifying real property taxes. If a residence is owned by two or more
individuals as joint tenants or tenants in common, and one or more than
one individual is not a member of the household, qualifying real
property taxes is that part of such taxes on the residence which
reflects the ownership percentage of the qualified taxpayer and members
of his household. If a residence is an integral part of a larger unit,
qualifying real property taxes shall be limited to that amount of such
taxes paid as may be reasonably apportioned to such residence. If a
household owns and occupies two or more residences during different
periods in the same taxable year, qualifying real property taxes shall
be the sum of the prorated qualifying real property taxes attributable
to the household during the periods such household occupies each of such
residences. If the household owns and occupies a residence for part of
the taxable year and rents a residence for part of the same taxable
year, it may include both the proration of qualifying real property
taxes on the residence owned and the real property tax equivalent with
respect to the months the residence is rented. Provided, however, for
purposes of the credit allowed under this subsection, qualifying real
property taxes may be included by a qualified taxpayer only to the
extent that such taxpayer or the spouse of such taxpayer occupying such
residence for six months or more of the taxable year owns or has owned
the residence and paid such taxes.
(F) "Real property tax equivalent" means twenty-five percent of the
adjusted rent actually paid in the taxable year by a household solely
for the right of occupancy of its New York residence for the taxable
year. If (i) a residence is rented to two or more individuals as
cotenants, or such individuals share in the payment of a single rent for
the right of occupancy of such residence, and (ii) each of such
individuals is a member of a different household, one or more of which
individuals shares such residence, real property tax equivalent is that
portion of twenty-five percent of the adjusted rent paid in the taxable
year which reflects that portion of the rent attributable to the
qualified taxpayer and the members of his household.
(G) "Adjusted rent" means rental paid for the right of occupancy of a
residence, excluding charges for heat, gas, electricity, furnishings and
board. Where charges for heat, gas, electricity, furnishing or board are
included in rental but where such charges and the amount thereof are not
separately set forth in a written rental agreement, for purposes of
determining adjusted rent the qualified taxpayer shall reduce rental
paid as follows:
(i) For heat, or heat and gas, deduct fifteen percent of rental paid.
(ii) For heat, gas and electricity, deduct twenty percent of rental
paid.
(iii) For heat, gas, electricity and furnishings, deduct twenty-five
percent of rental paid.
(iv) For heat, gas, electricity, furnishings and board, deduct fifty
percent of rental paid.
If the tax commission determines that the adjusted rent shown on the
return is excessive, the tax commission may reduce such rent, for
purposes of the computation of the credit, to an amount substantially
equivalent to rent for a comparable accommodation.
(2) A qualified taxpayer shall be allowed a credit as provided in
paragraph three hereof against the taxes imposed by this article reduced
by the credits permitted by this article. If the credit exceeds the tax
as so reduced for such year under this article the qualified taxpayer
may receive, and the comptroller, subject to a certificate of the state
tax commission, shall pay as an overpayment, without interest, any
excess between such tax as so reduced and the amount of the credit. If a
qualified taxpayer is not required to file a return pursuant to section
six hundred fifty-one, a qualified taxpayer may nevertheless receive and
the comptroller, subject to a certificate of the state tax commission,
shall pay as an overpayment the full amount of the credit, without
interest.
(3) Determination of credit. (A) For qualified taxpayers who have
attained the age of sixty-five years before the beginning of or during
the taxable year the amount of the credit allowable under this
subsection shall be fifty percent, or in the case of a qualified
taxpayer who has elected to include an additional amount pursuant to
subparagraph (E) of paragraph one of this subsection, twenty-five
percent, of the excess of real property taxes or the excess of real
property tax equivalent determined as follows:
Excess real property taxes are the
excess of real property tax
equivalent or the excess of
qualifying
real property taxes over the follow-
If household gross income for ing percentage of household gross
the taxable year is: income:
_____________________________ ____________________________________
$3,000 or less 3 1/2
Over $3,000 but not over $5,000 4
Over $5,000 but not over $7,000 4 1/2
Over $7,000 but not over $9,000 5
Over $9,000 but not over $11,000 5 1/2
Over $11,000 but not over $14,000 6
Over $14,000 but not over $18,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit
determined under this subparagraph may not exceed the amount determined
in accordance with the following table:
If household gross income The maximum credit is:
for the taxable year is:
_________________________________ ____________________________________
$1,000 or less $375
Over $1,000 but not over $2,000 $358
Over $2,000 but not over $3,000 $341
Over $3,000 but not over $4,000 $324
Over $4,000 but not over $5,000 $307
Over $5,000 but not over $6,000 $290
Over $6,000 but not over $7,000 $273
Over $7,000 but not over $8,000 $256
Over $8,000 but not over $9,000 $239
Over $9,000 but not over $10,000 $222
Over $10,000 but not over $11,000 $205
Over $11,000 but not over $12,000 $188
Over $12,000 but not over $13,000 $171
Over $13,000 but not over $14,000 $154
Over $14,000 but not over $15,000 $137
Over $15,000 but not over $16,000 $120
Over $16,000 but not over $17,000 $103
Over $17,000 but not over $18,000 $ 86
(B) For all other qualified taxpayers the amount of the credit
allowable under this subsection shall be fifty percent of excess real
property taxes or the excess of the real property tax equivalent
determined as follows:
Excess real property taxes are the
excess of real property tax
equivalent or the excess of
qualifying
real property taxes over the follow-
If household gross income for ing percentage of household gross
the taxable year is: income:
_____________________________ ____________________________________
$3,000 or less 3 1/2
Over $3,000 but not over $5,000 4
Over $5,000 but not over $7,000 4 1/2
Over $7,000 but not over $9,000 5
Over $9,000 but not over $11,000 5 1/2
Over $11,000 but not over $14,000 6
Over $14,000 but not over $18,000 6 1/2
Notwithstanding the foregoing provisions, the maximum credit
determined under this subparagraph may not exceed the amount determined
in accordance with the following table:
If household gross income for
the taxable year is: The maximum credit is:
______________________________ ____________________________________
$1,000 or less $75
Over $1,000 but not over $2,000 $73
Over $2,000 but not over $3,000 $71
Over $3,000 but not over $4,000 $69
Over $4,000 but not over $5,000 $67
Over $5,000 but not over $6,000 $65
Over $6,000 but not over $7,000 $63
Over $7,000 but not over $8,000 $61
Over $8,000 but not over $9,000 $59
Over $9,000 but not over $10,000 $57
Over $10,000 but not over $11,000 $55
Over $11,000 but not over $12,000 $53
Over $12,000 but not over $13,000 $51
Over $13,000 but not over $14,000 $49
Over $14,000 but not over $15,000 $47
Over $15,000 but not over $16,000 $45
Over $16,000 but not over $17,000 $43
Over $17,000 but not over $18,000 $41
(4) If a qualified taxpayer occupies a residence for a period of less
than twelve months during the taxable year or occupies two or more
residences during different periods in such taxable year, the credit
allowed pursuant to this subsection shall be computed in such manner as
the tax commission may, by regulation, prescribe in order to properly
reflect the credit or portion thereof attributable to such residence or
residences and such period or periods.
(5) The tax commission may prescribe that the credit under this
subsection shall be determined in whole or in part by the use of tables
prescribed by such commission. Such tables shall set forth the credit to
the nearest dollar.
(6) Only one credit per household and per qualified taxpayer shall be
allowed per taxable year under this subsection. When two or more members
of a household are able to meet the qualifications for a qualified
taxpayer, the credit shall be equally divided between or among such
individuals unless such individuals file with the tax commission a
written agreement among such individuals setting forth a different
division. Where two or more members of a household are able to meet the
qualifications of a qualified taxpayer and one of them is sixty-five
years of age or more, the credit which may be taken shall be the credit
applicable to individuals who have attained the age of sixty-five years.
(A) Provided, however, where a joint income tax return has been filed
pursuant to the provisions of section six hundred fifty-one by a
qualified taxpayer and his spouse (or where both spouses are qualified
taxpayers and have filed such joint return), the credit, or the portion
of the credit if divided, to which the husband and wife are entitled
shall be applied against the tax of both spouses and any overpayment
shall be made to both spouses.
(B) Where any return required to be filed pursuant to the provisions
of section six hundred fifty-one is combined with any return of tax
imposed pursuant to the authority of this chapter or any other law if
such tax is administered by the tax commission, the credit or the
portion of the credit if divided, allowed to the qualified taxpayer may
be applied by the tax commission toward any liability for the
aforementioned taxes.
(7) No credit shall be granted under this subsection:
(A) If household gross income for the taxable year exceeds eighteen
thousand dollars.
(B) To a property owner unless: (i) the property is used for
residential purposes, (ii) not more than twenty percent of the rental
income, if any, from the property is from rental for nonresidential
purposes and (iii) the property is occupied as a residence in whole or
in part by one or more of the owners of the property.
(C) To a property owner who owns real property, the full value of
which exceeds eighty-five thousand dollars.
(D) To a tenant if the adjusted rent for the residence exceeds four
hundred fifty dollars per month on average.
(E) To an individual with respect to whom a deduction under subsection
(c) of section one hundred fifty-one of the internal revenue code is
allowable to another taxpayer for the taxable year.
(F) With respect to a residence that is wholly exempted from real
property taxation.
(G) To an individual who is not a resident individual of the state for
the entire taxable year.
(8) The right to claim a credit or the portion of a credit, where such
credit has been divided under this subsection, shall be personal to the
qualified taxpayer and shall not survive his death, but such right may
be exercised on behalf of a claimant by his legal guardian or attorney
in fact during his lifetime.
(9) Returns. If a qualified taxpayer is not required to file a return
pursuant to section six hundred fifty-one, a claim for a credit may be
taken on a return filed with the tax commission within three years from
the time it would have been required that a return be filed pursuant to
such section had the qualified taxpayer had a taxable year ending on
December thirty-first. Returns under this paragraph shall be in such
form as shall be prescribed by the tax commission, which shall make
available such forms and instructions for filing such returns.
(10) Proof of claim. The tax commission may require a qualified
taxpayer to furnish the following information in support of his claim
for credit under this subsection: household gross income, rent paid,
name and address of owner or managing agent of the property rented, real
property taxes levied or that would have been levied in the absence of
an exemption from real property tax pursuant to section four hundred
sixty-seven of the real property tax law, the names of members of the
household and other qualifying taxpayers occupying the same residence
and their identifying numbers including social security numbers,
household gross income, size and nature of property claimed as residence
and all other information which may be required by the tax commission to
determine the credit.
(11) Administration. The provisions of this article, including the
provisions of section six hundred fifty-three, six hundred fifty-eight,
and six hundred fifty-nine and the provisions of part six of this
article relating to procedure and administration, including the judicial
review of the decisions of the tax commission, except so much of section
six hundred eighty-seven which permits a claim for credit or refund to
be filed after the period provided for in paragraph nine of this
subsection and except sections six hundred fifty-seven, six hundred
eighty-eight and six hundred ninety-six, shall apply to the provisions
of this subsection in the same manner and with the same force and effect
as if the language of those provisions had been incorporated in full
into this subsection and had expressly referred to the credit allowed or
returns filed under this subsection, except to the extent that any such
provision is either inconsistent with a provision of this subsection or
is not relevant to this subsection. As used in such sections and such
part, the term "taxpayer" shall include a qualified taxpayer under this
subsection and, notwithstanding the provisions of subsection (e) of
section six hundred ninety-seven, where a qualified taxpayer has
protested the denial of a claim for credit under this subsection and the
time to file a petition for redetermination of a deficiency or for
refund has not expired, he shall, subject to such conditions as may be
set by the tax commission, receive such information (A) which is
contained in any return filed under this article by a member of his
household for the taxable year for which the credit is claimed, and (B)
which the tax commission finds is relevant and material to the issue of
whether such claim was properly denied. The tax commission shall have
the authority to promulgate such rules and regulations as may be
necessary for the processing, determination and granting of credits and
refunds under this subsection.
(12) The commissioner may request the cooperation of the state board
of real property services in carrying out the provisions of this
subsection. Such board may promulgate such rules and regulations,
subject to prior consultation with the commissioner, as may be necessary
to provide such assistance with respect to the determination of full
value of real property for purposes of the credit allowed under this
subsection.
(13) Notwithstanding any other provision of this article, the credit
allowed under this subsection shall be determined after the
determination and application of any other credits permitted under the
provisions of this article.
(14) The commissioner of taxation and finance shall prepare a
preliminary written report after July thirty-first and a final written
report after December thirty-first of each calendar year, which shall
contain statistical information regarding the credits granted on or
before such dates under this subsection during such calendar year.
Copies of these reports shall be submitted by such commissioner to the
governor, the temporary president of the senate, the speaker of the
assembly, the chairman of the senate finance committee and the chairman
of the assembly ways and means committee within sixty days of July
thirty-first with respect to the preliminary report, and within
forty-five days of December thirty-first with respect to the final
report. Such reports shall contain, but need not be limited to, the
number of credits and the average amount of such credits allowed; and of
those, the number of credits and the average amount of such credits
allowed to qualified taxpayers in each county; and of those, the number
of credits and the average amount of such credits allowed to qualified
taxpayers whose household gross income falls within each of the
household gross income ranges set forth in paragraph three of this
subsection; and of those, the number of credits and the average amount
of such credits allowed to qualified taxpayers whose credit amount falls
within credit amount ranges set forth in twenty-five dollar increments.
