N.Y. Tax Law § 1511: Credits

§ 1511. Credits. (a) Credit for certain other premium taxes. In

computing the tax imposed by this article there shall be allowed a

credit for the amount of taxes paid or accrued by the taxpayer during

the taxable year on premiums for any insurance against loss or damage by

fire under section nine thousand one hundred four or section nine

thousand one hundred five of the insurance law or under the charters of

the cities of Buffalo or New York; provided, however, that any unused

credit remaining may not be carried over to any other year.

(b) Credit against reciprocal taxes imposed by this state. In

assessing taxes under the reciprocal provisions of section one thousand

one hundred twelve of the insurance law, credit shall be allowed for any

taxes paid under this article.

(c) Credit for certain taxes payable to other jurisdictions. (1) If,

by the laws of any state other than this state, or by the action of any

public official of such other state, any insurer organized or domiciled

in this state, or the duly authorized agents thereof, shall be required

to pay taxes for the privilege of doing business in such other state and

such amounts are imposed or assessed because the taxes which are or

would be imposed under this chapter and the insurance law upon insurers

organized or domiciled in such other state are greater than those

required of insurers organized or domiciled in this state by the laws of

such other state for the privilege of doing business therein, then and

in every case, to the extent such amounts are legally due to such other

states, an insurer organized or domiciled in this state may claim a

credit, as hereinafter provided, against the tax payable pursuant to

this article of a sum not to exceed ninety per cent of such amount.

Provided, such credit shall in no event be greater than the tax payable

pursuant to this article during the taxable year with respect to which

such amount has been imposed or assessed by such other states. For

purposes of this section, the term "taxes for the privilege of doing

business" shall include, but shall not be limited to, a tax on or

measured by income.

(2) A credit may be claimed for the amount computed as provided in

paragraph one of this subdivision, on the return required pursuant to

section fifteen hundred fifteen, against the tax imposed pursuant to

this article for the taxable year in which such amount shall be paid. To

the extent such credit shall exceed the amount payable pursuant to

section fifteen hundred sixteen of this article for the taxable year

against which the credit is allowed, the difference between the amount

allowed as a credit and the tax payable pursuant to section fifteen

hundred sixteen shall be credited or refunded by the tax commission,

without interest.

(3) The credit allowed pursuant to this subdivision shall be in

addition to the credits allowed pursuant to subdivisions (a) and (b) of

this section.

(4) The superintendent of financial services and the tax commission

shall examine claims for credit or refund made under this subdivision.

If the superintendent of financial services or the tax commission shall

determine that any amount for which a credit shall have been claimed was

not legally due to another state or that an error exists in the amount

of credit shown on such return, or the amount claimed as a refund or

refunded, the tax commission shall take appropriate action under this

chapter for the assessment and collection of any tax resulting from the

disallowance of a claim for credit made under this subdivision or to

disallow any such claim for refund.

(5) Any taxpayer which commences an action or proceeding in any state

or federal court to contest the validity of any assessment made against

the taxpayer by another state pursuant to a statute similar to section

one thousand one hundred twelve of the insurance law or any other

statute or regulation of another state under which retaliatory taxes or

other charges are imposed or assessed against such taxpayer shall give

the state tax commission and the superintendent of financial services

written notice of the commencement of such action or proceeding within

five days after such commencement.

(d) Credit relating to eligible business facilities. (1) On or after

April first, nineteen hundred eighty-three, for taxable years beginning

before January first, two thousand, a credit against the tax imposed by

this article shall be allowed only to an insurance corporation owning or

operating an eligible business facility where such corporation has

received a certificate of eligibility for tax credits, or a renewal or

extension thereof, for such facility from the New York state job

incentive board prior to April first, nineteen hundred eighty-three, or

has received a certificate of eligibility for tax credits, or a renewal

or extension thereof, for such facility from the state tax commission

subsequent to such date pursuant to paragraph eight of this subdivision,

and only with respect to such facility, to be computed as hereinafter

provided.

(2) The amount of the credit allowable in any taxable year shall be

the sum determined by multiplying the tax otherwise due by a percentage

to be determined by:

(A) ascertaining the percentage which the total of eligible property

values during the taxable year, as defined in paragraph four of this

subdivision, bears to the average value of all real and tangible

personal property connected with the insurance corporation and located

within the state, during such year. For the purposes of this

subparagraph only, real and tangible personal property connected with

the insurance corporation shall include not only such property owned by

the insurance corporation but also property rented to it, and the value

of rented property shall be deemed to be eight times the net annual

rental rate, that is, the annual rental rate paid by the insurance

corporation less any annual rental rate received by it from subrentals.

(B) ascertaining the percentage which the total wages, salaries and

other personal service compensation during the taxable year to

employees, except general executive officers, serving in jobs created or

retained in an eligible area (as the term "eligible area" was defined by

section one hundred fifteen of the commerce law as it existed on March

thirty-first, nineteen hundred eighty-three) by such business facility,

bears to the total wages, salaries and other personal service

compensation during such taxable year of such insurance corporation's

employees within the state, except general executive officers.

(C) adding together the percentages so determined and dividing the

result by two; provided, however, that if no wages, salaries or other

personal service compensation was paid or incurred by the insurance

corporation during such year to employees in this state, subparagraph

(B) of this paragraph shall be disregarded and the amount of credit

allowable shall be determined by multiplying the tax otherwise due by

the percentage specified in subparagraph (A) of this paragraph.

(3) In no event shall the credit herein provided for be allowed in an

amount which will reduce the tax payable to less than the minimum fixed

by paragraph four of subdivision (a) of section fifteen hundred two of

such chapter.

(4) (A) Eligible property values, for the purposes of this subsection,

shall include such part of the value of depreciable real and tangible

personal property included in an eligible business facility as

represents:

(i) expenditures paid or incurred by the taxpayer for capital

improvements consisting of the construction, reconstruction, erection or

improvement of real property included in an eligible business facility,

which construction, reconstruction, erection or improvement was

commenced on or after July first, nineteen hundred sixty-eight and

expenditures paid or incurred by the taxpayer for the acquisition of

real property, included in an eligible business facility, on or after

January first, nineteen hundred seventy-seven.

(ii) in the case of real property leased by the taxpayer from another

party, eight times the portion of the net annual rental rate

attributable to such expenditures paid or incurred by the lessor for

such construction, reconstruction, erection or improvement commenced on

or after July first, nineteen hundred sixty-eight and, with respect to

real property leased by the taxpayer from another party on or after

January first, nineteen hundred seventy-seven, eight times any remaining

portion of the net annual rental rate.

(iii) expenditures paid or incurred by the taxpayer for the purchase

of tangible personal property, other than vehicles, included in an

eligible business facility, provided such property was purchased on or

after July first, nineteen hundred sixty-eight; and

(iv) in the case of tangible personal property, other than vehicles,

leased by the taxpayer from another party and included in an eligible

business facility, eight times the net annual rental rate, provided the

period for which such property was leased by the taxpayer began on or

after July first, nineteen hundred sixty-eight.

(B) Provided, however, eligible property values for purposes of this

subsection shall not include expenditures paid or incurred more than one

year prior to the filing of an application for a certificate of

eligibility pursuant to section one hundred nineteen of the commerce

law, as such section existed on March thirty-first, nineteen hundred

eighty-three.

(5) The total of all credits allowed pursuant to this subdivision in

any taxable year or years with reference to any eligible business

facility shall not exceed the total eligible property values included in

such facility.

(6) If a credit is allowed for any taxable year as herein provided on

the basis of a certificate of eligibility, and if such certificate is

revoked or modified, the taxpayer shall report such revocation or

modification in its report for the taxable year during which it occurs

and the tax commission shall recompute such credit and may assess any

additional tax resulting from such recomputation within the time fixed

by paragraph nine of subsection (c) of section ten hundred eighty-three

of this chapter.

(7) If a business facility owned or operated by an insurance

corporation shall be an eligible business facility for only part of a

taxable year, the credit allowed by this subdivision shall be prorated

according to the period such facility was an eligible business facility,

and if the total of the eligible property values shall have changed

during any taxable year, a pro-rata adjustment shall be made in

computing such credit.

(8) The state tax commission shall be empowered, on or after April

first, nineteen hundred eighty-three, to issue a certificate of

eligibility for tax credits to a taxpayer for an eligible business

facility with regard to which such taxpayer has, prior to July first,

nineteen hundred eighty-three, received from the New York state job

incentive board initial approval of an application for such certificate

by such board as evidenced by the minutes of the meeting of the board at

which such application was approved, or a letter of intent authorized by

section 102.4 of part one hundred two of title five of the codes, rules

and regulations of the state of New York regarding such certificate of

eligibility and to renew, extend, revoke or modify a certificate of

eligibility for tax credits, pursuant to section one hundred twenty of

the commerce law as such section existed on March thirty-first, nineteen

hundred eighty-three.

(9) For purposes of the requirement for eligibility for the credit

allowed under this subdivision that a business facility create or retain

not less than five jobs as provided in subdivision (c) of section one

hundred eighteen of the commerce law as such section existed on March

thirty-first, nineteen hundred eighty-three, a business facility shall

have (i) created not less than five jobs only if the number of jobs for

the taxable year exceeds the number of jobs at the time of the

commencement of the project as stated on its application for initial

approval by five or more; or (ii) retained not less than five jobs only

if initial approval was based on the retention of five or more jobs and

(A) the number of jobs for the taxable year is at least equal to the

number of jobs at the time of the commencement of the project as stated

on its application for initial approval or (B) where initial approval

was based on the retention of fewer jobs than the number of jobs at the

time of the commencement of the project as stated on its application for

initial approval, the number of jobs for the taxable year is at least

equal to the number approved for retention. For purposes of this

paragraph, the phrase "initial approval was based on the retention of

five or more jobs" shall mean that such initial approval was given by

the job incentive board to an applicant that had not stated in its

application for initial approval that it would increase the number of

jobs at its facility by at least five.

