2023 New York Laws › TAX - Tax › Article 33 - Franchise Taxes on Insurance Corporations › 1511 - Credits.

§  1511.  Credits.  (a)  Credit  for  certain  other premium taxes. In
computing the tax imposed by this  article  there  shall  be  allowed  a
credit  for  the  amount of taxes paid or accrued by the taxpayer during
the taxable year on premiums for any insurance against loss or damage by
fire under section nine  thousand  one  hundred  four  or  section  nine
thousand  one hundred five of the insurance law or under the charters of
the cities of Buffalo or New York; provided, however,  that  any  unused
credit remaining may not be carried over to any other year.
(b)  Credit  against  reciprocal  taxes  imposed  by  this  state.  In
assessing taxes under the reciprocal provisions of section one  thousand
one hundred twelve of the insurance law, credit shall be allowed for any
taxes paid under this article.
(c)  Credit  for certain taxes payable to other jurisdictions. (1) If,
by the laws of any state other than this state, or by the action of  any
public  official of such other state, any insurer organized or domiciled
in this state, or the duly authorized agents thereof, shall be  required
to pay taxes for the privilege of doing business in such other state and
such  amounts  are  imposed  or  assessed because the taxes which are or
would be imposed under this chapter and the insurance law upon  insurers
organized  or  domiciled  in  such  other  state  are greater than those
required of insurers organized or domiciled in this state by the laws of
such other state for the privilege of doing business therein,  then  and
in  every case, to the extent such amounts are legally due to such other
states, an insurer organized or domiciled in  this  state  may  claim  a
credit,  as  hereinafter  provided,  against the tax payable pursuant to
this article of a sum not to exceed ninety  per  cent  of  such  amount.
Provided,  such credit shall in no event be greater than the tax payable
pursuant to this article during the taxable year with respect  to  which
such  amount  has  been  imposed  or  assessed by such other states. For
purposes of this section, the term "taxes for  the  privilege  of  doing
business"  shall  include,  but  shall  not  be  limited to, a tax on or
measured by income.
(2) A credit may be claimed for the amount  computed  as  provided  in
paragraph  one  of  this subdivision, on the return required pursuant to
section fifteen hundred fifteen, against the  tax  imposed  pursuant  to
this article for the taxable year in which such amount shall be paid. To
the  extent  such  credit  shall  exceed  the amount payable pursuant to
section fifteen hundred sixteen of this article  for  the  taxable  year
against  which  the credit is allowed, the difference between the amount
allowed as a credit and the tax  payable  pursuant  to  section  fifteen
hundred  sixteen  shall  be  credited or refunded by the tax commission,
without interest.
(3) The credit allowed  pursuant  to  this  subdivision  shall  be  in
addition  to the credits allowed pursuant to subdivisions (a) and (b) of
this section.
(4) The superintendent of financial services and  the  tax  commission
shall  examine  claims for credit or refund made under this subdivision.
If the superintendent of financial services or the tax commission  shall
determine that any amount for which a credit shall have been claimed was
not  legally  due to another state or that an error exists in the amount
of credit shown on such return, or the amount claimed  as  a  refund  or
refunded,  the  tax  commission shall take appropriate action under this
chapter for the assessment and collection of any tax resulting from  the
disallowance  of  a  claim  for credit made under this subdivision or to
disallow any such claim for refund.
(5) Any taxpayer which commences an action or proceeding in any  state
or  federal court to contest the validity of any assessment made against
the taxpayer by another state pursuant to a statute similar  to  section

one  thousand  one  hundred  twelve  of  the  insurance law or any other
statute or regulation of another state under which retaliatory taxes  or
other  charges  are imposed or assessed against such taxpayer shall give
the  state  tax  commission and the superintendent of financial services
written notice of the commencement of such action or  proceeding  within
five days after such commencement.
(d)  Credit  relating to eligible business facilities. (1) On or after
April first, nineteen hundred eighty-three, for taxable years  beginning
before  January first, two thousand, a credit against the tax imposed by
this article shall be allowed only to an insurance corporation owning or
operating an eligible  business  facility  where  such  corporation  has
received  a  certificate of eligibility for tax credits, or a renewal or
extension thereof, for  such  facility  from  the  New  York  state  job
incentive  board prior to April first, nineteen hundred eighty-three, or
has received a certificate of eligibility for tax credits, or a  renewal
or  extension  thereof,  for such facility from the state tax commission
subsequent to such date pursuant to paragraph eight of this subdivision,
and only with respect to such facility, to be  computed  as  hereinafter
provided.
(2)  The  amount  of the credit allowable in any taxable year shall be
the sum determined by multiplying the tax otherwise due by a  percentage
to be determined by:
(A)  ascertaining  the percentage which the total of eligible property
values during the taxable year, as defined in  paragraph  four  of  this
subdivision,  bears  to  the  average  value  of  all  real and tangible
personal property connected with the insurance corporation  and  located
within   the   state,  during  such  year.  For  the  purposes  of  this
subparagraph only, real and tangible personal  property  connected  with
the  insurance corporation shall include not only such property owned by
the insurance corporation but also property rented to it, and the  value
of  rented  property  shall  be  deemed to be eight times the net annual
rental rate, that is, the annual  rental  rate  paid  by  the  insurance
corporation less any annual rental rate received by it from subrentals.
(B)  ascertaining  the  percentage which the total wages, salaries and
other  personal  service  compensation  during  the  taxable   year   to
employees, except general executive officers, serving in jobs created or
retained in an eligible area (as the term "eligible area" was defined by
section  one  hundred fifteen of the commerce law as it existed on March
thirty-first, nineteen hundred eighty-three) by such business  facility,
bears   to   the  total  wages,  salaries  and  other  personal  service
compensation during such taxable year of  such  insurance  corporation's
employees within the state, except general executive officers.
(C)  adding  together  the  percentages so determined and dividing the
result by two; provided, however, that if no wages,  salaries  or  other
personal  service  compensation  was  paid  or incurred by the insurance
corporation during such year to employees in  this  state,  subparagraph
(B)  of  this  paragraph  shall  be disregarded and the amount of credit
allowable shall be determined by multiplying the tax  otherwise  due  by
the percentage specified in subparagraph (A) of this paragraph.
(3)  In no event shall the credit herein provided for be allowed in an
amount which will reduce the tax payable to less than the minimum  fixed
by  paragraph  four of subdivision (a) of section fifteen hundred two of
such chapter.
(4) (A) Eligible property values, for the purposes of this subsection,
shall include such part of the value of depreciable  real  and  tangible
personal   property   included  in  an  eligible  business  facility  as
represents:
(i)  expenditures  paid  or  incurred  by  the  taxpayer  for  capital
improvements consisting of the construction, reconstruction, erection or
improvement  of real property included in an eligible business facility,
which  construction,  reconstruction,  erection   or   improvement   was
commenced  on  or  after  July  first,  nineteen hundred sixty-eight and
expenditures paid or incurred by the taxpayer  for  the  acquisition  of
real  property,  included  in an eligible business facility, on or after
January first, nineteen hundred seventy-seven.