* NB Applies to taxable years beginning after 1986
(e-1) Volunteer firefighters' and ambulance workers' credit. (1) For
taxable years beginning on and after January first, two thousand seven,
a resident taxpayer who serves as an active volunteer firefighter as
defined in subdivision one of section two hundred fifteen of the general
municipal law or as a volunteer ambulance worker as defined in
subdivision fourteen of section two hundred nineteen-k of the general
municipal law shall be allowed a credit against the tax imposed by this
article equal to two hundred dollars. In order to receive this credit a
volunteer firefighter or volunteer ambulance worker must have been
active for the entire taxable year for which the credit is sought.
(2) If a taxpayer receives a real property tax exemption relating to
such service under title two of article four of the real property tax
law, such taxpayer shall not be eligible for this credit.
(3) In the case of a husband and wife who file a joint return and who
both individually qualify for the credit under this subsection, the
amount of the credit allowed shall be four hundred dollars.
(4) If the amount of the credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
shall be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(f) Credit for the special additional mortgage recording tax. * (1)
For taxable years beginning before nineteen hundred eighty-eight, a
taxpayer shall be allowed a credit, to be credited against the tax
imposed by this article, after allowance of any other credit provided
under this section and any credits permitted under sections six hundred
twenty, six hundred twenty-one and six hundred forty of this article.
The amount of the credit shall be the amount of the special additional
mortgage recording tax paid by the taxpayer pursuant to the provisions
of subdivision one-a of section two hundred fifty-three of this chapter
on mortgages recorded on and after January first, nineteen hundred
seventy-nine. Provided, however, no credit shall be allowed with respect
to a mortgage of real property principally improved or to be improved by
one or more structures containing in the aggregate not more than six
residential dwelling units, each dwelling unit having its own separate
cooking facilities, where the real property is located in one or more of
the counties comprising the metropolitan commuter transportation
district and where the mortgage is recorded on or after May first,
nineteen hundred eighty-seven. Provided, however, no credit shall be
allowed with respect to a mortgage of real property principally improved
or to be improved by one or more structures containing in the aggregate
not more than six residential dwelling units, each dwelling unit having
its own separate cooking facilities, where the real property is located
in the county of Erie and where the mortgage is recorded on or after May
first, nineteen hundred eighty-seven.
* NB Applies to taxable years beginning prior to 1988
* (1) For taxable years beginning before nineteen hundred
eighty-eight, a taxpayer shall be allowed a credit, to be credited
against the tax imposed by this article, after allowance of any other
credit provided under this section and any credits permitted under
sections six hundred twenty, six hundred twenty-one and six hundred
thirty-five of this article. The amount of the credit shall be the
amount of the special additional mortgage recording tax paid by the
taxpayer pursuant to the provisions of subdivision one-a of section two
hundred fifty-three of this chapter on mortgages recorded on and after
January first, nineteen hundred seventy-nine. Provided, however, no
credit shall be allowed with respect to a mortgage of real property
principally improved or to be improved by one or more structures
containing in the aggregate not more than six residential dwelling
units, each dwelling unit having its own separate cooking facilities,
where the real property is located in one or more of the counties
comprising the metropolitan commuter transportation district and where
the mortgage is recorded on or after May first, nineteen hundred
eighty-seven. Provided, however, no credit shall be allowed with respect
to a mortgage of real property principally improved or to be improved by
one or more structures containing in the aggregate not more than six
residential dwelling units, each dwelling unit having its own separate
cooking facilities, where the real property is located in the county of
Erie and where the mortgage is recorded on or after May first, nineteen
hundred eighty-seven.
* NB Applies to taxable years beginning after 1987
(2) In no event shall the amount of the credit herein provided for be
allowed in excess of the taxpayer's tax for such year. However, if the
amount of credit otherwise allowable under this subsection for any
taxable year results in such excess amount, any amount of credit not
deductible in such taxable year may be carried over to the following
year or years and may be deducted from the taxpayer's tax for such year
or years.
(3)(A) Notwithstanding the provisions of paragraphs one and two of
this subsection, for taxable years beginning after two thousand three, a
taxpayer shall be allowed a credit, to be credited against the tax
imposed by this article, equal to the amount of the special additional
mortgage recording tax paid by the taxpayer or, in the case of a
taxpayer who is a partner in a partnership, the partner's pro rata share
of the amount of the special additional mortgage recording tax paid by
the partnership, pursuant to the provisions of subdivision one-a of
section two hundred fifty-three of this chapter on mortgages recorded on
and after January first, two thousand four. Provided, however, no credit
shall be allowed with respect to a mortgage of real property principally
improved by one or more structures containing in the aggregate not more
than six residential dwelling units, each dwelling unit having its own
separate cooking facilities, where the real property is located in one
or more of the counties comprising the metropolitan commuter
transportation district and where the mortgage is recorded on or after
January first, two thousand four. Provided further, no credit shall be
allowed with respect to a mortgage of real property principally improved
by one or more structures containing in the aggregate not more than six
residential dwelling units, each dwelling unit having its own separate
cooking facilities, where the real property is located in Erie county
and where the mortgage is recorded on or after January first, two
thousand four.
(B) If the amount of credit allowable under this paragraph for any
taxable year exceeds the taxpayer's tax for such year, any amount of
credit exceeding such tax may be carried over to the following year or
years and may be deducted from the taxpayer's tax for such year or
years. Provided further, such taxpayer may elect to treat such unused
amount of credit as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article except that no interest shall be paid on such overpayment.
(g) Credit for solar and wind energy systems. (1) A taxpayer shall be
allowed a credit for taxable years beginning on or after January first,
nineteen hundred eighty-one and ending before December thirty-first,
nineteen hundred eighty-six against the tax imposed by this article for
the purchase and installation of a solar or wind energy system by a
taxpayer in his principal residence, if such residence is located within
the state. The amount of the credit shall be fifty-five percent of the
expenditure incurred in purchasing and installing any such system or
combination thereof, but not to exceed the maximum credit of two
thousand seven hundred fifty dollars.
(2) A solar or wind system is a system whose original use begins with
the taxpayer; which meets the eligibility criteria, if any, prescribed
by the department of taxation and finance; and which is:
(A) an active solar energy system which shall mean an arrangement or
combination of components designed to provide heating, cooling, hot
water or electricity through the process of collecting solar radiation,
converting it to another form of energy, storing the converted energy,
protecting against unnecessary dissipation and distributing the
converted energy, and which requires external mechanical power for
operation. This term shall not include pipes, controls, insulation or
other equipment which are part of the conventional heating, cooling,
insulation or electrical system of a building; nor shall it include any
expenditure allocable to a swimming pool used as a storage medium;
(B) a passive solar energy system, which shall mean a system which
relies upon the original or retrofitted design and elements of a
building to enhance the use of natural forces including solar radiation,
winds and night-time coolness to provide heating, cooling or hot water
through the process of collecting solar radiation, converting it to
another form of energy, storing the converted energy, protecting against
unnecessary dissipation and distributing the converted energy, and which
is not primarily dependent upon mechanical power for operation. This
term shall not include pipes, controls, insulation or other equipment
which are part of the conventional heating, cooling or insulation system
of the building; nor shall it include any expenditure allocable to a
swimming pool used as a storage medium; or
(C) a wind energy system, which shall mean an arrangement or
combination of components, including power conditioning equipment,
designed to provide electricity or mechanical energy through the process
of converting wind energy into mechanical and/or electric energy, and
storing or distributing such energy.
(3) Where a solar or wind energy system is purchased and installed by
a condominium management association or a cooperative housing
corporation, a taxpayer who is a member of the condominium management
association or who is a tenant-stockholder in the cooperative housing
corportion may for the purpose of this subsection claim a proportionate
share of the total expense as the expenditure for the purposes of the
credit attributable to his principal residence.
(4) Where a solar or wind system is purchased and installed in a
principal residence shared by two or more taxpayers the amount of the
credit allowable under this subsection for each such taxpayer shall be
prorated according to the percentage of the total expenditure for such
system contributed by each taxpayer.
(5) To the extent that a federal income tax credit shall apply to
expenditures eligible for a credit under this subsection, the credit
provided in this subsection shall be reduced so that the combined credit
shall not exceed fifty-five percent of such expenditures or six thousand
seven hundred fifty dollars, whichever is less.
(6) If the amount of credit allowable under this subsection shall
exceed the taxpayer's tax for such year, the excess may be carried over
to the following year or years and may be deducted from the taxpayer's
tax for such year or years.
(7) If all or any part of the credit provided for under this
subsection was allowed or carried over from a prior taxable year or
years, a taxpayer shall reduce the allowable credit for additional
qualifying expenditures in a subsequent tax year by the amount of the
credit previously allowed or carried over; provided however that a
credit previously allowed or carried over from a prior taxable year or
years shall not be taken into account in determining the allowable
credit for the purchase and installation of a solar or wind energy
system in a subsequent principal residence.
(8) For the purpose of determining the amount of the actual
expenditure incurred in purchasing and installing a solar or wind energy
system, the amount of any federal, state or local grant received by the
taxpayer, which was used for the purchase and/or installation of such
system and which was not included in the gross income of the taxpayer,
shall not be taken into account.
* (9) Notwithstanding any other provision of law, if a credit is
allowed under this subsection for a renewable energy system with respect
to any property, the increase in the basis of such property which would
but for this subsection result from such expenditure shall be reduced by
the amount of the credit allowed.
* NB Applies to taxable years prior to December 31, 1986
* (9) Notwithstanding any other provision of law, if a credit is
allowed under this subsection for a renewable energy system with respect
to any property, the increase in the basis of such property which would
but for this subsection result from such expenditure shall be reduced by
the amount of the credit allowed. When the sale or other disposition of
such property results in the nonrecognition of gain under section one
thousand thirty-four of the internal revenue code, a like reduction
shall be made to the basis of the new residence, if such residence is
located within the state.
* NB Applies to taxable years beginning after December 31, 1986
(g-1) Solar energy system equipment credit. (1) General. An individual
taxpayer shall be allowed a credit against the tax imposed by this
article equal to twenty-five percent of qualified solar energy system
equipment expenditures. This credit shall not exceed three thousand
seven hundred fifty dollars for qualified solar energy equipment placed
in service before September first, two thousand six, and five thousand
dollars for qualified solar energy equipment placed in service on or
after September first, two thousand six.
(2) Qualified solar energy system equipment expenditures. (A) The term
"qualified solar energy system equipment expenditures" means
expenditures for the purchase of solar energy system equipment which is
installed in connection with residential property which is (i) located
in this state and (ii) which is used by the taxpayer as his or her
principal residence at the time the solar energy system equipment is
placed in service.
(B) Such qualified expenditures shall include expenditures for
materials, labor costs properly allocable to on-site preparation,
assembly and original installation, architectural and engineering
services, and designs and plans directly related to the construction or
installation of the solar electric generating equipment.
(C) Such qualified expenditures shall not include interest or other
finance charges.
(3) Solar energy system equipment. The term "solar energy system
equipment" shall mean an arrangement or combination of components
utilizing solar radiation, which, when installed in a residence,
produces energy designed to provide heating, cooling, hot water or
electricity for use in such residence. Such arrangement or components
shall not include equipment connected to solar energy system equipment
that is a component of part or parts of a non-solar energy system or
which uses any sort of recreational facility or equipment as a storage
medium. Solar energy system equipment that generates electricity for use
in a residence must conform to applicable requirements set forth in
section sixty-six-j of the public service law.
(4) Multiple taxpayers. Where solar energy system equipment is
purchased and installed in a principal residence shared by two or more
taxpayers, the amount of the credit allowable under this subsection for
each such taxpayer shall be prorated according to the percentage of the
total expenditure for such solar energy system equipment contributed by
each taxpayer.
(5) Grants. For purposes of determining the amount of the expenditure
incurred in purchasing and installing solar energy system equipment, the
amount of any federal, state or local grant received by the taxpayer,
which was used for the purchase and/or installation of such equipment
and which was not included in the federal gross income of the taxpayer,
shall not be included in the amount of such expenditures.
(6) When credit allowed. The credit provided for herein shall be
allowed with respect to the taxable year, commencing after nineteen
hundred ninety-seven, in which the solar energy system equipment is
placed in service.
(7) Carryover of credit. If the amount of the credit, and carryovers
of such credit, allowable under this subsection for any taxable year
shall exceed the taxpayer's tax for such year, such excess amount may be
carried over to the five taxable years next following the taxable year
with respect to which the credit is allowed and may be deducted from the
taxpayer's tax for such year or years.
(g-2) Fuel cell electric generating equipment credit. (1) General. An
individual taxpayer shall be allowed a credit against the tax imposed by
this article equal to twenty percent of qualified fuel cell electric
generating equipment expenditures. This credit shall not exceed one
thousand five hundred dollars per generating unit with respect to any
taxable year. The credit provided for herein shall be allowed with
respect to the taxable year in which the fuel cell electric generating
equipment is placed in service.
(2) Qualified fuel cell electric generating equipment expenditures.
(A) Qualified fuel cell electric generating equipment expenditures are
the costs, incurred on or after July first, two thousand five,
associated with the purchase of on-site electricity generation systems
utilizing proton exchange membrane fuel cells, providing a rated
baseload capacity of no less than one kilowatt and no more than one
hundred kilowatts of electricity, which are located in this state at the
time the qualified fuel cell electric generating equipment is placed in
service.
(B) Qualified fuel cell electric generating equipment expenditures
shall also include costs, incurred on or after July first, two thousand
five, for materials, labor for on-site preparation, assembly and
original installation, engineering services, designs and plans directly
related to construction or installation and utility compliance costs.
(C) Such qualified expenditures shall not include interest or other
finance charges.
