There is a newer version of the New York Consolidated Laws
2012 New York Consolidated Laws
TAX - Tax
Article 32 - (1450 - 1468) Franchise Tax on Banking Corporations
1456 - Credits.
NY Tax L § 1456 (2012) What's This?
§ 1456. Credits. (a) Credit for servicing certain mortgages. Every
bank, as defined in section two thousand four hundred two of the public
authorities law, which shall have entered into a contract with the state
of New York mortgage agency to service mortgages acquired by such agency
pursuant to the state of New York mortgage agency act, shall have
credited to it annually to apply upon or in lieu of the payment of any
tax to which it may be subject under this article an amount equal to two
and ninety-three one hundredths percentum of the total principal and
interest collected by the bank during its taxable year on each such
mortgage secured by a lien on real estate improved by a one-family to
four-family residential structure and an amount equal to the interest
collected by the bank during its taxable year on each such mortgage
secured by a lien on real property improved by a structure occupied as
the residence of five or more families living independently of each
other, multiplied by a fraction the denominator of which shall be the
interest rate payable on the mortgage (computed to five decimal places)
and the numerator of which shall be .00125 in the case of such a
mortgage acquired by such agency for less than one million dollars, and
.00100 in the case of such a mortgage acquired by such agency for one
million dollars or more; provided, however, that there shall in no case
be credited to any such bank an amount in excess of the amount due from
such bank for taxes payable to the state under this article for the
taxable year for which such credit is given. In computing such tax
credit for the servicing of mortgages on one-family to four-family
residential structures, the bank shall be entitled to no credit for the
collection of curtailments or payments in discharge of any such
mortgage. For the purposes of this section, (a) a "curtailment" shall
mean amounts paid by mortgagors (1) in excess of the monthly constant
due during the month of collection and (2) in reduction of the unpaid
principal balance of the mortgage; in the absence of clear evidence to
the contrary, amounts paid in excess of the monthly constant due during
the month of collection shall be deemed to be in reduction of the unpaid
principal balance of the mortgage; and (b) "monthly constant" shall mean
the amount of principal and interest which is due and payable according
to the mortgage documents on each periodic payment date.
(b) Eligible business facility credit.
(1) On or after April first, nineteen hundred eighty-three, for
taxable years beginning before January first, two thousand, a credit
against the tax imposed by this article shall be allowed only to a
taxpayer owning or operating an eligible business facility, where such
taxpayer has received a certificate of eligibility for tax credits, or a
renewal or extension thereof, for such facility from the New York state
job incentive board prior to April first, nineteen hundred eighty-three,
or has received a certificate of eligibility for tax credits, or a
renewal or extension thereof, for such facility from the state tax
commission subsequent to such date pursuant to paragraph eight of this
subsection, and only with respect to such facility, to be computed as
hereinafter provided.
(2) The amount of the credit allowable in any taxable year shall be
the sum determined by multiplying the tax otherwise due by a percentage
to be determined by:
(A) ascertaining the percentage which the total of eligible property
values during the period covered by its return, as defined in paragraph
four of this subsection, bears to the average value of all the
taxpayer's real and tangible personal property except for inventory
within the state during such period. For the purposes of this
subparagraph only, the taxpayer's real and tangible personal property
shall include not only such property owned by the taxpayer but also
property rented to it, and the value of rented property shall be deemed
to be eight times the net annual rental rate, that is, the annual rental
rate paid by the taxpayer less any annual rental rate received by the
taxpayer from subrentals;
(B) ascertaining the percentage which the total wages, salaries and
other personal service compensation during such period, of employees,
except general executive officers and that portion of employee's wages,
salaries and other personal service compensation attributable, directly
or indirectly, to the production of adjusted eligible net income which
is allowed as a deduction from entire net income as set forth in
subsection (f) of section fourteen hundred fifty-three of this article,
serving in jobs created or retained in an eligible area (as the term
"eligible area" was defined by section one hundred fifteen of the
commerce law as it existed on March thirty-first, nineteen hundred
eighty-three) by such business facility, bears to the total wages,
salaries and other personal service compensation, during such period, of
all the taxpayer's employees within the state, except general executive
officers; and
(C) adding together the percentages so determined and dividing the
result by two; provided, however, that if no wages, salaries or other
personal service compensation were paid or incurred by the taxpayer
during such period to employees within the state other than general
executive officers, subparagraph (B) of this paragraph shall be
disregarded and the amount of credit allowable shall be determined by
multiplying the tax otherwise due by the percentage specified in
subparagraph (A) of this paragraph.
(3) In no event shall the credit herein provided for be allowed in any
amount which will reduce the tax payable to less than the dollar amount
fixed as a minimum tax by subsection (b) of section fourteen hundred
fifty-five.
(4) (A) Eligible property values, for the purposes of this subsection,
shall include such part of the value of depreciable real and tangible
personal property included in an eligible business facility as
represents:
(i) expenditures paid or incurred by the taxpayer for capital
improvements consisting of the construction, reconstruction, erection or
improvement of real property included in an eligible facility, which
construction, reconstruction, erection or improvements were commenced on
or after July first, nineteen hundred sixty-eight;
(ii) in the case of real property leased by the taxpayer from another
party, eight times the portion of the net annual rental rate
attributable to such construction, reconstruction, erection or
improvement commenced on or after July first, nineteen hundred
sixty-eight;
(iii) expenditures paid or incurred by the taxpayer for the purchase
of tangible personal property, other than vehicles, included in an
eligible business facility, provided such property was purchased on or
after July first, nineteen hundred sixty-eight; and
(iv) in the case of tangible personal property, other than vehicles,
leased by the taxpayer from another party and included in an eligible
business facility, eight times the net annual rental rate, provided the
period for which such property was leased by the taxpayer began on or
after July first, nineteen hundred sixty-eight.