(ii) in the case of real property leased by the taxpayer from  another
party,   eight   times  the  portion  of  the  net  annual  rental  rate
attributable to such expenditures paid or incurred  by  the  lessor  for
such  construction, reconstruction, erection or improvement commenced on
or after July first, nineteen hundred sixty-eight and, with  respect  to
real  property  leased  by  the  taxpayer from another party on or after
January first, nineteen hundred seventy-seven, eight times any remaining
portion of the net annual rental rate.
(iii) expenditures paid or incurred by the taxpayer for  the  purchase
of  tangible  personal  property,  other  than  vehicles, included in an
eligible business facility, provided such property was purchased  on  or
after July first, nineteen hundred sixty-eight; and
(iv)  in  the case of tangible personal property, other than vehicles,
leased by the taxpayer from another party and included  in  an  eligible
business  facility, eight times the net annual rental rate, provided the
period for which such property was leased by the taxpayer  began  on  or
after July first, nineteen hundred sixty-eight.
(B)  Provided,  however, eligible property values for purposes of this
subsection shall not include expenditures paid or incurred more than one
year prior to  the  filing  of  an  application  for  a  certificate  of
eligibility  pursuant  to  section  one hundred nineteen of the commerce
law, as such section existed on  March  thirty-first,  nineteen  hundred
eighty-three.
(5)  The  total of all credits allowed pursuant to this subdivision in
any taxable year or  years  with  reference  to  any  eligible  business
facility shall not exceed the total eligible property values included in
such facility.
(6)  If a credit is allowed for any taxable year as herein provided on
the basis of a certificate of eligibility, and if  such  certificate  is
revoked  or  modified,  the  taxpayer  shall  report  such revocation or
modification in its report for the taxable year during which  it  occurs
and  the  tax  commission shall recompute such credit and may assess any
additional tax resulting from such recomputation within the  time  fixed
by  paragraph nine of subsection (c) of section ten hundred eighty-three
of this chapter.
(7)  If  a  business  facility  owned  or  operated  by  an  insurance
corporation  shall  be  an eligible business facility for only part of a
taxable year, the credit allowed by this subdivision shall  be  prorated
according to the period such facility was an eligible business facility,
and  if  the  total  of  the eligible property values shall have changed
during any  taxable  year,  a  pro-rata  adjustment  shall  be  made  in
computing such credit.
(8)  The  state  tax  commission shall be empowered, on or after April
first,  nineteen  hundred  eighty-three,  to  issue  a  certificate   of
eligibility  for  tax  credits  to  a  taxpayer for an eligible business
facility with regard to which such taxpayer has, prior  to  July  first,
nineteen  hundred  eighty-three,  received  from  the New York state job
incentive board initial approval of an application for such  certificate
by such board as evidenced by the minutes of the meeting of the board at
which such application was approved, or a letter of intent authorized by

section  102.4 of part one hundred two of title five of the codes, rules
and regulations of the state of New York regarding such  certificate  of
eligibility  and  to  renew,  extend,  revoke or modify a certificate of
eligibility  for  tax credits, pursuant to section one hundred twenty of
the commerce law as such section existed on March thirty-first, nineteen
hundred eighty-three.
(9) For purposes of the requirement for  eligibility  for  the  credit
allowed under this subdivision that a business facility create or retain
not  less  than  five jobs as provided in subdivision (c) of section one
hundred eighteen of the commerce law as such section  existed  on  March
thirty-first,  nineteen  hundred eighty-three, a business facility shall
have (i) created not less than five jobs only if the number of jobs  for
the  taxable  year  exceeds  the  number  of  jobs  at  the  time of the
commencement of the project as stated on  its  application  for  initial
approval  by five or more; or (ii) retained not less than five jobs only
if initial approval was based on the retention of five or more jobs  and
(A)  the  number  of  jobs for the taxable year is at least equal to the
number of jobs at the time of the commencement of the project as  stated
on  its  application  for initial approval or (B) where initial approval
was based on the retention of fewer jobs than the number of jobs at  the
time of the commencement of the project as stated on its application for
initial  approval,  the  number of jobs for the taxable year is at least
equal to the  number  approved  for  retention.  For  purposes  of  this
paragraph,  the  phrase  "initial approval was based on the retention of
five or more jobs" shall mean that such initial approval  was  given  by
the  job  incentive  board  to  an  applicant that had not stated in its
application for initial approval that it would increase  the  number  of
jobs at its facility by at least five.
(e)  Mortgage  recording tax credit. (1) A taxpayer shall be allowed a
credit, to be credited against the tax  imposed  by  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 credit herein provided for be allowed in an
amount which will reduce the tax payable to less than  the  minimum  tax
fixed  by  paragraph  four of subdivision (a) of section fifteen hundred
two of this article or section fifteen hundred two-a  of  this  article,
whichever  is  applicable.  If,  however, the amount of credit allowable
under this subdivision for any taxable year  reduces  the  tax  to  such
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.
(f) Credit relating to life and health insurance guaranty  corporation
assessments.  (1) Allowance of credit. For taxable years beginning on or
after January first, two thousand twenty-four, a credit shall be allowed
against the tax imposed pursuant to this  article  (other  than  section
fifteen hundred five-a of this article) as hereinafter provided.
(2) Amount of credit. The amount of the credit for each taxpayer shall
equal  the amount shown on the certificate of tax credit, or the amounts
shown on such certificates, issued to such taxpayer pursuant to  section
seven  thousand  seven hundred twelve of the insurance law. With respect
to each such certificate, the amount of the credit must  be  claimed  in
the  taxable year that begins in the calendar year that such certificate
is issued.
(3) Carryover. The credit  allowed  under  this  subdivision  for  any
taxable year shall not reduce the tax due for such year to less than the
minimum  fixed  by  paragraph four of subdivision (a) of section fifteen
hundred two of this article or section fifteen  hundred  two-a  of  this
article,  whichever  is  applicable.  However,  if  the amount of credit
allowable under this subdivision for any taxable year reduces the tax to
such 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.
(4) Eligibility. To be eligible for the  credit,  the  taxpayer  shall
have  been  issued  a certificate, or certificates, of tax credit by the
department of financial services  pursuant  to  section  seven  thousand
seven  hundred  twelve  of the insurance law, each of which certificates
shall set forth the amount of the credit that may  be  claimed  and  the
certificate  date. A taxpayer that is a partner in a partnership, member
of a  limited  liability  company  or  shareholder  in  a  subchapter  S
corporation  that  has  received  a certificate, or certificates, of tax
credit shall be allowed its pro rata share of the credit earned  by  the
partnership, limited liability company or subchapter S corporation.