(3) Multiple taxpayers. Where fuel cell electric generating equipment
is purchased and installed in a principal residence shared by two or
more taxpayers, the amount of the credit allowable under this subsection
for each such taxpayer shall be prorated according to the percentage of
the total expenditure for such fuel cell electric generating equipment
contributed by each taxpayer.
(4) Grants. For purposes of determining the amount of the expenditure
incurred in purchasing and installing fuel cell electric generating
equipment, the amount of any federal, state or local grant received by
the taxpayer, which was used for the purchase and/or installation of
such equipment and which was not included in the federal gross income of
the taxpayer, shall not be included in the amount of such expenditures.
(5) Carryover of credit. If the amount of the credit, and carryovers
of such credit, allowable under this subsection for any taxable year
shall exceed the taxpayer's tax for such year, such excess amount may be
carried over to the five taxable years next following the taxable year
with respect to which the credit is allowed and may be deducted from the
taxpayer's tax for such year or years.
(h) Research and development tax credit. * (1) For taxable years
commencing prior to January first, nineteen hundred eighty-seven, a
taxpayer shall be allowed a credit against the tax imposed by this
article after allowance of any other credit provided under this section
and any credits permitted under sections six hundred twenty, six hundred
twenty-one and six hundred forty of this article. The amount of the
credit shall be ten percent of the cost or other basis for federal
income tax purposes of tangible personal property, including buildings
and other structural components of buildings, described in paragraph two
of this subsection acquired, constructed or reconstructed, or erected
after June thirtieth, nineteen hundred eighty-two.
* NB Applies to taxable years prior to 1988
* (1) For taxable years commencing prior to January first, nineteen
hundred eighty-seven, a taxpayer shall be allowed a credit against the
tax imposed by this article after allowance of any other credit provided
under this section and any credits permitted under sections six hundred
twenty, six hundred twenty-one and six hundred thirty-five of this
article. The amount of the credit shall be ten percent of the cost or
other basis for federal income tax purposes of tangible personal
property, including buildings and other structural components of
buildings, described in paragraph two of this subsection acquired,
constructed or reconstructed, or erected after June thirtieth, nineteen
hundred eighty-two.
* NB Applies to taxable years beginning after 1987
* (2) A credit shall be allowed under this section with respect to
tangible personal property and other tangible property, including
buildings and structural components of buildings which are: depreciable
pursuant to section one hundred sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one hundred seventy-nine (d) of the internal
revenue code, have a situs in this state and are used or are to be used
for purposes of research and development in the experimental or
laboratory sense. Such purposes shall not be deemed to include the
ordinary testing or inspection of materials or products for quality
control, efficiency surveys, management studies, consumer surveys,
advertising, promotions, or research in connection with literary,
historical or similar projects.
* NB Applies to property to which the amendments made by section 201
of Public Law 99-514 apply
(3) A taxpayer shall not be allowed a credit under this subsection
with respect to any property described in paragraphs one and two of this
subsection, if such property qualifies for the modification allowed
under either paragraph three or paragraph four of subsection (g) of
section six hundred twelve whether or not such amount shall have been
subtracted, or if a credit is taken pursuant to subsection (a) of this
section. Provided, however, with respect to property which qualifies
under either clause (A), (B) or (C) of paragraph four of subsection (g)
because such property was ordered on or before December thirty-first,
nineteen hundred sixty-eight, but with respect to which no expenditure
has been paid or incurred at such date, the taxpayer may elect to
subtract the amount allowable under clause (A), (B) or (C) or may take
the credit provided by this subsection, but not both.
(4) A taxpayer shall not be allowed a credit under this subsection
with respect to tangible personal property and other tangible property,
including buildings and structural components of buildings, which it
leases to any other person or corporation. For purposes of the preceding
sentence, any contract or agreement to lease or rent or for a license to
use such property shall be considered a lease. Provided, however, in
determining whether a taxpayer shall be allowed a credit under this
subsection with respect to such property, any election made with respect
to such property pursuant to the provisions of paragraph eight of
subsection (f) of section one hundred sixty-eight of the internal
revenue code, as such paragraph was in effect for agreements entered
into prior to January first, nineteen hundred eighty-four, shall be
disregarded.
(5) If the amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
may be carried over to the following year or years and may be deducted
from the taxpayer's tax for such year or years but in no event shall
such credit be carried over to taxable years commencing on or after
January first, nineteen hundred ninety-four.
(6) * (A) With respect to property which is depreciable pursuant to
section one hundred sixty-seven of the internal revenue code but is not
subject to the provisions of section one hundred sixty-eight of such
code, and which is disposed of or ceases to be in qualified use prior to
the end of the taxable year in which the credit is to be taken, the
amount of the credit shall be that portion of the credit provided for in
this subsection which represents the ratio which the months of qualified
use bear to the months of useful life. If property on which credit has
been taken is disposed of or ceases to be in qualified use prior to the
end of its useful life, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. Provided, however, if such property is disposed of or
ceases to be in qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not be necessary to add
back the credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to the months
of useful life. For purposes of this subparagraph, useful life of
property shall be the same as the taxpayer uses for depreciation
purposes when computing his federal income tax liability.
* NB Applies to property to which the amendments made by section 201
of Public Law 99-514 apply
* (B) Except with respect to that property to which subparagraph (D)
of this paragraph applies, with respect to three-year property, as
defined in subsection (e) of section one hundred sixty-eight of the
internal revenue code, which is disposed of or ceases to be in qualified
use prior to the end of the taxable year in which the credit is to be
taken, the amount of the credit shall be that portion of the credit
provided for in this subsection which represents the ratio which the
months of qualified use bear to thirty-six. If property on which credit
has been taken is disposed of or ceases to be in qualified use prior to
the end of thirty-six months, the difference between the credit taken
and the credit allowed for actual use must be added back in the year of
disposition. The amount of credit allowed for actual use shall be
determined by multiplying the original credit by the ratio which the
months of qualified use bear to thirty-six.
* NB Applies to property to which the amendments made by section 201
of Public Law 99-514 apply
* (C) Except with respect to that property to which subparagraph (D)
of this paragraph applies, with respect to property subject to the
provisions of section one hundred sixty-eight of the internal revenue
code other than three-year property as defined in subsection (e) of such
section one hundred sixty-eight, which is disposed of or ceases to be in
qualified use prior to the end of the taxable year in which the credit
is to be taken, the amount of the credit shall be that portion of the
credit provided for in this subsection which represents the ratio which
the months of qualified use bear to sixty. If property on which credit
has been taken is disposed of or ceases to be in qualified use prior to
the end of sixty months, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. The amount of credit allowed for actual use shall be
determined by multiplying the original credit by the ratio which the
months of qualified use bear to sixty.
* NB Applies to property to which the amendments made by section 201
of Public Law 99-514 apply for taxable years commencing after December
31, 1986
* (D) With respect to any property to which section one hundred
sixty-eight of the internal revenue code applies, which is a building or
a structural component of a building and which is disposed of or ceases
to be in qualified use prior to the end of the taxable year in which the
credit is to be taken, the amount of the credit shall be that portion of
the credit provided for in this subsection which represents the ratio
which the months of qualified use bear to the total number of months
over which the taxpayer chooses to deduct the property under the
internal revenue code. If property on which credit has been taken is
disposed of or ceases to be in qualified use prior to the end of the
period over which the taxpayer chooses to deduct the property under the
internal revenue code, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. Provided, however, if such property is disposed of or
ceases to be in qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not be necessary to add
back the credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to the total
number of months over which the taxpayer chooses to deduct the property
under the internal revenue code.
* NB Applies to property to which the amendments made by section 201
of Public Law 99-514 apply
(i) S corporation credits.
(1) For purposes of determining the application under this section of
the credit provisions enumerated in the following table, a shareholder
of a New York S corporation:
(A) shall be treated as the taxpayer with respect to his or her pro
rata share of the corresponding credit base of such corporation,
determined for the corporation's taxable year ending with or within the
shareholder's taxable year and
(B) shall be treated as the owner of a new business with respect to
such share if the corporation qualifies as a new business pursuant to
paragraph (j) of subdivision twelve of section two hundred ten of this
chapter.
The corporation's
With respect to the credit base under
following credit section two hundred ten
under this section: or section fourteen
hundred fifty-six of this
chapter is:
Investment tax credit Investment credit base
under subsection (a) or qualified
rehabilitation
expenditures under
subdivision twelve of
section two hundred ten
Empire zone Cost or other basis
investment tax credit under subdivision
under subsection (j) twelve-B
of section two hundred
ten
Empire zone Eligible wages under
wage tax credit subdivision nineteen of
under subsection (k) section two hundred ten
or subsection (e) of
section fourteen hundred
fifty-six
Empire zone Qualified investments
capital tax credit and contributions under
under subsection (l) subdivision twenty of
section two hundred ten
or subsection (d) of
section fourteen hundred
fifty-six
Agricultural property tax Allowable school
credit under subsection (n) district property taxes under
subdivision twenty-two of
section two hundred ten
Credit for employment Qualified first-year wages or
of persons with dis- qualified second-year wages
abilities under under subdivision
subsection (o) twenty-three of section
two hundred ten
or subsection (f)
of section fourteen
hundred fifty-six
Employment incentive Applicable investment credit
credit under subsec- base under subdivision
tion (a-1) twelve-D of section two
hundred ten
Empire zone Applicable investment
employment credit under sub-
incentive credit under division twelve-C
subsection (j-1) of section two hundred ten
Alternative fuels credit Cost under subdivision
under subsection (p) twenty-four of section two
hundred ten
Qualified emerging Applicable credit base
technology company under subdivision twelve-E
employment credit of section two hundred ten
under subsection (q)
Qualified emerging Qualified investments under
technology company subdivision twelve-F of
capital tax credit section two hundred ten
under subsection (r)
Credit for purchase of an Cost of an automated
automated external defibrillator external defibrillator under
under subsection (s) subdivision twenty-five of
section two hundred ten
or subsection (j) of section
fourteen hundred fifty-six
Low-income housing Credit amount under
credit under subsection (x) subdivision thirty
of section two hundred ten or
subsection (l) of section
fourteen hundred fifty-six
Credit for transportation Amount of credit under sub-
improvement contributions division thirty-two of section
under subsection (z) two hundred ten or subsection
(n) of section fourteen
hundred fifty-six
*IMB credit for energy Amount of credit
taxes under sub- under subdivision
section (t-1) twenty-six-a of
section two hundred ten
QEZE credit for real property Amount of credit under
taxes under subsection (bb) subdivision twenty-seven of
section two hundred ten or
subsection (o) of section
fourteen hundred fifty-six
QEZE tax reduction credit Amount of benefit period
under subsection (cc) factor, employment increase factor
and zone allocation
factor (without regard
to pro ration) under
subdivision twenty-eight of
section two hundred ten or
subsection (p) of section
fourteen hundred fifty-six
and amount of tax factor
as determined under
subdivision (f) of section sixteen
Green building credit Amount of green building credit
under subsection (y) under subdivision thirty-one
of section two hundred ten
or subsection (m) of section
fourteen hundred fifty-six
Credit for long-term Qualified costs under
care insurance premiums subdivision twenty-five-a of
under subsection (aa) section two hundred ten
or subsection (k) of section
fourteen hundred fifty-six
Brownfield redevelopment Amount of credit
credit under subsection under subdivision
(dd) thirty-three of section
two hundred ten
or subsection (q) of
section fourteen hundred
fifty-six
Remediated brownfield Amount of credit under
credit for real property subdivision thirty-four
taxes for qualified of section two hundred
sites under subsection ten or subsection (r) of
(ee) section fourteen hundred
fifty-six
Environmental Amount of credit under
remediation subdivision thirty-five of
insurance credit under section two hundred
subsection (ff) ten or subsection
(s) of section
fourteen hundred
fifty-six
*Empire state film production Amount of credit for qualified
credit under subsection (gg) production costs in production
of a qualified film under
subdivision thirty-six of
section two hundred ten
Qualified emerging Qualifying expenditures and
technology company facilities, development activities under
operations and training credit subdivision twelve-G of section
under subsection (nn) two hundred ten
Security training tax Amount of credit
credit under under subdivision thirty-seven
subsection (ii) of section two hundred ten or
under subsection (t) of
section fourteen hundred fifty-six
Credit for qualified fuel Amount of credit under
cell electric generating equipment subdivision thirty-seven
expenditures under subsection (g-2) of section two hundred ten
or subsection (t) of
section fourteen hundred
fifty-six
*Empire state commercial production Amount of credit for qualified
credit under subsection (jj) production costs in production
of a qualified commercial under
subdivision thirty-eight of sec-
tion two hundred ten
Biofuel production Amount of credit
tax credit under under subdivision
subsection (jj) thirty-eight of
section two hundred ten
*IMB tax credit expires January 1, 2007
*Empire state film production credit expires August 20, 2008
*Empire state commercial production credit is repealed December 31,
2011
(2) The reduction of a shareholder's proportionate interest in the
corporation shall be treated as a disposition of property for which a
redetermination of credit is required under subsections (a), (j) and (l)
of this section.
(3) Transition provisions relating to S corporation credits allowed
for taxable years beginning before nineteen hundred ninety-four. (A)
Credit carryover. Any excess credit under subparagraph (A) of paragraph
one of this subsection, as it was in effect for taxable years beginning
before nineteen hundred ninety-four, may be carried over to the
shareholder's following year or years and may be deducted from such
shareholder's tax for such year or years, except that any excess credit
attributable to subdivision twelve of section two hundred ten of this
chapter shall in no event be carried over beyond the ten taxable years
next following the taxable year of origin.