(e) Mortgage recording tax credit. (1) A taxpayer shall be allowed a

credit, to be credited against the tax imposed by this article. The

amount of the credit shall be the amount of the special additional

mortgage recording tax paid by the taxpayer pursuant to the provisions

of subdivision one-a of section two hundred fifty-three of this chapter

on mortgages recorded on and after January first, nineteen hundred

seventy-nine. Provided, however, no credit shall be allowed with respect

to a mortgage of real property principally improved or to be improved by

one or more structures containing in the aggregate not more than six

residential dwelling units, each dwelling unit having its own separate

cooking facilities, where the real property is located in one or more of

the counties comprising the metropolitan commuter transportation

district and where the mortgage is recorded on or after May first,

nineteen hundred eighty-seven. Provided, however, no credit shall be

allowed with respect to a mortgage of real property principally improved

or to be improved by one or more structures containing in the aggregate

not more than six residential dwelling units, each dwelling unit having

its own separate cooking facilities, where the real property is located

in the county of Erie and where the mortgage is recorded on or after May

first, nineteen hundred eighty-seven.

(2) In no event shall the credit herein provided for be allowed in an

amount which will reduce the tax payable to less than the minimum tax

fixed by paragraph four of subdivision (a) of section fifteen hundred

two of this article or section fifteen hundred two-a of this article,

whichever is applicable. If, however, the amount of credit allowable

under this subdivision for any taxable year reduces the tax to such

amount, any amount of credit not deductible in such taxable year may be

carried over to the following year or years and may be deducted from the

taxpayer's tax for such year or years.

(f) Credit relating to life and health insurance guaranty corporation

assessments. (1) Allowance of credit. For taxable years beginning on or

after January first, two thousand twenty-four, a credit shall be allowed

against the tax imposed pursuant to this article (other than section

fifteen hundred five-a of this article) as hereinafter provided.

(2) Amount of credit. The amount of the credit for each taxpayer shall

equal the amount shown on the certificate of tax credit, or the amounts

shown on such certificates, issued to such taxpayer pursuant to section

seven thousand seven hundred twelve of the insurance law. With respect

to each such certificate, the amount of the credit must be claimed in

the taxable year that begins in the calendar year that such certificate

is issued.

(3) Carryover. The credit allowed under this subdivision for any

taxable year shall not reduce the tax due for such year to less than the

minimum fixed by paragraph four of subdivision (a) of section fifteen

hundred two of this article or section fifteen hundred two-a of this

article, whichever is applicable. However, if the amount of credit

allowable under this subdivision for any taxable year reduces the tax to

such amount, any amount of credit 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.

(4) Eligibility. To be eligible for the credit, the taxpayer shall

have been issued a certificate, or certificates, of tax credit by the

department of financial services pursuant to section seven thousand

seven hundred twelve of the insurance law, each of which certificates

shall set forth the amount of the credit that may be claimed and the

certificate date. A taxpayer that is a partner in a partnership, member

of a limited liability company or shareholder in a subchapter S

corporation that has received a certificate, or certificates, of tax

credit shall be allowed its pro rata share of the credit earned by the

partnership, limited liability company or subchapter S corporation.

(5) Tax return requirement. The taxpayer is required to include with

its tax return in the form prescribed by the commissioner, proof of

receipt of its certificate, or certificates, of tax credit issued by the

department of financial services.

(6) Information sharing. Notwithstanding any provision of this

chapter, employees of the department of financial services and the

department shall be allowed and are directed to share and exchange:

(A) information regarding the credit allowed or claimed pursuant to

this subdivision and taxpayers that are claiming the credit; and

(B) information contained in or derived from credit claim forms

submitted to the department. All information exchanged between the

department of financial services and the department shall not be subject

to public disclosure or inspection under article six of the public

officers law.

(7) Credit recapture. If a certificate of tax credit issued by the

department of financial services under section seven thousand seven

hundred twelve of the insurance law is revoked by such department, the

amount of credit described in this subdivision and claimed by the

taxpayer prior to such revocation shall be added back to tax in the

taxable year in which any such revocation becomes final. If an amount of

credit on any such certificate of tax credit is modified by the

department of financial services, the difference between the amount of

credit described in this subdivision and claimed by the taxpayer prior

to such modification and the modified amount shall be added back to tax

in the taxable year in which any such modification becomes final.

(8) Net assessments. No amount of any net assessments paid by such

taxpayer included as the basis for the calculation of the amount shown

on any such certificate shall be the basis for any other tax credit

under this chapter.

(g) Empire zone wage tax credit. (1) A taxpayer shall be allowed a

credit, to be computed as hereinafter provided, against the tax imposed

by this article where the taxpayer has been certified pursuant to

article eighteen-B of the general municipal law. The amount of the

credit shall be as prescribed in paragraph four hereof.

(2) For purposes of this subdivision, the following terms shall have

the following meanings: (A) "Empire zone wages" means wages paid by the

taxpayer for full-time employment, other than to general executive

officers, during the taxable year, in an area designated or previously

designated as an empire zone or zone equivalent area pursuant to article

eighteen-B of the general municipal law, where such employment is in a

job created in the area (i) during the period of its designation as an

empire zone, (ii) within four years of the expiration of such

designation, or (iii) during the ten year period immediately following

the date of designation as a zone equivalent area, provided, however,

that if the taxpayer's certification under article eighteen-B of the

general municipal law is revoked with respect to an empire zone or zone

equivalent area, any wages paid by the taxpayer, on or after the

effective date of such decertification, for employment in such zone

shall not constitute empire zone wages.

(B) "Targeted employee" means a New York resident who receives empire

zone wages and who is (i) an eligible individual under the provision of

the targeted jobs tax credit (section fifty-one of the internal revenue

code), (ii) eligible for benefits under the provisions of the workforce

investment act as a dislocated worker or a low-income individual (P.L.

105-220, as amended), (iii) a recipient of public assistance benefits,

(iv) an individual whose income is below the most recently established

poverty rate promulgated by the United States department of commerce, or

a member of a family whose family income is below the most recently

established poverty rate promulgated by the appropriate federal agency

or (v) an honorably discharged member of any branch of the armed forces

of the United States.

An individual who satisfies the criteria set forth in clause (i),

(ii), (iv) or (v) at the time of initial employment in the job with

respect to which the credit is claimed, or who satisfies the criterion

set forth in clause (iii) at such time or at any time within the

previous two years, shall be a targeted employee so long as such

individual continues to receive empire zone wages.

(C) "Average number of individuals, excluding general executive

officers, employed full-time" shall be computed by ascertaining the

number of such individuals employed by the taxpayer on the thirty-first

day of March, the thirtieth day of June, the thirtieth day of September

and the thirty-first day of December during each taxable year or other

applicable period, by adding together the number of such individuals

ascertained on each of such dates and dividing the sum so obtained by

the number of such dates occurring within such taxable year or other

applicable period.

(3) The credit provided for herein shall be allowed only where the

average number of individuals, excluding general executive officers,

employed full-time by the taxpayer in (i) the state and, (ii) the empire

zone or area previously constituting such zone or zone equivalent area,

during the taxable year exceeds the average number of such individuals

employed full-time by the taxpayer in (i) the state and (ii) such zone

or area subsequently or previously constituting such zone or such zone

equivalent area, respectively, during the four years immediately

preceding the first taxable year in which the credit is claimed with

respect to such zone or area. Where the taxpayer provided full-time

employment within (i) the state or (ii) such zone or area during only a

portion of such four-year period, then for purposes of this paragraph

the term "four years" shall be deemed to refer instead to such portion,

if any.

The credit shall be allowed only with respect to the first taxable

year during which payments of empire zone wages are made and the

conditions set forth in this paragraph are satisfied, and with respect

to each of the four taxable years next following (but only, with respect

to each of such years, if such conditions are satisfied), in accordance

with paragraph four of this subdivision. Subsequent certifications of

the taxpayer pursuant to article eighteen-B of the general municipal

law, at the same or a different location in the same empire zone or zone

equivalent area or at a location in a different empire zone or zone

equivalent area, shall not extend the five taxable year time limitation

on the allowance of the credit set forth in the preceding sentence.

Provided, further, however, that no credit shall be allowed with respect

to any taxable year beginning more than four years following the taxable

year in which designation as an empire zone expired or more than ten

years after the designation as a zone equivalent area.

(4) The amount of the credit shall equal the sum of

(A) the product of three thousand dollars and the average number of

individuals (excluding general executive officers) employed full-time by

the taxpayer, computed pursuant to the provisions of subparagraph (C) of

paragraph two of this subdivision, who (i) received empire zone wages

for more than half of the taxable year,

(ii) received, with respect to more than half of the period of

employment by the taxpayer during the taxable year, an hourly wage which

was at least one hundred thirty-five percent of the minimum wage

specified in section six hundred fifty-two of the labor law, and

(iii) are targeted employees; and

(B) the product of fifteen hundred dollars and the average number of

individuals (excluding general executive officers and individuals

described in subparagraph (A) of this paragraph) employed full-time by

the taxpayer, computed pursuant to the provisions of subparagraph (C) of

paragraph two of this subdivision, who received empire zone wages for

more than half of the taxable year.

(C) For purposes of calculating the amount of the credit, individuals

employed within an empire zone or zone equivalent area within the

immediately preceding sixty months by a related person, as such term is

defined in subparagraph (c) of paragraph three of subsection (b) of

section four hundred sixty-five of the internal revenue code, shall not

be included in the average number of individuals described in

subparagraph (A) or subparagraph (B) of this paragraph, unless such

related person was never allowed a credit under this subdivision with

respect to such employees. For the purposes of this subparagraph, a

"related person" shall include an entity which would have qualified as a

"related person" to the taxpayer if it had not been dissolved,

liquidated, merged with another entity or otherwise ceased to exist or

operate.