(B) Provided, however, eligible property values for purposes of this
subdivision shall not include expenditures paid or incurred more than
one year prior to the filing of an application for a certificate of
eligibility pursuant to section one hundred nineteen of the commerce
law, as such section existed on March thirty-first, nineteen hundred
eighty-three.
(C) Provided further that, for purposes of this subsection, eligible
property values shall not include that portion of the value of property
which is used in the production of adjusted eligible net income which is
allowed as a deduction from entire net income as set forth in subsection
(f) of section fourteen hundred fifty-three of this article.
(5) The total of all credits allowed pursuant to this subsection in
any taxable year or years with reference to any eligible business
facility shall not exceed the total eligible property values included.
(6) If a credit is allowed for any taxable year as herein provided on
the basis of a certificate of eligibility, and if such certificate is
revoked or modified, the taxpayer shall report such revocation or
modification in its return for the taxable year during which it occurs,
and the tax commission shall recompute such credit and may assess any
additional tax resulting from such recomputation within the time fixed
by paragraph nine of subsection (c) of section ten hundred eighty-three
of this chapter.
(7) If a business facility owned or operated by a taxpayer shall be an
eligible business facility for only part of a taxable year, the credit
allowed by this subdivision shall be prorated according to the period
such facility was an eligible business facility, and if the total of the
eligible property values shall have changed during any taxable year, a
pro-rata adjustment shall be made in computing such credit.
(8) The state tax commission shall be empowered, on or after April
first, nineteen hundred eighty-three, to issue a certificate of
eligibility for tax credits to a taxpayer for an eligible business
facility with regard to which such taxpayer has, prior to July first,
nineteen hundred eighty-three, received from the New York state job
incentive board initial approval of an application for such certificate
by such board as evidenced by the minutes of the meeting of the board at
which such application was approved, or a letter of intent authorized by
section 102.4 of part one hundred two of title five of the codes, rules
and regulations of the state of New York regarding such certificate of
eligibility and to renew, extend, revoke or modify a certificate of
eligibility for tax credits, pursuant to section one hundred twenty of
the commerce law as such section existed on March thirty-first, nineteen
hundred eighty-three.
(9) For purposes of the requirement for eligibility for the credit
allowed under this subdivision that a business facility create or retain
not less than five jobs as provided in subdivision (c) of section one
hundred eighteen of the commerce law as such section existed on March
thirty-first, nineteen hundred eighty-three, a business facility shall
have (i) created not less than five jobs only if the number of jobs for
the taxable year exceeds the number of jobs at the time of the
commencement of the project as stated on its application for initial
approval by five or more; or (ii) retained not less than five jobs only
if initial approval was based on the retention of five or more jobs and
(A) the number of jobs for the taxable year is at least equal to the
number of jobs at the time of the commencement of the project as stated
on its application for initial approval or (B) where initial approval
was based on the retention of fewer jobs than the number of jobs at the
time of the commencement of the project as stated on its application for
initial approval, the number of jobs for the taxable year is at least
equal to the number approved for retention. For purposes of this
paragraph, the phrase "initial approval was based on the retention of
five or more jobs" shall mean that such initial approval was given by
the job incentive board to an applicant that had not stated in its
application for initial approval that it would increase the number of
jobs at its facility by at least five.
(c) Mortgage recording tax credit. (1) A taxpayer shall be allowed a
credit, to be credited against the tax imposed by this article. The
amount of the credit shall be the amount of the special additional
mortgage recording tax paid by the taxpayer pursuant to the provisions
of subdivision one-a of section two hundred fifty-three of this chapter
on mortgages recorded on and after January first, nineteen hundred
seventy-nine. Provided, however, no credit shall be allowed with respect
to a mortgage of real property principally improved or to be improved by
one or more structures containing in the aggregate not more than six
residential dwelling units, each dwelling unit having its own separate
cooking facilities, where the real property is located in one or more of
the counties comprising the metropolitan commuter transportation
district and where the mortgage is recorded on or after May first,
nineteen hundred eighty-seven. Provided, however, no credit shall be
allowed with respect to a mortgage of real property principally improved
or to be improved by one or more structures containing in the aggregate
not more than six residential dwelling units, each dwelling unit having
its own separate cooking facilities, where the real property is located
in the county of Erie and where the mortgage is recorded on or after May
first, nineteen hundred eighty-seven.
(2) In no event shall the credit herein provided for, and carryovers
of such credit, in the aggregate, be allowed in an amount which will
reduce the tax payable to less than the dollar amount fixed as a minimum
tax by subsection (b) of section fourteen hundred fifty-five. However,
if the amount of credit or carryovers of such credit, or both, allowable
under this subdivision for any taxable year reduces the tax to such
amount, any amount of credit or carryovers of such credit thus not
deductible in such taxable year may be carried over to the following
year or years and may be deducted from the taxpayer's tax for such year
or years.
(d) Empire zone capital credit.