(B) Credit recapture. Any redetermination of credit required by this
subsection as it was in effect for taxable years beginning before
nineteen hundred ninety-four, upon disposition or cessation of qualified
use of property pursuant to paragraph (g) of subdivision twelve,
paragraph (f) of subdivision twelve-B or paragraph (f) of subdivision
eighteen of section two hundred ten of this chapter shall be attributed
in pro rata shares to the shareholders who were allowed credit under
this subsection with respect to such property, and the reduction of a
shareholder's proportionate stock interest shall be treated as a
disposition of property for which a redetermination of credit under such
paragraphs is required with respect to such shareholder.
(4) Transition provisions relating to credit for special additional
mortgage recording tax. In the case of the special additional mortgage
recording tax credit, in addition to any carryover thereof under
paragraph three of this subsection (relating to carryover from taxable
years of the shareholder beginning before nineteen hundred ninety-four),
there also shall be allowed a credit for such tax which is due and paid
by an S corporation in a taxable year of the corporation beginning in
nineteen hundred ninety-three, which year ends within the shareholder's
taxable year beginning in nineteen hundred ninety-four. Any such credit,
and carryover thereof, shall be allowed as provided under this
subsection as it was in effect for taxable years beginning before
nineteen hundred ninety-four.
(j) Empire zone investment tax credit (EZ-ITC). (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 such credit shall be eight percent of the cost or other basis for
federal income tax purposes of tangible personal property and other
tangible property, including buildings and structural components of
buildings, described in paragraph two of this subsection, which is
located within an empire zone designated as such pursuant to article
eighteen-B of such law, but only if the acquisition, construction,
reconstruction or erection of such property occurred or was commenced on
or after the date of such designation and prior to the expiration
thereof. Provided, however, that in the case of an acquisition,
construction, reconstruction or erection which was commenced during such
period and continued or completed subsequently, the credit shall be
eight percent of the portion of the cost or other basis for federal
income tax purposes attributable to such period, which portion shall be
ascertained by multiplying such cost or basis by a fraction the
numerator of which shall be the expenditures paid or incurred during
such period for such purposes and the denominator of which shall be the
total of all expenditures paid or incurred for such acquisition,
construction, reconstruction or erection.
* (2) A credit shall be allowed under this subsection with respect to
tangible personal property and other tangible property, including
buildings and structural components of buildings which: (A) are
depreciable pursuant to section one hundred sixty-seven of the internal
revenue code, (B) have a useful life of four years or more, (C) are
acquired by purchase as defined in section one hundred seventy-nine (d)
of the internal revenue code, (D) have a situs in an empire zone
designated as such pursuant to article eighteen-B of the general
municipal law, and (E) are (i) principally used by the taxpayer in the
production of goods by manufacturing, processing, assembling, refining,
mining, extracting, farming, agriculture, horticulture, floriculture,
viticulture or commercial fishing, (ii) industrial waste treatment
facilities or air pollution control facilities used in the taxpayer's
trade or business, (iii) research and development property, (iv)
principally used in the ordinary course of the taxpayer's trade or
business as a broker or dealer in connection with the purchase or sale
(which shall include but not be limited to the issuance, entering into,
assumption, offset, assignment, termination, or transfer) of stocks,
bonds or other securities as defined in section four hundred
seventy-five (c)(2) of the Internal Revenue Code, or of commodities as
defined in section four hundred seventy-five (e) of the Internal Revenue
Code, or (v) principally used in the ordinary course of the taxpayer's
trade or business of providing investment advisory services for a
regulated investment company as defined in section eight hundred
fifty-one of the Internal Revenue Code, or lending, loan arrangement or
loan origination services to customers in connection with the purchase
or sale (which shall include but not be limited to the issuance,
entering into, assumption, offset, assignment, termination, or transfer)
of securities as defined in section four hundred seventy-five (c)(2) of
the Internal Revenue Code. For purposes of clauses (iv) and (v) of this
subparagraph, property purchased by a taxpayer affiliated with a
regulated broker or dealer is allowed a credit under this subsection if
the property is used by its affiliated regulated broker or dealer in
accordance with this subsection. Provided, however, a taxpayer shall not
be allowed the credit provided by clauses (iv) and (v) of this
subparagraph unless all or a substantial portion of the employees
performing the administrative and support functions resulting from or
related to the qualifying uses of such equipment are located in this
state. For purposes of this subsection, the term "goods" shall not
include electricity. For purposes of this paragraph, manufacturing shall
mean the process of working raw materials into wares suitable for use or
which gives new shapes, new quality or new combination to matter which
already has gone through some artificial process by the use of
machinery, tools, appliances and other similar equipment. Property used
in the production of goods shall include machinery, equipment or other
tangible property which is principally used in the repair and service of
other machinery, equipment or other tangible property used principally
in the production of goods and shall include all facilities used in the
production operation, including storage of material to be used in
production and of the products that are produced. For purposes of this
paragraph, the terms "research and development property", "industrial
waste treatment facilities", and "air pollution control facilities"
shall have the meanings ascribed thereto by clauses (ii), (iii) and
(iv), respectively, of subparagraph (B) of paragraph two of subsection
(a) of this section, and the provisions of subparagraph (C) of such
paragraph two shall apply.
* NB Applies to property to which the amendments made by section 201
of Public Law 99-514 apply
(3) A taxpayer shall not be allowed a credit under this subsection
with respect to any tangible personal property and other tangible
property, including buildings and structural components of buildings,
which it leases to any other person or corporation except where a
taxpayer leases property to an affiliated regulated broker or dealer
that uses such property in accordance with clause (iv) or (v) of
subparagraph (E) of paragraph two of this subsection. For purposes of
the preceding sentence, any contract or agreement to lease or rent or
for a license to use such property shall be considered a lease.
Provided, however, in determining whether a taxpayer shall be allowed a
credit under this subsection with respect to such property, any election
made with respect to such property pursuant to the provisions of
paragraph eight of subsection (f) of section one hundred sixty-eight of
the internal revenue code, as such paragraph was in effect for
agreements entered into prior to January first, nineteen hundred
eighty-four, shall be disregarded.
(4) If the amount of credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
may be carried over to the following year or years and may be deducted
from the taxpayer's tax for such year or years. In lieu of carrying over
any such excess, a taxpayer who qualifies as an owner of a new business
for purposes of paragraph ten of subsection (a) of this section may, at
his option, receive fifty percent of such excess as a refund. Any refund
paid pursuant to this paragraph shall be deemed to be a refund of an
overpayment of tax as provided in section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(5) At the option of the taxpayer, air or water pollution control
facilities which qualify for elective modifications under subsection (h)
of section six hundred twelve, or research and development facilities
which qualify for elective modification under paragraphs three and four
of subsection (g) of section six hundred twelve, or property which
qualifies for the credit provided under subsection (a) or (h) of this
section may be treated as property principally used by the taxpayer in
the production of goods by manufacturing, processing, assembling,
mining, refining, extracting, farming, agriculture, horticulture,
floriculture, viticulture, or commercial fishing, provided the property
otherwise qualifies under paragraph two of this subsection, in which
event a deduction shall not be allowed under such subsection (h) or such
paragraphs three and four of subsection (g) and a credit shall not be
allowed under such subsection (a) or (h).
* (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 section which represents the ratio which the months of qualified
use bear to the months of useful life. If the 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 subsection. 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 subsection, useful life of property
shall be the same as the taxpayer uses for depreciation purposes when
computing his federal income tax liability.
(B) Except with respect to that property to which subparagraph (D) of
this paragraph applies, with respect to three-year property, as defined
in subsection (e) of section one hundred sixty-eight of the internal
revenue code, which is disposed of or ceases to be in qualified use
prior to the end of the taxable year in which the credit is to be taken,
the amount of the credit shall be that portion of the credit provided
for in this subsection which represents the ratio which the months of
qualified use bear to thirty-six. If property on which credit has been
taken is disposed of or ceases to be in qualified use prior to the end
of thirty-six months, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. The amount of credit allowed for actual use shall be
determined by multiplying the original credit by the ratio which the
months of qualified use bear to thirty-six.
(C) Except with respect to that property to which subparagraph (D) of
this paragraph applies, with respect to property subject to the
provisions of section one hundred sixty-eight of the internal revenue
code other than three-year property as defined in subsection (e) of such
section one hundred sixty-eight of the internal revenue code which is
disposed of or ceases to be in qualified use prior to the end of the
taxable year in which the credit is to be taken, the amount of the
credit shall be that portion of the credit provided for in this
subsection which represents the ratio which the months of qualified use
bear to sixty. If property on which credit has been taken is disposed of
or ceases to be in qualified use prior to the end of sixty months, the
difference between the credit taken and the credit allowed for actual
use must be added back in the year of disposition. The amount of credit
allowed for actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to sixty.
(D) With respect to any property to which section one hundred
sixty-eight of the internal revenue code applies, which is a building or
a structural component of a building and which is disposed of or ceases
to be in qualified use prior to the end of the taxable year in which the
credit is to be taken, the amount of the credit shall be that portion of
the credit provided for in this subsection which represents the ratio
which the months of qualified use bear to the total number of months
over which the taxpayer chooses to deduct the property under the
internal revenue code. If property on which credit has been taken is
disposed of or ceases to be in qualified use prior to the end of the
period over which the taxpayer chooses to deduct the property under the
internal revenue code, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. Provided, however, if such property is disposed of or
ceases to be in qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not be necessary to add
back the credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to the total
number of months over which the taxpayer chooses to deduct the property
under the internal revenue code.
(E) For purposes of this paragraph, disposal or cessation of qualified
use shall not be deemed to have occurred solely by reason of the
termination or expiration of an empire zone's designation as such.
(F)(i) For purposes of this paragraph, the decertification of a
business enterprise with respect to an empire zone shall constitute a
disposal or cessation of qualified use of the property on which the
credit was taken which is located in the zone to which the
decertification applies, on the effective date of such decertification.
(ii) Where a business enterprise has been decertified based on a
finding pursuant to clause one, two, or five of subdivision (a) of
section nine hundred fifty-nine of the general municipal law, the amount
required to be added back by reason of this paragraph shall be augmented
by an amount equal to the product of the amount of credit, with respect
to property which is disposed of or ceases to be in qualified use, which
was deducted from the taxpayer's tax otherwise due under this article
for all prior taxable years (subject to the limit set forth in this
subparagraph) and the underpayment rate of interest (without regard to
compounding) set by the commissioner of taxation and finance pursuant to
subdivision (j) of section six hundred ninety-seven of this chapter, in
effect on the last day of the taxable year. The limit shall be (I) the
amount of credit, with respect to the property which is disposed of or
ceases to be in qualified use, which was deducted from the taxpayer's
tax otherwise due under this article for all prior taxable years,
reduced (but not below zero) by (II) the credit allowed for actual use.
For purposes of this subparagraph, the attribution to specific property
of credit amount deducted from tax shall be established in accordance
with the date of placement in service of such property in the empire
zone.
(iii) In no event shall the amount of the credit allowed pursuant to
this subsection be rendered, solely by reason of clause (i) of this
subparagraph, less than the amount of the credit to which the taxpayer
would otherwise be entitled under subsection (a) of this section.
(iv) Notwithstanding any other provision of this subsection, in the
case of a business enterprise which has been decertified, any amount of
credit allowed with respect to the property of such business enterprise
located in the zone to which the decertification applies which is
carried over pursuant to paragraph four of this subsection shall not be
carried over beyond the seventh taxable year next following the taxable
year with respect to which the credit provided for in this subsection
was allowed.
(G) For purposes of this paragraph, where a credit is allowed with
respect to an air pollution control facility on the basis of a
certificate of compliance issued pursuant to the environmental
conservation law and the certificate is revoked pursuant to subdivision
three of section 19-0309 of the environmental conservation law, such
revocation shall constitute a disposal or cessation of qualified use,
except with respect to property contained in or comprising such facility
which is described in clause (i), (ii) or (iii) of subparagraph (E) of
paragraph two of this subsection other than as part of or comprising an
air pollution control facility. Also for purposes of this paragraph, the
use of an air pollution control facility or an industrial waste
treatment facility for the primary purpose of salvaging materials which
are usable in the manufacturing process or are marketable shall
constitute a cessation of qualified use, except with respect to property
contained in or comprising such facility which is described in clause
(i) or (iii) of subparagraph (E) of paragraph two of this subsection.
(H) Except as provided in this subparagraph, this paragraph shall not
apply to a credit allowed by this subsection to a taxpayer that is a
partner in a partnership in the case of manufacturing property;
provided, at the time such property was placed in service by such
partnership in an empire zone the basis for federal income tax purposes
of such property (or a project that includes such property) equaled or
exceeded three hundred million dollars and such partner owned his or her
partnership interest for at least three years from the date such
property was placed in service. If such property ceases to be in
qualified use after it is placed in service, this paragraph shall apply
to such partner in the year such property ceases to be in qualifying
use.
* NB Applies to property to which the amendments made by section 201
of Public Law 99-514 apply
(j-1) Empire zone employment incentive credit. (1) Where a taxpayer is
allowed a credit under subsection (j) of this section, the taxpayer
shall be allowed a credit for each of the three years next succeeding
the taxable year for which the credit under such subsection (j) is
allowed, with respect to such property, whether or not deductible in
such taxable year or in subsequent taxable years pursuant to paragraph
four of subsection (j) of this section, of thirty percent of the credit
allowable under such subsection (j); provided, however, that the credit
allowable under this subsection for any taxable year shall only be
allowed if the average number of employees employed by the taxpayer in
the empire zone, designated pursuant to article eighteen-B of the
general municipal law, in which such property is located during such
taxable year is at least one hundred one percent of the average number
of employees employed by the taxpayer in such empire zone or, where
applicable, in the geographic area subsequently constituting such zone,
during the taxable year immediately preceding the taxable year for which
the credit under such subsection (j) is allowed and provided, further,
that in the case of a new business, the credit allowable under this
subsection for any taxable year shall be allowed if the average number
of employees employed in such empire zone in such taxable year is at
least one hundred one percent of the average number of such employees
during the taxable year in which the credit under such subsection (j) is
allowed.
