2012 New York Consolidated Laws
TAX - Tax
Article 1 - (1 - 37) SHORT TITLE; DEFINITIONS; MISCELLANEOUS
16 - QEZE tax reduction credit.

 
    §  16.  QEZE tax reduction credit. (a) Allowance of credit. A taxpayer
  which is a qualified empire zone enterprise (QEZE), or which is  a  sole
  proprietor  of  a QEZE or a member of a partnership which is a QEZE, and
  which is subject to tax under article nine-A, twenty-two, thirty-two  or
  thirty-three  of  this  chapter,  shall be allowed a credit against such
  tax, pursuant to the provisions referenced in subdivision  (g)  of  this
  section, to be computed as hereinafter provided.
    (b) Amount of credit. The amount of the credit shall be the product of
  (i)  the  benefit  period  factor,  (ii) the employment increase factor,
  (iii) the zone allocation factor and (iv) the tax factor.
    (c) Benefit period factor. The benefit period factor for  the  taxable
  year  shall  be  as  prescribed in subdivision (c) of section fifteen of
  this article.
    (d) Employment increase factor. The employment increase factor for the
  taxable year shall be  as  prescribed  in  subdivision  (d)  of  section
  fifteen of this article.
    (e)  Zone  allocation  factor. The zone allocation factor shall be the
  percentage representing the QEZE's economic  presence  in  empire  zones
  with  respect to which the QEZE is certified under article eighteen-B of
  the general municipal law. This percentage shall be computed by:
    (1) ascertaining the percentage which the average value of the  QEZE's
  real  and  tangible personal property, whether owned or rented to it, in
  empire zones with respect to which the QEZE is certified  under  article
  eighteen-B of the general municipal law during the period covered by the
  taxpayer's  report  or  return  bears to the average value of the QEZE's
  real and tangible personal property, whether  owned  or  rented  to  it,
  within  the  state  during such period; provided that the term "value of
  the QEZE's real and tangible personal  property"  shall  have  the  same
  meaning  as  such  term  has  in  subparagraph  one  of paragraph (a) of
  subdivision three of section two hundred ten of this chapter; and
    (2) ascertaining the percentage of the total wages, salaries and other
  personal service compensation, similarly computed, during such period of
  employees, except general executive officers,  of  the  QEZE  in  empire
  zones  with  respect  to  which  the  QEZE  is  certified  under article
  eighteen-B of the general municipal law, to the  total  wages,  salaries
  and other personal service compensation, similarly computed, during such
  period,  of  all  the  QEZE's employees within the state, except general
  executive officers; and
    (3) adding together the percentages so  determined  and  dividing  the
  result by the number of percentages.
    For purposes of article twenty-two of this chapter, references in this
  subdivision  to  property,  wages,  salaries  and other personal service
  compensation shall be deemed to be references to  such  items  connected
  with the conduct of a business.
    (f)  Tax  factor. (1) General. The tax factor shall be, in the case of
  article nine-A of this  chapter,  the  larger  of  the  amounts  of  tax
  determined  for  the  taxable  year  under  paragraphs  (a)  and  (c) of
  subdivision one of section two hundred ten  of  such  article.  The  tax
  factor  shall be, in the case of article twenty-two of this chapter, the
  tax determined for the taxable year under subsections (a) through (d) of
  section six hundred one of such article. The tax factor shall be, in the
  case of article thirty-two of this chapter, the larger of the amounts of
  tax determined for the taxable year under subsection (a)  and  paragraph
  two  of  subsection  (b)  of section fourteen hundred fifty-five of such
  article. The tax factor shall be, in the case of article thirty-three of
  this chapter, the larger of  the  amounts  of  tax  determined  for  the
  taxable  year  under  paragraphs  one  and  three  of subdivision (a) of
  section fifteen hundred two of such article.