(1) A taxpayer shall be allowed a credit against the tax imposed by
this article. The amount of the credit shall be equal to twenty-five
percent of the sum of the following investments and contributions made
during the taxable year and certified by the commissioner of economic
development: (A) for taxable years beginning before January first, two
thousand five, qualified investments made in, or contributions in the
form of donations made to, one or more empire zone capital corporations
established pursuant to section nine hundred sixty-four of the general
municipal law prior to January first, two thousand five, (B) qualified
investments in certified zone businesses which during the twelve month
period immediately preceding the month in which such investment is made
employed full-time within the state an average number of individuals,
excluding general executive officers, of two hundred fifty or fewer,
computed pursuant to the provisions of subparagraph (C) of paragraph two
of subsection (e) of this section, except for investments made by or on
behalf of an owner of the business, including, but not limited to, a
stockholder, partner or sole proprietor, or any related person, as
defined in subparagraph (C) of paragraph three of subsection (b) of
section four hundred sixty-five of the internal revenue code, and (C)
contributions of money to community development projects as defined in
regulations promulgated by the commissioner of economic development.
"Qualified investments" means the contribution of property to a
corporation in exchange for original issue capital stock or other
ownership interest, the contribution of property to a partnership in
exchange for an interest in the partnership, and similar contributions
in the case of a business entity not in corporate or partnership form in
exchange for an ownership interest in such entity. The total amount of
credit allowable to a taxpayer under this provision for all years, taken
in the aggregate, shall not exceed three hundred thousand dollars, and
shall not exceed one hundred thousand dollars with respect to the
investments and contributions described in each of subparagraphs (A),
(B) and (C) of this paragraph.
(2) The credit and carryover of such credit allowed under this
subsection for any taxable year shall not, in the aggregate, reduce the
tax due for such year to less than the minimum tax fixed by subsection
(b) of section fourteen hundred fifty-five of this article. However, if
the amount of credit or carryovers of such credit, or both, allowed
under this subsection for any taxable year reduces the tax to such
amount, or if any part of the credit or carryovers of such credit may
not be deducted from the tax otherwise due by reason of the final
sentence of this paragraph, any amount of credit or carryovers of such
credit thus not deductible in such taxable year may be carried over to
the following year or years and may be deducted from the tax for such
year or years. In addition, the amount of such credit, and carryovers of
such credit to the taxable year, deducted from the tax otherwise due may
not, in the aggregate, exceed fifty percent of the tax imposed under
section fourteen hundred fifty-five computed without regard to any
credit provided for under this article.
(2-a) Any carry over of a credit from prior taxable years will not be
allowed to an empire zone enterprise which is the basis of the credit,
if an empire zone retention certificate is not issued to such entity
pursuant to subdivision (w) of section nine hundred fifty-nine of the
general municipal law.
(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 entire net income shall be computed, pursuant to regulations
promulgated by the commissioner, so as to properly reflect the reduced
cost thereof arising from the application of the credit provided for
herein.
(4)(A) Where a taxpayer sells, transfers or otherwise disposes of
corporate stock, a partnership interest or other ownership interest
arising from the making of a qualified investment which was the basis,
in whole or in part, for the allowance of the credit provided for under
this 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) 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.
(5) If the designation of an area as an empire zone is no longer in
effect because the designations of all empire zones pursuant to article
eighteen-B of the general municipal law have expired, a taxpayer that
has made a contribution of money on or before the day immediately
preceding the day the empire zones expired to a community development
project approved by the commissioner of economic development shall be
deemed eligible to claim the empire zone capital credit under
subparagraph (C) of paragraph one of this subsection for additional
contributions made prior to April first, two thousand fourteen and
certified by the commissioner of economic development to that community
development project as payment of a commitment made by the taxpayer to
that community development project before the empire zones expired.
(e) 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 hereof.
(2) For 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, other than to general executive
officers, during the taxable year in an area designated or previously
designated as an empire zone or zone equivalent area pursuant to article
eighteen-B of the general municipal law where such employment is in a
job created in the area (i) during the period of its designation as an
empire zone, (ii) within four years of the expiration of such
designation, or (iii) during the ten year period immediately following
the date of designation as a zone equivalent area, provided, however,
that if the taxpayer's certification under article eighteen-B of the
general municipal law is revoked with respect to an empire zone or zone
equivalent area, any wages paid by the taxpayer, on or after the
effective date of such decertification, for employment in such zone
shall not constitute empire zone wages.
(B) "Targeted employee" means a New York resident who receives empire
zone wages and who is (i) an eligible individual under the 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, excluding general executive
officers, employed full-time" shall be computed by ascertaining the
number of such individuals employed by the taxpayer on the thirty-first
day of March, the thirtieth day of June, the thirtieth day of September
and the thirty-first day of December during each taxable year or other
applicable period, by adding together the number of such individuals
ascertained on each of such dates and dividing the sum so obtained by
the number of such dates occurring within such taxable year or other
applicable period.
(3) The credit provided for herein shall be allowed only where the
average number of individuals, excluding general executive officers,
employed full-time by the taxpayer in (i) the state and (ii) the empire
zone or area previously constituting such zone or zone equivalent area,
during the taxable year exceeds the average number of such individuals
employed full-time by the taxpayer in (i) the state and (ii) such zone
or area subsequently or previously constituting such zone or such zone
equivalent area, respectively, during the four years immediately
preceding the first taxable year in which the credit is claimed with
respect to such zone or area. Where the taxpayer provided full-time
employment within (i) the state or (ii) such zone or area during only a
portion of such four-year period, then for purposes of this paragraph
the term "four years" shall be deemed to refer instead to such portion,
if any.
The credit shall be allowed only with respect to the first taxable
year during which payments of empire zone wages are made and the
conditions set forth in this paragraph are satisfied, and with respect
to each of the four taxable years next following (but only, with respect
to each of such years, if such conditions are satisfied), in accordance
with paragraph four of this 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) (A) the
product of three thousand dollars and the average number of individuals
(excluding general executive officers) employed full-time by the
taxpayer, computed pursuant to the provisions of subparagraph (C) of
paragraph two of this 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
(B) the product of fifteen hundred dollars and the average number of
individuals (excluding general executive officers and individuals
described in subparagraph (A) of this paragraph) employed full-time by
the taxpayer, computed pursuant to the provisions of subparagraph (C) of
paragraph two of this subsection, who received empire zone wages for
more than half of the taxable year.
