2023 New York Laws › TAX - Tax › Article 30 - City Personal Income Tax › 1310 - Credits Against Tax.

§ 1310. Credits against tax. (a) Credit to trust beneficiary receiving
accumulation  distribution. A beneficiary of a trust who is subject to a
city personal income tax imposed  pursuant  to  the  authority  of  this
article   and  whose  New  York  adjusted  gross  income  under  article
twenty-two of this chapter includes  all  or  part  of  an  accumulation
distribution by such trust, as defined in section six hundred sixty-five
of  the internal revenue code, shall be allowed a credit against the tax
otherwise due  under  such  city  personal  income  tax  for  all  or  a
proportionate  part of any tax paid by the trust under such tax or under
any prior local law of the city for any  preceding  taxable  year  which
would  not have been payable if the trust had in fact made distributions
to its beneficiaries at the  times  and  in  the  amounts  specified  in
section  six  hundred sixty-six of the internal revenue code. The credit
under this subsection shall not reduce the tax otherwise  due  from  the
beneficiary  under  such city personal income tax to an amount less than
would have been due if the accumulation distribution or his part thereof
were excluded from his New York adjusted  gross  income  as  defined  in
section six hundred twelve of this chapter.
(b)  Credit  for  tax withheld. Wages upon which tax is required to be
withheld shall be taxable under a city personal  income  tax  as  if  no
withholding  were  required, but any amount of tax actually deducted and
withheld under such tax in any calendar year shall  be  deemed  to  have
been  paid to the state tax commission on behalf of the person from whom
withheld, and such person shall be credited with having paid that amount
of tax for the taxable year beginning  in  such  calendar  year.  For  a
taxable  year of less than twelve months, the credit shall be made under
regulations of the state tax commission.
(c) Credit relating to net capital gain. For taxable  years  beginning
in  nineteen  hundred  eighty-seven,  a credit against the city personal
income tax determined in accordance with section thirteen  hundred  four
shall  be  allowed.  The  amount  of the credit shall be one-half of one
percent of net capital gain includible in city adjusted gross income for
the taxable year. The credit allowed by this section  shall  not  exceed
the  tax  determined  in  accordance with section thirteen hundred four,
reduced by the credits permitted under subsections (a) and (d)  of  this
section.
(d)  Household  credit. (1) For taxable years beginning after nineteen
hundred eighty-six, a  credit  against  the  city  personal  income  tax
determined  in  accordance  with  section thirteen hundred four shall be
allowed. The credit, computed as described  in  paragraph  two  of  this
subsection,  shall  not  exceed  the  tax  determined in accordance with
section thirteen hundred four reduced  by  the  credit  permitted  under
subsection (a) of this section.
(2)  (A)  For  any  individual  who  is  not married nor the head of a
household nor a surviving spouse, the amount  of  the  credit  shall  be
determined in accordance with the following table:
 
If household gross                 The credit shall be:
income is:
For taxable years       For taxable years
beginning after 1986      beginning after
and before 1996              1995
 
Not over $7,500                   $15                      $15
Over $7,500 but not
 over $10,000                     $10                      $15
Over $10,000 but not
 over $12,500                     $ 0                      $10
(B)  For  any husband and wife, head of household or surviving spouse,
the amount of the credit shall be determined by multiplying  the  number
of  exemptions  for  which the taxpayer (or in the case of a husband and
wife, taxpayers) is entitled to a deduction for  the  taxable  year  for
federal income tax purposes under subsections (b) and (c) of section one
hundred  fifty-one of the internal revenue code by the credit factor for
the taxable year as specified in the following table:
 