(5)  Tax  return requirement. The taxpayer is required to include with
its tax return in the form prescribed  by  the  commissioner,  proof  of
receipt of its certificate, or certificates, of tax credit issued by the
department of financial services.
(6)   Information  sharing.  Notwithstanding  any  provision  of  this
chapter, employees of the  department  of  financial  services  and  the
department shall be allowed and are directed to share and exchange:
(A)  information  regarding  the credit allowed or claimed pursuant to
this subdivision and taxpayers that are claiming the credit; and
(B) information contained  in  or  derived  from  credit  claim  forms
submitted  to  the  department.  All  information  exchanged between the
department of financial services and the department shall not be subject
to public disclosure or inspection  under  article  six  of  the  public
officers law.
(7)  Credit  recapture.  If  a certificate of tax credit issued by the
department of financial services  under  section  seven  thousand  seven
hundred  twelve  of the insurance law is revoked by such department, the
amount of credit described  in  this  subdivision  and  claimed  by  the
taxpayer  prior  to  such  revocation  shall be added back to tax in the
taxable year in which any such revocation becomes final. If an amount of
credit on any  such  certificate  of  tax  credit  is  modified  by  the
department  of  financial services, the difference between the amount of
credit described in this subdivision and claimed by the  taxpayer  prior
to  such modification and the modified amount shall be added back to tax
in the taxable year in which any such modification becomes final.
(8) Net assessments. No amount of any net  assessments  paid  by  such
taxpayer  included  as the basis for the calculation of the amount shown

on any such certificate shall be the basis  for  any  other  tax  credit
under this chapter.
(g)  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  the
credit shall be as prescribed in paragraph four hereof.
(2)  For  purposes of this subdivision, the following terms shall have
the following meanings: (A) "Empire zone wages" means wages paid by  the
taxpayer  for  full-time  employment,  other  than  to general executive
officers, 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 provision 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 a 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,  excluding  general  executive
officers, 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,  excluding  general  executive  officers,
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 subdivision.  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
(A) the product of three thousand dollars and the  average  number  of
individuals (excluding general executive officers) employed full-time by
the taxpayer, computed pursuant to the provisions of subparagraph (C) of
paragraph  two  of  this subdivision, 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
(B) the product of fifteen hundred dollars and the average  number  of
individuals   (excluding  general  executive  officers  and  individuals
described in subparagraph (A) of this paragraph) employed  full-time  by
the taxpayer, computed pursuant to the provisions of subparagraph (C) of
paragraph  two  of  this subdivision, who received empire zone wages for
more than half of the taxable year.
(C) 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 (A) or subparagraph (B)  of  this  paragraph,  unless  such
related  person  was  never allowed a credit under this subdivision with
respect to such employees. For the  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.
(D)  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
(A) or (B) 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.
(E) 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
subdivision  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  enterprise
purchased its assets.
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 (i) in the case of taxpayers  subject
to  tax  under  subdivision  (b)  of section fifteen hundred ten of this
article, the lesser of (I) the limitation on tax  computed  pursuant  to
subdivision  (a) of section fifteen hundred five, or (II) the greater of
the sum of the taxes imposed under  sections  fifteen  hundred  one  and
fifteen   hundred  ten  or  the  amount  of  tax  computed  pursuant  to
subdivision (b) of section fifteen hundred five, or (ii) for  all  other
insurance  corporations,  the  tax imposed under section fifteen hundred
two-a of this article, computed without regard to  any  credit  provided
for under this article.
(5)  The  credit  or  carryovers  of  such  credit  allowed under this
subdivision for any taxable year shall not, in the aggregate, reduce the
tax due for such year to less than the minimum tax  fixed  by  paragraph
four  of  subdivision (a) of section fifteen hundred two of this article
or by section fifteen  hundred  two-a  of  this  article,  whichever  is
applicable.  However,  if  the  amount  of  credit or carryovers of such
credit, or both, allowed under this subdivision  for  any  taxable  year
reduces  the  tax  to  such  amount,  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 in paragraph four hereof, 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 taxpayer's tax for such year or years.
(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.
(g-1)  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-six, a taxpayer shall be allowed a
credit, to be computed as provided in this subdivision, against the  tax
imposed  by  this  article,  for hiring and employing, for not less than
twelve continuous and uninterrupted months (hereinafter referred  to  as
the  twelve-month  period)  in  a  full-time  or  part-time  position, a
qualified veteran within the state. The taxpayer may claim the credit in
the year in which  the  qualified  veteran  completes  the  twelve-month
period  of employment by the taxpayer. If the taxpayer claims the credit
allowed under this subdivision, the taxpayer may not use the hiring of a

qualified veteran that is the basis for this credit in the basis of  any
other credit allowed under this article.
(2) Qualified veteran. A qualified veteran is an individual:
(A)  who  served  on  active duty in the United States army, navy, air
force, space force, marine corps, coast guard or the  reserves  thereof,
or  who  served  in  active  military  service of the United States as a
member of the army national guard, air national guard, New York guard or
New York naval militia, or who served in the active  uniformed  services
of  the  United  States  as  a  member  of the commissioned corps of the
national oceanic and  atmospheric  administration  or  the  commissioned
corps  of  the United States public health service; who (i) was released
from active duty by general  or  honorable  discharge,  or  (ii)  has  a
qualifying  condition,  as  defined  in  section  one  of  the veterans'
services law, and has received a discharge other  than  bad  conduct  or
dishonorable  from  such service, or (iii) is a discharged LGBT veteran,
as defined in section  one  of  the  veterans'  services  law,  and  has
received  a  discharge  other than bad conduct or dishonorable from such
service;
(B) who commences employment by the qualified  taxpayer  on  or  after
January  first,  two  thousand  fourteen,  and before January first, two
thousand twenty-five; and
(C) who certifies by signed affidavit, under penalty of perjury,  that
he or she has not been employed for thirty-five or more hours during any
week  in  the  one hundred eighty day period immediately prior to his or
her employment by the taxpayer.
(3) Employer prohibition. An employer shall not discharge an  employee
and  hire  a qualifying veteran solely for the purpose of qualifying for
this credit.
