NY Tax L § 606 (2021)
2021 New York Laws TAX - Tax Article 22 - Personal Income Tax Part 1 - General 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.  (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 taxpayer who qualifies as an owner of a new business for purposes of paragraph ten of this subsection may, at his 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.  (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, as defined in paragraph two of subsection (c)  of  section forty-seven of the internal revenue code, which qualify as the basis for the credit provided for under paragraph one of subsection (b) of section thirty-eight  of  such  code  by  reason  of  subsection  one of section forty-six of such code, paid  or  incurred  with  respect  to  any  barn located  in  this  state which is a qualified rehabilitated building, as such term is defined in paragraph one of subsection (c) of such  section forty-seven.  For  purposes  of  this paragraph, the term "barn" means a building originally designed and used  for  storing  farm  equipment  or agricultural products, or for housing livestock. 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-three, 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 one year and for not less than thirty-five  hours  each  week,  a  qualified veteran within the state.  The taxpayer may claim the credit in the year in  which  the qualified veteran completes one year 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, 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;  who  (i) was released from active duty by general or honorable discharge after September eleventh, two thousand  one,  or  (ii)  has  a qualifying  condition,  as defined in section three hundred fifty of the executive  law,  and  has received a discharge other than bad conduct or dishonorable from such service after September  eleventh,  two  thousand one,  or (iii) is a discharged LGBT veteran, as defined in section three hundred fifty of the executive law, and has received a  discharge  other than  bad  conduct  or  dishonorable  from  such service after September eleventh, two thousand one;  (B) who commences employment by the qualified  taxpayer  on  or  after January  first,  two  thousand  fourteen,  and before January first, two thousand twenty-two; 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 ten percent of the total amount of wages  paid  to  he  qualified  veteran  during  the veteran's first full year 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 fifteen percent of the total amount of wages paid to the qualified veteran during the veteran's first full year of employment. The credit allowed pursuant to this subsection shall  not exceed  in  any  taxable  year,  five thousand dollars for any qualified veteran and fifteen thousand dollars for any qualified veteran who is  a disabled veteran.  (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)  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) 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  and is  at  least  four  years  of  age.  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.  (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.  (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.  (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.  (e) Real property tax circuit breaker credit. (1) For purposes of this subsection:  (A)  "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.  (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)  "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 his 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.  (F)  "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 his household.  (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  qualified  taxpayer  shall  be allowed a credit as provided in paragraph three hereof 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  state tax  commission,  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 state tax commission, shall pay as an overpayment the  full  amount  of  the  credit,  without interest.  (3)  Determination  of  credit.  (A)  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 subparagraph 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  (B)  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 subparagraph 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  (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 tax commission may, by regulation, prescribe in  order  to  properly reflect  the credit or portion thereof attributable to such residence or residences and such period or periods.  (5)  The  tax  commission  may  prescribe  that  the credit under this subsection shall be determined in whole or in part by the use of  tables prescribed by such commission. Such tables shall set forth the credit to the nearest dollar.  (6)  Only one credit per household and per qualified taxpayer shall be allowed per taxable year under this subsection. When 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  tax  commission  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.  (A)  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 his 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 husband and wife are entitled shall be applied against the tax of both  spouses  and  any  overpayment shall be made to both spouses.  (B)  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  tax  commission,  the  credit  or  the portion  of the credit if divided, allowed to the qualified taxpayer may be  applied  by  the  tax  commission  toward  any  liability  for   the aforementioned taxes.  (7) No credit shall be granted under this subsection:  (A)  If  household  gross income for the taxable year 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 tax commission 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 tax commission, which shall make available such forms and instructions for filing such returns.  (10) Proof of claim.  The  tax  commission  may  require  a  qualified taxpayer  to  furnish  the following information in support of his claim for credit under this subsection: 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 tax commission 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)  The  commissioner  of  taxation  and  finance  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 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.  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.  (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.  (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, 2022   * 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, 2026 ** (xl) Workers with disabilities    Amount of tax credit under subsection (zz)     credit under subdivision                                      forty-eight of section two                                      hundred ten-B   ** NB Repealed January 1, 2023  (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  (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, 2024  (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.  (2)  Eligible  farmer.  For  purposes  of  this  subsection,  the term "eligible farmer" means a  taxpayer  whose  federal  gross  income  from farming  for  the  taxable year is at least two-thirds of excess federal gross income. 