(2) The average number of employees employed in an empire zone, or,
where applicable, in the geographic area subsequently constituting such
zone, in a taxable year shall be computed by ascertaining the number of
such employees within such zone, or, where applicable, in the geographic
area subsequently constituting such zone, employed by the taxpayer on
the thirty-first day of March, the thirtieth day of June, the thirtieth
day of September and the thirty-first day of December in the taxable
year, by adding together the number of employees ascertained in each of
such dates and dividing the sum so obtained by the number of such
abovementioned dates occurring within the taxable year.
(3) If the amount of credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
may be carried over to the following year or years and may be deducted
from the taxpayer's tax for such year or years. In lieu of carrying over
any such excess, a taxpayer who qualified as an owner of a new business
for purposes of paragraph ten of subsection (a) of this section may, at
his option, receive fifty percent of such excess as a refund. Any refund
paid pursuant to this paragraph shall be deemed to be a refund of an
overpayment of tax as provided in section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(k) 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 such
credit shall be as prescribed in paragraph four of this subsection.
(2) For the purposes of this subsection, the following terms shall
have the following meanings: (A) "Empire zone wages" means wages paid by
the taxpayer for full-time employment 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 provisions 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 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 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 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 subsection. 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
(i) the product of three thousand dollars and the average number of
individuals employed full-time by the taxpayer, computed pursuant to the
provisions of subparagraph (C) of paragraph two of this subsection, 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
(ii) the product of fifteen hundred dollars and the average number of
individuals (excluding individuals described in subparagraph (i) of this
paragraph) employed full-time by the taxpayer, computed pursuant to the
provisions of subparagraph (C) of paragraph two of this subsection, who
received empire zone wages for more than half of the taxable year.
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 the tax imposed under section six
hundred one computed without regard to any credit provided for under
this article.
(iii) 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 (i) or subparagraph (ii) of this paragraph,
unless such related person was never allowed a credit under this
subsection with respect to such employees. For 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.
(iv) 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
(i) or (ii) 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.
(5) If the amount of the credit and carryovers of such credit allowed
under this subsection for any taxable year shall exceed the taxpayer's
tax for such year, the excess, as well as any part of the credit or
carryovers of such credit, or both, which may not be deducted from the
tax otherwise due by reason of the final sentence in paragraph four
hereof, may be carried over to the following year or years and may be
deducted from the taxpayer's tax for such year or years. In lieu of
carrying over any such excess, a taxpayer who qualifies as an owner of a
new business for purposes of paragraph ten of subsection (a) of this
section may, at his option, receive fifty percent of such excess as a
refund. Any refund paid pursuant to this paragraph shall be deemed to be
a refund of an overpayment of tax as provided in section six hundred
eighty-six of this article, provided, however, that no interest shall be
paid thereon.
(l) Empire zone capital tax 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 of two hundred fifty or fewer,
computed pursuant to the provisions of subparagraph (C) of paragraph two
of subsection (k) 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 allowed under this subsection for any taxable year
shall not exceed the tax imposed by section six hundred one of this
article for the taxable year, reduced by the credits permitted under
subsections (b) and (c) of this section and sections six hundred twenty,
six hundred twenty-one and six hundred thirty-five of this article, nor
may any unused credit be carried over to the following year or years. In
addition, no taxpayer shall be allowed such credit, or such credits with
respect to more than one year, taken in the aggregate, of more than one
hundred thousand dollars. In addition, such credit may not exceed fifty
percent of the tax imposed under section six hundred one of this article
computed without regard to any credit provided for by this section.
* NB Applies to taxable years beginning on or after January 1, 1986
* (2) (A) If the amount of the credit and carryovers of such credit
allowed under this subsection for any taxable year shall exceed the
taxpayer's tax for such year, 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 subparagraph, 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 the tax
imposed under section six hundred one computed without regard to any
credit provided for by this section.
(B) In the case of a husband or wife who is required to file a
separate return, the limitation provided for in paragraph one of this
subsection shall be fifty thousand dollars in lieu of one hundred
thousand dollars and one hundred fifty thousand dollars in lieu of three
hundred thousand dollars, unless the spouse of the taxpayer has no
credit allowable under this subsection for the taxable year of such
spouse which ends within or with the taxpayer's taxable year.
(C) In the case of an estate or trust, the limitation provided for in
paragraph one of this subsection shall be reduced to an amount which
bears the same ratio to one hundred thousand dollars and an amount which
bears the same ratio to three hundred thousand dollars as the portion of
the income of the estate or trust which is not allocated to
beneficiaries bears to the total income of the estate or trust.
* NB Applies to taxable years beginning after 1986
(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 subsection is disposed of, the
taxpayer's New York taxable 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 subsection, 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.
(m) Excess deductions credit. (1) General. For taxable years beginning
in nineteen hundred ninety-five, an excess deductions credit shall be
allowed against the tax determined under subsections (a) through (d) of
section six hundred one of this article. The credit shall be allowed to
an individual taxpayer whose New York itemized deduction determined
under section six hundred fifteen (whether or not the taxpayer elects
the New York itemized deduction for the taxable year) exceeds the base
amount determined under paragraph two hereof. The credit shall not
exceed the tax determined under subsections (a) through (d) of section
six hundred one for the taxable year, reduced by the credits permitted
under subsection (c) of this section and sections six hundred twenty and
six hundred twenty-one of this article.
(2) Base amount. The base amount shall be determined by the taxpayer's
standard deduction status under section six hundred fourteen (whether or
not the taxpayer employs the standard deduction for the taxable year) as
follows:
If the taxpayer's standard The base amount is:
deduction status is:
Unmarried individual who is
not a head of household nor a
surviving spouse nor an
individual whose federal
exemption amount is zero $6,000
Husband and wife whose New York
taxable income is determined
jointly, or a surviving spouse $9,500
Head of household $7,000
Married individual filing a
separate New York return $4,750
(3) Credit amount.
(A) Married individuals filing joint returns and surviving spouses.
The amount of the credit allowed pursuant to this subsection for married
individuals filing jointly under subsection (b) of section six hundred
fifty-one and for a surviving spouse shall be:
If New York taxable income is: The credit is the
following percentage of
New York taxable income:
Not over $11,500 0.57%
Over $11,500 but not over $17,500 0.51%
Over $17,500 but not over $24,100 0.36%
Over $24,100 but not over $31,500 0.26%
Over $31,500 but not over $35,500 0.16%
Over $35,500 but not over $42,000 0.11%
Over $42,000 but not over $49,000 0.06%
Over $49,000 0.00%
(B) Heads of households. The amount of the credit allowed pursuant to
this subsection for a head of household shall be:
If New York taxable income is: The credit is the
following percentage of
New York taxable income:
Not over $7,600 0.57%
Over $7,600 but not over $11,700 0.51%
Over $11,700 but not over $16,400 0.36%
Over $16,400 but not over $20,500 0.26%
Over $20,500 but not over $23,800 0.16%
Over $23,800 but not over $28,650 0.11%
Over $28,650 but not over $33,400 0.06%
Over $33,400 0.00%
(C) Unmarried individuals and married individuals filing separate
returns. The amount of the credit allowed pursuant to this subsection
for an individual who is not a married individual filing jointly under
subsection (b) of section six hundred fifty-one nor a head of a
household nor a surviving spouse shall be:
If New York taxable income is: The credit is the
following percentage of
New York taxable income:
Not over $5,600 0.57%
Over $5,600 but not over $8,600 0.51%
Over $8,600 but not over $12,000 0.36%
Over $12,000 but not over $15,700 0.26%
Over $15,700 but not over $17,600 0.16%
Over $17,600 but not over $21,000 0.11%
Over $21,000 but not over $24,500 0.06%
Over $24,500 0.00%
(n) Agricultural property tax credit. (1) General. In the case of a
taxpayer who is an eligible farmer or an eligible farmer who has paid
taxes pursuant to a land contract, there shall be allowed a credit for
the allowable school district property taxes. The term "allowable school
district property taxes" means the school district property taxes paid
during the taxable year on qualified agricultural property, subject to
the acreage limitation provided in paragraph five of this subsection and
the income limitation provided in paragraph six of this subsection. Such
credit shall be allowed against the taxes imposed by this article for
the taxable year reduced by the credits permitted by this article. If
the credit exceeds the tax as so reduced, the taxpayer may receive, and
the comptroller, subject to a certificate of the commissioner, shall pay
as an overpayment, without interest, the amount of such excess.
(2) Eligible farmer. For purposes of this subsection, the term
"eligible farmer" means a taxpayer whose federal gross income from
farming for the taxable year is at least two-thirds of excess federal
gross income. The term "eligible farmer" also includes an individual
other than the taxpayer of record for qualified agricultural land who
has paid the school district property taxes on such land pursuant to a
contract for the future purchase of such land; provided that such
individual has a federal gross income from farming for the taxable year
which is at least two-thirds of excess federal gross income; and
provided further that, in determining such income eligibility, a
taxpayer may, for any taxable year, use the average of such federal
gross income from farming for that taxable year and such income for the
two consecutive taxable years immediately preceding such taxable year.
Excess federal gross income means the amount of federal gross income
from all sources for the taxable year reduced by the sum (not to exceed
thirty thousand dollars) of those items included in federal gross income
which consist of (i) earned income, (ii) pension payments, including
social security payments, (iii) interest, and (iv) dividends. For
purposes of this paragraph, the term "earned income" shall mean wages,
salaries, tips and other employee compensation, and those items of gross
income which are includible in the computation of net earnings from
self-employment.
(3) School district property taxes. For purposes of this subsection,
the term "school district property taxes" means all property taxes,
special ad valorem levies and special assessments, exclusive of
penalties and interest, levied for school district purposes on the
qualified agricultural property (A) owned by the taxpayer or (B) owned
by the father, mother, grandfather, grandmother, brother or sister of
the taxpayer and a written agreement expressing intent to eventually
purchase the land has been entered into.
(4) Qualified agricultural property. For purposes of this subsection,
the term "qualified agricultural property" means land located in this
state which is used in agricultural production, and land improvements,
structures and buildings (excluding buildings used for the taxpayer's
residential purpose) located on such land which are used or occupied to
carry out such production. Qualified agricultural property also includes
land set aside or retired under a federal supply management or soil
conservation program or land that at the time it becomes subject to a
conservation easement, as defined under subsection (kk) of this section,
met the requirements under this paragraph.
(5) Acreage limitation. (A) Eligible taxes. In the event that the
qualified agricultural property owned by the taxpayer includes land in
excess of the base acreage as provided in this paragraph, the amount of
school district property taxes eligible for credit under this subsection
shall be that portion of the school district property taxes which bears
the same ratio to the total school district property taxes paid during
the taxable year, as the acreage allowable under this paragraph bears to
the entire acreage of such land.
(B) Allowable acreage. The allowable acreage is the sum of the base
acreage set forth below and fifty percent of the incremental acreage.
The incremental acreage is the excess of the entire acreage of qualified
agricultural land owned by the taxpayer over the base acreage. Except as
provided in subparagraph (C) of this paragraph:
For taxable years beginning: The base acreage is:
in 1997 100
after 1997 but before 2006 250
2006 and thereafter 350
For taxable years beginning after two thousand, total base acreage may
be increased by any acreage enrolled or participating during the taxable
year in a federal environmental conservation acreage reserve program
pursuant to title three of the federal agriculture improvement and
reform act of nineteen hundred ninety-six.
(C) Base acreage of related persons. Where the taxpayer and one or
more related persons each own qualified agricultural property on the
first day of March of any year, the base acreage under subparagraph (B)
of this paragraph shall be divided equally and allotted among the
taxpayer and such related persons, and the taxpayer's base acreage for
the taxable year which includes such March first shall be limited to its
allotted share. Provided, however, if the taxpayer and all such related
persons consent (at such time and in such manner as the commissioner may
prescribe) to an unequal division, the taxpayer's base acreage for such
taxable year shall be limited to its allotted share under such unequal
division.
(D) Related persons. (i) For purposes of subparagraph (C) of this
paragraph, the term "related person" means:
(I) a spouse;
(II) a corporation subject to tax under article nine-A of this
chapter, where more than fifty percent in value of the outstanding stock
of the corporation is owned, directly or indirectly, by or for the
taxpayer, or, where the taxpayer is a trust, where such stock is owned
directly or indirectly by or for the grantor of such trust;
(III) a partnership, estate or trust of which the taxpayer owns,
directly or indirectly, more than fifty percent of the capital, profits
or beneficial interest.
(ii) For purposes of subparagraph (C) of this paragraph, where the
taxpayer is an estate or trust, the term "related person" shall also
mean a corporation subject to tax under article nine-A of this chapter,
a partnership, an estate or trust:
(I) where more than fifty percent of the beneficial interest in the
taxpayer is owned, directly or indirectly, by or for such corporation,
partnership, estate or trust or by or for the grantor of such trust; or
(II) if the same person owns more than fifty percent of the beneficial
interest in the taxpayer and more than fifty percent in value of the
outstanding stock of the corporation, or more than fifty percent of the
capital or profits interest in the partnership, or more than fifty
percent of the beneficial interest in the estate or trust.