(4) Amount of credit. The  amount  of  the  credit  shall  be  fifteen
percent  of  the  total  amount  of  wages paid to the qualified veteran
during the veteran's first twelve-month period of employment.  Provided,
however,  that,  if  the  qualified  veteran  is  a disabled veteran, as
defined in paragraph (b) of subdivision one of  section  eighty-five  of
the  civil service law, the amount of the credit shall be twenty percent
of the total amount of wages paid to the qualified  veteran  during  the
veteran's  first  twelve-month  period of employment. The credit allowed
pursuant to this subdivision shall not exceed in any taxable  year:  (i)
fifteen  thousand  dollars  for  any  qualified  veteran,  other  than a
disabled veteran, employed in a  full-time  position  for  one  thousand
eight  hundred  twenty  or  more  hours in one twelve-month period, (ii)
twenty thousand dollars for any qualified  veteran  who  is  a  disabled
veteran  employed in a full-time position for one thousand eight hundred
twenty or more hours in one twelve-month period,  (iii)  seven  thousand
five  hundred  dollars  for any qualified veteran, other than a disabled
veteran, employed in a part-time position  for  at  least  one  thousand
forty  hours but not more than one thousand eight hundred nineteen hours
in one twelve-month period,  and  (iv)  ten  thousand  dollars  for  any
qualified  veteran  who  is  a  disabled veteran employed in a part-time
position for at least one thousand forty hours but  not  more  than  one
thousand eight hundred nineteen hours in one twelve-month period.
(5)  Carryover.  The  credit  allowed  under  this subdivision for any
taxable year shall not reduce the tax due for such year to less than the
amount prescribed in  paragraph  four  of  subdivision  (a)  of  section
fifteen  hundred  two  of  this article or the minimum tax prescribed in
section fifteen hundred two-a of this article, whichever is  applicable.
However,  if  the  amount of credit allowable under this subdivision for
any taxable year reduces the tax to such amount, 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.
(h)  Empire  zone  capital  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, excluding general executive
officers, of two hundred  fifty  or  fewer,  computed  pursuant  to  the
provisions  of  subparagraph  (C)  of paragraph two of subsection (g) 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.
(2) The credit  and  carryover  of  such  credit  allowed  under  this
subdivision for any taxable year shall not, in the aggregate, reduce the
tax  due  for such year to less than the minimum fixed by paragraph four
of subdivision (a) of section fifteen hundred two of this article or  by
section  fifteen hundred two-a of this article, whichever is applicable.
However, if the amount of credit or carryovers of such credit, or  both,
allowed  under  this subdivision for any taxable year reduces the tax to
such amount, 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 paragraph, 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 (i) in the case of
taxpayers subject to  tax  under  subdivision  (b)  of  section  fifteen
hundred  ten  of  this  article, the lesser of (I) the limitation on tax
computed pursuant to subdivision (a) of section fifteen hundred five, or
(II) the greater of the sum of the taxes imposed under sections  fifteen
hundred  one  and  fifteen  hundred  ten  or  the amount of tax computed
pursuant to subdivision (b) of section fifteen hundred five, or (ii) for
all other insurance corporations, the tax imposed under section  fifteen

hundred  two-a  of  this  article, computed without regard to any credit
provided for under this article.
(2-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.
(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  subdivision  is disposed of, the
taxpayer's entire net 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  subdivision,  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 subdivision 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.
(i) Credit for certain other taxes payable to other jurisdictions. (1)
If,  by the laws of any state other than this state, or by the action of
any public official  of  such  other  state,  an  insurer  organized  or
domiciled in this state, or the duly authorized agents thereof, shall be

required  to pay taxes for the privilege of doing business in such other
state, which taxes are imposed or assessed because  of  amounts  imposed
upon  and required to be paid by insurers organized or domiciled in such
other  state  pursuant  to  section  twenty-eight hundred seven-t of the
public health law, then and in every case, to the extent such taxes  are
legally  due to such other state, such insurer organized or domiciled in
this state may claim a credit, as hereinafter provided, against the  tax
payable  pursuant to this article of a sum not to exceed ninety per cent
of such amount. Provided, such credit shall in no event be greater  than
the  tax  payable  pursuant to this article during the taxable year with
respect to which such taxes have been imposed or assessed by such  other
state.  For  purposes of this section, the term "taxes for the privilege
of doing business" shall include, but shall not be limited to, a tax  on
or measured by income.
(2)  A  credit  may  be claimed for the amount computed as provided in
paragraph one of this subdivision, on the return  required  pursuant  to
section  fifteen  hundred  fifteen,  against the tax imposed pursuant to
this article for the taxable year in which such amount shall be paid. To
the extent such credit shall  exceed  the  amount  payable  pursuant  to
section  fifteen  hundred sixteen for the taxable year against which the
credit is allowed, the difference between the amount allowed as a credit
and the tax payable pursuant to section fifteen hundred sixteen shall be
credited or refunded by the commissioner, without interest.
(3) The credit allowed  pursuant  to  this  subdivision  shall  be  in
addition  to  the  credits allowed pursuant to subdivisions (a), (b) and
(c) of this section.
(4) The superintendent of  financial  services  and  the  commissioner
shall  examine  claims for credit or refund made under this subdivision.
If the superintendent of financial services or  the  commissioner  shall
determine  that  any  tax for which a credit shall have been claimed was
not legally due to another state or that an error exists in  the  amount
of  credit  shown on such return or in the amount claimed as a refund or
refunded, the commissioner shall  take  appropriate  action  under  this
chapter  for the assessment and collection of any tax resulting from the
disallowance of a claim for credit made under  this  subdivision  or  to
disallow any such claim for refund.
(5)  Any taxpayer which commences an action or proceeding in any state
or federal court to contest the validity of any assessment made  against
the  taxpayer  by another state pursuant to a statute similar to section
one thousand one hundred twelve  of  the  insurance  law  or  any  other
statute  or regulation of another state under which retaliatory taxes or
other charges are imposed or assessed against such taxpayer  shall  give
the  commissioner  and  the superintendent of financial services written
notice of the commencement of such action or proceeding within five days
after such commencement.
(6) The commissioner shall report annually, on or before the first day
of March, on the amount of credits claimed pursuant to this  subdivision
on  returns  filed during the preceding calendar year. Such report shall
be provided to the director of the budget, the  commissioner  of  health
and the superintendent of financial services.
(7)  In addition to any other requirements of this article, an insurer
claiming a credit under this subdivision shall  attach  to  the  returns
required  pursuant  to  section  fifteen  hundred  fifteen a computation
identifying the credit  attributable  to  taxes  paid  to  other  states
because  of  the  amounts  imposed  and  required to be paid pursuant to
section twenty-eight hundred seven-t of the  public  health  law,  which
credit shall be further broken down to reflect amounts and taxable years
to which the retaliatory taxes giving rise to the credit relate.
(j)  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 vocational 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
subdivision, 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 subdivision 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 subdivision 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. The credit and carryovers of such credit allowed under
this subdivision for any taxable  year  shall  not,  in  the  aggregate,
reduce  the  tax due for such year to less than the minimum tax fixed by
paragraph four of subdivision (a) of section fifteen hundred two of this
article or by section fifteen hundred two-a of this  article,  whichever
is  applicable.  However,  if the amount of credit or carryovers of such
credit, or both, allowed under this subdivision  for  any  taxable  year
reduces  the tax to such amount, then 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
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
subdivision to the extent that such sections  are  consistent  with  the
specific provisions of this subdivision, provided that in the event of a
conflict the provisions of this subdivision shall control.
