N.Y. Tax Law § 606: Credits against tax

§ 606. Credits against tax. (a) Investment tax credit (ITC). (1) A

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

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

credit shall be the per cent provided for hereinbelow of the investment

credit base. The investment credit base is the cost or other basis, for

federal income tax purposes, of tangible personal property and other

tangible property, including buildings and structural components of

buildings, described in paragraph two of this subsection, less the

amount of the nonqualified nonrecourse financing with respect to such

property to the extent such financing would be excludible from the

credit base pursuant to section 46(c)(8) of the internal revenue code

(treating such property as section thirty-eight property irrespective of

whether or not it in fact constitutes section thirty-eight property).

If, at the close of a taxable year following the taxable year in which

such property was placed in service, there is a net decrease in the

amount of nonqualified nonrecourse financing with respect to such

property, such net decrease shall be treated as if it were the cost or

other basis of property described in paragraph two of this subsection

acquired, constructed, reconstructed or erected during the year of the

decrease in the amount of nonqualified nonrecourse financing. The

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

subsection shall be that percentage appearing in column two which is

opposite the appropriate period in column one in which the tangible

personal property was acquired, constructed, reconstructed or erected,

as the case may be:

Column 1 Column 2

After December 31, 1968 and

prior to January 1, 1974 one per cent

After December 31, 1973 and

prior to January 1, 1978 two per cent

After December 31, 1977 and

prior to January 1, 1979 three per cent

After December 31, 1978 and

prior to June 1, 1981 four per cent

After May 31, 1981 and

prior to July 1, 1982 five per cent

After June 30, 1982 and

before January 1, 1987 six per cent

After December 31, 1986 four per cent, except that in the

case of research and development

property the applicable percentage

shall be seven

Provided, however, that in the case of an acquisition, construction,

reconstruction or erection which was commenced in any one period and

continued or completed in any subsequent period the credit shall be the

sum of the portions of the investment credit base attributable to each

such period, which portion with respect to each such period shall be

ascertained by multiplying such investment credit base by a fraction the

numerator of which shall be the expenditures paid or incurred during

such period for such purposes and the denominator of which shall be the

total of all expenditures paid or incurred for such acquisition,

construction, reconstruction or erection, multiplied by the allowable

percentage for each such period.

(1-a) For a taxpayer that is an eligible farmer, as defined in

subsection (n) of this section, the percentage to be used to compute the

credit allowed under this subsection shall be twenty percent for

property described in subparagraph (A) of paragraph two of this

subsection that is principally used by the taxpayer in the production of

goods by farming, agriculture, horticulture, floriculture or

viticulture.

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

to tangible personal property and other tangible property, including

buildings and structural components of buildings, which are: depreciable

pursuant to section one hundred sixty-seven of the internal revenue

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

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

revenue code, have a situs in this state and are (i) principally used by

the taxpayer in the production of goods by manufacturing, processing,

assembling, refining, mining, extracting, farming, agriculture,

horticulture, floriculture, viticulture or commercial fishing, (ii)

industrial waste treatment facilities or air pollution control

facilities, used in the taxpayer's trade or business, (iii) research and

development property, (iv) principally used in the ordinary course of

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

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

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

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

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

commodities as defined in section 475(e) of the Internal Revenue Code,

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

business of providing investment advisory services for a regulated

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

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

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

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

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

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

Revenue Code, or (vi) principally used as a qualified film production

facility including qualified film production facilities having a situs

in an empire zone designated as such pursuant to article eighteen-B of

the general municipal law, where the taxpayer is providing three or more

services to any qualified film production company using the facility,

including such services as a studio lighting grid, lighting and grip

equipment, multi-line phone service, broadband information technology

access, industrial scale electrical capacity, food services, security

services, and heating, ventilation and air conditioning. For purposes of

clauses (iv) and (v) of this subparagraph, property purchased by a

taxpayer affiliated with a regulated broker, dealer, or registered

investment adviser is allowed a credit under this subsection if the

property is used by its affiliated regulated broker, dealer or

registered investment adviser in accordance with this subsection. For

purposes of determining if the property is principally used in

qualifying uses, the uses by the taxpayer described in clauses (iv) and

(v) of this subparagraph may be aggregated. In addition, the uses by the

taxpayer, its affiliated regulated broker, dealer and registered

investment adviser under either or both of those clauses may be

aggregated. Provided, however, a taxpayer shall not be allowed the

credit provided by clauses (iv) and (v) of this subparagraph unless (I)

eighty percent or more of the employees performing the administrative

and support functions resulting from or related to the qualifying uses

of such equipment are located in this state, or (II) the average number

of employees that perform the administrative and support functions

resulting from or related to the qualifying uses of such equipment and

are located in this state during the taxable year for which the credit

is claimed is equal to or greater than ninety-five percent of the

average number of employees that perform these functions and are located

in this state during the thirty-six months immediately preceding the

year for which the credit is claimed, or (III) the number of employees

located in this state during the taxable year for which the credit is

claimed is equal to or greater than ninety percent of the number of

employees located in this state on December thirty-first, nineteen

hundred ninety-eight or, if the taxpayer was not a calendar year

taxpayer in nineteen hundred ninety-eight, the last day of its first

taxable year ending after December thirty-first, nineteen hundred

ninety-eight. If the taxpayer becomes subject to tax in this state after

the taxable year beginning in nineteen hundred ninety-eight, then the

taxpayer is not required to satisfy the employment test provided in the

preceding sentence of this subparagraph for its first taxable year. For

the purposes of clause (III) of this subparagraph 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. For purposes of clause

(i) of this subparagraph, tangible personal property and other tangible

property shall not include property principally used by the taxpayer in

the production or distribution of electricity, natural gas after

extraction from wells, steam, or water delivered through pipes and

mains.

(B) For purposes of this paragraph, the following definitions shall

apply:

(i) Manufacturing shall mean the process of working raw materials into

wares suitable for use or which gives new shapes, new quality or new

combinations to matter which already has gone through some artificial

process by the use of machinery, tools, appliances and other similar

equipment. Property used in the production of goods shall include

machinery, equipment or other tangible property which is principally

used in the repair and service of other machinery, equipment or other

tangible property used principally in the production of goods and shall

include all facilities used in the production operation, including

storage of material to be used in production and of the products that

are produced.

(ii) Research and development property shall mean property which is

used for purposes of research and development in the experimental or

laboratory sense. Such purposes shall not be deemed to include the

ordinary testing or inspection of materials or products for quality

control, efficiency surveys, management studies, consumer surveys,

advertising, promotions, or research in connection with literary,

historical or similar projects.

(iii) Industrial waste treatment facilities shall mean property

constituting facilities for the treatment, neutralization or

stabilization of industrial waste and other wastes (as the terms

"industrial waste" and "other wastes" are defined in section 17-0105 of

the environmental conservation law) from a point immediately preceding

the point of such treatment, neutralization or stabilization to the

point of disposal, including the necessary pumping and transmitting

facilities, but excluding such facilities installed for the primary

purpose of salvaging materials which are usable in the manufacturing

process or are marketable.

(iv) Air pollution control facilities shall mean property constituting

facilities which remove, reduce, or render less noxious air contaminants

emitted from an air contamination source (as the terms "air contaminant"

and "air contamination source" are defined in section 19-0107 of the

environmental conservation law) from a point immediately preceding the

point of such removal, reduction or rendering to the point of discharge

of air, meeting emission standards as established by the department of

environmental conservation, but excluding such facilities installed for

the primary purpose of salvaging materials which are usable in the

manufacturing process or are marketable and excluding those facilities

which rely for their efficacy on dilution, dispersion or assimilation of

air contaminants in the ambient air after emission. Such term shall

further include flue gas desulfurization equipment and attendant sludge

disposal facilities, fluidized bed boilers, precombustion coal cleaning

facilities or other facilities that conform with this subsection and

which comply with the provisions of the State Acid Deposition Control

Act set forth in title nine of article nineteen of the environmental

conservation law.

(v) For purposes of this paragraph, the terms "qualified film

production facility" and "qualified film production company" shall have

the same meaning as in section twenty-four of this chapter.

(C) However, such credit shall be allowed with respect to industrial

waste treatment facilities and air pollution control facilities only on

condition that such facilities have been certified by the state

commissioner of environmental conservation or his designated

representative, pursuant to subdivision one of section 17-0707 or

subdivision one of section 19-0309 of the environmental conservation

law, as complying with applicable provisions of the environmental

conservation law, the public health law, the state sanitary code and

codes, rules, regulations, permits or orders issued pursuant thereto.

(3) A taxpayer shall not be allowed a credit under this subsection

with respect to any property described in clause (i) of subparagraph (B)

of paragraph two hereof if such property qualifies for the modification

allowed under either paragraph three or paragraph four of subsection (g)

of section six hundred twelve whether or not such amount shall have been

subtracted. Provided, however, with respect to property which qualifies

for a modification under either clause (A), (B) or (C) of paragraph four

of subsection (g) because such property was ordered on or before

December thirty-first, nineteen hundred sixty-eight, but with respect to

which no expenditure has been paid or incurred at such date, the

taxpayer may elect to subtract the amount allowable under clauses (A),

(B) or (C) or may take the credit provided by this subsection, but not

both.

(4) A taxpayer shall not be allowed a credit under this subsection

with respect to tangible personal property and other tangible property,

including buildings and structural components of buildings, which it

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

property to an affiliated regulated broker, dealer, or registered

investment adviser that uses such property in accordance with clause

(iv) or (v) of subparagraph (A) of paragraph two of this subsection. For

purposes of the preceding sentence, any contract or agreement to lease

or rent or for a license to use such property shall be considered a

lease. Provided, however, in determining whether a taxpayer shall be

allowed a credit under this subsection with respect to such property,

any election made with respect to such property pursuant to the

provisions of paragraph eight of subsection (f) of section one hundred

sixty-eight of the internal revenue code, as such paragraph was in

effect for agreements entered into prior to January first, nineteen

hundred eighty-four, shall be disregarded. For purposes of this

paragraph, the use of a qualified film production facility by a

qualified film production company shall not be considered a lease of

such facility to such company.

(5) If the amount of credit allowable under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, the excess

allowed for a taxable year commencing prior to January first, nineteen

hundred eighty-seven may be carried over to the following year or years

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

in no event shall such credit be carried over to taxable years

commencing on or after January first, nineteen hundred ninety-seven, and

any amount of credit allowed for a taxable year commencing on or after

January first, nineteen hundred eighty-seven and not deductible in such

year may be carried over to the ten taxable years next following such

taxable year and may be deducted from the taxpayer's tax for such year

or years. In lieu of carrying over any such excess, (A) a taxpayer who

qualifies as an owner of a new business for purposes of paragraph ten of

this subsection may, at the taxpayer's option, receive such excess as a

refund, and (B) a taxpayer that is an eligible farmer as defined in

subsection (n) of this section may, at the taxpayer's option, for

taxable years beginning before January first, two thousand thirty-three,

receive such excess as a refund. Any refund paid pursuant to this

paragraph shall be deemed to be a refund of an overpayment of tax as

provided in section six hundred eighty-six of this article, provided,

however, that no interest shall be paid thereon.

(6) At the option of the taxpayer for taxable years commencing prior

to January first, nineteen hundred eighty-seven, air or water pollution

control facilities which qualify for elective modifications under

subsection (h) of section six hundred twelve, or research and

development facilities which qualify for elective modifications under

paragraphs two and four of subsection (g) of section six hundred twelve

may be treated as property principally used by the taxpayer in the

production of goods by manufacturing, processing, assembling, refining,

mining, extracting, farming, agriculture, horticulture, floriculture,

viticulture or commercial fishing, provided the property otherwise

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

modification shall not be allowed under such subsection (h) and under

such paragraphs two and four of subsection (g).

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

section one hundred sixty-seven of the internal revenue code but is not

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

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

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

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

this subsection which represents the ratio which the months of qualified

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

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

end of its useful life, the difference between the credit taken and the

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

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

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

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

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

allowed for actual use shall be determined by multiplying the original

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

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

property shall be the same as the taxpayer uses for depreciation

purposes when computing his federal income tax liability.

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

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

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

revenue code, which is disposed of or ceases to be in qualified use

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

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

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

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

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

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

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

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

determined by multiplying the original credit by the ratio which the

months of qualified use bear to thirty-six.

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

this paragraph applies, with respect to property subject to the

provisions of section one hundred sixty-eight of the internal revenue

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

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

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

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

the credit provided for in this subsection which represents the ratio

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

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

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

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

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

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

months of qualified use bear to sixty.

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

sixty-eight of the internal revenue code applies, which is a building or

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

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

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

the credit provided for in this subsection which represents the ratio

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

over which the taxpayer chooses to deduct the property under the

internal revenue code. If property on which credit has been taken is

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

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

internal revenue code, the difference between the credit taken and the

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

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

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

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

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

allowed for actual use shall be determined by multiplying the original

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

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

under the internal revenue code.

(E) For purposes of this paragraph, property (i) which is described in

subparagraph (B), (C) or (D) of this paragraph, and (ii) which is

subject to paragraph twenty-six of subsection (c) and paragraph

twenty-five of subsection (b) of section six hundred twelve of this

chapter, shall be treated as property which is depreciable pursuant to

section one hundred sixty-seven of the internal revenue code but is not

subject to section one hundred sixty-eight of such code.

(F) For purposes of this paragraph, where a credit is allowed with

respect to an air pollution control facility on the basis of a

certificate of compliance issued pursuant to the environmental

conservation law and the certificate is revoked pursuant to subdivision

three of section 19-0309 of the environmental conservation law, such

revocation shall constitute a disposal or cessation of qualified use,

unless such facility is described in clause (i) or (iii) of subparagraph

(A) of paragraph two of this subsection. Also for purposes of this

subparagraph, the use of an air pollution control facility or an

industrial waste treatment facility for the primary purpose of salvaging

materials which are usable in the manufacturing process or are

marketable shall constitute a cessation of qualified use, unless such

facility is described in clause (i) or (iii) of subparagraph (A) of

paragraph two of this subsection.

(G) For taxable years commencing on or after January first, nineteen

hundred eighty-seven, the amount required to be added back pursuant to

this paragraph shall be augmented by an amount equal to the product of

such amount and the underpayment rate of interest (without regard to

compounding), set by the commissioner pursuant to subsection (j) of

section six hundred ninety-seven, in effect on the last day of the

taxable year.

(H) If, as of the close of the taxable year, there is a net increase

with respect to the taxpayer in the amount of nonqualified nonrecourse

financing (within the meaning of section 46(c) (8) of the internal

revenue code) with respect to any property with respect to which the

credit under this subsection was limited based on attributable

nonqualified nonrecourse financing, then an amount equal to the decrease

in such credit which would have resulted from reducing, by the amount of

such net increase, the cost or other basis taken into account with

respect to such property must be added back in such taxable year. The

amount of nonqualified nonrecourse financing shall not be treated as

increased by reason of a transfer of (or agreement to transfer) any

evidence of an indebtedness if such transfer occurs (or such agreement

is entered into) more than one year after the date such indebtedness was

incurred.

(10) For purposes of paragraph five of this subsection, an individual

who is either a sole proprietor or a member of a partnership shall

qualify as an owner of a new business unless:

(A) the business of which the individual is an owner is substantially

similar in operation and in ownership to a business entity taxable, or

previously taxable, under section one hundred eighty-three, one hundred

eighty-four or former section one hundred eighty-five former section of

article nine; article nine-A or thirty-three of this chapter; article

twenty-three of this chapter or which would have been subject to tax

under such article twenty-three (as such article was in effect on

January first, nineteen hundred eighty), article thirty-two of this

chapter or which would have been subject to tax under such article

thirty-two (as such article was in effect on December thirty-first, two

thousand fourteen) or the income (or losses) of which is (or was)

includable under article twenty-two of this chapter whereby the intent

and purpose of this paragraph and paragraph five of this subsection with

respect to refunding of credit to new business would be evaded; or

(B) the individual has operated such new business entity in this state

for more than five taxable years (excluding short years of the

business).

(11) Retail enterprise tax credit. A retail enterprise, not eligible

to claim the credit under paragraph one of this subsection, but eligible

to claim the credit allowable under section thirty-eight of the internal

revenue code pursuant solely to the provisions of subparagraph (E) of

paragraph one of subsection (a) of section forty-eight of such code,

shall be allowed a credit as hereinafter computed. The amount of the

credit shall be the percentage appearing in paragraph one of this

subsection for the periods described therein for the amount of qualified

rehabilitation expenditures, as defined in subsection (g) of section

forty-eight of such code, paid or incurred with respect to a qualified

rehabilitated building, as defined in such subsection (g), located in

this state and such expenditures shall be further limited to only the

portion thereof paid or incurred with respect to that part of a

qualified rehabilitated building employed by such taxpayer in the retail

sales activity of such retail enterprise. For the purposes of this

subsection, the term "retail enterprise" means a taxpayer which is: (A)

a registered vendor under article twenty-eight of this chapter, (B)

primarily engaged in the retail sale, as the term "retail sale" is

defined in subparagraph (i) of paragraph four of subdivision (b) of

section eleven hundred one of this chapter, of tangible personal

property, and (C) otherwise eligible for the credit allowed pursuant to

section thirty-eight of the internal revenue code.

(12) Rehabilitation credit for historic barns. A taxpayer shall be

allowed a credit, to be computed as hereinafter provided, against the

tax imposed by this article. The amount of the credit shall be

twenty-five percent of the taxpayer's qualified rehabilitation

expenditures paid or incurred within the five years immediately

preceding the year in which such tax credit shall be applied with

respect to any barn located in this state which qualifies as an historic

barn pursuant to subdivision five of section four hundred eighty-three-b

of the real property tax law. For purposes of this paragraph, the term

"barn" means a building that is or was used as an agricultural facility

or for purposes related to agriculture. Provided, however, such

qualified rehabilitation expenditures shall not include any such

expenditures which are included, directly or indirectly, in the

computation of a credit claimed by the taxpayer pursuant to paragraph

one of this subsection. Provided further that no rehabilitation credit

shall be allowed for any rehabilitation of a barn which, immediately

prior to the commencement of such rehabilitation, was used for

residential purposes, or which converts a barn not suitable for

residential purposes into one which is so suitable, nor shall a

rehabilitation credit be allowed for any rehabilitation that materially

alters the historic appearance of the barn.

(13)(A)(i) If a taxpayer is required by paragraph seven of this

subsection to add back a portion of the credit taken because property

was destroyed or ceased to be in qualified use as a direct result of the

September eleventh, two thousand one terrorist attacks, such taxpayer

may elect to defer the amount to be recaptured for all such property to

the taxable year next succeeding the taxable year in which the

destruction or cessation of qualified use occurred. The taxable year in

which the destruction or cessation of qualified use occurred shall be

hereinafter referred to as the "recapture event taxable year". If the

taxpayer's total employment number in the state on the last day of the

taxable year next succeeding the recapture event taxable year is a

significant percentage of the taxpayer's average total employment number

in the state for the taxpayer's recapture event taxable year and the two

taxable years immediately preceding the recapture event taxable year,

then the taxpayer shall not be required to recapture any credit with

respect to such property. If the taxpayer's total employment number in

the state on the last day of the taxable year next succeeding the

recapture event taxable year is not a significant percentage of the

taxpayer's average total employment number in the state for the

taxpayer's recapture event taxable year and the two taxable years

immediately preceding the recapture event taxable year, the taxpayer

shall be required to recapture the portion of the credit taken under

this subsection, as required by paragraph seven of this subsection, for

all of its property destroyed or which ceased to be in qualified use as

a direct result of the September eleventh, two thousand one terrorist

attacks. The amount required to be recaptured shall be augmented as

required pursuant to subparagraph (G) of paragraph seven of this

subsection by using an interest rate equal to two times the rate of

interest specified in such subparagraph seven applicable for the taxable

year in which the recapture occurs.

(ii) The taxpayer's total employment number shall include all

employees of the taxpayer employed full-time by the taxpayer in the

state. The average total employment number for the recapture event

taxable year and the two taxable years immediately preceding the

recapture event taxable year shall be computed by determining the

taxpayer's total employment number on the thirty-first day of March, the

thirtieth day of June, the thirtieth day of September and the

thirty-first day of December during the applicable taxable years, adding

together the number of such individuals determined to be so employed on

each of such dates and dividing the sum so obtained by the number of

such dates occurring within such applicable taxable years. However, in

the case of the taxable year which included September eleventh, two

thousand one, the average total employment number for such taxable year

shall be determined by using the total employment number on September

first, two thousand one in lieu of September thirtieth, two thousand one

and, if such taxable year included December thirty-first, two thousand

one, by excluding the total employment number on December thirty-first,

two thousand one.

(B) In lieu of subparagraph (A) of this paragraph, a taxpayer may

elect to recapture the portion of the credit taken under this

subsection, as required by paragraph seven of this subsection, for all

of its property destroyed or which ceased to be in qualified use as a

direct result of the September eleventh, two thousand one terrorist

attacks, in the taxable year in which the destruction or cessation of

qualified use occurred. If the taxpayer makes such election and acquires

property (hereinafter referred to as "replacement property") to replace

any property destroyed as a direct result of the September eleventh, two

thousand one terrorist attacks (regardless of when such property was

placed in service and whether a credit was claimed on that property

pursuant to this subsection), and such replacement property is similar

or related in service or use to such destroyed property, the investment

credit base of the replacement property shall be determined without

regard to any basis reduction required pursuant to section 1033 of the

internal revenue code.

(C) The election made by the taxpayer under subparagraph (A) or (B) of

this paragraph shall be made in the manner and form prescribed by the

commissioner.

(D) A taxpayer, over fifty percent of whose employees died as a direct

result of the September eleventh, two thousand one terrorist attacks,

may make the election provided for in subparagraph (A) of this

paragraph, and shall not be required to recapture any credit with

respect to property which was destroyed or which ceased to be in

qualified use as a direct result of such attacks, whether or not it

meets the employment test specified in clause (i) of subparagraph (A) of

this paragraph.

(a-1) Employment incentive credit (EIC). (1)(A) Where a taxpayer is

allowed a credit under subsection (a) of this section, other than at the

optional rate applicable to research and development property, the

taxpayer shall be allowed a credit for each of the two years next

succeeding the taxable year for which the credit under such subsection

(a) is allowed with respect to such property, whether or not deductible

in such taxable year or in subsequent taxable years pursuant to

paragraph five of subsection (a) of this section. Provided, however,

that the credit allowable under this subsection for any taxable year

shall be allowed only if the average number of employees during such

taxable year is at least one hundred one percent of the average number

of employees during the employment base year. The employment base year

shall be the taxable year immediately preceding the taxable year for

which the credit under such subsection (a) is allowed except that in the

case of a new business, the employment base year shall be the taxable

year in which the credit under such subsection (a) is allowed.

(B) The amount of the credit allowed under this subsection shall be as

set forth in the following table:

Average number of employees during Credit allowed under this

the taxable year expressed as a subsection expressed as a

percentage of average number of percentage of the applicable

employees in employment base year: investment credit base:

Less than 102% 1.5%

at least 102% and less than 103% 2%

at least 103% 2.5%

(2) The average number of employees in a taxable year shall be

computed by ascertaining the number of employees within the state

employed by the taxpayer on the thirty-first day of March, the thirtieth

day of June, the thirtieth day of September and the thirty-first day of

December in the taxable year, by adding together the number of employees

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

the number of such abovementioned dates occurring within the taxable

year. For the purposes of this subsection, the term "employees within

the state" shall not include, except with respect to the employment base

year, any employee with respect to whom a credit provided for under

subsection (k) of this section is claimed for the taxable year, based on

employment within a zone equivalent area designated as such pursuant to

article eighteen-B of the general municipal law.

(3) If the amount of credit allowable under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, the excess

allowed for a taxable year may be carried over to the ten taxable years

next following such taxable year and may be deducted from the taxpayer's

tax for such year or years. In lieu of carrying over any such excess, a

taxpayer who qualifies as an owner of a new business for purposes of

paragraph ten of subsection (a) of this section may, at his or her

option, receive such excess as a refund. Any refund paid pursuant to

this paragraph shall be deemed to be a refund of an overpayment of tax

as provided in section six hundred eighty-six of this article, provided,

however, that no interest shall be paid thereon.

(a-2) 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 subsection, 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 subsection, 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 subsection 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. If the amount of credit allowable under this subsection

for any taxable year exceeds the taxpayer's tax for such year, 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.

(b) Household credit. (1) A household credit shall be allowed against

the tax determined under subsections (a) through (d) of section six

hundred one of this article. The credit, computed as described in

paragraph two of this subsection, shall not exceed the tax determined

under subsections (a) through (d) of section six hundred one for the

taxable year, reduced by the credits permitted under sections six

hundred twenty and six hundred twenty-one of this article.

(2) (A) For any individual who is not married nor the head of a

household nor a surviving spouse, the amount of the credit allowed

pursuant to this subsection for taxable years beginning on or after

January first, nineteen hundred eighty-six shall be determined in

accordance with the following table:

If household gross income is The credit shall be

Not over $5,000 $75.00

Over $5,000 but not over $6,000 60.00

Over $6,000 but not over $7,000 50.00

Over $7,000 but not over $20,000 45.00

Over $20,000 but not over $25,000 40.00

Over $25,000 but not over $28,000 20.00

(B) For any husband and wife, head of a household, or surviving

spouse, the amount of the credit allowed pursuant to this subsection for

taxable years beginning on or after January first, nineteen hundred

eighty-six shall be determined in accordance with the following table:

If household gross income is The credit shall be

Not over $5,000 $90.00 plus an amount equal to

$15.00 multiplied by a number which

is one less than the number of

exemptions for which the taxpayer

(or in the case of a husband and

wife, taxpayers) is entitled to a

deduction for the taxable year for

federal income tax purposes under

subsections (b) and (c) of section

one hundred fifty-one of the

internal revenue code

Over $5,000 but not over $6,000 $75.00 plus such an amount

Over $6,000 but not over $7,000 $65.00 plus such an amount

Over $7,000 but not over $20,000 $60.00 plus such an amount

Over $20,000 but not over $22,000 $60.00 plus an amount equal to

$10.00 multiplied by a number which

is one less than the number of

exemptions for which the taxpayer

(or in the case of a husband and

wife, taxpayers) is entitled to a

deduction for the taxable year for

federal income tax purposes under

subsections (b) and (c) of section

one hundred fifty-one of the

internal revenue code

Over $22,000 but not over $25,000 $50.00 plus such an amount

Over $25,000 but not over $28,000 $40.00 plus an amount equal to $5.00

multiplied by a number which is one

less than the number of exemptions

for which the taxpayer (or in the

case of a husband and wife,

taxpayers) is entitled to a

deduction for the taxable year for

federal income tax purposes under

subsections (b) and (c) of section

one hundred fifty-one of the

internal revenue code

Over $28,000 but not over $32,000 $20.00 plus such an amount

(3) For the purposes of this subsection:

(A) "Household gross income" shall mean the aggregate federal adjusted

gross income of a household, as the term household is defined in

subparagraph (B) of this paragraph, for the taxable year.

(B) "Household" means a husband and wife, a head of household, a

surviving spouse, or an individual who is not married nor the head of a

household nor a surviving spouse nor a taxpayer with respect to whom a

deduction under subsection (c) of section one hundred fifty-one of the

internal revenue code is allowable to another taxpayer for the taxable

year.

(C) "Household gross income of a husband and wife" shall be the

aggregate of their federal adjusted gross incomes for the taxable year

irrespective of whether joint or separate New York income tax returns

are filed. Provided, however, that a husband or wife who is required to

file a separate New York income tax return shall be permitted one-half

the credit otherwise allowed his or her household, except as limited by

paragraph one of this subsection.

(c) Credit for certain household and dependent care services necessary

for gainful employment. (1) For taxable years beginning before January

first, two thousand twenty-six, a taxpayer shall be allowed a credit as

provided herein equal to the applicable percentage of the credit

allowable under section twenty-one of the internal revenue code for the

same taxable year (without regard to whether the taxpayer in fact

claimed the credit under such section twenty-one for such taxable year).

The applicable percentage shall be the sum of (i) twenty percent and

(ii) a multiplier multiplied by a fraction. For taxable years beginning

in nineteen hundred ninety-six and nineteen hundred ninety-seven, the

numerator of such fraction shall be the lesser of (i) four thousand

dollars or (ii) fourteen thousand dollars less the New York adjusted

gross income for the taxable year, provided, however, the numerator

shall not be less than zero. For the taxable year beginning in nineteen

hundred ninety-eight, the numerator of such fraction shall be the lesser

of (i) thirteen thousand dollars or (ii) thirty thousand dollars less

the New York adjusted gross income for the taxable year, provided,

however, the numerator shall not be less than zero. For taxable years

beginning in nineteen hundred ninety-nine, the numerator of such

fraction shall be the lesser of (i) fifteen thousand dollars or (ii)

fifty thousand dollars less the New York adjusted gross income for the

taxable year, provided, however, the numerator shall not be less than

zero. For taxable years beginning after nineteen hundred ninety-nine,

the numerator of such fraction shall be the lesser of (i) fifteen

thousand dollars or (ii) sixty-five thousand dollars less the New York

adjusted gross income for the taxable year, provided, however, the

numerator shall not be less than zero. The denominator of such fraction

shall be four thousand dollars for taxable years beginning in nineteen

hundred ninety-six and nineteen hundred ninety-seven, thirteen thousand

dollars for the taxable year beginning in nineteen hundred ninety-eight,

and fifteen thousand dollars for taxable years beginning after nineteen

hundred ninety-eight. The multiplier shall be ten percent for taxable

years beginning in nineteen hundred ninety-six, forty percent for

taxable years beginning in nineteen hundred ninety-seven, and eighty

percent for taxable years beginning after nineteen hundred ninety-seven.

Provided, however, for taxable years beginning after nineteen hundred

ninety-nine, for a person whose New York adjusted gross income is less

than forty thousand dollars, such applicable percentage shall be equal

to (i) one hundred percent, plus (ii) ten percent multiplied by a

fraction whose numerator shall be the lesser of (i) fifteen thousand

dollars or (ii) forty thousand dollars less the New York adjusted gross

income for the taxable year, provided such numerator shall not be less

than zero, and whose denominator shall be fifteen thousand dollars.

Provided, further, that if the reversion event, as defined in this

paragraph, occurs, the applicable percentage shall, for taxable years

ending on or after the date on which the reversion event occurred, be

determined using the rules specified in this paragraph applicable to

taxable years beginning in nineteen hundred ninety-nine. The reversion

event shall be deemed to have occurred on the date on which federal

action, including but not limited to, administrative, statutory or

regulatory changes, materially reduces or eliminates New York state's

allocation of the federal temporary assistance for needy families block

grant, or materially reduces the ability of the state to spend federal

temporary assistance for needy families block grant funds for the credit

for certain household and dependent care services necessary for gainful

employment or to apply state general fund spending on the credit for

certain household and dependent care services necessary for gainful

employment toward the temporary assistance for needy families block

grant maintenance of effort requirement, and the commissioner of the

office of temporary and disability assistance shall certify the date of

such event to the commissioner, the director of the division of the

budget, the speaker of the assembly and the temporary president of the

senate.

(1-a) For taxable years beginning after two thousand seventeen, for a

taxpayer with New York adjusted gross income of at least fifty thousand

dollars but less than one hundred fifty thousand dollars, the applicable

percentage shall be the applicable percentage otherwise computed under

paragraph one of this subsection multiplied by a factor as follows:

If New York adjusted gross

income is: The factor is:

At least $50,000 and less

than $55,000 1.1682

At least $55,000 and less

than $60,000 1.2733

At least $60,000 and less

than $65,000 2.322

At least $65,000 and less

than $150,000 3.000

(1-b) Notwithstanding anything in this subsection to the contrary, a

taxpayer shall be allowed a credit as provided in this subsection equal

to the applicable percentage of the credit allowable under section

twenty-one of the internal revenue code for the same taxable year

(without regard to whether the taxpayer in fact claimed the credit under

such section twenty-one for such taxable year) that would have been

allowed absent the application of section 21(c) of such code for

taxpayers with more than two qualifying individuals, provided however,

that the credit shall be calculated as if the dollar limit on amount

creditable shall not exceed seven thousand five hundred dollars if there

are three qualifying individuals, eight thousand five hundred dollars if

there are four qualifying individuals, and nine thousand dollars if

there are five or more qualifying individuals.

(2) Residents. In the case of a resident taxpayer, the credit under

this subsection shall be allowed against the taxes imposed by this

article for the taxable year reduced by the credits permitted by this

article. If the credit exceeds the tax as so reduced, the taxpayer may

receive, and the comptroller, subject to a certificate of the

commissioner, shall pay as an overpayment, without interest, the amount

of such excess.

(3) Nonresidents. In the case of a nonresident taxpayer, the credit

under this subsection shall be allowed against the tax determined under

subsections (a) through (d) of section six hundred one. The amount of

the credit shall not exceed the tax determined under such subsections

for the taxable year reduced by the credit permitted under subsection

(b) of this section.

(4) Part-year residents. In the case of a part-year resident taxpayer,

the credit under this subsection shall be allowed against the tax

determined under subsections (a) through (d) of section six hundred one

reduced by the credit permitted under subsection (b) of this section,

and any excess credit after such application shall be allowed against

the tax imposed by section six hundred three. Any remaining excess,

after such application, shall be refunded as provided in paragraph two

hereof, provided, however, that any overpayment under such paragraph

shall be limited to the amount of the remaining excess multiplied by a

fraction, the numerator of which is federal adjusted gross income for

the period of residence, computed as if the taxable year for federal

income tax purposes were limited to the period of residence, and the

denominator of which is federal adjusted gross income for the taxable

year.

(5) In the case of a husband and wife who file a joint federal return,

but who are required to determine their New York taxes separately, the

credit allowed pursuant to this subsection may only be applied against

the tax imposed on the spouse with the lower taxable income, computed

without regard to such credit. In the case of a husband and wife who are

not required to file a federal return, the credit under this subsection

shall be allowed only if such taxpayers file a joint New York income tax

return.

(c-1) Empire state child credit. (1) For taxable years beginning

before January first, two thousand twenty-five, and taxable years

beginning on or after January first, two thousand twenty-eight, a

resident taxpayer shall be allowed a credit as provided herein equal to

the greater of one hundred dollars times the number of qualifying

children of the taxpayer or the applicable percentage of the child tax

credit allowed the taxpayer under section twenty-four of the internal

revenue code for the same taxable year for each qualifying child.