(iii) In determining whether a person is a related person within the
meaning of this subparagraph:
(I) stock owned, directly or indirectly, by or for a corporation,
partnership, estate or trust shall be considered as being owned
proportionately by or for its shareholders, partners or beneficiaries;
(II) an individual shall be considered as owning the stock owned,
directly or indirectly, by or for his spouse;
(III) stock constructively owned by a person by reason of the
application of item (I) of this clause shall, for the purpose of
applying item (I) or (II) of this clause, be treated as actually owned
by such person.
(6) Income limitation. (A) In the event that the modified New York
adjusted gross income of the taxpayer exceeds one hundred thousand
dollars for taxable years beginning before two thousand six or two
hundred thousand dollars for taxable year two thousand six and
thereafter, the allowable school district property taxes under paragraph
one of this subsection shall be the eligible taxes under subparagraph
(A) of paragraph five of this subsection reduced by the product of the
amount of such eligible taxes and a percentage, such percentage to be
determined by multiplying one hundred percent by a fraction, the
numerator of which is the lesser of fifty thousand dollars for taxable
years beginning before two thousand six or one hundred thousand dollars
for taxable year two thousand six and thereafter or the excess of the
taxpayer's modified New York adjusted gross income over one hundred
thousand dollars for taxable years beginning before two thousand six or
two hundred thousand dollars for taxable year two thousand six and
thereafter and the denominator of which is fifty thousand dollars for
taxable years beginning before two thousand six or one hundred thousand
dollars for taxable year two thousand six and thereafter. For purposes
of the preceding sentence, the term "eligible taxes", where the acreage
limitation of paragraph five of this subsection does not apply, shall
mean the total school district property taxes paid during the taxable
year.
(B) The term "modified New York adjusted gross income" means the New
York adjusted gross income for the taxable year reduced by the amount of
principal paid on farm indebtedness during the taxable year. The term
"farm indebtedness" means debt incurred or refinanced which is secured
by farm property, where the proceeds of the debt are disbursed for
expenditures incurred in the business of farming.
(7) Nonqualified use. (A) No credit in conversion year. In the event
that qualified agricultural property is converted by the taxpayer to
nonqualified use, credit under this subsection shall not be allowed with
respect to such property for the taxable year of conversion (the
conversion year).
(B) Credit recapture. If the conversion by the taxpayer of qualified
agricultural property to nonqualified use occurs during the period of
the two taxable years following the taxable year for which the credit
under this subsection was first claimed with respect to such property,
the credit allowed with respect to such property for the taxable years
prior to the conversion year must be added back in the conversion year.
Where the property converted includes land, and where the conversion is
of only a portion of such land, the credit allowed with respect to the
property converted shall be determined by multiplying the entire credit
under this subsection for the taxable years prior to the conversion year
by a fraction, the numerator of which is the acreage converted and the
denominator of which is the entire acreage of such land owned by the
taxpayer immediately prior to the conversion.
(C) Exception to recapture. Subparagraph (B) of this paragraph shall
not apply to the conversion of property where the conversion is by
reason of involuntary conversion, within the meaning of section one
thousand thirty-three of the internal revenue code.
(D) Conversion to nonqualified use. For purposes of this paragraph, a
sale or other disposition of qualified agricultural property alone shall
not constitute a conversion to a nonqualified use.
(8) Special rules. For purposes of this subsection, the term "federal
gross income from farming" shall include gross income from the
production of maple syrup, cider, Christmas trees derived from a managed
Christmas tree operation whether dug for transplanting or cut from the
stump, or from a commercial horse boarding operation as defined in
subdivision thirteen of section three hundred one of the agriculture and
markets law, or from the sale of wine from a licensed farm winery as
provided for in article six of the alcoholic beverage control law.
(9) Election to deem gross income of New York C corporation to
shareholders. (A) General. For purposes of the credit under this
subsection, the shareholders of an eligible corporation may elect to
take into account their pro rata shares of the corporation's income and
principal payments on farm indebtedness as provided in subparagraph (B)
of this paragraph, for the taxable year of the corporation ending with
or within the taxable year of each shareholder. No election under this
paragraph shall be effective unless shareholders holding more than
one-half, by vote and value, of the shares of stock of the corporation
on the day on which the election is made have so elected.
(B) Inclusion in gross and adjusted gross income. (i) For any taxable
year of the corporation for which the election under this paragraph is
in effect, the shareholders of the corporation shall include:
(I) in gross income, for purposes of paragraph two of this subsection,
their pro rata shares of the corporation's gross income, which income
shall have the same character as in the hands of the corporation, and
(II) in adjusted gross income, for purposes of paragraph six of this
subsection, their pro rata shares of the corporation's entire net
income, and
(III) in principal payments on farm indebtedness, for purposes of
paragraph six of this subsection, their pro rata shares of such payments
made by the corporation.
(ii) Tiered New York C and New York S corporation. In the event that a
shareholder of the corporation is a New York S corporation, the New York
S corporation shall make the inclusions prescribed by clause (i) of this
subparagraph (except that the inclusion prescribed by subclause (II) of
such clause shall be in the entire net income of the New York S
corporation), and the New York S corporation shall pass through such
inclusions in pro rata shares to its shareholders for purposes of their
calculation of credit under this subsection.
(C) Eligible corporation. The term "eligible corporation" means a
corporation subject to tax under article nine-A of this chapter which is
a New York C corporation for federal income tax purposes.
(D) Pro rata share. For purposes of this paragraph, the pro rata share
of any item of income or farm indebtedness principal payments for a
taxable year of the corporation shall be determined with respect to a
shareholder by assigning an equal portion of the item to each day of
such taxable year, and then by dividing that portion pro rata among the
shares outstanding on such day.
(E) Election. (i) An election under subparagraph (A) of this paragraph
shall be made on such form and in such manner as the commissioner may
prescribe.
(ii) When made. Such election shall be made no later than the due date
of the corporation tax return (determined without regard to extensions)
for the corporation's taxable year for which the election is to be
effective.
(iii) When effective. Such election shall be effective for the taxable
year of the corporation for which it is made and for all succeeding
taxable years of the corporation, until such election is terminated
under subparagraph (F) of this paragraph.
(F) Termination. (i) Revocation. An election under subparagraph (A) of
this paragraph shall be terminated if shareholders holding more than
one-half, by vote and value, of the shares of stock of the corporation
on the day on which the revocation is made revoke the election. Such
revocation shall be made on such form and in such manner as the
commissioner may prescribe, and shall be effective on the first day of
the corporation's taxable year following the date on which the
revocation is made.
(ii) Ineligible corporation. An election under subparagraph (A) of
this paragraph shall be terminated on the first day of the corporation's
taxable year with respect to which the corporation ceases to be an
eligible corporation.
(G) Election after termination. If an election is terminated under
subparagraph (F) of this paragraph, no further election under
subparagraph (A) of this paragraph shall be made before the fifth
taxable year of the corporation following the taxable year during which
the termination occurred, unless the commissioner consents to such
election.
(H) Waiver of secrecy. The commissioner shall have authority to reveal
to shareholders of the corporation any information with respect to
income or farm indebtedness principal payments of the corporation, for
any taxable year of the corporation for which the election under this
paragraph is in effect, which is the basis for denial in whole or in
part of the credit claimed by such shareholders.
(o) 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 vocation 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
subsection, 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 subsection 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 subsection 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. If the amount of credit allowable under this subsection
for any taxable year shall exceed the taxpayer's tax for such year, the
excess may be carried over to the following year or years, and may be
deducted from the taxpayer's tax for such year or years.
(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 subsection
to the extent that such sections are consistent with the specific
provisions of this subsection, provided that in the event of a conflict
the provisions of this subsection shall control.
(p) Alternative fuels credit. (1) General. A taxpayer shall be
allowed a credit, to be computed as hereinafter provided, against the
tax imposed by this article, for electric vehicles, clean-fuel vehicle
property, clean-fuel vehicle refueling property and qualified hybrid
vehicles placed in service during the taxable year. Provided, however,
that the credit provided for by this subsection with respect to electric
vehicles shall not be allowed to a gas corporation or an electric
corporation as defined in subdivisions eleven and thirteen,
respectively, of section two of the public service law, or a gas and
electric corporation as described in section sixty-four of the public
service law, where such corporation is subject to the supervision of the
department of public service.
(2) Electric vehicles. The credit under this subsection for electric
vehicles shall equal fifty percent of the incremental cost of any such
vehicle
(A) which is registered in this state and
(B) for which a credit is allowed under section thirty of the internal
revenue code (determined without regard to the limitations prescribed in
subsection (b) or the elections prescribed in subsection (d) of such
section, including the election with respect to section one hundred
seventy-nine of such code),
(C) provided, however, the credit with respect to any such vehicle
shall not exceed five thousand dollars.
(3) Clean-fuel vehicle property. The credit under this subsection for
clean-fuel vehicle property shall equal sixty percent of the cost of any
such property
(A) for which a deduction is allowed under section one hundred
seventy-nine-A of the internal revenue code (determined without regard
to the limitations prescribed in paragraph one of subsection (b) of such
section or the election referred to in subsection (e) of such section
with respect to section one hundred seventy-nine of such code), but not
including clean-fuel vehicle property relating to a qualified hybrid
vehicle as such vehicle is defined in subparagraph (E) of paragraph six
of this subsection and
(B) which is installed in or manufactured as part of a motor vehicle
which is registered in this state,
(C) provided, however, the credit with respect to any such vehicle
shall not exceed five thousand dollars per vehicle for vehicles with a
gross vehicle weight rating of fourteen thousand pounds or less and ten
thousand dollars per vehicle for all other vehicles.
(4) Clean-fuel vehicle refueling property. The credit under this
subsection for clean-fuel vehicle refueling property shall equal fifty
percent of the cost of any such property
(A) which is located in this state and
(B) for which a deduction is allowed under section one hundred
seventy-nine-A of the internal revenue code (determined without regard
to the limitations prescribed in paragraph two of subsection (b) of such
section or the election referred to in subsection (e) of such section
with respect to section one hundred seventy-nine of such code), but not
including clean-fuel vehicle refueling property relating to a qualified
hybrid vehicle as such vehicle is defined in subparagraph (E) of
paragraph six of this subsection.
(5) Qualified hybrid vehicle. The credit under this subsection for
qualified hybrid vehicles shall equal two thousand dollars per vehicle
registered in this state.
(6) Definitions. (A) The term "electric vehicle" means a qualified
electric vehicle within the meaning of subsection (c) of section thirty
of the internal revenue code.
(B) The terms "clean-fuel vehicle property" and "clean-fuel vehicle
refueling property" mean any such property which is qualified within the
meaning of subsections (c) and (d), respectively, of section one hundred
seventy-nine-A of the internal revenue code, but such terms shall not
include clean-fuel vehicle property or clean-fuel vehicle refueling
property relating to a qualified hybrid vehicle as such vehicle is
defined in subparagraph (E) of this paragraph.
(C) The term "clean-fuel" means natural gas, liquefied petroleum gas,
hydrogen, electricity, and any other fuel which is at least eighty-five
percent, singly or in combination, methanol, ethanol, any other alcohol,
or ether.
(D) The term "incremental cost" shall mean the excess of the cost of
an electric vehicle over the cost of a gasoline-powered vehicle which is
similar in size and style.
(E) The term "qualified hybrid vehicle" means a motor vehicle, as
defined in section one hundred twenty-five of the vehicle and traffic
law, other than an electric vehicle (as such term is defined in
subparagraph (A) of this paragraph), that:
(i) draws propulsion energy from both
(a) an internal combustion engine (or heat engine that uses
combustible fuel); and
(b) an energy storage device; and
(ii) employs a regenerative vehicle braking system that recovers waste
energy to charge such energy storage device.
(7) Carryovers. If the amount of credit allowable under this
subsection shall exceed the taxpayer's tax for such year, the excess may
be carried over to the following year or years and may be deducted from
the taxpayer's tax for such year or years.
(8) Credit recapture. (A) Vehicles.
(i) If, within three full years from the date an electric vehicle,
qualified hybrid vehicle or a vehicle of which clean-fuel vehicle
property is a part is placed in service, such electric vehicle,
qualified hybrid vehicle or clean-fuel vehicle property ceases to be
qualified, a recapture amount must be added back in the tax year in
which such cessation occurs.
(ii) Cessation of qualification. (I) An electric vehicle ceases to be
qualified if
(a) it is modified by the taxpayer so that it no longer is powered
primarily by electricity, or
(b) the taxpayer receiving the credit under this subsection sells or
disposes of the vehicle and knows or has reason to know that the vehicle
will be so modified.
(II) A qualified hybrid vehicle ceases to be qualified if
(a) it is modified by the taxpayer so that it no longer meets the
requirements of a qualified hybrid vehicle as defined in subparagraph
(E) of paragraph six of this subsection.
(b) the taxpayer receiving the credit under this subsection sells or
disposes of the vehicle and knows or has reason to know that the vehicle
will be so modified.
(III) Clean-fuel vehicle property ceases to be qualified if
(a) the vehicle of which it is a part is modified by the taxpayer so
that it may no longer be propelled by a clean-burning fuel, or
(b) the vehicle otherwise ceases to qualify as property defined in
subsection (c) of section one hundred seventy-nine-A of the internal
revenue code, or
(c) the taxpayer receiving the credit under this subsection sells or
disposes of the vehicle and knows or has reason to know that the vehicle
will be used in a manner described in subclause (a) or (b) of this item.
(iii) Recapture amount. The recapture amount is equal to the credit
allowable under this subsection multiplied by:
(I) one hundred percent, if the cessation of qualification occurs
within the first full year after the date the vehicle is placed in
service,
(II) sixty-six and two-thirds percent, if the cessation of
qualification occurs within the second full year after the date the
vehicle is placed in service, or
(III) thirty-three and one-third percent, if the cessation of
qualification occurs within the third full year after the date the
vehicle is placed in service.