(k) Credit for certain investments in certified capital companies. (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  equal  to  one  hundred  percent  of an investment of
certified capital in a certified capital company  program  made  by  the
taxpayer pursuant to section eleven of this chapter.
(2) Ten percent of such credit shall be allowed in the taxable year to
which  such  investment  is  allocated  pursuant  to  subdivision (h) of
section eleven of this chapter and in each of the nine following taxable
years. In addition, in any taxable year subsequent to the  taxable  year
for  which  such  investment is so allocated, any amount carried forward
under paragraphs three and four  of  this  subdivision  may  be  carried
forward indefinitely until such credits are utilized.
(3)  No credit allowable pursuant to this subdivision shall reduce the
tax payable under this article to less than the  minimum  tax  fixed  by
paragraph four of subdivision (a) of section fifteen hundred two of this
article  or  by section fifteen hundred two-a of this article, whichever
is applicable. If, however, the amount of credit  allowable  under  this
subdivision  for  any  taxable  year reduces the tax to such amount, any
amount of credit not taken 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.
(4) If for any taxable year the credit allowable under  paragraph  two
of this subdivision exceeds such minimum tax for such taxable year, then
the amount by which such credit exceeds such minimum tax liability shall
be  carried  forward as a credit under paragraph two of this subdivision
to the following year or years and may be deducted from  the  taxpayer's
tax for such year or years.
(5)  Decertification  of  a certified capital company from a certified
capital company program shall cause the disallowance and  the  recapture
of  the  credit  allowed  under  paragraph  one  of this subdivision, as
follows:
(A) Decertification of a certified capital company  from  a  certified
capital  company  program within two years of its starting date prior to
meeting the  requirements  of  subparagraph  (A)  of  paragraph  one  of
subdivision   (c)   of  section  eleven  of  this  chapter  shall  cause
disallowance  of  one  hundred  percent  of  the  credit  allowed  under
paragraph one of this subdivision with respect to such certified capital
company program and the recapture of any portion of such credit that was
previously taken.
(B)  Decertification  of  a certified capital company from a certified
capital  company  program  which,  having  met   all   requirements   of
subparagraph  (A)  of paragraph one of subdivision (c) of section eleven
of this  chapter,  subsequently  fails  to  meet  the  requirements  for
continued certification under the provisions of subparagraph (B) of such
paragraph  one,  shall  cause the disallowance of eighty-five percent of
the credit allowed under paragraph one of this subdivision with  respect
to  such  certified capital company program and recapture of any portion
of such credit in excess of fifteen percent that was previously taken.
(C) Decertification of a certified capital company  from  a  certified
capital   company   program   which,  having  met  all  requirements  of
subparagraphs (A) and (B) of paragraph one of subdivision (c) of section
eleven of this chapter, subsequently fails to meet the requirements  for
continued certification under the provisions of subparagraph (C) of such
paragraph  one,  shall  cause the disallowance of seventy percent of the
credit allowed under paragraph one of this subdivision with  respect  to
such  certified capital company program and the recapture of any portion
of such credit in excess of thirty percent that was previously taken.
(D) Decertification of a certified capital company  from  a  certified
capital  company program pursuant to paragraph two of subdivision (e) of

section eleven of this chapter, other than on the grounds of the failure
of  such  certified  capital  company  to  meet  the   requirements   of
subparagraphs  (A),  (B)  or  (C) of paragraph one of subdivision (c) of
such  section,  shall  not  cause the disallowance of any of the credits
allowed under paragraph one of this subdivision  with  respect  to  such
certified  capital  company program, nor the recapture of any portion of
such credits that was previously taken.
(E) If, after twelve years after a certified capital company  receives
an  investment  of  certified  capital  under  certified capital company
program four and any subsequent program, such certified capital  company
has  failed  to  invest  one  hundred  percent  of its certified capital
allocable  to  such  certified  capital  company  program  in  qualified
investments,  such certified capital company shall be required to pay to
the department, for deposit in the general fund, an amount equal to  two
times  the  amount  of  net profits on qualified investments as required
under paragraph five of  subdivision  (d)  of  section  eleven  of  this
chapter  at  such subsequent time when it has fully invested one hundred
percent and has begun  to  make  a  distribution  of  its  net  profits;
provided  that  such  requirement shall not apply to a certified capital
company in which at least fifty percent of the  voting  stock,  capital,
membership  interests,  or  other beneficial ownership interests, as the
case may be, are owned  by  an  entity  that  is  managed,  directly  or
indirectly,  by  a non-profit corporation. This amount of payment to the
department shall not be reduced by the amount set forth in paragraph six
of subdivision (d) of section eleven of this chapter,  and  a  certified
capital  company  making  a  payment  under  this paragraph shall not be
eligible to create a fund pursuant to such paragraph six of  subdivision
(d)  of  section  eleven  of  this chapter for that particular certified
capital company program.
(6) Revocation of  certification  from  a  certified  capital  company
program  pursuant  to subdivision (f) of section eleven of this chapter,
before the later of (i) the third anniversary of the certification  date
of the certified capital company or (ii) the date on which the certified
capital  company  satisfies  the  requirements  of  subparagraph  (C) of
paragraph one of subdivision (c) of  section  eleven  of  this  chapter,
shall  cause  disallowance  of one hundred percent of the credit allowed
under paragraph one of this subdivision with respect to  such  certified
capital  company program and the recapture of any portion of such credit
that was previously taken.
(7) No credit shall be allowed in any tax year in which  the  taxpayer
shall,  individually  or  with  or  through one or more affiliates, be a
managing general partner of or underwrite or control  the  direction  of
investments  of  a  certified  capital  company for which the credit was
allowed under paragraph one of this subdivision.  This  provision  shall
not  preclude a certified investor, insurance company or any other party
from exercising its legal rights and remedies (which may include interim
management of a certified capital company) in the event that a certified
capital company is in  default  of  its  statutory  obligations  or  its
contractual obligations to such certified investor, insurance company or
other  party  or from monitoring the certified capital company to ensure
its compliance with section eleven of this chapter  or  disallowing  any
investments  that  have not been approved by the superintendent pursuant
to subparagraph (D) of paragraph one of subdivision (c) of such  section
eleven.  For purposes of this paragraph, affiliate shall mean a business
entity in which the taxpayer holds at least  a  ten  percent  beneficial
interest.
(8)  A  certified  investor  allowed  a  credit  against its state tax
liability earned through an investment in a  certified  capital  company

shall  not  be  required  to  pay  any additional retaliatory tax levied
pursuant to section eleven hundred twelve of  the  insurance  law  as  a
result of claiming such credit.
