NY Tax L § 1310 (2021)
2021 New York Laws TAX - Tax Article 30 - City Personal Income Tax 1310 - Credits Against Tax.

§ 1310. Credits against tax. (a) Credit to trust beneficiary receiving accumulation  distribution. A beneficiary of a trust who is subject to a city personal income tax imposed  pursuant  to  the  authority  of  this article   and  whose  New  York  adjusted  gross  income  under  article twenty-two of this chapter includes  all  or  part  of  an  accumulation distribution by such trust, as defined in section six hundred sixty-five of  the internal revenue code, shall be allowed a credit against the tax otherwise due  under  such  city  personal  income  tax  for  all  or  a proportionate  part of any tax paid by the trust under such tax or under any prior local law of the city for any  preceding  taxable  year  which would  not have been payable if the trust had in fact made distributions to its beneficiaries at the  times  and  in  the  amounts  specified  in section  six  hundred sixty-six of the internal revenue code. The credit under this subsection shall not reduce the tax otherwise  due  from  the beneficiary  under  such city personal income tax to an amount less than would have been due if the accumulation distribution or his part thereof were excluded from his New York adjusted  gross  income  as  defined  in section six hundred twelve of this chapter.  (b)  Credit  for  tax withheld. Wages upon which tax is required to be withheld shall be taxable under a city personal  income  tax  as  if  no withholding  were  required, but any amount of tax actually deducted and withheld under such tax in any calendar year shall  be  deemed  to  have been  paid to the state tax commission on behalf of the person from whom withheld, and such person shall be credited with having paid that amount of tax for the taxable year beginning  in  such  calendar  year.  For  a taxable  year of less than twelve months, the credit shall be made under regulations of the state tax commission.  (c) Credit relating to net capital gain. For taxable  years  beginning in  nineteen  hundred  eighty-seven,  a credit against the city personal income tax determined in accordance with section thirteen  hundred  four shall  be  allowed.  The  amount  of the credit shall be one-half of one percent of net capital gain includible in city adjusted gross income for the taxable year. The credit allowed by this section  shall  not  exceed the  tax  determined  in  accordance with section thirteen hundred four, reduced by the credits permitted under subsections (a) and (d)  of  this section.  (d)  Household  credit. (1) For taxable years beginning after nineteen hundred eighty-six, a  credit  against  the  city  personal  income  tax determined  in  accordance  with  section thirteen hundred four shall be allowed. The credit, computed as described  in  paragraph  two  of  this subsection,  shall  not  exceed  the  tax  determined in accordance with section thirteen hundred four reduced  by  the  credit  permitted  under subsection (a) of this section.  (2)  (A)  For  any  individual  who  is  not married nor the head of a household nor a surviving spouse, the amount  of  the  credit  shall  be determined in accordance with the following table:  If household gross                 The credit shall be:    income is:                             For taxable years       For taxable years                            beginning after 1986      beginning after                              and before 1996              1995  Not over $7,500                   $15                      $15 Over $7,500 but not  over $10,000                     $10                      $15 Over $10,000 but not  over $12,500                     $ 0                      $10  (B)  For  any husband and wife, head of household or surviving spouse, the amount of the credit shall be determined by multiplying  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 by the credit factor for the taxable year as specified in the following table:  If household gross                 The credit factor is:    income is:                         For taxable years beginning in   For taxable years                         1987   1988  1989 through 1995    beginning after                                                               1995 Not over $12,500         $30    $50         $50                $30 Over $12,500 but not   over $15,000           $20    $40         $50                $30 Over $15,000 but not   over $17,500           $10    $20         $25                $25 Over $17,500 but not   over $20,000           $ 0    $15         $15                $15 Over $20,000 but not   over $22,500           $ 0    $ 0         $ 0                $10  (3) For 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 city income  tax  returns  are filed. Provided, however, that a husband or wife who is required to file a separate city 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.  (D) "Household gross income" shall be computed in all cases as if each member of the household were a resident for the entire taxable year.  (E) If a taxpayer changes his status  during  his  taxable  year  from resident  to nonresident, or from nonresident to resident, the household credit shall be prorated according to the number of months in the period of residence. In the case of a husband  and  wife,  if  either  or  both changes  his  or  her  status  from  resident  to  nonresident  or  from nonresident to resident and  separate  returns  are  filed,  the  credit computed  for  the  entire  year  shall  be divided first as provided in subparagraph (C) of this paragraph and then prorated  according  to  the number of months in the period of residence.   * (e)  State  school  tax  reduction  credit.  (1) For taxable years beginning after nineteen hundred ninety-seven,  and  ending  before  two thousand  sixteen,  a state school tax reduction credit shall be allowed as provided in the following tables. 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  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.  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 paragraph 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. 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.   