If household gross                 The credit factor is:
income is:
For taxable years beginning in   For taxable years
1987   1988  1989 through 1995    beginning after
1995
Not over $12,500         $30    $50         $50                $30
Over $12,500 but not
over $15,000           $20    $40         $50                $30
Over $15,000 but not
over $17,500           $10    $20         $25                $25
Over $17,500 but not
over $20,000           $ 0    $15         $15                $15
Over $20,000 but not
over $22,500           $ 0    $ 0         $ 0                $10
(3) For purposes of this subsection:
(A) "Household gross income" shall mean the aggregate federal adjusted
gross income of a  household,  as  the  term  household  is  defined  in
subparagraph (B) of this paragraph, for the taxable year.
(B) "Household"  means  a  husband  and  wife,  a head of household, a
surviving spouse, or an individual who is not married nor the head of  a
household  nor  a surviving spouse nor a taxpayer with respect to whom a
deduction under subsection (c) of section one hundred fifty-one  of  the
internal  revenue  code is allowable to another taxpayer for the taxable
year.
(C) "Household gross income of  a  husband  and  wife"  shall  be  the
aggregate  of  their federal adjusted gross incomes for the taxable year
irrespective of whether joint or separate city income  tax  returns  are
filed. Provided, however, that a husband or wife who is required to file
a separate city income tax return shall be permitted one-half the credit
otherwise  allowed  his or her household, except as limited by paragraph
one of this subsection.
(D) "Household gross income" shall be computed in all cases as if each
member of the household were a resident for the entire taxable year.
(E) If a taxpayer changes his status  during  his  taxable  year  from
resident  to nonresident, or from nonresident to resident, the household
credit shall be prorated according to the number of months in the period
of residence. In the case of a husband  and  wife,  if  either  or  both
changes  his  or  her  status  from  resident  to  nonresident  or  from
nonresident to resident and  separate  returns  are  filed,  the  credit
computed  for  the  entire  year  shall  be divided first as provided in
subparagraph (C) of this paragraph and then prorated  according  to  the
number of months in the period of residence.
* (e)  State  school  tax  reduction  credit.
(1) For taxable years
beginning after nineteen hundred ninety-seven,  and  ending  before  two
thousand  sixteen,  a state school tax reduction credit shall be allowed
as provided in the following tables. The credit shall be allowed against
the taxes authorized by this article reduced by the credits permitted by
this article. If the credit exceeds the tax as so reduced, the  taxpayer
may  receive,  and  the  comptroller,  subject  to  a certificate of the

commissioner, shall pay as an overpayment, without interest, the  amount
of  such  excess.  For  purposes  of this subsection, no credit shall be
granted to  an  individual  with  respect  to  whom  a  deduction  under
subsection  (c) of section one hundred fifty-one of the internal revenue
code is allowable to another taxpayer for the taxable year.
(2) The amount of the credit under this paragraph shall be  determined
based  upon  the  taxpayer's  income  as defined in subparagraph (ii) of
paragraph (b) of subdivision four of section four hundred twenty-five of
the real property tax law. For  the  purposes  of  this  paragraph,  any
taxpayer  under  subparagraphs (A) and (B) of this paragraph with income
of more than two hundred fifty thousand  dollars  shall  not  receive  a
credit.
Beginning  in  the  two  thousand  ten  tax  year  and  each  tax year
thereafter through two thousand fifteen,  the  "more  than  two  hundred
fifty  thousand  dollar" income limitation shall be adjusted by applying
the inflation factor set forth herein, and rounding each result  to  the
nearest  multiple of one hundred dollars. The department shall establish
the income limitation to be associated with each subsequent tax year  by
applying  the  inflation  factor  set  forth  herein to the figures that
define the income limitation that were applicable to the  preceding  tax
year,  as  determined  pursuant  to  this  subsection, and rounding each
result  to  the  nearest  multiple  of   one   hundred   dollars.   Such
determination  shall be made no later than March first, two thousand ten
and each year thereafter.
(A) Married individuals filing joint returns and surviving spouses. In
the case of a husband and wife who make a single return jointly and of a
surviving spouse:
For taxable years beginning:       The credit shall be:
in 2001-2005                    $125
in 2006                         $230
in 2007-2008                    $290
in 2009 - 2015                  $125
(B) All others. In the case of an unmarried individual, a  head  of  a
household or a married individual filing a separate return:
For taxable years beginning:       The credit shall be:
in 2001-2005                    $62.50
in 2006                         $115
in 2007-2008                    $145
in 2009 - 2015                  $62.50
(4)  Husband  and  wife who make a joint return. If a husband and wife
make a single return jointly, the credit under this subsection shall  be
determined under paragraph two of this subsection, if either of them has
attained  the  age  of  sixty-five on or before the close of the taxable
year.
(5) Part-year residents. If  a  taxpayer  changes  status  during  the
taxable  year  from  resident  to  nonresident,  or  from nonresident to
resident, the state  school  tax  reduction  credit  shall  be  prorated
according to the number of months in the period of residence.
* NB There are 2 sub§ (e)'s
* (e) Credit for city of New York unincorporated business tax paid.
(1)  Notwithstanding  any  other provision of law to the contrary, any
city imposing  a  tax  under  this  article  is  hereby  authorized  and
empowered  to  adopt and amend local laws for any taxable year beginning
after nineteen hundred ninety-seven, as specified in  such  local  laws,
providing  for  a credit as provided in paragraph two of this subsection
against the taxes imposed pursuant to the authority granted  by  section
thirteen  hundred  one  of  this  article  on  the  city  taxable income
determined pursuant to sections thirteen hundred four, thirteen  hundred