(9)  A  taxpayer  is permitted to transfer or sell tax credits allowed
under this subdivision, in whole or in part, to any affiliate within  an
affiliated  group  of  taxpayers,  who  are subject to tax in this state
under this article. Such transfer or sale  shall  not  affect  the  time
schedule  for  claiming  the  credit  transferred  or  sold.  Any credit
recaptured shall be the liability of the taxpayer who  actually  claimed
the  credit.  The  claim  of a transferee shall be permitted in the same
manner and subject to the same provisions  and  limitations  of  section
eleven of this chapter as applied to the taxpayer to whom the credit was
originally allowed. For purposes of this paragraph, the term "affiliated
group"  shall  have  the  same  meaning  as described in section fifteen
hundred four of the internal  revenue  code,  without  exclusion  for  a
company  listed under paragraph two of subsection (b) of section fifteen
hundred four of the internal revenue code, except that the references to
"at least eighty percent" in such section fifteen hundred four shall  be
read  as  "more  than  fifty  percent". Whenever a taxpayer transfers or
sells a tax credit pursuant  to  this  paragraph,  such  taxpayer  shall
notify  the  department and the department of financial services of such
transfer or sale within forty-five days.
(l) 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  the  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. The credit allowed
under this subdivision for any taxable year shall not reduce the tax due
for such year to less than the minimum tax fixed by  paragraph  four  of
subdivision  (a)  of  section  fifteen hundred two of this article or by
section fifteen hundred two-a of this article, whichever is applicable.
(m) (1) A taxpayer shall be allowed a credit against the  tax  imposed
by  this  article equal to twenty percent of the premium paid during the
taxable year for long-term care insurance. 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.
(2) In no event shall the credit herein provided for be allowed in  an
amount  which  will  reduce the tax payable to less than the minimum tax
fixed by paragraph four of subdivision (a) of  section  fifteen  hundred
two of this article or by section fifteen hundred two-a of this article,
whichever  is  applicable.  If,  however, the amount of credit allowable
under this subdivision for any taxable year  reduces  the  tax  to  such
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.
(n) 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. The credit and carryovers of such credit
allowed under this subdivision for any taxable year shall  not,  in  the
aggregate, reduce the tax due for such year to less than the minimum tax
fixed  by  paragraph  four of subdivision (a) of section fifteen hundred

two of this article or by section fifteen hundred two-a of this article,
whichever is applicable. However, if the amount of credit or  carryovers
of  such credit, or both, allowed under this subdivision for any taxable
year  reduces  the  tax  to  such  amount,  then 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 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.
(o)  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 taxes imposed by this article.
(2)  Carryover. The credit and carryovers of such credit allowed under
this subdivision for any taxable  year  shall  not,  in  the  aggregate,
reduce  the  tax due for such year to less than the minimum tax fixed by
paragraph four of subdivision (a) of section fifteen hundred two of this
article or by section fifteen hundred two-a of this  article,  whichever
is  applicable.  However,  if the amount of credit or carryovers of such
credit, or both, allowed under this subdivision  for  any  taxable  year
reduces  the tax to such amount, then 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
taxpayer's tax for such year or years.
(p) 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 taxes imposed by
this article.
(2)  Application  of credit. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for such year to  less
than  the  minimum  tax  fixed  by  paragraph four of subdivision (a) of
section fifteen hundred two  of  this  article  or  by  section  fifteen
hundred  two-a of this article, whichever is applicable. However, if the
amount of credit allowed under this subdivision  for  any  taxable  year
reduces  the  tax  to  such  amount,  then any amount of credit thus not
deductible in such taxable year shall be treated as  an  overpayment  of
tax  to  be  credited  or  refunded in accordance with the provisions of
section ten hundred eighty-six of this chapter. Provided,  however,  the
provisions of subsection (c) of section ten hundred eighty-eight of this
chapter notwithstanding, no interest shall be paid thereon.
(3)  Credit  recapture.  For provisions requiring recapture of credit,
see subdivision (c) of section twenty of this chapter.
(q) 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. Provided, however, a taxpayer shall not be allowed such
credit provided by this subdivision unless (A) 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 (B)  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 (C) 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 subparagraph
(C) of this paragraph 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. The amount of the credit shall be
the percent provided for herein below 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 subdivision, 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  subdivision  acquired,  constructed,
reconstructed  or  erected during the year of the decrease in the amount
of nonqualified nonrecourse financing. In the case of a combined return,
the term investment credit base shall mean the  sum  of  the  investment
credit  base of each corporation included on such return. The percentage
to be used to compute the credit allowed pursuant  to  this  subdivision
shall  be  five  percent  with  respect to the first three hundred fifty
million dollars of the investment credit base,  and  four  percent  with
respect  to  the investment credit base in excess of three hundred fifty
million dollars.
(2) A credit shall be allowed under this subdivision 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 (A) 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  (B)
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  subparagraphs  (A)  and  (B)  of  this
paragraph,  property purchased by a taxpayer affiliated with a regulated
broker, dealer or registered investment  adviser  is  allowed  a  credit
under  this  subdivision  if  the  property  is  used  by its affiliated
regulated broker, dealer or registered investment adviser in  accordance
with  this  subdivision.  For purposes of determining if the property is
principally used in qualifying uses, the uses by the taxpayer  described
in  subparagraphs  (A)  and  (B) of this paragraph may be aggregated. In
addition, the uses by the taxpayer,  its  affiliated  regulated  broker,
dealer  and  registered  investment adviser under either or both of such
subparagraphs may be aggregated.
(3) A taxpayer shall not be allowed a credit  under  this  subdivision
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  broker,  dealer,  or registered investment
adviser that uses such property in accordance with subparagraph  (A)  or
(B)  of paragraph two of this subdivision. 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.
(4) Except as otherwise provided in this paragraph, the credit allowed
under this subdivision for any taxable year shall not reduce the tax due
for such year to less  than  the  amount  fixed  as  a  minimum  tax  by
paragraph four of subdivision (a) of section fifteen hundred two of this
article  or  by section fifteen hundred two-a of this article, whichever
is applicable. However, if the amount of  credit  allowable  under  this
subdivision  for  any  taxable  year reduces the tax to such amount, any
amount of credit allowed for a taxable year may be carried over  to  the
fifteen  taxable  years  next  following  such  taxable  year and may be
deducted from the taxpayer's tax for such year or years. In lieu of such
carryover, any such taxpayer which qualifies as  a  new  business  under
paragraph  seven  of  this  subdivision may elect to treat the amount of
such carryover 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.
(5) At the option of the taxpayer an eligible  business  facility  for
which  a  credit is allowed under subdivision (d) of this section may be
treated as property (A) 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 (B) 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 provided the property otherwise
qualifies under paragraph two of this  subdivision,  in  which  event  a
credit shall not be allowed under subdivision (d) of this section.