(B) Clean-fuel vehicle refueling property. (i) If, at any time before
the end of its recovery period, clean-fuel vehicle refueling property
ceases to be qualified, a recapture amount must be added back in the
year in which such cessation occurs.
(ii) Cessation of qualification. Clean-fuel vehicle refueling property
ceases to be qualified if
(I) the property no longer qualifies as property described in
subsection (d) of section one hundred seventy-nine-A of the internal
revenue code, or
(II) fifty percent or more of the use of the property in a taxable
year is other than in a trade or business in this state, or
(III) the taxpayer receiving the credit under this subsection sells or
disposes of the property and knows or has reason to know that the
property will be used in a manner described in item (I) or (II) of this
clause.
(iii) Recapture amount. The recapture amount is equal to the credit
allowable under this subsection multiplied by a fraction, the numerator
of which is the total recovery period for the property minus the number
of recovery years prior to, but not including, the recapture year, and
the denominator of which is the total recovery period.
(9) Termination. This subsection shall not apply to property placed in
service in taxable years beginning after December thirty-first, two
thousand four.
(q) Qualified emerging technology company employment credit. (1) A
taxpayer shall be allowed a credit, to be computed as hereinafter
provided, against the tax imposed by this article, provided:
(A) the taxpayer is a sole proprietor of a qualified emerging
technology company, a member of a partnership which is a qualified
emerging technology company, or a shareholder of a New York S
corporation which is a qualified emerging technology company, as defined
in section thirty-one hundred two-e of the public authorities law; and
(B) the average number of individuals employed full-time by such
company in New York state during the taxable year is at least one
hundred one percent of such company's base year employment. For the
purposes of this subsection, "base year employment" means the average
number of individuals employed full-time by such company in the state
during the three taxable years immediately preceding the first taxable
year in which the credit is claimed. Where such company provided
full-time employment within the state during only a portion of such
three-year period, then for purposes of this subsection, the term "three
years" shall be deemed to refer instead to such portion, provided,
however, the first taxable year for which this credit may be taken with
respect to such company shall be the next year following the first full
taxable year that such company had full-time employment in New York
state.
(2) The credit shall be allowed only in the first taxable year in
which the credit is claimed and in each of the next two taxable years,
provided that the conditions of paragraph one of this subsection are
satisfied in each taxable year.
(3) For the purposes of this subsection, average number of individuals
employed full-time shall be computed by adding the number of such
individuals employed by such company at the end of each quarter during
each taxable year or other applicable period and dividing the sum so
obtained by the number of such quarters occurring within such taxable
year or other applicable period; provided, however, that in computing
base year employment there shall be excluded therefrom any employee with
respect to whom a credit provided for under subsection (k) of this
section is claimed for the taxable year.
(4) The amount of the credit shall equal the product of one thousand
dollars multiplied by the number of individuals employed full-time by
such company in the taxable year that are in excess of one hundred
percent of such company's base year employment.
(5) If the amount of credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
shall be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(r) Qualified emerging technology company capital tax 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 one of the following
percentages, per each qualified investment in a qualified emerging
technology company as defined in section thirty-one hundred two-e of the
public authorities law, made during the taxable year, and certified by
the commissioner, either:
(A) ten percent of qualified investments in qualified emerging
technology companies, 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 provided, however,
that the taxpayer certifies to the commissioner that the qualified
investment will not be sold, transferred, traded, or disposed of during
the four years following the year in which the credit is first claimed;
or
(B) twenty percent of qualified investments in qualified emerging
technology companies, 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 provided, however,
that the taxpayer certifies to the commissioner that the qualified
investment will not be sold, transferred, traded, or disposed of during
the nine years following the year in which the credit is first claimed.
(C) "Qualified investment" 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 one hundred fifty thousand dollars in
the case of investments made pursuant to subparagraph (A) of this
paragraph and shall not exceed three hundred thousand dollars in the
case of investments made pursuant to subparagraph (B) of this paragraph.
(2) (A) If the amount of the credit and carryovers of such credit
allowed under this subsection for any taxable year shall exceed the
taxpayer's tax for such year, 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 the tax imposed under
section six hundred one computed without regard to any credit provided
for by this section.
(B) In the case of a husband or wife who is required to file a
separate return, the limitations provided for in subparagraph (c) of
paragraph one of this subsection shall be seventy-five thousand dollars
in lieu of one hundred fifty thousand dollars, and one hundred fifty
thousand dollars in lieu of three hundred thousand dollars, unless the
spouse of the taxpayer has no credit allowable under this subsection for
the taxable year of such spouse which ends within or with the taxpayer's
taxable year.
(C) In the case of an estate or trust, the limitations provided for in
paragraph one of this subsection shall be reduced to an amount which
bears the same ratio to one hundred fifty thousand dollars and an amount
which bears the same ratio to three hundred thousand dollars as the
portion of the income of the estate or trust which is not allocated to
beneficiaries bears to the total income of the estate or trust.
(3) (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
subparagraph (A) of paragraph one of this subsection, or where an
investment which was the basis for such allowance is, in whole or in
part, recovered by such taxpayer, and such disposition or recovery
occurs during the taxable year or within forty-eight months from the
close of the taxable year with respect to which such credit is allowed,
the taxpayer shall add back, with respect to the taxable year in which
the disposition or recovery described above occurred, the required
portion of the credit originally allowed.
(B) 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
subparagraph (B) of paragraph one of this subsection, or where an
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 one hundred eight
months from the close of the taxable year with respect to which such
credit is allowed, the taxpayer shall add back, with respect to the
taxable year in which the disposition or recovery described in
subparagraph one 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 and (ii) the applicable percentage.
(D) The applicable percentage shall be:
(i) for credits allowed pursuant to subparagraph (A) of paragraph one
of this subsection:
(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) seventy-five 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,
(III) fifty percent, if the disposition or recovery occurs more than
twenty-four months but not more than thirty-six months after the end of
the taxable year with respect to which the credit is allowed, or
(IV) twenty-five percent, if the disposition or recovery occurs more
than thirty-six months but not more than forty-eight months after the
end of the taxable year with respect to which the credit is allowed; or
(ii) for credits allowed pursuant to subparagraph (B) of paragraph one
of this subsection:
(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) eighty percent, if the disposition or recovery occurs more than
twelve but not more than forty-eight months after the end of the taxable
year with respect to which the credit is allowed,
(III) sixty percent, if the disposition or recovery occurs more than
forty-eight months but not more than seventy-two months after the end of
the taxable year with respect to which the credit is allowed,
(IV) forty percent, if the disposition or recovery occurs more than
seventy-two months but not more than ninety-six months after the end of
the taxable year with respect to which the credit is allowed, or
(V) twenty percent, if the disposition or recovery occurs more than
ninety-six months but not more than one hundred eight months after the
end of the taxable year with respect to which the credit is allowed.
(s) 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 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.
(t) College tuition credit. (1) General. A resident taxpayer shall be
allowed the option of claiming a credit, to be computed as provided in
paragraph four of this subsection, against the tax imposed by this
article, or an itemized deduction, to be computed as provided in
paragraph four of subsection (d) of section six hundred fifteen of this
article, for allowable college tuition expenses.
(2) Allowable and qualified college tuition expenses. For the purposes
of this credit and the itemized deduction provided by paragraph four of
subsection (d) of section six hundred fifteen of this article:
(A) The term "allowable college tuition expenses" shall mean the
amount of qualified college tuition expenses of eligible students paid
by the taxpayer during the taxable year, limited to ten thousand dollars
for each such student;
(B) The term "eligible student" shall mean the taxpayer, the
taxpayer's spouse, and any dependent of the taxpayer with respect to
whom the taxpayer is allowed an exemption under section six hundred
sixteen of this article for the taxable year;
(C) The term "qualified college tuition expenses" shall mean the
tuition required for the enrollment or attendance of an eligible student
at an institution of higher education. Provided, however, tuition
payments made pursuant to the receipt of any scholarships or financial
aid, or tuition required for enrollment or attendance in a course of
study leading to the granting of a post baccalaureate or other graduate
degree, shall be excluded from the definition of "qualified college
tuition expenses".
(D) Expenses paid by dependent. If an exemption under section six
hundred sixteen of this article with respect to an individual is allowed
to another taxpayer for a taxable year beginning in the calendar year in
which such individual's taxable year begins,
(i) no credit under this subsection or deduction under paragraph four
of subsection (d) of section six hundred fifteen of this article shall
be allowed to such individual for such individual's taxable year, and
(ii) for purposes of such credit or deduction, qualified college
tuition expenses paid by such individual during such individual's
taxable year shall be treated as paid by such other taxpayer.
(3) Institution of higher education. For the purposes of this credit
and the itemized deduction provided by paragraph four of subdivision (d)
of section six hundred fifteen of this article, the term "institution of
higher education" shall mean any institution of higher education or
business, trade, technical or other occupational school, recognized and
approved by the regents, or any successor organization, of the
university of the state of New York or accredited by a nationally
recognized accrediting agency or association accepted as such by the
regents, or any successor organization, of the university of the state
of New York, which provides a course of study leading to the granting of
a post-secondary degree, certificate or diploma.
(4) Amount of credit. If allowable college tuition expenses are less
than five thousand dollars, the amount of the credit provided under this
subsection shall be equal to the applicable percentage of the lesser of
allowable college tuition expenses or two hundred dollars. If allowable
college tuition expenses are five thousand dollars or more, the amount
of the credit provided under this subsection shall be equal to the
applicable percentage of the allowable college tuition expenses
multiplied by four percent. Such applicable percentage shall be
twenty-five percent for taxable years beginning in two thousand one,
fifty percent for taxable years beginning in two thousand two,
seventy-five percent for taxable years beginning in two thousand three
and one hundred percent for taxable years beginning after two thousand
three.
(5) Refundability. The credit under this subsection shall be allowed
against the taxes imposed by this article for the taxable year reduced
by the credits permitted by this article. If the credit exceeds the tax
as so reduced, the taxpayer may receive, and the comptroller, subject to
a certificate of the commissioner, shall pay as an overpayment, without
interest, the amount of such excess.
(6) Limitation. No credit shall be allowed under this subsection to a
taxpayer who claims the itemized deduction provided under paragraph four
of subdivision (d) of section six hundred fifteen of this article.
* (t-1) IMB credit for energy taxes. (1) Allowance of credit. A
taxpayer which is a sole proprietor of an industrial or manufacturing
business (IMB), or a member of a partnership which is an IMB, shall be
allowed a credit for energy taxes, to be computed as provided in section
fourteen-a of this chapter, against the tax imposed by this article.
(2) Application of credit. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no interest
shall be paid thereon.
* NB Repealed for taxable years ending on and after January 1, 2007
(x) 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. If the amount of credit allowable under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess may be carried over to the following year or
years, and may be deducted from the taxpayer's tax for such year or
years.
(3) Credit recapture. For provisions requiring recapture of credit,
see subdivision (b) of section eighteen of this chapter.
(y) 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 tax imposed by this article.
(2) Carryovers. If the amount of the credit and carryovers of such
credit allowed under this subsection for any taxable year shall exceed
the taxpayer's tax for such year, the excess, as well as any part of the
credit or carryovers of such credit, or both, may be carried over to the
following year or years and may be deducted from the taxpayer's tax for
such year or years.
(z) 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 tax imposed by
this article.
(2) Application of credit. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no interest
shall be paid thereon.
(3) Credit recapture. For provisions requiring recapture of credit,
see subdivision (c) of section twenty of this chapter.
(aa) Long-term care insurance credit. (1) Residents. 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. If the amount of the credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
may be carried over to the following year or years and may be deducted
from the taxpayer's tax for such year or years.
(2) Nonresidents and part-year residents. In the case of a nonresident
taxpayer or a part-year resident taxpayer, the credit determined under
this subsection shall be limited to the amount determined by multiplying
the amount of such credit by the New York source fraction as set forth
in paragraph three of subsection (e) of section six hundred one of this
article. The credit as so limited shall be applied as provided in
paragraph one of this subsection.
(bb) QEZE credit for real property taxes. (1) Allowance of credit. A
taxpayer which is a sole proprietor of a qualified empire zone
enterprise (QEZE), or a member of a partnership which is a QEZE, 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. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no interest
shall be paid thereon.
(cc) QEZE tax reduction credit. Allowance of credit. A taxpayer which
is a sole proprietor of a qualified empire zone enterprise (QEZE), or a
member of a partnership which is a QEZE, shall be allowed a QEZE tax
reduction credit against the tax imposed by subsections (a) through (e)
of section six hundred one of this part.
* (dd) 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 tax imposed by this
article.
(2) Application of credit. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no interest
shall be paid thereon.
* NB Applies to taxable years beginning on or after April 1, 2005
* (ee) 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 subsection, 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. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no interest
shall be paid thereon.
* NB Applies to taxable years beginning on or after April 1, 2005
* (ff) 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 tax imposed by this
article.
(2) Application of credit. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no interest
shall be paid thereon.
* NB Applies to taxable years beginning on or after April 1, 2005
* (gg) Empire state film production credit. (1) Allowance of credit. A
taxpayer who is eligible pursuant to section twenty-four of this chapter
shall be allowed a credit to be computed as provided in such section
twenty-four against the tax imposed by this article.
(2) Application of credit. If the amount of the credit allowable under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, fifty percent of the excess shall be treated as an overpayment of
tax to be credited or refunded as provided in section six hundred
eighty-six of this article, provided, however, that no interest shall be
paid thereon. The balance of such credit not credited or refunded in
such taxable year may be carried over to the immediately succeeding
taxable year and may be deducted from the taxpayer's tax for such year.