four-A  and  thirteen hundred four-B of this article and on the ordinary
income portion of a lump sum distribution determined pursuant to section
thirteen hundred one-B of this article, to any city resident individual,
estate  or trust whose city adjusted gross income includes income, gain,
loss or deductions from one or more unincorporated businesses  conducted
by  such  city  resident  individual,  estate or trust on which a tax is
imposed by chapter five of title eleven of the  administrative  code  of
the  city of New York, or a distributive share of income, gain, loss and
deductions of, or guaranteed payments from, one or more partnerships  on
which  a tax is imposed by such chapter. Any such local laws may contain
provisions to ensure that such credit shall not reduce the tax paid by a
city resident below that which would be paid by such  city  resident  if
such city resident were a city nonresident.
(2)  (A)  Subject  to  the limitation set forth in subparagraph (B) of
this paragraph, the credit allowed to a  taxpayer  for  a  taxable  year
shall be equal to all or a portion of the amount determined in paragraph
three  of  this subsection, provided, however, such portion shall not be
less than:
(i) If the city taxable income is forty-two thousand dollars or  less,
sixty-five  percent  of the amount determined in paragraph three of this
subsection.
(ii) If the city taxable income is  greater  than  forty-two  thousand
dollars  but  not greater than one hundred forty-two thousand dollars, a
percentage  of  the  amount  determined  in  paragraph  three  of   this
subsection  to be determined by subtracting from sixty-five percent, one
tenth of a percentage point (.001) for every increment  of  two  hundred
dollars, or fractional part thereof, of city taxable income in excess of
forty-two thousand dollars.
(iii) If the city taxable income is greater than one hundred forty-two
thousand  dollars, fifteen percent of the amount determined in paragraph
three of this subsection.
(B) Notwithstanding anything to the contrary in  subparagraph  (A)  of
this  paragraph,  the  credit  allowed  to a taxpayer for a taxable year
under this subsection shall not exceed the sum of the taxes  that  would
otherwise  be imposed on such taxpayer for such taxable year pursuant to
the authority granted by section thirteen hundred one of this article on
the city taxable income determined pursuant to sections thirteen hundred
four, thirteen hundred  four-A  and  thirteen  hundred  four-B  of  this
article  and  on  the ordinary income portion of a lump sum distribution
determined pursuant to section thirteen hundred one-B of  this  article,
reduced  by the credits allowed to such taxpayer pursuant to subsections
(a), (c) and (d) of this section.
(3) Subject to the provisions of subparagraph (C) of  this  paragraph,
the amount determined in this paragraph is the sum of:
(A)  for  each  unincorporated business conducted by the taxpayer, the
tax imposed by chapter five of title eleven of the  administrative  code
of  the city of New York on such unincorporated business for its taxable
year ending with the taxable year  of  the  taxpayer  and  paid  by  the
unincorporated business; and
(B)  for  each  unincorporated  business  in  which  the taxpayer is a
partner, the product of:
(i) the sum of (I) the tax imposed by chapter five of title eleven  of
the  administrative  code of the city of New York on such unincorporated
business for its taxable year ending within or with the taxable year  of
the  partner and paid by the unincorporated business and (II) the amount
of any credit or credits taken  by  the  unincorporated  business  under
subdivision (j) of section 11-503 of the administrative code of the city