(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  subdivision  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 subdivision 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 subdivision 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 a 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 subdivision 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) 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 (e) of section one thousand
ninety-six of this chapter, in effect on the last  day  of  the  taxable
year.
(F)  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  subdivision  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.
(7) For purposes of paragraph four of this subdivision, a new business
shall include any corporation, except a corporation which:
(A)  over fifty percent of the number of shares of stock entitling the
holders thereof to vote for the election of  directors  or  trustees  is
owned  or  controlled,  either  directly  or  indirectly,  by a taxpayer
subject to tax under this article; section one hundred eighty-three, one
hundred eighty-four, former section one hundred  eighty-five  or  former
section  one  hundred  eighty-six  of  article  nine;  article nine-A or
article thirty-two of this chapter; or
(B) is substantially similar  in  operation  and  in  ownership  to  a
business entity (or entities) taxable, or previously taxable, under this
article;  section one hundred eighty-three, one hundred eighty-four, one
hundred eight-five or one hundred eighty-six of  article  nine;  article
nine-A  or  article  thirty-two 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 of January first, nineteen
hundred eighty)  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  four  of  this  subdivision
with respect to refunding of credit to new business would be evaded; or
(C)  has  been  subject  to  tax under this article for more than five
taxable years (excluding short taxable years).
(8)(A)(i)  If  a  taxpayer  is  required  by  paragraph  six  of  this
subdivision  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
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  subdivision, as required by paragraph six of this subdivision, 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  (E)  of  paragraph  six  of  this
subdivision by using an interest rate equal to two  times  the  rate  of
interest  specified  in such subparagraph (E) 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 taxpayer's  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
subdivision, as required by paragraph six of this subdivision,  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 subdivision), 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.
(r)  QEZE  credit  for real property taxes. (1) Allowance of credit. A
taxpayer which is a qualified empire zone enterprise 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. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for such year to  less
than  the  minimum  tax  fixed  by  paragraph four of subdivision (a) of
section fifteen hundred two  of  this  article  or  by  section  fifteen
hundred  two-a of this article, whichever is applicable. However, if the
amount of credit allowed under this subdivision  for  any  taxable  year
reduces  the  tax  to  such  amount,  then any amount of credit thus not
deductible in such taxable year shall be treated as  an  overpayment  of
tax  to  be  credited  or  refunded in accordance with the provisions of
section ten hundred eighty-six of this chapter. Provided,  however,  the
provisions of subsection (c) of section ten hundred eighty-eight of this
chapter notwithstanding, no interest shall be paid thereon.
(s)  QEZE  tax  reduction  credit. (1) Allowance of credit. A taxpayer
which is a qualified empire zone enterprise shall be allowed a QEZE  tax
reduction  credit, to be computed as provided in section sixteen of this
chapter, against the tax imposed by this article.
(2) Application of credit. The credit allowed under  this  subdivision
for  any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by  paragraph  four  of  subdivision  (a)  of
section  fifteen  hundred  two  of  this  article  or by section fifteen
hundred two-a of this article, whichever is applicable.
(t) Order of credits. Notwithstanding the succeeding sentences of this
subdivision, the credits provided for in subdivisions  (g)  and  (h)  of
this  section shall be deducted before any other credits allowable under
this article, and the credit provided for in such subdivision (g)  shall
be deducted after the credit provided for in such subdivision (h). After
application  of  the  first  sentence  of  this subdivision, the 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. Credits under subdivisions (g) and
(h) of this section may not be  deducted  from  the  limitation  on  tax

computed  pursuant to subdivision (a) of section fifteen hundred five of
this article.
(u)  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 taxes imposed by this
article.
(2) Application of credit. The credit allowed under  this  subdivision
for  any taxable year shall not reduce the tax due for such year to less
than the minimum fixed by paragraph four of subdivision (a)  of  section
fifteen  hundred  two of this article. However, if the amount of credits
allowed under this subdivision for any taxable year reduces the  tax  to
such  amount,  any  amount of credit thus not deductible in such taxable
year shall be treated as  an  overpayment  of  tax  to  be  credited  or
refunded  in  accordance  with  the  provisions  of  section ten hundred
eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
subsection  (c)  of  section  ten  hundred  eighty-eight of this chapter
notwithstanding, no interest shall be paid thereon.
(v) 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 subdivision, 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. The credit allowed under  this  subdivision
for  any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by  paragraph  four  of  subdivision  (a)  of
section  fifteen  hundred two of this article. However, if the amount of
credit allowed under this subdivision for any taxable year  reduces  the
tax  to  such  amount,  any amount of credit thus not deductible in such
taxable year shall be treated as an overpayment of tax to be credited or
refunded in accordance  with  the  provisions  of  section  ten  hundred
eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
subsection (c) of section  ten  hundred  eighty-eight  of  this  chapter
notwithstanding, no interest shall be paid thereon.
(w)  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 taxes
imposed by this article.
(2) Application of credit. The credit allowed under  this  subdivision
for  any taxable year shall not reduce the tax due for such year to less
than the minimum fixed by paragraph four of subdivision (a)  of  section
fifteen  hundred  two  or section fifteen hundred two-a of this article.
However, if the amount of credits allowed under this subdivision for any
taxable year reduces the tax to such amount, any amount of  credit  thus
not  deductible  in such taxable 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.
* (x)  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. The credit allowed under  this  subdivision
for  any taxable year shall not reduce the tax due for such year to less
than the minimum fixed by paragraph four of subdivision (a)  of  section

fifteen  hundred  two  or section fifteen hundred two-a of this article.
However, if the amount of credits allowed under this subdivision for any
taxable year reduces the tax to such amount, any amount of  credit  thus
not  deductible  in such taxable 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 2 sb (x)'s
* (x) Credit for fuel cell electric generating equipment expenditures.
(1)  Allowance  of  credit.  For  taxable years beginning before January
first, two thousand nine, a taxpayer shall be allowed a  credit  against
the  tax  imposed  by  this  article,  equal  to its 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 in this subdivision 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 units
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.
(D) 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 qualified
expenditures.
(3) Application of credit. The credit allowed under  this  subdivision
for  any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by  paragraph  four  of  subdivision  (a)  of
section  fifteen  hundred  two  of  this  article  or by section fifteen
hundred two-a of this article, whichever is applicable. However, if  the
amount  of  credit  allowed  under this subdivision for any taxable year
reduces the tax to such amount, any amount of credit thus 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.
* NB There are 2 sb (x)'s
* (y)  Excelsior  jobs  program tax credit. (1) Allowance of credit. A
taxpayer will be allowed a credit, to be computed as provided in section
thirty-one of this chapter, against the taxes imposed by this article.
