N.Y. Tax Law § 870: City pass-through entity tax credit

§ 870. City pass-through entity tax credit. (a) Personal income tax

credit. (1) A city taxpayer who is a direct partner or member in an

electing city partnership or a direct shareholder of an electing city

resident S corporation subject to tax under this article shall be

allowed a credit against the tax imposed pursuant to the authority of

article thirty of this chapter, computed pursuant to the provisions of

subsection (g) of section thirteen hundred ten of this chapter. An

entity that is disregarded for tax purposes will be disregarded for

purposes of determining if a city taxpayer is a direct partner or member

of an electing city partnership or a direct shareholder of an electing

city resident S corporation.

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

taxpayer under paragraph one of this subsection unless the electing city

partnership or electing city resident S corporation paid the tax imposed

under this article and provided sufficient information on the city

pass-through entity tax return as prescribed by the commissioner to

identify such city taxpayer. Such information shall include, but not be

limited to, the social security number or taxpayer identification number

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

disregarded entity owned by such city taxpayer).

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

all partners, members or shareholders of an electing city partnership or

an electing city resident S corporation pursuant to subsection (a) of

this section shall not exceed the tax due under section eight hundred

sixty-nine of this article from such electing city partnership or

electing city resident S corporation for the taxable year.