The excess, if any, of the amount of the credit over the tax for such
succeeding year shall be treated as an overpayment of tax to be credited
or refunded as provided in section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
* NB Repealed August 20, 2008
(hh) Nursing home assessment credit. (1) Allowance of credit. A
taxpayer shall be allowed a credit against the tax imposed by this
article equal to the amount that directly relates to the assessment
imposed on a residential health care facility pursuant to paragraph (b)
of subdivision two of section twenty-eight hundred seven-d of the public
health law which is separately stated and accounted for on the billing
statement of a resident of a residential health care facility and is
paid directly by the individual taxpayer.
(2) Application of credit. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no interest
shall be paid thereon.
(ii) 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. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no interest
shall be paid thereon.
* (jj) Empire state commercial production credit. (1) Allowance of
credit. A taxpayer that is eligible pursuant to the provisions of
section twenty-eight of this chapter shall be allowed a credit to be
computed as provided in such section against the tax imposed by this
article.
(2) Application of credit. If the amount of the credit allowable under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, fifty percent of the excess shall be treated as an overpayment of
tax to be credited or refunded as provided in section six hundred
eighty-six of this article, provided, however, that no interests shall
be paid thereon. The balance of such credit not credited or refunded in
such taxable year may be carried over to the immediately succeeding
taxable year and may be deducted from the taxpayer's tax for such year.
The excess, if any, of the amount of the credit over the tax for such
succeeding year shall be treated as an overpayment of tax to be credited
or refunded as provided in section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
* NB Repealed December 31, 2011
* NB There are 2 sb (jj)'s
* (jj) Biofuel production credit. A taxpayer shall be allowed a credit
to be computed as provided in section twenty-eight of this chapter,
against the tax imposed by this article. If the amount of the credit
allowed under this subsection for any taxable year shall exceed the
taxpayer's tax for such year, the excess shall be treated as an
overpayment of tax to be credited or refunded in accordance with the
provisions of section six hundred eighty-six of this article, provided,
however, that no interest shall be paid thereon.
* NB There are 2 sb (jj)'s
(kk) Conservation easement tax credit. (1) Credit allowed. In the case
of a taxpayer who owns land that is subject to a conservation easement
held by a public or private conservation agency, there shall be allowed
a credit for twenty-five percent of the allowable school district,
county and town real property taxes on such land. In no event shall the
credit allowed under this subsection in combination with any other
credit for such school district, county and town real property taxes
under this section exceed such taxes.
(2) Conservation easement. For purposes of this subsection, the term
"conservation easement" means a perpetual and permanent conservation
easement as defined in article forty-nine of the environmental
conservation law that serves to protect open space, scenic, natural
resources, biodiversity, agricultural, watershed and/or historic
preservation resources. Any conservation easement for which a tax credit
is claimed under this subsection shall be filed with the department of
environmental conservation, as provided for in article forty-nine of the
environmental conservation law and such conservation easement shall
comply with the provisions of title three of such article, and the
provisions of subdivision (h) of section 170 of the internal revenue
code. Dedications of land for open space through the execution of
conservation easements for the purpose of fulfilling density
requirements to obtain subdivision or building permits shall not be
considered a conservation easement under this subsection.
(3) Land. For purposes of this subsection, the term "land" means a fee
simple title to real property located in this state, with or without
improvements thereon; rights of way; water and riparian rights;
easements; privileges and all other rights or interests of any land or
description in, relating to or connected with real property, excluding
buildings, structures, or improvements.
(4) Public or private conservation agency. For purposes of this
subsection, the term "public or private conservation agency" means any
state, local, or federal governmental body; or any private
not-for-profit charitable corporation or trust which is authorized to do
business in the state of New York, is organized and operated to protect
land for natural resources, conservation or historic preservation
purposes, is exempt from federal income taxation under section 501(c)(3)
of the internal revenue code, and has the power to acquire, hold and
maintain land and/or interests in land for such purposes.
(5) Credit limitation. The amount of the credit that may be claimed by
a taxpayer pursuant to this subsection shall not exceed five thousand
dollars in any given year.
(6) Application of the credit. If the amount of the credit under this
subsection for any taxable year shall exceed the taxpayer's tax for such
year, the excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no interest
shall be paid therein.
(nn) Qualified emerging technology company facilities, operations and
training credit. (1) A taxpayer that is a qualified emerging technology
company pursuant to the provisions of section thirty-one hundred two-e
(and specifically for the activities referenced in paragraph (b) of
subdivision one of such section thirty-one hundred two-e) of the public
authorities law, and that meets the eligibility requirements in
paragraph two of this subsection, shall be allowed a credit against the
tax imposed by this article. The amount of credit shall be equal to the
sum (or pro rata share of the sum in the case of a partnership) of the
amounts specified in paragraphs three, four, and five of this
subsection, subject to the limitations in paragraph six of this
subsection.
(2) An eligible taxpayer shall (i) have no more than one hundred
full-time employees, of which at least seventy-five percent are employed
in New York state,
(ii) have a ratio of research and development funds to net sales, as
referred to in section thirty-one hundred two-e of the public
authorities law, which equals or exceeds six percent during its taxable
year, and
(iii) have gross revenues, along with the gross revenues of its
affiliates and related members, not exceeding twenty million dollars for
the taxable year immediately preceding the year the taxpayer is allowed
a credit under this subsection. For purposes of this paragraph, the term
"related member" shall have the same meaning as set forth in clauses (A)
and (B) of subparagraph one of paragraph (o) of subdivision 9 of section
two hundred eight of this chapter, and the term "affiliates" shall mean
those corporations that are members of the same affiliated group (as
defined in section fifteen hundred four of the internal revenue code) as
the taxpayer.
(3) An eligible taxpayer shall be allowed a credit for eighteen per
centum of the cost or other basis for federal income tax purposes of
research and development property as defined in subparagraph (B) of
paragraph two of subsection (a) of this section that is acquired by the
taxpayer by purchase as defined in section 179(d) of the internal
revenue code and is placed in service during the taxable year. Provided,
however, for the purposes of this paragraph only, an eligible taxpayer
shall be allowed a credit for such percentage of the (i) cost or other
basis for federal income purposes for property used in the testing or
inspection of materials and products,
(ii) the costs or expenses associated with quality control of the
research and development,
(iii) fees for use of sophisticated technology facilities and
processes, and
(iv) fees for production or eventual commercial distribution of
materials and products resulting from the activities of an eligible
taxpayer as long as such activities fall under the activities listed in
paragraph (b) of subdivision one of section thirty-one hundred two-e of
the public authorities law. The costs, expenses and other amounts for
which a credit is allowed and claimed under this paragraph shall not be
used in the calculation of any other credit allowed under this article.
(4) An eligible taxpayer shall be allowed a credit for nine percentum
of "qualified research expenses", paid or incurred by the taxpayer in
the taxable year. "Qualified research expenses" shall mean expenses
associated with in-house research, use of sophisticated technology
facilities and processes, and costs associated with the dissemination of
the results of the products that directly result from such research and
development activities; provided, however, that such costs shall not
include advertising or promotion through media. In addition, costs
associated with the preparation of patent applications, patent
application filing fees, patent research fees, patent examinations fees,
patent post allowance fees, patent maintenance fees, and grant
application expenses and fees shall be eligible for such credit. In no
case shall the credit allowed by this paragraph apply to expenses for
litigation or the challenge of another entity's intellectual property
rights, or for contract expenses involving outside paid consultants.
(5) An eligible taxpayer shall be allowed a credit for qualified
high-technology training expenditures as described in this paragraph
paid or incurred by the taxpayer.
(a) The amount of credit shall be one hundred percent of the training
expenses described in subparagraph (c) of this paragraph, subject to a
limitation of no more than four thousand dollars per employee per year
for such training expenses.
(b) Qualified high-technology training shall include a course or
courses taken and satisfactorily completed by an employee of the
taxpayer at an accredited, degree granting post-secondary college or
university in New York state that
(i) directly relates to the activities referred to in paragraph (b) of
subdivision one of section thirty-one hundred two-e of the public
authorities law, and
(ii) is intended to upgrade, retrain or improve the productivity or
theoretical awareness of the employee. Such course or courses may
include, but are not limited to, instruction or research relating to
techniques, meta, macro, or micro-theoretical or practical knowledge
bases or frontiers, or ethical concerns related to such activities. Such
course or courses shall not include classes in the disciplines of
management, accounting or the law or any class designed to fulfill the
discipline specific requirements of a degree program at the associate,
baccalaureate, graduate or professional level of these disciplines.
Satisfactory completion of a course or courses shall mean the earning
and granting of credit or equivalent unit, with the attainment of a
grade of "B" or higher in a graduate level course or courses, a grade of
"C" or higher in an undergraduate level course or courses, or a similar
measure of competency for a course that is not measured according to a
standard grade formula.
(c) Qualified high-technology training expenditures shall include
expenses for tuition and mandatory fees, and software required by the
institution, fees for textbooks or other literature required by the
institution offering the course or courses, minus applicable
scholarships and tuition or fee waivers not granted by the taxpayer or
any affiliate of the taxpayer, paid or reimbursed by the taxpayer.
Qualified high technology expenditures do not include room and board,
computer hardware or software not specifically assigned for such course
or courses, late-charges, fines or membership dues and similar expenses.
Such qualified expenditures shall not be eligible for the credit allowed
by this subsection unless the employee for whom the expenditures are
disbursed is continuously employed by the taxpayer in a full-time,
full-year position primarily located at a qualified site during the
period of such coursework and lasting through at least one hundred and
eighty days after the satisfactory completion of the qualifying
course-work. Qualified high-technology training expenditures shall not
include expenses for in house or shared training outside of a New York
state higher education institution or the use of consultants outside of
credit granting courses whether such consultants function inside of such
higher education institution or not.
(d) If a taxpayer relocates from an academic business incubator
facility partnered with an accredited post-secondary education
institution located within New York state, which provides space and
business support services to taxpayers, to another site, the credit
provided in this subsection shall be allowed for all expenditures
referenced in subparagraph (c) of this paragraph paid or incurred in the
two preceding taxable years that the taxpayer was located in such an
incubator facility for employees of the taxpayer who also relocate from
said incubator facility to such New York site and are employed and
primarily located by the taxpayer in New York. Such expenditures in the
two preceding years shall be added to the amounts otherwise qualifying
for the credit provided by this subsection that were paid or incurred in
the taxable year that the taxpayer relocated from such a facility. Such
expenditures shall include expenses paid or incurred for an eligible
employee who is a full-time, full-year employee of said taxpayer during
the taxable year that the taxpayer relocated from an incubator facility
notwithstanding (i) that such employee was employed full or part-time as
an officer, staff-person or paid intern of the taxpayer when such
taxpayer was located at such incubator facility or (ii) that such
employee was not continuously employed when such taxpayer was located at
the incubator facility during the one hundred eighty day period
referenced in subparagraph (c) of this paragraph, provided such employee
received wages or equivalent income for at least seven hundred fifty
hours during any twenty-four month period when the taxpayer was located
at the incubator facility. Such expenditures shall include payments made
to such an employee after the taxpayer has relocated from the incubator
facility for qualified expenditures if such payments are made to
reimburse such an employee for qualified expenditures paid by the
employee during such two preceding years. The credit provided under this
subparagraph shall be allowed, in any year that said taxpayer qualifies
as an eligible taxpayer.
(e) For purposes of this subsection the term "academic year" shall
mean the annual period of sessions of a post-secondary college or
university.
(f) For the purposes of this subsection the term "academic incubator
facility" shall mean a facility providing low-cost space, technical
assistance, support services and educational opportunities, including
but not limited to central services provided by the manager of the
facility to the tenants of the facility, to an entity located in New
York state. Such entity's primary activity must be an activity described
in paragraph (b) of subdivision one of section thirty-one hundred two-e
of the public authorities law, and such entity must be in the formative
stage of development. The academic incubator facility and the entity
must act in partnership with an accredited post-secondary college or
university located in New York state. An academic incubator facility's
mission shall be to promote job creation, entrepreneurship, technology
transfer, and provide support services to incubator tenants, including,
but not limited to, business planning, management assistance,
financial-packaging, linkages to financing services, and coordinating
with other sources of assistance.
(6) An eligible taxpayer may claim credits under this subsection for
four consecutive taxable years, except, if a taxpayer is located in an
academic incubator facility and relocates within New York state to a
nonacademic incubator site, then the taxpayer (i) may make a revocable
election to defer the credit provided under this subsection to the first
taxable year beginning after the taxpayer relocates from an academic
incubator facility, and (ii) shall be eligible for such credit for five
consecutive years. In no case shall the credit allowed by this
subsection to a taxpayer exceed two hundred fifty thousand dollars per
year.
(7) If the amount of credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
shall be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(8) The credit allowed under this subsection shall not be applicable
for taxable years beginning on or after January first, two thousand
twelve.
(yy) Order of credits. 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.
(zz) Cross references.--For credit in respect of:
(1) taxes withheld on wages, see section six hundred seventy-three,
(2) taxes imposed on a resident by other states, see section six
hundred twenty,
(3) taxes overpaid for a prior taxable year, see section six hundred
eighty-six,
* (4) taxes paid by a trust for a prior taxable year on income
subsequently distributed, see sections six hundred twenty-one and six
hundred forty.
* NB Applies to taxable years beginning prior to 1988
* (4) taxes paid by a trust for a prior taxable year on income
subsequently distributed, see sections six hundred twenty-one and six
hundred thirty-five.
* NB Applies to taxable years beginning after 1987
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