(C) For purposes of calculating the amount of the credit, individuals
employed within an empire zone or zone equivalent area within the
immediately preceding sixty months by a related person, as such term is
defined in subparagraph (c) of paragraph three of subsection (b) of
section four hundred sixty-five of the internal revenue code, shall not
be included in the average number of individuals described in
subparagraph (A) or subparagraph (B) of this paragraph, unless such
related person was never allowed a credit under this subsection with
respect to such employees. For the purposes of this subparagraph, a
"related person" shall include an entity which would have qualified as a
"related person" to the taxpayer if it had not been dissolved,
liquidated, merged with another entity or otherwise ceased to exist or
operate.
(D) If a taxpayer is certified in an empire zone designated under
subdivision (a) or (d) of section nine hundred fifty-eight of the
general municipal law, the dollar amounts specified under subparagraph
(A) or (B) of this paragraph shall be increased by five hundred dollars
for each qualifying individual under such subparagraph who received,
during the taxable year, wages in excess of forty thousand dollars.
(E) The requirement in this paragraph that an employee must receive
empire zone wages for more than half the taxable year shall not apply in
the first taxable year of a taxpayer satisfying the criteria set forth
in this subparagraph. In such a case, the credit allowed under this
subsection shall be computed by utilizing the number of individuals
(excluding general executive officers) employed full time by the
taxpayer on the last day of its first taxable year. A taxpayer shall
satisfy the following criteria: (i) such taxpayer acquired real or
tangible personal property during its first taxable year from an entity
which is not a related person (as such term is defined in subdivision
(g) of section fourteen of this chapter); (ii) the first taxable year of
such taxpayer shall be a short taxable year of not more than seven
months in duration; and (iii) the number of individuals employed
full-time on the last day of such first taxable year shall be at least
one hundred ninety and substantially all of such individuals must have
been previously employed by the entity from whom such taxpayer purchased
its assets.
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
fourteen hundred fifty-five computed without regard to any credit
provided for under this article.
(5) The credit and carryovers of such credit allowed under this
subsection for any taxable year shall not, in the aggregate, reduce the
tax due for such year to less than the minimum tax fixed by subsection
(b) of section fourteen hundred fifty-five of this article. However, if
the amount of credit or carryovers of such credit, or both, allowed
under this subsection for any taxable year reduces the tax to such
amount, or if any part of the credit or carryovers of such credit may
not be deducted from the tax otherwise due by reason of the final
sentence in paragraph four hereof, any amount of credit or carryovers of
such credit thus not deductible in such taxable year may be carried over
to the following year or years and may be deducted from the taxpayer's
tax for such year or years.
(5-a) Any carry over of a credit from prior taxable years will not be
allowed if an empire zone retention certificate is not issued pursuant
to subdivision (w) of section nine hundred fifty-nine of the general
municipal law to the empire zone enterprise which is the basis of the
credit.
(f) Credit for employment of persons with disabilities. (1) Allowance
of credit. A taxpayer shall be allowed a credit, to be computed as
hereinafter provided, against the tax imposed by this article, for
employing within the state a qualified employee.
(2) Qualified employee. A qualified employee is an individual:
(A) who is certified by the education department, or in the case of an
individual who is blind or visually handicapped, by the state agency
responsible for provision of vocational rehabilitation services to the
blind and visually handicapped: (i) as a person with a disability which
constitutes or results in a substantial handicap to employment and (ii)
as having completed or as receiving services under an individualized
written rehabilitation plan approved by the education department or
other state agency responsible for providing vocational rehabilitation
services to such individual; and
(B) who has worked on a full-time basis for the employer who is
claiming the credit for at least one hundred eighty days or four hundred
hours.
(3) Amount of credit. Except as provided in paragraph four of this
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 employees, to
services rendered during the one-year period beginning one year after
the employee begins work for the taxpayer.
(5) Carryover. The credit and carryovers of such credit allowed under
this subsection for any taxable year shall not, in the aggregate, reduce
the tax due for such year to less than the minimum tax fixed by
subsection (b) of section fourteen hundred fifty-five of this article.
However, if the amount of credit or carryovers of such credit, or both,
allowed under this subdivision for any taxable year reduces the tax to
such amount, then any amount of credit or carryovers of such credit thus
not deductible in such taxable year may be carried over to the following
year or years and may be deducted from the taxpayer's tax for such year
or years.
(6) Coordination with federal work opportunity tax credit. The
provisions of sections fifty-one and fifty-two of the internal revenue
code, as such sections applied on October first, nineteen hundred
ninety-six, that apply to the work opportunity tax credit for vocational
rehabilitation referrals shall apply to the credit under this 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.
(g) 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; provided,
however, that the credit allowable under subsection (e) of this section
shall be deducted prior to all other credits described in this sentence.
Credits allowable under this article which are refundable shall be
deducted last.
(h) Credits for New York S corporations. Notwithstanding the
provisions of this section, no carryover of credit allowable in a New
York C year shall be deducted from the tax otherwise due under this
article in a New York S year, and no credit allowable in a New York S
year, or carryover of such credit, shall be deducted from the tax
imposed by this article. However, a New York S year shall be treated as
a taxable year for purposes of determining the number of taxable years
to which a credit may be carried over under this section.