Provided, however, in the case of a taxpayer whose federal adjusted

gross income exceeds the applicable threshold amount set forth by

section 24(b)(2) of the Internal Revenue Code, the credit shall only be

equal to the applicable percentage of the child tax credit allowed the

taxpayer under section 24 of the Internal Revenue Code for each

qualifying child. For the purposes of this subsection, a qualifying

child shall be a child who meets the definition of qualified child under

section 24(c) of the internal revenue code. The applicable percentage

shall be thirty-three percent. For purposes of this subsection, any

reference to section 24 of the Internal Revenue Code shall be a

reference to such section as it existed immediately prior to the

enactment of Public Law 115-97.

(1-a) (A) For taxable years beginning on and after January first, two

thousand twenty-five, and before January first, two thousand twenty-six,

a resident taxpayer shall be allowed a credit as provided herein, equal

to the sum of:

(i) one thousand dollars times the number of qualifying children of

the taxpayer aged three or younger, and

(ii) three hundred thirty dollars times the number of qualifying

children of the taxpayer who have attained age four and not yet attained

age seventeen.

(B) For taxable years beginning on and after January first, two

thousand twenty-six, and before January first, two thousand

twenty-eight, a resident taxpayer shall be allowed a credit as provided

herein, equal to the sum of:

(i) one thousand dollars times the number of qualifying children of

the taxpayer aged three or younger, and

(ii) five hundred dollars times the number of qualifying children of

the taxpayer who have attained age four and not yet attained age

seventeen.

(C) The amount of the credit allowable under subparagraphs (A) and (B)

of this paragraph shall be reduced (but not below zero) by sixteen

dollars and fifty cents for each one thousand dollars by which the

taxpayer's federal adjusted gross income exceeds the threshold amount.

For the purposes of this subparagraph, the term "threshold amount" shall

mean: (i) one hundred ten thousand dollars in the case of married

taxpayers filing jointly; (ii) seventy-five thousand dollars in the case

of a taxpayer filing as single, head of household, or qualified surving

spouse; and (iii) fifty-five thousand dollars in the case of a married

taxpayer filing a separate return.

(D) For the purposes of this paragraph, a qualifying child shall be an

individual who: (i) is a child, sibling, or stepsibling of the taxpayer,

or a descendent of any such relative; (ii) has the same principal place

of abode as the taxpayer for more than one-half of the taxable year;

(iii) has not attained age seventeen; (iv) has not provided over

one-half of such individual's own support for the calendar year in which

the taxable year of the taxpayer begins; (v) has not filed a joint

return (other than only for a claim of refund) with the individual's

spouse under section six hundred fifty-one of this article for the

taxable year; and (vi) is a citizen or national of the United States, or

an individual with an individual taxpayer identification number issued

by the internal revenue service.

(E) For the purposes of this paragraph, the term "child" shall mean an

individual who is the offspring or stepchild of the taxpayer, or an

eligible foster child of the taxpayer, or a legally adopted individual

of the taxpayer, or an individual who is lawfully placed with the

taxpayer for legal adoption by the taxpayer.

(F) (i) Except as provided in subparagraph (C) of this paragraph, if

an individual may be claimed as a qualifying child by two or more

taxpayers for a taxable year, such individual shall be treated as the

qualifying child of the taxpayer who is: (I) a parent of the individual,

or (II) if subclause (I) does not apply, the taxpayer with the highest

federal adjusted gross income for such taxable year.

(ii) If the parents claiming any qualifying child do not file a joint

return together, such child shall be treated as the qualifying child of:

(I) the parent with whom the child resided for the longest period of

time during the taxable year, or (II) if the child resides with both

parents for the same amount of time during such taxable year, the parent

with the highest federal adjusted gross income who files a return

pursuant to section six hundred fifty-one of this article.

(iii) If the parents of an individual may claim such individual as a

qualifying child but no parent so claims the individual, such individual

may be claimed as the qualifying child of another taxpayer, but only if

the federal adjusted gross income of such taxpayer is higher than the

highest federal adjusted gross income of any parent of the individual,

regardless of a requirement to file a return pursuant to section six

hundred fifty-one of this article.

(2) If the amount of the credit allowed under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, the excess

shall be treated as an overpayment of tax to be credited or refunded in

accordance with the provisions of section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon.

(3) In the case of a husband and wife who file a joint federal return,

but who are required to determine their New York taxes separately, the

credit allowed pursuant to this subsection may be applied against the

tax imposed of either or divided between them as they may elect.

(4) (A) For tax year two thousand twenty-one, the commissioner shall

issue a payment of a supplemental empire state child credit in the

amount of (i) one hundred percent of the empire state child credit

calculated and allowed pursuant to this subsection to taxpayers whose

federal adjusted gross income was less than ten thousand dollars; (ii)

seventy-five percent of the empire state child credit calculated and

allowed pursuant to this subsection to taxpayers whose federal adjusted

gross income was greater than or equal to ten thousand dollars but less

than twenty-five thousand dollars; (iii) fifty percent of the empire

state child credit calculated and allowed pursuant to this subsection to

taxpayers whose federal adjusted gross income was greater than or equal

to twenty-five thousand dollars but less than fifty thousand dollars;

and (iv) twenty-five percent of the empire state child credit calculated

and allowed pursuant to this subsection to taxpayers whose federal

adjusted gross income was greater than or equal to fifty thousand

dollars. Provided, however, that no payment shall be issued if it is

less than twenty-five dollars.

(B) The supplemental payment pursuant to this paragraph will be

allowed to taxpayers who timely filed returns pursuant to section six

hundred fifty-one of this article, determined with regard to extensions

pursuant to section sex hundred fifty-seven of this article.

(5) (A) For tax year two thousand twenty-three, the commissioner shall

issue a payment of a supplemental empire state child credit in the

amount of (i) one hundred percent of the empire state child credit

calculated and allowed pursuant to this subsection to taxpayers whose

federal adjusted gross income was less than ten thousand dollars; (ii)

seventy-five percent of the empire state child credit calculated and

allowed pursuant to this subsection to taxpayers whose federal adjusted

gross income was greater than or equal to ten thousand dollars but less

than twenty-five thousand dollars; (iii) fifty percent of the empire

state child credit calculated and allowed pursuant to this subsection to

taxpayers whose federal adjusted gross income was greater than or equal

to twenty-five thousand dollars but less than fifty thousand dollars;

and (iv) twenty-five percent of the empire state child credit calculated

and allowed pursuant to this subsection to taxpayers whose federal

adjusted gross income was greater than or equal to fifty thousand

dollars. Provided, however, that no payment shall be issued if it is

less than twenty-five dollars.

(B) The supplemental payment pursuant to this paragraph shall be

allowed to taxpayers who timely filed returns pursuant to section six

hundred fifty-one of this article, determined with regard to extensions

pursuant to section six hundred fifty-seven of this article.

(c-2) New York state child and dependent care credit. (1) For taxable

years beginning on or after January first, two thousand twenty-six, an

eligible taxpayer shall be allowed a credit as provided herein to enable

the eligible taxpayer to be gainfully employed or a full-time student at

an educational institution for any period of the taxable year. If the

amount of the credit allowed under this subsection for any taxable year

shall exceed the eligible taxpayer's tax for such year, the excess shall

be treated as an overpayment of tax to be credited or refunded in

accordance with the provisions of six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon.

(2) For the purposes of this subsection:

(A) "Eligible taxpayer" shall mean a resident individual as defined in

paragraph one of subsection (b) of section six hundred five of this

article who, during the taxable year: (i) is not a dependent of another

taxpayer pursuant to section one hundred fifty-two of the internal

revenue code; and (ii) is not a resident married individual filing a

separate return unless such individual meets the conditions in paragraph

four of subdivision (e) of section twenty-one of the internal revenue

code. Provided, however, where married individuals file a joint federal

return, but are required to determine their New York taxes separately

pursuant to subsection (b) of section six hundred fifty-one of this

article, the credit allowed pursuant to this subsection may only be

applied against the tax imposed on the spouse with the lower New York

adjusted gross income.

(B) "Qualifying individual" shall mean an individual who: (i) is under

the age of thirteen at the close of the taxable year or is physically or

mentally incapable of caring for themselves during the taxable year;

(ii) resides with the eligible taxpayer for more than one-half of the

taxable year; and (iii) is claimed as a dependent pursuant to section

one hundred fifty-two of the internal revenue code, or could otherwise

be claimed as a dependent. Provided, a qualifying individual shall also

include an individual where a noncustodial parent claims such individual

under subsection (e) of section one hundred fifty-two of the internal

revenue code or the individual is the eligible taxpayer's spouse who is

physically or mentally incapable of caring for themselves during the

taxable year and resides with the eligible taxpayer for more than

one-half of the taxable year.

(C) "Earned income" shall mean the wages, salaries, tips and other

employee compensation, and those items of gross income which are

includible in the computation of net earnings from self-employment.

(D) (i) "Qualifying expenses" shall mean the sum of the amount

incurred and paid in the taxable year directly by an eligible taxpayer

for: a. services provided in and about the eligible taxpayer's

residence to provide care for any qualifying individual, including such

expenses for the room and board of any such caregiver; and b.

non-overnight services provided outside of the eligible taxpayer's

residence to provide care for any qualifying individual; provided,

however, that amounts incurred or paid for which the primary purpose is

educational shall not be included.

(ii) Provided, however, "qualifying expenses" shall not include: a.

any amounts paid whereby the taxpayer receives reimbursement or are paid

from funds provided by a government entity, dependent care account, or

other third party; b. any amounts paid to a dependent of the taxpayer

for which the taxpayer or the taxpayer's spouse is entitled to a

deduction for the taxable year under subsection (c) of section one

hundred fifty-one of the internal revenue code; or c. any amounts paid

to a child of the taxpayer as defined in paragraph one of subsection (f)

of section one hundred fifty-two of the internal revenue code who has

not attained the age of nineteen at the close of the taxable year.

(iii) For the purposes of the credit provided pursuant to this

subsection, an eligible taxpayer's qualifying expenses shall not exceed:

a. three thousand dollars, in the case of an eligible taxpayer with

one qualifying individual;

b. six thousand dollars, in the case of an eligible taxpayer with two

qualifying individuals;

c. seven thousand five hundred dollars, in the case of an eligible

taxpayer with three qualifying individuals;

d. eight thousand five hundred dollars, in the case of an eligible

taxpayer with four qualifying individuals; and

e. nine thousand dollars, in the case of an eligible taxpayer with

five or more qualifying individuals.

Provided, further, that an eligible taxpayer's qualifying expenses

shall not exceed such eligible taxpayer's earned income as defined in

subparagraph (C) of this paragraph, or in the case of a married eligible

taxpayer filing a joint return, the lesser of the earned income of each

spouse determined separately.

(E) "Applicable percentage" shall mean: (i) fifty-five percent in the

case of an eligible taxpayer with a New York adjusted gross income

determined pursuant to section six hundred twelve of this article of

fifteen thousand dollars or less; or (ii) fifty-five percent reduced by

twenty-five hundred thousandths of a percentage point for each dollar of

an eligible taxpayer's New York adjusted gross income determined

pursuant to section six hundred twelve of this article in excess of

fifteen thousand dollars. Provided, however, that the applicable

percentage for an eligible taxpayer shall not be reduced below four

percent.

(3) The amount of the credit allowed to an eligible taxpayer under

this subsection shall be the product of the eligible taxpayer's

qualifying expenses determined pursuant to subparagraph (D) of paragraph

two of this subsection and the applicable percentage determined pursuant

to subparagraph (E) of paragraph two of this subsection. Provided,

however, the credit allowed under this subsection shall be reduced by

twenty dollars for each one thousand dollars by which the eligible

taxpayer's New York adjusted gross income determined pursuant to section

six hundred twelve of this article exceeds seven hundred fifty thousand

dollars.

(4) To be eligible for the credit provided by this subsection, an

eligible taxpayer shall provide the following information to the

satisfaction of the commissioner: (i) the amount of qualifying expenses;

(ii) identifying information related to the care provider; (iii)

identifying information related to the qualifying individual for whom

the expenses were incurred; and (iv) any other information as required.

(5) Any references to the internal revenue code in this subsection

shall be to the internal revenue code as it existed prior to January

first, two thousand twenty-five.

(d) Earned income credit. (1) General. A taxpayer shall be allowed a

credit as provided herein equal to (i) the applicable percentage of the

earned income credit allowed under section thirty-two of the internal

revenue code for the same taxable year, (ii) reduced by the credit

permitted under subsection (b) of this section.

The applicable percentage shall be (i) seven and one-half percent for

taxable years beginning in nineteen hundred ninety-four, (ii) ten

percent for taxable years beginning in nineteen hundred ninety-five,

(iii) twenty percent for taxable years beginning after nineteen hundred

ninety-five and before two thousand, (iv) twenty-two and one-half

percent for taxable years beginning in two thousand, (v) twenty-five

percent for taxable years beginning in two thousand one, (vi)

twenty-seven and one-half percent for taxable years beginning in two

thousand two, and (vii) thirty percent for taxable years beginning in

two thousand three and thereafter. Provided, however, that if the

reversion event, as defined in this paragraph, occurs, the applicable

percentage shall be twenty percent for taxable years ending on or after

the date on which the reversion event occurred. The reversion event

shall be deemed to have occurred on the date on which federal action,

including but not limited to, administrative, statutory or regulatory

changes, materially reduces or eliminates New York state's allocation of

the federal temporary assistance for needy families block grant, or

materially reduces the ability of the state to spend federal temporary

assistance for needy families block grant funds for the earned income

credit or to apply state general fund spending on the earned income

credit toward the temporary assistance for needy families block grant

maintenance of effort requirement, and the commissioner of the office of

temporary and disability assistance shall certify the date of such event

to the commissioner of taxation and finance, the director of the

division of the budget, the speaker of the assembly and the temporary

president of the senate.

(2) Residents. In the case of a resident taxpayer, the credit under

this subsection shall be allowed against the taxes imposed by this

article for the taxable year reduced by the credits permitted by this

article. If the credit exceeds the tax as so reduced, the taxpayer may

receive, and the comptroller, subject to a certificate of the

commissioner, shall pay as an overpayment, without interest, the amount

of such excess.

(3) Nonresidents. In the case of a nonresident taxpayer, the credit

under this subsection shall be allowed against the tax determined under

subsections (a) through (d) of section six hundred one. The amount of

the credit shall not exceed the tax determined under such subsections

for the taxable year reduced by the credits permitted under subsections

(b), (c) and (m) of this section.

(4) Part-year residents. In the case of a part-year resident taxpayer,

the credit under this subsection shall be allowed against the tax

determined under subsections (a) through (d) of section six hundred one

reduced by the credits permitted under subsections (b), (c) and (m) of

this section, and any excess credit after such application shall be

allowed against the tax imposed by section six hundred three. Any

remaining excess, after such application, shall be refunded as provided

in paragraph two hereof, provided, however, that any overpayment under

such paragraph shall be limited to the amount of the remaining excess

multiplied by a fraction, the numerator of which is federal adjusted

gross income for the period of residence, computed as if the taxable

year for federal income tax purposes were limited to the period of

residence, and the denominator of which is federal adjusted gross income

for the taxable year.

(5) Husband and wife. In the case of a husband and wife who file a

joint federal return but who are required to determine their New York

taxes separately, the credit allowed pursuant to this subsection may be

applied against the tax of either or divided between them as they may

elect.

(6) Notification. (A) The commissioner shall periodically, but not

less than every three years, make efforts to alert taxpayers that may be

currently eligible to receive the credit provided under this subsection,

and the credit provided under any local law enacted pursuant to

subsection (f) of section thirteen hundred ten of this chapter, as to

their potential eligibility. In making the determination of whether a

taxpayer may be eligible for such credit, the commissioner shall use

such data as may be appropriate and available, including, but not

limited to, data available from the United States Department of

Treasury, Internal Revenue Service and New York state income tax returns

for preceding tax years.

(B) If the department determines that the taxpayer is eligible to

receive the credit provided under this subsection but has not claimed

such credit on his or her return, the department shall compute the

taxpayer's liability and allow the credit, and, if applicable, issue any

refund for the allowable credit amount provided under this subsection.

Any refund paid pursuant to this subparagraph shall be deemed to be a

refund of an overpayment of tax as provided in section six hundred

eighty-six of this article, provided, however, that no interest shall be

paid thereon.

(7) Reports. The commissioner shall prepare a preliminary written

report after July thirty-first and a final written report after December

thirty-first of each calendar year, which shall contain statistical

information regarding the credits granted on or before such dates under

this subsection, and under any local law enacted pursuant to subsection

(f) of section thirteen hundred ten of this chapter, during such

calendar year. Copies of these reports shall be submitted by such

commissioner to the governor, the temporary president of the senate, the

speaker of the assembly, the chairman of the senate finance committee

and the chairman of the assembly ways and means committee within sixty

days of July thirty-first with respect to the preliminary report, and

within forty-five days of December thirty-first with respect to the

final report, and copies of such reports with respect to credits under

any local law enacted pursuant to subsection (f) of section thirteen

hundred ten of this chapter shall be submitted in addition to the mayor

and the speaker of the council of the city where such a local law is in

effect. Such reports shall contain, but need not be limited to, the

number of credits and the average amount of such credits allowed; and of

those, the number of credits and the average amount of such credits

allowed to taxpayers in each county; and of those, the number of credits

and the average amount of such credits allowed to taxpayers whose earned

income falls within ranges, determined by the commissioner, of not more

than four thousand dollars; and of those, the number of credits and the

average amount of such credits allowed to taxpayers who file under the

different statuses set forth in subsections (a), (b) and (c) of section

six hundred one of this part; and of those, the number of credits and

the average amount of such credits allowed to taxpayers whose number of

qualifying children falls within the categories set forth in such

section thirty-two of the internal revenue code.

(8) For tax year two thousand twenty-one, the commissioner shall issue

a payment of a supplemental earned income tax credit to resident

taxpayers in the amount of twenty-five percent of the earned income tax

credit calculated and allowed pursuant to this subsection. Such payment

will be allowed to resident taxpayers who timely filed returns pursuant

to section six hundred fifty-one of this article, determined with regard

to extensions pursuant to section six hundred fifty-seven of this

article. Provided, however, that no payment shall be issued if it is

less than twenty-five dollars.

(d-1) Enhanced earned income tax credit. (1) A taxpayer described in

paragraph two of this subsection shall be allowed a credit equal to the

greater of:

(A) twenty percent of the amount of the earned income tax credit that

would have been allowed to the taxpayer under section 32 of the internal

revenue code, absent the application of section 32(b)(2)(B) of such

code, if the child or children described in subparagraph (C) of

paragraph two of this subsection satisfied the requirements for a

qualifying child set forth in section 32(c)(3) of such code, provided

however, that the credit shall be calculated as if the taxpayer had only

one child; or

(B) the product of two and one-half and the amount of the earned

income tax credit that would have been allowed to the taxpayer under

section 32 of the internal revenue code, if the taxpayer satisfied the

eligibility requirements set forth in section 32(c)(1)(A)(ii) of such

code.

(2) To be allowed a credit under this subsection, a taxpayer must

satisfy all of the following qualifications.

(A) The taxpayer must be a resident taxpayer.

(B) The taxpayer must have attained the age of eighteen.

(C) The taxpayer must be the parent of a minor child or children with

whom the taxpayer does not reside.

(D) The taxpayer must have an order requiring him or her to make child

support payments, which are payable through a support collection unit

established pursuant to section one hundred eleven-h of the social

services law, which order must have been in effect for at least one-half

of the taxable year.

(E) The taxpayer must have paid an amount in child support in the

taxable year at least equal to the amount of current child support due

during the taxable year for every order requiring him or her to make

child support payments.

(3) If the amount of the credit allowed under this subsection shall

exceed the taxpayer's tax for such year, the excess shall be treated as

an overpayment of tax to be credited or refunded in accordance with the

provisions of section six hundred eighty-six of this article, provided,

however, that no interest shall be paid thereon.

(4) No claim for credit under this subsection shall be allowed unless

the department has verified, from information provided by the office of

temporary and disability assistance, that a taxpayer has satisfied the

qualifications set forth in subparagraphs (C), (D) and (E) of paragraph

two of this subsection. The office of temporary and disability

assistance shall provide to the department by January fifteenth of each

year information applicable for the immediately preceding tax year

necessary for the department to make such verification. Such information

shall be provided in the manner and form agreed upon by the department

and such office. If a taxpayer's claim for a credit under this

subsection is disallowed because the taxpayer has not satisfied the

qualifications set forth in subparagraphs (C), (D) and (E) of paragraph

two of this subsection, the taxpayer may request a review of those

qualifications by the support collection unit established pursuant to

section one hundred eleven-h of the social services law through which

the child support payments were payable. The support collection unit

shall transmit the result of that review to the office of temporary and

disability assistance on a form developed by such office. Such office

shall then transmit such result to the department in a manner agreed

upon by the department and such office.

(5) A taxpayer shall not be allowed multiple credits under this

subsection for a taxable year even if such taxpayer has more than one

child or has more than one order requiring him or her to make child

support payments.

(6) If a credit is allowed under this subsection and the taxpayer is

also allowed a credit under subsection (d) of this section, the taxpayer

shall only be allowed to claim one credit.

(7) In the report prepared pursuant to paragraph seven of subsection

(d) of this section, the commissioner shall include statistical

information concerning the credit allowed pursuant to this subsection.

Such information shall be limited to the number of credits and the

average amount of such credits allowed; and of those, the number of

credits and the average amounts of such credits allowed to taxpayers in

each county.

(8) In a report prepared by the commissioner and submitted to the

office of temporary and disability assistance, the department shall

include information concerning the credit allowed pursuant to this

subsection indicating whether or not taxpayers identified by the office

of temporary and disability assistance pursuant to paragraph four of

this subsection filed an income tax return, filed for a credit, received

a credit, and the amount of any such credit. Any individual taxpayer

information furnished by the department pursuant to this section shall

be deemed confidential and may not be disclosed to any third party and

the office of temporary and disability assistance is prohibited from

using the individual taxpayer information except for the purpose of

analyzing the impact of the credit and its effect on child support

payments.

(9) For tax year two thousand twenty-one, the commissioner shall issue

a payment of a supplemental enhanced earned income tax credit in the

amount of twenty-five percent of the enhanced earned income tax credit

calculated and allowed pursuant to this subsection. Such payment will be

allowed to taxpayers who timely filed returns pursuant to section six

hundred fifty-one of this article, determined with regard to extensions

pursuant to section six hundred fifty-seven of this article. Provided,

however, that no payment shall be issued if it is less than twenty-five

dollars.

(e) Real property tax circuit breaker credit. (1) For purposes of this

subsection:

(A) (i) For taxable years beginning before January first, two thousand

twenty-five, "qualified taxpayer" means a resident individual of the

state who has occupied the same residence for six months or more of the

taxable year, and is required or chooses to file a return under this

article.

(ii) For taxable years beginning on or after January first, two

thousand twenty-five, "qualified taxpayer" means a resident individual

of the state who has occupied the same residence for six months or more

of the taxable year, and has qualifying real property taxes as defined

in clause (ii) of subparagraph (E) of this paragraph, or a real property

tax equivalent as defined in clause (ii) of subparagraph (F) of this

paragraph, in excess of the following percentages of federal adjusted

gross income:

If federal adjusted gross income for the Percentage

taxable year is:

$3,000 or less 3 1/2

Over $3,000 but not over $5,000 4

Over $5,000 but not over $7,000 4 1/2

Over $7,000 but not over $9,000 5

Over $9,000 but not over $11,000 5 1/2

Over $11,000 but not over $14,000 6

Over $14,000 but not over $18,000 6 1/2

(B) "Household" or "members of the household" means a qualified

taxpayer and all other persons, not necessarily related, who have the

same residence and share its furnishings, facilities and accommodations.

Such terms shall not include a tenant, subtenant, roomer or boarder who

is not related to the qualified taxpayer in any degree specified in

subparagraphs (A) through (G) of paragraph two of subsection (d) of

section one hundred fifty-two of the internal revenue code. Provided,

however, no person may be a member of more than one household at one

time.

(c) "Household gross income" means the aggregate adjusted gross income

of all members of the household for the taxable year as reported for

federal income tax purposes, or which would be reported as adjusted

gross income if a federal income tax return were required to be filed,

with the modifications in subsection (b) of section six hundred twelve

but without the modifications in subsection (c) of such section, plus

any portion of the gain from the sale or exchange of property otherwise

excluded from such amount; earned income from sources without the United

States excludable from federal gross income by section nine hundred

eleven of the internal revenue code; support money not included in

adjusted gross income; nontaxable strike benefits; supplemental security

income payments; the gross amount of any pension or annuity benefits to

the extent not included in such adjusted gross income (including, but

not limited to, railroad retirement benefits and all payments received

under the federal social security act and veterans' disability

pensions); nontaxable interest received from the state of New York, its

agencies, instrumentalities, public corporations, or political

subdivisions (including a public corporation created pursuant to

agreement or compact with another state or Canada); workers'

compensation; the gross amount of "loss-of-time" insurance; and the

amount of cash public assistance and relief, other than medical

assistance for the needy, paid to or for the benefit of the qualified

taxpayer or members of his household. Household gross income shall not

include surplus foods or other relief in kind or payments made to

individuals because of their status as victims of Nazi persecution as

defined in P.L. 103-286. Provided, further, household gross income shall

only include all such income received by all members of the household

while members of such household.

(D) "Residence" means a dwelling in this state, whether owned or

rented, and so much of the land abutting it, not exceeding one acre, as

is reasonably necessary for use of the dwelling as a home, and may

consist of a part of a multi-dwelling or multi-purpose building

including a cooperative or condominium, and rental units within a single

dwelling. Residence includes a trailer or mobile home, used exclusively

for residential purposes and defined as real property pursuant to

paragraph (g) of subdivision twelve of section one hundred two of the

real property tax law.

(E) (i) For taxable years beginning before January first, two thousand

twenty-five, "qualifying real property taxes" means all real property

taxes, special ad valorem levies and special assessments, exclusive of

penalties and interest, levied on the residence of a qualified taxpayer

and paid during the taxable year less the credit claimed under

subsection (n-1) of this section. In addition, for taxable years

beginning after December thirty-first, nineteen hundred eighty-four, a

qualified taxpayer may elect to include any additional amount that would

have been levied in the absence of an exemption from real property

taxation pursuant to section four hundred sixty-seven of the real

property tax law. If tenant-stockholders in a cooperative housing

corporation have met the requirements of section two hundred sixteen of

the internal revenue code by which they are allowed a deduction for real

estate taxes, the amount of taxes so allowable, or which would be

allowable if the taxpayer had filed returns on a cash basis, shall be

qualifying real property taxes. If a residence is owned by two or more

individuals as joint tenants or tenants in common, and one or more than

one individual is not a member of the household, qualifying real

property taxes is that part of such taxes on the residence which

reflects the ownership percentage of the qualified taxpayer and members

of their household. If a residence is an integral part of a larger unit,

qualifying real property taxes shall be limited to that amount of such

taxes paid as may be reasonably apportioned to such residence. If a

household owns and occupies two or more residences during different

periods in the same taxable year, qualifying real property taxes shall

be the sum of the prorated qualifying real property taxes attributable

to the household during the periods such household occupies each of such

residences. If the household owns and occupies a residence for part of

the taxable year and rents a residence for part of the same taxable

year, it may include both the proration of qualifying real property

taxes on the residence owned and the real property tax equivalent with

respect to the months the residence is rented. Provided, however, for

purposes of the credit allowed under this subsection, qualifying real

property taxes may be included by a qualified taxpayer only to the

extent that such taxpayer or the spouse of such taxpayer occupying such

residence for six months or more of the taxable year owns or has owned

the residence and paid such taxes.

(ii) For taxable years beginning on or after January first, two

thousand twenty-five, "qualifying real property taxes" means all real

property taxes, special ad valorem levies and special assessments,

exclusive of penalties and interest, levied on the residence of a

qualified taxpayer and paid during the taxable year less any school tax

relief credit allowed under subsection (eee) of this section. A

qualified taxpayer may elect to include any additional amount that would

have been levied in the absence of an exemption from real property

taxation pursuant to section four hundred sixty-seven of the real

property tax law. If tenant-stockholders in a cooperative housing

corporation have met the requirements of section two hundred sixteen of

the internal revenue code by which they are allowed a deduction for real

estate taxes, the amount of taxes so allowable, or which would be

allowable if the taxpayer had filed returns on a cash basis, shall be

qualifying real property taxes. If a residence is owned by two or more

individuals as joint tenants or tenants in common, qualifying real

property taxes is that part of such taxes on the residence which

reflects the ownership percentage of the qualified taxpayer. If a

residence is an integral part of a larger unit, qualifying real property

taxes shall be limited to that amount of the taxes paid as may be

reasonably apportioned to such residence. If a qualified taxpayer owns

and occupies two or more residences during different periods in the same

taxable year, qualifying real property taxes shall be the sum of the

prorated qualifying real property taxes attributable to the qualified

taxpayer during the periods the taxpayer occupies each of the

residences. If a qualified taxpayer owns and occupies a residence for

part of the taxable year and rents a residence for part of the same

taxable year, the taxpayer may include both the proration of qualifying

real property taxes on the residence owned and the real property tax

equivalent with respect to the months the residence is rented. Provided,

however, for purposes of the credit allowed under this subsection,

qualifying real property taxes may be included by a qualified taxpayer

only to the extent that such taxpayer or the spouse of such taxpayer

occupying such residence for six months or more of the taxable year owns

or has owned the residence and paid such taxes.

(F) (i) For taxable years beginning before January first, two thousand

twenty-five, "real property tax equivalent" means twenty-five percent of

the adjusted rent actually paid in the taxable year by a household

solely for the right of occupancy of its New York residence for the

taxable year. If (I) a residence is rented to two or more individuals as

cotenants, or such individuals share in the payment of a single rent for

the right of occupancy of such residence, and (II) each of such

individuals is a member of a different household, one or more of which

individuals shares such residence, real property tax equivalent is that

portion of twenty-five percent of the adjusted rent paid in the taxable

year which reflects that portion of the rent attributable to the

qualified taxpayer and the members of their household.

(ii) For taxable years beginning on or after January first, two

thousand twenty-five, "real property tax equivalent" means twenty-five

percent of the adjusted rent actually paid in the taxable year by a

qualified taxpayer solely for the right of occupancy of their New York

residence for the taxable year.

(G) "Adjusted rent" means rental paid for the right of occupancy of a

residence, excluding charges for heat, gas, electricity, furnishings and

board. Where charges for heat, gas, electricity, furnishing or board are

included in rental but where such charges and the amount thereof are not

separately set forth in a written rental agreement, for purposes of

determining adjusted rent the qualified taxpayer shall reduce rental

paid as follows:

(i) For heat, or heat and gas, deduct fifteen percent of rental paid.

(ii) For heat, gas and electricity, deduct twenty percent of rental

paid.

(iii) For heat, gas, electricity and furnishings, deduct twenty-five

percent of rental paid.

(iv) For heat, gas, electricity, furnishings and board, deduct fifty

percent of rental paid.

If the tax commission determines that the adjusted rent shown on the

return is excessive, the tax commission may reduce such rent, for

purposes of the computation of the credit, to an amount substantially

equivalent to rent for a comparable accommodation.

(2) (A) For taxable years beginning before January first, two thousand

twenty-five, a qualified taxpayer shall be allowed a credit as provided

in subparagraph (A) of paragraph three of this subsection against the

taxes imposed by this article reduced by the credits permitted by this

article. If the credit exceeds the tax as so reduced for such year under

this article the qualified taxpayer may receive, and the comptroller,

subject to a certificate of the commissioner, shall pay as an

overpayment, without interest, any excess between such tax as so reduced

and the amount of the credit. If a qualified taxpayer is not required to

file a return pursuant to section six hundred fifty-one, a qualified

taxpayer may nevertheless receive and the comptroller, subject to a

certificate of the commissioner, shall pay as an overpayment the full

amount of the credit, without interest.

(B) For taxable years beginning on or after January first, two

thousand twenty-five, a qualified taxpayer shall be allowed a credit

against the tax imposed by this article as provided for in subparagraph

(B) of paragraph three of this subsection. If the amount of the credit

allowed under this subsection exceeds the taxpayer's tax for the taxable

year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

shall be paid thereon. If a taxpayer is not required to file a return

pursuant to section six hundred fifty-one, a qualified taxpayer may

nevertheless receive and the comptroller, subject to a certificate of

the commissioner, shall pay as an overpayment the full amount of the

credit, without interest.