(D) If a taxpayer is certified in an empire zone designated under

subdivision (a) or (d) of section nine hundred fifty-eight of the

general municipal law, the dollar amounts specified under subparagraph

(A) or (B) of this paragraph shall be increased by five hundred dollars

for each qualifying individual under such subparagraph who received,

during the taxable year, wages in excess of forty thousand dollars.

(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

subdivision 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 enterprise

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 (i) in the case of taxpayers subject

to tax under subdivision (b) of section fifteen hundred ten of this

article, the lesser of (I) the limitation on tax computed pursuant to

subdivision (a) of section fifteen hundred five, or (II) the greater of

the sum of the taxes imposed under sections fifteen hundred one and

fifteen hundred ten or the amount of tax computed pursuant to

subdivision (b) of section fifteen hundred five, or (ii) for all other

insurance corporations, the tax imposed under section fifteen hundred

two-a of this article, computed without regard to any credit provided

for under this article.

(5) The credit or carryovers of such credit allowed under this

subdivision for any taxable year shall not, in the aggregate, reduce the

tax due for such year to less than the minimum tax fixed by paragraph

four of subdivision (a) of section fifteen hundred two of this article

or by section fifteen hundred two-a of this article, whichever is

applicable. However, if the amount of credit or carryovers of such

credit, or both, allowed under this subdivision for any taxable year

reduces the tax to such amount, or if any part of the credit or

carryovers of such credit may not be deducted from the tax otherwise due

by reason of the final sentence in paragraph four hereof, any amount of

credit or carryovers of such credit thus not deductible in such taxable

year may be carried over to the following year or years and may be

deducted from the taxpayer's tax for such year or years.

(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.

(g-1) Hire a vet credit. (1) Allowance of credit. For taxable years

beginning on or after January first, two thousand fifteen and before

January first, two thousand twenty-nine, a taxpayer shall be allowed a

credit, to be computed as provided in this subdivision, against the tax

imposed by this article, for hiring and employing, for not less than

twelve continuous and uninterrupted months (hereinafter referred to as

the twelve-month period) in a full-time or part-time position, a

qualified veteran within the state. The taxpayer may claim the credit in

the year in which the qualified veteran completes the twelve-month

period of employment by the taxpayer. If the taxpayer claims the credit

allowed under this subdivision, the taxpayer may not use the hiring of a

qualified veteran that is the basis for this credit in the basis of any

other credit allowed under this article.

(2) Qualified veteran. A qualified veteran is an individual:

(A) who served on active duty in the United States army, navy, air

force, space force, marine corps, coast guard or the reserves thereof,

or who served in active military service of the United States as a

member of the army national guard, air national guard, New York guard or

New York naval militia, or who served in the active uniformed services

of the United States as a member of the commissioned corps of the

national oceanic and atmospheric administration or the commissioned

corps of the United States public health service; who (i) was released

from active duty by general or honorable discharge, or (ii) has a

qualifying condition, as defined in section one of the veterans'

services law, and has received a discharge other than bad conduct or

dishonorable from such service, or (iii) is a discharged LGBT veteran,

as defined in section one of the veterans' services law, and has

received a discharge other than bad conduct or dishonorable from such

service;

(B) who commences employment by the qualified taxpayer on or after

January first, two thousand fourteen, and before January first, two

thousand twenty-eight; and

(C) who certifies by signed affidavit, under penalty of perjury, that

he or she has not been employed for thirty-five or more hours during any

week in the one hundred eighty day period immediately prior to his or

her employment by the taxpayer.

(3) Employer prohibition. An employer shall not discharge an employee

and hire a qualifying veteran solely for the purpose of qualifying for

this credit.

(4) Amount of credit. The amount of the credit shall be fifteen

percent of the total amount of wages paid to the qualified veteran

during the veteran's first twelve-month period of employment. Provided,

however, that, if the qualified veteran is a disabled veteran, as

defined in paragraph (b) of subdivision one of section eighty-five of

the civil service law, the amount of the credit shall be twenty percent

of the total amount of wages paid to the qualified veteran during the

veteran's first twelve-month period of employment. The credit allowed

pursuant to this subdivision shall not exceed in any taxable year: (i)

fifteen thousand dollars for any qualified veteran, other than a

disabled veteran, employed in a full-time position for one thousand

eight hundred twenty or more hours in one twelve-month period, (ii)

twenty thousand dollars for any qualified veteran who is a disabled

veteran employed in a full-time position for one thousand eight hundred

twenty or more hours in one twelve-month period, (iii) seven thousand

five hundred dollars for any qualified veteran, other than a disabled

veteran, employed in a part-time position for at least one thousand

forty hours but not more than one thousand eight hundred nineteen hours

in one twelve-month period, and (iv) ten thousand dollars for any

qualified veteran who is a disabled veteran employed in a part-time

position for at least one thousand forty hours but not more than one

thousand eight hundred nineteen hours in one twelve-month period.

(5) Carryover. The credit allowed under this subdivision for any

taxable year shall not reduce the tax due for such year to less than the

amount prescribed in paragraph four of subdivision (a) of section

fifteen hundred two of this article or the minimum tax prescribed in

section fifteen hundred two-a of this article, whichever is applicable.

However, if the amount of credit allowable under this subdivision for

any taxable year reduces the tax to such amount, any amount of credit

not deductible in such taxable year may be carried over to the following

three years and may be deducted from the taxpayer's tax for such year or

years.

(h) Empire zone capital credit. (1) A taxpayer shall be allowed a

credit against the tax imposed by this article. The amount of the credit

shall be equal to twenty-five percent of the sum of the following

investments and contributions made during the taxable year and certified

by the commissioner of economic development: (A) for taxable years

beginning before January first, two thousand five, qualified investments

made in, or contributions in the form of donations made to, one or more

empire zone capital corporations established pursuant to section nine

hundred sixty-four of the general municipal law prior to January first,

two thousand five, (B) qualified investments in certified zone

businesses which during the twelve month period immediately preceding

the month in which such investment is made employed full-time within the

state an average number of individuals, excluding general executive

officers, of two hundred fifty or fewer, computed pursuant to the

provisions of subparagraph (C) of paragraph two of subsection (g) of

this section, except for investments made by or on behalf of an owner of

the business, including, but not limited to, a stockholder, partner or

sole proprietor, or any related person, as defined in subparagraph (C)

of paragraph three of subsection (b) of section four hundred sixty-five

of the internal revenue code, and (C) contributions of money to

community development projects as defined in regulations promulgated by

the commissioner of economic development. "Qualified investments" means

the contribution of property to a corporation in exchange for original

issue capital stock or other ownership interest, the contribution of

property to a partnership in exchange for an interest in the

partnership, and similar contributions in the case of a business entity

not in corporate or partnership form in exchange for an ownership

interest in such entity. The total amount of credit allowable to a

taxpayer under this provision for all years, taken in the aggregate,

shall not exceed three hundred thousand dollars, and shall not exceed

one hundred thousand dollars with respect to the investments and

contributions described in each of subparagraphs (A), (B) and (C) of

this paragraph.

(2) The credit and carryover of such credit allowed under this

subdivision for any taxable year shall not, in the aggregate, reduce the

tax due for such year to less than the minimum fixed by paragraph four

of subdivision (a) of section fifteen hundred two of this article or by

section fifteen hundred two-a of this article, whichever is applicable.

However, if the amount of credit or carryovers of such credit, or both,

allowed under this subdivision for any taxable year reduces the tax to

such amount, or if any part of the credit or carryovers of such credit

may not be deducted from the tax otherwise due by reason of the final

sentence of this paragraph, any amount of credit or carryovers of such

credit thus not deductible in such taxable year may be carried over to

the following year or years and may be deducted from the tax for such

year or years. In addition, the amount of such credit, and carryovers of

such credit to the taxable year, deducted from the tax otherwise due may

not, in the aggregate, exceed fifty percent of (i) in the case of

taxpayers subject to tax under subdivision (b) of section fifteen

hundred ten of this article, the lesser of (I) the limitation on tax

computed pursuant to subdivision (a) of section fifteen hundred five, or

(II) the greater of the sum of the taxes imposed under sections fifteen

hundred one and fifteen hundred ten or the amount of tax computed

pursuant to subdivision (b) of section fifteen hundred five, or (ii) for

all other insurance corporations, the tax imposed under section fifteen

hundred two-a of this article, computed without regard to any credit

provided for under this article.

(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 subdivision is disposed of, the

taxpayer's entire net income shall be computed, pursuant to regulations

promulgated by the commissioner, so as to properly reflect the reduced

cost thereof arising from the application of the credit provided for

herein.

(4)(A) Where a taxpayer sells, transfers or otherwise disposes of

corporate stock, a partnership interest or other ownership interest

arising from the making of a qualified investment which was the basis,

in whole or in part, for the allowance of the credit provided for under

this subdivision, or where a contribution or investment which was the

basis for such allowance is in any manner, in whole or in part,

recovered by such taxpayer, and such disposition or recovery occurs

during the taxable year or within thirty-six months from the close of

the taxable year with respect to which such credit is allowed,

subparagraph (B) of this paragraph shall apply.

(B) The taxpayer shall add back with respect to the taxable year in

which the disposition or recovery described in subparagraph (A) of this

paragraph occurred the required portion of the credit originally

allowed.

(C) The required portion of the credit originally allowed shall be the

product of (i) the portion of such credit attributable to the property

disposed of or the payment or contribution recovered and (ii) the

applicable percentage.

(D) The applicable percentage shall be:

(i) one hundred percent, if the disposition or recovery occurs within

the taxable year with respect to which the credit is allowed or within

twelve months of the end of such taxable year,

(ii) sixty-seven percent, if the disposition or recovery occurs more

than twelve but not more than twenty-four months after the end of the

taxable year with respect to which the credit is allowed, or

(iii) thirty-three percent, if the disposition or recovery occurs more

than twenty-four but not more than thirty-six months after the end of

the taxable year with respect to which the credit is allowed.

(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 subdivision 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.