Notwithstanding the first sentence of this subsection, however, the
credit for the special additional mortgage recording tax shall be
allowed as provided in subsection (c) of this section, and the carryover
of any such credit shall be determined without regard to whether the
credit is carried from a New York C year to a New York S year or
vice-versa.
(i) Investment tax credit (ITC). (1) A taxpayer shall be allowed a
credit, to be computed as hereinafter provided, against the tax imposed
by this article. Provided, however, a taxpayer shall not be allowed such
credit provided by this paragraph unless (i) eighty percent or more 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, or (ii) the average number of employees that
perform the administrative and support functions resulting from or
related to the qualifying uses of such equipment and are located in this
state during the taxable year for which the credit is claimed is equal
to or greater than ninety-five percent of the average number of
employees that perform these functions and are located in this state
during the thirty-six months immediately preceding the year for which
the credit is claimed, or (iii) the number of employees located in this
state during the taxable year for which the credit is claimed is equal
to or greater than ninety percent of the number of employees located in
this state on December thirty-first, nineteen hundred ninety-eight or,
if the taxpayer was not a calendar year taxpayer in nineteen hundred
ninety-eight, the last day of its first taxable year ending after
December thirty-first, nineteen hundred ninety-eight. If the taxpayer
becomes subject to tax in this state after the taxable year beginning in
nineteen hundred ninety-eight, then the taxpayer is not required to
satisfy the employment test provided in the preceding sentence of this
subparagraph for its first taxable year. For the purposes of
subparagraph (iii) of this paragraph the employment test will be based
on the number of employees located in this state on the last day of the
first taxable year the taxpayer is subject to tax in this state. If the
uses of the property must be aggregated to determine whether the
property is principally used in qualifying uses, then either each
affiliate using the property must satisfy this employment test or this
employment test must be satisfied through the aggregation of the
employees of the taxpayer, its affiliated regulated broker, dealer, and
registered investment adviser using the property. The amount of the
credit shall be the percent provided for herein below of the investment
credit base. The investment credit base is the cost or other basis for
federal income tax purposes of tangible personal property and other
tangible property, including buildings and structural components of
buildings, described in paragraph two of this 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. In the
case of a combined report the term investment credit base shall mean the
sum of the investment credit base of each corporation included on such
report. The percentage to be used to compute the credit allowed pursuant
to this subsection shall be
For taxable years beginning after
1997 .................................. five percent with
respect to the first three hundred fifty million dollars of
the investment credit base, and four percent with respect to
the investment credit base in excess of three hundred fifty
million dollars.
(2) A credit shall be allowed under this 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 (A) principally used in
the ordinary course of the taxpayer's trade or business as a broker or
dealer in connection with the purchase or sale (which shall include but
not be limited to the issuance, entering into, assumption, offset,
assignment, termination, or transfer) of stocks, bonds or other
securities as defined in section four hundred seventy-five (c) (2) of
the Internal Revenue Code, or of commodities as defined in section four
hundred seventy-five (e) of the Internal Revenue Code, or (B)
principally used in the ordinary course of the taxpayer's trade or
business of providing investment advisory services for a regulated
investment company as defined in section eight hundred fifty-one of the
Internal Revenue Code, or lending, loan arrangement or loan origination
services to customers in connection with the purchase or sale (which
shall include but not be limited to the issuance, entering into,
assumption, offset, assignment, termination, or transfer) of securities
as defined in section four hundred seventy-five (c) (2) of the Internal
Revenue Code. For purposes of subparagraphs (A) and (B) of this
paragraph, property purchased by a taxpayer affiliated with a regulated
broker, dealer, or registered investment adviser is allowed a credit
under this subsection if the property is used by its affiliated
regulated broker, dealer, or registered investment adviser in accordance
with this subsection. For purposes of determining if the property is
principally used in qualifying uses, the uses by the taxpayer described
in subparagraphs (A) and (B) of this paragraph may be aggregated. In
addition, the uses by the taxpayer, its affiliated regulated broker,
dealer and registered investment adviser under either or both of such
subparagraphs may be aggregated.
(3) A taxpayer shall not be allowed a credit under this subsection
with respect to any property described in paragraph two of this
subsection if such property qualifies for the deduction allowed under
subsection (k) of section one thousand four hundred fifty-three of this
article whether or not such amount shall have been deducted.
(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 broker, dealer, or registered investment
adviser that uses such property in accordance with subparagraph (A) or
(B) 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.
(5) Except as otherwise provided in this paragraph, the credit allowed
under this subsection for any taxable year shall not reduce the tax due
for such year to less than the dollar amount fixed as a minimum tax by
subsection (b) of section one thousand four hundred fifty-five of this
article. However, if the amount of credit allowable under this
subsection for any taxable year reduces the tax to such amount, any
amount of credit allowed for a taxable year may be carried over to the
fifteen taxable years next following such taxable year and may be
deducted from the taxpayer's tax for such year or years. In lieu of such
carryover, any such taxpayer which qualifies as a new business under
paragraph eight of this subsection may elect to treat the amount of such
carryover as an overpayment of tax to be credited or refunded in
accordance with the provisions of section one thousand eighty-six of
this chapter, provided, however, the provisions of subsection (c) of
section one thousand eighty-eight of this chapter notwithstanding no
interest shall be paid thereon.