(3) Determination of credit. (A) For taxable years beginning before

January first, two thousand twenty-five, (i) for qualified taxpayers who

have attained the age of sixty-five years before the beginning of or

during the taxable year the amount of the credit allowable under this

subsection shall be fifty percent, or in the case of a qualified

taxpayer who has elected to include an additional amount pursuant to

subparagraph (E) of paragraph one of this subsection, twenty-five

percent, of the excess of real property taxes or the excess of real

property tax equivalent determined as follows:

Excess real property taxes are the

excess of real property tax equiv-

alent or the excess of qualifying

real property taxes over the fo-

If household gross income for the llowing percentage of household

taxable year is: gross income:

----------------------------------- -----------------------------------

$3,000 or less 3 1/2

Over $3,000 but not over $5,000 4

Over $5,000 but not over $7,000 4 1/2

Over $7,000 but not over $9,000 5

Over $9,000 but not over $11,000 5 1/2

Over $11,000 but not over $14,000 6

Over $14,000 but not over $18,000 6 1/2

Notwithstanding the foregoing provisions, the maximum credit

determined under this clause may not exceed the amount determined in

accordance with the following table:

If household gross income for the

taxable year is: The maximum credit is:

----------------------------------- -----------------------------------

$1,000 or less $375

Over $1,000 but not over $2,000 $358

Over $2,000 but not over $3,000 $341

Over $3,000 but not over $4,000 $324

Over $4,000 but not over $5,000 $307

Over $5,000 but not over $6,000 $290

Over $6,000 but not over $7,000 $273

Over $7,000 but not over $8,000 $256

Over $8,000 but not over $9,000 $239

Over $9,000 but not over $10,000 $222

Over $10,000 but not over $11,000 $205

Over $11,000 but not over $12,000 $188

Over $12,000 but not over $13,000 $171

Over $13,000 but not over $14,000 $154

Over $14,000 but not over $15,000 $137

Over $15,000 but not over $16,000 $120

Over $16,000 but not over $17,000 $103

Over $17,000 but not over $18,000 $ 86

(ii) for all other qualified taxpayers the amount of the credit

allowable under this subsection shall be fifty percent of excess real

property taxes or the excess of the real property tax equivalent

determined as follows:

Excess real property taxes are the

excess of real property tax equiv-

alent or the excess of qualifying

real property taxes over the

If household gross income for the following percentage of household

taxable year is: gross income:

----------------------------------- -----------------------------------

$3,000 or less 3 1/2

Over $3,000 but not over $5,000 4

Over $5,000 but not over $7,000 4 1/2

Over $7,000 but not over $9,000 5

Over $9,000 but not over $11,000 5 1/2

Over $11,000 but not over $14,000 6

Over $14,000 but not over $18,000 6 1/2

Notwithstanding the foregoing provisions, the maximum credit

determined under this clause may not exceed the amount determined in

accordance with the following table:

If household gross income for the

taxable year is: The maximum credit is:

----------------------------------- -----------------------------------

$1,000 or less $75

Over $1,000 but not over $2,000 $73

Over $2,000 but not over $3,000 $71

Over $3,000 but not over $4,000 $69

Over $4,000 but not over $5,000 $67

Over $5,000 but not over $6,000 $65

Over $6,000 but not over $7,000 $63

Over $7,000 but not over $8,000 $61

Over $8,000 but not over $9,000 $59

Over $9,000 but not over $10,000 $57

Over $10,000 but not over $11,000 $55

Over $11,000 but not over $12,000 $53

Over $12,000 but not over $13,000 $51

Over $13,000 but not over $14,000 $49

Over $14,000 but not over $15,000 $47

Over $15,000 but not over $16,000 $45

Over $16,000 but not over $17,000 $43

Over $17,000 but not over $18,000 $41

(B) For taxable years beginning on or after January first, two

thousand twenty-five, (i) for qualified taxpayers who have attained the

age of sixty-five years before the beginning of or during the taxable

year or are claiming dependents as defined under section one hundred

fifty-two of the internal revenue code who have attained the age of

sixty-five years before the beginning of or during the taxable year, the

credit allowable under this subsection shall be:

If the taxpayer's federal adjusted gross

income for the taxable year is: The credit amount is:

$3,000 or less $375

Over $3,000 but not over $5,000 $330

Over $5,000 but not over $7,000 $300

Over $7,000 but not over $9,000 $260

Over $9,000 but not over $11,000 $230

Over $11,000 but not over $14,000 $200

Over $14,000 but not over $18,000 $150

(ii) for all other taxpayers the amount of the credit allowable under

this subsection shall be:

If the taxpayer's federal adjusted gross

income for the taxable year is: The credit amount is:

$5,000 or less $75

Over $5,000 but not over $9,000 $70

Over $9,000 but not over $14,000 $60

Over $14,000 but not over $18,000 $50

(4) If a qualified taxpayer occupies a residence for a period of less

than twelve months during the taxable year or occupies two or more

residences during different periods in such taxable year, the credit

allowed pursuant to this subsection shall be computed in such manner as

the commissioner may prescribe in order to properly reflect the credit

or portion thereof attributable to such residence or residences and such

period or periods.

(6) (A) For taxable years beginning before January first, two thousand

twenty-five, only one credit per household and per qualified taxpayer

shall be allowed per taxable year under this subsection. Where two or

more members of a household are able to meet the qualifications for a

qualified taxpayer, the credit shall be equally divided between or among

such individuals unless such individuals file with the commissioner a

written agreement among such individuals setting forth a different

division. Where two or more members of a household are able to meet the

qualifications of a qualified taxpayer and one of them is sixty-five

years of age or more, the credit which may be taken shall be the credit

applicable to individuals who have attained the age of sixty-five years.

(B) For taxable years beginning on or after January first, two

thousand twenty-five, only one credit per qualified taxpayer shall be

allowed per taxable year under this subsection.

(C) Provided, however, where a joint income tax return has been filed

pursuant to the provisions of section six hundred fifty-one by a

qualified taxpayer and their spouse (or where both spouses are qualified

taxpayers and have filed such joint return), the credit, or the portion

of the credit if divided, to which the spouses are entitled shall be

applied against the tax of both spouses and any overpayment shall be

made to both spouses.

(D) Where any return required to be filed pursuant to the provisions

of section six hundred fifty-one is combined with any return of tax

imposed pursuant to the authority of this chapter or any other law if

such tax is administered by the commissioner, the credit or the portion

of the credit if divided, allowed to the qualified taxpayer may be

applied by the commissioner toward any liability for the aforementioned

taxes.

(7) No credit shall be granted under this subsection:

(A) (i) For taxable years beginning before January first, two thousand

twenty-five, if household gross income for the taxable year exceeds

eighteen thousand dollars.

(ii) For taxable years beginning on or after January first, two

thousand twenty-five, if the taxpayer's federal adjusted gross income

exceeds eighteen thousand dollars.

(B) To a property owner unless: (i) the property is used for

residential purposes, (ii) not more than twenty percent of the rental

income, if any, from the property is from rental for nonresidential

purposes and (iii) the property is occupied as a residence in whole or

in part by one or more of the owners of the property.

(C) To a property owner who owns real property, the full value of

which exceeds eighty-five thousand dollars.

(D) To a tenant if the adjusted rent for the residence exceeds four

hundred fifty dollars per month on average.

(E) To an individual with respect to whom a deduction under subsection

(c) of section one hundred fifty-one of the internal revenue code is

allowable to another taxpayer for the taxable year.

(F) With respect to a residence that is wholly exempted from real

property taxation.

(G) To an individual who is not a resident individual of the state for

the entire taxable year.

(8) The right to claim a credit or the portion of a credit, where such

credit has been divided under this subsection, shall be personal to the

qualified taxpayer and shall not survive his death, but such right may

be exercised on behalf of a claimant by his legal guardian or attorney

in fact during his lifetime.

(9) Returns. If a qualified taxpayer is not required to file a return

pursuant to section six hundred fifty-one, a claim for a credit may be

taken on a return filed with the commissioner, or a form prescribed by

the commissioner, within three years from the time it would have been

required that a return be filed pursuant to such section had the

qualified taxpayer had a taxable year ending on December thirty-first.

Returns under this paragraph shall be in such form as shall be

prescribed by the commissioner, which shall make available such forms

and instructions for filing such returns.

(10) Proof of claim. The commissioner may require a qualified taxpayer

to furnish the following information in support of their claim for

credit under this subsection: federal adjusted gross income, household

gross income, rent paid, name and address of owner or managing agent of

the property rented, real property taxes levied or that would have been

levied in the absence of an exemption from real property tax pursuant to

section four hundred sixty-seven of the real property tax law, the names

of members of the household and other qualifying taxpayers occupying the

same residence and their identifying numbers including social security

numbers, household gross income, size and nature of property claimed as

residence and all other information which may be required by the

commissioner to determine the credit.

(11) Administration. The provisions of this article, including the

provisions of section six hundred fifty-three, six hundred fifty-eight,

and six hundred fifty-nine and the provisions of part six of this

article relating to procedure and administration, including the judicial

review of the decisions of the tax commission, except so much of section

six hundred eighty-seven which permits a claim for credit or refund to

be filed after the period provided for in paragraph nine of this

subsection and except sections six hundred fifty-seven, six hundred

eighty-eight and six hundred ninety-six, shall apply to the provisions

of this subsection in the same manner and with the same force and effect

as if the language of those provisions had been incorporated in full

into this subsection and had expressly referred to the credit allowed or

returns filed under this subsection, except to the extent that any such

provision is either inconsistent with a provision of this subsection or

is not relevant to this subsection. As used in such sections and such

part, the term "taxpayer" shall include a qualified taxpayer under this

subsection and, notwithstanding the provisions of subsection (e) of

section six hundred ninety-seven, where a qualified taxpayer has

protested the denial of a claim for credit under this subsection and the

time to file a petition for redetermination of a deficiency or for

refund has not expired, he shall, subject to such conditions as may be

set by the tax commission, receive such information (A) which is

contained in any return filed under this article by a member of his

household for the taxable year for which the credit is claimed, and (B)

which the tax commission finds is relevant and material to the issue of

whether such claim was properly denied. The tax commission shall have

the authority to promulgate such rules and regulations as may be

necessary for the processing, determination and granting of credits and

refunds under this subsection.

(13) Notwithstanding any other provision of this article, the credit

allowed under this subsection shall be determined after the

determination and application of any other credits permitted under the

provisions of this article.

(14) (A) For calendar years before two thousand twenty-five, the

commissioner shall prepare a preliminary written report after July

thirty-first and a final written report after December thirty-first of

each calendar year, which shall contain statistical information

regarding the credits granted on or before such dates under this

subsection during such calendar year. Copies of these reports shall be

submitted by the commissioner to the governor, the temporary president

of the senate, the speaker of the assembly, the chair of the senate

finance committee and the chair of the assembly ways and means committee

within sixty days of July thirty-first with respect to the preliminary

report, and within forty-five days of December thirty-first with respect

to the final report. Such reports shall contain, but need not be limited

to, the number of credits and the average amount of such credits

allowed; and of those, the number of credits and the average amount of

such credits allowed to qualified taxpayers in each county; and of

those, the number of credits and the average amount of such credits

allowed to qualified taxpayers whose household gross income falls within

each of the household gross income ranges set forth in paragraph three

of this subsection; and of those, the number of credits and the average

amount of such credits allowed to qualified taxpayers whose credit

amount falls within credit amount ranges set forth in twenty-five dollar

increments.

(B) For calendar years beginning with two thousand twenty-five, the

commissioner of taxation and finance shall prepare an annual report by

September first of each such year, which shall contain statistical

information regarding the credits claimed under this subsection for the

second preceding taxable year. Copies of such report shall be submitted

by the commissioner to the governor, the temporary president of the

senate, the speaker of the assembly, the chair of the senate finance

committee and the chair of the assembly ways and means committee. Such

report shall contain, but need not be limited to, the number of credits

and the amount of such credits allowed; and of those, the number of

credits and the amount of such credits allowed to qualified taxpayers in

each county; and of those, the number of credits and the amount of such

credits allowed to qualified taxpayers whose federal adjusted gross

income falls within each of the federal adjusted gross income ranges set

forth in paragraph three of this subsection.

(e-1) Volunteer firefighters' and ambulance workers' credit. (1) For

taxable years beginning on and after January first, two thousand seven,

a resident taxpayer who serves as an active volunteer firefighter as

defined in subdivision one of section two hundred fifteen of the general

municipal law or as a volunteer ambulance worker as defined in

subdivision fourteen of section two hundred nineteen-k of the general

municipal law shall be allowed a credit against the tax imposed by this

article equal to two hundred dollars. In order to receive this credit a

volunteer firefighter or volunteer ambulance worker must have been

active for the entire taxable year for which the credit is sought.

(2) If a taxpayer receives a real property tax exemption relating to

such service under title two of article four of the real property tax

law, such taxpayer shall not be eligible for this credit; provided,

however (A) if the taxpayer receives such real property tax exemption in

the two thousand seven taxable year as a result of making application

therefor in a prior year or (B) if the taxpayer notifies his or her

assessor in writing by December thirty-first, two thousand seven of the

taxpayer's intent to discontinue such real property tax exemption by not

re-applying for such real property tax exemption by the next taxable

status date, such taxpayer shall be eligible for this credit for the two

thousand seven taxable year.

(3) In the case of a husband and wife who file a joint return and who

both individually qualify for the credit under this subsection, the

amount of the credit allowed shall be four hundred dollars.

(4) If the amount of the credit allowed under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, the excess

shall be treated as an overpayment of tax to be credited or refunded in

accordance with the provisions of section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon.

(e-2) Real property tax relief credit. (1) For purposes of this

subsection:

(A) "Qualified taxpayer" means a resident individual of the state who

owned and primarily resided for six months or more of the taxable year

in real property that either received the STAR exemption authorized by

section four hundred twenty-five of the real property tax law or that

qualified the taxpayer to receive the school tax relief credit

authorized by subsection (eee) of this section.

(B) "Qualified gross income" means the adjusted gross income of the

qualified taxpayer for the taxable year for federal income tax purposes

and, for taxable year two thousand twenty-one computed without regard to

the last sentence of subdivision (a) of section six hundred seven of

this article. In computing qualified gross income, the net amount of

loss reported on Federal Schedule C, D, E, or F shall not exceed three

thousand dollars per schedule. In addition, the net amount of any other

separate category of loss shall not exceed three thousand dollars. The

aggregate amount of all losses included in computing qualified gross

income shall not exceed fifteen thousand dollars.

(C) "Residence" means a dwelling in this state owned by the taxpayer

and used by the taxpayer as his or her primary residence, and so much of

the land abutting it, not exceeding one acre, as is reasonably necessary

for use of the dwelling as a home, and may consist of a part of a

multi-dwelling or multi-purpose building including a cooperative or

condominium. Residence includes a trailer or mobile home, used

exclusively for residential purposes and defined as real property

pursuant to paragraph (g) of subdivision twelve of section one hundred

two of the real property tax law.

(D) "Qualifying real property taxes" means all real property taxes,

special ad valorem levies and special assessments, exclusive of

penalties and interest, levied by a taxing jurisdiction on the residence

owned and occupied by a qualified taxpayer and paid by the qualified

taxpayer during the taxable year, provided that to the extent the total

amount of real property taxes so paid includes school district taxes,

the amount of the school tax relief (STAR) credit claimed pursuant to

subsection (eee) of this section, if any, shall be deducted from such

amount.

A qualified taxpayer may elect to include any additional amount that

would have been levied by a taxing jurisdiction and paid by the

qualified taxpayer in the absence of an exemption from real property

taxation pursuant to section four hundred sixty-seven of the real

property tax law. If tenant-stockholders in a cooperative housing

corporation have met the requirements of section two hundred sixteen of

the internal revenue code by which they are allowed a deduction for real

estate taxes, the amount of taxes so allowable, or which would be

allowable if the taxpayer had filed returns on a cash basis, shall be

qualifying real property taxes. If a residence is an integral part of a

larger unit, qualifying real property taxes shall be limited to that

amount of such taxes paid as may be reasonably apportioned to such

residence. If a taxpayer owned and occupied two residences in the state

during different periods in the same taxable year, qualifying real

property taxes shall be the sum of the prorated qualifying real property

taxes attributable to the taxpayer during the periods such taxpayer

occupied each of such residences. A taxpayer who owned and occupied a

residence in the state for part of the taxable year and rented a

residence in the state for part of the same taxable year, may include

the proration of qualifying real property taxes on the residence owned.

Provided, however, for purposes of the credit allowed under this

subsection, qualifying real property taxes may be included by a

qualified taxpayer only to the extent that such taxpayer or the spouse

of such taxpayer occupied such residence for one hundred eighty-three

days or more of the taxable year, owned the residence and paid such

taxes.

(E) "Excess real property tax" means the excess of qualifying real

property taxes over six percent of qualified gross income.

(2) For tax years beginning on or after January first, two thousand

twenty-one and before January first, two thousand twenty-four, a

qualified taxpayer shall be allowed a credit as provided in paragraph

three of this subsection against the taxes imposed by this article. If

the credit exceeds the tax for such year under this article, the excess

shall be treated as an overpayment, to be credited or refunded, without

interest.

(3) Determination of credit. The credit amount allowed under this

subsection shall be the product of the excess real property tax and the

applicable percentage of the excess real property tax, calculated as

follows:

(A) For qualified taxpayers whose qualified gross income is

seventy-five thousand dollars or less, the applicable percentage shall

be fourteen percent.

(B) For qualified taxpayers whose qualified gross income is greater

than seventy-five thousand dollars but less than or equal to one hundred

fifty thousand dollars, the applicable percentage shall be the

difference between (i) fourteen percent and (ii) five percent multiplied

by a fraction, the numerator of which is the difference between the

qualified taxpayer's qualified gross income as defined by this

subsection and seventy-five thousand dollars, and the denominator of

which is seventy-five thousand dollars.

(C) For qualified taxpayers whose qualified gross income is greater

than one hundred fifty thousand dollars but less than or equal to two

hundred fifty thousand dollars, the applicable percentage shall be the

difference between (i) nine percent and (ii) six percent multiplied by a

fraction, the numerator of which is the difference between the qualified

taxpayer's qualified gross income and one hundred fifty thousand

dollars, and the denominator of which is one hundred thousand dollars.

(4) No credit shall be allowed under this subsection if the amount

determined pursuant to paragraph three is less than two hundred fifty

dollars, provided further that if the amount determined pursuant to

paragraph three is in excess of three hundred fifty dollars the taxpayer

shall be allowed a credit of three hundred fifty dollars.

(5) The commissioner may prescribe that the credit under this

subsection shall be determined in whole or in part by the use of tables

prescribed by such commissioner. Such tables shall set forth the credit

to the nearest dollar.

(6) No credit shall be granted under this subsection:

(A) To a property owner if qualified gross income for the taxable year

exceeds two hundred fifty thousand dollars.

(B) To a property owner unless: (i) the property is used for

residential purposes; (ii) not more than twenty percent of the rental

income, if any, from the property is from rental for nonresidential

purposes; and (iii) the property is occupied as a residence in whole or

in part by one or more of the owners of the property.

(C) To an individual with respect to whom a deduction under subsection

(c) of section one hundred fifty-one of the internal revenue code is

allowable to another taxpayer for the taxable year.

(D) With respect to a residence that is wholly exempted from real

property taxation.

(E) To an individual who is not a resident individual of the state for

the entire taxable year.

(7) In the case of a taxpayer who has itemized deductions from federal

adjusted gross income, and whose federal itemized deductions include an

amount for real estate taxes paid, the New York itemized deduction

otherwise allowable under section six hundred fifteen of this chapter

shall be reduced by the amount of the credit claimed under this

subsection.

(f) Credit for the special additional mortgage recording tax. (1) For

taxable years beginning before nineteen hundred eighty-eight, a taxpayer

shall be allowed a credit, to be credited against the tax imposed by

this article, after allowance of any other credit provided under this

section and any credits permitted under sections six hundred twenty, six

hundred twenty-one and six hundred thirty-five of this article. The

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

mortgage recording tax paid by the taxpayer pursuant to the provisions

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

on mortgages recorded on and after January first, nineteen hundred

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

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

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

residential dwelling units, each dwelling unit having its own separate

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

the counties comprising the metropolitan commuter transportation

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

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

allowed with respect to a mortgage of real property principally improved

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

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

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

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

first, nineteen hundred eighty-seven.

(2) In no event shall the amount of the credit herein provided for be

allowed in excess of the taxpayer's tax for such year. However, if the

amount of credit otherwise allowable under this subsection for any

taxable year results in such excess amount, any amount of credit not

deductible in such taxable year may be carried over to the following

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

or years.

(3)(A) Notwithstanding the provisions of paragraphs one and two of

this subsection, for taxable years beginning after two thousand three, a

taxpayer shall be allowed a credit, to be credited against the tax

imposed by this article, equal to the amount of the special additional

mortgage recording tax paid by the taxpayer or, in the case of a

taxpayer who is a partner in a partnership, the partner's pro rata share

of the amount of the special additional mortgage recording tax paid by

the partnership, pursuant to the provisions of subdivision one-a of

section two hundred fifty-three of this chapter on mortgages recorded on

and after January first, two thousand four. Provided, however, no credit

shall be allowed with respect to a mortgage of real property principally

improved by one or more structures containing in the aggregate not more

than six residential dwelling units, each dwelling unit having its own

separate cooking facilities, where the real property is located in one

or more of the counties comprising the metropolitan commuter

transportation district and where the mortgage is recorded on or after

January first, two thousand four. Provided further, no credit shall be

allowed with respect to a mortgage of real property principally improved

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

residential dwelling units, each dwelling unit having its own separate

cooking facilities, where the real property is located in Erie county

and where the mortgage is recorded on or after January first, two

thousand four.

(B) If the amount of credit allowable under this paragraph for any

taxable year exceeds the taxpayer's tax for such year, any amount of

credit exceeding such tax may be carried over to the following year or

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

years. Provided further, such taxpayer may elect to treat such unused

amount of credit as an overpayment of tax to be credited or refunded in

accordance with the provisions of section six hundred eighty-six of this

article except that no interest shall be paid on such overpayment.

(g) Credit for solar and wind energy systems.

(1) A taxpayer shall be allowed a credit for taxable years beginning

on or after January first, nineteen hundred eighty-one and ending before

December thirty-first, nineteen hundred eighty-six against the tax

imposed by this article for the purchase and installation of a solar or

wind energy system by a taxpayer in his principal residence, if such

residence is located within the state. The amount of the credit shall be

fifty-five percent of the expenditure incurred in purchasing and

installing any such system or combination thereof, but not to exceed the

maximum credit of two thousand seven hundred fifty dollars.

(2) A solar or wind system is a system whose original use begins with

the taxpayer; which meets the eligibility criteria, if any, prescribed

by the department of taxation and finance; and which is:

(A) an active solar energy system which shall mean an arrangement or

combination of components designed to provide heating, cooling, hot

water or electricity through the process of collecting solar radiation,

converting it to another form of energy, storing the converted energy,

protecting against unnecessary dissipation and distributing the

converted energy, and which requires external mechanical power for

operation. This term shall not include pipes, controls, insulation or

other equipment which are part of the conventional heating, cooling,

insulation or electrical system of a building; nor shall it include any

expenditure allocable to a swimming pool used as a storage medium;

(B) a passive solar energy system, which shall mean a system which

relies upon the original or retrofitted design and elements of a

building to enhance the use of natural forces including solar radiation,

winds and night-time coolness to provide heating, cooling or hot water

through the process of collecting solar radiation, converting it to

another form of energy, storing the converted energy, protecting against

unnecessary dissipation and distributing the converted energy, and which

is not primarily dependent upon mechanical power for operation. This

term shall not include pipes, controls, insulation or other equipment

which are part of the conventional heating, cooling or insulation system

of the building; nor shall it include any expenditure allocable to a

swimming pool used as a storage medium; or

(C) a wind energy system, which shall mean an arrangement or

combination of components, including power conditioning equipment,

designed to provide electricity or mechanical energy through the process

of converting wind energy into mechanical and/or electric energy, and

storing or distributing such energy.

(3) Where a solar or wind energy system is purchased and installed by

a condominium management association or a cooperative housing

corporation, a taxpayer who is a member of the condominium management

association or who is a tenant-stockholder in the cooperative housing

corportion may for the purpose of this subsection claim a proportionate

share of the total expense as the expenditure for the purposes of the

credit attributable to his principal residence.

(4) Where a solar or wind system is purchased and installed in a

principal residence shared by two or more taxpayers the amount of the

credit allowable under this subsection for each such taxpayer shall be

prorated according to the percentage of the total expenditure for such

system contributed by each taxpayer.

(5) To the extent that a federal income tax credit shall apply to

expenditures eligible for a credit under this subsection, the credit

provided in this subsection shall be reduced so that the combined credit

shall not exceed fifty-five percent of such expenditures or six thousand

seven hundred fifty dollars, whichever is less.

(6) If the amount of credit allowable under this subsection shall

exceed the taxpayer's tax for such year, the excess may be carried over

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

tax for such year or years.

(7) If all or any part of the credit provided for under this

subsection was allowed or carried over from a prior taxable year or

years, a taxpayer shall reduce the allowable credit for additional

qualifying expenditures in a subsequent tax year by the amount of the

credit previously allowed or carried over; provided however that a

credit previously allowed or carried over from a prior taxable year or

years shall not be taken into account in determining the allowable

credit for the purchase and installation of a solar or wind energy

system in a subsequent principal residence.

(8) For the purpose of determining the amount of the actual

expenditure incurred in purchasing and installing a solar or wind energy

system, the amount of any federal, state or local grant received by the

taxpayer, which was used for the purchase and/or installation of such

system and which was not included in the gross income of the taxpayer,

shall not be taken into account.

(9) Notwithstanding any other provision of law, if a credit is allowed

under this subsection for a renewable energy system with respect to any

property, the increase in the basis of such property which would but for

this subsection result from such expenditure shall be reduced by the

amount of the credit allowed. When the sale or other disposition of such

property results in the nonrecognition of gain under section one

thousand thirty-four of the internal revenue code, a like reduction

shall be made to the basis of the new residence, if such residence is

located within the state.

(g-1) Solar energy system equipment credit. (1) General. An individual

taxpayer shall be allowed a credit against the tax imposed by this

article equal to twenty-five percent of qualified solar energy system

equipment expenditures, except as provided in subparagraph (D) of

paragraph two of this subsection. This credit shall not exceed three

thousand seven hundred fifty dollars for qualified solar energy

equipment placed in service before September first, two thousand six,

and five thousand dollars for qualified solar energy equipment placed in

service on or after September first, two thousand six.

(2) Qualified solar energy system equipment expenditures. (A) The term

"qualified solar energy system equipment expenditures" means

expenditures for:

(i) the purchase of solar energy system equipment which is installed

in connection with residential property which is (I) located in this

state and (II) which is used by the taxpayer as his or her principal

residence at the time the solar energy system equipment is placed in

service;

(ii) the lease of solar energy system equipment under a written

agreement that spans at least ten years where such equipment owned by a

person other than the taxpayer is installed in connection with

residential property which is (I) located in this state and (II) which

is used by the taxpayer as his or her principal residence at the time

the solar energy system equipment is placed in service; or

(iii) the purchase of power under a written agreement that spans at

least ten years whereunder the power purchased is generated by solar

energy system equipment owned by a person other than the taxpayer which

is installed in connection with residential property which is (I)

located in this state and (II) which is used by the taxpayer as his or

her principal residence at the time the solar energy system equipment is

placed in service.

(B) Such qualified expenditures shall include expenditures for

materials, labor costs properly allocable to on-site preparation,

assembly and original installation, architectural and engineering

services, and designs and plans directly related to the construction or

installation of the solar energy system equipment.

(C) Such qualified expenditures for the purchase of solar energy

system equipment shall not include interest or other finance charges.

(D) Such qualified expenditures for the lease of solar energy system

equipment or the purchase of power under an agreement described in

clauses (ii) or (iii) of subparagraph (A) of this paragraph shall

include an amount equal to all payments made during the taxable year

under such agreement. Provided, however, such credits shall only be

allowed for fourteen years after the first taxable year in which such

credit is allowed. Provided further, however, the twenty-five percent

limitation in paragraph one of this subsection shall only apply to the

total aggregate amount of all payments to be made pursuant to an

agreement referenced in clauses (ii) or (iii) of subparagraph (A) of

this paragraph, and shall not apply to individual payments made during a

taxable year under such agreement except to the extent such limitation

on an aggregate basis has been reached.

(3) Solar energy system equipment. The term "solar energy system

equipment" shall mean an arrangement or combination of components

utilizing solar radiation, which, when installed in a residence,

produces energy designed to provide heating, cooling, hot water or

electricity for use in such residence. Such arrangement or components

shall not include equipment connected to solar energy system equipment

that is a component of part or parts of a non-solar energy system or

which uses any sort of recreational facility or equipment as a storage

medium. Solar energy system equipment that generates electricity for use

in a residence must conform to applicable requirements set forth in

section sixty-six-j of the public service law. Provided, however, where

solar energy system equipment is purchased and installed by a

condominium management association or a cooperative housing corporation,

for purposes of this subsection only, the term "ten kilowatts" in such

section sixty-six-j shall be read as "fifty kilowatts."

(4) Multiple taxpayers. Where solar energy system equipment is

purchased and installed in a principal residence shared by two or more

taxpayers, the amount of the credit allowable under this subsection for

each such taxpayer shall be prorated according to the percentage of the

total expenditure for such solar energy system equipment contributed by

each taxpayer.

(5) Proportionate share. Where solar energy system equipment is

purchased and installed by a condominium management association or a

cooperative housing corporation, a taxpayer who is a member of the

condominium management association or who is a tenant-stockholder in the

cooperative housing corporation may for the purpose of this subsection

claim a proportionate share of the total expense as the expenditure for

the purposes of the credit attributable to his principal residence.

(6) Grants. For purposes of determining the amount of the expenditure

incurred in purchasing and installing solar energy system equipment, the

amount of any federal, state or local grant received by the taxpayer,

which was used for the purchase and/or installation of such equipment

and which was not included in the federal gross income of the taxpayer,

shall not be included in the amount of such expenditures.

(7) When credit allowed. The credit provided for herein shall be

allowed with respect to the taxable year, commencing after nineteen

hundred ninety-seven, in which the solar energy system equipment is

placed in service.

(8) Carryover of credit. If the amount of the credit, and carryovers

of such credit, allowable under this subsection for any taxable year

shall exceed the taxpayer's tax for such year, such excess amount may be

carried over to the five taxable years next following the taxable year

with respect to which the credit is allowed and may be deducted from the

taxpayer's tax for such year or years.

(g-2) Fuel cell electric generating equipment credit. (1) General.

For taxable years beginning before January first, two thousand nine, an

individual taxpayer shall be allowed a credit against the tax imposed by

this article equal to twenty percent of qualified fuel cell electric

generating equipment expenditures. This credit shall not exceed one

thousand five hundred dollars per generating unit with respect to any

taxable year. The credit provided for herein shall be allowed with

respect to the taxable year in which the fuel cell electric generating

equipment is placed in service.

(2) Qualified fuel cell electric generating equipment expenditures.

(A) Qualified fuel cell electric generating equipment expenditures are

the costs, incurred on or after July first, two thousand five,

associated with the purchase of on-site electricity generation systems

utilizing proton exchange membrane fuel cells, providing a rated

baseload capacity of no less than one kilowatt and no more than one

hundred kilowatts of electricity, which are located in this state at the

time the qualified fuel cell electric generating equipment is placed in

service.

(B) Qualified fuel cell electric generating equipment expenditures

shall also include costs, incurred on or after July first, two thousand

five, for materials, labor for on-site preparation, assembly and

original installation, engineering services, designs and plans directly

related to construction or installation and utility compliance costs.

(C) Such qualified expenditures shall not include interest or other

finance charges.

(3) Multiple taxpayers. Where fuel cell electric generating equipment

is purchased and installed in a principal residence shared by two or

more taxpayers, the amount of the credit allowable under this subsection

for each such taxpayer shall be prorated according to the percentage of

the total expenditure for such fuel cell electric generating equipment

contributed by each taxpayer.

(4) Grants. For purposes of determining the amount of the expenditure

incurred in purchasing and installing fuel cell electric generating

equipment, the amount of any federal, state or local grant received by

the taxpayer, which was used for the purchase and/or installation of

such equipment and which was not included in the federal gross income of

the taxpayer, shall not be included in the amount of such expenditures.

(5) Carryover of credit. If the amount of the credit, and carryovers

of such credit, allowable under this subsection for any taxable year

shall exceed the taxpayer's tax for such year, such excess amount may be

carried over to the five taxable years next following the taxable year

with respect to which the credit is allowed and may be deducted from the

taxpayer's tax for such year or years.

(g-4) Geothermal energy systems credit. (1) General. An individual

taxpayer shall be allowed a credit against the tax imposed by this

article equal to twenty-five percent of qualified geothermal energy

system expenditures, except as provided in subparagraph (D) of paragraph

two of this subsection, not to exceed five thousand dollars for

qualified geothermal energy systems placed in service on or before June

thirtieth, two thousand twenty-five, and ten thousand dollars for

qualified geothermal energy equipment placed in service on or after July

first, two thousand twenty-five.

(2) Qualified geothermal energy systems expenditures. (A) The term

"qualified geothermal energy system expenditures" means expenditures

for:

(i) the purchase of geothermal energy system equipment which is

installed in connection with residential property which is (I) located

in this state and (II) which is the taxpayer's residence at the time the

geothermal energy system is placed in service; or

(ii) the lease of geothermal energy system equipment under a written

agreement that spans at least ten years where such equipment owned by a

person other than the taxpayer is installed in connection with

residential property which is (I) located in this state and (II) which

is the taxpayer's residence at the time the geothermal energy system

equipment is placed in service.

(B) Such qualified expenditures shall include expenditures for

materials, labor costs properly allocable to on-site preparation,

assembly and original installation, architectural and engineering

services, and designs and plans directly related to the construction or

installation of the geothermal energy system equipment.

(C) Such qualified expenditures for the purchase of geothermal energy

system equipment shall not include interest or other finance charges or

costs that have been used to qualify for any other credit.

(D) Such qualified expenditures for the lease of geothermal energy

system equipment under an agreement described in clause (ii) of

subparagraph (A) of this paragraph shall include an amount equal to all

payments made during the taxable year under such agreement. Provided,

however, such credits shall only be allowed for fourteen years after the

first taxable year in which such credit is allowed. Provided further,

however, the twenty-five percent limitation in paragraph one of this

subsection shall only apply to the total aggregate amount of all

payments to be made pursuant to an agreement referenced in clause (ii)

of subparagraph (A) of this paragraph, and shall not apply to individual

payments made during a taxable year under such agreement except to the

extent such limitation on an aggregate basis has been reached.

(3) Geothermal energy system equipment. The term "geothermal energy

system equipment" shall mean a system whose original use begins with the

taxpayer; which meets the eligibility criteria, if any, prescribed by

the department; and which is a ground coupled solar thermal system that

utilizes the solar thermal energy stored in the ground or in bodies of

water to produce heat, and which is commonly known as or referred to as

a ground source heat pump system.

(4) Multiple taxpayers. Where geothermal energy system equipment is

purchased and installed in a residence shared by two or more taxpayers,

the amount of the credit allowable under this subsection for each such

taxpayer shall be prorated according to the percentage of the total

expenditure for such geothermal energy system equipment contributed by

each taxpayer.

(5) Proportionate share. Where geothermal energy system equipment is

purchased and installed by a condominium management association or a

cooperative housing corporation, a taxpayer who is a member of the

condominium management association or who is a tenant-stockholder in the

cooperative housing corporation may for the purpose of this subsection

claim a proportionate share of the total expense as the expenditure for

the purposes of the credit attributable to the taxpayer's residence.

(6) Grants. For purposes of determining the amount of the expenditure

incurred in purchasing and installing geothermal energy system

equipment, the amount of any federal, state or local grant received by

the taxpayer, which was used for the purchase and/or installation of

such equipment and which was not included in the federal gross income of

the taxpayer, shall not be included in the amount of such expenditures.

