2023 New York Laws › TAX - Tax › Article 22 - Personal Income Tax › Part 1 - General › 606 - Credits Against Tax.

§  606.  Credits  against  tax. (a) Investment tax credit (ITC). (1) A
taxpayer shall be allowed  a  credit,  to  be  computed  as  hereinafter
provided,  against  the  tax  imposed by this article. The amount of the
credit shall be the per cent provided for hereinbelow of the  investment
credit  base. The investment credit base is the cost or other basis, for
federal income tax purposes, of tangible  personal  property  and  other
tangible  property,  including  buildings  and  structural components of
buildings, described in paragraph  two  of  this  subsection,  less  the
amount  of  the  nonqualified nonrecourse financing with respect to such
property to the extent such  financing  would  be  excludible  from  the
credit  base  pursuant  to section 46(c)(8) of the internal revenue code
(treating such property as section thirty-eight property irrespective of
whether or not it in fact constitutes  section  thirty-eight  property).
If,  at  the close of a taxable year following the taxable year in which
such property was placed in service, there is  a  net  decrease  in  the
amount  of  nonqualified  nonrecourse  financing  with  respect  to such
property, such net decrease shall be treated as if it were the  cost  or
other  basis  of  property described in paragraph two of this subsection
acquired, constructed, reconstructed or erected during the year  of  the
decrease  in  the  amount  of  nonqualified  nonrecourse  financing. The
percentage to be used to compute the credit  allowed  pursuant  to  this
subsection  shall  be  that  percentage appearing in column two which is
opposite the appropriate period in column  one  in  which  the  tangible
personal  property  was acquired, constructed, reconstructed or erected,
as the case may be:
 
Column 1                             Column 2
After December 31, 1968 and
prior to January 1, 1974             one per cent
After December 31, 1973 and
prior to January 1, 1978             two per cent
After December 31, 1977 and
prior to January 1, 1979             three per cent
After December 31, 1978 and
prior to June 1, 1981                four per cent
After May 31, 1981 and
prior to July 1, 1982                five per cent
After June 30, 1982 and
before January 1, 1987               six per cent
After December 31, 1986              four per cent, except that  in  the
case of  research  and  development
property  the applicable percentage
shall be seven
 
Provided, however, that in the case  of  an  acquisition,  construction,
reconstruction  or  erection  which  was commenced in any one period and
continued or completed in any subsequent period the credit shall be  the
sum  of  the portions of the investment credit base attributable to each
such period, which portion with respect to each  such  period  shall  be
ascertained by multiplying such investment credit base by a fraction the
numerator  of  which  shall  be the expenditures paid or incurred during
such period for such purposes and the denominator of which shall be  the
total  of  all  expenditures  paid  or  incurred  for  such acquisition,
construction, reconstruction or erection, multiplied  by  the  allowable
percentage for each such period.
(1-a)  For  a  taxpayer  that  is  an  eligible  farmer, as defined in
subsection (n) of this section, the percentage to be used to compute the
credit allowed  under  this  subsection  shall  be  twenty  percent  for

property  described  in  subparagraph  (A)  of  paragraph  two  of  this
subsection that is principally used by the taxpayer in the production of
goods   by   farming,   agriculture,   horticulture,   floriculture   or
viticulture.
(2)  (A)  A credit shall be allowed under this subsection with respect
to tangible personal property and  other  tangible  property,  including
buildings and structural components of buildings, which are: depreciable
pursuant  to  section  one  hundred  sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one  hundred  seventy-nine  (d)  of  the  internal
revenue code, have a situs in this state and are (i) principally used by
the  taxpayer  in  the production of goods by manufacturing, processing,
assembling,  refining,   mining,   extracting,   farming,   agriculture,
horticulture,  floriculture,  viticulture  or  commercial  fishing, (ii)
industrial  waste  treatment  facilities  or   air   pollution   control
facilities, used in the taxpayer's trade or business, (iii) research and
development  property,  (iv)  principally used in the ordinary course of
the taxpayer's trade or business as a broker  or  dealer  in  connection
with the purchase or sale (which shall include but not be limited to the
issuance, entering into, assumption, offset, assignment, termination, or
transfer)  of  stocks,  bonds  or other securities as defined in section
four hundred seventy-five (c)(2) of the Internal  Revenue  Code,  or  of
commodities  as  defined in section 475(e) of the Internal Revenue Code,
(v) principally used in the ordinary course of the taxpayer's  trade  or
business  of  providing  investment  advisory  services  for a regulated
investment company as defined in section eight hundred fifty-one of  the
Internal  Revenue Code, or lending, loan arrangement or loan origination
services to customers in connection with the  purchase  or  sale  (which
shall  include  but  not  be  limited  to  the  issuance, entering into,
assumption, offset, assignment, termination, or transfer) of  securities
as  defined  in section four hundred seventy-five (c)(2) of the Internal
Revenue Code, or (vi) principally used as a  qualified  film  production
facility  including  qualified film production facilities having a situs
in an empire zone designated as such pursuant to article  eighteen-B  of
the general municipal law, where the taxpayer is providing three or more
services  to  any  qualified film production company using the facility,
including such services as a studio lighting  grid,  lighting  and  grip
equipment,  multi-line  phone  service, broadband information technology
access, industrial scale electrical capacity,  food  services,  security
services, and heating, ventilation and air conditioning. For purposes of
clauses  (iv)  and  (v)  of  this  subparagraph, property purchased by a
taxpayer affiliated with  a  regulated  broker,  dealer,  or  registered
investment  adviser  is  allowed  a  credit under this subsection if the
property  is  used  by  its  affiliated  regulated  broker,  dealer   or
registered  investment  adviser  in accordance with this subsection. For
purposes  of  determining  if  the  property  is  principally  used   in
qualifying  uses, the uses by the taxpayer described in clauses (iv) and
(v) of this subparagraph may be aggregated. In addition, the uses by the
taxpayer,  its  affiliated  regulated  broker,  dealer  and   registered
investment  adviser  under  either  or  both  of  those  clauses  may be
aggregated. Provided, however, a  taxpayer  shall  not  be  allowed  the
credit  provided by clauses (iv) and (v) of this subparagraph unless (I)
eighty percent or more of the employees  performing  the  administrative
and  support  functions resulting from or related to the qualifying uses
of such equipment are located in this state, or (II) the average  number
of  employees  that  perform  the  administrative  and support functions
resulting from or related to the qualifying uses of such  equipment  and
are  located  in this state during the taxable year for which the credit

is claimed is equal to  or  greater  than  ninety-five  percent  of  the
average number of employees that perform these functions and are located
in  this  state  during  the thirty-six months immediately preceding the
year  for  which the credit is claimed, or (III) the number of employees
located in this state during the taxable year for which  the  credit  is
claimed  is  equal  to  or  greater than ninety percent of the number of
employees located in  this  state  on  December  thirty-first,  nineteen
hundred  ninety-eight  or,  if  the  taxpayer  was  not  a calendar year
taxpayer in nineteen hundred ninety-eight, the last  day  of  its  first
taxable  year  ending  after  December  thirty-first,  nineteen  hundred
ninety-eight. If the taxpayer becomes subject to tax in this state after
the taxable year beginning in nineteen hundred  ninety-eight,  then  the
taxpayer  is not required to satisfy the employment test provided in the
preceding sentence of this subparagraph for its first taxable year.  For
the  purposes  of  clause (III) of this subparagraph the employment test
will be based on the number of employees located in this  state  on  the
last  day  of  the  first taxable year the taxpayer is subject to tax in
this state. If the uses of the property must be aggregated to  determine
whether the property is principally used in qualifying uses, then either
each  affiliate  using the property must satisfy this employment test or
this employment test must be satisfied through the  aggregation  of  the
employees  of the taxpayer, its affiliated regulated broker, dealer, and
registered investment adviser using the property. For purposes of clause
(i) of this subparagraph, tangible personal property and other  tangible
property  shall not include property principally used by the taxpayer in
the  production  or  distribution  of  electricity,  natural  gas  after
extraction  from  wells,  steam,  or  water  delivered through pipes and
mains.
(B) For purposes of this paragraph, the  following  definitions  shall
apply:
(i) Manufacturing shall mean the process of working raw materials into
wares  suitable  for  use  or which gives new shapes, new quality or new
combinations to matter which already has gone  through  some  artificial
process  by  the  use  of machinery, tools, appliances and other similar
equipment. Property used  in  the  production  of  goods  shall  include
machinery,  equipment  or  other  tangible property which is principally
used in the repair and service of other machinery,  equipment  or  other
tangible  property used principally in the production of goods and shall
include all facilities  used  in  the  production  operation,  including
storage  of  material  to be used in production and of the products that
are produced.
(ii) Research and development property shall mean  property  which  is
used  for  purposes  of  research and development in the experimental or
laboratory sense. Such purposes shall  not  be  deemed  to  include  the
ordinary  testing  or  inspection  of  materials or products for quality
control,  efficiency  surveys,  management  studies,  consumer  surveys,
advertising,  promotions,  or  research  in  connection  with  literary,
historical or similar projects.
(iii)  Industrial  waste  treatment  facilities  shall  mean  property
constituting   facilities   for   the   treatment,   neutralization   or
stabilization of  industrial  waste  and  other  wastes  (as  the  terms
"industrial  waste" and "other wastes" are defined in section 17-0105 of
the environmental conservation law) from a point  immediately  preceding
the  point  of  such  treatment,  neutralization or stabilization to the
point of disposal, including  the  necessary  pumping  and  transmitting
facilities,  but  excluding  such  facilities  installed for the primary
purpose of salvaging materials which are  usable  in  the  manufacturing
process or are marketable.
(iv) Air pollution control facilities shall mean property constituting
facilities which remove, reduce, or render less noxious air contaminants
emitted from an air contamination source (as the terms "air contaminant"
and  "air  contamination  source"  are defined in section 19-0107 of the
environmental  conservation  law) from a point immediately preceding the
point of such removal, reduction or rendering to the point of  discharge
of  air,  meeting emission standards as established by the department of
environmental conservation, but excluding such facilities installed  for
the  primary  purpose  of  salvaging  materials  which are usable in the
manufacturing process or are marketable and excluding  those  facilities
which rely for their efficacy on dilution, dispersion or assimilation of
air  contaminants  in  the  ambient  air after emission. Such term shall
further include flue gas desulfurization equipment and attendant  sludge
disposal  facilities, fluidized bed boilers, precombustion coal cleaning
facilities or other facilities that conform  with  this  subsection  and
which  comply  with  the provisions of the State Acid Deposition Control
Act set forth in title nine of article  nineteen  of  the  environmental
conservation law.
(v)  For  purposes  of  this  paragraph,  the  terms  "qualified  film
production facility" and "qualified film production company" shall  have
the same meaning as in section twenty-four of this chapter.
(C)  However,  such credit shall be allowed with respect to industrial
waste treatment facilities and air pollution control facilities only  on
condition  that  such  facilities  have  been  certified  by  the  state
commissioner   of   environmental   conservation   or   his   designated
representative,  pursuant  to  subdivision  one  of  section  17-0707 or
subdivision one of section 19-0309  of  the  environmental  conservation
law,  as  complying  with  applicable  provisions  of  the environmental
conservation law, the public health law, the  state  sanitary  code  and
codes, rules, regulations, permits or orders issued pursuant thereto.
(3)  A  taxpayer  shall  not be allowed a credit under this subsection
with respect to any property described in clause (i) of subparagraph (B)
of paragraph two hereof if such property qualifies for the  modification
allowed under either paragraph three or paragraph four of subsection (g)
of section six hundred twelve whether or not such amount shall have been
subtracted.  Provided, however, with respect to property which qualifies
for a modification under either clause (A), (B) or (C) of paragraph four
of subsection (g)  because  such  property  was  ordered  on  or  before
December thirty-first, nineteen hundred sixty-eight, but with respect to
which  no  expenditure  has  been  paid  or  incurred  at such date, the
taxpayer may elect to subtract the amount allowable under  clauses  (A),
(B)  or  (C) or may take the credit provided by this subsection, but not
both.
(4) A taxpayer shall not be allowed a  credit  under  this  subsection
with  respect to tangible personal property and other tangible property,
including buildings and structural components  of  buildings,  which  it
leases to any other person or corporation except where a taxpayer leases
property  to  an  affiliated  regulated  broker,  dealer,  or registered
investment adviser that uses such property  in  accordance  with  clause
(iv) or (v) of subparagraph (A) of paragraph two of this subsection. For
purposes  of  the preceding sentence, any contract or agreement to lease
or rent or for a license to use such  property  shall  be  considered  a
lease.  Provided,  however,  in  determining whether a taxpayer shall be
allowed a credit under this subsection with respect  to  such  property,
any  election  made  with  respect  to  such  property  pursuant  to the
provisions of paragraph eight of subsection (f) of section  one  hundred
sixty-eight  of  the  internal  revenue  code,  as such paragraph was in
effect for agreements entered into  prior  to  January  first,  nineteen

hundred   eighty-four,  shall  be  disregarded.  For  purposes  of  this
paragraph, the  use  of  a  qualified  film  production  facility  by  a
qualified  film  production  company  shall not be considered a lease of
such facility to such company.
(5)  If  the  amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year,  the  excess
allowed  for  a taxable year commencing prior to January first, nineteen
hundred eighty-seven may be carried over to the following year or  years
and  may be deducted from the taxpayer's tax for such year or years, but
in no  event  shall  such  credit  be  carried  over  to  taxable  years
commencing on or after January first, nineteen hundred ninety-seven, and
any  amount  of credit allowed for a taxable year commencing on or after
January first, nineteen hundred eighty-seven and not deductible in  such
year  may  be  carried over to the ten taxable years next following such
taxable year and may be deducted from the taxpayer's tax for  such  year
or  years.  In lieu of carrying over any such excess, (A) a taxpayer who
qualifies as an owner of a new business for purposes of paragraph ten of
this subsection may, at the taxpayer's option, receive such excess as  a
refund,  and  (B)  a  taxpayer  that is an eligible farmer as defined in
subsection (n) of this  section  may,  at  the  taxpayer's  option,  for
taxable  years beginning before January first, two thousand twenty-eight
receive such excess as a  refund.  Any  refund  paid  pursuant  to  this
paragraph  shall  be  deemed  to be a refund of an overpayment of tax as
provided in section six hundred eighty-six of  this  article,  provided,
however, that no interest shall be paid thereon.
(6)  At  the option of the taxpayer for taxable years commencing prior
to January first, nineteen hundred eighty-seven, air or water  pollution
control  facilities  which  qualify  for  elective  modifications  under
subsection  (h)  of  section  six  hundred  twelve,  or   research   and
development  facilities  which  qualify for elective modifications under
paragraphs two and four of subsection (g) of section six hundred  twelve
may  be  treated  as  property  principally  used by the taxpayer in the
production of goods by manufacturing, processing, assembling,  refining,
mining,  extracting,  farming,  agriculture, horticulture, floriculture,
viticulture or  commercial  fishing,  provided  the  property  otherwise
qualifies  under  paragraph  two  of  this subsection, in which event, a
modification shall not be allowed under such subsection  (h)  and  under
such paragraphs two and four of subsection (g).
(7)  (A)  With  respect  to  property which is depreciable pursuant to
section one hundred sixty-seven of the internal revenue code but is  not
subject  to  the  provisions  of section one hundred sixty-eight of such
code and which is disposed of or ceases to be in qualified use prior  to
the  end  of  the  taxable  year in which the credit is to be taken, the
amount of the credit shall be that portion of the credit provided for in
this subsection which represents the ratio which the months of qualified
use bear to the months of useful life. If property on which  credit  has
been  taken is disposed of or ceases to be in qualified use prior to the
end of its useful life, the difference between the credit taken and  the
credit  allowed  for  actual  use  must  be  added  back  in the year of
disposition. Provided, however, if  such  property  is  disposed  of  or
ceases  to  be  in  qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not  be  necessary  to  add
back  the  credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying  the  original
credit by the ratio which the months of qualified use bear to the months
of  useful  life.  For  purposes  of  this  subparagraph, useful life of
property shall be  the  same  as  the  taxpayer  uses  for  depreciation
purposes when computing his federal income tax liability.
(B)  Except with respect to that property to which subparagraph (D) of
this paragraph applies, with respect to three-year property, as  defined
in  subsection  (e)  of  section one hundred sixty-eight of the internal
revenue code, which is disposed of or ceases  to  be  in  qualified  use
prior to the end of the taxable year in which the credit is to be taken,
the  amount  of  the credit shall be that portion of the credit provided
for in this subsection which represents the ratio which  the  months  of
qualified  use  bear to thirty-six. If property on which credit has been
taken is disposed of or ceases to be in qualified use prior to  the  end
of  thirty-six  months,  the difference between the credit taken and the
credit allowed for actual  use  must  be  added  back  in  the  year  of
disposition.  The  amount  of  credit  allowed  for  actual use shall be
determined by multiplying the original credit by  the  ratio  which  the
months of qualified use bear to thirty-six.
(C)  Except with respect to that property to which subparagraph (D) of
this  paragraph  applies,  with  respect  to  property  subject  to  the
provisions  of  section  one hundred sixty-eight of the internal revenue
code, other than three-year property as defined  in  subsection  (e)  of
such  section  one hundred sixty-eight which is disposed of or ceases to
be in qualified use prior to the end of the taxable year  in  which  the
credit is to be taken, the amount of the credit shall be that portion of
the  credit  provided  for in this subsection which represents the ratio
which the months of qualified use bear to sixty. If  property  on  which
credit  has  been  taken is disposed of or ceases to be in qualified use
prior to the end of sixty months,  the  difference  between  the  credit
taken  and  the  credit allowed for actual use must be added back in the
year of disposition. The amount of credit allowed for actual  use  shall
be  determined by multiplying the original credit by the ratio which the
months of qualified use bear to sixty.
(D) With  respect  to  any  property  to  which  section  one  hundred
sixty-eight of the internal revenue code applies, which is a building or
a  structural component of a building and which is disposed of or ceases
to be in qualified use prior to the end of the taxable year in which the
credit is to be taken, the amount of the credit shall be that portion of
the credit provided for in this subsection which  represents  the  ratio
which  the  months  of  qualified use bear to the total number of months
over which the  taxpayer  chooses  to  deduct  the  property  under  the
internal  revenue  code.  If  property on which credit has been taken is
disposed of or ceases to be in qualified use prior to  the  end  of  the
period  over which the taxpayer chooses to deduct the property under the
internal revenue code, the difference between the credit taken  and  the
credit  allowed  for  actual  use  must  be  added  back  in the year of
disposition. Provided, however, if  such  property  is  disposed  of  or
ceases  to  be  in  qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not  be  necessary  to  add
back  the  credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying  the  original
credit  by the ratio which the months of qualified use bear to the total
number of months over which the taxpayer chooses to deduct the  property
under the internal revenue code.
(E) For purposes of this paragraph, property (i) which is described in
subparagraph  (B),  (C)  or  (D)  of  this  paragraph, and (ii) which is
subject  to  paragraph  twenty-six  of  subsection  (c)  and   paragraph
twenty-five  of  subsection  (b)  of  section six hundred twelve of this
chapter, shall be treated as property which is depreciable  pursuant  to
section  one hundred sixty-seven of the internal revenue code but is not
subject to section one hundred sixty-eight of such code.
(F) For purposes of this paragraph, where a  credit  is  allowed  with
respect  to  an  air  pollution  control  facility  on  the  basis  of a
certificate  of  compliance  issued  pursuant   to   the   environmental
conservation  law and the certificate is revoked pursuant to subdivision
three  of  section  19-0309  of the environmental conservation law, such
revocation shall constitute a disposal or cessation  of  qualified  use,
unless such facility is described in clause (i) or (iii) of subparagraph
(A)  of  paragraph  two  of  this  subsection. Also for purposes of this
subparagraph, the use  of  an  air  pollution  control  facility  or  an
industrial waste treatment facility for the primary purpose of salvaging
materials   which  are  usable  in  the  manufacturing  process  or  are
marketable shall constitute a cessation of qualified  use,  unless  such
facility  is  described  in  clause  (i) or (iii) of subparagraph (A) of
paragraph two of this subsection.
(G) For taxable years commencing on or after January  first,  nineteen
hundred  eighty-seven,  the amount required to be added back pursuant to
this paragraph shall be augmented by an amount equal to the  product  of
such  amount  and  the  underpayment rate of interest (without regard to
compounding), set by the commissioner  pursuant  to  subsection  (j)  of
section  six  hundred  ninety-seven,  in  effect  on the last day of the
taxable year.
(H) If, as of the close of the taxable year, there is a  net  increase
with  respect  to the taxpayer in the amount of nonqualified nonrecourse
financing (within the meaning of  section  46(c)  (8)  of  the  internal
revenue  code)  with  respect  to any property with respect to which the
credit  under  this  subsection  was  limited  based   on   attributable
nonqualified nonrecourse financing, then an amount equal to the decrease
in such credit which would have resulted from reducing, by the amount of
such  net  increase,  the  cost  or  other basis taken into account with
respect to such property must be added back in such  taxable  year.  The
amount  of  nonqualified  nonrecourse  financing shall not be treated as
increased by reason of a transfer of  (or  agreement  to  transfer)  any
evidence  of  an indebtedness if such transfer occurs (or such agreement
is entered into) more than one year after the date such indebtedness was
incurred.
(10) For purposes of paragraph five of this subsection, an  individual
who  is  either  a  sole  proprietor  or a member of a partnership shall
qualify as an owner of a new business unless:
(A) the business of which the individual is an owner is  substantially
similar  in  operation and in ownership to a business entity taxable, or
previously taxable, under section one hundred eighty-three, one  hundred
eighty-four  or former section one hundred eighty-five former section of
article nine; article nine-A or thirty-three of  this  chapter;  article
twenty-three  of  this  chapter  or which would have been subject to tax
under such article twenty-three  (as  such  article  was  in  effect  on
January  first,  nineteen  hundred  eighty),  article thirty-two of this
chapter or which would have been  subject  to  tax  under  such  article
thirty-two  (as such article was in effect on December thirty-first, two
thousand fourteen) or the income  (or  losses)  of  which  is  (or  was)
includable  under  article twenty-two of this chapter whereby the intent
and purpose of this paragraph and paragraph five of this subsection with
respect to refunding of credit to new business would be evaded; or
(B) the individual has operated such new business entity in this state
for  more  than  five  taxable  years  (excluding  short  years  of  the
business).
(11)  Retail  enterprise tax credit. A retail enterprise, not eligible
to claim the credit under paragraph one of this subsection, but eligible
to claim the credit allowable under section thirty-eight of the internal