(6) At the option of the taxpayer an eligible business facility for
which a credit is allowed under subsection (b) of this section may be
treated as property (A) principally used in the ordinary course of the
taxpayer's trade or business as a broker or dealer in connection with
the purchase or sale (which shall include but not be limited to the
issuance, entering into, assumption, offset, assignment, termination, or
transfer) of stocks, bonds or other securities as defined in section
four hundred seventy-five (c) (2) of the Internal Revenue Code, or of
commodities as defined in section four hundred seventy-five (e) of the
Internal Revenue Code, or (B) principally used in the ordinary course of
the taxpayer's trade or business of providing investment advisory
services for a regulated investment company as defined in section eight
hundred fifty-one of the Internal Revenue Code, or lending, loan
arrangement or loan origination services to customers in connection with
the purchase or sale (which shall include but not be limited to the
issuance, entering into, assumption, offset, assignment, termination, or
transfer) of securities as defined in section four hundred seventy-five
(c) (2) of the Internal Revenue Code provided the property otherwise
qualifies under paragraph two of this subsection, in which event a
credit shall not be allowed under subsection (b) of this section.
(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 a qualified use prior to the end of the taxable year in which
the credit is to be taken, the amount of the credit shall be that
portion of the credit provided for in this 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 taxable years commencing on or after January first, nineteen
hundred ninety-eight the amount required to be added back pursuant to
this paragraph shall be augmented by an amount equal to the product of
such amount and the underpayment rate of interest (without regard to
compounding), set by the commissioner pursuant to subsection (e) of
section one thousand ninety-six of this chapter, in effect on the last
day of the taxable year.
(F) If, as of the close of the taxable year, there is a net increase
with respect to the taxpayer in the amount of nonqualified nonrecourse
financing (within the meaning of section 46(c)(8) of the Internal
Revenue Code) with respect to any property with respect to which the
credit under this 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.
(8) For purposes of paragraph five of this subsection, a new business
shall include any corporation, except a corporation which:
(A) over fifty percent of the number of shares of stock entitling the
holders thereof to vote for the election of directors or trustees is
owned or controlled, either directly or indirectly, by a taxpayer
subject to tax under this article; section one hundred eighty-three, one
hundred eighty-four, one hundred eighty-five or one hundred eighty-six
of article nine; article nine-A or article thirty-three of this chapter;
or
(B) is substantially similar in operation and in ownership to a
business entity (or entities) taxable, or previously taxable, under this
article; section one hundred eighty-three, one hundred eighty-four, one
hundred eighty-five or one hundred eighty-six of article nine; article
nine-A or article 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
(C) has been subject to tax under this article for more than five
taxable years (excluding short taxable years).
(9)(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 (E) 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.
(j) Credit for purchase of an automated external defibrillator. A
taxpayer shall be allowed a credit as hereinafter provided, against the
tax imposed by this article for the purchase, other than for resale, of
an automated external defibrillator, as such term is defined in section
three thousand-b of the public health law. The amount of the credit
shall be the cost to the taxpayer of automated external defibrillators
purchased during the taxable year, such credit not to exceed five
hundred dollars with respect to each unit purchased. The credit allowed
under this subsection for any taxable year shall not reduce the tax due
for such year to less than the minimum tax fixed by subsection (b) of
section fourteen hundred fifty-five of this article.
(k) (1) A taxpayer shall be allowed a credit against the tax imposed
by this article equal to twenty percent of the premium paid during the
taxable year for long-term care insurance. In order to qualify for such
credit, the taxpayer's premium payment must be for the purchase of or
for continuing coverage under a long-term care insurance policy that
qualifies for such credit pursuant to section one thousand one hundred
seventeen of the insurance law.
(2) In no event shall the credit herein provided for, and carryovers
of such credit, be allowed in an amount which will reduce the tax
payable to less than the dollar amount fixed as a minimum tax by
subsection (b) of section fourteen hundred fifty-five of this article.
If, however, the amount of credit or carryovers of such credit, or both,
allowable under this subsection for any taxable year reduces the tax to
such amount, any amount of credit or carryovers of such credit thus not
deductible in such taxable year may be carried over to the following
year or years and may be deducted from the taxpayer's tax for such year
or years.
(l) Low-income housing credit. (1) Allowance of credit. A taxpayer
shall be allowed a credit against the tax imposed by this article with
respect to the ownership of eligible low-income buildings, computed as
provided in section eighteen of this chapter.
(2) Application of credit. The credit and carryovers of such credit
allowed under this subsection for any taxable year shall not, in the
aggregate, reduce the tax due for such year to less than the minimum tax
fixed by subsection (b) of section fourteen hundred fifty-five of this
article. However, if the amount of credit or carryovers of such credit,
or both, allowed under this subsection for any taxable year reduces the
tax to such amount, then any amount of credit or carryovers of such
credit thus not deductible in such taxable year may be carried over to
the following year or years and may be deducted from the taxpayer's tax
for such year or years.
(3) Credit recapture. For provisions requiring recapture of credit,
see subdivision (b) of section eighteen of this chapter.
(m) 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) Carryover. The credit and carryovers of such credit allowed under
this subsection for any taxable year shall not, in the aggregate, reduce
the tax due for such year to less than the minimum tax fixed by
subsection (b) of section fourteen hundred fifty-five of this article.
However, if the amount of credit or carryovers of such credit, or both,
allowed under this subsection for any taxable year reduces the tax to
such amount, then any amount of credit or carryovers of such credit thus
not deductible in such taxable year may be carried over to the following
year or years and may be deducted from the taxpayer's tax for such year
or years.
(n) 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. The credit allowed under this subsection
for any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by subsection (b) of section fourteen hundred
fifty-five of this article. However, if the amount of credit allowed
under this subsection for any taxable year reduces the tax to such
amount, then any amount of credit thus not deductible in such taxable
year shall be treated as an overpayment of tax to be credited or
refunded in accordance with the provisions of section ten hundred
eighty-six of this chapter. Provided, however, the provisions of
subsection (c) of section ten hundred eighty-eight of this chapter
notwithstanding, no interest shall be paid thereon.