(7) Limitation. The credit shall only be allowed for geothermal energy

system equipment installed in connection with residential property used

exclusively for personal purposes by the taxpayer. No credit shall be

allowed for geothermal energy system equipment installed in connection

with residential property that is rented at any time during the taxable

year for which the credit is being claimed.

(8) When credit allowed. The credit provided for herein shall be

allowed with respect to the taxable year in which the geothermal energy

system equipment is placed in service and shall be allowed only for

geothermal energy system equipment placed into service after January

first, two thousand twenty-two. However, the taxpayer shall be allowed a

credit for only one such system in any taxable year.

(9) Application of credit. If the amount of the credit, and carryovers

of such credit, allowable under this subsection for any taxable year

shall exceed the taxpayer's tax for such year, such excess amount may be

carried over to the five taxable years next following the taxable year

with respect to which the credit is allowed and may be deducted from the

taxpayer's tax for such year or years. For taxable years beginning on or

after January first, two thousand twenty-six, taxpayers who are (A)

married filing jointly or qualifying surviving spouses with a federal

adjusted gross income of one hundred eighty thousand dollars or less, or

(B) single, married filing separate, or heads of household with a

federal adjusted gross income of ninety thousand dollars or less, may

elect to receive such excess amount as a refund. Any refund paid

pursuant to this paragraph shall be deemed to be a refund of an

overpayment of tax as provided in section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon.

(h) Research and development tax credit. (1) For taxable years

commencing prior to January first, nineteen hundred eighty-seven, a

taxpayer shall be allowed a credit against the tax imposed by this

article after allowance of any other credit provided under this section

and any credits permitted under sections six hundred twenty, six hundred

twenty-one and six hundred thirty-five of this article. The amount of

the credit shall be ten percent of the cost or other basis for federal

income tax purposes of tangible personal property, including buildings

and other structural components of buildings, described in paragraph two

of this subsection acquired, constructed or reconstructed, or erected

after June thirtieth, nineteen hundred eighty-two.

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

tangible personal property and other tangible property, including

buildings and structural components of buildings which are: depreciable

pursuant to section one hundred sixty-seven of the internal revenue

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

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

revenue code, have a situs in this state and are used or are to be used

for purposes of research and development in the experimental or

laboratory sense. Such purposes shall not be deemed to include the

ordinary testing or inspection of materials or products for quality

control, efficiency surveys, management studies, consumer surveys,

advertising, promotions, or research in connection with literary,

historical or similar projects.

(3) A taxpayer shall not be allowed a credit under this subsection

with respect to any property described in paragraphs one and two of this

subsection, if such property qualifies for the modification allowed

under either paragraph three or paragraph four of subsection (g) of

section six hundred twelve whether or not such amount shall have been

subtracted, or if a credit is taken pursuant to subsection (a) of this

section. Provided, however, with respect to property which qualifies

under either clause (A), (B) or (C) of paragraph four of subsection (g)

because such property was ordered on or before December thirty-first,

nineteen hundred sixty-eight, but with respect to which no expenditure

has been paid or incurred at such date, the taxpayer may elect to

subtract the amount allowable under clause (A), (B) or (C) or may take

the credit provided by this subsection, but not both.

(4) A taxpayer shall not be allowed a credit under this subsection

with respect to tangible personal property and other tangible property,

including buildings and structural components of buildings, which it

leases to any other person or corporation. For purposes of the preceding

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

use such property shall be considered a lease. Provided, however, in

determining whether a taxpayer shall be allowed a credit under this

subsection with respect to such property, any election made with respect

to such property pursuant to the provisions of paragraph eight of

subsection (f) of section one hundred sixty-eight of the internal

revenue code, as such paragraph was in effect for agreements entered

into prior to January first, nineteen hundred eighty-four, shall be

disregarded.

(5) If the amount of credit allowable under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, the excess

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

from the taxpayer's tax for such year or years but in no event shall

such credit be carried over to taxable years commencing on or after

January first, nineteen hundred ninety-four.

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

section one hundred sixty-seven of the internal revenue code but is not

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

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

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

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

this subsection which represents the ratio which the months of qualified

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

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

end of its useful life, the difference between the credit taken and the

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

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

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

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

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

allowed for actual use shall be determined by multiplying the original

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

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

property shall be the same as the taxpayer uses for depreciation

purposes when computing his federal income tax liability.

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

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

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

revenue code, which is disposed of or ceases to be in qualified use

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

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

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

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

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

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

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

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

determined by multiplying the original credit by the ratio which the

months of qualified use bear to thirty-six.

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

this paragraph applies, with respect to property subject to the

provisions of section one hundred sixty-eight of the internal revenue

code other than three-year property as defined in subsection (e) of such

section one hundred sixty-eight, which is disposed of or ceases to be in

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

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

credit provided for in this subsection which represents the ratio which

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

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

the end of sixty months, the difference between the credit taken and the

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

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

determined by multiplying the original credit by the ratio which the

months of qualified use bear to sixty.

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

sixty-eight of the internal revenue code applies, which is a building or

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

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

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

the credit provided for in this subsection which represents the ratio

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

over which the taxpayer chooses to deduct the property under the

internal revenue code. If property on which credit has been taken is

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

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

internal revenue code, the difference between the credit taken and the

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

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

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

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

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

allowed for actual use shall be determined by multiplying the original

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

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

under the internal revenue code.

(i) S corporation credits. (1) For purposes of determining the

application under this section of the credit provisions enumerated in

the following table, a shareholder of a New York S corporation:

(A) shall be treated as the taxpayer with respect to his or her pro

rata share of the corresponding credit base of such corporation,

determined for the corporation's taxable year ending with or within the

shareholder's taxable year and

(B) shall be treated as the owner of a new business with respect to

such share if the corporation qualifies as a new business pursuant to

paragraph (f) of subdivision one of section two hundred ten-B of this

chapter.

With respect to the following The corporation's credit base under

credit under this section: section two hundred ten-B

of this chapter is:

(i) Investment tax credit under Investment credit base or qualified

subsection (a) rehabilitation expenditures under

subdivision one of section

two hundred ten-B

(ii) Empire zone investment Cost or other basis under

tax credit under subsection (j) subdivision three

of section two hundred ten-B

(v) Agricultural property tax Allowable school district property

credit under subsection (n) taxes under subdivision eleven of

section two hundred ten-B

(vi) Credit for employment of Qualified first-year wages or

persons with disabilities qualified second-year wages under

under subsection (o) subdivision twelve

of section two hundred ten-B

(vii) Employment incentive credit Applicable investment credit base

under subsection (a-1) under subdivision two

of section two hundred ten-B

(viii) Empire zone employment Applicable investment credit

incentive credit under subsection under subdivision four

(j-1) of section

two hundred ten-B

(ix) Alternative fuels Amount of credit under subdivision

and electric vehicle thirty of section

recharging property two hundred ten-B

credit under subsection (p)

(x) Qualified emerging technology Applicable credit base under

company employment credit under subdivision seven

subsection (q) of section two hundred ten-B

(xi) Qualified emerging technology Qualified investments under

company capital tax credit under subdivision eight

subsection (r) of section two hundred ten-B

(xii) Credit for purchase of an Cost of an automated external

automated external defibrillator defibrillator under subdivision

under subsection (s) thirteen of section

two hundred ten-B

(xiii) Low-income housing credit Credit amount under subdivision

under subsection (x) fifteen of section

two hundred ten-B

(xv) QEZE credit for real property Amount of credit under subdivision

taxes under subsection (bb) five of

section two hundred ten-B

(xvi) QEZE tax reduction credit Amount of benefit period factor,

under subsection (cc) employment increase factor and zone

allocation factor (without regard

to pro ration) under subdivision

six of

section two hundred ten-B

and amount

of tax factor as determined under

subdivision (f) of section sixteen

(xvii) Green building credit under Amount of green building credit

subsection (y) under subdivision sixteen

of section two

hundred ten-B

(xviii) Credit for long-term care Qualified costs under subdivision

insurance premiums under subsection fourteen

(aa) of section two hundred ten-B

(xix) Brownfield redevelopment Amount of credit under subdivision

credit under subsection (dd) seventeen

of section two hundred

ten-B

(xx) Remediated brownfield credit Amount of credit under subdivision

for real property taxes for eighteen

qualified sites under subsection of section two hundred

(ee) ten-B

(xxi) Environmental remediation Amount of credit under subdivision

insurance credit under subsection nineteen

(ff) of section two hundred ten-B

(xxii) Empire state film Amount of credit for qualified

production credit under production costs in production of a

subsection (gg) qualified film under subdivision

twenty of

section two hundred ten-B

(xxiv) Security training tax credit Amount of credit under subdivision

under subsection (ii) twenty-one

of section two hundred ten-B

(xxvi) Empire state commercial Amount of credit for qualified

production credit under subsection production costs in production of

(jj) a qualified commercial under

subdivision twenty-three of

section two hundred ten-B

(xxvii) Biofuel production tax Amount of credit under subdivision

credit under subsection (jj) twenty-four

of section two hundred ten-B

(xxviii) Clean heating fuel credit Amount of credit under subdivision

under subsection (mm) twenty-five of

section two hundred ten-B

(xxix) Credit for rehabilitation Amount of credit under subdivision

of historic properties under twenty-six of

subsection (oo) section two hundred ten-B

* (xxxi) Excelsior jobs program tax Amount of credit under subdivision

credit under subsection (qq) thirty-one of

section two hundred ten-B

* NB There are 2 clause (xxxi)'s

* (xxxi) Empire state film Amount of credit for

post production credit under qualified post production

subsection (qq) costs of a qualified film

under subdivision thirty-two

of section two hundred ten-B

* NB There are 2 clause (xxxi)'s

* (xxxii) Economic transformation Amount of credit under subdivision

and facility redevelopment credit thirty-five

of section two hundred ten-B

* NB Repealed December 31, 2026

* (xxxiii) New York youth jobs Amount of credit under

program tax credit subdivision thirty-six

of section two hundred ten-B

* NB There are 3 clause (xxxiii)'s

* (xxxiii) Empire state jobs Amount of credit under

retention program credit subdivision thirty-seven

of section two hundred ten-B

* NB There are 3 clause (xxxiii)'s

* (xxxiii) Credit for companies who Amount of credit under

provide transportation to subdivision thirty-eight

individuals with disabilities of section

under subsection (tt) two hundred ten-B

* NB Repealed December 31, 2028

* NB There are 3 clause (xxxiii)'s

(xxxiv) Alcoholic beverage Amount of credit

production credit under under subdivision thirty-nine of

subsection (uu) section two hundred ten-B

* (xxxv) Hire a vet credit Amount of credit under subdivision

under subsection (a-2) twenty-nine

of section two hundred ten-B

* NB There are 2 clause (xxxv)'s

* (xxxv) Minimum wage reimbursement Amount of credit under subdivision

credit under subsection (aaa) forty of section two hundred

ten-B

* NB There are 2 clause (xxxv)'s

(xxxvi) Tax-free NY area tax Amount of credit under

elimination credit subdivision forty-one

of section two hundred ten-B

(xxxvii) Real property tax Amount of credit under

credit for manufacturers subdivision

under subsection (xx) forty-three of section

two hundred ten-B

(xxxviii) Tax-free NY area Amount of credit under

excise tax on subdivision

telecommunications services forty-four of section

credit under subsection (yy) two hundred ten-B

** (xxxix) Musical and theatrical Amount of credit for

production credit under the sum of the qualified

subsection (u) production expenditures and

the transportation expenditures

in a qualified musical and

theatrical production under

subdivision forty-seven of

section two hundred ten-B

** NB Repealed January 1, 2030

(xl) Workers with disabilities Amount of

tax credit under subsection (zz) credit under subdivision

forty-eight of section two

hundred ten-B

(xli) Farm workforce retention Amount of credit under

credit under subsection (fff) subdivision fifty-one of

section two hundred ten-B

(xlii) Employee training incentive Amount of credit under

program credit under subdivision fifty of

subsection (ddd) section two hundred ten-B

* (xliii) Life sciences research Amount of credit under

and development tax credit under subdivision fifty-two of

subsection (hhh) section two hundred ten-B

* NB There are 3 clause (xliii)'s

* (xliii) Empire state apprentice- Amount of credit under

ship tax credit under subsection subdivision forty-nine of

(vvv) section two hundred ten-B

* NB There are 3 clause (xliii)'s

* (xliii) Farm donations to food Amount of credit under

pantries credit under subsection subdivision fifty-two of

(n-2) section two hundred ten-B

* NB There are 3 clause (xliii)'s

* (xliv) Employer-provided child Amount of credit under subdivision

care credit (jjj) fifty-three of section two hundred

ten-B

* NB There are 2 clause (xliv)'s

* (xliv) Recovery tax credit under Amount of credit under

subsection (jjj) subdivision fifty-three of

section two hundred ten-B

* NB There are 2 clause (xliv)'s

* (xlv) Television writers' Amount of credit for the sum of

and directors' fees and salaries qualified television writers' and

credit under subsection (v) directors' salaries credit

under subdivision fifty-four of

section two hundred ten-B

* NB Effective on the first of January next succeeding the date the

department of economic development provides notice to the legislative

bill drafting commission of a determination pursuant to § 6 sb 2 (b) of

chapter 683 of 2019

(xlvi) Empire state digital Amount of credit

gaming media production under subdivision

credit under subsection (nnn) fifty-five of section

two hundred ten-B

(xlvii) Restaurant return-to-work Amount of credit under

tax credit subdivision fifty-six of

section two hundred ten-B

* (xlviii) New York city musical Amount of credit under

and theatrical production subdivision fifty-seven of

tax credit section two hundred ten-B

* NB Repealed January 1, 2028

* (xlix) Farm employer overtime Amount of credit under

credit under subsection (nnn) subdivision fifty-eight of

section two hundred ten-B

* NB There are 4 clause (xlix)'s

* (xlix) COVID-19 capital costs Amount of credit under

tax credit under subsection (nnn) subdivision 58 of

section two hundred ten-B

* NB There are 4 clause (xlix)'s

* (xlix) Grade no. 6 heating oil Amount of credit under subdivision

conversion tax credit under fifty-eight of section two hundred

subsection (nnn) ten-B

* NB There are 4 clause (xlix)'s

* (xlix) Additional restaurant Amount of credit under

return-to-work credit subdivision fifty-six-a of

section two hundred ten-B

* NB There are 4 clause (xlix)'s

(l) Child care creation and Amount of credit

expansion tax credit under under subdivision fifty-nine

subsection (ooo) of section two hundred

ten-B

* (li) Newspaper and broadcast Amount of credit under subdivision

media jobs tax credit under sixty of section two hundred ten-B

subsection (ppp)

* NB There are 2 clause (li)'s

* (li) Commercial security tax Amount of credit under

credit under subsection (ppp) subdivision sixty of

section two hundred ten-B

* NB There are 2 clause (li)'s

(lii) Empire state film Amount of credit for qualified

production credit under production costs in production of

subsection (gg-1) a qualified film under

subdivision twenty-a of

section two hundred ten-B

(2) The reduction of a shareholder's proportionate interest in the

corporation shall be treated as a disposition of property for which a

redetermination of credit is required under subsections (a), (j) and (l)

of this section.

(3) Transition provisions relating to S corporation credits allowed

for taxable years beginning before nineteen hundred ninety-four. (A)

Credit carryover. Any excess credit under subparagraph (A) of paragraph

one of this subsection, as it was in effect for taxable years beginning

before nineteen hundred ninety-four, may be carried over to the

shareholder's following year or years and may be deducted from such

shareholder's tax for such year or years, except that any excess credit

attributable to subdivision one of section two hundred ten-B of this

chapter shall in no event be carried over beyond the ten taxable years

next following the taxable year of origin.

(B) Credit recapture. Any redetermination of credit required by this

subsection as it was in effect for taxable years beginning before

nineteen hundred ninety-four, upon disposition or cessation of qualified

use of property pursuant to paragraph (e) of subdivision one, or

paragraph (f) of subdivision three of section two hundred ten-B of this

chapter shall be attributed in pro rata shares to the shareholders who

were allowed credit under this subsection with respect to such property,

and the reduction of a shareholder's proportionate stock interest shall

be treated as a disposition of property for which a redetermination of

credit under such paragraphs is required with respect to such

shareholder.

(4) Transition provisions relating to credit for special additional

mortgage recording tax. In the case of the special additional mortgage

recording tax credit, in addition to any carryover thereof under

paragraph three of this subsection (relating to carryover from taxable

years of the shareholder beginning before nineteen hundred ninety-four),

there also shall be allowed a credit for such tax which is due and paid

by an S corporation in a taxable year of the corporation beginning in

nineteen hundred ninety-three, which year ends within the shareholder's

taxable year beginning in nineteen hundred ninety-four. Any such credit,

and carryover thereof, shall be allowed as provided under this

subsection as it was in effect for taxable years beginning before

nineteen hundred ninety-four.

(j) Empire zone investment tax credit (EZ-ITC). (1) A taxpayer shall

be allowed a credit, to be computed as hereinafter provided, against the

tax imposed by this article where the taxpayer has been certified

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

of such credit shall be eight percent of the cost or other basis for

federal income tax purposes of tangible personal property and other

tangible property, including buildings and structural components of

buildings, described in paragraph two of this subsection, which is

located within an empire zone designated as such pursuant to article

eighteen-B of such law, but only if the acquisition, construction,

reconstruction or erection of such property occurred or was commenced on

or after the date of such designation and prior to the expiration

thereof. Provided, however, that in the case of an acquisition,

construction, reconstruction or erection which was commenced during such

period and continued or completed subsequently, the credit shall be

eight percent of the portion of the cost or other basis for federal

income tax purposes attributable to such period, which portion shall be

ascertained by multiplying such cost or basis by a fraction the

numerator of which shall be the expenditures paid or incurred during

such period for such purposes and the denominator of which shall be the

total of all expenditures paid or incurred for such acquisition,

construction, reconstruction or erection.

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

tangible personal property and other tangible property, including

buildings and structural components of buildings which: (A) are

depreciable pursuant to section one hundred sixty-seven of the internal

revenue code, (B) have a useful life of four years or more, (C) are

acquired by purchase as defined in section one hundred seventy-nine (d)

of the internal revenue code, (D) have a situs in an empire zone

designated as such pursuant to article eighteen-B of the general

municipal law, and (E) are (i) principally used by the taxpayer in the

production of goods by manufacturing, processing, assembling, refining,

mining, extracting, farming, agriculture, horticulture, floriculture,

viticulture or commercial fishing, (ii) industrial waste treatment

facilities or air pollution control facilities used in the taxpayer's

trade or business, (iii) research and development property, (iv)

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

business as a broker or dealer in connection with the purchase or sale

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

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

bonds or other securities as defined in section four hundred

seventy-five (c)(2) of the Internal Revenue Code, or of commodities as

defined in section four hundred seventy-five (e) of the Internal Revenue

Code, or (v) principally used in the ordinary course of the taxpayer's

trade or business of providing investment advisory services for a

regulated investment company as defined in section eight hundred

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

loan origination services to customers in connection with the purchase

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

entering into, assumption, offset, assignment, termination, or transfer)

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

the Internal Revenue Code. For purposes of clauses (iv) and (v) of this

subparagraph, property purchased by a taxpayer affiliated with a

regulated broker, dealer or registered investment adviser is allowed a

credit under this subsection if the property is used by its affiliated

regulated broker, dealer or registered investment adviser in accordance

with this subsection. For purposes of determining if the property is

principally used in qualifying uses, the uses by the taxpayer described

in clauses (iv) and (v) of this subparagraph may be aggregated. In

addition, the uses by the taxpayer, its affiliated regulated broker,

dealer, and registered investment adviser under either or both of those

clauses may be aggregated. Provided, however, a taxpayer shall not be

allowed the credit provided by clauses (iv) and (v) of this subparagraph

unless (I) eighty percent or more of the employees performing the

administrative and support functions resulting from or related to the

qualifying uses of such equipment are located in this state, or (II) the

average number of employees that perform the administrative and support

functions resulting from or related to the qualifying uses of such

equipment and are located in this state during the taxable year for

which the credit is claimed is equal to or greater than ninety-five

percent of the average number of employees that perform these functions

and are located in this state during the thirty-six months immediately

preceding the year for which the credit is claimed, or (III) the number

of employees located in this state during the taxable year for which the

credit is claimed is equal to or greater than ninety percent of the

number of employees located in this state on December thirty-first,

nineteen hundred ninety-eight or, if the taxpayer was not a calendar

year taxpayer in nineteen hundred ninety-eight, the last day of its

first taxable year ending after December thirty-first, nineteen hundred

ninety-eight. If the taxpayer becomes subject to tax in this state after

the taxable year beginning in nineteen hundred ninety-eight, then the

taxpayer is not required to satisfy the employment test provided in the

preceding sentence of this subparagraph for its first taxable year. For

purposes of clause (III) of this subparagraph, 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. For purposes of this

subsection, the term "goods" shall not include electricity. For purposes

of this paragraph, manufacturing shall mean the process of working raw

materials into wares suitable for use or which gives new shapes, new

quality or new combination to matter which already has gone through some

artificial process by the use of machinery, tools, appliances and other

similar equipment. Property used in the production of goods shall

include machinery, equipment or other tangible property which is

principally used in the repair and service of other machinery, equipment

or other tangible property used principally in the production of goods

and shall include all facilities used in the production operation,

including storage of material to be used in production and of the

products that are produced. For purposes of this paragraph, the terms

"research and development property", "industrial waste treatment

facilities", and "air pollution control facilities" shall have the

meanings ascribed thereto by clauses (ii), (iii) and (iv), respectively,

of subparagraph (B) of paragraph two of subsection (a) of this section,

and the provisions of subparagraph (C) of such paragraph two shall

apply.

(3) A taxpayer shall not be allowed a credit under this subsection

with respect to any tangible personal property and other tangible

property, including buildings and structural components of buildings,

which it leases to any other person or corporation except where a

taxpayer leases property to an affiliated regulated broker, dealer, or

registered investment adviser that uses such property in accordance with

clause (iv) or (v) of subparagraph (E) of paragraph two of this

subsection. For purposes of the preceding sentence, any contract or

agreement to lease or rent or for a license to use such property shall

be considered a lease. Provided, however, in determining whether a

taxpayer shall be allowed a credit under this subsection with respect to

such property, any election made with respect to such property pursuant

to the provisions of paragraph eight of subsection (f) of section one

hundred sixty-eight of the internal revenue code, as such paragraph was

in effect for agreements entered into prior to January first, nineteen

hundred eighty-four, shall be disregarded.

(4) If the amount of credit allowed under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, the excess

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

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

any such excess, a taxpayer who qualifies as an owner of a new business

for purposes of paragraph ten of subsection (a) of this section may, at

his option, receive fifty percent of such excess as a refund. Any refund

paid pursuant to this paragraph shall be deemed to be a refund of an

overpayment of tax as provided in section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon.

(4-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.

(5) At the option of the taxpayer, air or water pollution control

facilities which qualify for elective modifications under subsection (h)

of section six hundred twelve, or research and development facilities

which qualify for elective modification under paragraphs three and four

of subsection (g) of section six hundred twelve, or property which

qualifies for the credit provided under subsection (a) or (h) of this

section may be treated as property principally used by the taxpayer in

the production of goods by manufacturing, processing, assembling,

mining, refining, extracting, farming, agriculture, horticulture,

floriculture, viticulture, or commercial fishing, provided the property

otherwise qualifies under paragraph two of this subsection, in which

event a deduction shall not be allowed under such subsection (h) or such

paragraphs three and four of subsection (g) and a credit shall not be

allowed under such subsection (a) or (h).

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

section one hundred sixty-seven of the internal revenue code but is not

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

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

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

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

this section which represents the ratio which the months of qualified

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

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

the end of its useful life, the difference between the credit taken and

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

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

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

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

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

allowed for actual use shall be determined by multiplying the original

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

of useful life. For purposes of this subsection, useful life of property

shall be the same as the taxpayer uses for depreciation purposes when

computing his federal income tax liability.

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

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

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

revenue code, which is disposed of or ceases to be in qualified use

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

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

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

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

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

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

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

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

determined by multiplying the original credit by the ratio which the

months of qualified use bear to thirty-six.

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

this paragraph applies, with respect to property subject to the

provisions of section one hundred sixty-eight of the internal revenue

code other than three-year property as defined in subsection (e) of such

section one hundred sixty-eight of the internal revenue code which is

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

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

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

subsection which represents the ratio which the months of qualified use

bear to sixty. If property on which credit has been taken is disposed of

or ceases to be in qualified use prior to the end of sixty months, the

difference between the credit taken and the credit allowed for actual

use must be added back in the year of disposition. The amount of credit

allowed for actual use shall be determined by multiplying the original

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

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

sixty-eight of the internal revenue code applies, which is a building or

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

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

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

the credit provided for in this subsection which represents the ratio

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

over which the taxpayer chooses to deduct the property under the

internal revenue code. If property on which credit has been taken is

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

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

internal revenue code, the difference between the credit taken and the

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

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

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

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

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

allowed for actual use shall be determined by multiplying the original

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

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

under the internal revenue code.

(E) For purposes of this paragraph, disposal or cessation of qualified

use shall not be deemed to have occurred solely by reason of the

termination or expiration of an empire zone's designation as such.

(F)(i) For purposes of this paragraph, the decertification of a

business enterprise with respect to an empire zone shall constitute a

disposal or cessation of qualified use of the property on which the

credit was taken which is located in the zone to which the

decertification applies, on the effective date of such decertification.

(ii) Where a business enterprise has been decertified based on a

finding pursuant to clause one, two, or five of subdivision (a) of

section nine hundred fifty-nine of the general municipal law, the amount

required to be added back by reason of this paragraph shall be augmented

by an amount equal to the product of the amount of credit, with respect

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

was deducted from the taxpayer's tax otherwise due under this article

for all prior taxable years (subject to the limit set forth in this

subparagraph) and the underpayment rate of interest (without regard to

compounding) set by the commissioner of taxation and finance pursuant to

subdivision (j) of section six hundred ninety-seven of this chapter, in

effect on the last day of the taxable year. The limit shall be (I) the

amount of credit, with respect to the property which is disposed of or

ceases to be in qualified use, which was deducted from the taxpayer's

tax otherwise due under this article for all prior taxable years,

reduced (but not below zero) by (II) the credit allowed for actual use.

For purposes of this subparagraph, the attribution to specific property

of credit amount deducted from tax shall be established in accordance

with the date of placement in service of such property in the empire

zone.

(iii) In no event shall the amount of the credit allowed pursuant to

this subsection be rendered, solely by reason of clause (i) of this

subparagraph, less than the amount of the credit to which the taxpayer

would otherwise be entitled under subsection (a) of this section.

(iv) Notwithstanding any other provision of this subsection, in the

case of a business enterprise which has been decertified, any amount of

credit allowed with respect to the property of such business enterprise

located in the zone to which the decertification applies which is

carried over pursuant to paragraph four of this subsection shall not be

carried over beyond the seventh taxable year next following the taxable

year with respect to which the credit provided for in this subsection

was allowed.

(G) For purposes of this paragraph, where a credit is allowed with

respect to an air pollution control facility on the basis of a

certificate of compliance issued pursuant to the environmental

conservation law and the certificate is revoked pursuant to subdivision

three of section 19-0309 of the environmental conservation law, such

revocation shall constitute a disposal or cessation of qualified use,

except with respect to property contained in or comprising such facility

which is described in clause (i), (ii) or (iii) of subparagraph (E) of

paragraph two of this subsection other than as part of or comprising an

air pollution control facility. Also for purposes of this paragraph, the

use of an air pollution control facility or an industrial waste

treatment facility for the primary purpose of salvaging materials which

are usable in the manufacturing process or are marketable shall

constitute a cessation of qualified use, except with respect to property

contained in or comprising such facility which is described in clause

(i) or (iii) of subparagraph (E) of paragraph two of this subsection.

(H) Except as provided in this subparagraph, this paragraph shall not

apply to a credit allowed by this subsection to a taxpayer that is a

partner in a partnership in the case of manufacturing property;

provided, at the time such property was placed in service by such

partnership in an empire zone the basis for federal income tax purposes

of such property (or a project that includes such property) equaled or

exceeded three hundred million dollars and such partner owned his or her

partnership interest for at least three years from the date such

property was placed in service. If such property ceases to be in

qualified use after it is placed in service, this paragraph shall apply

to such partner in the year such property ceases to be in qualifying

use.

(7) Notwithstanding the expiration of the empire zones program under

article eighteen-B of the general municipal law, a taxpayer that is

certified as an empire zone business pursuant to such article eighteen-B

on the day immediately preceding the day the empire zones program

expired shall continue to be deemed certified under such article

eighteen-B for purposes of this subdivision until April first, two

thousand fourteen. In addition, the areas designated as empire zones in

which the taxpayer is certified as an empire zone business on the day

immediately preceding the day the empire zones program expired shall

continue to be deemed empire zones for purposes of this subdivision

until April first, two thousand fourteen.

(j-1) Empire zone employment incentive credit. (1) Where a taxpayer is

allowed a credit under subsection (j) of this section, the taxpayer

shall be allowed a credit for each of the three years next succeeding

the taxable year for which the credit under such subsection (j) is

allowed, with respect to such property, whether or not deductible in

such taxable year or in subsequent taxable years pursuant to paragraph

four of subsection (j) of this section, of thirty percent of the credit

allowable under such subsection (j); provided, however, that the credit

allowable under this subsection for any taxable year shall only be

allowed if the average number of employees employed by the taxpayer in

the empire zone, designated pursuant to article eighteen-B of the

general municipal law, in which such property is located during such

taxable year is at least one hundred one percent of the average number

of employees employed by the taxpayer in such empire zone or, where

applicable, in the geographic area subsequently constituting such zone,

during the taxable year immediately preceding the taxable year for which

the credit under such subsection (j) is allowed and provided, further,

that in the case of a new business, the credit allowable under this

subsection for any taxable year shall be allowed if the average number

of employees employed in such empire zone in such taxable year is at

least one hundred one percent of the average number of such employees

during the taxable year in which the credit under such subsection (j) is

allowed.

(2) The average number of employees employed in an empire zone, or,

where applicable, in the geographic area subsequently constituting such

zone, in a taxable year shall be computed by ascertaining the number of

such employees within such zone, or, where applicable, in the geographic

area subsequently constituting such zone, employed by the taxpayer on

the thirty-first day of March, the thirtieth day of June, the thirtieth

day of September and the thirty-first day of December in the taxable

year, by adding together the number of employees ascertained in each of

such dates and dividing the sum so obtained by the number of such

abovementioned dates occurring within the taxable year.

(3) If the amount of credit allowed under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, the excess

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

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

any such excess, a taxpayer who qualified as an owner of a new business

for purposes of paragraph ten of subsection (a) of this section may, at

his option, receive fifty percent of such excess as a refund. Any refund

paid pursuant to this paragraph shall be deemed to be a refund of an

overpayment of tax as provided in section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon.

(3-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.

(4) Notwithstanding the expiration of the empire zones program under

article eighteen-B of the general municipal law, a taxpayer that is

certified as an empire zone business pursuant to such article eighteen-B

on the day immediately preceding the day the empire zones program

expired shall continue to be deemed in the empire zone in which the

taxpayer was certified as an empire zone business on the day immediately

preceding the day the empire zones program expired for each of the three

years next succeeding the taxable year for which the credit under

subdivision (j) is allowed.

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

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

by this article, where the taxpayer has been certified pursuant to

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

credit shall be as prescribed in paragraph four of this subsection.

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

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

the taxpayer for full-time employment during the taxable year, in an

area designated or previously designated as an empire zone or zone

equivalent area pursuant to article eighteen-B of the general municipal

law, where such employment is in a job created in the area (i) during

the period of its designation as an empire zone, (ii) within four years

of the expiration of such designation, or (iii) during the ten year

period immediately following the date of designation as a zone

equivalent area, provided, however, that if the taxpayer's certification

under article eighteen-B of the general municipal law is revoked with

respect to an empire zone or zone equivalent area, any wages paid by the

taxpayer, on or after the effective date of such decertification, for

employment in such zone shall not constitute empire zone wages.

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

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

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

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

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

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

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

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

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

established poverty rate promulgated by the appropriate federal agency

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

of the United States.

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

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

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

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

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

individual continues to receive empire zone wages.

(C) "Average number of individuals employed full-time" shall be

computed by ascertaining the number of such individuals employed by the

taxpayer on the thirty-first day of March, the thirtieth day of June,

the thirtieth day of September and the thirty-first day of December

during each taxable year or other applicable period, by adding together

the number of such individuals ascertained on each of such dates and

dividing the sum so obtained by the number of such dates occurring

within such taxable year or other applicable period.

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

average number of individuals employed full-time by the taxpayer in (i)

the state and (ii) the empire zone or area previously constituting such

zone or zone equivalent area, during the taxable year exceeds the

average number of such individuals employed full-time by the taxpayer in

(i) the state and (ii) such zone or area subsequently or previously

constituting such zone or such zone equivalent area, respectively,

during the four years immediately preceding the first taxable year in

which the credit is claimed with respect to such zone or area. Where the

taxpayer provided full-time employment within (i) the state or (ii) such

zone or area during only a portion of such four-year period, then for

purposes of this paragraph the term "four years" shall be deemed to

refer instead to such portion, if any.

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

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

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

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

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

with paragraph four of this subsection. Subsequent certifications of the

taxpayer pursuant to article eighteen-B of the general municipal law, at

the same or a different location in the same empire zone or zone

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

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

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

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

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

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

years after the designation as a zone equivalent area.

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

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

individuals employed full-time by the taxpayer, computed pursuant to the

provisions of subparagraph (C) of paragraph two of this subsection, who

(I) received empire zone wages for more than half of the taxable year,

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

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

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

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

(III) are targeted employees; and

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

individuals (excluding individuals described in subparagraph (i) of this

paragraph) employed full-time by the taxpayer, computed pursuant to the

provisions of subparagraph (C) of paragraph two of this subsection, who

received empire zone wages for more than half of the taxable year.

Provided, further, however, that the credit provided for herein with

respect to the taxable year, and carryovers of such credit to the

taxable year, deducted from the tax otherwise due, may not, in the

aggregate, exceed fifty percent of the tax imposed under section six

hundred one computed without regard to any credit provided for under

this article.