revenue code pursuant solely to the provisions of  subparagraph  (E)  of
paragraph  one  of  subsection  (a) of section forty-eight of such code,
shall be allowed a credit as hereinafter computed.  The  amount  of  the
credit  shall  be  the  percentage  appearing  in  paragraph one of this
subsection for the periods described therein for the amount of qualified
rehabilitation expenditures, as defined in  subsection  (g)  of  section
forty-eight  of  such code, paid or incurred with respect to a qualified
rehabilitated building, as defined in such subsection  (g),  located  in
this  state  and  such expenditures shall be further limited to only the
portion thereof paid  or  incurred  with  respect  to  that  part  of  a
qualified rehabilitated building employed by such taxpayer in the retail
sales  activity  of  such  retail  enterprise.  For the purposes of this
subsection, the term "retail enterprise" means a taxpayer which is:  (A)
a  registered  vendor  under  article  twenty-eight of this chapter, (B)
primarily engaged in the retail sale,  as  the  term  "retail  sale"  is
defined  in  subparagraph  (i)  of  paragraph four of subdivision (b) of
section eleven  hundred  one  of  this  chapter,  of  tangible  personal
property,  and (C) otherwise eligible for the credit allowed pursuant to
section thirty-eight of the internal revenue code.
(12) Rehabilitation credit for historic barns.  A  taxpayer  shall  be
allowed  a  credit,  to be computed as hereinafter provided, against the
tax imposed  by  this  article.  The  amount  of  the  credit  shall  be
twenty-five   percent   of   the   taxpayer's  qualified  rehabilitation
expenditures  paid  or  incurred  within  the  five  years   immediately
preceding  the  year  in  which  such  tax  credit shall be applied with
respect to any barn located in this state which qualifies as an historic
barn pursuant to subdivision five of section four hundred eighty-three-b
of the real property tax law. For purposes of this paragraph,  the  term
"barn"  means a building that is or was used as an agricultural facility
or  for  purposes  related  to  agriculture.  Provided,  however,   such
qualified   rehabilitation  expenditures  shall  not  include  any  such
expenditures  which  are  included,  directly  or  indirectly,  in   the
computation  of  a  credit claimed by the taxpayer pursuant to paragraph
one of this subsection. Provided further that no  rehabilitation  credit
shall  be  allowed  for  any rehabilitation of a barn which, immediately
prior  to  the  commencement  of  such  rehabilitation,  was  used   for
residential  purposes,  or  which  converts  a  barn  not  suitable  for
residential purposes  into  one  which  is  so  suitable,  nor  shall  a
rehabilitation  credit be allowed for any rehabilitation that materially
alters the historic appearance of the barn.
(13)(A)(i) If a taxpayer  is  required  by  paragraph  seven  of  this
subsection  to  add  back a portion of the credit taken because property
was destroyed or ceased to be in qualified use as a direct result of the
September eleventh, two thousand one terrorist  attacks,  such  taxpayer
may  elect to defer the amount to be recaptured for all such property to
the  taxable  year  next  succeeding  the  taxable  year  in  which  the
destruction  or cessation of qualified use occurred. The taxable year in
which the destruction or cessation of qualified use  occurred  shall  be
hereinafter  referred  to  as the "recapture event taxable year". If the
taxpayer's total employment number in the state on the last day  of  the
taxable  year  next  succeeding  the  recapture  event taxable year is a
significant percentage of the taxpayer's average total employment number
in the state for the taxpayer's recapture event taxable year and the two
taxable years immediately preceding the recapture  event  taxable  year,
then  the  taxpayer  shall  not be required to recapture any credit with
respect to such property. If the taxpayer's total employment  number  in
the  state  on  the  last  day  of  the taxable year next succeeding the
recapture event taxable year is not  a  significant  percentage  of  the

taxpayer's  average  total  employment  number  in  the  state  for  the
taxpayer's recapture event  taxable  year  and  the  two  taxable  years
immediately  preceding  the  recapture  event taxable year, the taxpayer
shall  be  required  to  recapture the portion of the credit taken under
this subsection, as required by paragraph seven of this subsection,  for
all  of its property destroyed or which ceased to be in qualified use as
a direct result of the September eleventh, two  thousand  one  terrorist
attacks.  The  amount  required  to  be recaptured shall be augmented as
required pursuant  to  subparagraph  (G)  of  paragraph  seven  of  this
subsection  by  using  an  interest  rate equal to two times the rate of
interest specified in such subparagraph seven applicable for the taxable
year in which the recapture occurs.
(ii)  The  taxpayer's  total  employment  number  shall  include   all
employees  of  the  taxpayer  employed  full-time by the taxpayer in the
state. The average total  employment  number  for  the  recapture  event
taxable  year  and  the  two  taxable  years  immediately  preceding the
recapture event taxable  year  shall  be  computed  by  determining  the
taxpayer's total employment number on the thirty-first day of March, the
thirtieth   day  of  June,  the  thirtieth  day  of  September  and  the
thirty-first day of December during the applicable taxable years, adding
together the number of such individuals determined to be so employed  on
each  of  such  dates  and dividing the sum so obtained by the number of
such dates occurring within such applicable taxable years.  However,  in
the  case  of  the  taxable  year which included September eleventh, two
thousand one, the average total employment number for such taxable  year
shall  be  determined  by using the total employment number on September
first, two thousand one in lieu of September thirtieth, two thousand one
and, if such taxable year included December thirty-first,  two  thousand
one,  by excluding the total employment number on December thirty-first,
two thousand one.
(B) In lieu of subparagraph (A) of  this  paragraph,  a  taxpayer  may
elect   to  recapture  the  portion  of  the  credit  taken  under  this
subsection, as required by paragraph seven of this subsection,  for  all
of  its  property  destroyed or which ceased to be in qualified use as a
direct result of the September  eleventh,  two  thousand  one  terrorist
attacks,  in  the  taxable year in which the destruction or cessation of
qualified use occurred. If the taxpayer makes such election and acquires
property (hereinafter referred to as "replacement property") to  replace
any property destroyed as a direct result of the September eleventh, two
thousand  one  terrorist  attacks  (regardless of when such property was
placed in service and whether a credit  was  claimed  on  that  property
pursuant  to  this subsection), and such replacement property is similar
or related in service or use to such destroyed property, the  investment
credit  base  of  the  replacement  property shall be determined without
regard to any basis reduction required pursuant to section 1033  of  the
internal revenue code.
(C) The election made by the taxpayer under subparagraph (A) or (B) of
this  paragraph  shall  be made in the manner and form prescribed by the
commissioner.
(D) A taxpayer, over fifty percent of whose employees died as a direct
result of the September eleventh, two thousand  one  terrorist  attacks,
may  make  the  election  provided  for  in  subparagraph  (A)  of  this
paragraph, and shall not  be  required  to  recapture  any  credit  with
respect  to  property  which  was  destroyed  or  which  ceased to be in
qualified use as a direct result of such  attacks,  whether  or  not  it
meets the employment test specified in clause (i) of subparagraph (A) of
this paragraph.
(a-1)  Employment  incentive  credit (EIC). (1)(A) Where a taxpayer is
allowed a credit under subsection (a) of this section, other than at the
optional rate applicable  to  research  and  development  property,  the
taxpayer  shall  be  allowed  a  credit  for  each of the two years next
succeeding  the  taxable year for which the credit under such subsection
(a) is allowed with respect to such property, whether or not  deductible
in  such  taxable  year  or  in  subsequent  taxable  years  pursuant to
paragraph five of subsection (a) of  this  section.  Provided,  however,
that  the  credit  allowable  under this subsection for any taxable year
shall be allowed only if the average number  of  employees  during  such
taxable  year  is at least one hundred one percent of the average number
of employees during the employment base year. The employment  base  year
shall  be  the  taxable  year immediately preceding the taxable year for
which the credit under such subsection (a) is allowed except that in the
case of a new business, the employment base year shall  be  the  taxable
year in which the credit under such subsection (a) is allowed.
(B) The amount of the credit allowed under this subsection shall be as
set forth in the following table:
 
Average number of employees during      Credit allowed under this
the taxable year expressed as a         subsection expressed as a
percentage of average number of         percentage of the applicable
employees in employment base year:      investment credit base:
Less than 102%                                    1.5%
at least 102% and less than 103%                  2%
at least 103%                                     2.5%
(2)  The  average  number  of  employees  in  a  taxable year shall be
computed by ascertaining  the  number  of  employees  within  the  state
employed by the taxpayer on the thirty-first day of March, the thirtieth
day  of June, the thirtieth day of September and the thirty-first day of
December in the taxable year, by adding together the number of employees
ascertained on each of such dates and dividing the sum  so  obtained  by
the  number  of  such  abovementioned dates occurring within the taxable
year. For the purposes of this subsection, the  term  "employees  within
the state" shall not include, except with respect to the employment base
year,  any  employee  with  respect  to whom a credit provided for under
subsection (k) of this section is claimed for the taxable year, based on
employment within a zone equivalent area designated as such pursuant  to
article eighteen-B of the general municipal law.
(3)  If  the  amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year,  the  excess
allowed  for a taxable year may be carried over to the ten taxable years
next following such taxable year and may be deducted from the taxpayer's
tax for such year or years. In lieu of carrying over any such excess,  a
taxpayer  who  qualifies  as  an owner of a new business for purposes of
paragraph ten of subsection (a) of this  section  may,  at  his  or  her
option,  receive  such  excess  as a refund. Any refund paid pursuant to
this paragraph shall be deemed to be a refund of an overpayment  of  tax
as provided in section six hundred eighty-six of this article, provided,
however, that no interest shall be paid thereon.
(a-2)  Hire  a vet credit.  (1) Allowance of credit. For taxable years
beginning on or after January first, two  thousand  fifteen  and  before
January  first,  two  thousand twenty-six, a taxpayer shall be allowed a
credit, to be computed as provided in this subsection, against  the  tax
imposed  by  this  article,  for hiring and employing, for not less than
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 subsection, the taxpayer may not use the hiring of a
qualified veteran that is the basis for this credit in the basis of  any
other credit allowed under this article.
(2) Qualified veteran. A qualified veteran is an individual:
(A)  who  served  on  active duty in the United States army, navy, air
force, 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 subsection 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. If the amount of credit allowable under this subsection
for  any  taxable  year  exceeds  the  taxpayer's tax for such year, any
amount of credit not deductible in such taxable year may be carried over

to the following three years and may be deducted from the taxpayer's tax
for such year or years.
(b) Household credit.  (1) A household credit shall be allowed against
the  tax  determined  under  subsections  (a) through (d) of section six
hundred one of this  article.  The  credit,  computed  as  described  in
paragraph  two  of  this subsection, shall not exceed the tax determined
under subsections (a) through (d) of section six  hundred  one  for  the
taxable  year,  reduced  by  the  credits  permitted  under sections six
hundred twenty and six hundred twenty-one of this article.
(2) (A) For any individual who is  not  married  nor  the  head  of  a
household  nor  a  surviving  spouse,  the  amount of the credit allowed
pursuant to this subsection for taxable  years  beginning  on  or  after
January  first,  nineteen  hundred  eighty-six  shall  be  determined in
accordance with the following table:
If household gross income is               The credit shall be
Not over $5,000                                     $75.00
Over $5,000 but not over $6,000                      60.00
Over $6,000 but not over $7,000                      50.00
Over $7,000 but not over $20,000                     45.00
Over $20,000 but not over $25,000                    40.00
Over $25,000 but not over $28,000                    20.00
(B) For any husband and  wife,  head  of  a  household,  or  surviving
spouse, the amount of the credit allowed pursuant to this subsection for
taxable  years  beginning  on  or  after January first, nineteen hundred
eighty-six shall be determined in accordance with the following table:
If household gross income is               The credit shall be
Not over $5,000                     $90.00  plus  an  amount  equal   to
$15.00 multiplied by a number  which
is  one  less  than  the  number  of
exemptions for  which  the  taxpayer
or  in  the  case  of a husband and
wife, taxpayers) is  entitled  to  a
deduction  for  the taxable year for
federal income  tax  purposes  under
subsections  (b)  and (c) of section
one   hundred   fifty-one   of   the
internal revenue code
Over $5,000 but not over $6,000     $75.00 plus such an amount
Over $6,000 but not over $7,000     $65.00 plus such an amount
Over $7,000 but not over $20,000    $60.00 plus such an amount
Over $20,000 but not over $22,000   $60.00  plus  an  amount  equal   to
$10.00  multiplied by a number which
is  one  less  than  the  number  of
exemptions  for  which  the taxpayer                                  or in the case  of  a  husband  and
wife,  taxpayers)  is  entitled to a
deduction for the taxable  year  for
federal  income  tax  purposes under
subsections (b) and (c)  of  section
one   hundred   fifty-one   of   the
internal revenue code
Over $22,000 but not over $25,000   $50.00 plus such an amount
Over $25,000 but not over $28,000   $40.00 plus an amount equal to $5.00
multiplied by a number which is  one
less  than  the number of exemptions
for which the taxpayer  (or  in  the
case   of   a   husband   and  wife,
taxpayers)   is   entitled   to    a
deduction  for  the taxable year for
federal income  tax  purposes  under
subsections  (b)  and (c) of section
one   hundred   fifty-one   of   the
internal revenue code
Over $28,000 but not over $32,000   $20.00 plus such an amount
(3) For the purposes of this subsection:
(A) "Household gross income" shall mean the aggregate federal adjusted
gross  income  of  a  household,  as  the  term  household is defined in
subparagraph (B) of this paragraph, for the taxable year.
(B) "Household" means a husband and  wife,  a  head  of  household,  a
surviving  spouse, or an individual who is not married nor the head of a
household nor a surviving spouse nor a taxpayer with respect to  whom  a
deduction  under  subsection (c) of section one hundred fifty-one of the
internal revenue code is allowable to another taxpayer for  the  taxable
year.
(C)  "Household  gross  income  of  a  husband  and wife" shall be the
aggregate of their federal adjusted gross incomes for the  taxable  year
irrespective  of  whether  joint or separate New York income tax returns
are filed. Provided, however, that a husband or wife who is required  to
file  a  separate New York income tax return shall be permitted one-half
the credit otherwise allowed his or her household, except as limited  by
paragraph one of this subsection.
(c) Credit for certain household and dependent care services necessary
for gainful employment.
(1)  A  taxpayer shall be allowed a credit as provided herein equal to
the  applicable  percentage  of  the  credit  allowable  under   section
twenty-one  of  the  internal  revenue  code  for  the same taxable year
(without regard to whether the taxpayer in fact claimed the credit under
such  section  twenty-one  for  such  taxable  year).   The   applicable
percentage  shall be the sum of (i) twenty percent and (ii) a multiplier
multiplied by a  fraction.  For  taxable  years  beginning  in  nineteen
hundred  ninety-six  and nineteen hundred ninety-seven, the numerator of
such fraction shall be the lesser of (i) four thousand dollars  or  (ii)
fourteen  thousand  dollars  less the New York adjusted gross income for
the taxable year, provided, however, the numerator  shall  not  be  less
than   zero.   For  the  taxable  year  beginning  in  nineteen  hundred
ninety-eight, the numerator of such fraction shall be the lesser of  (i)
thirteen  thousand  dollars or (ii) thirty thousand dollars less the New
York adjusted gross income for the taxable year, provided, however,  the
numerator  shall  not  be less than zero. For taxable years beginning in
nineteen hundred ninety-nine, the numerator of such  fraction  shall  be
the  lesser  of  (i)  fifteen  thousand  dollars  or (ii) fifty thousand
dollars less the New York adjusted gross income for  the  taxable  year,
provided,  however,  the  numerator  shall  not  be  less than zero. For
taxable  years  beginning  after  nineteen  hundred   ninety-nine,   the
numerator  of  such fraction shall be the lesser of (i) fifteen thousand
dollars or (ii) sixty-five thousand dollars less the New  York  adjusted
gross  income  for  the  taxable  year, provided, however, the numerator
shall not be less than zero. The denominator of such fraction  shall  be
four  thousand  dollars  for taxable years beginning in nineteen hundred
ninety-six and nineteen hundred ninety-seven, thirteen thousand  dollars
for  the  taxable  year  beginning in nineteen hundred ninety-eight, and
fifteen thousand dollars for  taxable  years  beginning  after  nineteen