of  New York for its taxable year ending within or with the taxable year
of the partner; and
(ii)  a  fraction,  the  numerator  of  which  is the net total of the
partner's distributive share of income, gain, loss  and  deductions  of,
and  guaranteed  payments  from,  the  unincorporated  business for such
taxable year, and the denominator of which is the sum, for such  taxable
year,  of  the  net  total distributive shares of income, gain, loss and
deductions  of,  and  guaranteed  payments  to,  all  partners  in   the
unincorporated  business for whom or which such net total (as separately
determined for each partner) is greater than zero.
(C) For a taxpayer that changes its status from a city resident  to  a
city  nonresident  or  from a city nonresident to a city resident during
the taxable year:
(i) the amount determined in subparagraph (A) of this paragraph  shall
be,  with  respect  to  each  unincorporated  business  conducted by the
taxpayer, the tax imposed  by  chapter  five  of  title  eleven  of  the
administrative  code  of  the  city  of  New York on such unincorporated
business for its taxable year  ending  with  the  taxable  year  of  the
taxpayer  and  paid  by  the  unincorporated  business,  multiplied by a
fraction, the numerator of which is that portion of  the  income,  gain,
loss  and  deductions  of  the  unincorporated  business included in the
taxpayer's city adjusted gross income for the  portion  of  the  taxable
year  during which the taxpayer was a city resident, and the denominator
of which is the total, for such taxable year, of the income, gain,  loss
and deductions of the unincorporated business, and
(ii)  the amount determined in clause (ii) of subparagraph (B) of this
paragraph shall be a fraction, the numerator of which is that portion of
the taxpayer's net total distributive share of income,  gain,  loss  and
deductions  of,  and  that  portion  of  guaranteed  payments  from, the
unincorporated business included in the taxpayer's city  adjusted  gross
income for the portion of the taxable year during which the taxpayer was
a  city  resident,  and  the  denominator  of which is the sum, for such
taxable year, of the net total distributive shares of income, gain, loss
and deductions of, and guaranteed  payments  to,  all  partners  in  the
unincorporated business, for whom or which such net total (as separately
determined for each partner) is greater than zero.
(4)  No local law enacted pursuant to the authority of this subsection
shall be effective unless a certified copy of such local law  is  mailed
by  registered  mail  to the state department of taxation and finance at
its office in Albany at least fifteen days prior to the date  it  is  to
become  effective. However, the state department of taxation and finance
may waive and reduce such fifteen-day minimum notice  requirement  to  a
mailing  of such certified copy by registered mail within such period if
it deems such action  to  be  consistent  with  its  duties  under  this
article.
* NB There are 2 sub§ (e)'s
(f) Earned income tax credit.  (1) Notwithstanding any other provision
of  law  to the contrary, any city having a population of one million or
more, acting through its local legislative body,  is  hereby  authorized
and  empowered  to adopt and amend local laws granting in any such city,
for taxable years beginning after two thousand three, a  credit  against
the  city personal income tax equal to five percent of the earned income
credit allowed under section thirty-two of the internal revenue code for
the same taxable year,  and,  for  taxable  years  beginning  after  two
thousand twenty-one, a credit against the city personal income tax equal
to a percentage, determined pursuant to subparagraphs (A) through (I) of
this  paragraph,  of  the  earned  income  credit  allowed under section
thirty-two of the internal revenue code for the same taxable  year.  For

purposes  of  this  paragraph,  "adjusted  gross  income" means New York
adjusted gross income as determined pursuant to  article  twenty-two  of
this chapter. The percentage shall be:
(A)  thirty  percent,  where  the taxpayer's adjusted gross income for
such taxable year is less than $5,000;
(B)  thirty  percent  reduced  by  the  product  of  two-tenths  of  a
percentage point (0.002) and the amount of the taxpayer's adjusted gross
income  for such taxable year in excess of $4,999, where such taxpayer's
adjusted gross income for such taxable year is equal to or greater  than
$5,000 and less than $7,500;
(C)  twenty-five  percent,  where the taxpayer's adjusted gross income
for such taxable year is equal to or greater than $7,500 and  less  than
$15,000;
(D)  twenty-five  percent  reduced  by  the product of two-tenths of a
percentage point (0.002) and the amount of the taxpayer's adjusted gross
income for such taxable year in excess of $14,999, where such taxpayer's
adjusted gross income for such taxable year is equal to or greater  than
$15,000 and less than $17,500;
(E)  twenty  percent,  where  the taxpayer's adjusted gross income for
such taxable year is equal to or greater  than  $17,500  and  less  than
$20,000;
(F)  twenty  percent  reduced  by  the  product  of  two-tenths  of  a
percentage point (0.002) and the amount of the taxpayer's adjusted gross
income for such taxable year in excess of $19,999, where such taxpayer's
adjusted gross income for such taxable year is equal to or greater  than
$20,000 and less than $22,500;
(G)  fifteen  percent,  where the taxpayer's adjusted gross income for
such taxable year is equal to or greater  than  $22,500  and  less  than
$40,000;
(H)  fifteen  percent  reduced  by  the  product  of  two-tenths  of a
percentage point (0.002) and the amount of the taxpayer's adjusted gross
income for such taxable year in excess of $39,999, where such taxpayer's
adjusted gross income for such taxable year is equal to or greater  than
$40,000 and less than $42,500; and
(I)  ten  percent  where the taxpayer's adjusted gross income for such
taxable year is equal to or greater than $42,500.
(2) In the case of a resident taxpayer, the credit provided  by  local
law  adopted  pursuant  to  this subsection shall be allowed against the
taxes authorized by this article for the taxable  year  reduced  by  the
credits  permitted  by this article. If the credit exceeds the tax as so
reduced, the taxpayer may receive, and the  comptroller,  subject  to  a
certificate  of  the  commissioner, shall pay as an overpayment, without
interest, the amount of such excess.
(3) If a taxpayer changes his or her status during  the  taxable  year
from city resident to city nonresident, or from city nonresident to city
resident,  the  credit determined under this subsection shall be limited
to the amount determined by multiplying the amount of such credit  by  a
fraction,  the numerator of which is such taxpayer's city adjusted gross
income,  as  defined  in  chapter  seventeen  of  title  eleven  of  the
administrative  code  of  the  city  of  New  York,  for  the  period of
residence, and the denominator of which is such taxpayer's city adjusted
gross income determined as if he or she were a  city  resident  for  the
entire  taxable  year.  City  adjusted gross income shall be adjusted as
provided in section 11-1754 of the administrative code of  the  city  of
New  York.  The  credit  as  so  limited shall be applied as provided in
paragraph two of this subsection.
(4) Subject to the provisions of paragraph three of  this  subsection,
in  the  case of a husband and wife who file a joint return, but who are