(iii) For purposes of calculating the amount of the credit,

individuals employed within an empire zone or zone equivalent area

within the immediately preceding sixty months by a related person, as

such term is defined in subparagraph (c) of paragraph three of

subsection (b) of section four hundred sixty-five of the internal

revenue code, shall not be included in the average number of individuals

described in subparagraph (i) or subparagraph (ii) of this paragraph,

unless such related person was never allowed a credit under this

subsection with respect to such employees. For purposes of this

subparagraph, a "related person" shall include an entity which would

have qualified as a "related person" to the taxpayer if it had not been

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

exist or operate.

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

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

general municipal law, the dollar amounts specified under subparagraph

(i) or (ii) of this paragraph shall be increased by five hundred dollars

for each qualifying individual under such subparagraph who received,

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

(v) The requirement in this paragraph that an employee must receive

empire zone wages for more than half the taxable year shall not apply in

the first taxable year of a taxpayer satisfying the criteria set forth

in this subparagraph. In such a case, the credit allowed under this

subsection shall be computed by utilizing the number of individuals

(excluding general executive officers) employed full time by the

taxpayer on the last day of its first taxable year. A taxpayer shall

satisfy the following criteria: (I) such taxpayer acquired real or

tangible personal property during its first taxable year from an entity

which is not a related person (as such term is defined in subdivision

(g) of section fourteen of this chapter); (II) the first taxable year of

such taxpayer shall be a short taxable year of not more than seven

months in duration; and (III) the number of individuals employed

full-time on the last day of such first taxable year shall be at least

one hundred ninety and substantially all of such individuals must have

been previously employed by the entity from whom such taxpayer purchased

its assets.

(5) If the amount of the credit and carryovers of such credit allowed

under this subsection for any taxable year shall exceed the taxpayer's

tax for such year, the excess, as well as any part of the credit or

carryovers of such credit, or both, which may not be deducted from the

tax otherwise due by reason of the final sentence in paragraph four

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

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

carrying over any such excess, a taxpayer who qualifies as an owner of a

new business for purposes of paragraph ten of subsection (a) of this

section may, at his option, receive fifty percent of such excess as a

refund. Any refund paid pursuant to this paragraph shall be deemed to be

a refund of an overpayment of tax as provided in section six hundred

eighty-six of this article, provided, however, that no interest shall be

paid thereon.

(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.

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

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

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

investments and contributions made during the taxable year and certified

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

beginning before January first, two thousand five, qualified investments

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

empire zone capital corporations established pursuant to section nine

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

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

businesses which during the twelve month period immediately preceding

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

state an average number of individuals of two hundred fifty or fewer,

computed pursuant to the provisions of subparagraph (C) of paragraph two

of subsection (k) of this section, except for investments made by or on

behalf of an owner of the business including, but not limited to, a

stockholder, partner or sole proprietor, or any related person, as

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

section four hundred sixty-five of the internal revenue code, and (C)

contributions of money to community development projects as defined in

regulations promulgated by the commissioner of economic development.

"Qualified investments" means the contribution of property to a

corporation in exchange for original issue capital stock or other

ownership interest, the contribution of property to a partnership in

exchange for an interest in the partnership, and similar contributions

in the case of a business entity not in corporate or partnership form in

exchange for an ownership interest in such entity. The total amount of

credit allowable to a taxpayer under this provision for all years, taken

in the aggregate, shall not exceed three hundred thousand dollars, and

shall not exceed one hundred thousand dollars with respect to the

investments and contributions described in each of subparagraphs (A),

(B) and (C) of this paragraph.

(1-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.

(2) (A) If the amount of the credit and carryovers of such credit

allowed under this subsection for any taxable year shall exceed the

taxpayer's tax for such year, or if any part of the credit or carryovers

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

of the final sentence of this subparagraph, any amount of credit or

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

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

the tax for such year or years. In addition, the amount of such credit,

and carryovers of such credit to the taxable year, deducted from the tax

otherwise due may not, in the aggregate, exceed fifty percent of the tax

imposed under section six hundred one computed without regard to any

credit provided for by this section.

(B) In the case of a husband or wife who is required to file a

separate return, the limitation provided for in paragraph one of this

subsection shall be fifty thousand dollars in lieu of one hundred

thousand dollars and one hundred fifty thousand dollars in lieu of three

hundred thousand dollars, unless the spouse of the taxpayer has no

credit allowable under this subsection for the taxable year of such

spouse which ends within or with the taxpayer's taxable year.

(C) In the case of an estate or trust, the limitation provided for in

paragraph one of this subsection shall be reduced to an amount which

bears the same ratio to one hundred thousand dollars and an amount which

bears the same ratio to three hundred thousand dollars as the portion of

the income of the estate or trust which is not allocated to

beneficiaries bears to the total income of the estate or trust.

(3) Where the stock, partnership interest or other ownership interest

arising from a qualified investment as described in subparagraphs (A)

and (B) of paragraph one of this subsection is disposed of, the

taxpayer's New York taxable income shall be computed, pursuant to

regulations promulgated by the commissioner, so as to properly reflect

the reduced cost thereof arising from the application of the credit

provided for herein.

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

corporate stock, a partnership interest or other ownership interest

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

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

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

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

recovered by such taxpayer, and such disposition or recovery occurs

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

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

subparagraph (B) of this paragraph shall apply.

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

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

paragraph occurred the required portion of the credit originally

allowed.

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

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

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

applicable percentage.

(D) The applicable percentage shall be:

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

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

twelve months of the end of such taxable year,

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

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

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

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

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

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

(5) If the designation of an area as an empire zone is no longer in

effect because the designations of all empire zones pursuant to article

eighteen-B of the general municipal law have expired, a taxpayer that

has made a contribution of money on or before the day immediately

preceding the day the empire zones expired to a community development

project approved by the commissioner of economic development shall be

deemed eligible to claim the empire zone capital credit under

subparagraph (C) of paragraph one of this subsection for additional

contributions made prior to April first, two thousand fourteen and

certified by the commissioner of economic development to that community

development project as payment of a commitment made by the taxpayer to

that community development project before the empire zones expired.

(m) Excess deductions credit. (1) General. For taxable years beginning

in nineteen hundred ninety-five, an excess deductions credit shall be

allowed against the tax determined under subsections (a) through (d) of

section six hundred one of this article. The credit shall be allowed to

an individual taxpayer whose New York itemized deduction determined

under section six hundred fifteen (whether or not the taxpayer elects

the New York itemized deduction for the taxable year) exceeds the base

amount determined under paragraph two hereof. The credit shall not

exceed the tax determined under subsections (a) through (d) of section

six hundred one for the taxable year, reduced by the credits permitted

under subsection (c) of this section and sections six hundred twenty and

six hundred twenty-one of this article.

(2) Base amount. The base amount shall be determined by the taxpayer's

standard deduction status under section six hundred fourteen (whether or

not the taxpayer employs the standard deduction for the taxable year) as

follows:

If the taxpayer's standard The base amount is:

deduction status is:

Unmarried individual who is

not a head of household nor a

surviving spouse nor an

individual whose federal

exemption amount is zero $6,000

Husband and wife whose New York

taxable income is determined

jointly, or a surviving spouse $9,500

Head of household $7,000

Married individual filing a

separate New York return $4,750

(3) Credit amount.

(A) Married individuals filing joint returns and surviving spouses.

The amount of the credit allowed pursuant to this subsection for married

individuals filing jointly under subsection (b) of section six hundred

fifty-one and for a surviving spouse shall be:

If New York taxable income is: The credit is the following

percentage of New York

taxable income:

Not over $11,500 0.57%

Over $11,500 but not over $17,500 0.51%

Over $17,500 but not over $24,100 0.36%

Over $24,100 but not over $31,500 0.26%

Over $31,500 but not over $35,500 0.16%

Over $35,500 but not over $42,000 0.11%

Over $42,000 but not over $49,000 0.06%

Over $49,000 0.00%

(B) Heads of households. The amount of the credit allowed pursuant to

this subsection for a head of household shall be:

If New York taxable income is: The credit is the following

percentage of New York

taxable income:

Not over $7,600 0.57%

Over $7,600 but not over $11,700 0.51%

Over $11,700 but not over $16,400 0.36%

Over $16,400 but not over $20,500 0.26%

Over $20,500 but not over $23,800 0.16%

Over $23,800 but not over $28,650 0.11%

Over $28,650 but not over $33,400 0.06%

Over $33,400 0.00%

(C) Unmarried individuals and married individuals filing separate

returns. The amount of the credit allowed pursuant to this subsection

for an individual who is not a married individual filing jointly under

subsection (b) of section six hundred fifty-one nor a head of a

household nor a surviving spouse shall be:

If New York taxable income is: The credit is the following

percentage of New York

taxable income:

Not over $5,600 0.57%

Over $5,600 but not over $8,600 0.51%

Over $8,600 but not over $12,000 0.36%

Over $12,000 but not over $15,700 0.26%

Over $15,700 but not over $17,600 0.16%

Over $17,600 but not over $21,000 0.11%

Over $21,000 but not over $24,500 0.06%

Over $24,500 0.00%

(n) Agricultural property tax credit. (1) General. In the case of a

taxpayer who is an eligible farmer or an eligible farmer who has paid

taxes pursuant to a land contract, there shall be allowed a credit for

the allowable school district property taxes. The term "allowable school

district property taxes" means the school district property taxes paid

during the taxable year on qualified agricultural property, subject to

the acreage limitation provided in paragraph five of this subsection and

the income limitation provided in paragraph six of this subsection. Such

credit shall be allowed against the taxes imposed by this article for

the taxable year reduced by the credits permitted by this article. If

the credit exceeds the tax as so reduced, the taxpayer may receive, and

the comptroller, subject to a certificate of the commissioner, shall pay

as an overpayment, without interest, the amount of such excess.

(1-a) New York gross income from farming. For purposes of this

subsection, the term "New York gross income from farming" means a

taxpayer's federal gross income from farming, plus payments from the

state's farmland protection program, administered by the department of

agriculture and markets, income from a commercial horse boarding

operation as defined by subdivision thirteen of section three hundred

one of the agriculture and markets law, and income from the production

or sale of maple syrup, Christmas trees, and cider or wine from a

licensed New York state farm cidery or winery, as provided for in

section fifty-eight-c and article six of the alcoholic beverage control

law.

(2) Eligible farmer. For purposes of this subsection, the term

"eligible farmer" means a taxpayer whose New York gross income from

farming for the taxable year, or whose average New York gross income

from farming for the current year and two prior taxable years, is at

least two-thirds of such taxpayer's federal gross income from all

sources less thirty thousand dollars. The term "eligible farmer" also

includes an individual other than the taxpayer of record for qualified

agricultural land who has paid the school district property taxes on

such land pursuant to a contract for the future purchase of such land;

provided that such individual meets the definition of "eligible farmer"

pursuant to this paragraph.

(3) School district property taxes. For purposes of this subsection,

the term "school district property taxes" means all property taxes,

special ad valorem levies and special assessments, exclusive of

penalties and interest, levied for school district purposes on the

qualified agricultural property (A) owned by the taxpayer, (B) owned by

the father, mother, grandfather, grandmother, brother or sister of the

taxpayer and a written agreement expressing intent to eventually

purchase the land has been entered into, or (C) owned by trust where the

taxpayer is an immediate family member of the settlor, and where under

the terms of the trust the title to the property shall pass to such

taxpayer upon the death of the settlor.

(4) Qualified agricultural property. For purposes of this subsection,

the term "qualified agricultural property" means land located in this

state which is used in agricultural production, and land improvements,

structures and buildings (excluding buildings used for the taxpayer's

residential purpose) located on such land which are used or occupied to

carry out such production. Qualified agricultural property also includes

land set aside or retired under a federal supply management or soil

conservation program or land that at the time it becomes subject to a

conservation easement, as defined under subsection (kk) of this section,

met the requirements under this paragraph.

(5) Acreage limitation. (A) Eligible taxes. In the event that the

qualified agricultural property owned by the taxpayer includes land in

excess of the base acreage as provided in this paragraph, the amount of

school district property taxes eligible for credit under this subsection

shall be that portion of the school district property taxes which bears

the same ratio to the total school district property taxes paid during

the taxable year, as the acreage allowable under this paragraph bears to

the entire acreage of such land.

(B) Allowable acreage. The allowable acreage is the sum of the base

acreage set forth below and fifty percent of the incremental acreage.

The incremental acreage is the excess of the entire acreage of qualified

agricultural land owned by the taxpayer over the base acreage. Except as

provided in subparagraph (C) of this paragraph:

For taxable years beginning: The base acreage is:

in 1997 100

after 1997 but before 2006 250

2006 and thereafter 350

For taxable years beginning after two thousand, total base acreage may

be increased by any acreage enrolled or participating during the taxable

year in a federal environmental conservation acreage reserve program

pursuant to title three of the federal agriculture improvement and

reform act of nineteen hundred ninety-six.

(C) Base acreage of related persons. Where the taxpayer and one or

more related persons each own qualified agricultural property on the

first day of March of any year, the base acreage under subparagraph (B)

of this paragraph shall be divided equally and allotted among the

taxpayer and such related persons, and the taxpayer's base acreage for

the taxable year which includes such March first shall be limited to its

allotted share. Provided, however, if the taxpayer and all such related

persons consent (at such time and in such manner as the commissioner may

prescribe) to an unequal division, the taxpayer's base acreage for such

taxable year shall be limited to its allotted share under such unequal

division.

(D) Related persons. (i) For purposes of subparagraph (C) of this

paragraph, the term "related person" means:

(I) a spouse;

(II) a corporation subject to tax under article nine-A of this

chapter, where more than fifty percent in value of the outstanding stock

of the corporation is owned, directly or indirectly, by or for the

taxpayer, or, where the taxpayer is a trust, where such stock is owned

directly or indirectly by or for the grantor of such trust;

(III) a partnership, estate or trust of which the taxpayer owns,

directly or indirectly, more than fifty percent of the capital, profits

or beneficial interest.

(ii) For purposes of subparagraph (C) of this paragraph, where the

taxpayer is an estate or trust, the term "related person" shall also

mean a corporation subject to tax under article nine-A of this chapter,

a partnership, an estate or trust:

(I) where more than fifty percent of the beneficial interest in the

taxpayer is owned, directly or indirectly, by or for such corporation,

partnership, estate or trust or by or for the grantor of such trust; or

(II) if the same person owns more than fifty percent of the beneficial

interest in the taxpayer and more than fifty percent in value of the

outstanding stock of the corporation, or more than fifty percent of the

capital or profits interest in the partnership, or more than fifty

percent of the beneficial interest in the estate or trust.

(iii) In determining whether a person is a related person within the

meaning of this subparagraph:

(I) stock owned, directly or indirectly, by or for a corporation,

partnership, estate or trust shall be considered as being owned

proportionately by or for its shareholders, partners or beneficiaries;

(II) an individual shall be considered as owning the stock owned,

directly or indirectly, by or for his spouse;

(III) stock constructively owned by a person by reason of the

application of item (I) of this clause shall, for the purpose of

applying item (I) or (II) of this clause, be treated as actually owned

by such person.

(6) Income limitation. (A) In the event that the modified New York

adjusted gross income of the taxpayer exceeds one hundred thousand

dollars for taxable years beginning before two thousand six or two

hundred thousand dollars for taxable year two thousand six and

thereafter, the allowable school district property taxes under paragraph

one of this subsection shall be the eligible taxes under subparagraph

(A) of paragraph five of this subsection reduced by the product of the

amount of such eligible taxes and a percentage, such percentage to be

determined by multiplying one hundred percent by a fraction, the

numerator of which is the lesser of fifty thousand dollars for taxable

years beginning before two thousand six or one hundred thousand dollars

for taxable year two thousand six and thereafter or the excess of the

taxpayer's modified New York adjusted gross income over one hundred

thousand dollars for taxable years beginning before two thousand six or

two hundred thousand dollars for taxable year two thousand six and

thereafter and the denominator of which is fifty thousand dollars for

taxable years beginning before two thousand six or one hundred thousand

dollars for taxable year two thousand six and thereafter. For purposes

of the preceding sentence, the term "eligible taxes", where the acreage

limitation of paragraph five of this subsection does not apply, shall

mean the total school district property taxes paid during the taxable

year.

(B) The term "modified New York adjusted gross income" means the New

York adjusted gross income for the taxable year reduced by the amount of

principal paid on farm indebtedness during the taxable year. The term

"farm indebtedness" means debt incurred or refinanced which is secured

by farm property, where the proceeds of the debt are disbursed for

expenditures incurred in the business of farming.

(7) Nonqualified use. (A) No credit in conversion year. In the event

that qualified agricultural property is converted by the taxpayer to

nonqualified use, credit under this subsection shall not be allowed with

respect to such property for the taxable year of conversion (the

conversion year).

(B) Credit recapture. If the conversion by the taxpayer of qualified

agricultural property to nonqualified use occurs during the period of

the two taxable years following the taxable year for which the credit

under this subsection was first claimed with respect to such property,

the credit allowed with respect to such property for the taxable years

prior to the conversion year must be added back in the conversion year.

Where the property converted includes land, and where the conversion is

of only a portion of such land, the credit allowed with respect to the

property converted shall be determined by multiplying the entire credit

under this subsection for the taxable years prior to the conversion year

by a fraction, the numerator of which is the acreage converted and the

denominator of which is the entire acreage of such land owned by the

taxpayer immediately prior to the conversion.

(C) Exception to recapture. Subparagraph (B) of this paragraph shall

not apply to the conversion of property where the conversion is by

reason of involuntary conversion, within the meaning of section one

thousand thirty-three of the internal revenue code.

(D) Conversion to nonqualified use. For purposes of this paragraph, a

sale or other disposition of qualified agricultural property alone shall

not constitute a conversion to a nonqualified use.

(9) Election to deem gross income of New York C corporation to

shareholders. (A) General. For purposes of the credit under this

subsection, the shareholders of an eligible corporation may elect to

take into account their pro rata shares of the corporation's income and

principal payments on farm indebtedness as provided in subparagraph (B)

of this paragraph, for the taxable year of the corporation ending with

or within the taxable year of each shareholder. No election under this

paragraph shall be effective unless shareholders holding more than

one-half, by vote and value, of the shares of stock of the corporation

on the day on which the election is made have so elected.

(B) Inclusion in gross and adjusted gross income. (i) For any taxable

year of the corporation for which the election under this paragraph is

in effect, the shareholders of the corporation shall include:

(I) in gross income, for purposes of paragraph two of this subsection,

their pro rata shares of the corporation's gross income, which income

shall have the same character as in the hands of the corporation, and

(II) in adjusted gross income, for purposes of paragraph six of this

subsection, their pro rata shares of the corporation's entire net

income, and

(III) in principal payments on farm indebtedness, for purposes of

paragraph six of this subsection, their pro rata shares of such payments

made by the corporation.

(ii) Tiered New York C and New York S corporation. In the event that a

shareholder of the corporation is a New York S corporation, the New York

S corporation shall make the inclusions prescribed by clause (i) of this

subparagraph (except that the inclusion prescribed by subclause (II) of

such clause shall be in the entire net income of the New York S

corporation), and the New York S corporation shall pass through such

inclusions in pro rata shares to its shareholders for purposes of their

calculation of credit under this subsection.

(C) Eligible corporation. The term "eligible corporation" means a

corporation subject to tax under article nine-A of this chapter which is

a New York C corporation for federal income tax purposes.

(D) Pro rata share. For purposes of this paragraph, the pro rata share

of any item of income or farm indebtedness principal payments for a

taxable year of the corporation shall be determined with respect to a

shareholder by assigning an equal portion of the item to each day of

such taxable year, and then by dividing that portion pro rata among the

shares outstanding on such day.

(E) Election. (i) An election under subparagraph (A) of this paragraph

shall be made on such form and in such manner as the commissioner may

prescribe.

(ii) When made. Such election shall be made no later than the due date

of the corporation tax return (determined without regard to extensions)

for the corporation's taxable year for which the election is to be

effective.

(iii) When effective. Such election shall be effective for the taxable

year of the corporation for which it is made and for all succeeding

taxable years of the corporation, until such election is terminated

under subparagraph (F) of this paragraph.

(F) Termination. (i) Revocation. An election under subparagraph (A) of

this paragraph shall be terminated if shareholders holding more than

one-half, by vote and value, of the shares of stock of the corporation

on the day on which the revocation is made revoke the election. Such

revocation shall be made on such form and in such manner as the

commissioner may prescribe, and shall be effective on the first day of

the corporation's taxable year following the date on which the

revocation is made.

(ii) Ineligible corporation. An election under subparagraph (A) of

this paragraph shall be terminated on the first day of the corporation's

taxable year with respect to which the corporation ceases to be an

eligible corporation.

(G) Election after termination. If an election is terminated under

subparagraph (F) of this paragraph, no further election under

subparagraph (A) of this paragraph shall be made before the fifth

taxable year of the corporation following the taxable year during which

the termination occurred, unless the commissioner consents to such

election.

(H) Waiver of secrecy. The commissioner shall have authority to reveal

to shareholders of the corporation any information with respect to

income or farm indebtedness principal payments of the corporation, for

any taxable year of the corporation for which the election under this

paragraph is in effect, which is the basis for denial in whole or in

part of the credit claimed by such shareholders.

(n-1) Homeowner tax rebate credit. (1) An individual taxpayer who

meets the eligibility standards in paragraph two of this subsection

shall be allowed a credit against the taxes imposed by this article in

the amount specified in paragraph three of this subsection for tax year

two thousand twenty-two.

(2) To be eligible for the credit, the taxpayer (or taxpayers filing

joint returns) (a) must own and primarily reside in real property

receiving either the STAR exemption authorized by section four hundred

twenty-five of the real property tax law or the school tax relief credit

authorized by subsection (eee) of this section, and (b) must have had

qualified gross income no greater than two hundred fifty thousand

dollars in tax year two thousand twenty.

(3) Amount of credit. (a) For a taxpayer who owned and primarily

resided in real property receiving the basic STAR exemption or who

received the basic STAR credit, the amount of the credit shall equal the

STAR tax savings associated with such basic STAR exemption in the two

thousand twenty-one--two thousand twenty-two school year, multiplied by

the following percentage:

(i) For a taxpayer whose primary residence is located outside the city

of New York:

Qualified Gross Income Percentage

Not over $75,000 163%

Over $75,000 but not over $150,000 115%

Over $150,000 but not over $200,000 66%

Over $200,000 but not over $250,000 18%

Over $250,000 No credit

(ii) For a taxpayer whose primary residence is located within the city

of New York:

Qualified Gross Income Percentage

Not over $75,000 125%

Over $75,000 but not over $150,000 115%

Over $150,000 but not over $200,000 105%

Over $200,000 but not over $250,000 100%

Over $250,000 No credit

(b) For a taxpayer who owned and primarily resided in real property

receiving the enhanced STAR exemption or who received the enhanced STAR

credit, the amount of the credit shall equal the STAR tax savings

associated with such enhanced STAR exemption in the two thousand

twenty-one--two thousand twenty-two school year, multiplied by sixty-six

percent if the taxpayer's primary residence is located outside the city

of New York, or one hundred ten percent if the taxpayer's primary

residence is located within the city of New York.

(c) In no case may the amount of the credit allowed under this

subsection exceed the school district taxes due with respect to the

residence for that school year, nor shall any credit be allowed under

this subsection if the amount determined pursuant to this paragraph is

less than one hundred dollars.

(4) For purposes of this subsection:

(a) "Qualified gross income" means the adjusted gross income of the

qualified taxpayer for the taxable year as reported for federal income

tax purposes, or which would be reported as adjusted gross income if a

federal income tax return were required to be filed. In computing

qualified gross income, the net amount of loss reported on Federal

Schedule C, D, E, or F shall not exceed three thousand dollars per

schedule. In addition, the net amount of any other separate category of

loss shall not exceed three thousand dollars. The aggregate amount of

all losses included in computing qualified gross income shall not exceed

fifteen thousand dollars.

(b) "STAR tax savings" means the tax savings attributable to the basic

or enhanced STAR exemption, whichever is applicable, within a portion of

a school district, as determined by the commissioner pursuant to

subdivision two of section thirteen hundred six-a of the real property

tax law.

(5) If the amount of the credit allowed under this subsection shall

exceed the taxpayer's tax for the taxable year, the excess shall be

treated as an overpayment of tax to be credited or refunded in

accordance with the provisions of section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon. For

each year this credit is allowed, on or before October fifteenth of such

year, or as soon thereafter as is practicable, the commissioner shall

determine the taxpayer's eligibility for this credit utilizing the

information available to the commissioner on the taxpayer's personal

income tax return filed for the taxable year two years prior to the

taxable year in which the credit is allowed. For those taxpayers whom

the commissioner has determined eligible for this credit, the

commissioner shall advance a payment in the amount specified in

paragraph three of this subsection, which payment shall be issued, to

the greatest extent practicable, by October thirty-first of each year

the credit is allowed. A taxpayer who has failed to receive an advance

payment that he or she believes was due to him or her, or who has

received an advance payment that he or she believes is less than the

amount that was due to him or her, may request payment of the claimed

deficiency in a manner prescribed by the commissioner.

(6) A taxpayer shall not be eligible for the credit allowed under this

subsection if the school district taxes levied upon the residence during

the taxable year remain unpaid sixty days after the last date on which

they could have been paid without interest, or in the case of a school

district where such taxes are payable in installments, if such taxes

remain unpaid sixty days after the last date on which the final

installment could have been paid without interest. If the taxes remain

unpaid on such sixtieth day, the amount of credit claimed by the

taxpayer under this subsection or the amount of advance payment of

credit received by the taxpayer pursuant to paragraph five of this

subsection shall be added back as tax on the income tax return for the

taxable year in which such sixtieth day occurs.

(7) Only one credit per residence shall be allowed per taxable year

under this subsection. When two or more members of a residence are able

to meet the qualifications for a qualified taxpayer, the credit shall be

equally divided between or among such individuals. In the case of

spouses who file a joint federal return but who are required to

determine their New York taxes separately, the credit allowed pursuant

to this subsection may be applied against the tax of either or divided

between them as they may elect.

(n-2) Credit for farm donations to food pantries. (1) General. In the

case of a taxpayer who is an eligible farmer, there shall be allowed a

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

by this article for taxable years beginning on and after January first,

two thousand eighteen. The amount of the credit shall be twenty-five

percent of the fair market value of the taxpayer's qualified donations

made to any eligible food pantry during the taxable year, not to exceed

five thousand dollars per taxable year for taxable years ending before

January first, two thousand twenty-six, and fifty percent of the fair

market value of the taxpayer's qualified donations made to any eligible

food pantry during the taxable year, not to exceed twenty thousand

dollars per taxable year, for taxable years beginning on and after

January first, two thousand twenty-six. If the taxpayer is a partner in

a partnership or a shareholder of a New York S corporation, then the cap

imposed by the preceding sentence shall be applied at the entity level,

so that the aggregate credit allowed to all partners or shareholders of

such entity in the taxable year does not exceed five thousand dollars

for taxable years ending before January first, two thousand twenty-six,

and twenty thousand dollars for taxable years beginning on and after

January first, two thousand twenty-six.

(2) Eligible farmer. For purposes of this subsection, the term

"eligible farmer" shall have the same meaning as set forth in subsection

(n) of this section.

(3) Qualified donation. For purposes of this subsection, the term

"qualified donation" means a donation of any apparently wholesome food,

as defined in section 170(e)(3)(C)(vi) of the internal revenue code,

grown or produced within this state, by an eligible farmer to an

eligible food pantry.

(4) Eligible food pantry. For purposes of this subsection, the term

"eligible food pantry" means any food pantry, food bank, or other

emergency food program operating within this state that has qualified

for tax exemption under section 501(c)(3) of the internal revenue code.

(5) Determination of fair market value. For purposes of this

subsection, to determine the fair market value of apparently wholesome

food donated to an eligible food pantry, the standards set forth under

section 170(e)(3)(C)(v) of the internal revenue code shall apply.

(6) Record of donation. To claim a credit under this subsection, a

taxpayer must get and keep a receipt from the eligible food pantry

showing: (i) the name of the eligible food pantry; (ii) the date and

location of the qualified donation; and (iii) a reasonably detailed

description of the qualified donation. A letter or other written

communication from the eligible food pantry acknowledging receipt of the

contribution and containing the information in subparagraphs (i), (ii),

and (iii) of this paragraph will serve as a receipt.

(7) Application of credit. A taxpayer shall be allowed a credit under

this subsection against the tax imposed by this article. However, if the

amount of credit allowed under this subsection for any taxable year

exceeds the taxpayer's tax for such year, the excess will be treated as

an overpayment of tax to be credited or refunded in accordance with the

provisions of section six hundred eighty-six of this article. Provided,

however, the provisions of subsection (c) of section six hundred

eighty-eight of this article notwithstanding, no interest will be paid

thereon.

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

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

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

employing within the state a qualified employee.

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

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

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

responsible for provision of vocation rehabilitation services to the

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

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

as having completed or as receiving services under an individualized

written rehabilitation plan approved by the education department or

other state agency responsible for providing vocational rehabilitation

services to such individual; and

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

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

hours.

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

subsection, the amount of credit for taxable years beginning before

January first, two thousand twenty-five shall be thirty-five percent of

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

each qualified employee and for taxable years beginning on or after

January first, two thousand twenty-five shall be the first five thousand

dollars in qualified first-year wages earned by each qualified employee.

"Qualified first-year wages" means wages paid or incurred by the

taxpayer during the taxable year to qualified employees which are

attributable, with respect to any such employee, to services rendered

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

work for the taxpayer.

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

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

paragraph three of this subsection also constitute qualified first-year

wages for purposes of the work opportunity tax credit for vocational

rehabilitation referrals under section fifty-one of the internal revenue

code, the amount of credit under this subsection shall be for taxable

years beginning before January first, two thousand twenty-five

thirty-five percent of the first six thousand dollars in qualified

second-year wages earned by each such employee and for taxable years

beginning on or after January first, two thousand twenty-five shall be

the first five thousand dollars in qualified second-year wages earned by

each qualified employee. "Qualified second-year wages" means wages paid

or incurred by the taxpayer during the taxable year to qualified

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

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

the employee begins work for the taxpayer.

(5) Carryover. If the amount of credit allowable under this subsection

for any taxable year shall exceed the taxpayer's tax for such year, the

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

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

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

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

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

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

rehabilitation referrals shall apply to the credit under this subsection

to the extent that such sections are consistent with the specific

provisions of this subsection, provided that in the event of a conflict

the provisions of this subsection shall control.

(p) Alternative fuels and electric vehicle recharging property credit.

(1) General. A taxpayer shall be allowed a credit, to be computed as

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

alternative fuel vehicle refueling and electric vehicle recharging

property placed in service during the taxable year.

(2) (a) Alternative fuel vehicle refueling property and electric

vehicle recharging property. The credit under this subsection for

alternative fuel vehicle refueling property or electric vehicle

recharging property shall equal for each installation of property the

lesser of five thousand dollars or the product of fifty percent and the

cost of any such property less any costs paid from the proceeds of

grants.

(b) To qualify for the credit, the property must:

(i) be located in this state;

(ii) constitute alternative fuel vehicle refueling property or

electric vehicle recharging property; and

(iii) not be paid for from the proceeds of grants awarded before

January first, two thousand fifteen, including grants from the New York

state energy research and development authority or the New York power

authority.

(3) Definitions. (A) The term "alternative fuel vehicle refueling

property" means all of the equipment needed to dispense any fuel at

least eighty-five percent of the volume of which consists of one or more

of the following: natural gas, liquified natural gas, liquified

petroleum, or hydrogen; and

(B) The term "electric vehicle recharging property" means all the

equipment needed to convey electric power from the electric grid or

another power source to an onboard vehicle energy storage system.

(4) Carryovers. If the amount of credit allowable under this

subsection shall exceed the taxpayer's tax for such year, the excess may

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

the taxpayer's tax for such year or years.

(5) Credit recapture. (A) If, at any time before the end of its

recovery period, alternative fuel vehicle refueling property or electric

vehicle recharging property ceases to be qualified, a recapture amount

must be added back in the tax year in which such cessation occurs.

(B) Cessation of qualification. Alternative fuel vehicle refueling

property or electric vehicle recharging property ceases to be qualified

if:

(i) the property no longer qualifies as alternative fuel vehicle

refueling property or electric vehicle recharging property, or

(ii) fifty percent or more of the use of the property in a taxable

year is other than in a trade or business in this state, or

(iii) the taxpayer receiving the credit under this subsection sells or

disposes of the property and knows or has reason to know that the

property will be used in a manner described in clause (i) or (ii) of

this subparagraph.

(C) Recapture amount. The recapture amount is equal to the credit

allowable under this subsection multiplied by a fraction, the numerator

of which is the total recovery period for the property minus the number

of recovery years prior to, but not including, the recapture year, and

the denominator of which is the total recovery period.

(6) Termination. The credit allowed by this subsection shall not apply

in taxable years beginning after December thirty-first, two thousand

twenty-eight.

(q) Qualified emerging technology company employment credit. (1) A

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

provided, against the tax imposed by this article, provided:

(A) the taxpayer is a sole proprietor of a qualified emerging

technology company, a member of a partnership which is a qualified

emerging technology company, or a shareholder of a New York S

corporation which is a qualified emerging technology company, as defined

in section thirty-one hundred two-e of the public authorities law; and

(B) the average number of individuals employed full-time by such

company in New York state during the taxable year is at least one

hundred one percent of such company's base year employment. For the

purposes of this subsection, "base year employment" means the average

number of individuals employed full-time by such company in the state

during the three taxable years immediately preceding the first taxable

year in which the credit is claimed. Where such company provided

full-time employment within the state during only a portion of such

three-year period, then for purposes of this subsection, the term "three

years" shall be deemed to refer instead to such portion, provided,

however, the first taxable year for which this credit may be taken with

respect to such company shall be the next year following the first full

taxable year that such company had full-time employment in New York

state.

(2) The credit shall be allowed only in the first taxable year in

which the credit is claimed and in each of the next two taxable years,

provided that the conditions of paragraph one of this subsection are

satisfied in each taxable year.

(3) For the purposes of this subsection, average number of individuals

employed full-time shall be computed by adding the number of such

individuals employed by such company at the end of each quarter during

each taxable year or other applicable period and dividing the sum so

obtained by the number of such quarters occurring within such taxable

year or other applicable period; provided, however, that in computing

base year employment there shall be excluded therefrom any employee with

respect to whom a credit provided for under subsection (k) of this

section is claimed for the taxable year.