hundred  ninety-eight.  The  multiplier shall be ten percent for taxable
years beginning  in  nineteen  hundred  ninety-six,  forty  percent  for
taxable  years  beginning  in  nineteen hundred ninety-seven, and eighty
percent for taxable years beginning after nineteen hundred ninety-seven.
Provided,  however,  for  taxable years beginning after nineteen hundred
ninety-nine, for a person whose New York adjusted gross income  is  less
than  forty  thousand dollars, such applicable percentage shall be equal
to (i) one hundred percent,  plus  (ii)  ten  percent  multiplied  by  a
fraction  whose  numerator  shall  be the lesser of (i) fifteen thousand
dollars or (ii) forty thousand dollars less the New York adjusted  gross
income  for  the taxable year, provided such numerator shall not be less
than zero, and whose denominator  shall  be  fifteen  thousand  dollars.
Provided,  further,  that  if  the  reversion  event, as defined in this
paragraph, occurs, the applicable percentage shall,  for  taxable  years
ending  on  or  after the date on which the reversion event occurred, be
determined using the rules specified in  this  paragraph  applicable  to
taxable  years  beginning in nineteen hundred ninety-nine. The reversion
event shall be deemed to have occurred on  the  date  on  which  federal
action,  including  but  not  limited  to,  administrative, statutory or
regulatory changes, materially reduces or eliminates  New  York  state's
allocation  of the federal temporary assistance for needy families block
grant, or materially reduces the ability of the state to  spend  federal
temporary assistance for needy families block grant funds for the credit
for  certain household and dependent care services necessary for gainful
employment or to apply state general fund spending  on  the  credit  for
certain  household  and  dependent  care  services necessary for gainful
employment toward the temporary  assistance  for  needy  families  block
grant  maintenance  of  effort  requirement, and the commissioner of the
office of temporary and disability assistance shall certify the date  of
such  event  to  the  commissioner,  the director of the division of the
budget, the speaker of the assembly and the temporary president  of  the
senate.
(1-a)  For taxable years beginning after two thousand seventeen, for a
taxpayer with New York adjusted gross income of at least fifty  thousand
dollars but less than one hundred fifty thousand dollars, the applicable
percentage  shall  be the applicable percentage otherwise computed under
paragraph one of this subsection multiplied by a factor as follows:
If New York adjusted gross
income is:                                         The factor is:
At least $50,000 and less
than $55,000                                       1.1682
At least $55,000 and less
than $60,000                                       1.2733
At least $60,000 and less
than $65,000                                       2.322
At least $65,000 and less
than $150,000                                      3.000
(1-b) Notwithstanding anything in this subsection to the  contrary,  a
taxpayer  shall be allowed a credit as provided in this subsection equal
to the applicable percentage  of  the  credit  allowable  under  section
twenty-one  of  the  internal  revenue  code  for  the same taxable year
(without regard to whether the taxpayer in fact claimed the credit under
such section twenty-one for such taxable  year)  that  would  have  been
allowed  absent  the  application  of  section  21(c)  of  such code for
taxpayers with more than two qualifying individuals,  provided  however,
that  the  credit  shall  be calculated as if the dollar limit on amount
creditable shall not exceed seven thousand five hundred dollars if there
are three qualifying individuals, eight thousand five hundred dollars if

there are four qualifying individuals,  and  nine  thousand  dollars  if
there are five or more qualifying individuals.
(2)  Residents.  In  the case of a resident taxpayer, the credit under
this subsection shall be allowed  against  the  taxes  imposed  by  this
article  for  the  taxable year reduced by the credits permitted by this
article.  If the credit exceeds the tax as so reduced, the taxpayer  may
receive,   and   the  comptroller,  subject  to  a  certificate  of  the
commissioner, shall pay as an overpayment, without interest, the  amount
of such excess.
(3)  Nonresidents.  In  the case of a nonresident taxpayer, the credit
under this subsection shall be allowed against the tax determined  under
subsections  (a)  through  (d) of section six hundred one. The amount of
the credit shall not exceed the tax determined  under  such  subsections
for  the  taxable  year reduced by the credit permitted under subsection
(b) of this section.
(4) Part-year residents. In the case of a part-year resident taxpayer,
the credit under this  subsection  shall  be  allowed  against  the  tax
determined  under subsections (a) through (d) of section six hundred one
reduced by the credit permitted under subsection (b)  of  this  section,
and  any  excess  credit after such application shall be allowed against
the tax imposed by section six  hundred  three.  Any  remaining  excess,
after  such  application, shall be refunded as provided in paragraph two
hereof, provided, however, that any  overpayment  under  such  paragraph
shall  be  limited to the amount of the remaining excess multiplied by a
fraction, the numerator of which is federal adjusted  gross  income  for
the  period  of  residence,  computed as if the taxable year for federal
income tax purposes were limited to the period  of  residence,  and  the
denominator  of  which  is federal adjusted gross income for the taxable
year.
(5) In the case of a husband and wife who file a joint federal return,
but who are required to determine their New York taxes  separately,  the
credit  allowed  pursuant to this subsection may only be applied against
the tax imposed on the spouse with the lower  taxable  income,  computed
without regard to such credit. In the case of a husband and wife who are
not  required to file a federal return, the credit under this subsection
shall be allowed only if such taxpayers file a joint New York income tax
return.
(c-1) Empire state child credit.   (1) A resident  taxpayer  shall  be
allowed  a credit as provided herein equal to the greater of one hundred
dollars times the number of qualifying children of the taxpayer  or  the
applicable percentage of the child tax credit allowed the taxpayer under
section  twenty-four  of  the internal revenue code for the same taxable
year for each qualifying child. Provided, however,  in  the  case  of  a
taxpayer  whose  federal  adjusted  gross  income exceeds the applicable
threshold amount set forth by section 24(b)(2) of the  Internal  Revenue
Code, the credit shall only be equal to the applicable percentage of the
child  tax  credit allowed the taxpayer under section 24 of the Internal
Revenue Code for  each  qualifying  child.  For  the  purposes  of  this
subsection, a qualifying child shall be a child who meets the definition
of qualified child under section 24(c) of the internal revenue code. The
applicable  percentage  shall  be  thirty-three percent. For purposes of
this subsection, any reference to section 24  of  the  Internal  Revenue
Code  shall  be  a  reference  to such section as it existed immediately
prior to the enactment of Public Law 115-97.
(2) If the amount of the credit allowed under this subsection for  any
taxable  year  shall exceed the taxpayer's tax for such year, the excess
shall be treated as an overpayment of tax to be credited or refunded  in

accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(3) In the case of a husband and wife who file a joint federal return,
but  who  are required to determine their New York taxes separately, the
credit allowed pursuant to this subsection may be  applied  against  the
tax imposed of either or divided between them as they may elect.
(4)  (A)  For tax year two thousand twenty-one, the commissioner shall
issue a payment of a supplemental  empire  state  child  credit  in  the
amount  of  (i)  one  hundred  percent  of the empire state child credit
calculated and allowed pursuant to this subsection  to  taxpayers  whose
federal  adjusted  gross income was less than ten thousand dollars; (ii)
seventy-five percent of the empire state  child  credit  calculated  and
allowed  pursuant to this subsection to taxpayers whose federal adjusted
gross income was greater than or equal to ten thousand dollars but  less
than  twenty-five  thousand  dollars;  (iii) fifty percent of the empire
state child credit calculated and allowed pursuant to this subsection to
taxpayers whose federal adjusted gross income was greater than or  equal
to  twenty-five  thousand  dollars but less than fifty thousand dollars;
and (iv) twenty-five percent of the empire state child credit calculated
and allowed pursuant to  this  subsection  to  taxpayers  whose  federal
adjusted  gross  income  was  greater  than  or  equal to fifty thousand
dollars. Provided, however, that no payment shall be  issued  if  it  is
less than twenty-five dollars.
(B)  The  supplemental  payment  pursuant  to  this  paragraph will be
allowed to taxpayers who timely filed returns pursuant  to  section  six
hundred  fifty-one of this article, determined with regard to extensions
pursuant to section sex hundred fifty-seven of this article.
(5) (A) For tax year two thousand twenty-three, the commissioner shall
issue a payment of a supplemental  empire  state  child  credit  in  the
amount  of  (i)  one  hundred  percent  of the empire state child credit
calculated and allowed pursuant to this subsection  to  taxpayers  whose
federal  adjusted  gross income was less than ten thousand dollars; (ii)
seventy-five percent of the empire state  child  credit  calculated  and
allowed  pursuant to this subsection to taxpayers whose federal adjusted
gross income was greater than or equal to ten thousand dollars but  less
than  twenty-five  thousand  dollars;  (iii) fifty percent of the empire
state child credit calculated and allowed pursuant to this subsection to
taxpayers whose federal adjusted gross income was greater than or  equal
to  twenty-five  thousand  dollars but less than fifty thousand dollars;
and (iv) twenty-five percent of the empire state child credit calculated
and allowed pursuant to  this  subsection  to  taxpayers  whose  federal
adjusted  gross  income  was  greater  than  or  equal to fifty thousand
dollars. Provided, however, that no payment shall be  issued  if  it  is
less than twenty-five dollars.
(B)  The  supplemental  payment  pursuant  to  this paragraph shall be
allowed to taxpayers who timely filed returns pursuant  to  section  six
hundred  fifty-one of this article, determined with regard to extensions
pursuant to section six hundred fifty-seven of this article.
(d) Earned income credit. (1) General. A taxpayer shall be  allowed  a
credit  as provided herein equal to (i) the applicable percentage of the
earned income credit allowed under section thirty-two  of  the  internal
revenue  code  for  the  same  taxable  year, (ii) reduced by the credit
permitted under subsection (b) of this section.
The applicable percentage shall be (i) seven and one-half percent  for
taxable  years  beginning  in  nineteen  hundred  ninety-four,  (ii) ten
percent for taxable years beginning  in  nineteen  hundred  ninety-five,
(iii)  twenty percent for taxable years beginning after nineteen hundred
ninety-five and  before  two  thousand,  (iv)  twenty-two  and  one-half

percent  for  taxable  years  beginning in two thousand, (v) twenty-five
percent  for  taxable  years  beginning  in  two  thousand   one,   (vi)
twenty-seven  and  one-half  percent  for taxable years beginning in two
thousand  two,  and  (vii) thirty percent for taxable years beginning in
two thousand three  and  thereafter.  Provided,  however,  that  if  the
reversion  event,  as  defined in this paragraph, occurs, the applicable
percentage shall be twenty percent for taxable years ending on or  after
the  date  on  which  the  reversion event occurred. The reversion event
shall be deemed to have occurred on the date on  which  federal  action,
including  but  not  limited to, administrative, statutory or regulatory
changes, materially reduces or eliminates New York state's allocation of
the federal temporary assistance for  needy  families  block  grant,  or
materially  reduces  the ability of the state to spend federal temporary
assistance for needy families block grant funds for  the  earned  income
credit  or  to  apply  state  general fund spending on the earned income
credit toward the temporary assistance for needy  families  block  grant
maintenance of effort requirement, and the commissioner of the office of
temporary and disability assistance shall certify the date of such event
to  the  commissioner  of  taxation  and  finance,  the  director of the
division of the budget, the speaker of the assembly  and  the  temporary
president of the senate.
(2)  Residents.  In  the case of a resident taxpayer, the credit under
this subsection shall be allowed  against  the  taxes  imposed  by  this
article  for  the  taxable year reduced by the credits permitted by this
article.  If the credit exceeds the tax as so reduced, the taxpayer  may
receive,   and   the  comptroller,  subject  to  a  certificate  of  the
commissioner, shall pay as an overpayment, without interest, the  amount
of such excess.
(3)  Nonresidents.  In  the case of a nonresident taxpayer, the credit
under this subsection shall be allowed against the tax determined  under
subsections  (a)  through  (d) of section six hundred one. The amount of
the credit shall not exceed the tax determined  under  such  subsections
for  the taxable year reduced by the credits permitted under subsections
(b), (c) and (m) of this section.
(4) Part-year residents. In the case of a part-year resident taxpayer,
the credit under this  subsection  shall  be  allowed  against  the  tax
determined  under subsections (a) through (d) of section six hundred one
reduced by the credits permitted under subsections (b), (c) and  (m)  of
this  section,  and  any  excess  credit after such application shall be
allowed against the tax  imposed  by  section  six  hundred  three.  Any
remaining  excess, after such application, shall be refunded as provided
in paragraph two hereof, provided, however, that any  overpayment  under
such  paragraph  shall  be limited to the amount of the remaining excess
multiplied by a fraction, the numerator of  which  is  federal  adjusted
gross  income  for  the  period of residence, computed as if the taxable
year for federal income tax purposes  were  limited  to  the  period  of
residence, and the denominator of which is federal adjusted gross income
for the taxable year.
(5)  Husband  and  wife.  In the case of a husband and wife who file a
joint federal return but who are required to determine  their  New  York
taxes  separately, the credit allowed pursuant to this subsection may be
applied against the tax of either or divided between them  as  they  may
elect.
(6)  Notification.  (A)  The  commissioner shall periodically, but not
less than every three years, make efforts to alert taxpayers that may be
currently eligible to receive the credit provided under this subsection,
and the  credit  provided  under  any  local  law  enacted  pursuant  to
subsection  (f)  of  section thirteen hundred ten of this chapter, as to

their potential eligibility. In making the determination  of  whether  a
taxpayer  may  be  eligible  for such credit, the commissioner shall use
such data as may  be  appropriate  and  available,  including,  but  not
limited  to,  data  available  from  the  United  States  Department  of
Treasury, Internal Revenue Service and New York state income tax returns
for preceding tax years.
(B) If the department determines that  the  taxpayer  is  eligible  to
receive  the  credit  provided under this subsection but has not claimed
such credit on his or her  return,  the  department  shall  compute  the
taxpayer's liability and allow the credit, and, if applicable, issue any
refund  for  the allowable credit amount provided under this subsection.
Any refund paid pursuant to this subparagraph shall be deemed  to  be  a
refund  of  an  overpayment  of  tax  as provided in section six hundred
eighty-six of this article, provided, however, that no interest shall be
paid thereon.
(7) Reports. The commissioner  shall  prepare  a  preliminary  written
report after July thirty-first and a final written report after December
thirty-first  of  each  calendar  year,  which shall contain statistical
information regarding the credits granted on or before such dates  under
this  subsection, and under any local law enacted pursuant to subsection
(f) of section  thirteen  hundred  ten  of  this  chapter,  during  such
calendar  year.  Copies  of  these  reports  shall  be submitted by such
commissioner to the governor, the temporary president of the senate, the
speaker of the assembly, the chairman of the  senate  finance  committee
and  the  chairman of the assembly ways and means committee within sixty
days of July thirty-first with respect to the  preliminary  report,  and
within  forty-five  days  of  December  thirty-first with respect to the
final report, and copies of such reports with respect to  credits  under
any  local  law  enacted  pursuant to subsection (f) of section thirteen
hundred ten of this chapter shall be submitted in addition to the  mayor
and  the speaker of the council of the city where such a local law is in
effect. Such reports shall contain, but need  not  be  limited  to,  the
number of credits and the average amount of such credits allowed; and of
those,  the  number  of  credits  and the average amount of such credits
allowed to taxpayers in each county; and of those, the number of credits
and the average amount of such credits allowed to taxpayers whose earned
income falls within ranges, determined by the commissioner, of not  more
than  four thousand dollars; and of those, the number of credits and the
average amount of such credits allowed to taxpayers who file  under  the
different  statuses set forth in subsections (a), (b) and (c) of section
six hundred one of this part; and of those, the number  of  credits  and
the  average amount of such credits allowed to taxpayers whose number of
qualifying children falls  within  the  categories  set  forth  in  such
section thirty-two of the internal revenue code.
(8) For tax year two thousand twenty-one, the commissioner shall issue
a  payment  of  a  supplemental  earned  income  tax  credit to resident
taxpayers in the amount of twenty-five percent of the earned income  tax
credit  calculated and allowed pursuant to this subsection. Such payment
will be allowed to resident taxpayers who timely filed returns  pursuant
to section six hundred fifty-one of this article, determined with regard
to  extensions  pursuant  to  section  six  hundred  fifty-seven of this
article.  Provided, however, that no payment shall be issued  if  it  is
less than twenty-five dollars.
(d-1)  Enhanced  earned income tax credit. (1) A taxpayer described in
paragraph two of this subsection shall be allowed a credit equal to  the
greater of:
(A)  twenty percent of the amount of the earned income tax credit that
would have been allowed to the taxpayer under section 32 of the internal