(i) Credit for certain other taxes payable to other jurisdictions. (1)

If, by the laws of any state other than this state, or by the action of

any public official of such other state, an insurer organized or

domiciled in this state, or the duly authorized agents thereof, shall be

required to pay taxes for the privilege of doing business in such other

state, which taxes are imposed or assessed because of amounts imposed

upon and required to be paid by insurers organized or domiciled in such

other state pursuant to section twenty-eight hundred seven-t of the

public health law, then and in every case, to the extent such taxes are

legally due to such other state, such insurer organized or domiciled in

this state may claim a credit, as hereinafter provided, against the tax

payable pursuant to this article of a sum not to exceed ninety per cent

of such amount. Provided, such credit shall in no event be greater than

the tax payable pursuant to this article during the taxable year with

respect to which such taxes have been imposed or assessed by such other

state. For purposes of this section, the term "taxes for the privilege

of doing business" shall include, but shall not be limited to, a tax on

or measured by income.

(2) A credit may be claimed for the amount computed as provided in

paragraph one of this subdivision, on the return required pursuant to

section fifteen hundred fifteen, against the tax imposed pursuant to

this article for the taxable year in which such amount shall be paid. To

the extent such credit shall exceed the amount payable pursuant to

section fifteen hundred sixteen for the taxable year against which the

credit is allowed, the difference between the amount allowed as a credit

and the tax payable pursuant to section fifteen hundred sixteen shall be

credited or refunded by the commissioner, without interest.

(3) The credit allowed pursuant to this subdivision shall be in

addition to the credits allowed pursuant to subdivisions (a), (b) and

(c) of this section.

(4) The superintendent of financial services and the commissioner

shall examine claims for credit or refund made under this subdivision.

If the superintendent of financial services or the commissioner shall

determine that any tax for which a credit shall have been claimed was

not legally due to another state or that an error exists in the amount

of credit shown on such return or in the amount claimed as a refund or

refunded, the commissioner shall take appropriate action under this

chapter for the assessment and collection of any tax resulting from the

disallowance of a claim for credit made under this subdivision or to

disallow any such claim for refund.

(5) Any taxpayer which commences an action or proceeding in any state

or federal court to contest the validity of any assessment made against

the taxpayer by another state pursuant to a statute similar to section

one thousand one hundred twelve of the insurance law or any other

statute or regulation of another state under which retaliatory taxes or

other charges are imposed or assessed against such taxpayer shall give

the commissioner and the superintendent of financial services written

notice of the commencement of such action or proceeding within five days

after such commencement.

(6) The commissioner shall report annually, on or before the first day

of March, on the amount of credits claimed pursuant to this subdivision

on returns filed during the preceding calendar year. Such report shall

be provided to the director of the budget, the commissioner of health

and the superintendent of financial services.

(7) In addition to any other requirements of this article, an insurer

claiming a credit under this subdivision shall attach to the returns

required pursuant to section fifteen hundred fifteen a computation

identifying the credit attributable to taxes paid to other states

because of the amounts imposed and required to be paid pursuant to

section twenty-eight hundred seven-t of the public health law, which

credit shall be further broken down to reflect amounts and taxable years

to which the retaliatory taxes giving rise to the credit relate.

(j) Credit for employment of persons with disabilities. (1) Allowance

of credit. A taxpayer shall be allowed a credit, to be computed as

hereinafter provided, against the tax imposed by this article, for

employing within the state a qualified employee.

(2) Qualified employee. A qualified employee is an individual:

(A) who is certified by the education department, or in the case of an

individual who is blind or visually handicapped, by the state agency

responsible for provision of vocational rehabilitation services to the

blind and visually handicapped: (i) as a person with a disability which

constitutes or results in a substantial handicap to employment and (ii)

as having completed or as receiving services under an individualized

written rehabilitation plan approved by the education department or

other state agency responsible for providing vocational rehabilitation

services to such individual; and

(B) who has worked on a full-time basis for the employer who is

claiming the credit for at least one hundred eighty days or four hundred

hours.

(3) Amount of credit. Except as provided in paragraph four of this

subdivision, the amount of credit shall be thirty-five percent of the

first six thousand dollars in qualified first-year wages earned by each

qualified employee. "Qualified first-year wages" means wages paid or

incurred by the taxpayer during the taxable year to qualified employees

which are attributable, with respect to any such employee, to services

rendered during the one-year period beginning with the day the employee

begins work for the taxpayer.

(4) Credit where federal work opportunity tax credit applies. With

respect to any qualified employee whose qualified first-year wages under

paragraph three of this subdivision also constitute qualified first-year

wages for purposes of the work opportunity tax credit for vocational

rehabilitation referrals under section fifty-one of the internal revenue

code, the amount of credit under this subdivision shall be thirty-five

percent of the first six thousand dollars in qualified second-year wages

earned by each such employee. "Qualified second-year wages" means wages

paid or incurred by the taxpayer during the taxable year to qualified

employees which are attributable, with respect to any such employee, to

services rendered during the one-year period beginning one year after

the employee begins work for the taxpayer.

(5) Carryover. The credit and carryovers of such credit allowed under

this subdivision for any taxable year shall not, in the aggregate,

reduce the tax due for such year to less than the minimum tax fixed by

paragraph four of subdivision (a) of section fifteen hundred two of this

article or by section fifteen hundred two-a of this article, whichever

is applicable. However, if the amount of credit or carryovers of such

credit, or both, allowed under this subdivision for any taxable year

reduces the tax to such amount, then any amount of credit or carryovers

of such credit thus not deductible in such taxable year may be carried

over to the following year or years and may be deducted from the

taxpayer's tax for such year or years.

(6) Coordination with federal work opportunity tax credit. The

provisions of sections fifty-one and fifty-two of the internal revenue

code, as such sections applied on October first, nineteen hundred

ninety-six, that apply to the work opportunity tax credit for vocational

rehabilitation referrals shall apply to the credit under this

subdivision to the extent that such sections are consistent with the

specific provisions of this subdivision, provided that in the event of a

conflict the provisions of this subdivision shall control.

(k) Credit for certain investments in certified capital companies. (1)

A taxpayer shall be allowed a credit, to be computed as hereinafter

provided, against the tax imposed by this article. The amount of the

credit shall be equal to one hundred percent of an investment of

certified capital in a certified capital company program made by the

taxpayer pursuant to section eleven of this chapter.

(2) Ten percent of such credit shall be allowed in the taxable year to

which such investment is allocated pursuant to subdivision (h) of

section eleven of this chapter and in each of the nine following taxable

years. In addition, in any taxable year subsequent to the taxable year

for which such investment is so allocated, any amount carried forward

under paragraphs three and four of this subdivision may be carried

forward indefinitely until such credits are utilized.

(3) No credit allowable pursuant to this subdivision shall reduce the

tax payable under this article to less than the minimum tax fixed by

paragraph four of subdivision (a) of section fifteen hundred two of this

article or by section fifteen hundred two-a of this article, whichever

is applicable. If, however, the amount of credit allowable under this

subdivision for any taxable year reduces the tax to such amount, any

amount of credit not taken in such taxable year may be carried over to

the following year or years and may be deducted from the taxpayer's tax

for such year or years.

(4) If for any taxable year the credit allowable under paragraph two

of this subdivision exceeds such minimum tax for such taxable year, then

the amount by which such credit exceeds such minimum tax liability shall

be carried forward as a credit under paragraph two of this subdivision

to the following year or years and may be deducted from the taxpayer's

tax for such year or years.

(5) Decertification of a certified capital company from a certified

capital company program shall cause the disallowance and the recapture

of the credit allowed under paragraph one of this subdivision, as

follows:

(A) Decertification of a certified capital company from a certified

capital company program within two years of its starting date prior to

meeting the requirements of subparagraph (A) of paragraph one of

subdivision (c) of section eleven of this chapter shall cause

disallowance of one hundred percent of the credit allowed under

paragraph one of this subdivision with respect to such certified capital

company program and the recapture of any portion of such credit that was

previously taken.

(B) Decertification of a certified capital company from a certified

capital company program which, having met all requirements of

subparagraph (A) of paragraph one of subdivision (c) of section eleven

of this chapter, subsequently fails to meet the requirements for

continued certification under the provisions of subparagraph (B) of such

paragraph one, shall cause the disallowance of eighty-five percent of

the credit allowed under paragraph one of this subdivision with respect

to such certified capital company program and recapture of any portion

of such credit in excess of fifteen percent that was previously taken.

(C) Decertification of a certified capital company from a certified

capital company program which, having met all requirements of

subparagraphs (A) and (B) of paragraph one of subdivision (c) of section

eleven of this chapter, subsequently fails to meet the requirements for

continued certification under the provisions of subparagraph (C) of such

paragraph one, shall cause the disallowance of seventy percent of the

credit allowed under paragraph one of this subdivision with respect to

such certified capital company program and the recapture of any portion

of such credit in excess of thirty percent that was previously taken.

(D) Decertification of a certified capital company from a certified

capital company program pursuant to paragraph two of subdivision (e) of

section eleven of this chapter, other than on the grounds of the failure

of such certified capital company to meet the requirements of

subparagraphs (A), (B) or (C) of paragraph one of subdivision (c) of

such section, shall not cause the disallowance of any of the credits

allowed under paragraph one of this subdivision with respect to such

certified capital company program, nor the recapture of any portion of

such credits that was previously taken.

(E) If, after twelve years after a certified capital company receives

an investment of certified capital under certified capital company

program four and any subsequent program, such certified capital company

has failed to invest one hundred percent of its certified capital

allocable to such certified capital company program in qualified

investments, such certified capital company shall be required to pay to

the department, for deposit in the general fund, an amount equal to two

times the amount of net profits on qualified investments as required

under paragraph five of subdivision (d) of section eleven of this

chapter at such subsequent time when it has fully invested one hundred

percent and has begun to make a distribution of its net profits;

provided that such requirement shall not apply to a certified capital

company in which at least fifty percent of the voting stock, capital,

membership interests, or other beneficial ownership interests, as the

case may be, are owned by an entity that is managed, directly or

indirectly, by a non-profit corporation. This amount of payment to the

department shall not be reduced by the amount set forth in paragraph six

of subdivision (d) of section eleven of this chapter, and a certified

capital company making a payment under this paragraph shall not be

eligible to create a fund pursuant to such paragraph six of subdivision

(d) of section eleven of this chapter for that particular certified

capital company program.