(4) The amount of the credit shall equal the product of one thousand

dollars multiplied by the number of individuals employed full-time by

such company in the taxable year that are in excess of one hundred

percent of such company's base year employment.

(5) If the amount of credit allowed under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, the excess

shall be treated as an overpayment of tax to be credited or refunded in

accordance with the provisions of section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon.

(r) Qualified emerging technology company capital tax credit. (1) A

taxpayer shall be allowed a credit against the tax imposed by this

article. The amount of the credit shall be equal to one of the following

percentages, per each qualified investment in a qualified emerging

technology company as defined in section thirty-one hundred two-e of the

public authorities law, made during the taxable year, and certified by

the commissioner, either:

(A) ten percent of qualified investments in qualified emerging

technology companies, except for investments made by or on behalf of an

owner of the business, including, but not limited to, a stockholder,

partner or sole proprietor, or any related person, as defined in

subparagraph (C) of paragraph three of subsection (b) of section four

hundred sixty-five of the internal revenue code, and provided, however,

that the taxpayer certifies to the commissioner that the qualified

investment will not be sold, transferred, traded, or disposed of during

the four years following the year in which the credit is first claimed;

or

(B) twenty percent of qualified investments in qualified emerging

technology companies, except for investments made by or on behalf of an

owner of the business, including, but not limited to, a stockholder,

partner or sole proprietor, or any related person, as defined in

subparagraph (C) of paragraph three of subsection (b) of section four

hundred sixty-five of the internal revenue code, and provided, however,

that the taxpayer certifies to the commissioner that the qualified

investment will not be sold, transferred, traded, or disposed of during

the nine years following the year in which the credit is first claimed.

(C) "Qualified investment" means the contribution of property to a

corporation in exchange for original issue capital stock or other

ownership interest, the contribution of property to a partnership in

exchange for an interest in the partnership, and similar contributions

in the case of a business entity not in corporate or partnership form in

exchange for an ownership interest in such entity. The total amount of

credit allowable to a taxpayer under this provision for all years, taken

in the aggregate, shall not exceed one hundred fifty thousand dollars in

the case of investments made pursuant to subparagraph (A) of this

paragraph and shall not exceed three hundred thousand dollars in the

case of investments made pursuant to subparagraph (B) of this paragraph.

(2) (A) If the amount of the credit and carryovers of such credit

allowed under this subsection for any taxable year shall exceed the

taxpayer's tax for such year, any amount of credit or carryovers of such

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

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

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

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

not, in the aggregate, exceed fifty percent of the tax imposed under

section six hundred one computed without regard to any credit provided

for by this section.

(B) In the case of a husband or wife who is required to file a

separate return, the limitations provided for in subparagraph (c) of

paragraph one of this subsection shall be seventy-five thousand dollars

in lieu of one hundred fifty thousand dollars, and one hundred fifty

thousand dollars in lieu of three hundred thousand dollars, unless the

spouse of the taxpayer has no credit allowable under this subsection for

the taxable year of such spouse which ends within or with the taxpayer's

taxable year.

(C) In the case of an estate or trust, the limitations provided for in

paragraph one of this subsection shall be reduced to an amount which

bears the same ratio to one hundred fifty thousand dollars and an amount

which bears the same ratio to three hundred thousand dollars as the

portion of the income of the estate or trust which is not allocated to

beneficiaries bears to the total income of the estate or trust.

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

corporate stock, a partnership interest or other ownership interest

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

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

subparagraph (A) of paragraph one of this subsection, or where an

investment which was the basis for such allowance is, in whole or in

part, recovered by such taxpayer, and such disposition or recovery

occurs during the taxable year or within forty-eight months from the

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

the taxpayer shall add back, with respect to the taxable year in which

the disposition or recovery described above occurred, the required

portion of the credit originally allowed.

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

corporate stock, a partnership interest or other ownership interest

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

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

subparagraph (B) of paragraph one of this subsection, or where an

investment which was the basis for such allowance is in any manner, in

whole or in part, recovered by such taxpayer, and such disposition or

recovery occurs during the taxable year or within one hundred eight

months from the close of the taxable year with respect to which such

credit is allowed, the taxpayer shall add back, with respect to the

taxable year in which the disposition or recovery described in

subparagraph one of this paragraph occurred the required portion of the

credit originally allowed.

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

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

disposed of and (ii) the applicable percentage.

(D) The applicable percentage shall be:

(i) for credits allowed pursuant to subparagraph (A) of paragraph one

of this subsection:

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

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

twelve months of the end of such taxable year,

(II) seventy-five percent, if the disposition or recovery occurs more

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

taxable year with respect to which the credit is allowed,

(III) fifty percent, if the disposition or recovery occurs more than

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

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

(IV) twenty-five percent, if the disposition or recovery occurs more

than thirty-six months but not more than forty-eight months after the

end of the taxable year with respect to which the credit is allowed; or

(ii) for credits allowed pursuant to subparagraph (B) of paragraph one

of this subsection:

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

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

twelve months of the end of such taxable year,

(II) eighty percent, if the disposition or recovery occurs more than

twelve but not more than forty-eight months after the end of the taxable

year with respect to which the credit is allowed,

(III) sixty percent, if the disposition or recovery occurs more than

forty-eight months but not more than seventy-two months after the end of

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

(IV) forty percent, if the disposition or recovery occurs more than

seventy-two months but not more than ninety-six months after the end of

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

(V) twenty percent, if the disposition or recovery occurs more than

ninety-six months but not more than one hundred eight months after the

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

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

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

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

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

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

the cost to the taxpayer of automated external defibrillators purchased

during the taxable year, such credit not to exceed five hundred dollars

with respect to each unit purchased.

(t) College tuition credit. (1) General. A resident taxpayer shall be

allowed the option of claiming a credit, to be computed as provided in

paragraph four of this subsection, against the tax imposed by this

article, or an itemized deduction, to be computed as provided in

paragraph four of subsection (d) of section six hundred fifteen of this

article, for allowable college tuition expenses.

(2) Allowable and qualified college tuition expenses. For the purposes

of this credit and the itemized deduction provided by paragraph four of

subsection (d) of section six hundred fifteen of this article:

(A) The term "allowable college tuition expenses" shall mean the

amount of qualified college tuition expenses of eligible students paid

by the taxpayer during the taxable year, limited to ten thousand dollars

for each such student;

(B) The term "eligible student" shall mean the taxpayer, the

taxpayer's spouse, and any dependent of the taxpayer with respect to

whom the taxpayer is allowed an exemption under section six hundred

sixteen of this article for the taxable year;

(C) The term "qualified college tuition expenses" shall mean the

tuition required for the enrollment or attendance of an eligible student

at an institution of higher education. Provided, however, tuition

payments made pursuant to the receipt of any scholarships or financial

aid, or tuition required for enrollment or attendance in a course of

study leading to the granting of a post baccalaureate or other graduate

degree, shall be excluded from the definition of "qualified college

tuition expenses".

(D) Expenses paid by dependent. If an exemption under section six

hundred sixteen of this article with respect to an individual is allowed

to another taxpayer for a taxable year beginning in the calendar year in

which such individual's taxable year begins,

(i) no credit under this subsection or deduction under paragraph four

of subsection (d) of section six hundred fifteen of this article shall

be allowed to such individual for such individual's taxable year, and

(ii) for purposes of such credit or deduction, qualified college

tuition expenses paid by such individual during such individual's

taxable year shall be treated as paid by such other taxpayer.

(3) Institution of higher education. For the purposes of this credit

and the itemized deduction provided by paragraph four of subdivision (d)

of section six hundred fifteen of this article, the term "institution of

higher education" shall mean any institution of higher education or

business, trade, technical or other occupational school, recognized and

approved by the regents, or any successor organization, of the

university of the state of New York or accredited by a nationally

recognized accrediting agency or association accepted as such by the

regents, or any successor organization, of the university of the state

of New York, which provides a course of study leading to the granting of

a post-secondary degree, certificate or diploma.

(4) Amount of credit. If allowable college tuition expenses are less

than five thousand dollars, the amount of the credit provided under this

subsection shall be equal to the applicable percentage of the lesser of

allowable college tuition expenses or two hundred dollars. If allowable

college tuition expenses are five thousand dollars or more, the amount

of the credit provided under this subsection shall be equal to the

applicable percentage of the allowable college tuition expenses

multiplied by four percent. Such applicable percentage shall be

twenty-five percent for taxable years beginning in two thousand one,

fifty percent for taxable years beginning in two thousand two,

seventy-five percent for taxable years beginning in two thousand three

and one hundred percent for taxable years beginning after two thousand

three.

(5) Refundability. The credit under this subsection shall be allowed

against the taxes imposed by this article for the taxable year reduced

by the credits permitted by this article. If the credit exceeds the tax

as so reduced, the taxpayer may receive, and the comptroller, subject to

a certificate of the commissioner, shall pay as an overpayment, without

interest, the amount of such excess.

(6) Limitation. No credit shall be allowed under this subsection to a

taxpayer who claims the itemized deduction provided under paragraph four

of subdivision (d) of section six hundred fifteen of this article.

* (t-1) IMB credit for energy taxes. (1) Allowance of credit. A

taxpayer which is a sole proprietor of an industrial or manufacturing

business (IMB), or a member of a partnership which is an IMB, shall be

allowed a credit for energy taxes, to be computed as provided in section

fourteen-a of this chapter, against the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year shall exceed the taxpayer's tax for

such year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

shall be paid thereon.

* NB Expired for taxable years ending on and after January 1, 2007

** (u) Musical and theatrical production credit. (1) Allowance of

credit. A taxpayer who is eligible pursuant to section twenty-four-a of

this chapter shall be allowed a credit to be computed as provided in

such section against the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowable under

this subsection for any taxable year exceeds the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded as provided in section six hundred eighty-six of

this article, provided, however, that no interest shall be paid thereon.

** NB Repealed January 1, 2030

* (v) Television writers' and directors' fees and salaries credit. (1)

Allowance of credit. A taxpayer who is eligible pursuant to section

twenty-four-b of this chapter shall be allowed a credit to be computed

as provided in such section against the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowable under

this subsection for any taxable year exceeds the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded as provided in section six hundred eighty-six of

this article, provided, however, that no interest shall be paid thereon.

* NB Effective on the first of January next succeeding the date the

department of economic development provides notice to the legislative

bill drafting commission of a determination pursuant to § 6 sb 2 (b) of

chapter 683 of 2019

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

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

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

provided in section eighteen of this chapter.

(2) Application of credit. If the amount of credit allowable under

this subsection for any taxable year shall exceed the taxpayer's tax for

such year, the excess may be carried over to the following year or

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

years.

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

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

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

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

this chapter, against the tax imposed by this article.

(2) Carryovers. If the amount of the credit and carryovers of such

credit allowed under this subsection for any taxable year shall exceed

the taxpayer's tax for such year, the excess, as well as any part of the

credit or carryovers of such credit, or both, may be carried over to the

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

such year or years.

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

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

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

this article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year shall exceed the taxpayer's tax for

such year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

shall be paid thereon.

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

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

(aa) Long-term care insurance credit. (1) Residents. There shall be

allowed a credit against the tax imposed by this article in an amount

equal to twenty percent of the premiums paid during the taxable year for

long-term care insurance. The credit amount shall not exceed one

thousand five hundred dollars and shall be allowed only if the amount of

New York adjusted gross income required to be reported on the return is

less than two hundred fifty thousand dollars. In order to qualify for

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

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

qualifies for such credit pursuant to section one thousand one hundred

seventeen of the insurance law. If the amount of the credit allowable

under this subsection for any taxable year shall exceed the taxpayer's

tax for such year, the excess may be carried over to the following year

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

years.

(2) Nonresidents and part-year residents. In the case of a nonresident

taxpayer or a part-year resident taxpayer, the credit determined under

this subsection shall be limited to the amount determined by multiplying

the amount of such credit by the New York source fraction as set forth

in paragraph three of subsection (e) of section six hundred one of this

article. The credit as so limited shall be applied as provided in

paragraph one of this subsection.

(bb) QEZE credit for real property taxes. (1) Allowance of credit. A

taxpayer which is a sole proprietor of a qualified empire zone

enterprise (QEZE), or a member of a partnership which is a QEZE, shall

be allowed a credit for eligible real property taxes, to be computed as

provided in section fifteen of this chapter, against the tax imposed by

this article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year shall exceed the taxpayer's tax for

such year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

shall be paid thereon.

(cc) QEZE tax reduction credit. Allowance of credit. A taxpayer which

is a sole proprietor of a qualified empire zone enterprise (QEZE), or a

member of a partnership which is a QEZE, shall be allowed a QEZE tax

reduction credit against the tax imposed by subsections (a) through (e)

of section six hundred one of this part.

(dd) Brownfield redevelopment tax credit. (1) Allowance of credit. A

taxpayer shall be allowed a credit, to be computed as provided in

section twenty-one of this chapter, against the tax imposed by this

article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year shall exceed the taxpayer's tax for

such year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

shall be paid thereon.

(ee) Remediated brownfield credit for real property taxes for

qualified sites. (1) Allowance of credit. A taxpayer which is a

developer of a qualified site shall be allowed a credit for eligible

real property taxes, to be computed as provided in subdivision (b) of

section twenty-two of this chapter, against the tax imposed by this

article. For purposes of this subsection, the terms "qualified site" and

"developer" shall have the same meaning as set forth in paragraphs two

and three, respectively, of subdivision (a) of section twenty-two of

this chapter.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year shall exceed the taxpayer's tax for

such year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

shall be paid thereon.

(ff) Environmental remediation insurance credit. (1) Allowance of

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

in section twenty-three of this chapter, against the tax imposed by this

article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year shall exceed the taxpayer's tax for

such year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

shall be paid thereon.

(gg) Empire state film production credit. (1) Allowance of credit. A

taxpayer who is eligible pursuant to section twenty-four of this chapter

shall be allowed a credit to be computed as provided in such section

twenty-four against the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowable under

this subsection for any taxable year exceeds the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded as provided in section six hundred eighty-six of

this article, provided, however, that no interest shall be paid thereon.

(gg-1) Empire state independent film production credit. (1) Allowance

of credit. A taxpayer who is eligible pursuant to section twenty-four-d

of this chapter shall be allowed a credit to be computed as provided in

such section twenty-four-d against the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowable under

this subsection for any taxable year exceeds the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded as provided in section six hundred eighty-six of

this article, provided, however, that no interest shall be paid thereon.

(hh) Nursing home assessment credit. (1) Allowance of credit. A

taxpayer shall be allowed a credit against the tax imposed by this

article equal to the amount that directly relates to the assessment

imposed on a residential health care facility pursuant to paragraph (b)

of subdivision two of section twenty-eight hundred seven-d of the public

health law which is separately stated and accounted for on the billing

statement of a resident of a residential health care facility and is

paid directly by the individual taxpayer.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year shall exceed the taxpayer's tax for

such year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

shall be paid thereon.

(ii) Security training tax credit. (1) Allowance of credit. A taxpayer

shall be allowed a credit, to be computed as provided in section

twenty-six of this chapter, against the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year shall exceed the taxpayer's tax for

such year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

shall be paid thereon.

* (jj) Empire state commercial production credit. (1) Allowance of

credit. A taxpayer that is eligible pursuant to the provisions of

section twenty-eight of this chapter shall be allowed a credit to be

computed as provided in such section against the tax imposed by this

article. The tax credit allowed pursuant to this section shall apply to

taxable years beginning before January first, two thousand twenty-nine.

(2) Application of credit. If the amount of the credit allowable under

this subsection for any taxable year exceeds the taxpayer's tax for such

year, fifty percent of the excess shall be treated as an overpayment of

tax to be credited or refunded as provided in section six hundred

eighty-six of this article, provided, however, that no interests shall

be paid thereon. The balance of such credit not credited or refunded in

such taxable year may be carried over to the immediately succeeding

taxable year and may be deducted from the taxpayer's tax for such year.

The excess, if any, of the amount of the credit over the tax for such

succeeding year shall be treated as an overpayment of tax to be credited

or refunded as provided in section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon.

* NB There are 2 sb (jj)'s

* (jj) Biofuel production credit. A taxpayer shall be allowed a credit

to be computed as provided in section twenty-eight of this chapter, as

added by part X of chapter sixty-two of the laws of two thousand six,

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

allowed under this subsection for any taxable year shall exceed the

taxpayer's tax for such year, the excess shall be treated as an

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

provisions of section six hundred eighty-six of this article, provided,

however, that no interest shall be paid thereon. The tax credit allowed

pursuant to this section shall apply to taxable years beginning before

January first, two thousand twenty.

* NB There are 2 sb (jj)'s

(kk) Conservation easement tax credit. (1) Credit allowed. In the case

of a taxpayer who owns land that is subject to a conservation easement

held by a public or private conservation agency, there shall be allowed

a credit for twenty-five percent of the allowable school district,

county and town real property taxes on such land. In no event shall the

credit allowed under this subsection in combination with any other

credit for such school district, county and town real property taxes

under this section exceed such taxes.

(2) Conservation easement. For purposes of this subsection, the term

"conservation easement" means a perpetual and permanent conservation

easement as defined in article forty-nine of the environmental

conservation law that serves to protect open space, scenic, natural

resources, biodiversity, agricultural, watershed and/or historic

preservation resources. Any conservation easement for which a tax credit

is claimed under this subsection shall be filed with the department of

environmental conservation, as provided for in article forty-nine of the

environmental conservation law and such conservation easement shall

comply with the provisions of title three of such article, and the

provisions of subdivision (h) of section 170 of the internal revenue

code. Dedications of land for open space through the execution of

conservation easements for the purpose of fulfilling density

requirements to obtain subdivision or building permits shall not be

considered a conservation easement under this subsection.

(3) Land. For purposes of this subsection, the term "land" means a fee

simple title to real property located in this state, with or without

improvements thereon; rights of way; water and riparian rights;

easements; privileges and all other rights or interests of any land or

description in, relating to or connected with real property, excluding

buildings, structures, or improvements.

(4) Public or private conservation agency. For purposes of this

subsection, the term "public or private conservation agency" means any

state, local, or federal governmental body; or any private

not-for-profit charitable corporation or trust which is authorized to do

business in the state of New York, is organized and operated to protect

land for natural resources, conservation or historic preservation

purposes, is exempt from federal income taxation under section 501(c)(3)

of the internal revenue code, and has the power to acquire, hold and

maintain land and/or interests in land for such purposes.

(5) Credit limitation. The amount of the credit that may be claimed by

a taxpayer pursuant to this subsection shall not exceed five thousand

dollars in any given year.

(6) Application of the credit. If the amount of the credit under this

subsection for any taxable year shall exceed the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

shall be paid therein.

(ll) Home heating system credit. (1) Allowance of credit for

replacement. A taxpayer shall be allowed a credit against the tax

imposed by this article for costs incurred on or after July first, two

thousand six and before July first, two thousand seven by a taxpayer

which are directly associated with the replacement of an existing home

heating system, in his or her principal residence, if such residence is

located in this state, provided such home heating system after such

replacement qualifies for, and is labeled with, an Energy Star label by

the manufacturer, pursuant to an agreement among the manufacturer, the

United States environmental protection agency and the United States

department of energy. The amount of the credit shall be equal to fifty

percent of the cost of such replacement but such credit shall not exceed

five hundred dollars.

(2) Multiple taxpayers. If the principal residence is shared by two or

more taxpayers, the amount of the credit allowable under this subsection

for each such eligible taxpayer shall be prorated according to the

percentage of the total expenditure for such replacement incurred by

each taxpayer.

(3) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year shall exceed the taxpayer's tax for

such year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

shall be paid thereon.

(mm) Clean heating fuel credit. (1) A taxpayer shall be allowed a

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

computed as hereinafter provided, shall be allowed for bioheating fuel,

used for space heating or hot water production for residential purposes

within this state and purchased on or after July first, two thousand six

and before July first, two thousand seven and on or after January first,

two thousand eight and before January first, two thousand twenty-nine.

Such credit shall be $0.01 per percent of biodiesel per gallon of

bioheating fuel, not to exceed twenty cents per gallon, purchased by

such taxpayer. Provided, however, that on or after January first, two

thousand seventeen, this credit shall not apply to bioheating fuel that

is less than six percent biodiesel per gallon of bioheating fuel.

(2) For purposes of this subsection, the following definitions shall

apply:

(a) "Biodiesel" shall mean a fuel comprised exclusively of mono-alkyl

esters of long chain fatty acids derived from vegetable oils or animal

fats, designated B100, which meets the specifications of American

Society of Testing and Materials designation D 6751.

(b) "Bioheating fuel" shall mean a fuel comprised of biodiesel or

renewable hydrocarbon diesel blended with conventional home heating oil,

which meets the specifications of the American Society of Testing and

Materials designation D 396 or D 975.

(3) If the amount of the credit allowed under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, the excess

shall be treated as an overpayment of tax to be credited or refunded in

accordance with the provisions of section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon.

(nn) Qualified emerging technology company facilities, operations and

training credit. (1) A taxpayer that is a qualified emerging technology

company pursuant to the provisions of section thirty-one hundred two-e

(and specifically for the activities referenced in paragraph (b) of

subdivision one of such section thirty-one hundred two-e) of the public

authorities law, and that meets the eligibility requirements in

paragraph two of this subsection, shall be allowed a credit against the

tax imposed by this article. The amount of credit shall be equal to the

sum (or pro rata share of the sum in the case of a partnership) of the

amounts specified in paragraphs three, four, and five of this

subsection, subject to the limitations in paragraph six of this

subsection.

(2) An eligible taxpayer shall (i) have no more than one hundred

full-time employees, of which at least seventy-five percent are employed

in New York state,

(ii) have a ratio of research and development funds to net sales, as

referred to in section thirty-one hundred two-e of the public

authorities law, which equals or exceeds six percent during its taxable

year, and

(iii) have gross revenues, along with the gross revenues of its

affiliates and related members, not exceeding twenty million dollars for

the taxable year immediately preceding the year the taxpayer is allowed

a credit under this subsection. For purposes of this paragraph, the term

"related member" shall have the same meaning as set forth in clauses (A)

and (B) of subparagraph one of paragraph (o) of subdivision 9 of section

two hundred eight of this chapter, and the term "affiliates" shall mean

those corporations that are members of the same affiliated group (as

defined in section fifteen hundred four of the internal revenue code) as

the taxpayer.

(3) An eligible taxpayer shall be allowed a credit for eighteen per

centum of the cost or other basis for federal income tax purposes of

research and development property as defined in subparagraph (B) of

paragraph two of subsection (a) of this section that is acquired by the

taxpayer by purchase as defined in section 179(d) of the internal

revenue code and is placed in service during the taxable year. Provided,

however, for the purposes of this paragraph only, an eligible taxpayer

shall be allowed a credit for such percentage of the (i) cost or other

basis for federal income purposes for property used in the testing or

inspection of materials and products,

(ii) the costs or expenses associated with quality control of the

research and development,

(iii) fees for use of sophisticated technology facilities and

processes, and

(iv) fees for production or eventual commercial distribution of

materials and products resulting from the activities of an eligible

taxpayer as long as such activities fall under the activities listed in

paragraph (b) of subdivision one of section thirty-one hundred two-e of

the public authorities law. The costs, expenses and other amounts for

which a credit is allowed and claimed under this paragraph shall not be

used in the calculation of any other credit allowed under this article.

(4) An eligible taxpayer shall be allowed a credit for nine percentum

of "qualified research expenses", paid or incurred by the taxpayer in

the taxable year. "Qualified research expenses" shall mean expenses

associated with in-house research, use of sophisticated technology

facilities and processes, and costs associated with the dissemination of

the results of the products that directly result from such research and

development activities; provided, however, that such costs shall not

include advertising or promotion through media. In addition, costs

associated with the preparation of patent applications, patent

application filing fees, patent research fees, patent examinations fees,

patent post allowance fees, patent maintenance fees, and grant

application expenses and fees shall be eligible for such credit. In no

case shall the credit allowed by this paragraph apply to expenses for

litigation or the challenge of another entity's intellectual property

rights, or for contract expenses involving outside paid consultants.

(5) An eligible taxpayer shall be allowed a credit for qualified

high-technology training expenditures as described in this paragraph

paid or incurred by the taxpayer.

(a) The amount of credit shall be one hundred percent of the training

expenses described in subparagraph (c) of this paragraph, subject to a

limitation of no more than four thousand dollars per employee per year

for such training expenses.

(b) Qualified high-technology training shall include a course or

courses taken and satisfactorily completed by an employee of the

taxpayer at an accredited, degree granting post-secondary college or

university in New York state that

(i) directly relates to the activities referred to in paragraph (b) of

subdivision one of section thirty-one hundred two-e of the public

authorities law, and

(ii) is intended to upgrade, retrain or improve the productivity or

theoretical awareness of the employee. Such course or courses may

include, but are not limited to, instruction or research relating to

techniques, meta, macro, or micro-theoretical or practical knowledge

bases or frontiers, or ethical concerns related to such activities. Such

course or courses shall not include classes in the disciplines of

management, accounting or the law or any class designed to fulfill the

discipline specific requirements of a degree program at the associate,

baccalaureate, graduate or professional level of these disciplines.

Satisfactory completion of a course or courses shall mean the earning

and granting of credit or equivalent unit, with the attainment of a

grade of "B" or higher in a graduate level course or courses, a grade of

"C" or higher in an undergraduate level course or courses, or a similar

measure of competency for a course that is not measured according to a

standard grade formula.

(c) Qualified high-technology training expenditures shall include

expenses for tuition and mandatory fees, and software required by the

institution, fees for textbooks or other literature required by the

institution offering the course or courses, minus applicable

scholarships and tuition or fee waivers not granted by the taxpayer or

any affiliate of the taxpayer, paid or reimbursed by the taxpayer.

Qualified high technology expenditures do not include room and board,

computer hardware or software not specifically assigned for such course

or courses, late-charges, fines or membership dues and similar expenses.

Such qualified expenditures shall not be eligible for the credit allowed

by this subsection unless the employee for whom the expenditures are

disbursed is continuously employed by the taxpayer in a full-time,

full-year position primarily located at a qualified site during the

period of such coursework and lasting through at least one hundred and

eighty days after the satisfactory completion of the qualifying

course-work. Qualified high-technology training expenditures shall not

include expenses for in house or shared training outside of a New York

state higher education institution or the use of consultants outside of

credit granting courses whether such consultants function inside of such

higher education institution or not.

(d) If a taxpayer relocates from an academic business incubator

facility partnered with an accredited post-secondary education

institution located within New York state, which provides space and

business support services to taxpayers, to another site, the credit

provided in this subsection shall be allowed for all expenditures

referenced in subparagraph (c) of this paragraph paid or incurred in the

two preceding taxable years that the taxpayer was located in such an

incubator facility for employees of the taxpayer who also relocate from

said incubator facility to such New York site and are employed and

primarily located by the taxpayer in New York. Such expenditures in the

two preceding years shall be added to the amounts otherwise qualifying

for the credit provided by this subsection that were paid or incurred in

the taxable year that the taxpayer relocated from such a facility. Such

expenditures shall include expenses paid or incurred for an eligible

employee who is a full-time, full-year employee of said taxpayer during

the taxable year that the taxpayer relocated from an incubator facility

notwithstanding (i) that such employee was employed full or part-time as

an officer, staff-person or paid intern of the taxpayer when such

taxpayer was located at such incubator facility or (ii) that such

employee was not continuously employed when such taxpayer was located at

the incubator facility during the one hundred eighty day period

referenced in subparagraph (c) of this paragraph, provided such employee

received wages or equivalent income for at least seven hundred fifty

hours during any twenty-four month period when the taxpayer was located

at the incubator facility. Such expenditures shall include payments made

to such an employee after the taxpayer has relocated from the incubator

facility for qualified expenditures if such payments are made to

reimburse such an employee for qualified expenditures paid by the

employee during such two preceding years. The credit provided under this

subparagraph shall be allowed, in any year that said taxpayer qualifies

as an eligible taxpayer.

(e) For purposes of this subsection the term "academic year" shall

mean the annual period of sessions of a post-secondary college or

university.

(f) For the purposes of this subsection the term "academic incubator

facility" shall mean a facility providing low-cost space, technical

assistance, support services and educational opportunities, including

but not limited to central services provided by the manager of the

facility to the tenants of the facility, to an entity located in New

York state. Such entity's primary activity must be an activity described

in paragraph (b) of subdivision one of section thirty-one hundred two-e

of the public authorities law, and such entity must be in the formative

stage of development. The academic incubator facility and the entity

must act in partnership with an accredited post-secondary college or

university located in New York state. An academic incubator facility's

mission shall be to promote job creation, entrepreneurship, technology

transfer, and provide support services to incubator tenants, including,

but not limited to, business planning, management assistance,

financial-packaging, linkages to financing services, and coordinating

with other sources of assistance.

(6) An eligible taxpayer may claim credits under this subsection for

four consecutive taxable years, except, if a taxpayer is located in an

academic incubator facility and relocates within New York state to a

nonacademic incubator site, then the taxpayer (i) may make a revocable

election to defer the credit provided under this subsection to the first

taxable year beginning after the taxpayer relocates from an academic

incubator facility, and (ii) shall be eligible for such credit for five

consecutive years. In no case shall the credit allowed by this

subsection to a taxpayer exceed two hundred fifty thousand dollars per

year. If the taxpayer is a partner in a partnership or shareholder of a

New York S corporation, then the limit imposed by the preceding sentence

shall be applied at the entity level, so that the aggregate credit

allowed to all the partners or shareholders of each such entity in the

taxable year does not exceed two hundred fifty thousand dollars.

(7) If the amount of credit allowed under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, the excess

shall be treated as an overpayment of tax to be credited or refunded in

accordance with the provisions of section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon.

(8) The credit allowed under this subsection shall not be applicable

for taxable years beginning on or after January first, two thousand

twelve.

(oo) 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 subsection,

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 subsection, 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 or a

shareholder of a New York S corporation, then the credit 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 or shareholders

of each such entity in the taxable year does not exceed the credit cap

that is applicable in that taxable year.

(2) Tax credits allowed pursuant to this subsection shall be allowed

in the taxable year that the qualified rehabilitation is placed in

service under section 167 of the federal internal revenue code.

(3) If the 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 subsection 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 subsection must be added back by the taxpayer or

transferee in the same taxable year and in the same proportion as the

federal recapture.

(4) If the amount of the credit allowed under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, the excess

shall be treated as an overpayment of tax to be credited or refunded in

accordance with the provisions of section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon.

(5) To be eligible for the credit allowable under this subsection 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 subsection 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 subsection the term "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 subsection 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

subsection 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 subsection 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 subsection.

(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 subsection shall remain

solely liable for all obligations and liabilities imposed on the

taxpayer with respect to the credit allowed by this subsection, none of

which shall apply to a party to whom the credit has been subsequently

transferred.

(pp) Historic homeownership rehabilitation credit. (1) For taxable

years beginning on or after January first, two thousand seven, 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 twenty percent of the qualified rehabilitation

expenditures made by the taxpayer with respect to a qualified historic

home and may be allowed in the taxable year in which the final

certification step of the certified rehabilitation is completed.

(A) If such expenditures relate only to exterior work, the credit

shall be allowed for qualified rehabilitation expenditures if the

exterior work has been approved by a local landmark commission

established pursuant to section ninety-six-a or one hundred nineteen-dd

of the general municipal law or by the office of parks, recreation and

historic preservation.

(B) If such expenditures relate to both exterior and interior work,

the credit shall be allowed for qualified rehabilitation expenditures

that have been approved by the office of parks, recreation and historic

preservation or by a local government certified pursuant to section

101(c)(1) of the national historic preservation act. Under this

subparagraph, approval is necessary for the qualified rehabilitation

expenditures related to both the exterior work on the qualified historic

home and interior work affecting primary significant historic spaces of

the qualified historic home.

(2) (A) With respect to any particular residence of a taxpayer, the

credit allowed under paragraph one of this subsection shall not exceed

fifty thousand dollars for taxable years beginning on or after January

first, two thousand ten and before January first, two thousand

twenty-five and twenty-five thousand dollars for taxable years beginning

on or after January first, two thousand twenty-five. In the case of a

husband and wife, the amount of the credit shall be divided between them

equally or in such other manner as they may both elect. If a taxpayer

incurs qualified rehabilitation expenditures in relation to more than

one residence in the same year, the total amount of credit allowed under

paragraph one of this subsection for all such expenditures shall not

exceed fifty thousand dollars for taxable years beginning on or after

January first, two thousand ten and before January first, two thousand

twenty-five and twenty-five thousand dollars for taxable years beginning

on or after January first, two thousand twenty-five.

(B) For taxable years beginning on or after January first, two

thousand ten and before January first, two thousand twenty-five, if the

amount of credit allowable under this subsection shall exceed the

taxpayer's tax for such year, and the taxpayer's New York adjusted gross

income for such year does not exceed sixty thousand dollars, the excess

shall be treated as an overpayment of tax to be credited or refunded in

accordance with the provisions of section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon. If

the taxpayer's New York adjusted gross income for such year exceeds

sixty thousand dollars, the excess credit that may be carried over to

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

for such year or years. For taxable years beginning on or after January

first, two thousand twenty-five, if the amount of credit allowable under

this subsection shall exceed the taxpayer's tax for such year, the

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

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

(3)(A) The term "qualified rehabilitation expenditure" means, for

purposes of this subsection, any amount properly chargeable to a capital

account:

(i) in connection with the certified rehabilitation of a qualified

historic home, and

(ii) for property for which depreciation would be allowable under

section 168 of the internal revenue code if the qualified historic home

were used in a trade or business.

(B) Such term shall not include (i) the cost of acquiring any building

or interest therein, (ii) any expenditure attributable to the

enlargement of an existing building, or (iii) any expenditure made prior

to January first, two thousand seven.

(C) Such term shall not include any expenditure in connection with the

rehabilitation of a qualified historic home unless at least five percent

of the total expenditures made in the rehabilitation process are

allocable to the rehabilitation of the exterior of such building.

(D) If only a portion of a building is used as a residence of the

taxpayer, only qualified rehabilitation expenditures which are properly

allocable to such residential portion shall be taken into account under

this subsection.

(4)(A) The term "certified rehabilitation" means, for purposes of this

subsection, any rehabilitation of a certified historic structure which

has been approved and certified as being consistent with the standards

established by the commissioner of parks, recreation and historic

preservation for rehabilitation by the office of parks, recreation and

historic preservation, a local government certified pursuant to section

101(c)(1) of the national historic preservation act or a local landmark

commission established pursuant to section ninety-six-a or one hundred

nineteen-dd of the general municipal law.