revenue code, absent the application  of  section  32(b)(2)(B)  of  such
code,  if  the  child  or  children  described  in  subparagraph  (C) of
paragraph two of  this  subsection  satisfied  the  requirements  for  a
qualifying  child  set  forth in section 32(c)(3) of such code, provided
however, that the credit shall be calculated as if the taxpayer had only
one child; or
(B) the product of two and one-half  and  the  amount  of  the  earned
income  tax  credit  that  would have been allowed to the taxpayer under
section 32 of the internal revenue code, if the taxpayer  satisfied  the
eligibility  requirements  set  forth in section 32(c)(1)(A)(ii) of such
code.
(2) To be allowed a credit under  this  subsection,  a  taxpayer  must
satisfy all of the following qualifications.
(A) The taxpayer must be a resident taxpayer.
(B) The taxpayer must have attained the age of eighteen.
(C)  The taxpayer must be the parent of a minor child or children with
whom the taxpayer does not reside.
(D) The taxpayer must have an order requiring him or her to make child
support payments, which are payable through a  support  collection  unit
established  pursuant  to  section  one  hundred  eleven-h of the social
services law, which order must have been in effect for at least one-half
of the taxable year.
(E) The taxpayer must have paid an amount  in  child  support  in  the
taxable  year  at least equal to the amount of current child support due
during the taxable year for every order requiring him  or  her  to  make
child support payments.
(3)  If  the  amount of the credit allowed under this subsection shall
exceed the taxpayer's tax for such year, the excess shall be treated  as
an  overpayment of tax to be credited or refunded in accordance with the
provisions of section six hundred eighty-six of this article,  provided,
however, that no interest shall be paid thereon.
(4)  No claim for credit under this subsection shall be allowed unless
the department has verified, from information provided by the office  of
temporary  and  disability assistance, that a taxpayer has satisfied the
qualifications set forth in subparagraphs (C), (D) and (E) of  paragraph
two   of  this  subsection.  The  office  of  temporary  and  disability
assistance shall provide to the department by January fifteenth of  each
year  information  applicable  for  the  immediately  preceding tax year
necessary for the department to make such verification. Such information
shall be provided in the manner and form agreed upon by  the  department
and  such  office.  If  a  taxpayer's  claim  for  a  credit  under this
subsection is disallowed because the  taxpayer  has  not  satisfied  the
qualifications  set forth in subparagraphs (C), (D) and (E) of paragraph
two of this subsection, the taxpayer  may  request  a  review  of  those
qualifications  by  the  support collection unit established pursuant to
section one hundred eleven-h of the social services  law  through  which
the  child  support  payments  were payable. The support collection unit
shall transmit the result of that review to the office of temporary  and
disability  assistance  on  a form developed by such office. Such office
shall then transmit such result to the department  in  a  manner  agreed
upon by the department and such office.
(5)  A  taxpayer  shall  not  be  allowed  multiple credits under this
subsection for a taxable year even if such taxpayer has  more  than  one
child  or  has  more  than  one order requiring him or her to make child
support payments.
(6) If a credit is allowed under this subsection and the  taxpayer  is
also allowed a credit under subsection (d) of this section, the taxpayer
shall only be allowed to claim one credit.
(7)  In  the report prepared pursuant to paragraph seven of subsection
(d)  of  this  section,  the  commissioner  shall  include   statistical
information  concerning  the credit allowed pursuant to this subsection.
Such information shall be limited to  the  number  of  credits  and  the
average  amount  of  such  credits  allowed; and of those, the number of
credits and the average amounts of such credits allowed to taxpayers  in
each county.
(8)  In  a  report  prepared  by the commissioner and submitted to the
office of temporary and  disability  assistance,  the  department  shall
include  information  concerning  the  credit  allowed  pursuant to this
subsection indicating whether or not taxpayers identified by the  office
of  temporary  and  disability  assistance pursuant to paragraph four of
this subsection filed an income tax return, filed for a credit, received
a credit, and the amount of any such  credit.  Any  individual  taxpayer
information  furnished  by the department pursuant to this section shall
be deemed confidential and may not be disclosed to any third  party  and
the  office  of  temporary  and disability assistance is prohibited from
using the individual taxpayer information  except  for  the  purpose  of
analyzing  the  impact  of  the  credit  and its effect on child support
payments.
(9) For tax year two thousand twenty-one, the commissioner shall issue
a payment of a supplemental enhanced earned income  tax  credit  in  the
amount  of  twenty-five percent of the enhanced earned income tax credit
calculated and allowed pursuant to this subsection. Such payment will be
allowed to taxpayers who timely filed returns pursuant  to  section  six
hundred  fifty-one of this article, determined with regard to extensions
pursuant to section six hundred fifty-seven of this  article.  Provided,
however,  that no payment shall be issued if it is less than twenty-five
dollars.
(e) Real property tax circuit breaker credit. (1) For purposes of this
subsection:
(A) "Qualified taxpayer" means a resident individual of the state  who
has  occupied  the  same residence for six months or more of the taxable
year, and is required or chooses to file a return under this article.
(B) "Household" or  "members  of  the  household"  means  a  qualified
taxpayer  and  all  other persons, not necessarily related, who have the
same residence and share its furnishings, facilities and accommodations.
Such terms shall not include a tenant, subtenant, roomer or boarder  who
is  not  related  to  the  qualified taxpayer in any degree specified in
subparagraphs (A) through (G) of paragraph  two  of  subsection  (d)  of
section  one  hundred  fifty-two of the internal revenue code. Provided,
however, no person may be a member of more than  one  household  at  one
time.
(c) "Household gross income" means the aggregate adjusted gross income
of  all  members  of  the household for the taxable year as reported for
federal income tax purposes, or which  would  be  reported  as  adjusted
gross  income  if a federal income tax return were required to be filed,
with the modifications in subsection (b) of section six  hundred  twelve
but  without  the  modifications in subsection (c) of such section, plus
any portion of the gain from the sale or exchange of property  otherwise
excluded from such amount; earned income from sources without the United
States  excludable  from  federal  gross  income by section nine hundred
eleven of the internal revenue  code;  support  money  not  included  in
adjusted gross income; nontaxable strike benefits; supplemental security
income  payments; the gross amount of any pension or annuity benefits to
the extent not included in such adjusted gross  income  (including,  but
not  limited  to, railroad retirement benefits and all payments received
under  the  federal  social  security  act  and   veterans'   disability

pensions);  nontaxable interest received from the state of New York, its
agencies,   instrumentalities,   public   corporations,   or   political
subdivisions   (including  a  public  corporation  created  pursuant  to
agreement   or   compact   with   another  state  or  Canada);  workers'
compensation; the gross amount  of  "loss-of-time"  insurance;  and  the
amount  of  cash  public  assistance  and  relief,  other  than  medical
assistance for the needy, paid to or for the benefit  of  the  qualified
taxpayer  or  members of his household. Household gross income shall not
include surplus foods or other  relief  in  kind  or  payments  made  to
individuals  because  of  their status as victims of Nazi persecution as
defined in P.L. 103-286. Provided, further, household gross income shall
only include all such income received by all members  of  the  household
while members of such household.
(D)  "Residence"  means  a  dwelling  in  this state, whether owned or
rented, and so much of the land abutting it, not exceeding one acre,  as
is  reasonably  necessary  for  use  of  the dwelling as a home, and may
consist  of  a  part  of  a  multi-dwelling  or  multi-purpose  building
including a cooperative or condominium, and rental units within a single
dwelling.  Residence includes a trailer or mobile home, used exclusively
for  residential  purposes  and  defined  as  real  property pursuant to
paragraph (g) of subdivision twelve of section one hundred  two  of  the
real property tax law.
(E)  "Qualifying  real  property taxes" means all real property taxes,
special  ad  valorem  levies  and  special  assessments,  exclusive   of
penalties  and interest, levied on the residence of a qualified taxpayer
and  paid  during  the  taxable  year  less  the  credit  claimed  under
subsection  (n-1)  of  this  section.  In  addition,  for  taxable years
beginning after December thirty-first, nineteen hundred  eighty-four,  a
qualified taxpayer may elect to include any additional amount that would
have  been  levied  in  the  absence  of an exemption from real property
taxation pursuant to  section  four  hundred  sixty-seven  of  the  real
property  tax  law.  If  tenant-stockholders  in  a  cooperative housing
corporation have met the requirements of section two hundred sixteen  of
the internal revenue code by which they are allowed a deduction for real
estate  taxes,  the  amount  of  taxes  so  allowable, or which would be
allowable if the taxpayer had filed returns on a cash  basis,  shall  be
qualifying  real  property taxes. If a residence is owned by two or more
individuals as joint tenants or tenants in common, and one or more  than
one  individual  is  not  a  member  of  the  household, qualifying real
property taxes is that  part  of  such  taxes  on  the  residence  which
reflects  the ownership percentage of the qualified taxpayer and members
of his household. If a residence is an integral part of a  larger  unit,
qualifying  real  property taxes shall be limited to that amount of such
taxes paid as may be reasonably apportioned  to  such  residence.  If  a
household  owns  and  occupies  two  or more residences during different
periods in the same taxable year, qualifying real property  taxes  shall
be  the  sum of the prorated qualifying real property taxes attributable
to the household during the periods such household occupies each of such
residences. If the household owns and occupies a residence for  part  of
the  taxable  year  and  rents  a residence for part of the same taxable
year, it may include both the  proration  of  qualifying  real  property
taxes  on  the residence owned and the real property tax equivalent with
respect to the months the residence is rented.  Provided,  however,  for
purposes  of  the  credit allowed under this subsection, qualifying real
property taxes may be included by  a  qualified  taxpayer  only  to  the
extent  that such taxpayer or the spouse of such taxpayer occupying such
residence for six months or more of the taxable year owns or  has  owned
the residence and paid such taxes.
(F)  "Real  property  tax equivalent" means twenty-five percent of the
adjusted rent actually paid in the taxable year by  a  household  solely
for  the  right  of  occupancy of its New York residence for the taxable
year. If (i) a residence  is  rented  to  two  or  more  individuals  as
cotenants, or such individuals share in the payment of a single rent for
the  right  of  occupancy  of  such  residence,  and  (ii)  each of such
individuals is a member of a different household, one or more  of  which
individuals  shares such residence, real property tax equivalent is that
portion of twenty-five percent of the adjusted rent paid in the  taxable
year  which  reflects  that  portion  of  the  rent  attributable to the
qualified taxpayer and the members of his household.
(G) "Adjusted rent" means rental paid for the right of occupancy of  a
residence, excluding charges for heat, gas, electricity, furnishings and
board. Where charges for heat, gas, electricity, furnishing or board are
included in rental but where such charges and the amount thereof are not
separately  set  forth  in  a  written rental agreement, for purposes of
determining adjusted rent the qualified  taxpayer  shall  reduce  rental
paid as follows:
(i) For heat, or heat and gas, deduct fifteen percent of rental paid.
(ii)  For  heat,  gas and electricity, deduct twenty percent of rental
paid.
(iii) For heat, gas, electricity and furnishings,  deduct  twenty-five
percent of rental paid.
(iv)  For  heat, gas, electricity, furnishings and board, deduct fifty
percent of rental paid.
If the tax commission determines that the adjusted  rent  shown  on  the
return  is  excessive,  the  tax  commission  may  reduce such rent, for
purposes of the computation of the credit, to  an  amount  substantially
equivalent to rent for a comparable accommodation.
(2)  A  qualified  taxpayer  shall  be allowed a credit as provided in
paragraph three hereof against the taxes imposed by this article reduced
by the credits permitted by this article. If the credit exceeds the  tax
as  so  reduced  for such year under this article the qualified taxpayer
may receive, and the comptroller, subject to a certificate of the  state
tax  commission,  shall  pay  as  an  overpayment, without interest, any
excess between such tax as so reduced and the amount of the credit. If a
qualified taxpayer is not required to file a return pursuant to  section
six hundred fifty-one, a qualified taxpayer may nevertheless receive and
the  comptroller,  subject to a certificate of the state tax commission,
shall pay as an overpayment the  full  amount  of  the  credit,  without
interest.
(3)  Determination  of  credit.  (A)  For qualified taxpayers who have
attained the age of sixty-five years before the beginning of  or  during
the  taxable  year  the  amount  of  the  credit  allowable  under  this
subsection shall be fifty  percent,  or  in  the  case  of  a  qualified
taxpayer  who  has  elected  to include an additional amount pursuant to
subparagraph (E)  of  paragraph  one  of  this  subsection,  twenty-five
percent,  of  the  excess  of  real property taxes or the excess of real
property tax equivalent determined as follows:
Excess real property taxes are the
excess of real property tax equiv-
alent or the excess of qualifying
real property taxes over  the  fo-
If household gross income for the    llowing percentage of household
taxable year is:                     gross income:
-----------------------------------  -----------------------------------

$3,000 or less                                      3 1/2
Over $3,000 but not over $5,000                     4
Over $5,000 but not over $7,000                     4 1/2
Over $7,000 but not over $9,000                     5
Over $9,000 but not over $11,000                    5 1/2
Over $11,000 but not over $14,000                   6
Over $14,000 but not over $18,000                   6 1/2
Notwithstanding   the   foregoing   provisions,   the  maximum  credit
determined under this subparagraph may not exceed the amount  determined
in accordance with the following table:
 
If household gross income for the
taxable year is:                     The maximum credit is:
-----------------------------------  -----------------------------------
$1,000 or less                                      $375
Over $1,000 but not over $2,000                     $358
Over $2,000 but not over $3,000                     $341
Over $3,000 but not over $4,000                     $324
Over $4,000 but not over $5,000                     $307
Over $5,000 but not over $6,000                     $290
Over $6,000 but not over $7,000                     $273
Over $7,000 but not over $8,000                     $256
Over $8,000 but not over $9,000                     $239
Over $9,000 but not over $10,000                    $222
Over $10,000 but not over $11,000                   $205
Over $11,000 but not over $12,000                   $188
Over $12,000 but not over $13,000                   $171
Over $13,000 but not over $14,000                   $154
Over $14,000 but not over $15,000                   $137
Over $15,000 but not over $16,000                   $120
Over $16,000 but not over $17,000                   $103
Over $17,000 but not over $18,000                   $ 86
(B)  For  all  other  qualified  taxpayers  the  amount  of the credit
allowable under this subsection shall be fifty percent  of  excess  real
property  taxes  or  the  excess  of  the  real  property tax equivalent
determined as follows:
Excess real property taxes are the
excess of real property tax equiv-
alent or the excess of qualifying
real property taxes over the
If household gross income for the    following percentage of household
taxable year is:                     gross income:
-----------------------------------  -----------------------------------
$3,000 or less                                      3 1/2
Over $3,000 but not over $5,000                     4
Over $5,000 but not over $7,000                     4 1/2
Over $7,000 but not over $9,000                     5
Over $9,000 but not over $11,000                    5 1/2
Over $11,000 but not over $14,000                   6
Over $14,000 but not over $18,000                   6 1/2
Notwithstanding  the  foregoing   provisions,   the   maximum   credit
determined  under this subparagraph may not exceed the amount determined
in accordance with the following table:

If household gross income for the
taxable year is:                     The maximum credit is:
-----------------------------------  -----------------------------------
$1,000 or less                                      $75
Over $1,000 but not over $2,000                     $73
Over $2,000 but not over $3,000                     $71
Over $3,000 but not over $4,000                     $69
Over $4,000 but not over $5,000                     $67
Over $5,000 but not over $6,000                     $65
Over $6,000 but not over $7,000                     $63
Over $7,000 but not over $8,000                     $61
Over $8,000 but not over $9,000                     $59
Over $9,000 but not over $10,000                    $57
Over $10,000 but not over $11,000                   $55
Over $11,000 but not over $12,000                   $53
Over $12,000 but not over $13,000                   $51
Over $13,000 but not over $14,000                   $49
Over $14,000 but not over $15,000                   $47
Over $15,000 but not over $16,000                   $45
Over $16,000 but not over $17,000                   $43
Over $17,000 but not over $18,000                   $41
(4)  If a qualified taxpayer occupies a residence for a period of less
than twelve months during the taxable  year  or  occupies  two  or  more
residences  during  different  periods  in such taxable year, the credit
allowed pursuant to this subsection shall be computed in such manner  as
the  tax  commission  may, by regulation, prescribe in order to properly
reflect the credit or portion thereof attributable to such residence  or
residences and such period or periods.
(5)  The  tax  commission  may  prescribe  that  the credit under this
subsection shall be determined in whole or in part by the use of  tables
prescribed by such commission. Such tables shall set forth the credit to
the nearest dollar.
(6)  Only one credit per household and per qualified taxpayer shall be
allowed per taxable year under this subsection. When two or more members
of a household are able to  meet  the  qualifications  for  a  qualified
taxpayer,  the  credit  shall  be  equally divided between or among such
individuals unless such individuals  file  with  the  tax  commission  a
written  agreement  among  such  individuals  setting  forth a different
division. Where two or more members of a household are able to meet  the
qualifications  of  a  qualified  taxpayer and one of them is sixty-five
years of age or more, the credit which may be taken shall be the  credit
applicable to individuals who have attained the age of sixty-five years.
(A)  Provided, however, where a joint income tax return has been filed
pursuant to the  provisions  of  section  six  hundred  fifty-one  by  a
qualified  taxpayer  and his spouse (or where both spouses are qualified
taxpayers and have filed such joint return), the credit, or the  portion
of  the  credit  if  divided, to which the husband and wife are entitled
shall be applied against the tax of both  spouses  and  any  overpayment
shall be made to both spouses.
(B)  Where  any return required to be filed pursuant to the provisions
of section six hundred fifty-one is combined  with  any  return  of  tax
imposed  pursuant  to  the authority of this chapter or any other law if
such tax is administered by  the  tax  commission,  the  credit  or  the
portion  of the credit if divided, allowed to the qualified taxpayer may
be  applied  by  the  tax  commission  toward  any  liability  for   the
aforementioned taxes.
(7) No credit shall be granted under this subsection:
(A)  If  household  gross income for the taxable year exceeds eighteen
thousand dollars.
(B)  To  a  property  owner  unless:  (i)  the  property  is  used for
residential purposes, (ii) not more than twenty percent  of  the  rental
income,  if  any,  from  the  property is from rental for nonresidential
purposes and (iii) the property is occupied as a residence in  whole  or
in part by one or more of the owners of the property.
(C)  To  a  property  owner  who owns real property, the full value of
which exceeds eighty-five thousand dollars.
(D) To a tenant if the adjusted rent for the  residence  exceeds  four
hundred fifty dollars per month on average.
(E) To an individual with respect to whom a deduction under subsection
(c)  of  section  one  hundred fifty-one of the internal revenue code is
allowable to another taxpayer for the taxable year.
(F) With respect to a residence that  is  wholly  exempted  from  real
property taxation.
(G) To an individual who is not a resident individual of the state for
the entire taxable year.
(8) The right to claim a credit or the portion of a credit, where such
credit  has been divided under this subsection, shall be personal to the
qualified taxpayer and shall not survive his death, but such  right  may
be  exercised  on behalf of a claimant by his legal guardian or attorney
in fact during his lifetime.
(9) Returns. If a qualified taxpayer is not required to file a  return
pursuant  to  section six hundred fifty-one, a claim for a credit may be
taken on a return filed with the tax commission within three years  from
the  time it would have been required that a return be filed pursuant to
such section had the qualified taxpayer had a  taxable  year  ending  on
December  thirty-first.  Returns  under  this paragraph shall be in such
form as shall be prescribed by the  tax  commission,  which  shall  make
available such forms and instructions for filing such returns.
(10)  Proof  of  claim.  The  tax  commission  may require a qualified
taxpayer to furnish the following information in support  of  his  claim
for  credit  under  this  subsection: household gross income, rent paid,
name and address of owner or managing agent of the property rented, real
property taxes levied or that would have been levied in the  absence  of
an  exemption  from  real  property tax pursuant to section four hundred
sixty-seven of the real property tax law, the names of  members  of  the
household  and  other  qualifying taxpayers occupying the same residence
and  their  identifying  numbers  including  social  security   numbers,
household gross income, size and nature of property claimed as residence
and all other information which may be required by the tax commission to
determine the credit.
(11)  Administration.  The  provisions  of this article, including the
provisions of section six hundred fifty-three, six hundred  fifty-eight,
and  six  hundred  fifty-nine  and  the  provisions  of part six of this
article relating to procedure and administration, including the judicial
review of the decisions of the tax commission, except so much of section
six hundred eighty-seven which permits a claim for credit or  refund  to
be  filed  after  the  period  provided  for  in  paragraph nine of this
subsection and except sections  six  hundred  fifty-seven,  six  hundred
eighty-eight  and  six hundred ninety-six, shall apply to the provisions
of this subsection in the same manner and with the same force and effect
as if the language of those provisions had  been  incorporated  in  full
into this subsection and had expressly referred to the credit allowed or
returns  filed under this subsection, except to the extent that any such
provision is either inconsistent with a provision of this subsection  or
is  not  relevant  to this subsection. As used in such sections and such

