N.Y. Tax Law § 863: Pass-through entity tax credit

§ 863. Pass-through entity tax credit. (a) Personal income tax credit.

(1) A taxpayer subject to tax under article twenty-two of this chapter

that is a direct partner or member in an electing partnership or a

direct shareholder of an electing S corporation subject to tax under

this article shall be allowed a credit against the tax imposed pursuant

to article twenty-two of this chapter, computed pursuant to the

provisions of subsection (kkk) of section six hundred six of this

chapter. An entity that is disregarded for tax purposes will be

disregarded for purposes of determining if a taxpayer is a direct

partner or member of an electing partnership or direct shareholder of an

electing S corporation.

(2) Limitation on credit. No credit shall be allowed to a taxpayer

under paragraph one of this subsection unless the electing partnership

or electing S corporation paid the tax imposed under this article and

provided sufficient information on the pass-through entity tax return as

prescribed by the commissioner to identify that taxpayer. Such

information shall include, but not be limited to, the social security

number or taxpayer identification number of the article twenty-two

taxpayer who will claim the credit (even in the case of a disregarded

entity owned by such taxpayer).

(b) Limitation on credit. The aggregate amount of credits claimed by

all partners, members or shareholders of an electing partnership or

electing S corporation pursuant to subsection (a) of this section shall

not exceed the tax due under subsection (a) of section eight hundred

sixty-two of this article from such electing partnership or electing S

corporation for the taxable year.