(6) Revocation of certification from a certified capital company

program pursuant to subdivision (f) of section eleven of this chapter,

before the later of (i) the third anniversary of the certification date

of the certified capital company or (ii) the date on which the certified

capital company satisfies the requirements of subparagraph (C) of

paragraph one of subdivision (c) of section eleven of this chapter,

shall cause disallowance of one hundred percent of the credit allowed

under paragraph one of this subdivision with respect to such certified

capital company program and the recapture of any portion of such credit

that was previously taken.

(7) No credit shall be allowed in any tax year in which the taxpayer

shall, individually or with or through one or more affiliates, be a

managing general partner of or underwrite or control the direction of

investments of a certified capital company for which the credit was

allowed under paragraph one of this subdivision. This provision shall

not preclude a certified investor, insurance company or any other party

from exercising its legal rights and remedies (which may include interim

management of a certified capital company) in the event that a certified

capital company is in default of its statutory obligations or its

contractual obligations to such certified investor, insurance company or

other party or from monitoring the certified capital company to ensure

its compliance with section eleven of this chapter or disallowing any

investments that have not been approved by the superintendent pursuant

to subparagraph (D) of paragraph one of subdivision (c) of such section

eleven. For purposes of this paragraph, affiliate shall mean a business

entity in which the taxpayer holds at least a ten percent beneficial

interest.

(8) A certified investor allowed a credit against its state tax

liability earned through an investment in a certified capital company

shall not be required to pay any additional retaliatory tax levied

pursuant to section eleven hundred twelve of the insurance law as a

result of claiming such credit.

(9) A taxpayer is permitted to transfer or sell tax credits allowed

under this subdivision, in whole or in part, to any affiliate within an

affiliated group of taxpayers, who are subject to tax in this state

under this article. Such transfer or sale shall not affect the time

schedule for claiming the credit transferred or sold. Any credit

recaptured shall be the liability of the taxpayer who actually claimed

the credit. The claim of a transferee shall be permitted in the same

manner and subject to the same provisions and limitations of section

eleven of this chapter as applied to the taxpayer to whom the credit was

originally allowed. For purposes of this paragraph, the term "affiliated

group" shall have the same meaning as described in section fifteen

hundred four of the internal revenue code, without exclusion for a

company listed under paragraph two of subsection (b) of section fifteen

hundred four of the internal revenue code, except that the references to

"at least eighty percent" in such section fifteen hundred four shall be

read as "more than fifty percent". Whenever a taxpayer transfers or

sells a tax credit pursuant to this paragraph, such taxpayer shall

notify the department and the department of financial services of such

transfer or sale within forty-five days.

(l) Credit for purchase of an automated external defibrillator. A

taxpayer shall be allowed a credit as hereinafter provided, against the

tax imposed by this article for the purchase, other than for resale, of

an automated external defibrillator, as such term is defined in section

three thousand-b of the public health law. The amount of the credit

shall be the cost to the taxpayer of automated external defibrillators

purchased during the taxable year, such credit not to exceed five

hundred dollars with respect to each unit purchased. The credit allowed

under this subdivision for any taxable year shall not reduce the tax due

for such year to less than the minimum tax fixed by paragraph four of

subdivision (a) of section fifteen hundred two of this article or by

section fifteen hundred two-a of this article, whichever is applicable.

(m) (1) A taxpayer shall be allowed a credit against the tax imposed

by this article equal to twenty percent of the premium paid during the

taxable year for long-term care insurance. In order to qualify for such

credit, the taxpayer's premium payment must be for the purchase of or

for continuing coverage under a long-term care insurance policy that

qualifies for such credit pursuant to section one thousand one hundred

seventeen of the insurance law.

(2) In no event shall the credit herein provided for be allowed in an

amount which will reduce the tax payable to less than the minimum tax

fixed by paragraph four of subdivision (a) of section fifteen hundred

two of this article or by section fifteen hundred two-a of this article,

whichever is applicable. If, however, the amount of credit allowable

under this subdivision for any taxable year reduces the tax to such

amount, any amount of credit not deductible in such taxable year may be

carried over to the following year or years and may be deducted from the

taxpayer's tax for such year or years.

(n) Low-income housing credit. (1) Allowance of credit. A taxpayer

shall be allowed a credit against the tax imposed by this article with

respect to the ownership of eligible low-income buildings, computed as

provided in section eighteen of this chapter.

(2) Application of credit. The credit and carryovers of such credit

allowed under this subdivision for any taxable year shall not, in the

aggregate, reduce the tax due for such year to less than the minimum tax

fixed by paragraph four of subdivision (a) of section fifteen hundred

two of this article or by section fifteen hundred two-a of this article,

whichever is applicable. However, if the amount of credit or carryovers

of such credit, or both, allowed under this subdivision for any taxable

year reduces the tax to such amount, then any amount of credit or

carryovers of such credit thus not deductible in such taxable year may

be carried over to the following year or years and may be deducted from

the taxpayer's tax for such year or years.

(3) Credit recapture. For provisions requiring recapture of credit,

see subdivision (b) of section eighteen of this chapter.

(o) Green building credit. (1) Allowance of credit. A taxpayer shall

be allowed a credit, to be computed as provided in section nineteen of

this chapter, against the taxes imposed by this article.

(2) Carryover. The credit and carryovers of such credit allowed under

this subdivision for any taxable year shall not, in the aggregate,

reduce the tax due for such year to less than the minimum tax fixed by

paragraph four of subdivision (a) of section fifteen hundred two of this

article or by section fifteen hundred two-a of this article, whichever

is applicable. However, if the amount of credit or carryovers of such

credit, or both, allowed under this subdivision for any taxable year

reduces the tax to such amount, then any amount of credit or carryovers

of such credit thus not deductible in such taxable year may be carried

over to the following year or years and may be deducted from the

taxpayer's tax for such year or years.

(p) Credit for transportation improvement contributions. (1) Allowance

of credit. A taxpayer shall be allowed a credit, to be computed as

provided in section twenty of this chapter, against the taxes imposed by

this article.

(2) Application of credit. The credit allowed under this subdivision

for any taxable year shall not reduce the tax due for such year to less

than the minimum tax fixed by paragraph four of subdivision (a) of

section fifteen hundred two of this article or by section fifteen

hundred two-a of this article, whichever is applicable. However, if the

amount of credit allowed under this subdivision for any taxable year

reduces the tax to such amount, then any amount of credit thus not

deductible in such taxable year shall be treated as an overpayment of

tax to be credited or refunded in accordance with the provisions of

section ten hundred eighty-six of this chapter. Provided, however, the

provisions of subsection (c) of section ten hundred eighty-eight of this

chapter notwithstanding, no interest shall be paid thereon.

(3) Credit recapture. For provisions requiring recapture of credit,

see subdivision (c) of section twenty of this chapter.

(q) Investment tax credit (ITC). (1) A taxpayer shall be allowed a

credit, to be computed as hereinafter provided, against the tax imposed

by this article. Provided, however, a taxpayer shall not be allowed such

credit provided by this subdivision unless (A) 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 (B) 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 (C) 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 purposes of subparagraph

(C) 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 subdivision, less the amount of the nonqualified

nonrecourse financing with respect to such property to the extent such

financing would be excludible from the credit base pursuant to section

46(c)(8) of the Internal Revenue Code (treating such property as section

thirty-eight property irrespective of whether or not it in fact

constitutes section thirty-eight property). If, at the close of a

taxable year following the taxable year in which such property was

placed in service, there is a net decrease in the amount of nonqualified

nonrecourse financing with respect to such property, such net decrease

shall be treated as if it were the cost or other basis of property

described in paragraph two of this subdivision acquired, constructed,

reconstructed or erected during the year of the decrease in the amount

of nonqualified nonrecourse financing. In the case of a combined return,

the term investment credit base shall mean the sum of the investment

credit base of each corporation included on such return. The percentage

to be used to compute the credit allowed pursuant to this subdivision

shall be five percent with respect to the first three hundred fifty

million dollars of the investment credit base, and four percent with

respect to the investment credit base in excess of three hundred fifty

million dollars.

(2) A credit shall be allowed under this subdivision with respect to

tangible personal property and other tangible property, including

buildings and structural components of buildings, which are: depreciable

pursuant to section one hundred sixty-seven of the Internal Revenue

Code, have a useful life of four years or more, are acquired by purchase

as defined in section one hundred seventy-nine (d) of the Internal

Revenue Code, have a situs in this state and are (A) principally used in

the ordinary course of the taxpayer's trade or business as a broker or

dealer in connection with the purchase or sale (which shall include but

not be limited to the issuance, entering into, assumption, offset,

assignment, termination, or transfer) of stocks, bonds or other

securities as defined in section four hundred seventy-five (c)(2) of the

Internal Revenue Code, or of commodities as defined in section four

hundred seventy-five (e) of the Internal Revenue Code, or (B)

principally used in the ordinary course of the taxpayer's trade or

business of providing investment advisory services for a regulated

investment company as defined in section eight hundred fifty-one of the

Internal Revenue Code, or lending, loan arrangement or loan origination

services to customers in connection with the purchase or sale (which

shall include but not be limited to the issuance, entering into,

assumption, offset, assignment, termination, or transfer) of securities

as defined in section four hundred seventy-five (c)(2) of the Internal

Revenue Code. For purposes of subparagraphs (A) and (B) of this

paragraph, property purchased by a taxpayer affiliated with a regulated

broker, dealer or registered investment adviser is allowed a credit

under this subdivision if the property is used by its affiliated

regulated broker, dealer or registered investment adviser in accordance

with this subdivision. 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 subdivision

with respect to tangible personal property and other tangible property,

including buildings and structural components of buildings, which it

leases to any other person or corporation except where a taxpayer leases

property to an affiliated broker, dealer, or registered investment

adviser that uses such property in accordance with subparagraph (A) or

(B) of paragraph two of this subdivision. For purposes of the preceding

sentence, any contract or agreement to lease or rent or for a license to

use such property shall be considered a lease.