part, the term "taxpayer" shall include a qualified taxpayer under  this
subsection  and,  notwithstanding  the  provisions  of subsection (e) of
section  six  hundred  ninety-seven,  where  a  qualified  taxpayer  has
protested the denial of a claim for credit under this subsection and the
time  to  file  a  petition  for  redetermination of a deficiency or for
refund has not expired, he shall, subject to such conditions as  may  be
set  by  the  tax  commission,  receive  such  information  (A) which is
contained in any return filed under this article  by  a  member  of  his
household  for the taxable year for which the credit is claimed, and (B)
which the tax commission finds is relevant and material to the issue  of
whether  such  claim  was properly denied. The tax commission shall have
the authority to  promulgate  such  rules  and  regulations  as  may  be
necessary  for the processing, determination and granting of credits and
refunds under this subsection.
(13) Notwithstanding any other provision of this article,  the  credit
allowed   under   this   subsection   shall   be  determined  after  the
determination and application of any other credits permitted  under  the
provisions of this article.
(14)  The  commissioner  of  taxation  and  finance  shall  prepare  a
preliminary written report after July thirty-first and a  final  written
report  after  December  thirty-first of each calendar year, which shall
contain statistical information regarding  the  credits  granted  on  or
before  such  dates  under  this  subsection  during such calendar year.
Copies of these reports shall be submitted by such commissioner  to  the
governor,  the  temporary  president  of  the senate, the speaker of the
assembly, the chairman of the senate finance committee and the  chairman
of  the  assembly  ways  and  means  committee within sixty days of July
thirty-first  with  respect  to  the  preliminary  report,  and   within
forty-five  days  of  December  thirty-first  with  respect to the final
report. Such reports shall contain, but need  not  be  limited  to,  the
number of credits and the average amount of such credits allowed; and of
those,  the  number  of  credits  and the average amount of such credits
allowed to qualified taxpayers in each county; and of those, the  number
of  credits  and the average amount of such credits allowed to qualified
taxpayers  whose  household  gross  income  falls  within  each  of  the
household  gross  income  ranges  set  forth  in paragraph three of this
subsection; and of those, the number of credits and the  average  amount
of such credits allowed to qualified taxpayers whose credit amount falls
within credit amount ranges set forth in twenty-five dollar increments.
(e-1)  Volunteer  firefighters' and ambulance workers' credit. (1) For
taxable years beginning on and after January first, two thousand  seven,
a  resident  taxpayer  who  serves as an active volunteer firefighter as
defined in subdivision one of section two hundred fifteen of the general
municipal  law  or  as  a  volunteer  ambulance  worker  as  defined  in
subdivision  fourteen  of  section two hundred nineteen-k of the general
municipal law shall be allowed a credit against the tax imposed by  this
article  equal to two hundred dollars. In order to receive this credit a
volunteer firefighter or  volunteer  ambulance  worker  must  have  been
active for the entire taxable year for which the credit is sought.
(2)  If  a taxpayer receives a real property tax exemption relating to
such service under title two of article four of the  real  property  tax
law,  such  taxpayer  shall  not  be eligible for this credit; provided,
however (A) if the taxpayer receives such real property tax exemption in
the two thousand seven taxable year as a result  of  making  application
therefor  in  a  prior  year  or (B) if the taxpayer notifies his or her
assessor in writing by December thirty-first, two thousand seven of  the
taxpayer's intent to discontinue such real property tax exemption by not
re-applying  for  such  real  property tax exemption by the next taxable

status date, such taxpayer shall be eligible for this credit for the two
thousand seven taxable year.
(3)  In the case of a husband and wife who file a joint return and who
both individually qualify for the  credit  under  this  subsection,  the
amount of the credit allowed shall be four hundred dollars.
(4)  If the amount of the credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year,  the  excess
shall  be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(e-2) Real property tax  relief  credit.  (1)  For  purposes  of  this
subsection:
(A)  "Qualified taxpayer" means a resident individual of the state who
owned and primarily resided for six months or more of the  taxable  year
in  real  property that either received the STAR exemption authorized by
section four hundred twenty-five of the real property tax  law  or  that
qualified   the  taxpayer  to  receive  the  school  tax  relief  credit
authorized by subsection (eee) of this section.
(B) "Qualified gross income" means the adjusted gross  income  of  the
qualified  taxpayer for the taxable year for federal income tax purposes
and, for taxable year two thousand twenty-one computed without regard to
the last sentence of subdivision (a) of section  six  hundred  seven  of
this  article.  In  computing  qualified gross income, the net amount of
loss reported on Federal Schedule C, D, E, or F shall not  exceed  three
thousand  dollars per schedule. In addition, the net amount of any other
separate category of loss shall not exceed three thousand  dollars.  The
aggregate  amount  of  all  losses included in computing qualified gross
income shall not exceed fifteen thousand dollars.
(C) "Residence" means a dwelling in this state owned by  the  taxpayer
and used by the taxpayer as his or her primary residence, and so much of
the land abutting it, not exceeding one acre, as is reasonably necessary
for  use  of  the  dwelling  as  a  home, and may consist of a part of a
multi-dwelling or multi-purpose  building  including  a  cooperative  or
condominium.   Residence   includes  a  trailer  or  mobile  home,  used
exclusively for  residential  purposes  and  defined  as  real  property
pursuant  to  paragraph (g) of subdivision twelve of section one hundred
two of the real property tax law.
(D) "Qualifying real property taxes" means all  real  property  taxes,
special   ad  valorem  levies  and  special  assessments,  exclusive  of
penalties and interest, levied by a taxing jurisdiction on the residence
owned and occupied by a qualified taxpayer and  paid  by  the  qualified
taxpayer  during the taxable year, provided that to the extent the total
amount of real property taxes so paid includes  school  district  taxes,
the  amount  of  the school tax relief (STAR) credit claimed pursuant to
subsection (eee) of this section, if any, shall be  deducted  from  such
amount.
A  qualified  taxpayer may elect to include any additional amount that
would have been  levied  by  a  taxing  jurisdiction  and  paid  by  the
qualified  taxpayer  in  the  absence of an exemption from real property
taxation pursuant to  section  four  hundred  sixty-seven  of  the  real
property  tax  law.  If  tenant-stockholders  in  a  cooperative housing
corporation have met the requirements of section two hundred sixteen  of
the internal revenue code by which they are allowed a deduction for real
estate  taxes,  the  amount  of  taxes  so  allowable, or which would be
allowable if the taxpayer had filed returns on a cash  basis,  shall  be
qualifying  real property taxes. If a residence is an integral part of a
larger unit, qualifying real property taxes shall  be  limited  to  that
amount  of  such  taxes  paid  as  may be reasonably apportioned to such

residence. If a taxpayer owned and occupied two residences in the  state
during  different  periods  in  the  same  taxable year, qualifying real
property taxes shall be the sum of the prorated qualifying real property
taxes  attributable  to  the  taxpayer  during the periods such taxpayer
occupied each of such residences. A taxpayer who owned  and  occupied  a
residence  in  the  state  for  part  of  the  taxable year and rented a
residence in the state for part of the same taxable  year,  may  include
the  proration of qualifying real property taxes on the residence owned.
Provided, however,  for  purposes  of  the  credit  allowed  under  this
subsection,  qualifying  real  property  taxes  may  be  included  by  a
qualified taxpayer only to the extent that such taxpayer or  the  spouse
of  such  taxpayer  occupied such residence for one hundred eighty-three
days or more of the taxable year, owned  the  residence  and  paid  such
taxes.
(E)  "Excess  real  property  tax" means the excess of qualifying real
property taxes over six percent of qualified gross income.
(2) For tax years beginning on or after January  first,  two  thousand
twenty-one  and  before  January  first,  two  thousand  twenty-four,  a
qualified taxpayer shall be allowed a credit as  provided  in  paragraph
three  of  this subsection against the taxes imposed by this article. If
the credit exceeds the tax for such year under this article, the  excess
shall  be treated as an overpayment, to be credited or refunded, without
interest.
(3) Determination of credit. The  credit  amount  allowed  under  this
subsection  shall be the product of the excess real property tax and the
applicable percentage of the excess real  property  tax,  calculated  as
follows:
(A)   For   qualified   taxpayers  whose  qualified  gross  income  is
seventy-five thousand dollars or less, the applicable  percentage  shall
be fourteen percent.
(B)  For  qualified  taxpayers whose qualified gross income is greater
than seventy-five thousand dollars but less than or equal to one hundred
fifty  thousand  dollars,  the  applicable  percentage  shall   be   the
difference between (i) fourteen percent and (ii) five percent multiplied
by  a  fraction,  the  numerator  of which is the difference between the
qualified  taxpayer's  qualified  gross  income  as  defined   by   this
subsection  and  seventy-five  thousand  dollars, and the denominator of
which is seventy-five thousand dollars.
(C) For qualified taxpayers whose qualified gross  income  is  greater
than  one  hundred  fifty thousand dollars but less than or equal to two
hundred fifty thousand dollars, the applicable percentage shall  be  the
difference between (i) nine percent and (ii) six percent multiplied by a
fraction, the numerator of which is the difference between the qualified
taxpayer's  qualified  gross  income  and  one  hundred  fifty  thousand
dollars, and the denominator of which is one hundred thousand dollars.
(4) No credit shall be allowed under this  subsection  if  the  amount
determined  pursuant  to  paragraph three is less than two hundred fifty
dollars, provided further that if  the  amount  determined  pursuant  to
paragraph three is in excess of three hundred fifty dollars the taxpayer
shall be allowed a credit of three hundred fifty dollars.
(5)  The  commissioner  may  prescribe  that  the  credit  under  this
subsection shall be determined in whole or in part by the use of  tables
prescribed  by such commissioner. Such tables shall set forth the credit
to the nearest dollar.
(6) No credit shall be granted under this subsection:
(A) To a property owner if qualified gross income for the taxable year
exceeds two hundred fifty thousand dollars.
(B) To  a  property  owner  unless:  (i)  the  property  is  used  for
residential  purposes;  (ii)  not more than twenty percent of the rental
income, if any, from the property  is  from  rental  for  nonresidential
purposes;  and (iii) the property is occupied as a residence in whole or
in part by one or more of the owners of the property.
(C) To an individual with respect to whom a deduction under subsection
(c)  of  section  one  hundred fifty-one of the internal revenue code is
allowable to another taxpayer for the taxable year.
(D) With respect to a residence that  is  wholly  exempted  from  real
property taxation.
(E) To an individual who is not a resident individual of the state for
the entire taxable year.
(7) In the case of a taxpayer who has itemized deductions from federal
adjusted  gross income, and whose federal itemized deductions include an
amount for real estate taxes  paid,  the  New  York  itemized  deduction
otherwise  allowable  under  section six hundred fifteen of this chapter
shall be reduced  by  the  amount  of  the  credit  claimed  under  this
subsection.
(f) Credit for the special additional mortgage recording tax.  (1) For
taxable years beginning before nineteen hundred eighty-eight, a taxpayer
shall  be  allowed  a  credit, to be credited against the tax imposed by
this article, after allowance of any other credit  provided  under  this
section and any credits permitted under sections six hundred twenty, six
hundred  twenty-one  and  six  hundred  thirty-five of this article. The
amount of the credit shall be  the  amount  of  the  special  additional
mortgage  recording  tax paid by the taxpayer pursuant to the provisions
of subdivision one-a of section two hundred fifty-three of this  chapter
on  mortgages  recorded  on  and  after  January first, nineteen hundred
seventy-nine. Provided, however, no credit shall be allowed with respect
to a mortgage of real property principally improved or to be improved by
one or more structures containing in the aggregate  not  more  than  six
residential  dwelling  units, each dwelling unit having its own separate
cooking facilities, where the real property is located in one or more of
the  counties  comprising  the  metropolitan   commuter   transportation
district  and  where  the  mortgage  is  recorded on or after May first,
nineteen hundred eighty-seven. Provided, however,  no  credit  shall  be
allowed with respect to a mortgage of real property principally improved
or  to be improved by one or more structures containing in the aggregate
not more than six residential dwelling units, each dwelling unit  having
its  own separate cooking facilities, where the real property is located
in the county of Erie and where the mortgage is recorded on or after May
first, nineteen hundred eighty-seven.
(2) In no event shall the amount of the credit herein provided for  be
allowed  in  excess of the taxpayer's tax for such year. However, if the
amount of credit otherwise  allowable  under  this  subsection  for  any
taxable  year  results  in  such excess amount, any amount of credit not
deductible in such taxable year may be carried  over  to  the  following
year  or years and may be deducted from the taxpayer's tax for such year
or years.
(3)(A) Notwithstanding the provisions of paragraphs  one  and  two  of
this subsection, for taxable years beginning after two thousand three, a
taxpayer  shall  be  allowed  a  credit,  to be credited against the tax
imposed by this article, equal to the amount of the  special  additional
mortgage  recording  tax  paid  by  the  taxpayer  or,  in the case of a
taxpayer who is a partner in a partnership, the partner's pro rata share
of the amount of the special additional mortgage recording tax  paid  by
the  partnership,  pursuant  to  the  provisions of subdivision one-a of
section two hundred fifty-three of this chapter on mortgages recorded on

and after January first, two thousand four. Provided, however, no credit
shall be allowed with respect to a mortgage of real property principally
improved by one or more structures containing in the aggregate not  more
than  six  residential dwelling units, each dwelling unit having its own
separate cooking facilities, where the real property is located  in  one
or   more   of   the   counties  comprising  the  metropolitan  commuter
transportation district and where the mortgage is recorded on  or  after
January  first,  two thousand four. Provided further, no credit shall be
allowed with respect to a mortgage of real property principally improved
by one or more structures containing in the aggregate not more than  six
residential  dwelling  units, each dwelling unit having its own separate
cooking facilities, where the real property is located  in  Erie  county
and  where  the  mortgage  is  recorded  on  or after January first, two
thousand four.
(B) If the amount of credit allowable under  this  paragraph  for  any
taxable  year  exceeds  the  taxpayer's tax for such year, any amount of
credit exceeding such tax may be carried over to the following  year  or
years  and  may  be  deducted  from  the taxpayer's tax for such year or
years. Provided further, such taxpayer may elect to  treat  such  unused
amount  of credit as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article except that no interest shall be paid on such overpayment.
(g) Credit for solar and wind energy systems.
(1) A taxpayer shall be allowed a credit for taxable  years  beginning
on or after January first, nineteen hundred eighty-one and ending before
December  thirty-first,  nineteen  hundred  eighty-six  against  the tax
imposed by this article for the purchase and installation of a solar  or
wind  energy  system  by  a taxpayer in his principal residence, if such
residence is located within the state. The amount of the credit shall be
fifty-five  percent  of  the  expenditure  incurred  in  purchasing  and
installing any such system or combination thereof, but not to exceed the
maximum credit of two thousand seven hundred fifty dollars.
(2)  A solar or wind system is a system whose original use begins with
the taxpayer; which meets the eligibility criteria, if  any,  prescribed
by the department of taxation and finance; and which is:
(A)  an  active solar energy system which shall mean an arrangement or
combination of components designed  to  provide  heating,  cooling,  hot
water  or electricity through the process of collecting solar radiation,
converting it to another form of energy, storing the  converted  energy,
protecting   against   unnecessary   dissipation  and  distributing  the
converted energy, and  which  requires  external  mechanical  power  for
operation.  This  term  shall not include pipes, controls, insulation or
other equipment which are part of  the  conventional  heating,  cooling,
insulation  or electrical system of a building; nor shall it include any
expenditure allocable to a swimming pool used as a storage medium;
(B) a passive solar energy system, which shall  mean  a  system  which
relies  upon  the  original  or  retrofitted  design  and  elements of a
building to enhance the use of natural forces including solar radiation,
winds and night-time coolness to provide heating, cooling or  hot  water
through  the  process  of  collecting  solar radiation, converting it to
another form of energy, storing the converted energy, protecting against
unnecessary dissipation and distributing the converted energy, and which
is not primarily dependent upon mechanical  power  for  operation.  This
term  shall  not  include pipes, controls, insulation or other equipment
which are part of the conventional heating, cooling or insulation system
of the building; nor shall it include any  expenditure  allocable  to  a
swimming pool used as a storage medium; or
(C)  a  wind  energy  system,  which  shall  mean  an  arrangement  or
combination  of  components,  including  power  conditioning  equipment,
designed to provide electricity or mechanical energy through the process
of  converting  wind  energy into mechanical and/or electric energy, and
storing or distributing such energy.
(3)  Where a solar or wind energy system is purchased and installed by
a  condominium  management  association   or   a   cooperative   housing
corporation,  a  taxpayer  who is a member of the condominium management
association or who is a tenant-stockholder in  the  cooperative  housing
corportion  may for the purpose of this subsection claim a proportionate
share of the total expense as the expenditure for the  purposes  of  the
credit attributable to his principal residence.
(4)  Where  a  solar  or  wind  system is purchased and installed in a
principal residence shared by two or more taxpayers the  amount  of  the
credit  allowable  under this subsection for each such taxpayer shall be
prorated according to the percentage of the total expenditure  for  such
system contributed by each taxpayer.
(5)  To  the  extent  that  a federal income tax credit shall apply to
expenditures eligible for a credit under  this  subsection,  the  credit
provided in this subsection shall be reduced so that the combined credit
shall not exceed fifty-five percent of such expenditures or six thousand
seven hundred fifty dollars, whichever is less.
(6)  If  the  amount  of  credit allowable under this subsection shall
exceed the taxpayer's tax for such year, the excess may be carried  over
to  the  following year or years and may be deducted from the taxpayer's
tax for such year or years.
(7) If all  or  any  part  of  the  credit  provided  for  under  this
subsection  was  allowed  or  carried  over from a prior taxable year or
years, a taxpayer shall  reduce  the  allowable  credit  for  additional
qualifying  expenditures  in  a subsequent tax year by the amount of the
credit previously allowed or  carried  over;  provided  however  that  a
credit  previously  allowed or carried over from a prior taxable year or
years shall not be taken  into  account  in  determining  the  allowable
credit  for  the  purchase  and  installation  of a solar or wind energy
system in a subsequent principal residence.
(8)  For  the  purpose  of  determining  the  amount  of  the   actual
expenditure incurred in purchasing and installing a solar or wind energy
system,  the amount of any federal, state or local grant received by the
taxpayer, which was used for the purchase and/or  installation  of  such
system  and  which was not included in the gross income of the taxpayer,
shall not be taken into account.
(9) Notwithstanding any other provision of law, if a credit is allowed
under this subsection for a renewable energy system with respect to  any
property, the increase in the basis of such property which would but for
this  subsection  result  from  such expenditure shall be reduced by the
amount of the credit allowed. When the sale or other disposition of such
property results  in  the  nonrecognition  of  gain  under  section  one
thousand  thirty-four  of  the  internal  revenue code, a like reduction
shall be made to the basis of the new residence, if  such  residence  is
located within the state.
(g-1) Solar energy system equipment credit. (1) General. An individual
taxpayer  shall  be  allowed  a  credit  against the tax imposed by this
article equal to twenty-five percent of qualified  solar  energy  system
equipment  expenditures,  except  as  provided  in  subparagraph  (D) of
paragraph two of this subsection. This credit  shall  not  exceed  three
thousand   seven  hundred  fifty  dollars  for  qualified  solar  energy
equipment placed in service before September first,  two  thousand  six,