(2) Application of credit. The credit allowed under  this  subdivision
for  any  taxable year will not reduce the tax due for such year to less
than the minimum tax fixed by this article. However, if  the  amount  of
credit  allowed  under this subdivision for any taxable year reduces the
tax to such amount, any amount of credit thus  not  deductible  in  such
taxable  year will 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 will be paid thereon.
* NB There are 3 sb§ (y)'s
* (y) 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) Application of credit. The credit allowed under  this  subdivision
for  any taxable year shall not reduce the tax due for that year to less
than the minimum tax fixed by  paragraph  four  of  subdivision  (a)  of
section  fifteen  hundred  two  of  this  article  or by section fifteen
hundred two-a of this article, whichever is applicable. However, if  the
amount  of  credit  allowed  under this subdivision for any taxable year
reduces the tax to such amount, any amount of credit thus 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.
* NB There are 3 sb§ (y)'s
* (y)  Credit  for  rehabilitation of historic properties. (1) (A) For
taxable years beginning on or after January first, two thousand ten  and
before January first, two thousand thirty, a taxpayer shall be allowed a
credit as hereinafter provided, against the tax imposed by this article,
in  an  amount  equal  to  one  hundred  percent of the amount of credit
allowed the taxpayer with respect to a certified historic structure, and
one hundred fifty percent of the amount of credit allowed  the  taxpayer
with  respect to a certified historic structure that is a small project,
under internal revenue code section 47(c)(3), determined without  regard
to  ratably allocating the credit over a five year period as required by
subsection (a) of such section 47, with respect to a certified  historic
structure  located within the state. Provided, however, the credit shall
not exceed five million dollars. For taxable years beginning on or after
January first, two thousand thirty, a taxpayer 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, then the 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
of such partnership 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  subdivision  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  subdivision  in  the  taxable  year the credit was
claimed must be added back in the same taxable  year  and  in  the  same
proportion as the federal recapture.
(4)  The  credit  allowed  under this subdivision for any taxable year
shall not reduce the tax due for such year  to  less  than  the  minimum
fixed  by  paragraph  four of subdivision (a) of section fifteen hundred
two or section fifteen hundred  two-a  of  this  article,  whichever  is
applicable.  However,  if  the  amount  of  credits  allowed  under this
subdivision for any taxable year reduces the tax  to  such  amount,  any
amount  of  credit  thus  not  deductible  in such taxable 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.
(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 subdivision, 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  subdivision for an additional two
calendar years.
(6) For purposes of this subdivision "small project"  means  qualified
rehabilitation  expenditures  totaling two million five hundred thousand
dollars or less.
* NB There are 3 sb§ (y)'s
(z) 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. In no event shall  the  credit  under  this
section  be  allowed in an amount which will reduce the tax to less than
the minimum tax fixed by paragraph four of subdivision  (a)  of  section
fifteen  hundred two of this article or by section fifteen hundred two-a
of this article, whichever is applicable. If,  however,  the  amount  of
credit  allowed  under this section for any taxable year reduces the tax
to such amount, any amount of credit not deductible in such taxable year
shall be treated as an overpayment of tax to be refunded  in  accordance
with  the provisions of section one thousand eighty-six of this chapter,
provided however, that no interest shall be paid thereon.
* (aa) Economic transformation and facility redevelopment program  tax
credit. (1) Allowance of credit. A taxpayer will be allowed a credit, to
be  computed as provided in section thirty-five of this chapter, against
the taxes imposed by this article.
(2) Application of credit. The credit allowed under  this  subdivision
for  any  taxable year will not reduce the tax due for such year to less
than the minimum tax fixed by this article. However, if  the  amount  of
credit  allowed  under this subdivision for any taxable year reduces the
tax to such amount, any amount of credit thus  not  deductible  in  such
taxable  year will 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 will be paid thereon.
* NB Repealed December 31, 2026
(bb)  Empire  state  jobs  retention  program 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 taxes imposed by this
article.
(2) Application of credit. The credit allowed under  this  subdivision
for  any  taxable year will not reduce the tax due for such year to less
than the minimum tax fixed by this article. However, if  the  amount  of
credit  allowed  under this subdivision for any taxable year reduces the
tax to such amount, any amount of credit thus  not  deductible  in  such
taxable  year will 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 will be paid thereon.
(cc)  Minimum  wage  reimbursement  credit. (1) Allowance of credit. A
taxpayer shall be allowed a credit, to be  computed  as  provided  under
section  thirty-eight  of  this chapter, against the tax imposed by this
article.
(2) Application of credit. The credit allowed under  this  subdivision
for  any taxable year shall not reduce the tax due for such year to less
than the minimum tax fixed by  paragraph  four  of  subdivision  (a)  of
section  fifteen  hundred  two  of  this  article  or by section fifteen
hundred two-a of this article, whichever is applicable. However, if  the
amount  of  credit  allowed  under this subdivision for any taxable year
reduces the tax to such amount, then  any  amount  of  credit  thus  not
deductible  in  such  taxable 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.
* (dd) 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. The credit allowed under this subdivision
shall not reduce the tax due for such year to be less than  the  minimum
fixed  by  paragraph  four of subdivision (a) of section fifteen hundred
two or section fifteen hundred  two-a  of  this  article,  whichever  is
applicable.  However,  if  the  amount  of the credit allowed under this
subdivision for any taxable year reduces  the  taxpayer's  tax  to  such
amount,  any  amount of credit thus not deductible will 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 one thousand eighty-eight
of this chapter notwithstanding, no interest shall be paid thereon.
(3) Credit recapture. For provisions requiring  recapture  of  credit,
see section forty-four of this chapter.
* NB There are 2 sb (dd)'s
* (dd)  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 or member of a limited liability company 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 or limited liability company.
(2)  Application  of credit. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for such year to  less
than  the  minimum  tax  fixed  by  paragraph four of subdivision (a) of
section fifteen hundred two  of  this  article  or  by  section  fifteen
hundred  two-a of this article, whichever is applicable. However, if the
amount of credit allowed under this subdivision  for  any  taxable  year
reduces  the  tax  to  such  amount,  then any amount of credit thus not
deductible in such taxable 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.
(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 2 sb (dd)'s
(ee) Child care creation and expansion tax credit.  (1)  Allowance  of
credit. A taxpayer shall be allowed a credit, to be computed as provided
in  section forty-eight of this chapter, against the tax imposed by this
article.
(2) Application of credit. The credit allowed under  this  subdivision
shall  not  reduce the tax due for such year to be less than the minimum
fixed by paragraph four of subdivision (a) of  section  fifteen  hundred
two  or  section  fifteen  hundred  two-a  of this article, whichever is
applicable. However, if the amount of  the  credit  allowed  under  this
subdivision  for  any  taxable  year  reduces the taxpayer's tax to such
amount, any amount of credit thus not deductible will 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 one  thousand  eighty-eight
of this chapter notwithstanding, no interest shall be paid thereon.