(B) A certified rehabilitation shall require:

(i) an initial certification that the structure meets the definition

of the term "certified historic structure";

(ii) a second certification, to be issued prior to construction,

certifying that the proposed rehabilitation work is consistent with

standards established by the commissioner of parks, recreation and

historic preservation for rehabilitation; and

(iii) a final certification issued when construction is completed,

certifying that the work was completed as proposed and that the costs

are consistent with the work completed. Such final certification shall

be acceptable as proof that the expenditures related to such

construction qualify as qualified rehabilitation expenditures for

purposes of the credit allowed under either subparagraph (A) or (B) of

paragraph one of this subsection.

(5)(A) The term "qualified historic home" means, for purposes of this

subsection, a certified historic structure located within New York

state:

(i) which has been substantially rehabilitated,

(ii) which, or any portion of which, is owned, in whole or part, by

the taxpayer,

(iii) in which the taxpayer resides during the taxable year in which

the taxpayer is allowed a credit under this subsection, and

(iv) (1) which is in whole or in part a targeted area residence within

the meaning of section 143(j) of the internal revenue code; or (2) is

located within a census tract which is identified as being at or below

one hundred percent of the state median family income in the most recent

federal census; or (3) which is located in a city with a population of

less than one million with a poverty rate greater than fifteen percent,

rounded to the nearest whole number, in the most recent five year

estimate from the American community survey published by the United

States census bureau.

(B) A building shall be treated as having been "substantially

rehabilitated" if the qualified rehabilitation expenditures in relation

to such building total five thousand dollars or more.

(6) The term "certified historic structure" means, for purposes of

this subsection, any building (and its structural components) which:

(i) is listed in the state or national register of historic places, or

(ii) is located in a state or national registered historic district

and is certified as being of historic significance to the district.

(7) If the taxpayer holds stock as a tenant-shareholder in a

cooperative housing corporation, such taxpayer shall be treated as

owning the house or apartment which the taxpayer is entitled to occupy

as such shareholder.

(8)(A) A percentage of the total expenditures made in the

rehabilitation of the exterior of a building containing cooperative or

condominium dwelling units shall be attributed to each such unit within

the building based on the percentage of space each such unit occupies

within the building.

(B) In the case of a building where less than the entire building is

used as a residence of the taxpayer, only the portion of the total

expenditures made in the rehabilitation of the building that is

attributable to the residence of the taxpayer shall be treated as

qualified rehabilitation expenditures for the purposes of this

subsection.

(C) In the case of a building that is owned by and is a residence of

two or more persons, other than a husband and wife, the portion of the

total expenditures made in the rehabilitation of the building that is

attributable to each taxpayer shall be equal to the taxpayer's share of

ownership in such building.

(9) In the case of a building other than a building to which paragraph

ten of this subsection applies, qualified rehabilitation expenditures

shall be treated for purposes of this subsection as made on the date of

the final certification referred to in clause (iii) of subparagraph (B)

of paragraph four of this subsection.

(10)(A) In the case of a purchased qualified historic home, the

taxpayer shall be treated as having made, on the date of purchase, the

qualified rehabilitation expenditures made by the seller of such home.

For purposes of this subsection, expenditures made by the seller shall

be deemed qualified rehabilitation expenditures if such expenditures, if

made by the purchaser, would have so qualified.

(B) The term "purchased qualified historic home" means any qualified

historic home purchased by the taxpayer if:

(i) the taxpayer is the first purchaser of such home after the date of

the final certification referred to in clause (iii) of subparagraph (B)

of paragraph four of this subsection, and the purchase occurs within

five years after such date,

(ii) the taxpayer, during the taxable year in which the taxpayer is

allowed a credit under this subsection, resides in such home,

(iii) no credit was allowed to the seller under this subsection with

respect to such rehabilitation, and

(iv) the taxpayer is furnished with such information as the

commissioner determines is necessary to determine any credit under this

subsection.

(11)(A) If, before the end of the two-year period beginning either on

the date of the final certification referred to in clause (iii) of

subparagraph (B) of paragraph four of this subsection or, if paragraph

ten of this subsection applies, on the date of purchase of such building

by the taxpayer, the taxpayer disposes of such taxpayer's interest in

such building, or such building ceases to be used as a residence of the

taxpayer, the taxpayer's tax imposed by this article for the taxable

year in which such disposition or cessation occurs shall be increased by

the recapture portion of the credit allowed under this subsection for

all prior taxable years with respect to such rehabilitation.

(B) For purposes of subparagraph (A) of this paragraph, the recapture

portion shall be the product of the amount of credit claimed by the

taxpayer multiplied by a ratio, the numerator of which is equal to

twenty-four less the number of months the building is used as the

taxpayer's residence and the denominator of which is twenty-four.

(12) Nothing contained in this subsection shall be construed to impose

a duty upon a local landmark commission established pursuant to section

ninety-six-a or one hundred nineteen-dd of the general municipal law or

a local government certified pursuant to section 101(c)(1) of the

national historic preservation act to undertake any review or approval

of an application for the certification of the rehabilitation of

historic structures and of rehabilitation expenditures provided for in

this subsection.

* (qq) Excelsior jobs program credit. (1) A taxpayer will be allowed a

credit, to the extent allowed under section thirty-one of this chapter,

against the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year exceeds the taxpayer's tax for such

year, the excess will be treated as an overpayment of tax to be credited

or refunded in accordance with the provisions of section six hundred

eighty-six of this article, provided, however, that no interest will be

paid thereon.

* NB There are 3 sb§ (qq)'s

* (qq) Empire state film post production credit. (1) Allowance of

credit. A taxpayer who is eligible pursuant to section thirty-one of

this chapter shall be allowed a credit to be computed as provided in

such section thirty-one against the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowable under

this subsection for any taxable year exceeds the taxpayer's tax for such

year, fifty percent of the excess shall be treated as an overpayment of

tax to be credited or refunded 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. The

balance of such credit not credited or refunded in such taxable year may

be carried over to the immediately succeeding taxable year and may be

deducted from the taxpayer's tax for such year. The excess, if any, of

the amount of the credit over the tax for such succeeding year shall be

treated as an overpayment of tax to be credited or refunded 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 3 sb§ (qq)'s

* (qq) 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) If the amount of credit allowable under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, the excess

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

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

* NB There are 3 sb§ (qq)'s

(rr) 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. If the amount of the credit allowed under

this subsection for any taxable year shall exceed the taxpayer's tax for

such year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

shall be paid thereon.

* (ss) Economic transformation and facility redevelopment program tax

credit. (1) Allowance of credit. A taxpayer shall be allowed a credit,

to the extent allowed under section thirty-five of this chapter, against

the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year exceeds the taxpayer's tax for such

year, the excess will be treated as an overpayment of tax to be credited

or refunded in accordance with the provisions of section six hundred

eighty-six of this article, provided, however, that no interest will be

paid thereon.

* NB Repealed December 31, 2026

* (tt) New York youth jobs program tax credit. (1) A taxpayer that

has been certified by the commissioner of labor as a qualified employer

pursuant to section twenty-five-a of the labor law and received an

annual final certificate of tax credit from such commissioner shall be

allowed a credit against the tax imposed by this article equal to the

amount listed on the annual final certificate of tax credit issued by

the commissioner of labor pursuant to section twenty-five-a of the labor

law. A taxpayer that is a partner in a partnership, member of a limited

liability company or shareholder in an S corporation that has received

its annual final certificate of tax credit from the commissioner of

labor as a qualified employer pursuant to section twenty-five-a of the

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

the partnership, limited liability company or S corporation. If the

qualified employer's taxable year is a calendar year, the employer shall

be entitled to claim the credit as calculated on the annual final

certificate of tax credit on the calendar year return for which the

annual final certificate of tax credit was issued. If the qualified

employer's taxable year is a fiscal year, the employer shall be entitled

to claim the credit as calculated on the annual final certificate of tax

credit on the return for the fiscal year that encompasses the date on

which the annual final certificate of tax credit is issued. For the

purposes of this subsection, the term "qualified employee" shall have

the same meaning as set forth in subdivision (b) of section

twenty-five-a of the labor law.

(2) If the amount of the credit allowed under this subsection exceeds

the taxpayer's tax for the taxable year, any amount of credit not

deductible in that taxable year will be treated as an overpayment of tax

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

six hundred eighty-six of this article. Provided, however, no interest

will be paid thereon.

(3) The taxpayer shall be required to attach to its tax return its

annual final certificate of tax credit issued by the commissioner of

labor pursuant to section twenty-five-a of the labor law. In no event

shall the taxpayer be allowed a credit greater than the amount of the

credit listed on the annual final certificate of tax credit.

Notwithstanding any provision of this chapter to the contrary, the

commissioner and the commissioner's designees may release the names and

addresses of any taxpayer claiming this credit and the amount of the

credit earned by the taxpayer. Provided, however, if a taxpayer claims

this credit because it is a member of a limited liability company, a

partner in a partnership, or a shareholder in a subchapter S

corporation, only the amount of credit earned by the entity and not the

amount of credit claimed by the taxpayer may be released.

* NB There are 3 sb (tt)'s

* (tt) Empire state jobs program retention 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 tax imposed by this

article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year exceeds the taxpayer's tax for such

year, the excess will be treated as an overpayment of tax to be credited

or refunded in accordance with the provisions of section six hundred

eighty-six of this article, provided, however, that no interest will be

paid thereon.

* NB There are 3 sb (tt)'s

* (tt) Credit for companies who provide transportation to individuals

with disabilities. (1) Allowance and amount of credit. A taxpayer, who

provides a taxicab service as defined in section one hundred

forty-eight-a of the vehicle and traffic law, or a livery service as

defined in section one hundred twenty-one-e of the vehicle and traffic

law, shall be allowed a credit, to be computed as provided in this

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

credit shall be equal to the incremental cost associated with upgrading

a vehicle so that it is accessible by individuals with disabilities as

defined in paragraph two of this subsection. Provided, however, that

such credit shall not exceed fifteen thousand dollars per electric

vehicle and ten thousand dollars per any other vehicle. For purposes of

this subsection, purchases of new vehicles that are initially

manufactured to be accessible for individuals with disabilities and for

which there is no comparable make and model that does not include the

equipment necessary to provide accessibility to individuals with

disabilities, the credit shall be fifteen thousand dollars per electric

vehicle and ten thousand dollars per any other vehicle.

(2) Definitions. The term "accessible by individuals with

disabilities" shall, for the purposes of this subsection, refer to a

vehicle that complies with federal regulations promulgated pursuant to

the Americans with Disabilities Act applicable to vans under twenty-two

feet in length, by the federal Department of Transportation, in Code of

Federal Regulations, title 49, parts 37 and 38 and the Federal Motor

Vehicle Safety Standards, Code of Federal Regulations, title 49, part

571. The term "electric vehicle" shall, for the purposes of this

subsection, have the same meaning as in section sixty-six-s of the

public service law.

(3) Application of credit. If the amount of the credit shall exceed

the taxpayer's tax for such year the excess shall be carried over to the

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

such year or years.

* NB Repealed December 31, 2028

* NB There are 3 sb (tt)'s

(uu) Alcoholic beverage production credit. A taxpayer shall be allowed

a credit, to be computed as provided in section thirty-seven of this

chapter, against the tax imposed by this article. If the amount of the

credit allowed under this subsection for any taxable year shall exceed

the taxpayer's tax for such year, the excess shall be treated as an

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

provisions of section six hundred eighty-six of this article, provided,

however, that no interest shall be paid thereon.

(vv) Family tax relief credit. 1. An individual taxpayer who meets the

eligibility standards in paragraph two of this subsection shall be

allowed a credit against the taxes imposed by this article of three

hundred fifty dollars per return for tax years two thousand fourteen,

two thousand fifteen, and two thousand sixteen.

2. To be eligible for the credit, the taxpayer (or taxpayers filing

joint returns) on the personal income tax return filed for the taxable

year, must (a) be a resident, (b) claim one or more dependent children

who were under the age of seventeen on the last day of the taxable year,

(c) have New York adjusted gross income of at least forty thousand

dollars but no greater than three hundred thousand dollars, and (d) have

a tax liability as determined under paragraph three of this subsection

of greater than or equal to zero.

3. For purposes of this subsection, tax liability shall be determined

by applying the tax rate calculations in sections six hundred one and

six hundred one-a of this part to the taxpayer's taxable income and then

subtracting from that amount any other tax credits allowed under this

section or section six hundred twenty of this article.

4. If the amount of the credit allowed under this subsection shall

exceed the taxpayer's tax for the taxable year, the excess shall be

treated as an overpayment of tax to be credited or refunded in

accordance with the provisions of section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon.

(ww) Tax-free NY area tax elimination credit. (1) Allowance of credit.

A taxpayer shall be allowed a credit, to be computed as provided under

section forty of this chapter, against the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year exceeds the taxpayer's tax for such

year, the excess will be treated as an overpayment to be credited or

refunded in accordance with the provisions of section six hundred

eighty-six of this article, provided, however, that no interest will be

paid thereon.

(xx) Real property tax credit for manufacturers. (1) A qualified New

York manufacturer will be allowed a credit equal to twenty percent of

the real property tax it paid during the taxable year for real property

owned by such manufacturer in New York which was principally used during

the taxable year for manufacturing to the extent not deducted in

computing New York adjusted gross income. This credit will not be

allowed if the real property taxes that are the basis for this credit

are included in the calculation of another credit claimed by the

taxpayer.

(2)(A) The term qualified New York manufacturer has the same meaning

as under subparagraph (vi) of paragraph (a) of subdivision one of

section two hundred ten of this chapter.

(B) (i) The term real property tax means a charge imposed upon real

property by or on behalf of a county, city, town, village or school

district for municipal or school district purposes, provided that the

charge is levied for the general public welfare by the proper taxing

authorities at a like rate against all property over which such

authorities have jurisdiction, and provided that where taxes are levied

pursuant to article eighteen or nineteen of the real property tax law,

the property must have been taxed at the rate determined for the class

in which it is contained, as provided by such article eighteen or

nineteen, whichever is applicable. The term real property tax does not

include a charge for local benefits, including any portion of that

charge that is properly allocated to the costs attributable to

maintenance or interest, when (I) the property subject to the charge is

limited to the property that benefits from the charge, or (II) the

amount of the charge is determined by the benefit to the property

assessed, or (III) the improvement for which the charge is assessed

tends to increase the property value.

(ii) In addition, the term real property tax includes taxes paid by

the taxpayer upon real property principally used during the taxable year

by the taxpayer in manufacturing where the taxpayer leases such real

property from an unrelated third party if the following conditions are

satisfied: (I) the tax must be paid by the taxpayer as lessee pursuant

to explicit requirements in a written lease, and (II) the taxpayer as

lessee has paid such taxes directly to the taxing authority and has

received a written receipt for payment of taxes from the taxing

authority. In the case of a taxpayer that, during the taxable year, is

principally engaged in the production of goods by farming, agriculture,

horticulture, floriculture, viticulture, or commercial fishing, the

taxpayer is eligible if the taxpayer satisfies the conditions in the

preceding sentence and the taxpayer leases such real property from a

related or unrelated party.

(iii) The term real property tax does not include a payment made by

the taxpayer in connection with an agreement for the payment in lieu of

taxes on real property, whether such property is owned or leased by the

taxpayer.

(iv) The real property taxes must be paid by the taxpayer in the year

such taxes become a lien on the real property.

(3) Credit recapture. Where a qualified New York manufacturer's real

property taxes which were the basis for the allowance of the credit

provided for under this subdivision are subsequently reduced as a result

of a final order in any proceeding under article seven of the real

property tax law or other provision of law, the taxpayer shall add back,

in the taxable year in which such final order is issued, the excess of

(i) the amount of credit originally allowed for a taxable year over (ii)

the amount of credit determined based upon the reduced real property

taxes. If such final order reduces real property taxes for more than one

year, the taxpayer must determine how much of such reduction is

attributable to each year covered by such final order and calculate the

amount of credit which is required by this subdivision to be recaptured

for each year based on such reduction.

(4) If the amount of the credit allowed under this subsection for any

taxable year exceeds the taxpayer's tax for such year, the excess will

be treated as an overpayment to be credited or refunded in accordance

with the provisions of section six hundred eighty-six of this article,

provided however, no interest will be paid thereon.

(yy) The tax-free NY area excise tax on telecommunication services

credit. A taxpayer that is a business or owner of a business that is

located in a tax-free NY area approved pursuant to article twenty-one of

the economic development law shall be allowed a credit equal to the

excise tax on telecommunication services imposed by section one hundred

eighty-six-e of this chapter and passed through to such business during

the taxable year to the extent not otherwise deducted in computing New

York adjusted gross income. This credit may be claimed only where any

tax imposed by such section one hundred eighty-six-e has been separately

stated on a bill from the provider of telecommunication services and

paid by such taxpayer with respect to such services rendered within a

tax-free NY area during the taxable year. If the amount of the credit

allowed under this subsection for any taxable year exceeds the

taxpayer's tax for such year, the excess will be treated as an

overpayment to be credited or refunded in accordance with the provisions

of section six hundred eighty-six of this article, provided, however,

that no interest will be paid thereon.

(zz) Workers with disabilities tax credit. (1) A qualified employer,

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

of the labor law, shall be entitled to a credit against the tax imposed

by this article. The amount of the credit shall be: fifteen percent of

the qualified wages paid after January first, two thousand fifteen to a

qualified full-time employee who is employed for not less than six

months and who works at least thirty hours per week; and shall be ten

percent of the qualified wages paid after January first, two thousand

fifteen to a qualified part-time employee who is employed for not less

than six months and works at least eight hours per week. The credit

allowed pursuant to this subsection shall not exceed, during any taxable

year, five thousand dollars for any qualified full time employee and two

thousand five hundred dollars for any qualified part time employee.

"Qualified wages" means wages paid or incurred by the qualified employer

during the taxable year to a qualified employee which are attributable,

with respect to such employee, to services rendered by the qualified

employee.

(2) If the amount of credit allowable under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, any amount

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

following three years, and may be deducted for the qualified employer's

tax for such years.

(3) The taxpayer shall attach to its tax return its final certificate

of eligibility issued by the commissioner of labor pursuant to section

twenty-five-b of the labor law. In no event shall the taxpayer be

allowed a credit greater than the amount of the credit listed on the

final certificate of eligibility. Notwithstanding any provision of this

chapter to the contrary, the commissioner and the commissioner's

designees may release the names and addresses of any taxpayer claiming

this credit and the amount of the credit earned by the taxpayer.

(4) A qualified employer may not claim the workers with disabilities

tax credit if it claims any of the other credits for employment of

persons with disabilities under either subsection (o) of section six

hundred six, subdivision twelve of section two hundred ten-B, or

subdivision (j) of section fifteen hundred eleven of this chapter.

(aaa) Minimum wage reimbursement credit. (1) A taxpayer shall be

allowed a credit, to be computed as provided in section thirty-eight of

this chapter, against the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year exceeds the taxpayer's tax for such

year, the excess will be treated as an overpayment of tax to be credited

or refunded in accordance with the provisions of section six hundred

eighty-six of this article, provided, however, that no interest will be

paid thereon.

(ccc) Article twenty-four employee credit. A covered employee of an

electing employer shall be entitled to a credit against the tax imposed

by this article as provided in this subsection. For purposes of this

subsection the terms "covered employee" and "electing employer" shall

have the same meanings as under section eight hundred fifty of this

chapter. (1) For two thousand nineteen, the credit shall be equal to the

product of (i) the covered employee's wages and compensation in excess

of forty thousand dollars received during the tax year from the electing

employer that are subject to tax under this article and (ii) one and

one-half percent and (iii) the result of one minus a fraction, the

numerator of which shall be the tax imposed on the covered employee as

determined pursuant to section six hundred one of this article before

the application of any credits for the applicable tax year and the

denominator of which shall be the covered employee's taxable income as

determined pursuant to this article for the applicable tax year. (2) For

two thousand twenty, the credit shall be equal to the product of (i) the

covered employee's wages and compensation in excess of forty thousand

dollars received during the tax year from the electing employer that are

subject to tax under this article and (ii) three percent and (iii) the

result of one minus a fraction, the numerator of which shall be the tax

imposed on the covered employee as determined pursuant to section six

hundred one of this article before the application of any credits for

the applicable tax year and the denominator of which shall be the

covered employee's taxable income as determined pursuant to this article

for the applicable tax year. (3) For two thousand twenty-one and

thereafter, the credit shall be equal to the product of (i) the covered

employee's wages and compensation in excess of forty thousand dollars

received during the tax year from the electing employer that are subject

to tax under this article and (ii) five percent and (iii) the result of

one minus a fraction, the numerator of which shall be the tax imposed on

the covered employee as determined pursuant to section six hundred one

of this article before the application of any credits for the applicable

tax year and the denominator of which shall be the covered employee's

taxable income as determined pursuant to this article for the applicable

tax year. If the amount of the credit allowable under this subsection

for any taxable year shall exceed the taxpayer's tax for such year, the

excess allowed for a 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.

(ddd) Employee training incentive program tax credit. (1) For taxable

years beginning before January first, two thousand twenty-nine, a

taxpayer that has been approved by the commissioner of economic

development to participate in the employee training incentive program

and has been issued a certificate of tax credit pursuant to section four

hundred forty-three of the economic development law shall be allowed to

claim a credit against the tax imposed by this article. The credit

shall equal fifty percent of a taxpayer's eligible training costs, up to

a credit of ten thousand dollars per employee completing eligible

training pursuant to paragraph (a) of subdivision three of section four

hundred forty-one of the economic development law. The credit shall

equal fifty percent of the stipend paid to an intern, up to a credit of

three thousand dollars per intern completing eligible training pursuant

to paragraph (b) of subdivision three of section four hundred forty-one

of the economic development law. In no event shall a taxpayer be allowed

a credit greater than the amount listed on the certificate of tax credit

issued by the commissioner of economic development. In the case of a

taxpayer who is a partner in a partnership, member of a limited

liability company or shareholder in an S corporation, the taxpayer shall

be allowed its pro rata share of the credit earned by the partnership,

limited liability company or S corporation. The credit will be allowed

in the taxable year in which the eligible training is completed.

(2) If the amount of the credit allowed under this subsection for any

taxable year exceeds the taxpayer's tax for the taxable year, the excess

shall be treated as an overpayment of tax to be credited or refunded in

accordance with the provisions of section six hundred eighty-six of this

article, provided, however, no interest will be paid thereon.

(eee) School tax relief (STAR) credit. (1) Definitions. For purposes

of this subsection:

(A) "Qualified taxpayer" means a resident individual of the state, who

maintained their primary residence in this state on July first of the

taxable year, and who was an owner of that property on that date,

provided however:

(i) A taxpayer whose primary residence received a STAR exemption for

the associated fiscal year shall not be considered a qualified taxpayer

for purposes of this subsection.

(ii) An individual may be considered a qualified taxpayer with respect

to no more than one primary residence during any given taxable year.

(B) (i) "Affiliated income" shall mean the combined income of all of

the owners of the parcel who resided primarily thereon as of July first

of the taxable year, and of any owners' spouses residing primarily

thereon as of such date; provided that the income to be so combined

shall be the "adjusted gross income" for the taxable year as reported

for federal income tax purposes, or that would be reported as adjusted

gross income if a federal income tax return were required to be filed,

reduced by distributions, to the extent included in federal adjusted

gross income, received from an individual retirement account and an

individual retirement annuity.

(ii) For taxable years beginning on and after January first, two

thousand nineteen, where an income-eligibility determination is wholly

or partly based upon the income of one or more individuals who did not

file a return pursuant to section six hundred fifty-one of this article

for the applicable income tax year, then in order to be eligible for the

credit authorized by this subsection, each such individual must file a

statement with the department showing the source or sources of such

individual's income for that income tax year, and the amount or amounts

thereof, that would have been reported on such a return if one had been

filed. Such statement shall be filed at such time, and in such form and

manner, as may be prescribed by the department, and shall be subject to

the provisions of section six hundred ninety-seven of this article to

the same extent that a return would be. The department shall make such

forms and instructions available for the filing of such statements. The

local assessor shall upon the request of a taxpayer assist such taxpayer

in the filing of the statement with the department.

(iii) Notwithstanding the foregoing provisions of this subparagraph,

where property is owned solely by a person or persons who received the

credit for three consecutive years without having filed returns for the

applicable income tax years, but who demonstrated their eligibility for

the credit to the commissioner's satisfaction by filing statements

pursuant to clause (ii) of this subparagraph, such person or persons

shall be presumed to satisfy the applicable income-eligibility

requirements each year thereafter and shall not be required to continue

to file such statements in the absence of a specific request therefor

from the commissioner. Nothing contained herein shall be construed to

prevent the commissioner from denying a credit pursuant to this

subsection when the commissioner determines that a property owner has a

source of income that renders that owner temporarily or permanently

ineligible for that credit.

(C) "Associated fiscal year" means the school district fiscal year

that began on July first of the taxable year or, in the case of a city

school district that is subject to article fifty-two of the education

law, the city fiscal year that began on July first of the taxable year.

(D) "Owner" means:

(i) a person who owns a parcel in fee simple absolute or as a tenant

in common, a joint tenant or a tenant by the entirety,

(ii) an owner of a present interest in a parcel under a life estate,

(iii) a vendee in possession under an installment contract of sale,

(iv) a beneficial owner under a trust,

(v) a tenant-stockholder of a cooperative apartment corporation who

resides in a portion of real property owned by such cooperative

apartment corporation, to the extent represented by his or her share or

shares of stock in such corporation as determined by its or their

proportional relationship to the total outstanding stock of the

corporation, including that owned by the corporation,

(vi) a resident of a farm dwelling that is owned either by a

corporation of which the resident is a shareholder, a partnership of

which the resident is a partner, or by a limited liability company of

which the resident is an owner, or

(vii) a resident of a dwelling, other than a farm dwelling, that is

owned by a limited partnership of which the resident is a partner,

provided that the limited partnership that holds title to the property

does not engage in any commercial activity, that the limited partnership

was lawfully created to hold title solely for estate planning and asset

protection purposes, and that the partner or partners who primarily

reside thereon personally pay all of the real property taxes and other

costs associated with the property's ownership.

(E) "Qualifying taxes" means the school district taxes that were or

are to be levied upon the taxpayer's primary residence for the

associated fiscal year; or, in the case of a city school district that

is subject to article fifty-two of the education law, the combined city

and school district taxes that were or are to be levied upon the

taxpayer's primary residence for the associated fiscal year. Provided,

however, that in the case of a cooperative apartment, "qualifying taxes"

means the school district taxes that would have been levied upon the

tenant-stockholder's primary residence if it were separately assessed,

as determined by the commissioner based on the statement provided by the

assessor pursuant to subparagraph (ii) of paragraph (k) of subdivision

two of section four hundred twenty-five of the real property tax law, or

in the case of a cooperative apartment corporation that is described in

subparagraph (iv) of paragraph (k) of subdivision two of section four

hundred twenty-five of the real property tax law, one third of such

amount. In no case shall the term "qualifying taxes" be construed to

include penalties or interest.

(F) "STAR exemption" means the school tax relief (STAR) exemption

authorized by section four hundred twenty-five of the real property tax

law.

(G) "STAR tax savings" means the tax savings attributable to the STAR

exemption within a portion of a school district, as determined by the

commissioner pursuant to subdivision two of section thirteen hundred

six-a of the real property tax law for purposes of the credit authorized

by this subsection.

(2) Allowance of credit. A qualified taxpayer shall be allowed a

credit as provided in paragraph three or four of this subsection,

whichever is applicable, against the taxes imposed by this article

reduced by the credits permitted by this article, provided that the

requirements set forth in the applicable subsection are satisfied. If

the credit exceeds the tax as so reduced for such year under this

article, the excess shall be treated as an overpayment, to be credited

or refunded, without interest. If a qualified taxpayer is not required

to file a return pursuant to section six hundred fifty-one of this

article, a qualified taxpayer may nevertheless receive the full amount

of the credit to be credited or repaid as an overpayment, without

interest thereon.

(3) Determination of basic STAR credit. (A) Beginning with taxable

years after two thousand fifteen, a basic STAR credit shall be available

to a qualified taxpayer if the affiliated income of the parcel that

serves as the taxpayer's primary residence is less than or equal to five

hundred thousand dollars for the applicable income tax year specified by

paragraph (b-1) of subdivision three of section four hundred twenty-five

of the real property tax law. The income limit established for the basic

STAR exemption by paragraph (b-1) of subdivision three of section four

hundred twenty-five of the real property tax law shall not be taken into

account when determining eligibility for the basic STAR credit.

(B) Subject to the provisions of subparagraph (C) of this paragraph,

such basic STAR credit shall be the lesser of:

(i) the basic STAR tax savings for the school district portion in

which the taxpayer's primary residence is located, or

(ii) the taxpayer's qualifying taxes.

(C) If the qualifying taxes paid by the taxpayer constituted only a

portion of the total school district taxes that were levied upon the

taxpayer's primary residence for the associated fiscal year or, in the

case of a city school district that is subject to article fifty-two of

the education law, if the qualifying taxes paid by the taxpayer

constituted only a portion of the total combined city and school

district taxes that were levied upon the taxpayer's primary residence

for the associated fiscal year, the credit allowable to such taxpayer

shall be equal to the amount determined pursuant to subparagraph (B) of

this paragraph multiplied by the percentage that such portion

represents.

(4) Determination of enhanced STAR credit. (A) Beginning with taxable

years after two thousand twenty-five, an enhanced STAR credit shall be

available to a qualified taxpayer where both of the following conditions

are satisfied:

(i) At least one of the owners of the parcel that serves as the

taxpayer's primary residence is at least sixty-five years of age as of

December thirty-first of the taxable year. In the case of property owned

by a married couple, if only one of the spouses is sixty-five years of

age or over, the credit, once allowed, shall not be disallowed because

of the death of the older spouse so long as the surviving spouse is at

least sixty-two years of age as of December thirty-first of the taxable

year.

(ii) The affiliated income of the parcel that serves as the taxpayer's

primary residence is less than or equal to the income standard for the

taxable year established by the commissioner for the corresponding

"income tax year" pursuant to clause (C) of subparagraph (i) of

paragraph (b) of subdivision four of section four hundred twenty-five of

the real property tax law for purposes of the enhanced STAR exemption.

(B) Subject to the provisions of subparagraph (C) of this paragraph,

such credit shall be the lesser of:

(i) the enhanced STAR tax savings for the school district portion in

which the taxpayer's primary residence is located, or

(ii) the taxpayer's qualifying taxes.

(C) If the qualifying taxes paid by the taxpayer constituted only a

portion of the total school district taxes that were levied upon the

taxpayer's primary residence for the associated fiscal year or, in the

case of a city school district that is subject to article fifty-two of

the education law, if the qualifying taxes paid by the taxpayer

constituted only a portion of the total combined city and school

district taxes that were levied upon the taxpayer's primary residence

for the associated fiscal year, the credit allowable to such taxpayer

shall be equal to the amount determined pursuant to subparagraph (B) of

this paragraph multiplied by the percentage that such portion

represents.

(5) Disqualification. A taxpayer shall not qualify for the credit

authorized by this subsection if the parcel that serves as the

taxpayer's primary residence received the STAR exemption on the

assessment roll upon which school district taxes for the associated

fiscal year were levied. Provided, however, that the taxpayer may remove

this disqualification by switching to the credit in the manner provided

by subdivision seventeen of section four hundred twenty-five of the real

property tax law. Alternatively, the taxpayer may remove this

disqualification by renouncing the exemption and making any required

payments in the manner provided by section four hundred ninety-six of

the real property tax law. Any such switch to the credit or renunciation

shall be irrevocable.

(6) Special cases.

(A) A married couple may not receive a credit pursuant to this

subsection on more than one residence during any given taxable year,

unless living apart due to legal separation. Nor may a married couple

receive a credit pursuant to this subsection on one residence while

receiving an exemption pursuant to section four hundred twenty-five of

the real property tax law on another residence, unless living apart due

to legal separation.

(B) (i) In the case of property consisting of a mobile home that is

described in paragraph (1) of subdivision two of section four hundred

twenty-five of the real property tax law, the amount of the credit

allowable with respect to such mobile home shall be equal to the basic

STAR tax savings for the school district portion, or the enhanced STAR

tax savings for the school district portion, whichever is applicable,

that would be applied to a separately assessed parcel in the school

district portion with a taxable assessed value equal to twenty thousand

dollars multiplied by the latest state equalization rate or special

equalization rate for the assessing unit in which the mobile home is

located. Provided, however, that if the commissioner is in possession of

information, including but not limited to assessment records, that

demonstrates to the commissioner's satisfaction that the taxpayer's

mobile home is worth more than twenty thousand dollars, or if the

taxpayer provides the commissioner with such information, the taxpayer's

credit shall be increased accordingly, but in no case shall the credit

exceed the basic STAR tax savings or enhanced STAR tax savings,

whichever is applicable, for the school district portion.

(ii) The commissioner may implement an electronic system for the

reporting of information by owners and operators of manufactured home

parks, as defined by section two hundred thirty-three of the real

property law. Upon the implementation of such a system, each such owner

and operator shall file electronic statements with the commissioner

according to a schedule to be determined by the commissioner. Such

statement shall require reporting of names of all persons owning an

interest in the park, the services provided by the park owner to the

tenants, the name of the agent designated pursuant to subdivision l of

section two hundred thirty-three of the real property law, the names and

addresses of all tenants of the park, whether the tenant leases or owns

the home, the rent set for each lot in the park, and such additional

information as the commissioner may deem necessary for the proper

administration of the STAR exemption established pursuant to section

four hundred twenty-five of the real property tax law and the STAR

credit and any other property tax-based credit established pursuant to

this section. In the case of the first registration statement filed in a

calendar year, such statement shall also include a copy of all current

manufactured home park rules and regulations. In the case that the

manufactured home park rules and regulations are modified after the

filing of the first registration statement in a calendar year, the next

subsequent registration statement shall also include a copy of such

rules and regulations. The commissioner shall provide the commissioner

of housing and community renewal with the information contained in each

report no later than thirty days after the receipt thereof.

(iii) Beginning with the two thousand twenty-two taxable year, to

receive the credit authorized by this subsection, an owner of a mobile

home described by clause (i) of this subparagraph shall register for

such credit in the manner prescribed by the commissioner.