Beginning  in  the  two  thousand  ten  tax  year  and  each  tax year thereafter through two thousand fifteen,  the  "more  than  two  hundred fifty  thousand  dollar" income limitation shall be adjusted by applying the inflation factor set forth herein, and rounding each result  to  the nearest  multiple of one hundred dollars. The department shall establish the income limitation to be associated with each subsequent tax year  by applying  the  inflation  factor  set  forth  herein to the figures that define the income limitation that were applicable to the  preceding  tax year,  as  determined  pursuant  to  this  subsection, and rounding each result  to  the  nearest  multiple  of   one   hundred   dollars.   Such determination  shall be made no later than March first, two thousand ten and each year thereafter.  (A) Married individuals filing joint returns and surviving spouses. In the case of a husband and wife who make a single return jointly and of a surviving spouse:      For taxable years beginning:       The credit shall be:                in 2001-2005                    $125                in 2006                         $230                in 2007-2008                    $290                in 2009 - 2015                  $125  (B) All others. In the case of an unmarried individual, a  head  of  a household or a married individual filing a separate return:      For taxable years beginning:       The credit shall be:                in 2001-2005                    $62.50                in 2006                         $115                in 2007-2008                    $145                in 2009 - 2015                  $62.50  (4)  Husband  and  wife who make a joint return. If a husband and wife make a single return jointly, the credit under this subsection shall  be determined under paragraph two of this subsection, if either of them has attained  the  age  of  sixty-five on or before the close of the taxable year.  (5) Part-year residents. If  a  taxpayer  changes  status  during  the taxable  year  from  resident  to  nonresident,  or  from nonresident to resident, the state  school  tax  reduction  credit  shall  be  prorated according to the number of months in the period of residence.   * NB There are 2 sub§ (e)'s   * (e) Credit for city of New York unincorporated business tax paid.  (1)  Notwithstanding  any  other provision of law to the contrary, any city imposing  a  tax  under  this  article  is  hereby  authorized  and empowered  to  adopt and amend local laws for any taxable year beginning after nineteen hundred ninety-seven, as specified in  such  local  laws, providing  for  a credit as provided in paragraph two of this subsection against the taxes imposed pursuant to the authority granted  by  section thirteen  hundred  one  of  this  article  on  the  city  taxable income determined pursuant to sections thirteen hundred four, thirteen  hundred  four-A  and  thirteen hundred four-B of this article and on the ordinary income portion of a lump sum distribution determined pursuant to section thirteen hundred one-B of this article, to any city resident individual, estate  or trust whose city adjusted gross income includes income, gain, loss or deductions from one or more unincorporated businesses  conducted by  such  city  resident  individual,  estate or trust on which a tax is imposed by chapter five of title eleven of the  administrative  code  of the  city of New York, or a distributive share of income, gain, loss and deductions of, or guaranteed payments from, one or more partnerships  on which  a tax is imposed by such chapter. Any such local laws may contain provisions to ensure that such credit shall not reduce the tax paid by a city resident below that which would be paid by such  city  resident  if such city resident were a city nonresident.  (2)  (A)  Subject  to  the limitation set forth in subparagraph (B) of this paragraph, the credit allowed to a  taxpayer  for  a  taxable  year shall be equal to all or a portion of the amount determined in paragraph three  of  this subsection, provided, however, such portion shall not be less than:  (i) If the city taxable income is forty-two thousand dollars or  less, sixty-five  percent  of the amount determined in paragraph three of this subsection.  (ii) If the city taxable income is  greater  than  forty-two  thousand dollars  but  not greater than one hundred forty-two thousand dollars, a percentage  of  the  amount  determined  in  paragraph  three  of   this subsection  to be determined by subtracting from sixty-five percent, one tenth of a percentage point (.001) for every increment  of  two  hundred dollars, or fractional part thereof, of city taxable income in excess of forty-two thousand dollars.  (iii) If the city taxable income is greater than one hundred forty-two thousand  dollars, fifteen percent of the amount determined in paragraph three of this subsection.  (B) Notwithstanding anything to the contrary in  subparagraph  (A)  of this  paragraph,  the  credit  allowed  to a taxpayer for a taxable year under this subsection shall not exceed the sum of the taxes  that  would otherwise  be imposed on such taxpayer for such taxable year pursuant to the authority granted by section thirteen hundred one of this article on the city taxable income determined pursuant to sections thirteen hundred four, thirteen hundred  four-A  and  thirteen  hundred  four-B  of  this article  and  on  the ordinary income portion of a lump sum distribution determined pursuant to section thirteen hundred one-B of  this  article, reduced  by the credits allowed to such taxpayer pursuant to subsections (a), (c) and (d) of this section.  (3) Subject to the provisions of subparagraph (C) of  this  paragraph, the amount determined in this paragraph is the sum of:  (A)  for  each  unincorporated business conducted by the taxpayer, the tax imposed by chapter five of title eleven of the  administrative  code of  the city of New York on such unincorporated business for its taxable year ending with the taxable year  of  the  taxpayer  and  paid  by  the unincorporated business; and  (B)  for  each  unincorporated  business  in  which  the taxpayer is a partner, the product of:  (i) the sum of (I) the tax imposed by chapter five of title eleven  of the  administrative  code of the city of New York on such unincorporated business for its taxable year ending within or with the taxable year  of the  partner and paid by the unincorporated business and (II) the amount of any credit or credits taken  by  the  unincorporated  business  under subdivision (j) of section 11-503 of the administrative code of the city  of  New York for its taxable year ending within or with the taxable year of the partner; and  (ii)  a  fraction,  the  numerator  of  which  is the net total of the partner's distributive share of income, gain, loss  and  deductions  of, and  guaranteed  payments  from,  the  unincorporated  business for such taxable year, and the denominator of which is the sum, for such  taxable year,  of  the  net  total distributive shares of income, gain, loss and deductions  of,  and  guaranteed  payments  to,  all  partners  in   the unincorporated  business for whom or which such net total (as separately determined for each partner) is greater than zero.  (C) For a taxpayer that changes its status from a city resident  to  a city  nonresident  or  from a city nonresident to a city resident during the taxable year:  (i) the amount determined in subparagraph (A) of this paragraph  shall be,  with  respect  to  each  unincorporated  business  conducted by the taxpayer, the tax imposed  by  chapter  five  of  title  eleven  of  the administrative  code  of  the  city  of  New York on such unincorporated business for its taxable year  ending  with  the  taxable  year  of  the taxpayer  and  paid  by  the  unincorporated  business,  multiplied by a fraction, the numerator of which is that portion of  the  income,  gain, loss  and  deductions  of  the  unincorporated  business included in the taxpayer's city adjusted gross income for the  portion  of  the  taxable year  during which the taxpayer was a city resident, and the denominator of which is the total, for such taxable year, of the income, gain,  loss and deductions of the unincorporated business, and  (ii)  the amount determined in clause (ii) of subparagraph (B) of this paragraph shall be a fraction, the numerator of which is that portion of the taxpayer's net total distributive share of income,  gain,  loss  and deductions  of,  and  that  portion  of  guaranteed  payments  from, the unincorporated business included in the taxpayer's city  adjusted  gross income for the portion of the taxable year during which the taxpayer was a  city  resident,  and  the  denominator  of which is the sum, for such taxable year, of the net total distributive shares of income, gain, loss and deductions of, and guaranteed  payments  to,  all  partners  in  the unincorporated business, for whom or which such net total (as separately determined for each partner) is greater than zero.  (4)  No local law enacted pursuant to the authority of this subsection shall be effective unless a certified copy of such local law  is  mailed by  registered  mail  to the state department of taxation and finance at its office in Albany at least fifteen days prior to the date  it  is  to become  effective. However, the state department of taxation and finance may waive and reduce such fifteen-day minimum notice  requirement  to  a mailing  of such certified copy by registered mail within such period if it deems such action  to  be  consistent  with  its  duties  under  this article.   * NB There are 2 sub§ (e)'s  (f)  Earned income tax credit. (1) Notwithstanding any other provision of law to the contrary, any city having a population of one  million  or more,  acting  through  its local legislative body, is hereby authorized and empowered to adopt and amend local laws granting in any  such  city, for  taxable  years beginning after two thousand three, a credit against the city personal income tax equal to five percent of the earned  income credit allowed under section thirty-two of the internal revenue code for the same taxable year.  (2)  In  the case of a resident taxpayer, the credit provided by local law adopted pursuant to this subsection shall  be  allowed  against  the taxes  authorized  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)  If  a  taxpayer changes his or her status during the taxable year from city resident to city nonresident, or from city nonresident to city resident, the credit determined under this subsection shall  be  limited to  the  amount determined by multiplying the amount of such credit by a fraction, the numerator of which is such taxpayer's city adjusted  gross income,  as  defined  in  chapter  seventeen  of  title  eleven  of  the administrative code  of  the  city  of  New  York,  for  the  period  of residence, and the denominator of which is such taxpayer's city adjusted gross  income  determined  as  if he or she were a city resident for the entire taxable year. City adjusted gross income  shall  be  adjusted  as provided  in  section  11-1754 of the administrative code of the city of New York. The credit as so limited  shall  be  applied  as  provided  in paragraph two of this subsection.  (4)  Subject  to the provisions of paragraph three of this subsection, in the case of a husband and wife who file a joint return, but  who  are required  to  determine their city personal income taxes separately, the credit authorized pursuant to this subsection may be applied against the tax of either or divided between them as they may elect. 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 city personal income tax return.  (5)  A  local  law  enacted  pursuant  to  this  subsection  shall  be applicable with respect to any taxable year only if it has been  enacted on  or  before the date that is forty-five days after the effective date of this subsection and for taxable years subsequent to taxable year  two thousand  four,  on  or before July thirty-first of such taxable year. A certified copy of such local law shall be mailed by registered  mail  to the  state  department  of  taxation and finance at its office in Albany within fifteen days of its enactment. However, the state  department  of taxation  and  finance may allow additional time for such certified copy to be mailed if it deems such action to be consistent  with  its  duties under this article.  (6)  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 and issue any   refund  for  the  allowable  credit  amount  provided  under  this subsection. 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 chapter, provided, however, that no  interest shall be paid thereon.