(3) Credit recapture. For provisions requiring recapture of credit,
see subdivision (c) of section twenty of this chapter.
(o) QEZE credit for real property taxes. (1) Allowance of credit. A
taxpayer which is a qualified empire zone enterprise shall be allowed a
credit for eligible real property taxes, to be computed as provided in
section fifteen of this chapter, against the tax imposed by this
article.
(2) Application of credit. The credit allowed under this subsection
for any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by subsection (b) of section fourteen hundred
fifty-five of this article. However, if the amount of credit allowed
under this subsection for any taxable year reduces the tax to such
amount, then any amount of credit thus not deductible in such taxable
year shall be treated as an overpayment of tax to be credited or
refunded in accordance with the provisions of section ten hundred
eighty-six of this chapter. Provided, however, the provisions of
subsection (c) of section ten hundred eighty-eight of this chapter
notwithstanding, no interest shall be paid thereon.
(p) QEZE tax reduction credit. (1) Allowance of credit. A taxpayer
which is a qualified empire zone enterprise shall be allowed a QEZE tax
reduction credit, to be computed as provided in section sixteen of this
chapter, against the tax imposed by this article.
(2) Application of credit. The credit allowed under this subsection
for any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by paragraph three of subsection (b) of
section fourteen hundred fifty-five of this article.
(q) 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. The credit allowed under this subsection
for any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by paragraph three of subsection (b) of
section fourteen hundred fifty-five of this article. However, if the
amount of credits allowed under this subsection for any taxable year
reduces the tax to such amount, any amount of credit thus not deductible
in such taxable year shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section ten
hundred eighty-six of this chapter. Provided, however, the provisions of
subsection (c) of section ten hundred eighty-eight of this chapter
notwithstanding, no interest shall be paid thereon.
(r) 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. The credit allowed under this subsection
for any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by paragraph three of subsection (b) of
section fourteen hundred fifty-five of this article. However, if the
amount of credit allowed under this subsection for any taxable year
reduces the tax to such amount, any amount of credit thus not deductible
in such taxable year shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section ten
hundred eighty-six of this chapter. Provided, however, the provisions of
subsection (c) of section ten hundred eighty-eight of this chapter
notwithstanding, no interest shall be paid thereon.
(s) 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. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by paragraph three of subsection (b) of
section fourteen hundred fifty-five of this article. However, if the
amount of credits allowed under this subdivision for any taxable year
reduces the tax to such amount, any amount of credit thus not deductible
in such taxable year shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section one
thousand eighty-six of this chapter. Provided, however, the provisions
of subsection (c) of section one thousand eighty-eight of this chapter
notwithstanding, no interest shall be paid thereon.
* (t) Security training tax credit. (1) Allowance of credit. A
taxpayer shall be allowed a credit, to be computed as provided in
section twenty-six of this chapter, against the tax imposed by this
article.
(2) Application of credit. The credit allowed under this subsection
for any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by paragraph three of subsection (b) of
section fourteen hundred fifty-five of this article. However, if the
amount of credits allowed under this subsection for any taxable year
reduces the tax to such amount, any amount of credit thus not deductible
in such taxable year shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section one
thousand eighty-six of this chapter. Provided, however, the provisions
of subsection (c) of section one thousand eighty-eight of this chapter
notwithstanding, no interest shall be paid thereon.
* NB There are 2 sb§(t)'s
* (t) Credit for fuel cell electric generating equipment expenditures.
(1) Allowance of credit. For taxable years beginning before January
first, two thousand nine, a taxpayer shall be allowed a credit against
the tax imposed by this article, equal to its qualified fuel cell
electric generating equipment expenditures. This credit shall not exceed
one thousand five hundred dollars per generating unit with respect to
any taxable year. The credit provided for in this subsection shall be
allowed with respect to the taxable year in which the fuel cell electric
generating equipment is placed in service.
(2) Qualified fuel cell electric generating equipment expenditures.
(A) Qualified fuel cell electric generating equipment expenditures are
the costs, incurred on or after July first, two thousand five,
associated with the purchase of on-site electricity generation units
utilizing proton exchange membrane fuel cells, providing a rated
baseload capacity of no less than one kilowatt and no more than one
hundred kilowatts of electricity, which are located in this state at the
time the qualified fuel cell electric generating equipment is placed in
service.
(B) Qualified fuel cell electric generating equipment expenditures
shall also include costs, incurred on or after July first, two thousand
five, for materials, labor for on-site preparation, assembly and
original installation, engineering services, designs and plans directly
related to construction or installation and utility compliance costs.
(C) Such qualified expenditures shall not include interest or other
finance charges.
(D) The amount of any federal, state or local grant received by the
taxpayer, which was used for the purpose and/or installation of such
equipment and which was not included in the federal gross income of the
taxpayer, shall not be included in the amount of such qualified
expenditures.
(3) Application of credit. The credit allowed under this subsection
for any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by paragraph three of subsection (b) of
section fourteen hundred fifty-five of this article. However, if the
amount of credit allowed under this subsection for any taxable year
reduces the tax to such amount, any amount of credit thus not deductible
in such taxable year may be carried over to the following year or years
and may be deducted from the taxpayer's tax for such year or years.
* NB There are 2 sb§(t)'s
* (u) Excelsior jobs program tax credit. (1) Allowance of credit. A
taxpayer will be allowed a credit, to be computed as provided in section
thirty-one of this chapter, against the tax imposed by this article.