(C) In the case of a primary residence that is located in two or more

school districts, the applicable basic or enhanced STAR tax savings for

the school district portion shall be determined as follows:

(i) determine the sum of the total school district taxes that were

levied upon the taxpayer's primary residence for the associated fiscal

year by each of the school districts in which the residence is located;

(ii) for each such school district, divide the total school district

taxes that were levied upon the taxpayer's primary residence by that

school district for the associated fiscal year by the sum determined in

clause (i) of this subparagraph. Express the result as a percentage with

two decimal places;

(iii) for each such school district, multiply the percentage

determined in clause (ii) of this subparagraph by the basic or enhanced

STAR tax savings for the school district portion, whichever is

applicable; and

(iv) add the products determined in clause (iii) of this subparagraph.

(7) Disclosure of incomes and other information. (A) Where the

commissioner has denied a taxpayer's claim for the credit authorized by

this subsection in whole or in part on the grounds that the affiliated

income of the parcel in question exceeds the applicable limit, the

commissioner shall have the authority to reveal to that taxpayer the

names and incomes of the other taxpayers whose incomes were included in

the computation of such affiliated income.

(B) Notwithstanding any provision of law to the contrary, the names

and addresses of individuals who have applied for or are receiving the

credit authorized by this subsection may be disclosed to assessors,

county directors of real property tax services, municipal tax collecting

officers and enforcing officers within New York state. In addition, such

information may be exchanged with assessors and tax officials from

jurisdictions outside New York state if the laws of the other

jurisdiction allow it to provide similar information to this state. Such

information shall be considered confidential and shall not be subject to

further disclosure pursuant to the freedom of information law or

otherwise.

(8) Proof of claim. The commissioner may require a qualified taxpayer

to furnish the following information in support of his or her claim for

credit under this subsection: affiliated income, the total school

district taxes levied on the property for the associated fiscal year or,

in the case of a city school district that is subject to article

fifty-two of the education law, the total combined city and school

district taxes levied on the property for the associated fiscal year,

the qualifying taxes paid by the taxpayer, the names and taxpayer

identification numbers of all owners of the property and spouses who

primarily reside on the property, the parcel identification number and

all other information that may be required by the commissioner to

determine the credit.

(9) Returns. Whether or not the taxpayer is required to file a return

pursuant to section six hundred fifty-one of this article, the process

for requesting advance payment of such credit shall be as provided by

paragraph ten of this subsection.

(10) Advance payments. (A) The commissioner shall establish a

mechanism by which a qualified taxpayer may apply for an advance payment

of the credit authorized by this section, provided that:

(i) If the taxpayer acquired a new primary residence between January

first and July first of the taxable year, inclusive, any such

application must be submitted to the commissioner by the first day of

July of the taxable year, or such later date as may be prescribed by the

commissioner in order for the taxpayer's payment to be subject to the

processing schedule provided by subparagraph (B) of this paragraph, and

(ii) A qualified taxpayer who fails to apply for an advance payment of

such credit by such date may apply for and receive such credit in the

manner prescribed by the commissioner, provided that such application

shall be made within three years from the time that a return for the

taxable year would have had to be filed pursuant to section six hundred

fifty-one of this article. If approved, such payment shall be issued as

soon as is practicable after the submission of the application but shall

not be subject to the processing schedule prescribed by subparagraph (B)

of this paragraph, and

(iii) A qualified taxpayer who has applied for an advance payment of

such credit in a taxable year may continue to receive such advance

payments in future taxable years without reapplying as long as he or she

remains eligible therefor.

(B) On or before the date specified below, or as soon thereafter as

practicable, the commissioner shall determine the eligibility of

taxpayers for this credit utilizing the information available to him or

her as obtained from the applications submitted on or before July first

of that year, or such later date as may have been prescribed by the

commissioner for that purpose, and from such other sources as the

commissioner deems reliable and appropriate. For those taxpayers whom

the commissioner has determined eligible for this credit, the

commissioner shall advance a payment in the amount specified in

paragraph three, four or six of this subsection, whichever is

applicable. Such payment shall be issued by the date specified below, or

as soon thereafter as is practicable; provided that if such payment is

issued after such date, it shall be subject to interest at the rate

prescribed by subparagraph (A) of paragraph two of subsection (j) of

section six hundred ninety-seven of this article. Nothing contained

herein shall be deemed to preclude the commissioner from issuing

payments after such date to qualified taxpayers whose applications were

made after July first of that year, or such later date as may have been

prescribed by the commissioner for such purpose.

(i) The applicable dates for this purpose are as follows:

(I) If the school district tax roll is filed with the commissioner on

or before July first, the determination of eligibility shall be made by

July fifteenth, or as soon thereafter as is practicable, and the advance

payment shall be issued by July thirtieth, or as soon thereafter as is

practicable.

(II) If the school district tax roll is filed with the commissioner

after July first and on or before September first, the determination of

eligibility shall be made by September fifteenth, or as soon thereafter

as is practicable, and the advance payment shall be issued by September

thirtieth, or as soon thereafter as is practicable.

(III) If the school district tax roll is filed with the commissioner

after September first, the determination of eligibility shall be made by

the fifteenth day after such filing, or as soon thereafter as is

practicable, and the advance payment shall be issued by the thirtieth

day after such filing, or as soon thereafter as is practicable.

(ii) Notwithstanding the foregoing provisions of this subparagraph, in

the case of taxpayers whose primary residence is a cooperative apartment

or a mobile home that is subject to the provisions of subparagraph (A)

or (B) of paragraph six of this subsection, the payment shall be issued

by the sixtieth day following receipt of all of the data needed to

properly calculate the credit, or as soon thereafter as is practicable.

(C) A taxpayer who has failed to receive an advance payment that he or

she believes was due to him or her, or who has received an advance

payment that he or she believes is less than the amount that was due to

him or her, may request payment of the claimed deficiency in a manner

prescribed by the commissioner.

(D) An advance payment of credit provided pursuant to this subsection

that exceeds the taxpayer's qualifying taxes for that taxable year shall

be added back as tax on the income tax return for that taxable year.

(E) If the commissioner determines after issuing an advance payment

that it was issued in an excessive amount or to an ineligible or

incorrect party, the commissioner shall be empowered to utilize any of

the procedures for collection, levy and lien of personal income tax set

forth in this article, any other relevant procedures referenced within

the provisions of this article, and any other law as may be applicable,

to recoup the improperly issued amount; provided that in the event such

party was determined to be ineligible on the basis that his or her

primary residence received the STAR exemption in the associated fiscal

year, the improperly issued credit amount shall be deemed a clerical

error and shall be paid upon notice and demand without the issuance of a

notice of deficiency and shall be assessed, collected and paid in the

same manner as taxes.

(11) Administration. The provisions of this article, including the

provisions of sections six hundred fifty-three, six hundred fifty-eight,

and six hundred fifty-nine of this article and the provisions of part

six of this article relating to procedure and administration, including

the judicial review of the decisions of the commissioner, except so much

of section six hundred eighty-seven of this article that permits a claim

for credit or refund to be filed after the period provided for in

paragraph nine of this subsection and except sections six hundred

fifty-seven, six hundred eighty-eight and six hundred ninety-six of this

article, shall apply to the provisions of this subsection in the same

manner and with the same force and effect as if the language of those

provisions had been incorporated in full into this subsection and had

expressly referred to the credit allowed or returns filed under this

subsection, except to the extent that any such provision is either

inconsistent with a provision of this subsection or is not relevant to

this subsection. As used in such sections and such part, the term

"taxpayer" shall include a qualified taxpayer under this subsection and,

notwithstanding the provisions of subsection (e) of section six hundred

ninety-seven of this article, where a qualified taxpayer has protested

the denial of a claim for credit under this subsection and the time to

file a petition for redetermination of a deficiency or for refund has

not expired, he or she shall, subject to such conditions as may be set

by the commissioner, receive such information (A) that is contained in

any return filed under this article by a member of his or her household

for the taxable year for which the credit is claimed, and (B) that the

commissioner finds is relevant and material to the issue of whether such

claim was properly denied.

(12) When the calculation of any other personal income tax credit is

based in whole or in part upon the real property taxes paid by the

taxpayer, the amount of real property taxes so paid shall be reduced by

the credit authorized by this subsection, if applicable, in the course

of performing such calculation. When the calculation of any other

personal income tax credit is based in whole or in part upon an

individual's state tax liability, the credit authorized by this

subsection shall not be taken into account in the calculation of such

state tax liability. When the calculation of a city tax surcharge is

based in whole or in part upon the net state tax of an individual, the

credit authorized by this subsection shall not be taken into account in

the calculation of such net state tax.

(13) (A) Nothing herein shall be construed to preclude the

commissioner from making a preliminary advance payment of the credit

based upon an estimate of the STAR tax savings applicable to a school

district portion, where he or she finds that attempting to ascertain the

actual STAR tax savings applicable to the school district portion would

jeopardize the timely issuance of the payment. When making such an

estimate, the commissioner shall consider the STAR tax savings

applicable in the school district fiscal year preceding the associated

fiscal year, the allowable levy growth factor applicable to the

calculation of the tax levy limit for the associated fiscal year

pursuant to paragraph a of subdivision two of section two thousand

twenty-three-a of the education law, taxable assessed value where

appropriate, and such other information that in his or her judgment will

help make the estimate as accurate as possible.

(B) Nothing herein shall be construed to preclude the commissioner

from making a preliminary advance payment of the credit without

attempting to ascertain the taxpayer's qualifying taxes, where he or she

finds that attempting to ascertain the taxpayer's qualifying taxes would

jeopardize the timely issuance of the payment.

(C) If the commissioner determines that a taxpayer received a

preliminary advance payment that is above or below the advance payment

to which he or she was entitled under this subsection, the commissioner

shall provide notice to such taxpayer that the next advance payment due

to such taxpayer under this subsection shall be adjusted to reconcile

such underpayment or overpayment.

(D) A taxpayer who received a preliminary advance payment that

constitutes an overpayment shall not be required to pay interest on the

amount of the overpayment.

(E) On or after April first, two thousand nineteen, a taxpayer who is

found to have made a material misstatement on an application for the

credit authorized by this section shall be disqualified from receiving

such credit for six years. As used herein, the term "material

misstatement" shall have the same meaning as set forth in paragraph (a)

of subdivision thirteen of section four hundred twenty-five of the real

property tax law.

(14) The process employed by the commissioner in verifying eligibility

for the basic STAR credit shall be the same as for the enhanced STAR

credit, except to the extent that differences are required by law.

(fff) Farm workforce retention credit. (1) A taxpayer shall be allowed

a credit, to be computed as provided in section forty-two of this

chapter, against the tax imposed by this article.

(2) Application of credit. If the amount of credit allowed under this

subsection for any taxable year exceeds the taxpayer's tax for such

year, the excess will be treated as an overpayment of tax to be credited

or refunded in accordance with the provision of section six hundred

eighty-six of this article, provided, however, that no interest will be

paid thereon.

(ggg) School tax reduction credit for residents of a city with a

population over one million. (1) For taxable years beginning after two

thousand fifteen, a school tax reduction credit shall be allowed to a

resident individual of the state who is a resident of a city with a

population over one million, as provided below. The credit shall be

allowed against the taxes authorized by this article reduced by the

credits permitted by this article. If the credit exceeds the tax as so

reduced, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided however, that no interest

will be paid thereon. For purposes of this subsection, no credit shall

be granted to an individual with respect to whom a deduction under

subsection (c) of section one hundred fifty-one of the internal revenue

code is allowable to another taxpayer for the taxable year.

(2) The amount of the credit under this subsection shall be determined

based upon the taxpayer's income as defined in subparagraph (ii) of

paragraph (b) of subdivision four of section four hundred twenty-five of

the real property tax law.

(3) For taxable years beginning in two thousand sixteen, the credit

shall be determined as provided in this paragraph, provided that for the

purposes of this paragraph, any taxpayer under subparagraphs (A) and (B)

of this paragraph with income of more than two hundred fifty thousand

dollars shall not receive a credit.

(A) Married individuals filing joint returns and surviving spouses. In

the case of married individuals who make a single return jointly and of

a surviving spouse, the credit shall be one hundred twenty-five dollars.

(B) All others. In the case of an unmarried individual, a head of a

household or a married individual filing a separate return, the credit

shall be sixty-two dollars and fifty cents.

(4) For taxable years beginning after two thousand sixteen, the credit

shall equal the "fixed" amount provided by paragraph (4-a) of this

subsection plus the "rate reduction" amount provided by paragraph (4-b)

of this subsection.

(4-a) The "fixed" amount of the credit shall be determined as provided

in this paragraph, provided that any taxpayer with income of more than

two hundred fifty thousand dollars shall not receive such amount.

(A) Married individuals filing joint returns and surviving spouses. In

the case of married individuals who make a single return jointly and of

a surviving spouse, the "fixed" amount of the credit shall be one

hundred twenty-five dollars.

(B) All others. In the case of an unmarried individual, a head of a

household or a married individual filing a separate return, the "fixed"

amount of the credit shall be sixty-two dollars and fifty cents.

(4-b) The "rate reduction" amount of the credit shall be determined as

provided in this paragraph, provided that any taxpayer with income of

more than five hundred thousand dollars shall not receive such amount.

(A) For married individuals who make a single return jointly and for a

surviving spouse:

If the city taxable income is: The "rate reduction" amount is:

Not over $21,600 0.171% of the city taxable income

Over $21,600 but not over $500,000 $37 plus 0.228% of excess over

$21,600

Over $500,000 Not applicable

(B) For a head of household:

If the city taxable income is: The "rate reduction" amount is:

Not over $14,400 0.171% of the city taxable income

Over $14,400 but not over $500,000 $25 plus 0.228% of excess over

$14,400

Over $500,000 Not applicable

(C) For an unmarried individual or a married individual filing

a separate return:

If the city taxable income is: The "rate reduction" amount is:

Not over $12,000 0.171% of the city taxable income

Over $12,000 but not over $500,000 $21 plus 0.228% of excess over

$12,000

Over $500,000 Not applicable

(5) Part-year residents. If a taxpayer changes status during the

taxable year from resident to nonresident, or from nonresident to

resident, the school tax reduction credit authorized by this subsection

shall be prorated according to the number of months in the period of

residence.

(hhh) Life sciences research and development tax credit. (1) Allowance

of credit. A taxpayer who is eligible pursuant to section forty-three of

this chapter shall be allowed a credit to be computed as provided in

such section against the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowable under

this subsection for any taxable year exceeds the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded as provided in section six hundred eighty-six of

this article, provided, however, that no interest shall be paid thereon.

(iii) Credit for contributions to certain funds. For taxable years

beginning on or after January first, two thousand nineteen, an

individual taxpayer shall be allowed a credit against the tax imposed

under this article for an amount equal to eighty-five percent of the sum

of: (1) the amount contributed by the taxpayer during the immediately

preceding taxable year to any or all of the following accounts within

the charitable gifts trust fund set forth in section ninety-two-gg of

the state finance law: the health charitable account established by

paragraph a of subdivision four of section ninety-two-gg of the state

finance law, or the elementary and secondary education charitable

account established by paragraph b of subdivision four of section

ninety-two-gg of the state finance law; (2) the amount of qualified

contributions made by the taxpayer to Health Research, Inc. in

accordance with section two of the chapter of the laws of two thousand

eighteen that added this subsection; and (3) the amount of qualified

contributions made by the taxpayer to the State University of New York

Impact Foundation and/or the Research Foundation of the City University

of New York in accordance with section three of the chapter of the laws

of two thousand eighteen that added this subsection.

* (jjj) 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. If the amount of the credit allowed under

this subsection for any taxable year exceeds the taxpayer's tax for such

year, the excess will be treated as an overpayment of tax to be credited

or refunded in accordance with the provisions of section six hundred

eighty-six of this article, provided, however, that no interest will be

paid thereon.

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

see section forty-four of this chapter.

* NB There are 3 subsection (jjj)'s

* (jjj) 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, member of a limited liability company or

shareholder in an S corporation 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, limited liability company or S corporation.

(2) Overpayment. If the amount of the credit allowed under this

subsection for any taxable year exceeds the taxpayer's tax for the

taxable year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, no interest will

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 3 subsection (jjj)'s

* (jjj) Central business district toll credit. (1) For taxable years

beginning on or after January first, two thousand twenty-one, a resident

individual whose primary residence is located in the central business

district established pursuant to article forty-four-C of the vehicle and

traffic law and whose New York adjusted gross income for the taxable

year is less than sixty thousand dollars shall be entitled to a credit

as calculated pursuant to paragraph two of this subsection.

(2) The credit shall be equal to the aggregate amount of central

business district tolls paid by the taxpayer during the taxable year

pursuant to the central business district tolling program authorized by

article forty-four-C of the vehicle and traffic law. Provided, however,

that any toll that would constitute a trade or business expense under

section 162 of the internal revenue code shall be excluded.

(3) If the amount of the credit allowed under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, the excess

shall be treated as an overpayment of tax to be credited or refunded in

accordance with the provisions of section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon.

* NB There are 3 subsection (jjj)'s

(kkk) Credit for pass-through entity tax. (1) A taxpayer partner or

member of an electing partnership and a taxpayer shareholder of an

electing S corporation subject to tax under article twenty-four-A of

this chapter shall be entitled to a credit against the tax imposed by

this article as provided in this subsection. For purposes of this

subsection, the terms "electing partnership," "electing S corporation,"

"pass-through entity tax," and "direct share of pass-through entity tax"

shall have the same meanings as used in article twenty-four-A of this

chapter.

(2) The credit shall be equal to the partner's, member's or

shareholder's direct share of the pass-through entity tax.

(3) If a taxpayer is a partner, member or shareholder in multiple

electing partnerships and/or electing S corporations subject to tax

pursuant to article twenty-four-A of this chapter, the taxpayer's credit

shall be the sum of such credits calculated pursuant to paragraph two of

this subsection with regard to each entity in which the taxpayer has a

direct ownership interest.

(4) If the amount of the credit allowable pursuant to this subsection

for any taxable year exceeds the tax due for such year pursuant to this

article, the excess shall be treated as an overpayment, to be credited

or refunded, without interest.

(5) Limitation on credit. No credit shall be allowed to a taxpayer

under this subsection unless the electing partnership or electing S

corporation provided sufficient information to identify the taxpayer on

its pass-through entity tax return as required under paragraph two of

subsection (c) of section eight hundred sixty-five of this article for

an electing partnership or paragraph two of subsection (d) of section

eight hundred sixty-five of this article for an electing S corporation.

The credit allowed to a taxpayer under this subsection shall not exceed

the direct share of pass-through entity tax reported by such electing

partnership or electing S corporation attributable to such taxpayer on

the entity's return filed pursuant to section eight hundred sixty-five

of this article.

(lll) Restaurant return-to-work tax credit. (1) Allowance of credit. A

taxpayer shall be allowed a credit, to be computed as provided in

section forty-six of this chapter, against the tax imposed by this

article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for the taxable year exceeds the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

will be paid thereon.

* (mmm) New York city musical and theatrical production tax credit.

(1) Allowance of credit. A taxpayer shall be allowed a credit, to be

computed as provided in section twenty-four-c of this chapter, against

the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for the taxable year exceeds the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

shall be paid thereon.

* NB Repealed January 1, 2028

* (nnn) Farm employer overtime credit. (1) A taxpayer shall be allowed

a credit, to be computed as provided in section forty-two-a of this

chapter, against the tax imposed by this article.

(2) Application of credit. If the amount of credit allowed under this

subsection for any taxable year exceeds the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provision of section six

hundred eighty-six of this article, provided, however, that no interest

shall be paid thereon.

* NB There are 5 sb§ (nnn)'s

* (nnn) COVID-19 capital costs tax credit. (1) Allowance of credit. A

taxpayer shall be allowed a credit, to be computed as provided in

section forty-seven of this chapter, against the tax imposed by this

article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for the taxable year exceeds the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

will be paid thereon.

* NB There are 5 sb§ (nnn)'s

* (nnn) Grade no. 6 heating oil conversion tax credit. (1) Allowance

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

provided in section forty-seven of this chapter, against the tax imposed

by this article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for the taxable year exceeds the taxpayer's tax for such

year, the excess will be treated as an overpayment of tax to be credited

or refunded in accordance with the provisions of section six hundred

eighty-six of this article, provided, however, that no interest will be

paid thereon.

* NB There are 5 sb§ (nnn)'s

* (nnn) Additional restaurant return-to-work tax credit. (1) Allowance

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

provided in section forty-six-a of this chapter, against the tax imposed

by this article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for the taxable year exceeds the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

will be paid thereon.

* NB There are 5 sb§ (nnn)'s

* (nnn) Empire state digital gaming media production credit. (1)

Allowance of credit. A taxpayer who is eligible pursuant to section

forty-five of this chapter shall be allowed a credit to be computed as

provided in such section forty-five against the tax imposed by this

article. Under no circumstances may a single taxpayer receive more than

one million five hundred thousand dollars in tax credits per year.

(2) Application of credit. If the amount of the credit allowable under

this subsection for any taxable year exceeds the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded as provided in section six hundred eighty-six of

this article, provided, however, that no interest shall be paid thereon.

* NB There are 5 sb§ (nnn)'s

(ooo) 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. If the amount of the credit allowed under

this subsection for the taxable year exceeds the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

will be paid thereon.

* (ppp) Newspaper and broadcast media jobs tax credit. (1) Allowance

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

provided in section forty-nine of this chapter, against the tax imposed

by this article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for the taxable year exceeds the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

will be paid thereon.

* NB There are 2 sb (ppp)'s

* (ppp) Commercial security tax credit. (1) Allowance of credit. A

taxpayer shall be allowed a credit, to be computed as provided in

section forty-nine of this chapter, against the tax imposed by this

article.

(2) Application of credit. If the amount of the credit allowed under

this subsection for the taxable year exceeds the taxpayer's tax for such

year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, that no interest

will be paid thereon.

* NB There are 2 sb (ppp)'s

(qqq) Inflation refund credit. (1) A taxpayer who meets the

eligibility standards in paragraph two of this subsection shall be

allowed a credit against the taxes imposed by this article in the amount

specified in paragraph three of this subsection for tax year two

thousand twenty-five.

(2) To be eligible for the credit, the taxpayer (or taxpayers filing

joint returns)(a) must have been a full-year resident in the state of

New York in tax year two thousand twenty-three, (b) (i) must have had

New York adjusted gross income of three hundred thousand dollars or less

in tax year two thousand twenty-three if they filed a New York state

resident income tax return as married taxpayers filing jointly or a

qualified surviving spouse, or (ii) must have had New York adjusted

gross income of one hundred fifty thousand dollars or less in tax year

two thousand twenty-three if they filed a New York state resident income

tax return as a single taxpayer, married taxpayer filing a separate

return, or head of household, and (c) must not have been claimed as a

dependent by another taxpayer in tax year two thousand twenty-three.

(3) Amount of credit. (a) For taxpayers who meet the eligibility

standards in paragraph two who filed a New York state resident income

tax return as married taxpayers filing jointly or a qualified surviving

spouse, (i) with New York adjusted gross income of greater than one

hundred fifty thousand dollars but no greater than three hundred

thousand dollars in tax year two thousand twenty-three, the credit

amount shall be three hundred dollars, or (ii) with New York adjusted

gross income of no greater than one hundred fifty thousand dollars in

tax year two thousand twenty-three, the credit amount shall be four

hundred dollars, and (b) for taxpayers who meet the eligibility

standards in paragraph two who filed a New York state resident income

tax return as a single taxpayer, married taxpayer filing a separate

return, or head of household, (i) with New York adjusted gross income of

greater than seventy-five thousand dollars but no greater than one

hundred fifty thousand dollars in tax year two thousand twenty-three,

the credit amount shall be one hundred fifty dollars, or (ii) with New

York adjusted gross income of no greater than seventy-five thousand

dollars in tax year two thousand twenty-three, the credit amount shall

be two hundred dollars.

(4) The amount of the credit shall be treated as an overpayment of tax

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

six hundred eighty-six of this article, provided, however, that no

interest shall be paid thereon. The commissioner shall determine the

taxpayer's eligibility for this credit utilizing the information

available to the commissioner on the taxpayer's personal income tax

return filed for tax year two thousand twenty-three. For those taxpayers

whom the commissioner has determined eligible for this credit, the

commissioner shall advance a payment in the amount specified in

paragraph three of this subsection. A taxpayer who failed to receive an

advance payment that they believe was due, or who received an advance

payment that they believe is less than the amount that was due, may

request payment of the claimed deficiency in a manner prescribed by the

commissioner.

(rrr) Semiconductor research and development tax credit. (1) Allowance

of credit. A taxpayer that has been approved by the commissioner of

economic development to participate in the semiconductor research and

development tax credit program and has been issued a certificate of tax

credit pursuant to section three hundred fifty-nine-e of the economic

development law shall be allowed to claim a credit against the tax

imposed by this article. The credit shall equal up to fifteen percent of

the cost or other basis for federal income tax purposes of the qualified

investment and shall be allowable in each taxable year for which the

commissioner of economic development has issued a certificate of tax

credit, for up to ten consecutive taxable years. In no event shall a

taxpayer be allowed a credit greater than the amount listed on the

certificate of tax credit issued by the commissioner of economic

development. In the case of a taxpayer who is a partner in a

partnership, member of a limited liability company or shareholder in an

S corporation, the taxpayer shall be allowed its pro rata share of the

credit earned by the partnership, limited liability company or S

corporation. No cost or expense paid or incurred by the taxpayer that is

the basis for this credit shall be the basis for any other tax credit

provided by this chapter.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year exceeds the taxpayer's tax for the

taxable year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, no interest will

be paid thereon.

(3) Reporting. The taxpayer shall attach to its tax return its

certificate of tax credit issued by the commissioner of economic

development pursuant to section three hundred fifty-nine-e of the

economic development law. In no event shall the taxpayer be allowed a

credit greater than the amount of the credit listed on the certificate

of tax credit, or in the case of a taxpayer who is a partner in a

partnership, a member of a limited liability company, or shareholder in

an S corporation, its pro rata share of the amount of credit listed on

the certificate of tax credit.

(4) Credit recapture. If a certificate of eligibility or a certificate

of tax credit issued by the department of economic development under

article seventeen-A of the economic development law is revoked by such

department because the taxpayer does not meet the eligibility

requirement set forth in subdivision six of section three hundred

fifty-nine-c of economic development law, the amount of credit described

in this subdivision and claimed by the taxpayer prior to that revocation

shall be added back to tax in the taxable year in which any such

revocation becomes final.

(sss) Semiconductor workforce training program tax credit. (1)

Allowance of tax credit. A taxpayer that has been approved by the

commissioner of economic development to participate in the semiconductor

workforce training program and has been issued a certificate of tax

credit pursuant to section five hundred three of the economic

development law shall be allowed to claim a credit against the tax

imposed by this article. The credit shall equal seventy-five percent of

wages, salaries or other compensation, training costs, and wrap around

services, up to a credit of twenty-five thousand dollars per employee

receiving eligible training, up to one million dollars per eligible

non-semiconductor manufacturing business and up to five million dollars

per eligible semiconductor manufacturing business pursuant to

subdivision three of section five hundred three of the economic

development law. In no event shall a taxpayer be allowed a credit

greater than the amount listed on the certificate of tax credit issued

by the commissioner of economic development. In the case of a taxpayer

who is a partner in a partnership, member of a limited liability company

or shareholder in an S corporation, the taxpayer shall be allowed its

pro rata share of the credit earned by the partnership, limited

liability company or S corporation. The credit shall be allowed in the

taxable year in which the eligible training is completed. No cost or

expense paid or incurred by the taxpayer that is the basis for this

credit shall be the basis for any other tax credit provided by this

chapter.

(2) Application of credit. If the amount of the credit allowed under

this subsection for any taxable year exceeds the taxpayer's tax for the

taxable year, the excess shall be treated as an overpayment of tax to be

credited or refunded in accordance with the provisions of section six

hundred eighty-six of this article, provided, however, no interest will

be paid thereon.

(3) Reporting. The taxpayer shall attach to its tax return its

certificate of tax credit issued by the commissioner of economic

development pursuant to section five hundred three of the economic

development law. In no event shall the taxpayer be allowed a credit

greater than the amount of the credit listed on the certificate of tax

credit, or in the case of a taxpayer who is a partner in a partnership,

a member of a limited liability company, or shareholder in an S

corporation, its pro rata share of the amount of credit listed on the

certificate of tax credit.

(4) Credit recapture. If a certificate of eligibility or a certificate

of tax credit issued by the department of economic development under

article twenty-eight of the economic development law is revoked by such

department because the taxpayer does not meet the eligibility

requirement set forth in subdivision three of section five hundred three

of the economic development law, the amount of credit described in this

subsection and claimed by the taxpayer prior to that revocation shall be

added back to tax in the taxable year in which any such revocation

becomes final.

(ttt) Organ donation credit. (1) For taxable years beginning on or

after January first, two thousand twenty-five, a full-year resident

taxpayer who, while living, donates one or more of their human organs to

another human being for human organ transplantation will be allowed a

credit against the taxes imposed by this article in the amount specified

in paragraph two of this subsection. For purposes of this paragraph,

"human organ" means all or part of a liver, pancreas, kidney, intestine,

lung, or bone marrow.

(2) A taxpayer may claim the credit allowed under this subsection only

once and in the taxable year in which the human organ transplantation

occurs. Such credit may be claimed, in an amount not to exceed ten

thousand dollars, for only the following unreimbursed expenses that are

incurred by the taxpayer and related to the taxpayer's organ donation:

(A) travel expenses;

(B) lodging expenses; and

(C) lost wages.

Provided, however, that this credit shall not apply to any organ

donation for which the taxpayer has received benefits under section

forty-three hundred seventy-one of the public health law.

(3) If the amount of the credit allowed under this subsection for any

taxable year shall exceed the taxpayer's tax for such year, the excess

shall be treated as an overpayment of tax to be credited or refunded in

accordance with the provisions of section six hundred eighty-six of this

article, provided, however, that no interest shall be paid thereon.

(uuu) Protecting our wallets energy rebate (POWER) credit. (1) A

taxpayer who meets the eligibility standards in paragraph two of this

subsection shall be allowed a credit against the taxes imposed by this

article in the amount specified in paragraph three of this subsection

for tax year two thousand twenty-six.

(2) To be eligible for the credit, the taxpayer (or taxpayers filing

joint returns) (A) must have been a full-year resident of the state of

New York in tax year two thousand twenty-four, (B) must have timely

filed a return for tax year two thousand twenty-four pursuant to section

six hundred fifty-one of this article, determined with regard to

extensions pursuant to section six hundred fifty-seven of this article,

(C) (i) must have had New York adjusted gross income of three hundred

thousand dollars or less in tax year two thousand twenty-four if they

filed a New York state resident income tax return as married taxpayers

filing jointly or a qualified surviving spouse, or (ii) must have had

New York adjusted gross income of one hundred fifty thousand dollars or

less in tax year two thousand twenty-four if they filed a New York state

resident income tax return as a single taxpayer, married taxpayer filing

a separate return, or head of household, and (D) must not have been

claimed as a dependent by another taxpayer in tax year two thousand

twenty-four.

(3) Amount of credit. (A) For taxpayers who meet the eligibility

standards in paragraph two who filed a New York state resident income

tax return as married taxpayers filing jointly or a qualified surviving

spouse, (i) with a New York adjusted gross income of greater than one

hundred fifty thousand dollars but no greater than three hundred

thousand dollars in tax year two thousand twenty-four, the credit amount

shall be one hundred fifty dollars, or (ii) with a New York adjusted

gross income of no greater than one hundred fifty thousand dollars in

tax year two thousand twenty-four, the credit amount shall be two

hundred dollars, and (B) for taxpayers who meet the eligibility

standards in paragraph two who filed a New York state resident income

tax return as a single taxpayer, married taxpayer filing a separate

return, or head of household with a New York adjusted gross income of no

greater than one hundred fifty thousand dollars in tax year two thousand

twenty-four, the credit amount shall be one hundred dollars.

(4) The amount of the credit shall be treated as an overpayment of tax

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

six hundred eighty-six of this article, provided, however, that no

interest shall be paid thereon. The commissioner shall determine the

taxpayer's eligibility for this credit utilizing information available

to the commissioner on the taxpayer's personal income tax return filed

for tax year two thousand twenty-four. For those taxpayers whom the

commissioner has determined eligible for this credit, the commissioner

shall advance a payment in the amount specified in paragraph three of

this subsection. A taxpayer who failed to receive an advance payment

that they believe was due, or who received an advance payment that they

believe is less than the amount that was due, may request payment of the

claimed deficiency in a manner prescribed by the commissioner.

(vvv) Empire state apprenticeship tax credit. (1)(A) A taxpayer that

has been certified by the commissioner of labor as a certified employer

pursuant to section twenty-five-c of the labor law shall be allowed a

credit against the tax imposed by this article equal to the amount

specified under subdivision (c) of section twenty-five-c of the labor

law. In no event shall the taxpayer be allowed a credit greater than the

amount of the credit listed on the final certificate of tax credit.

(B) A taxpayer that is a partner in a partnership, member of a limited

liability company or shareholder in an S corporation that has been

certified by the commissioner of labor as a certified employer pursuant

to section twenty-five-c of the labor law shall be allowed its pro rata

share of the credit earned by the partnership, limited liability company

or S corporation.

(2) If the amount of the credit allowed under this subsection exceeds

the taxpayer's tax for the taxable year, any amount of credit not

deductible in that taxable year will be treated as an overpayment of tax

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

six hundred eighty-six of this article. Provided, however, no interest

will be paid thereon.

(yyy) Order of credits. Credits allowable under this article which

cannot be carried over and which are not refundable shall be deducted

first. Credits allowable under this article which can be carried over,

and carryovers of such credits, shall be deducted next, and among such

credits, those whose carryover is of limited duration shall be deducted

before those whose carryover is of unlimited duration. Credits allowable

under this article which are refundable shall be deducted last.

(zzz) Cross references.--For credit in respect of:

(1) taxes withheld on wages, see section six hundred seventy-three,

(2) taxes imposed on a resident by other states, see section six

hundred twenty,

(3) taxes overpaid for a prior taxable year, see section six hundred

eighty-six,

(4) taxes paid by a trust for a prior taxable year on income

subsequently distributed, see sections six hundred twenty-one and six

hundred thirty-five.