(4) Except as otherwise provided in this paragraph, the credit allowed

under this subdivision for any taxable year shall not reduce the tax due

for such year to less than the amount fixed as a minimum tax by

paragraph four of subdivision (a) of section fifteen hundred two of this

article or by section fifteen hundred two-a of this article, whichever

is applicable. However, if the amount of credit allowable under this

subdivision for any taxable year reduces the tax to such amount, any

amount of credit allowed for a taxable year may be carried over to the

fifteen taxable years next following such taxable year and may be

deducted from the taxpayer's tax for such year or years. In lieu of such

carryover, any such taxpayer which qualifies as a new business under

paragraph seven of this subdivision may elect to treat the amount of

such carryover as an overpayment of tax to be credited or refunded in

accordance with the provisions of section one thousand eighty-six of

this chapter, provided, however, the provisions of subsection (c) of

section one thousand eighty-eight of this chapter notwithstanding no

interest shall be paid thereon.

(5) At the option of the taxpayer an eligible business facility for

which a credit is allowed under subdivision (d) of this section may be

treated as property (A) principally used in the ordinary course of the

taxpayer's trade or business as a broker or dealer in connection with

the purchase or sale (which shall include but not be limited to the

issuance, entering into, assumption, offset, assignment, termination, or

transfer) of stocks, bonds or other securities as defined in section

four hundred seventy-five (c)(2) of the Internal Revenue Code, or of

commodities as defined in section four hundred seventy-five (e) of the

Internal Revenue Code, or (B) principally used in the ordinary course of

the taxpayer's trade or business of providing investment advisory

services for a regulated investment company as defined in section eight

hundred fifty-one of the Internal Revenue Code, or lending, loan

arrangement or loan origination services to customers in connection with

the purchase or sale (which shall include but not be limited to the

issuance, entering into, assumption, offset, assignment, termination, or

transfer) of securities as defined in section four hundred seventy-five

(c)(2) of the Internal Revenue Code provided the property otherwise

qualifies under paragraph two of this subdivision, in which event a

credit shall not be allowed under subdivision (d) of this section.

(6) (A) With respect to property which is depreciable pursuant to

section one hundred sixty-seven of the Internal Revenue Code but is not

subject to the provisions of section one hundred sixty-eight of such

code and which is disposed of or ceases to be in qualified use prior to

the end of the taxable year in which the credit is to be taken, the

amount of the credit shall be that portion of the credit provided for in

this subdivision which represents the ratio which the months of

qualified use bear to the months of useful life. If property on which

credit has been taken is disposed of or ceases to be in qualified use

prior to the end of its useful life, the difference between the credit

taken and the credit allowed for actual use must be added back in the

year of disposition. Provided, however, if such property is disposed of

or ceases to be in qualified use after it has been in qualified use for

more than twelve consecutive years, it shall not be necessary to add

back the credit as provided in this subparagraph. The amount of credit

allowed for actual use shall be determined by multiplying the original

credit by the ratio which the months of qualified use bear to the months

of useful life. For purposes of this subparagraph, useful life of

property shall be the same as the taxpayer uses for depreciation

purposes when computing his federal income tax liability.

(B) Except with respect to that property to which subparagraph (D) of

this paragraph applies, with respect to three-year property, as defined

in subsection (e) of section one hundred sixty-eight of the Internal

Revenue Code, which is disposed of or ceases to be in qualified use

prior to the end of the taxable year in which the credit is to be taken,

the amount of the credit shall be that portion of the credit provided

for in this subdivision which represents the ratio which the months of

qualified use bear to thirty-six. If property on which credit has been

taken is disposed of or ceases to be in qualified use prior to the end

of thirty-six months, the difference between the credit taken and the

credit allowed for actual use must be added back in the year of

disposition. The amount of credit allowed for actual use shall be

determined by multiplying the original credit by the ratio which the

months of qualified use bear to thirty-six.

(C) Except with respect to that property to which subparagraph (D) of

this paragraph applies, with respect to property subject to the

provisions of section one hundred sixty-eight of the Internal Revenue

Code, other than three-year property as defined in subsection (e) of

such section one hundred sixty-eight which is disposed of or ceases to

be in qualified use prior to the end of the taxable year in which the

credit is to be taken, the amount of the credit shall be that portion of

the credit provided for in this subdivision which represents the ratio

which the months of qualified use bear to sixty. If property on which

credit has been taken is disposed of or ceases to be in qualified use

prior to the end of sixty months, the difference between the credit

taken and the credit allowed for actual use must be added back in the

year of disposition. The amount of credit allowed for actual use shall

be determined by multiplying the original credit by the ratio which the

months of qualified use bear to sixty.

(D) With respect to any property to which section one hundred

sixty-eight of the Internal Revenue Code applies, which is a building or

a structural component of a building and which is disposed of or ceases

to be in a qualified use prior to the end of the taxable year in which

the credit is to be taken, the amount of the credit shall be that

portion of the credit provided for in this subdivision which represents

the ratio which the months of qualified use bear to the total number of

months over which the taxpayer chooses to deduct the property under the

Internal Revenue Code. If property on which credit has been taken is

disposed of or ceases to be in qualified use prior to the end of the

period over which the taxpayer chooses to deduct the property under the

Internal Revenue Code, the difference between the credit taken and the

credit allowed for actual use must be added back in the year of

disposition. Provided, however, if such property is disposed of or

ceases to be in qualified use after it has been in qualified use for

more than twelve consecutive years, it shall not be necessary to add

back the credit as provided in this subparagraph. The amount of credit

allowed for actual use shall be determined by multiplying the original

credit by the ratio which the months of qualified use bear to the total

number of months over which the taxpayer chooses to deduct the property

under the Internal Revenue Code.

(E) The amount required to be added back pursuant to this paragraph

shall be augmented by an amount equal to the product of such amount and

the underpayment rate of interest (without regard to compounding), set

by the commissioner pursuant to subsection (e) of section one thousand

ninety-six of this chapter, in effect on the last day of the taxable

year.

(F) If, as of the close of the taxable year, there is a net increase

with respect to the taxpayer in the amount of nonqualified nonrecourse

financing (within the meaning of section 46(c)(8) of the Internal

Revenue Code) with respect to any property with respect to which the

credit under this subdivision was limited based on attributable

nonqualified nonrecourse financing, then an amount equal to the decrease

in such credit which would have resulted from reducing, by the amount of

such net increase, the cost or other basis taken into account with

respect to such property must be added back in such taxable year. The

amount of nonqualified nonrecourse financing shall not be treated as

increased by reason of a transfer of (or agreement to transfer) any

evidence of an indebtedness if such transfer occurs (or such agreement

is entered into) more than one year after the date such indebtedness was

incurred.

(7) For purposes of paragraph four of this subdivision, a new business

shall include any corporation, except a corporation which:

(A) over fifty percent of the number of shares of stock entitling the

holders thereof to vote for the election of directors or trustees is

owned or controlled, either directly or indirectly, by a taxpayer

subject to tax under this article; section one hundred eighty-three, one

hundred eighty-four, former section one hundred eighty-five or former

section one hundred eighty-six of article nine; article nine-A or

article thirty-two of this chapter; or

(B) is substantially similar in operation and in ownership to a

business entity (or entities) taxable, or previously taxable, under this

article; section one hundred eighty-three, one hundred eighty-four, one

hundred eight-five or one hundred eighty-six of article nine; article

nine-A or article thirty-two of this chapter; article twenty-three of

this chapter or which would have been subject to tax under such article

twenty-three (as such article was in effect of January first, nineteen

hundred eighty) or the income (or losses) of which is (or was)

includable under article twenty-two of this chapter whereby the intent

and purpose of this paragraph and paragraph four of this subdivision

with respect to refunding of credit to new business would be evaded; or

(C) has been subject to tax under this article for more than five

taxable years (excluding short taxable years).

(8)(A)(i) If a taxpayer is required by paragraph six of this

subdivision to add back a portion of the credit taken because property

was destroyed or ceased to be in qualified use as a direct result of the

September eleventh, two thousand one terrorist attacks, such taxpayer

may elect to defer the amount to be recaptured for all such property to

the taxable year next succeeding the taxable year in which the

destruction or cessation of qualified use occurred. The taxable year in

which the destruction or cessation of qualified use occurred shall be

hereinafter referred to as the "recapture event taxable year". If the

taxpayer's total employment number in the state on the last day of

taxable year next succeeding the recapture event taxable year is a

significant percentage of the taxpayer's average total employment number

in the state for the taxpayer's recapture event taxable year and the two

taxable years immediately preceding the recapture event taxable year,

then the taxpayer shall not be required to recapture any credit with

respect to such property. If the taxpayer's total employment number in

the state on the last day of the taxable year next succeeding the

recapture event taxable year is not a significant percentage of the

taxpayer's average total employment number in the state for the

taxpayer's recapture event taxable year and the two taxable years

immediately preceding the recapture event taxable year, the taxpayer

shall be required to recapture the portion of the credit taken under

this subdivision, as required by paragraph six of this subdivision, for

all of its property destroyed or which ceased to be in qualified use as

a direct result of the September eleventh, two thousand one terrorist

attacks. The amount required to be recaptured shall be augmented as

required pursuant to subparagraph (E) of paragraph six of this

subdivision by using an interest rate equal to two times the rate of

interest specified in such subparagraph (E) applicable for the taxable

year in which the recapture occurs.