and five thousand dollars for qualified solar energy equipment placed in
service on or after September first, two thousand six.
(2) Qualified solar energy system equipment expenditures. (A) The term
"qualified   solar   energy   system   equipment   expenditures"   means
expenditures for:
(i) the purchase of solar energy system equipment which  is  installed
in  connection  with  residential  property which is (I) located in this
state and (II) which is used by the taxpayer as  his  or  her  principal
residence  at  the  time  the solar energy system equipment is placed in
service;
(ii) the lease of  solar  energy  system  equipment  under  a  written
agreement  that spans at least ten years where such equipment owned by a
person  other  than  the  taxpayer  is  installed  in  connection   with
residential  property  which is (I) located in this state and (II) which
is used by the taxpayer as his or her principal residence  at  the  time
the solar energy system equipment is placed in service; or
(iii)  the  purchase  of power under a written agreement that spans at
least ten years whereunder the power purchased  is  generated  by  solar
energy  system equipment owned by a person other than the taxpayer which
is installed in  connection  with  residential  property  which  is  (I)
located  in  this state and (II) which is used by the taxpayer as his or
her principal residence at the time the solar energy system equipment is
placed in service.
(B)  Such  qualified  expenditures  shall  include  expenditures   for
materials,  labor  costs  properly  allocable  to  on-site  preparation,
assembly  and  original  installation,  architectural  and   engineering
services,  and designs and plans directly related to the construction or
installation of the solar energy system equipment.
(C) Such qualified expenditures  for  the  purchase  of  solar  energy
system equipment shall not include interest or other finance charges.
(D)  Such  qualified expenditures for the lease of solar energy system
equipment or the purchase of  power  under  an  agreement  described  in
clauses  (ii)  or  (iii)  of  subparagraph  (A)  of this paragraph shall
include an amount equal to all payments made  during  the  taxable  year
under  such  agreement.  Provided,  however,  such credits shall only be
allowed for fourteen years after the first taxable year  in  which  such
credit  is  allowed.  Provided further, however, the twenty-five percent
limitation in paragraph one of this subsection shall only apply  to  the
total  aggregate  amount  of  all  payments  to  be  made pursuant to an
agreement referenced in clauses (ii) or (iii)  of  subparagraph  (A)  of
this paragraph, and shall not apply to individual payments made during a
taxable  year  under such agreement except to the extent such limitation
on an aggregate basis has been reached.
(3) Solar energy system  equipment.  The  term  "solar  energy  system
equipment"  shall  mean  an  arrangement  or  combination  of components
utilizing  solar  radiation,  which,  when  installed  in  a  residence,
produces  energy  designed  to  provide  heating,  cooling, hot water or
electricity for use in such residence. Such  arrangement  or  components
shall  not  include equipment connected to solar energy system equipment
that is a component of part or parts of a  non-solar  energy  system  or
which  uses  any sort of recreational facility or equipment as a storage
medium. Solar energy system equipment that generates electricity for use
in a residence must conform to  applicable  requirements  set  forth  in
section  sixty-six-j of the public service law. Provided, however, where
solar  energy  system  equipment  is  purchased  and  installed   by   a
condominium management association or a cooperative housing corporation,
for  purposes  of this subsection only, the term "ten kilowatts" in such
section sixty-six-j shall be read as "fifty kilowatts."
(4)  Multiple  taxpayers.  Where  solar  energy  system  equipment  is
purchased  and  installed in a principal residence shared by two or more
taxpayers, the amount of the credit allowable under this subsection  for
each  such taxpayer shall be prorated according to the percentage of the
total  expenditure for such solar energy system equipment contributed by
each taxpayer.
(5) Proportionate  share.  Where  solar  energy  system  equipment  is
purchased  and  installed  by  a condominium management association or a
cooperative housing corporation, a taxpayer  who  is  a  member  of  the
condominium management association or who is a tenant-stockholder in the
cooperative  housing  corporation may for the purpose of this subsection
claim a proportionate share of the total expense as the expenditure  for
the purposes of the credit attributable to his principal residence.
(6)  Grants. For purposes of determining the amount of the expenditure
incurred in purchasing and installing solar energy system equipment, the
amount of any federal, state or local grant received  by  the  taxpayer,
which  was  used  for the purchase and/or installation of such equipment
and which was not included in the federal gross income of the  taxpayer,
shall not be included in the amount of such expenditures.
(7)  When  credit  allowed.  The  credit  provided for herein shall be
allowed with respect to the  taxable  year,  commencing  after  nineteen
hundred  ninety-seven,  in  which  the  solar energy system equipment is
placed in service.
(8) Carryover of credit. If the amount of the credit,  and  carryovers
of  such  credit,  allowable  under this subsection for any taxable year
shall exceed the taxpayer's tax for such year, such excess amount may be
carried over to the five taxable years next following the  taxable  year
with respect to which the credit is allowed and may be deducted from the
taxpayer's tax for such year or years.
(g-2)  Fuel  cell  electric generating equipment credit.  (1) General.
For taxable years beginning before January first, two thousand nine,  an
individual taxpayer shall be allowed a credit against the tax imposed by
this  article  equal  to  twenty percent of qualified fuel cell electric
generating equipment expenditures. This  credit  shall  not  exceed  one
thousand  five  hundred  dollars per generating unit with respect to any
taxable year. The credit provided  for  herein  shall  be  allowed  with
respect  to  the taxable year in which the fuel cell electric generating
equipment is placed in service.
(2) Qualified fuel cell electric  generating  equipment  expenditures.
(A)  Qualified  fuel cell electric generating equipment expenditures are
the  costs,  incurred  on  or  after  July  first,  two  thousand  five,
associated  with  the purchase of on-site electricity generation systems
utilizing  proton  exchange  membrane  fuel  cells,  providing  a  rated
baseload  capacity  of  no  less  than one kilowatt and no more than one
hundred kilowatts of electricity, which are located in this state at the
time the qualified fuel cell electric generating equipment is placed  in
service.
(B)  Qualified  fuel  cell  electric generating equipment expenditures
shall also include costs, incurred on or after July first, two  thousand
five,  for  materials,  labor  for  on-site  preparation,  assembly  and
original installation, engineering services, designs and plans  directly
related to construction or installation and utility compliance costs.
(C)  Such  qualified  expenditures shall not include interest or other
finance charges.
(3) Multiple taxpayers. Where fuel cell electric generating  equipment
is  purchased  and  installed  in a principal residence shared by two or
more taxpayers, the amount of the credit allowable under this subsection
for each such taxpayer shall be prorated according to the percentage  of

the  total  expenditure for such fuel cell electric generating equipment
contributed by each taxpayer.
(4)  Grants. For purposes of determining the amount of the expenditure
incurred in purchasing and  installing  fuel  cell  electric  generating
equipment,  the  amount of any federal, state or local grant received by
the taxpayer, which was used for the  purchase  and/or  installation  of
such equipment and which was not included in the federal gross income of
the taxpayer, shall not be included in the amount of such expenditures.
(5)  Carryover  of credit. If the amount of the credit, and carryovers
of such credit, allowable under this subsection  for  any  taxable  year
shall exceed the taxpayer's tax for such year, such excess amount may be
carried  over  to the five taxable years next following the taxable year
with respect to which the credit is allowed and may be deducted from the
taxpayer's tax for such year or years.
(g-4) Geothermal energy systems credit.  (1)  General.  An  individual
taxpayer  shall  be  allowed  a  credit  against the tax imposed by this
article equal to twenty-five  percent  of  qualified  geothermal  energy
system expenditures, except as provided in subparagraph (D) of paragraph
two of this subsection, not to exceed five thousand dollars.
(2)  Qualified  geothermal  energy  systems expenditures. (A) The term
"qualified geothermal energy  system  expenditures"  means  expenditures
for:
(i)  the  purchase  of  geothermal  energy  system  equipment which is
installed in connection with residential property which is  (I)  located
in this state and (II) which is the taxpayer's residence at the time the
geothermal energy system is placed in service; or
(ii)  the  lease of geothermal energy system equipment under a written
agreement that spans at least ten years where such equipment owned by  a
person   other  than  the  taxpayer  is  installed  in  connection  with
residential property which is (I) located in this state and  (II)  which
is  the  taxpayer's  residence  at the time the geothermal energy system
equipment is placed in service.
(B)  Such  qualified  expenditures  shall  include  expenditures   for
materials,  labor  costs  properly  allocable  to  on-site  preparation,
assembly  and  original  installation,  architectural  and   engineering
services,  and designs and plans directly related to the construction or
installation of the geothermal energy system equipment.
(C) Such qualified expenditures for the purchase of geothermal  energy
system  equipment shall not include interest or other finance charges or
costs that have been used to qualify for any other credit.
(D) Such qualified expenditures for the  lease  of  geothermal  energy
system  equipment  under  an  agreement  described  in  clause  (ii)  of
subparagraph (A) of this paragraph shall include an amount equal to  all
payments  made  during  the taxable year under such agreement. Provided,
however, such credits shall only be allowed for fourteen years after the
first taxable year in which such credit is  allowed.  Provided  further,
however,  the  twenty-five  percent  limitation in paragraph one of this
subsection shall only  apply  to  the  total  aggregate  amount  of  all
payments  to  be made pursuant to an agreement referenced in clause (ii)
of subparagraph (A) of this paragraph, and shall not apply to individual
payments made during a taxable year under such agreement except  to  the
extent such limitation on an aggregate basis has been reached.
(3)  Geothermal  energy  system equipment. The term "geothermal energy
system equipment" shall mean a system whose original use begins with the
taxpayer; which meets the eligibility criteria, if  any,  prescribed  by
the  department; and which is a ground coupled solar thermal system that
utilizes the solar thermal energy stored in the ground or in  bodies  of

water  to produce heat, and which is commonly known as or referred to as
a ground source heat pump system.
(4)  Multiple  taxpayers.  Where geothermal energy system equipment is
purchased and installed in a residence shared by two or more  taxpayers,
the  amount  of the credit allowable under this subsection for each such
taxpayer shall be prorated according to  the  percentage  of  the  total
expenditure  for  such geothermal energy system equipment contributed by
each taxpayer.
(5) Proportionate share. Where geothermal energy system  equipment  is
purchased  and  installed  by  a condominium management association or a
cooperative housing corporation, a taxpayer  who  is  a  member  of  the
condominium management association or who is a tenant-stockholder in the
cooperative  housing  corporation may for the purpose of this subsection
claim a proportionate share of the total expense as the expenditure  for
the purposes of the credit attributable to the taxpayer's residence.
(6)  Grants. For purposes of determining the amount of the expenditure
incurred  in  purchasing  and  installing   geothermal   energy   system
equipment,  the  amount of any federal, state or local grant received by
the taxpayer, which was used for the  purchase  and/or  installation  of
such equipment and which was not included in the federal gross income of
the taxpayer, shall not be included in the amount of such expenditures.
(7) Limitation. The credit shall only be allowed for geothermal energy
system  equipment installed in connection with residential property used
exclusively for personal purposes by the taxpayer. No  credit  shall  be
allowed  for  geothermal energy system equipment installed in connection
with residential property that is rented at any time during the  taxable
year for which the credit is being claimed.
(8)  When  credit  allowed.  The  credit  provided for herein shall be
allowed with respect to the taxable year in which the geothermal  energy
system  equipment  is  placed  in  service and shall be allowed only for
geothermal energy system equipment placed  into  service  after  January
first, two thousand twenty-two. However, the taxpayer shall be allowed a
credit for only one such system in any taxable year.
(9)  Carryover  of credit. If the amount of the credit, and carryovers
of such credit, allowable under this subsection  for  any  taxable  year
shall exceed the taxpayer's tax for such year, such excess amount may be
carried  over  to the five taxable years next following the taxable year
with respect to which the credit is allowed and may be deducted from the
taxpayer's tax for such year or years.
(h) Research and development  tax  credit.
(1)  For  taxable  years
commencing  prior  to  January  first,  nineteen hundred eighty-seven, a
taxpayer shall be allowed a credit  against  the  tax  imposed  by  this
article  after allowance of any other credit provided under this section
and any credits permitted under sections six hundred twenty, six hundred
twenty-one and six hundred thirty-five of this article.  The  amount  of
the  credit  shall be ten percent of the cost or other basis for federal
income tax purposes of tangible personal property,  including  buildings
and other structural components of buildings, described in paragraph two
of  this  subsection  acquired, constructed or reconstructed, or erected
after June thirtieth, nineteen hundred eighty-two.
(2) A credit shall be allowed  under  this  section  with  respect  to
tangible  personal  property  and  other  tangible  property,  including
buildings and structural components of buildings which are:  depreciable
pursuant  to  section  one  hundred  sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one  hundred  seventy-nine  (d)  of  the  internal
revenue  code, have a situs in this state and are used or are to be used
for  purposes  of  research  and  development  in  the  experimental  or