(2) The credit allowed under this subsection for any taxable year will
not reduce the tax due for such year to less than the minimum tax fixed
by paragraph three of subsection (b) of section fourteen hundred
fifty-five of this article. However, if the amount of credit allowed
under this subsection for any taxable year reduces the tax to such
amount, any amount of credit thus not deductible in such taxable year
will be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section one thousand eighty-six of
this chapter. Provided, however, the provisions of subsection (c) of
section one thousand eighty-eight of this chapter notwithstanding, no
interest will be paid thereon.
* NB There are 2 sb§ (u)'s
* (u) Credit for rehabilitation of historic properties. (1)(A) For
taxable years beginning on or after January first, two thousand ten and
before January first, two thousand fifteen, a taxpayer shall be allowed
a credit as hereinafter provided, against the tax imposed by this
article, in an amount equal to one hundred percent of the amount of
credit allowed the taxpayer with respect to a certified historic
structure under subsection (a)(2) of section 47 of the federal internal
revenue code with respect to a certified historic structure located
within the state. Provided, however, the credit shall not exceed five
million dollars. For taxable years beginning on or after January first,
two thousand fifteen, a taxpayer shall be allowed a credit as
hereinafter provided, against the tax imposed by this article, in an
amount equal to thirty percent of the amount of credit allowed the
taxpayer with respect to a certified historic structure under subsection
(a)(2) of section 47 of the federal internal revenue code with respect
to a certified historic structure located within the state. Provided,
however, the credit shall not exceed one hundred thousand dollars.
(B) If the taxpayer is a partner in a partnership or a shareholder of
a New York S corporation, then the credit caps imposed in subparagraph
(A) of this paragraph shall be applied at the entity level, so that the
aggregate credit allowed to all the partners or shareholders of each
such entity in the taxable year does not exceed the credit cap that is
applicable in that taxable year.
(2) Tax credits allowed pursuant to this subsection shall be allowed
in the taxable year that the qualified rehabilitation is placed in
service under section 167 of the federal internal revenue code.
(3) If the credit allowed the taxpayer pursuant to section 47 of the
internal revenue code with respect to a qualified rehabilitation is
recaptured pursuant to subsection (a) of section 50 of the internal
revenue code, a portion of the credit allowed under this subsection must
be added back in the same taxable year and in the same proportion as the
federal recapture.
(4) The credit allowed under this subsection for any taxable year
shall not reduce the tax to less than the dollar amount fixed as a
minimum tax by subsection (b) of section fourteen hundred fifty-five of
this article. If the amount of credit allowable under this subsection
for any taxable year reduces the tax to such amount, 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.
(5) To be eligible for the credit allowable under this subsection the
rehabilitation project shall be in whole or in part a targeted area
residence within the meaning of section 143(j) of the internal revenue
code or located within a census tract which is identified as being at or
below one hundred percent of the state median family income in the most
recent federal census.
* NB There are 2 sb§ (u)'s
(v) Temporary deferral nonrefundable payout credit. (1) Allowance of
credit. A taxpayer shall be allowed a credit, to be computed as provided
in subdivision one of section thirty-four of this chapter, against the
tax imposed by this article.
(2) Application of credit. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for that year to less
than the minimum tax fixed by subsection (b) of section fourteen hundred
fifty-five of this article. However, if the amount of credit allowed
under this subdivision for any taxable year reduces the tax to such
amount, any amount of credit thus not deductible in such taxable year
may be carried over to the following year or years and may be deducted
from the taxpayer's tax for such year or years.
(w) Temporary deferral refundable payout credit. (1) Allowance of
credit. A taxpayer shall be allowed a credit, to be computed as provided
in subdivision two of section thirty-four of this chapter, against the
tax imposed by this article.
(2) Application of credit. In no event shall the credit under this
section be allowed in an amount which will reduce the tax to less than
the minimum tax fixed by subsection (b) of section fourteen hundred
fifty-five of this article. If, however, the amount of credit allowed
under this section for any taxable year reduces the tax to such amount,
any amount of credit not deductible in such taxable year shall be
treated as an overpayment of tax to be refunded in accordance with the
provisions of section one thousand eighty-six of this chapter, provided
however, that no interest shall be paid thereon.
* (x) Economic transformation and facility redevelopment program tax
credit. (1) Allowance of credit. A taxpayer shall be allowed a credit,
to be computed as provided in section thirty-five of this chapter,
against the tax imposed by this article.
(2) The credit allowed under this subsection for any taxable year will
not reduce the tax due for such year to less than the minimum tax fixed
by paragraph three of subsection (b) of section fourteen hundred
fifty-five of this article. However, if the amount of credit allowed
under this subsection for any taxable year reduces the tax to such
amount, any amount of credit thus not deductible in such taxable year
will be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section one thousand eighty-six of
this chapter. Provided, however, the provisions of subsection (c) of
section one thousand eighty-eight of this chapter notwithstanding, no
interest will be paid thereon.
* NB Repealed December 31, 2021
(y) Empire state jobs retention program credit. (1) Allowance of
credit. A taxpayer shall be allowed a credit, to be computed as
provided in section thirty-six of this chapter, against the taxes
imposed by this article.
(2) Application of credit. The credit allowed under this subsection
for any taxable year will not reduce the tax due for such year to less
than the minimum tax fixed by this article. However, if the amount of
credit allowed under this subsection for any taxable year reduces the
tax to such amount, any amount of credit thus not deductible in such
taxable year will be treated as an overpayment of tax to be credited or
refunded in accordance with the provisions of section one thousand
eighty-six of this chapter. Provided, however, the provisions of
subsection (c) of section one thousand eighty-eight of this chapter
notwithstanding, no interest will be paid thereon.
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