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 has a federal gross income from farming for the taxable  year which  is  at  least  two-thirds  of  excess  federal  gross income; and provided  further  that,  in  determining  such  income  eligibility,  a taxpayer  may,  for  any  taxable  year, use the average of such federal gross income from farming for that taxable year and such income for  the two  consecutive  taxable years immediately preceding such taxable year. Excess federal gross income means the amount  of  federal  gross  income from  all sources for the taxable year reduced by the sum (not to exceed thirty thousand dollars) of those items included in federal gross income which consist of (i) earned income,  (ii)  pension  payments,  including social  security  payments,  (iii)  interest,  and  (iv)  dividends. For purposes of this paragraph, the term "earned income" shall  mean  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. For the purposes of this paragraph, payments  from  the state's  farmland  protection program, administered by the department of agriculture and markets, shall be included as federal gross income  from farming for otherwise eligible farmers.  (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.  (8)  Special rules. For purposes of this subsection, the term "federal gross  income  from  farming"  shall  include  gross  income  from   the production of maple syrup, cider, Christmas trees derived from a managed Christmas  tree  operation whether dug for transplanting or cut from the stump, or from a commercial  horse  boarding  operation  as  defined  in subdivision thirteen of section three hundred one of the agriculture and markets  law,  or  from  the sale of wine from a licensed farm winery as provided for in article six of the alcoholic beverage  control  law,  or from  the  sale  of cider from a licensed farm cidery as provided for in section fifty-eight-c of the alcoholic beverage control law.  (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) Property 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 in the amount specified in paragraph three  of  this  subsection  for  tax  years  two thousand sixteen, two thousand seventeen, two thousand eighteen, and two thousand nineteen.  (2)  (a)  To  be  eligible  for the credit, the taxpayer (or taxpayers filing joint returns) on the personal income tax return  filed  for  the taxable  year two years prior, must have (i) been a resident, (ii) owned and primarily  resided  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 (iii) had qualified gross income  no greater than two hundred  seventy-five  thousand  dollars.  Provided, however, that no credit shall be allowed if any of the following apply:  (i) Such property is located in an independent school district that is subject  to the provisions of section two thousand twenty-three-a of the education law and that has adopted a budget in excess of  the  tax  levy limit  prescribed  by that section. To render its taxpayers eligible for the credit authorized by  this  subsection,  the  school  district  must certify its compliance with such tax levy limit in the manner prescribed by  subdivision  two  of  section  two  thousand  twenty-three-b  of the education law.  (ii) Such property is located  in  a  city  with  a  dependent  school district  that  is  subject  to the provisions of section three-c of the general municipal law and that has adopted a budget in excess of the tax levy limit prescribed by that section. To render its taxpayers  eligible for  the credit authorized by this subsection, the city must certify its compliance with  such  tax  levy  limit  in  the  manner  prescribed  by subdivision two of section three-d of the general municipal law.  (iii) Such property is located in the city of New York.  (3)  Amount  of  credit. (a) For the two thousand sixteen taxable year (i) for  a  taxpayer  residing  in  real  property  located  within  the metropolitan  commuter  transportation  district  (MCTD) and outside the city of New York, the amount of the credit shall be  $130;  (ii)  for  a taxpayer  residing in real property located outside the MCTD, the amount of the credit shall be $185.  (b) For the two thousand seventeen,  two  thousand  eighteen  and  two thousand  nineteen  taxable  years  (i)  For  a  taxpayer  who owned and primarily resided in real property receiving the basic  STAR  exemption, the  amount  of  the  credit shall equal the STAR tax savings associated with such basic STAR exemption, multiplied by the following percentage:  (A) for the two thousand seventeen taxable year: Qualified Gross Income                  Percentage Not over $75,000                        28% Over $75,000 but not over $150,000      20.5% Over $150,000 but not over $200,000     13% Over $200,000 but not over $275,000     5.5% Over $275,000                           No credit  (B) for the two thousand eighteen taxable year: Qualified Gross Income                  Percentage Not over $75,000                        60% Over $75,000 but not over $150,000      42.5% Over $150,000 but not over $200,000     25% Over $200,000 but not over $275,000     7.5% Over $275,000                           No credit  (C) for the two thousand nineteen taxable year: Qualified Gross Income                  Percentage Not over $75,000                        85% Over $75,000 but not over $150,000      60% Over $150,000 but not over $200,000     35% Over $200,000 but not over $275,000     10% Over $275,000                           No credit  (c) For a taxpayer who owned and primarily resided  in  real  property receiving  the  enhanced  STAR exemption, the amount of the credit shall equal the STAR tax savings associated with such enhanced STAR exemption, multiplied by the following percentage: Taxable Year                            Percentage two thousand seventeen                  12% two thousand eighteen                   26% two thousand nineteen                   34%  (d) 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.  (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.  (c)  "Metropolitan  commuter  transportation district" or "MCTD" means the metropolitan commuter transportation district as defined in  section twelve hundred sixty-two of the public authorities 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. 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.  (2)  Eligible  farmer.  For  purposes  of  this  subsection,  the term "eligible farmer" means a  taxpayer  whose  federal  gross  income  from farming  for  the  taxable year is at least two-thirds of excess federal gross income.  Excess federal gross income means the amount  of  federal gross  income  from  all sources for the taxable year reduced by the sum (not to exceed thirty thousand  dollars)  of  those  items  included  in federal  gross  income  that consist of: (i) earned income, (ii) pension payments, including social security payments, (iii) interest,  and  (iv) dividends.  For  purposes  of  this  paragraph, the term "earned income" shall mean wages, salaries, tips and other  employee  compensation,  and those  items  of  gross income that are includible in the computation of net earnings from self-employment. For the purposes of  this  paragraph, payments  from  the state's farmland protection program, administered by the department of agriculture and markets, shall be included as  federal gross income from farming for otherwise eligible farmers.  (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 shall be thirty-five percent of the first six thousand dollars in qualified first-year wages earned by  each qualified  employee.  "Qualified  first-year  wages" means wages paid or incurred by the taxpayer during the taxable year to qualified  employees which  are  attributable, with respect to any such employee, to services rendered during the one-year period beginning with the day the  employee begins work for the taxpayer.  (4)  Credit  where  federal  work opportunity tax credit applies. With respect to any qualified employee whose qualified first-year wages under paragraph three of this 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  thirty-five percent of the first six thousand dollars in qualified second-year wages earned  by each such employee. "Qualified second-year wages" means wages paid or incurred by the taxpayer during the taxable  year  to  qualified employees  which are attributable, with respect to any such employee, to services rendered during the one-year period beginning  one  year  after the employee begins work for the taxpayer.  (5) Carryover. 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-two.  (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, 2026   * (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.  (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-four.  (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-three. 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  twenty-five,  a  taxpayer  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 twenty-five, a taxpayer 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 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 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)   Except  in  the  case  of  a  qualified  rehabilitation  project 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,  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.  (6) For purposes of this subsection the  term  "small  project"  means qualified  rehabilitation expenditures totaling two million five hundred thousand dollars or less.  (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  ten  thousand  dollars  per  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 ten thousand dollars per vehicle.  (2) Definition. 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 by the federal  Architecture and  Transportation  Barriers  Compliance  Board,  in  Code  of  Federal Regulations, title 36, section 1192.23, and the  Federal  Motor  Vehicle Safety Standards, Code of Federal Regulations, title 29, part 57.  (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, 2022   * 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.   * NB Effective until January 1, 2023  (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)  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 his or her  primary  residence  in  this  state  on  December thirty-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.  (iii) If a resident individual was an owner of the property during the taxable year but did not own it on December thirty-first of the  taxable year, he or she shall be considered a qualified taxpayer if the property was  his  or her primary residence during the taxable year and he or she paid qualifying taxes on that property while he  or  she  was  still  an owner of that property.  (iv)  If  a  resident  individual  has  acquired ownership of property during a taxable year, such resident individual shall not be  considered a qualified taxpayer for that taxable year to the extent that an advance payment of the credit for that taxable year has been issued to the prior owner with respect to the same property, unless such resident individual can  demonstrate  that  he or she paid qualifying taxes on such property during the taxable year, and that the prior owner did not.  (B) "Affiliated income" shall mean for  purposes  of  the  basic  STAR credit,  the  combined  income  of  all  of the owners of the parcel who resided primarily thereon as of December  thirty-first  of  the  taxable year,  and  of any owners' spouses residing primarily thereon as of such date, and for purposes of the enhanced STAR credit, the combined  income of  all  of  the owners of the parcel as of December thirty-first of the taxable year, and of any owners' spouses residing primarily  thereon  as of  such  date;  provided  that  for  both  purposes 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. 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 his or her 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. Provided further, that if  the  qualified taxpayer  was  an  owner of the property during the taxable year but did not own it on December  thirty-first  of  the  taxable  year,  then  the determination  as  to  whether  the  income  of  an individual should be included in "affiliated income" shall be based upon the ownership and/or residency status of that individual as of the first  day  of  the  month during  which  the  qualified  taxpayer  ceased  to  be  an owner of the property, rather than as of December thirty-first of the taxable year.  (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 levied  upon  the taxpayer's primary residence for the associated fiscal year that were actually paid by the taxpayer during  the  taxable  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  levied  upon the taxpayer's primary residence for the associated fiscal year that were actually paid by  the  taxpayer  during the  taxable  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.  (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.  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 fifteen,  an  enhanced  STAR  credit  shall  be available to a qualified taxpayer where both of the following conditions are satisfied:  (i)  All  of  the  owners  of the parcel that serves as the taxpayer's primary residence are at least sixty-five years of age  as  of  December thirty-first  of the taxable year or, in the case of property owned by a married couple or by siblings, at least one of the owners  is  at  least sixty-five  years  of  age as of that date. The terms "siblings" as used herein shall have the same meaning as set forth in section four  hundred sixty-seven  of the real property tax law. In the case of property owned by a married couple, one of whom 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,  and  municipal  tax collecting officers. In addition, where an agreement is in place between the  commissioner  and  the head of the tax department of another state, such information may be  disclosed  to  such  official  or  his  or  her designees.  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; provided,  however,  the  commissioner shall  permit  a  taxpayer to request that such adjustment be made on an originally filed timely income tax return for the tax year in which such overpayment or underpayment occurred, provided such return is  filed  on or  before  the  due  date for such return, determined without regard to extensions.  (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.  (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, 2024  (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.