laboratory  sense.  Such  purposes  shall  not  be deemed to include the
ordinary testing or inspection of  materials  or  products  for  quality
control,  efficiency  surveys,  management  studies,  consumer  surveys,
advertising,  promotions,  or  research  in  connection  with  literary,
historical or similar projects.
(3) A taxpayer shall not be allowed a  credit  under  this  subsection
with respect to any property described in paragraphs one and two of this
subsection,  if  such  property  qualifies  for the modification allowed
under either paragraph three or paragraph  four  of  subsection  (g)  of
section  six  hundred  twelve whether or not such amount shall have been
subtracted, or if a credit is taken pursuant to subsection (a)  of  this
section.  Provided,  however,  with  respect to property which qualifies
under either clause (A), (B) or (C) of paragraph four of subsection  (g)
because  such  property  was ordered on or before December thirty-first,
nineteen hundred sixty-eight, but with respect to which  no  expenditure
has  been  paid  or  incurred  at  such  date, the taxpayer may elect to
subtract the amount allowable under clause (A), (B) or (C) or  may  take
the credit provided by this subsection, but not both.
(4)  A  taxpayer  shall  not be allowed a credit under this subsection
with respect to tangible personal property and other tangible  property,
including  buildings  and  structural  components of buildings, which it
leases to any other person or corporation. For purposes of the preceding
sentence, any contract or agreement to lease or rent or for a license to
use such property shall be considered a  lease.  Provided,  however,  in
determining  whether  a  taxpayer  shall  be allowed a credit under this
subsection with respect to such property, any election made with respect
to such property pursuant  to  the  provisions  of  paragraph  eight  of
subsection  (f)  of  section  one  hundred  sixty-eight  of the internal
revenue code, as such paragraph was in  effect  for  agreements  entered
into  prior  to  January  first,  nineteen hundred eighty-four, shall be
disregarded.
(5) If the amount of credit allowable under this  subsection  for  any
taxable  year  shall exceed the taxpayer's tax for such year, the excess
may be carried over to the following year or years and may  be  deducted
from  the  taxpayer's  tax  for such year or years but in no event shall
such credit be carried over to taxable  years  commencing  on  or  after
January first, nineteen hundred ninety-four.
(6)  (A)  With  respect  to  property which is depreciable pursuant to
section one hundred sixty-seven of the internal revenue code but is  not
subject  to  the  provisions  of section one hundred sixty-eight of such
code, and which is disposed of or ceases to be in qualified use prior to
the end of the taxable year in which the credit  is  to  be  taken,  the
amount of the credit shall be that portion of the credit provided for in
this subsection which represents the ratio which the months of qualified
use  bear  to the months of useful life. If property on which credit has
been taken is disposed of or ceases to be in qualified use prior to  the
end  of its useful life, the difference between the credit taken and the
credit allowed for actual  use  must  be  added  back  in  the  year  of
disposition.  Provided,  however,  if  such  property  is disposed of or
ceases to be in qualified use after it has been  in  qualified  use  for
more  than  twelve  consecutive  years, it shall not be necessary to add
back the credit as provided in this subparagraph. The amount  of  credit
allowed  for  actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to the months
of useful life. For  purposes  of  this  subparagraph,  useful  life  of
property  shall  be  the  same  as  the  taxpayer  uses for depreciation
purposes when computing his federal income tax liability.
(B) Except with respect to that property to which subparagraph (D)  of
this  paragraph applies, with respect to three-year property, as defined
in subsection (e) of section one hundred  sixty-eight  of  the  internal
revenue  code,  which  is  disposed  of or ceases to be in qualified use
prior to the end of the taxable year in which the credit is to be taken,
the  amount  of  the credit shall be that portion of the credit provided
for in this subsection which represents the ratio which  the  months  of
qualified  use  bear to thirty-six. If property on which credit has been
taken is disposed of or ceases to be in qualified use prior to  the  end
of  thirty-six  months,  the difference between the credit taken and the
credit allowed for actual  use  must  be  added  back  in  the  year  of
disposition.  The  amount  of  credit  allowed  for  actual use shall be
determined by multiplying the original credit by  the  ratio  which  the
months of qualified use bear to thirty-six.
(C)  Except with respect to that property to which subparagraph (D) of
this  paragraph  applies,  with  respect  to  property  subject  to  the
provisions  of  section  one hundred sixty-eight of the internal revenue
code other than three-year property as defined in subsection (e) of such
section one hundred sixty-eight, which is disposed of or ceases to be in
qualified use prior to the end of the taxable year in which  the  credit
is  to  be  taken, the amount of the credit shall be that portion of the
credit provided for in this subsection which represents the ratio  which
the  months  of qualified use bear to sixty. If property on which credit
has been taken is disposed of or ceases to be in qualified use prior  to
the end of sixty months, the difference between the credit taken and the
credit  allowed  for  actual  use  must  be  added  back  in the year of
disposition. The amount of  credit  allowed  for  actual  use  shall  be
determined  by  multiplying  the  original credit by the ratio which the
months of qualified use bear to sixty.
(D) With  respect  to  any  property  to  which  section  one  hundred
sixty-eight of the internal revenue code applies, which is a building or
a  structural component of a building and which is disposed of or ceases
to be in qualified use prior to the end of the taxable year in which the
credit is to be taken, the amount of the credit shall be that portion of
the credit provided for in this subsection which  represents  the  ratio
which  the  months  of  qualified use bear to the total number of months
over which the  taxpayer  chooses  to  deduct  the  property  under  the
internal  revenue  code.  If  property on which credit has been taken is
disposed of or ceases to be in qualified use prior to  the  end  of  the
period  over which the taxpayer chooses to deduct the property under the
internal revenue code, the difference between the credit taken  and  the
credit  allowed  for  actual  use  must  be  added  back  in the year of
disposition. Provided, however, if  such  property  is  disposed  of  or
ceases  to  be  in  qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not  be  necessary  to  add
back  the  credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying  the  original
credit  by the ratio which the months of qualified use bear to the total
number of months over which the taxpayer chooses to deduct the  property
under the internal revenue code.
(i) S corporation credits.
(1)  For purposes of determining the application under this section of
the credit provisions enumerated in the following table,  a  shareholder
of a New York S corporation:
(A)  shall  be  treated as the taxpayer with respect to his or her pro
rata share  of  the  corresponding  credit  base  of  such  corporation,
determined  for the corporation's taxable year ending with or within the
shareholder's taxable year and
(B) shall be treated as the owner of a new business  with  respect  to
such  share  if  the corporation qualifies as a new business pursuant to
paragraph (f) of subdivision one of section two hundred  ten-B  of  this
chapter.
 
With respect to the following        The corporation's credit base under
credit under this section:           section two hundred ten-B
of this chapter is:
 
(i) Investment tax credit under      Investment credit base or qualified
subsection (a)                       rehabilitation expenditures under
subdivision one of section
two hundred ten-B
 
(ii) Empire zone investment          Cost or other basis under
tax credit under subsection (j)      subdivision three
of section two hundred ten-B
 
(v) Agricultural property tax        Allowable school district property
credit under subsection (n)          taxes under subdivision eleven of
section two hundred ten-B
 
(vi) Credit for employment of        Qualified first-year wages or
persons with disabilities            qualified second-year wages under
under subsection (o)                 subdivision twelve
of section two hundred ten-B
 
(vii) Employment incentive credit    Applicable investment credit base
under subsection (a-1)               under subdivision two
of section two hundred ten-B
 
(viii) Empire zone employment        Applicable investment credit
incentive credit under subsection    under subdivision four
(j-1)                                of section
two hundred ten-B
 
(ix) Alternative fuels               Amount of credit under subdivision
and electric vehicle                 thirty of section
recharging property                  two hundred ten-B
credit under subsection (p)
 
(x) Qualified emerging technology    Applicable credit base under
company employment credit under      subdivision seven
subsection (q)                       of section two hundred ten-B
 
(xi) Qualified emerging technology   Qualified investments under
company capital tax credit under     subdivision eight
subsection (r)                       of section two hundred ten-B
 
(xii) Credit for purchase of an      Cost of an automated external
automated external defibrillator     defibrillator under subdivision
under subsection (s)                 thirteen of section
two hundred ten-B
 
(xiii) Low-income housing credit     Credit amount under subdivision
under subsection (x)                 fifteen of section
two hundred ten-B

(xv) QEZE credit for real property   Amount of credit under subdivision
taxes under subsection (bb)          five of
section two hundred ten-B
 
(xvi) QEZE tax reduction credit      Amount of benefit period factor,
under subsection (cc)                employment increase factor and zone
allocation factor (without regard
to pro ration) under subdivision
six of
section two hundred ten-B
and amount
of tax factor as determined under
subdivision (f) of section sixteen
 
(xvii) Green building credit under   Amount of green building credit
subsection (y)                       under subdivision sixteen
of section two
hundred ten-B
 
(xviii) Credit for long-term care    Qualified costs under subdivision
insurance premiums under subsection  fourteen
(aa)                                 of section two hundred ten-B
 
(xix) Brownfield redevelopment       Amount of credit under subdivision
credit under subsection (dd)         seventeen
of section two hundred
ten-B
 
(xx) Remediated brownfield credit    Amount of credit under subdivision
for real property taxes for          eighteen
qualified sites under subsection     of section two hundred
(ee)                                 ten-B
 
(xxi) Environmental remediation      Amount of credit under subdivision
insurance credit under subsection    nineteen
(ff)                                 of section two hundred ten-B
 
(xxii) Empire state film             Amount of credit for qualified
production credit under              production costs in production of a
subsection (gg)                      qualified film under subdivision
twenty of
section two hundred ten-B
 
(xxiv) Security training tax credit  Amount of credit under subdivision
under subsection (ii)                twenty-one
of section two hundred ten-B
 
(xxvi) Empire state commercial       Amount of credit for qualified
production credit under subsection   production costs in production of
(jj)                                 a qualified commercial under
subdivision twenty-three of
section two hundred ten-B
 
(xxvii) Biofuel production tax       Amount of credit under subdivision
credit under subsection (jj)         twenty-four
of section two hundred ten-B
 
(xxviii) Clean heating fuel credit   Amount of credit under subdivision

under subsection (mm)                twenty-five of
section two hundred ten-B
 
(xxix) Credit for rehabilitation     Amount of credit under subdivision
of historic properties under         twenty-six of
subsection (oo)                      section two hundred ten-B
 
* (xxxi) Excelsior jobs program tax  Amount of credit under subdivision
credit under subsection (qq)         thirty-one of
section two hundred ten-B
* NB There are 2 clause (xxxi)'s
 
* (xxxi) Empire state film           Amount of credit for
post production credit under         qualified post production
subsection (qq)                      costs of a qualified film
under subdivision thirty-two
of section two hundred ten-B
* NB There are 2 clause (xxxi)'s
 
* (xxxii) Economic transformation    Amount of credit under subdivision
and facility redevelopment credit    thirty-five
of section two hundred ten-B
* NB Repealed December 31, 2026
 
* (xxxiii) New York youth jobs       Amount of credit under
program tax credit                   subdivision thirty-six
of section two hundred ten-B
* NB There are 3 clause (xxxiii)'s
 
* (xxxiii) Empire state jobs         Amount of credit under
retention program credit             subdivision thirty-seven
of section two hundred ten-B
* NB There are 3 clause (xxxiii)'s
 
* (xxxiii) Credit for companies who  Amount of credit under
provide transportation to            subdivision thirty-eight
individuals with disabilities        of section
under subsection (tt)                two hundred ten-B
* NB Repealed December 31, 2028
* NB There are 3 clause (xxxiii)'s
 
(xxxiv) Alcoholic beverage           Amount of credit
production credit under              under subdivision thirty-nine of
subsection (uu)                      section two hundred ten-B
 
* (xxxv) Hire a vet credit           Amount of credit under subdivision
under subsection (a-2)               twenty-nine
of section two hundred ten-B
* NB There are 2 clause (xxxv)'s
 
* (xxxv) Minimum wage reimbursement  Amount of credit under subdivision
credit under subsection (aaa)        forty of section two hundred
ten-B
* NB There are 2 clause (xxxv)'s
 
(xxxvi) Tax-free NY area tax         Amount of credit under
elimination credit                   subdivision forty-one
of section two hundred ten-B

(xxxvii) Real property tax           Amount of credit under
credit for manufacturers             subdivision
under subsection (xx)                forty-three of section
two hundred ten-B
 
(xxxviii) Tax-free NY area           Amount of credit under
excise tax on                        subdivision
telecommunications services          forty-four of section
credit under subsection (yy)         two hundred ten-B
 
** (xxxix) Musical and theatrical    Amount of credit for
production credit under              the sum of the qualified
subsection (u)                       production expenditures and
the transportation expenditures
in a qualified musical and
theatrical production under
subdivision forty-seven of
section two hundred ten-B
** NB Repealed January 1, 2026
(xl) Workers with disabilities       Amount of
tax credit under subsection (zz)     credit under subdivision
forty-eight of section two
hundred ten-B
 
(xli) Farm workforce retention       Amount of credit under
credit under subsection (fff)        subdivision fifty-one of
section two hundred ten-B
 
(xlii) Employee training incentive   Amount of credit under
program credit under                 subdivision fifty of
subsection (ddd)                     section two hundred ten-B
 
* (xliii) Life sciences research     Amount of credit under
and development tax credit under     subdivision fifty-two of
subsection (hhh)                     section two hundred ten-B
* NB There are 3 clause (xliii)'s
 
* (xliii) Empire state apprentice-   Amount of credit under
ship tax credit under subsection     subdivision forty-nine of
(vvv)                                section two hundred ten-B
* NB There are 3 clause (xliii)'s
* (xliii) Farm donations to food     Amount of credit under
pantries credit under subsection     subdivision fifty-two of
(n-2)                                section two hundred ten-B
* NB There are 3 clause (xliii)'s
* (xliv) Employer-provided child     Amount of credit under subdivision
care credit (jjj)                    fifty-three of section two hundred
ten-B
* NB There are 2 clause (xliv)'s
* (xliv) Recovery tax credit under   Amount of credit under
subsection (jjj)                     subdivision fifty-three of
section two hundred ten-B
* NB There are 2 clause (xliv)'s
* (xlv) Television writers'          Amount of credit for the sum of
and directors' fees and salaries     qualified television writers' and
credit under subsection (v)          directors' salaries credit
under subdivision fifty-four of
section two hundred ten-B
* NB  Effective  on  the first of January next succeeding the date the
department of economic development provides notice  to  the  legislative
bill  drafting commission of a determination pursuant to § 6 sb 2 (b) of
chapter 683 of 2019
 
(xlvi) Empire state digital          Amount of credit
gaming media production              under subdivision
credit under subsection (nnn)        fifty-five of section
two hundred ten-B
 
(xlvii) Restaurant return-to-work    Amount of credit under
tax credit                           subdivision fifty-six of
section two hundred ten-B
* (xlviii) New York city musical     Amount of credit under
and theatrical production            subdivision fifty-seven of
tax credit                           section two hundred ten-B
* NB Repealed January 1, 2026
* (xlix) Farm employer overtime      Amount of credit under
credit under subsection (nnn)        subdivision fifty-eight of
section two hundred ten-B
* NB There are 4 clause (xlix)'s
* (xlix) COVID-19 capital costs      Amount of credit under
tax credit under subsection (nnn)    subdivision 58 of
section two hundred ten-B
* NB There are 4 clause (xlix)'s
* (xlix) Grade no. 6 heating oil     Amount of credit under subdivision
conversion tax credit under          fifty-eight of section two hundred
subsection (nnn)                     ten-B
* NB There are 4 clause (xlix)'s
* (xlix) Additional restaurant       Amount of credit under
return-to-work credit                subdivision fifty-six-a of
section two hundred ten-B
* NB There are 4 clause (xlix)'s
(l) Child care creation and          Amount of credit
expansion tax credit under           under subdivision fifty-nine
subsection (ooo)                     of section two hundred
ten-B
* (li) Newspaper and broadcast       Amount of credit under subdivision
media jobs tax credit under          sixty of section two hundred ten-B
subsection (ppp)
* NB There are 2 clause (li)'s
* (li) Commercial security tax       Amount of credit under
credit under subsection (ppp)        subdivision sixty of
section two hundred ten-B
* NB There are 2 clause (li)'s
(2)  The  reduction  of  a shareholder's proportionate interest in the
corporation shall be treated as a disposition of property  for  which  a
redetermination of credit is required under subsections (a), (j) and (l)
of this section.
(3)  Transition  provisions  relating to S corporation credits allowed
for taxable years beginning before nineteen hundred  ninety-four.
(A)
Credit  carryover. Any excess credit under subparagraph (A) of paragraph
one of this subsection, as it was in effect for taxable years  beginning
before  nineteen  hundred  ninety-four,  may  be  carried  over  to  the
shareholder's following year or years and  may  be  deducted  from  such
shareholder's  tax for such year or years, except that any excess credit
attributable to subdivision one of section two  hundred  ten-B  of  this

chapter  shall  in no event be carried over beyond the ten taxable years
next following the taxable year of origin.
(B)  Credit  recapture. Any redetermination of credit required by this
subsection as it was  in  effect  for  taxable  years  beginning  before
nineteen hundred ninety-four, upon disposition or cessation of qualified
use  of  property  pursuant  to  paragraph  (e)  of  subdivision one, or
paragraph (f) of subdivision three of section two hundred ten-B of  this
chapter  shall  be attributed in pro rata shares to the shareholders who
were allowed credit under this subsection with respect to such property,
and the reduction of a shareholder's proportionate stock interest  shall
be  treated  as a disposition of property for which a redetermination of
credit  under  such  paragraphs  is  required  with  respect   to   such
shareholder.
(4)  Transition  provisions  relating to credit for special additional
mortgage recording tax. In the case of the special  additional  mortgage
recording  tax  credit,  in  addition  to  any  carryover  thereof under
paragraph three of this subsection (relating to carryover  from  taxable
years of the shareholder beginning before nineteen hundred ninety-four),
there  also shall be allowed a credit for such tax which is due and paid
by an S corporation in a taxable year of the  corporation  beginning  in
nineteen  hundred ninety-three, which year ends within the shareholder's
taxable year beginning in nineteen hundred ninety-four. Any such credit,
and  carryover  thereof,  shall  be  allowed  as  provided  under   this
subsection  as  it  was  in  effect  for  taxable years beginning before
nineteen hundred ninety-four.
(j) Empire zone investment tax credit (EZ-ITC). (1) A  taxpayer  shall
be allowed a credit, to be computed as hereinafter provided, against the
tax  imposed  by  this  article  where  the  taxpayer has been certified
pursuant to article eighteen-B of the general municipal law. The  amount
of  such  credit  shall  be eight percent of the cost or other basis for
federal income tax purposes of  tangible  personal  property  and  other
tangible  property,  including  buildings  and  structural components of
buildings, described in paragraph  two  of  this  subsection,  which  is
located  within  an  empire  zone designated as such pursuant to article
eighteen-B of such law,  but  only  if  the  acquisition,  construction,
reconstruction or erection of such property occurred or was commenced on
or  after  the  date  of  such  designation  and prior to the expiration
thereof.  Provided,  however,  that  in  the  case  of  an  acquisition,
construction, reconstruction or erection which was commenced during such
period  and  continued  or  completed  subsequently, the credit shall be
eight percent of the portion of the cost  or  other  basis  for  federal
income  tax purposes attributable to such period, which portion shall be
ascertained by  multiplying  such  cost  or  basis  by  a  fraction  the
numerator  of  which  shall  be the expenditures paid or incurred during
such period for such purposes and the denominator of which shall be  the
total  of  all  expenditures  paid  or  incurred  for  such acquisition,
construction, reconstruction or erection.
(2) A credit shall be allowed under this subsection  with  respect  to
tangible  personal  property  and  other  tangible  property,  including
buildings  and  structural  components  of  buildings  which:  (A)   are
depreciable  pursuant to section one hundred sixty-seven of the internal
revenue code, (B) have a useful life of four  years  or  more,  (C)  are
acquired  by purchase as defined in section one hundred seventy-nine (d)
of the internal revenue code,  (D)  have  a  situs  in  an  empire  zone
designated  as  such  pursuant  to  article  eighteen-B  of  the general
municipal law, and (E) are (i) principally used by the taxpayer  in  the
production  of goods by manufacturing, processing, assembling, refining,
mining, extracting, farming,  agriculture,  horticulture,  floriculture,