required to determine their city personal income taxes  separately,  the
credit authorized pursuant to this subsection may be applied against the
tax  of either or divided between them as they may elect. In the case of
a  husband  and  wife who are not required to file a federal return, the
credit under this subsection shall be allowed  only  if  such  taxpayers
file a joint city personal income tax return.
(5)  A  local  law  enacted  pursuant  to  this  subsection  shall  be
applicable with respect to any taxable year only if it has been  enacted
on  or  before the date that is forty-five days after the effective date
of this subsection and for taxable years subsequent to taxable year  two
thousand  four,  on  or before July thirty-first of such taxable year. A
certified copy of such local law shall be mailed by registered  mail  to
the  state  department  of  taxation and finance at its office in Albany
within fifteen days of its enactment. However, the state  department  of
taxation  and  finance may allow additional time for such certified copy
to be mailed if it deems such action to be consistent  with  its  duties
under this article.
(6)  If  the  department  determines  that the taxpayer is eligible to
receive the credit provided under this subsection but  has  not  claimed
such credit on his or her return, the department shall compute and issue
any   refund  for  the  allowable  credit  amount  provided  under  this
subsection. Any refund paid pursuant to this paragraph shall  be  deemed
to  be  a  refund  of  an  overpayment of tax as provided in section six
hundred eighty-six of this chapter, provided, however, that no  interest
shall be paid thereon.
(g)  Credit  for city pass-through entity tax. (1) A taxpayer who is a
partner or member  of  an  electing  city  partnership  and  a  taxpayer
shareholder  of  an  electing city resident S corporation subject to tax
under article twenty-four-B of this  chapter  shall  be  entitled  to  a
credit against the tax imposed pursuant to the authority of this article
as  provided  in  this  subsection. For purposes of this subsection, the
terms  "electing  city   partnership,"   "electing   city   resident   S
corporation,"  "city pass-through entity tax," and "direct share of city
pass-through entity tax"  shall  have  the  same  meanings  provided  in
article twenty-four-B of this chapter.
(2) The amount of the credit shall be equal to the partner's, member's
or shareholder's direct share of the city pass-through entity tax.
(3) If a taxpayer is a partner, member or shareholder in more than one
electing  city  partnership  and/or electing city resident S corporation
that is subject  to  tax  pursuant  to  article  twenty-four-B  of  this
chapter, the amount of the credit of such taxpayer shall be equal to the
sum  of the amounts of such credits calculated pursuant to paragraph two
of this subsection with regard to each entity in which such taxpayer has
a direct ownership interest.
(4) If the amount of the credit allowable pursuant to this  subsection
for  any taxable year exceeds the tax due for such year pursuant to this
article, the excess amount shall be treated as  an  overpayment,  to  be
credited or refunded, without interest.
(5)  Limitation  on  credit.  No credit shall be allowed to a taxpayer
under this subsection unless the electing city partnership  or  electing
city  resident S corporation provided sufficient information to identify
such taxpayer on its city pass-through entity  tax  return  as  required
under   paragraph  two  of  subsection  (c)  of  section  eight  hundred
seventy-two  of  this  chapter  for  an  electing  city  partnership  or
paragraph  two of subsection (d) of section eight hundred seventy-two of
this chapter for an electing city resident  S  corporation.  The  credit
allowed  to a taxpayer under this subsection shall not exceed the direct
share of city pass-through entity tax reported  by  such  electing  city

partnership or electing city resident S corporation attributable to such
taxpayer  on  such electing city partnership or electing city resident S
corporation's return filed pursuant to section eight hundred seventy-two
of this chapter.