    (2) Sole proprietors, partners and  S  corporation  shareholders.  (A)
  Where  the  taxpayer  is  a  sole  proprietor of a qualified empire zone
  enterprise, the taxpayer's tax factor  shall  be  that  portion  of  the
  amount  determined  in  paragraph  one  of  this  subdivision  which  is
  attributable to the income of the qualified empire zone enterprise. Such
  attribution shall be made in accordance with the ratio of the taxpayer's
  income  from  the  qualified empire zone enterprise allocated within the
  state, entering into New York adjusted gross income, to  the  taxpayer's
  New York adjusted gross income, or in accordance with such other methods
  as  the  commissioner  may prescribe as providing an apportionment which
  reasonably reflects the portion of the taxpayer's  tax  attributable  to
  the  income of the qualified empire zone enterprise. In no event may the
  ratio so determined exceed 1.0.
    (B)(i) Where the taxpayer is a member of  a  partnership  which  is  a
  qualified  empire  zone  enterprise,  the taxpayer's tax factor shall be
  that  portion  of  the  amount  determined  in  paragraph  one  of  this
  subdivision which is attributable to the income of the partnership. Such
  attribution  shall be made in accordance with the ratio of the partner's
  income from the partnership allocated within the state to the  partner's
  entire  income,  or  in  accordance  with  such  other  methods  as  the
  commissioner  may  prescribe  as  providing   an   apportionment   which
  reasonably reflects the portion of the partner's tax attributable to the
  income  of  the  partnership.  In  no  event may the ratio so determined
  exceed 1.0.
    (ii) For purposes of article nine-A,  thirty-two  or  thirty-three  of
  this  chapter,  the  term  "partner's income from the partnership" means
  partnership items of income, gain, loss  and  deduction,  and  New  York
  modifications  thereto, entering into entire net income, minimum taxable
  income,  alternative  entire  net  income  or  entire  net  income  plus
  compensation  and  the  term  "partner's entire income" means entire net
  income, minimum taxable income, alternative entire net income or  entire
  net  income  plus compensation, allocated within the state. For purposes
  of article twenty-two of this chapter, the term "partner's  income  from
  the  partnership"  means  partnership  items  of  income, gain, loss and
  deduction, and New York modifications thereto, entering  into  New  York
  adjusted  gross income, and the term "partner's entire income" means New
  York adjusted gross income.
    (C) Where the taxpayer is a shareholder of a New  York  S  corporation
  which  is  a  qualified  empire  zone  enterprise, the shareholder's tax
  factor shall be that portion of the amount determined in  paragraph  one
  of  this  subdivision  which  is  attributable  to  the  income of the S
  corporation. Such attribution shall be made in accordance with the ratio
  of the shareholder's income from the S corporation allocated within  the
  state,   entering   into   New   York  adjusted  gross  income,  to  the
  shareholder's New York adjusted gross income, or in accordance with such
  other  methods  as  the  commissioner  may  prescribe  as  providing  an
  apportionment which reasonably reflects the portion of the shareholder's
  tax  attributable to the income of the qualified empire zone enterprise.
  In no event may the ratio so determined exceed 1.0.
    (3) Combined returns or reports. (A) Where the taxpayer is a qualified
  empire zone enterprise and is required or permitted to make a return  or
  report   on  a  combined  basis  under  article  nine-A,  thirty-two  or
  thirty-three of this chapter, the taxpayer's tax  factor  shall  be  the
  amount  determined  in  paragraph  one  of  this  subdivision  which  is
  attributable to the income of the qualified empire zone enterprise. Such
  attribution shall be made in accordance with the ratio of the  qualified
  empire  zone  enterprise's  income  allocated  within  the  state to the
  combined group's income, or in accordance with such other methods as the

  commissioner  may  prescribe  as  providing   an   apportionment   which
  reasonably reflects the portion of the combined group's tax attributable
  to  the  income of the qualified empire zone enterprise. In no event may
  the ratio so determined exceed 1.0.
    (B)  The  term  "income of the qualified empire zone enterprise" means
  entire net income, minimum taxable income, alternative entire net income
  or entire net income plus compensation calculated as if the taxpayer was
  filing separately and the term "combined group's  income"  means  entire
  net  income,  minimum  taxable  income, alternative entire net income or
  entire net income plus compensation as shown on the combined  return  or
  report, allocated within the state.
    (4)  If  the amount determined in paragraph one of this subdivision is
  less than zero, a taxpayer shall not be  allowed  a  credit  under  this
  section.
    (g) Definitions and cross-references. For definitions of terms used in
  this  section  see  sections  fourteen  and fifteen of this article. For
  application of  the  credit  provided  for  in  this  section,  see  the
  following provisions of this chapter:
    (1) Article 9-A: Section 210: subdivision 28.
    (2) Article 22: Section 606: subsections (i) and (cc).
    (3) Article 32: Section 1456: subsection (p).
    (4) Article 33: Section 1511: subdivision (s).