(ii) The taxpayer's total employment number shall include all

employees of the taxpayer employed full-time by the taxpayer in the

state. The average total employment number for the taxpayer's recapture

event taxable year and the two taxable years immediately preceding the

recapture event taxable year shall be computed by determining the

taxpayer's total employment number on the thirty-first day of March, the

thirtieth day of June, the thirtieth day of September and the

thirty-first day of December during the applicable taxable years, adding

together the number of such individuals determined to be so employed on

each of such dates and dividing the sum so obtained by the number of

such dates occurring within such applicable taxable years. However, in

the case of the taxable year which included September eleventh, two

thousand one, the average total employment number for such taxable year

shall be determined by using the total employment number on September

first, two thousand one in lieu of September thirtieth, two thousand one

and, if such taxable year included December thirty-first, two thousand

one, by excluding the total employment number on December thirty-first,

two thousand one.

(B) In lieu of subparagraph (A) of this paragraph, a taxpayer may

elect to recapture the portion of the credit taken under this

subdivision, as required by paragraph six of this subdivision, for all

of its property destroyed or which ceased to be in qualified use as a

direct result of the September eleventh, two thousand one terrorist

attacks, in the taxable year in which the destruction or cessation of

qualified use occurred. If the taxpayer makes such election and acquires

property (hereinafter referred to as "replacement property") to replace

any property destroyed as a direct result of the September eleventh, two

thousand one terrorist attacks (regardless of when such property was

placed in service and whether a credit was claimed on that property

pursuant to this subdivision), and such replacement property is similar

or related in service or use to such destroyed property, the investment

credit base of the replacement property shall be determined without

regard to any basis reduction required pursuant to section 1033 of the

internal revenue code.

(C) The election made by the taxpayer under subparagraph (A) or (B) of

this paragraph shall be made in the manner and form prescribed by the

commissioner.

(D) A taxpayer, over fifty percent of whose employees died as a direct

result of the September eleventh, two thousand one terrorist attacks,

may make the election provided for in subparagraph (A) of this

paragraph, and shall not be required to recapture any credit with

respect to property which was destroyed or which ceased to be in

qualified use as a direct result of such attacks, whether or not it

meets the employment test specified in clause (i) of subparagraph (A) of

this paragraph.

(r) QEZE credit for real property taxes. (1) Allowance of credit. A

taxpayer which is a qualified empire zone enterprise shall be allowed a

credit for eligible real property taxes, to be computed as provided in

section fifteen of this chapter, against the tax imposed by this

article.

(2) Application of credit. The credit allowed under this subdivision

for any taxable year shall not reduce the tax due for such year to less

than the minimum tax fixed by paragraph four of subdivision (a) of

section fifteen hundred two of this article or by section fifteen

hundred two-a of this article, whichever is applicable. However, if the

amount of credit allowed under this subdivision for any taxable year

reduces the tax to such amount, then any amount of credit thus not

deductible in such taxable year shall be treated as an overpayment of

tax to be credited or refunded in accordance with the provisions of

section ten hundred eighty-six of this chapter. Provided, however, the

provisions of subsection (c) of section ten hundred eighty-eight of this

chapter notwithstanding, no interest shall be paid thereon.

(s) QEZE tax reduction credit. (1) Allowance of credit. A taxpayer

which is a qualified empire zone enterprise shall be allowed a QEZE tax

reduction credit, to be computed as provided in section sixteen of this

chapter, against the tax imposed by this article.

(2) Application of credit. The credit allowed under this subdivision

for any taxable year shall not reduce the tax due for such year to less

than the minimum tax fixed by paragraph four of subdivision (a) of

section fifteen hundred two of this article or by section fifteen

hundred two-a of this article, whichever is applicable.

(t) Order of credits. Notwithstanding the succeeding sentences of this

subdivision, the credits provided for in subdivisions (g) and (h) of

this section shall be deducted before any other credits allowable under

this article, and the credit provided for in such subdivision (g) shall

be deducted after the credit provided for in such subdivision (h). After

application of the first sentence of this subdivision, the credits

allowable under this article which cannot be carried over and which are

not refundable shall be deducted first. Credits allowable under this

article which can be carried over, and carryovers of such credits, shall

be deducted next, and among such credits, those whose carryover is of

limited duration shall be deducted before those whose carryover is of

unlimited duration. Credits allowable under this article which are

refundable shall be deducted last. Credits under subdivisions (g) and

(h) of this section may not be deducted from the limitation on tax

computed pursuant to subdivision (a) of section fifteen hundred five of

this article.

(u) Brownfield redevelopment tax credit. (1) Allowance of credit. A

taxpayer shall be allowed a credit, to be computed as provided in

section twenty-one of this chapter, against the taxes imposed by this

article.

(2) Application of credit. The credit allowed under this subdivision

for any taxable year shall not reduce the tax due for such year to less

than the minimum fixed by paragraph four of subdivision (a) of section

fifteen hundred two of this article. However, if the amount of credits

allowed under this subdivision for any taxable year reduces the tax to

such amount, any amount of credit thus not deductible in such taxable

year shall be treated as an overpayment of tax to be credited or

refunded in accordance with the provisions of section ten hundred

eighty-six of this chapter. Provided, however, the provisions of

subsection (c) of section ten hundred eighty-eight of this chapter

notwithstanding, no interest shall be paid thereon.

(v) Remediated brownfield credit for real property taxes for qualified

sites. (1) Allowance of credit. A taxpayer which is a developer of a

qualified site shall be allowed a credit for eligible real property

taxes, to be computed as provided in subdivision (b) of section

twenty-two of this chapter, against the tax imposed by this article. For

purposes of this subdivision, the terms "qualified site" and "developer"

shall have the same meaning as set forth in paragraphs two and three,

respectively, of subdivision (a) of section twenty-two of this chapter.

(2) Application of credit. The credit allowed under this subdivision

for any taxable year shall not reduce the tax due for such year to less

than the minimum tax fixed by paragraph four of subdivision (a) of

section fifteen hundred two of this article. However, if the amount of

credit allowed under this subdivision for any taxable year reduces the

tax to such amount, any amount of credit thus not deductible in such

taxable year shall be treated as an overpayment of tax to be credited or

refunded in accordance with the provisions of section ten hundred

eighty-six of this chapter. Provided, however, the provisions of

subsection (c) of section ten hundred eighty-eight of this chapter

notwithstanding, no interest shall be paid thereon.

(w) Environmental remediation insurance credit. (1) Allowance of

credit. A taxpayer shall be allowed a credit, to be computed as

provided in section twenty-three of this chapter, against the taxes

imposed by this article.

(2) Application of credit. The credit allowed under this subdivision

for any taxable year shall not reduce the tax due for such year to less

than the minimum fixed by paragraph four of subdivision (a) of section

fifteen hundred two or section fifteen hundred two-a of this article.

However, if the amount of credits allowed under this subdivision for any

taxable year reduces the tax to such amount, any amount of credit thus

not deductible in such taxable year shall be treated as an overpayment

of tax to be credited or refunded in accordance with the provisions of

section one thousand eighty-six of this chapter. Provided, however, the

provisions of subsection (c) of section one thousand eighty-eight of

this chapter notwithstanding, no interest shall be paid thereon.

* (x) Security training tax credit. (1) Allowance of credit. A

taxpayer shall be allowed a credit, to be computed as provided in

section twenty-six of this chapter, against the tax imposed by this

article.

(2) Application of credit. The credit allowed under this subdivision

for any taxable year shall not reduce the tax due for such year to less

than the minimum fixed by paragraph four of subdivision (a) of section

fifteen hundred two or section fifteen hundred two-a of this article.

However, if the amount of credits allowed under this subdivision for any

taxable year reduces the tax to such amount, any amount of credit thus

not deductible in such taxable year shall be treated as an overpayment

of tax to be credited or refunded in accordance with the provisions of

section one thousand eighty-six of this chapter. Provided, however, the

provisions of subsection (c) of section one thousand eighty-eight of

this chapter notwithstanding, no interest shall be paid thereon.

* NB There are 2 sb (x)'s

* (x) Credit for fuel cell electric generating equipment expenditures.

(1) Allowance of credit. 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 subdivision shall be

allowed with respect to the taxable year in which the fuel cell electric

generating equipment is placed in service.

(2) Qualified fuel cell electric generating equipment expenditures.

(A) Qualified fuel cell electric generating equipment expenditures are

the costs, incurred on or after July first, two thousand five,

associated with the purchase of on-site electricity generation units

utilizing proton exchange membrane fuel cells, providing a rated

baseload capacity of no less than one kilowatt and no more than one

hundred kilowatts of electricity, which are located in this state at the

time the qualified fuel cell electric generating equipment is placed in

service.

(B) Qualified fuel cell electric generating equipment expenditures

shall also include costs, incurred on or after July first, two thousand

five, for materials, labor for on-site preparation, assembly and

original installation, engineering services, designs and plans directly

related to construction or installation and utility compliance costs.

(C) Such qualified expenditures shall not include interest or other

finance charges.

(D) The amount of any federal, state or local grant received by the

taxpayer, which was used for the purchase and/or installation of such

equipment and which was not included in the federal gross income of the

taxpayer, shall not be included in the amount of such qualified

expenditures.

(3) Application of credit. The credit allowed under this subdivision

for any taxable year shall not reduce the tax due for such year to less

than the minimum tax fixed by paragraph four of subdivision (a) of

section fifteen hundred two of this article or by section fifteen

hundred two-a of this article, whichever is applicable. However, if the

amount of credit allowed under this subdivision for any taxable year

reduces the tax to such amount, any amount of credit thus not deductible

in such taxable year may be carried over to the following year or years

and may be deducted from the taxpayer's tax for such year or years.

* NB There are 2 sb (x)'s

* (y) 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 taxes imposed by this article.

(2) Application of credit. The credit allowed under this subdivision

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 subdivision 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 3 sb§ (y)'s

* (y) 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 paragraph four of subdivision (a) of

section fifteen hundred two of this article or by section fifteen

hundred two-a of this article, whichever is applicable. However, if the

amount of credit allowed under this subdivision for any taxable year

reduces the tax to such amount, any amount of credit thus not deductible

in such taxable year may be carried over to the following year or years

and may be deducted from the taxpayer's tax for such year or years.

* NB There are 3 sb§ (y)'s

* (y) 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 thirty, a taxpayer, or a transferee

of such a taxpayer as described in paragraph seven of this subdivision,

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, and one hundred fifty percent of the amount of

credit allowed the taxpayer with respect to a certified historic

structure that is a small project, under internal revenue code section

47(c)(3), determined without regard to ratably allocating the credit

over a five year period as required by subsection (a) of such section

47, 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 thirty, a taxpayer, or a transferee of such a taxpayer as

described in paragraph seven of this subdivision, 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 internal

revenue code section 47(c)(3), determined without regard to ratably

allocating the credit over a five year period as required by subsection

(a) of such section 47 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 or transferee is a partner in a partnership, then

the cap imposed in subparagraph (A) of this paragraph shall be applied

at the entity level, so that the aggregate credit allowed to all the

partners of such partnership 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 taxpayer is allowed a credit pursuant to section 47 of the

internal revenue code with respect to a qualified rehabilitation that is

also the subject of the credit allowed by this subdivision and that

credit pursuant to such section 47 is recaptured pursuant to subsection

(a) of section 50 of the internal revenue code, a portion of the credit

allowed under this subdivision in the taxable year the credit was

claimed must be added back by the taxpayer or transferee in the same

taxable year and in the same proportion as the federal recapture.

(4) The credit allowed under this subdivision for any taxable year

shall not reduce the tax due for such year to less than the minimum

fixed by paragraph four of subdivision (a) of section fifteen hundred

two or section fifteen hundred two-a of this article, whichever is

applicable. 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.

(5) To be eligible for the credit allowable under this subdivision,

the rehabilitation project shall be in whole or in part located within a

census tract which is identified as being at or below one hundred

percent of the state median family income as calculated as of April

first of each year using the most recent five year estimate from the

American community survey published by the United States Census bureau.

If there is a change in the most recent five year estimate, a census

tract that qualified for eligibility under this program before

information about the change was released will remain eligible for a

credit under this subdivision for an additional two calendar years. The

eligibility restrictions set forth in this paragraph shall not be

applicable if:

(A) a qualified rehabilitation project is undertaken within a state

park, state historic site, or other land owned by the state, that is

under the jurisdiction of the office of parks, recreation and historic

preservation; or

(B) a qualified rehabilitation project is undertaken for the provision

of affordable housing and the taxpayer has entered into a regulatory

agreement with any state or federal agency or authority, or any other

government entity that is authorized to engage in the financing,

construction or oversight of affordable housing within such entity's

jurisdiction, and where such regulatory agreement sets forth

affordability requirements applicable for a period of not less than

thirty years and that is binding on all successors of the taxpayer.

(6) For purposes of this subdivision "small project" means qualified

rehabilitation expenditures totaling two million five hundred thousand

dollars or less.

(7)(A) A taxpayer allowed a credit pursuant to this subdivision may

transfer the credit, in whole or in part, to another person or entity,

who shall be referred to as the transferee, without regard to how any

tax credit authorized pursuant to section forty-seven of the internal

revenue code with respect to a qualified rehabilitation project may be

allocated and notwithstanding that such other person or entity owns no

interest in the qualified rehabilitation project or in an entity with an

ownership interest in the qualified rehabilitation project. A transferee

may not transfer any credit, or portion thereof, acquired by transfer.

(B) A taxpayer seeking to transfer a credit allowed pursuant to this

subdivision must enter into a transfer contract with the transferee. The

transfer contract must specify:

(i) the building identification numbers for all buildings in the

project;

(ii) the date each building was placed into service;

(iii) the schedule of years for which the transfer credit may be

claimed and the amount of credit previously claimed;

(iv) the amount of consideration received by the taxpayer for the

transfer credit; and

(v) the amount of credit being transferred.

(C) No transfer shall be effective unless the taxpayer allowed a

credit pursuant to this subdivision and seeking to transfer the credit

files a transfer application with the commissioner of parks, recreation

and historic preservation prior to the transfer and such transfer

application is approved. The transfer application shall include the name

and federal identification numbers of the taxpayer and each proposed

transferee, the amount of credit proposed to be transferred to each

proposed transferee, a copy of the transfer contract, and such other

information as the commissioner or the commissioner of parks, recreation

and historic preservation may require. The commissioner of parks,

recreation and historic preservation shall approve or deny each transfer

application and, if an application is denied, shall issue a written

determination to the taxpayer. If the transfer is approved, the

commissioner of parks, recreation and historic preservation shall issue

a transfer approval certificate that provides the name of the transferor

and all transferees, the amount of credit being transferred and such

other information as the commissioner of parks, recreation and historic

preservation and the commissioner deem necessary. A copy of the transfer

approval certificate must be attached to each transferee's tax return.

The commissioner of parks, recreation and historic preservation, in

consultation with the commissioner, may establish such other procedures

and standards deemed necessary for the transferability of credits

allowed under this subdivision.

(D) The commissioner of parks, recreation and historic preservation

shall forward copies of all transfer applications and attachments

thereto and approval certificates to the commissioner within thirty days

after the transfer is approved.

(E) A taxpayer allowed a credit pursuant to section forty-seven of the

internal revenue code with respect to a qualified rehabilitation that is

also the subject of the credit allowed by this subdivision shall remain

solely liable for all obligations and liabilities imposed on the

taxpayer with respect to the credit allowed by this subdivision, none of

which shall apply to a party to whom the credit has been subsequently

transferred.

* NB There are 3 sb§ (y)'s

(z) 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 paragraph four of subdivision (a) of section

fifteen hundred two of this article or by section fifteen hundred two-a

of this article, whichever is applicable. If, however, the amount of

credit 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.

* (aa) Economic transformation and facility redevelopment program tax

credit. (1) Allowance of credit. A taxpayer will be allowed a credit, to

be computed as provided in section thirty-five of this chapter, against

the taxes imposed by this article.

(2) Application of credit. The credit allowed under this subdivision

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 subdivision 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, 2026

(bb) 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 subdivision

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 subdivision 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.

(cc) Minimum wage reimbursement credit. (1) Allowance of credit. A

taxpayer shall be allowed a credit, to be computed as provided under

section thirty-eight of this chapter, against the tax imposed by this

article.

(2) Application of credit. The credit allowed under this subdivision

for any taxable year shall not reduce the tax due for such year to less

than the minimum tax fixed by paragraph four of subdivision (a) of

section fifteen hundred two of this article or by section fifteen

hundred two-a of this article, whichever is applicable. However, if the

amount of credit allowed under this subdivision for any taxable year

reduces the tax to such amount, then any amount of credit thus not

deductible in such taxable year shall be treated as an overpayment of

tax to be credited or refunded in accordance with the provisions of

section 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.

* (dd) Employer-provided child care credit. (1) Allowance of credit. A

taxpayer shall be allowed a credit, to be computed as provided in

section forty-four of this chapter, against the tax imposed by this

article.

(2) Application of credit. The credit allowed under this subdivision

shall not reduce the tax due for such year to be less than the minimum

fixed by paragraph four of subdivision (a) of section fifteen hundred

two or section fifteen hundred two-a of this article, whichever is

applicable. However, if the amount of the credit allowed under this

subdivision for any taxable year reduces the taxpayer's tax to such

amount, any amount of credit thus not deductible 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 one thousand eighty-eight

of this chapter notwithstanding, no interest shall be paid thereon.

(3) Credit recapture. For provisions requiring recapture of credit,

see section forty-four of this chapter.

* NB There are 2 sb (dd)'s

* (dd) Recovery tax credit. (1) Allowance of credit. A taxpayer that

is a qualified employer pursuant to section 32.38 of the mental hygiene

law that has received a certificate of tax credit from the commissioner

of the office of alcoholism and substance abuse services shall be

allowed a credit against the tax imposed by this article equal to the

amount shown on such certificate of tax credit. A taxpayer that is a

partner in a partnership or member of a limited liability company that

has been certified by the commissioner of the office of alcoholism and

substance abuse services as a qualified employer pursuant to section

32.38 of the mental hygiene law shall be allowed its pro rata share of

the credit earned by the partnership or limited liability company.

(2) Application of credit. The credit allowed under this subdivision

for any taxable year shall not reduce the tax due for such year to less

than the minimum tax fixed by paragraph four of subdivision (a) of

section fifteen hundred two of this article or by section fifteen

hundred two-a of this article, whichever is applicable. However, if the

amount of credit allowed under this subdivision for any taxable year

reduces the tax to such amount, then any amount of credit thus not

deductible in such taxable year shall be treated as an overpayment of

tax to be credited or refunded in accordance with the provisions of

section 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.

(3) Tax return requirement. The taxpayer shall be required to attach

to its tax return in the form prescribed by the commissioner, proof of

receipt of its certificate of tax credit issued by the commissioner of

the office of alcoholism and substance abuse services pursuant to

section 32.38 of the mental hygiene law.

* NB There are 2 sb (dd)'s

(ee) Child care creation and expansion tax credit. (1) Allowance of

credit. A taxpayer shall be allowed a credit, to be computed as provided

in section forty-eight of this chapter, against the tax imposed by this

article.

(2) Application of credit. The credit allowed under this subdivision

shall not reduce the tax due for such year to be less than the minimum

fixed by paragraph four of subdivision (a) of section fifteen hundred

two or section fifteen hundred two-a of this article, whichever is

applicable. However, if the amount of the credit allowed under this

subdivision for any taxable year reduces the taxpayer's tax to such

amount, any amount of credit thus not deductible 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 one thousand eighty-eight

of this chapter notwithstanding, no interest shall be paid thereon.