viticulture  or  commercial  fishing,  (ii)  industrial  waste treatment
facilities or air pollution control facilities used  in  the  taxpayer's
trade  or  business,  (iii)  research  and  development  property,  (iv)
principally  used  in  the  ordinary  course  of the taxpayer's trade or
business as a broker or dealer in connection with the purchase  or  sale
(which  shall include but not be limited to the issuance, entering into,
assumption, offset, assignment, termination,  or  transfer)  of  stocks,
bonds   or   other   securities  as  defined  in  section  four  hundred
seventy-five (c)(2) of the Internal Revenue Code, or of  commodities  as
defined in section four hundred seventy-five (e) of the Internal Revenue
Code,  or  (v) principally used in the ordinary course of the taxpayer's
trade or business  of  providing  investment  advisory  services  for  a
regulated  investment  company  as  defined  in  section  eight  hundred
fifty-one of the Internal Revenue Code, or lending, loan arrangement  or
loan  origination  services to customers in connection with the purchase
or sale (which shall  include  but  not  be  limited  to  the  issuance,
entering into, assumption, offset, assignment, termination, or transfer)
of  securities as defined in section four hundred seventy-five (c)(2) of
the Internal Revenue Code. For purposes of clauses (iv) and (v) of  this
subparagraph,  property  purchased  by  a  taxpayer  affiliated  with  a
regulated broker, dealer or registered investment adviser is  allowed  a
credit  under  this subsection if the property is used by its affiliated
regulated broker, dealer or registered investment adviser in  accordance
with  this  subsection.  For  purposes of determining if the property is
principally used in qualifying uses, the uses by the taxpayer  described
in  clauses  (iv)  and  (v)  of  this subparagraph may be aggregated. In
addition, the uses by the taxpayer,  its  affiliated  regulated  broker,
dealer,  and registered investment adviser under either or both of those
clauses may be aggregated. Provided, however, a taxpayer  shall  not  be
allowed the credit provided by clauses (iv) and (v) of this subparagraph
unless  (I)  eighty  percent  or  more  of  the employees performing the
administrative and support functions resulting from or  related  to  the
qualifying uses of such equipment are located in this state, or (II) the
average  number of employees that perform the administrative and support
functions resulting from or related  to  the  qualifying  uses  of  such
equipment  and  are  located  in  this state during the taxable year for
which the credit is claimed is equal  to  or  greater  than  ninety-five
percent  of the average number of employees that perform these functions
and are located in this state during the thirty-six  months  immediately
preceding  the year for which the credit is claimed, or (III) the number
of employees located in this state during the taxable year for which the
credit is claimed is equal to or greater  than  ninety  percent  of  the
number  of  employees  located  in  this state on December thirty-first,
nineteen hundred ninety-eight or, if the taxpayer  was  not  a  calendar
year  taxpayer  in  nineteen  hundred  ninety-eight, the last day of its
first taxable year ending after December thirty-first, nineteen  hundred
ninety-eight. If the taxpayer becomes subject to tax in this state after
the  taxable  year  beginning in nineteen hundred ninety-eight, then the
taxpayer is not required to satisfy the employment test provided in  the
preceding  sentence of this subparagraph for its first taxable year. For
purposes of clause (III) of this subparagraph, the employment test  will
be  based  on  the number of employees located in this state on the last
day of the first taxable year the taxpayer is subject  to  tax  in  this
state.  If  the  uses  of  the  property must be aggregated to determine
whether the property is principally used in qualifying uses, then either
each affiliate using the property must satisfy this employment  test  or
this  employment  test  must be satisfied through the aggregation of the
employees of the taxpayer, its affiliated regulated broker, dealer,  and

registered  investment  adviser using the property. For purposes of this
subsection, the term "goods" shall not include electricity. For purposes
of this paragraph, manufacturing shall mean the process of  working  raw
materials  into  wares  suitable  for use or which gives new shapes, new
quality or new combination to matter which already has gone through some
artificial process by the use of machinery, tools, appliances and  other
similar  equipment.  Property  used  in  the  production  of goods shall
include  machinery,  equipment  or  other  tangible  property  which  is
principally used in the repair and service of other machinery, equipment
or  other  tangible property used principally in the production of goods
and shall include all  facilities  used  in  the  production  operation,
including  storage  of  material  to  be  used  in production and of the
products that are produced. For purposes of this  paragraph,  the  terms
"research   and   development  property",  "industrial  waste  treatment
facilities", and "air  pollution  control  facilities"  shall  have  the
meanings ascribed thereto by clauses (ii), (iii) and (iv), respectively,
of  subparagraph (B) of paragraph two of subsection (a) of this section,
and the provisions of subparagraph  (C)  of  such  paragraph  two  shall
apply.
(3)  A  taxpayer  shall  not be allowed a credit under this subsection
with respect to  any  tangible  personal  property  and  other  tangible
property,  including  buildings  and structural components of buildings,
which it leases to any  other  person  or  corporation  except  where  a
taxpayer  leases  property to an affiliated regulated broker, dealer, or
registered investment adviser that uses such property in accordance with
clause (iv) or  (v)  of  subparagraph  (E)  of  paragraph  two  of  this
subsection.  For  purposes  of  the  preceding sentence, any contract or
agreement to lease or rent or for a license to use such  property  shall
be  considered  a  lease.  Provided,  however,  in determining whether a
taxpayer shall be allowed a credit under this subsection with respect to
such property, any election made with respect to such property  pursuant
to  the  provisions  of paragraph eight of subsection (f) of section one
hundred sixty-eight of the internal revenue code, as such paragraph  was
in  effect  for agreements entered into prior to January first, nineteen
hundred eighty-four, shall be disregarded.
(4) If the amount of credit allowed  under  this  subsection  for  any
taxable  year  shall exceed the taxpayer's tax for such year, the excess
may be carried over to the following year or years and may  be  deducted
from the taxpayer's tax for such year or years. In lieu of carrying over
any  such excess, a taxpayer who qualifies as an owner of a new business
for purposes of paragraph ten of subsection (a) of this section may,  at
his option, receive fifty percent of such excess as a refund. Any refund
paid  pursuant  to  this  paragraph shall be deemed to be a refund of an
overpayment of tax as provided in section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(4-a) Any carry over of a credit from prior taxable years will not  be
allowed  if  an empire zone retention certificate is not issued pursuant
to subdivision (w) of section nine hundred  fifty-nine  of  the  general
municipal  law  to  the empire zone enterprise which is the basis of the
credit.
(5) At the option of the taxpayer,  air  or  water  pollution  control
facilities which qualify for elective modifications under subsection (h)
of  section  six  hundred twelve, or research and development facilities
which qualify for elective modification under paragraphs three and  four
of  subsection  (g)  of  section  six  hundred twelve, or property which
qualifies for the credit provided under subsection (a) or  (h)  of  this
section  may  be treated as property principally used by the taxpayer in
the  production  of  goods  by  manufacturing,  processing,  assembling,

mining,   refining,   extracting,  farming,  agriculture,  horticulture,
floriculture, viticulture, or commercial fishing, provided the  property
otherwise  qualifies  under  paragraph  two of this subsection, in which
event a deduction shall not be allowed under such subsection (h) or such
paragraphs  three  and  four of subsection (g) and a credit shall not be
allowed under such subsection (a) or (h).
(6) (A) With respect to property  which  is  depreciable  pursuant  to
section  one hundred sixty-seven of the internal revenue code but is not
subject to the provisions of section one  hundred  sixty-eight  of  such
code  and which is disposed of or ceases to be in qualified use prior to
the end of the taxable year in which the credit  is  to  be  taken,  the
amount of the credit shall be that portion of the credit provided for in
this  section  which  represents the ratio which the months of qualified
use bear to the months of useful life. If the property on  which  credit
has  been taken is disposed of or ceases to be in qualified use prior to
the end of its useful life, the difference between the credit taken  and
the  credit  allowed  for  actual  use must be added back in the year of
disposition. Provided, however, if  such  property  is  disposed  of  or
ceases  to  be  in  qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not  be  necessary  to  add
back  the  credit  as  provided in this subsection. The amount of credit
allowed for actual use shall be determined by multiplying  the  original
credit by the ratio which the months of qualified use bear to the months
of useful life. For purposes of this subsection, useful life of property
shall  be  the  same as the taxpayer uses for depreciation purposes when
computing his federal income tax liability.
(B) Except with respect to that property to which subparagraph (D)  of
this  paragraph applies, with respect to three-year property, as defined
in subsection (e) of section one hundred  sixty-eight  of  the  internal
revenue  code,  which  is  disposed  of or ceases to be in qualified use
prior to the end of the taxable year in which the credit is to be taken,
the amount of the credit shall be that portion of  the  credit  provided
for  in  this  subsection which represents the ratio which the months of
qualified use bear to thirty-six. If property on which credit  has  been
taken  is  disposed of or ceases to be in qualified use prior to the end
of thirty-six months, the difference between the credit  taken  and  the
credit  allowed  for  actual  use  must  be  added  back  in the year of
disposition. The amount of  credit  allowed  for  actual  use  shall  be
determined  by  multiplying  the  original credit by the ratio which the
months of qualified use bear to thirty-six.
(C) Except with respect to that property to which subparagraph (D)  of
this  paragraph  applies,  with  respect  to  property  subject  to  the
provisions of section one hundred sixty-eight of  the  internal  revenue
code other than three-year property as defined in subsection (e) of such
section  one  hundred  sixty-eight of the internal revenue code which is
disposed of or ceases to be in qualified use prior to  the  end  of  the
taxable  year  in  which  the  credit  is to be taken, the amount of the
credit shall be  that  portion  of  the  credit  provided  for  in  this
subsection  which represents the ratio which the months of qualified use
bear to sixty. If property on which credit has been taken is disposed of
or ceases to be in qualified use prior to the end of sixty  months,  the
difference  between  the  credit taken and the credit allowed for actual
use must be added back in the year of disposition. The amount of  credit
allowed  for  actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to sixty.
(D) With  respect  to  any  property  to  which  section  one  hundred
sixty-eight of the internal revenue code applies, which is a building or
a  structural component of a building and which is disposed of or ceases

to be in qualified use prior to the end of the taxable year in which the
credit is to be taken, the amount of the credit shall be that portion of
the credit provided for in this subsection which  represents  the  ratio
which  the  months  of  qualified use bear to the total number of months
over which the  taxpayer  chooses  to  deduct  the  property  under  the
internal  revenue  code.  If  property on which credit has been taken is
disposed of or ceases to be in qualified use prior to  the  end  of  the
period  over which the taxpayer chooses to deduct the property under the
internal revenue code, the difference between the credit taken  and  the
credit  allowed  for  actual  use  must  be  added  back  in the year of
disposition. Provided, however, if  such  property  is  disposed  of  or
ceases  to  be  in  qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not  be  necessary  to  add
back  the  credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying  the  original
credit  by the ratio which the months of qualified use bear to the total
number of months over which the taxpayer chooses to deduct the  property
under the internal revenue code.
(E) For purposes of this paragraph, disposal or cessation of qualified
use  shall  not  be  deemed  to  have  occurred  solely by reason of the
termination or expiration of an empire zone's designation as such.
(F)(i) For purposes  of  this  paragraph,  the  decertification  of  a
business  enterprise  with  respect to an empire zone shall constitute a
disposal or cessation of qualified use of  the  property  on  which  the
credit   was   taken   which  is  located  in  the  zone  to  which  the
decertification applies, on the effective date of such decertification.
(ii) Where a business enterprise  has  been  decertified  based  on  a
finding  pursuant  to  clause  one,  two,  or five of subdivision (a) of
section nine hundred fifty-nine of the general municipal law, the amount
required to be added back by reason of this paragraph shall be augmented
by an amount equal to the product of the amount of credit, with  respect
to property which is disposed of or ceases to be in qualified use, which
was  deducted  from  the taxpayer's tax otherwise due under this article
for all prior taxable years (subject to the  limit  set  forth  in  this
subparagraph)  and  the underpayment rate of interest (without regard to
compounding) set by the commissioner of taxation and finance pursuant to
subdivision (j) of section six hundred ninety-seven of this chapter,  in
effect  on  the last day of the taxable year. The limit shall be (I) the
amount of credit, with respect to the property which is disposed  of  or
ceases  to  be  in qualified use, which was deducted from the taxpayer's
tax otherwise due under  this  article  for  all  prior  taxable  years,
reduced  (but not below zero) by (II) the credit allowed for actual use.
For purposes of this subparagraph, the attribution to specific  property
of  credit  amount  deducted from tax shall be established in accordance
with the date of placement in service of such  property  in  the  empire
zone.
(iii)  In  no event shall the amount of the credit allowed pursuant to
this subsection be rendered, solely by reason  of  clause  (i)  of  this
subparagraph,  less  than the amount of the credit to which the taxpayer
would otherwise be entitled under subsection (a) of this section.
(iv) Notwithstanding any other provision of this  subsection,  in  the
case  of a business enterprise which has been decertified, any amount of
credit allowed with respect to the property of such business  enterprise
located  in  the  zone  to  which  the  decertification applies which is
carried over pursuant to paragraph four of this subsection shall not  be
carried  over beyond the seventh taxable year next following the taxable
year with respect to which the credit provided for  in  this  subsection
was allowed.
(G)  For  purposes  of  this paragraph, where a credit is allowed with
respect to  an  air  pollution  control  facility  on  the  basis  of  a
certificate   of   compliance   issued  pursuant  to  the  environmental
conservation law and the certificate is revoked pursuant to  subdivision
three  of  section  19-0309  of the environmental conservation law, such
revocation shall constitute a disposal or cessation  of  qualified  use,
except with respect to property contained in or comprising such facility
which  is  described in clause (i), (ii) or (iii) of subparagraph (E) of
paragraph two of this subsection other than as part of or comprising  an
air pollution control facility. Also for purposes of this paragraph, the
use  of  an  air  pollution  control  facility  or  an  industrial waste
treatment facility for the primary purpose of salvaging materials  which
are  usable  in  the  manufacturing  process  or  are  marketable  shall
constitute a cessation of qualified use, except with respect to property
contained in or comprising such facility which is  described  in  clause
(i) or (iii) of subparagraph (E) of paragraph two of this subsection.
(H)  Except as provided in this subparagraph, this paragraph shall not
apply to a credit allowed by this subsection to a  taxpayer  that  is  a
partner  in  a  partnership  in  the  case  of  manufacturing  property;
provided, at the time such  property  was  placed  in  service  by  such
partnership  in an empire zone the basis for federal income tax purposes
of such property (or a project that includes such property)  equaled  or
exceeded three hundred million dollars and such partner owned his or her
partnership  interest  for  at  least  three  years  from  the date such
property was placed in  service.  If  such  property  ceases  to  be  in
qualified  use after it is placed in service, this paragraph shall apply
to such partner in the year such property ceases  to  be  in  qualifying
use.
(7)  Notwithstanding  the expiration of the empire zones program under
article eighteen-B of the general municipal  law,  a  taxpayer  that  is
certified as an empire zone business pursuant to such article eighteen-B
on  the  day  immediately  preceding  the  day  the empire zones program
expired shall  continue  to  be  deemed  certified  under  such  article
eighteen-B  for  purposes  of  this  subdivision  until April first, two
thousand fourteen. In addition, the areas designated as empire zones  in
which  the  taxpayer  is certified as an empire zone business on the day
immediately preceding the day the empire  zones  program  expired  shall
continue  to  be  deemed  empire  zones for purposes of this subdivision
until April first, two thousand fourteen.
(j-1) Empire zone employment incentive credit. (1) Where a taxpayer is
allowed a credit under subsection (j)  of  this  section,  the  taxpayer
shall  be  allowed  a credit for each of the three years next succeeding
the taxable year for which the  credit  under  such  subsection  (j)  is
allowed,  with  respect  to  such property, whether or not deductible in
such taxable year or in subsequent taxable years pursuant  to  paragraph
four  of subsection (j) of this section, of thirty percent of the credit
allowable under such subsection (j); provided, however, that the  credit
allowable  under  this  subsection  for  any  taxable year shall only be
allowed if the average number of employees employed by the  taxpayer  in
the  empire  zone,  designated  pursuant  to  article  eighteen-B of the
general municipal law, in which such property  is  located  during  such
taxable  year  is at least one hundred one percent of the average number
of employees employed by the taxpayer in  such  empire  zone  or,  where
applicable,  in the geographic area subsequently constituting such zone,
during the taxable year immediately preceding the taxable year for which
the credit under such subsection (j) is allowed and  provided,  further,
that  in  the  case  of  a new business, the credit allowable under this
subsection for any taxable year shall be allowed if the  average  number

of  employees  employed  in  such empire zone in such taxable year is at
least one hundred one percent of the average number  of  such  employees
during the taxable year in which the credit under such subsection (j) is
allowed.
(2)  The  average  number of employees employed in an empire zone, or,
where applicable, in the geographic area subsequently constituting  such
zone,  in a taxable year shall be computed by ascertaining the number of
such employees within such zone, or, where applicable, in the geographic
area subsequently constituting such zone, employed by  the  taxpayer  on
the  thirty-first day of March, the thirtieth day of June, the thirtieth
day of September and the thirty-first day of  December  in  the  taxable
year,  by adding together the number of employees ascertained in each of
such dates and dividing the sum  so  obtained  by  the  number  of  such
abovementioned dates occurring within the taxable year.
(3)  If  the  amount  of  credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year,  the  excess
may  be  carried over to the following year or years and may be deducted
from the taxpayer's tax for such year or years. In lieu of carrying over
any such excess, a taxpayer who qualified as an owner of a new  business
for  purposes of paragraph ten of subsection (a) of this section may, at
his option, receive fifty percent of such excess as a refund. Any refund
paid pursuant to this paragraph shall be deemed to be  a  refund  of  an
overpayment of tax as provided in section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(3-a)  Any carry over of a credit from prior taxable years will not be
allowed to an empire zone enterprise which is the basis of  the  credit,
if  an  empire  zone  retention certificate is not issued to such entity
pursuant to subdivision (w) of section nine hundred  fifty-nine  of  the
general municipal law.
(4)  Notwithstanding  the expiration of the empire zones program under
article eighteen-B of the general municipal  law,  a  taxpayer  that  is
certified as an empire zone business pursuant to such article eighteen-B
on  the  day  immediately  preceding  the  day  the empire zones program
expired shall continue to be deemed in the  empire  zone  in  which  the
taxpayer was certified as an empire zone business on the day immediately
preceding the day the empire zones program expired for each of the three
years  next  succeeding  the  taxable  year  for  which the credit under
subdivision (j) is allowed.
(k) Empire zone wage tax credit. (1) A taxpayer  shall  be  allowed  a
credit,  to be computed as hereinafter provided, against the tax imposed
by this article, where the  taxpayer  has  been  certified  pursuant  to
article  eighteen-B  of  the  general  municipal law. The amount of such
credit shall be as prescribed in paragraph four of this subsection.
(2) For the purposes of this subsection,  the  following  terms  shall
have the following meanings: (A) "Empire zone wages" means wages paid by
the  taxpayer  for  full-time  employment during the taxable year, in an
area designated or previously designated  as  an  empire  zone  or  zone
equivalent  area pursuant to article eighteen-B of the general municipal
law, where such employment is in a job created in the  area  (i)  during
the  period of its designation as an empire zone, (ii) within four years
of the expiration of such designation, or  (iii)  during  the  ten  year
period   immediately  following  the  date  of  designation  as  a  zone
equivalent area, provided, however, that if the taxpayer's certification
under article eighteen-B of the general municipal law  is  revoked  with
respect to an empire zone or zone equivalent area, any wages paid by the
taxpayer,  on  or  after the effective date of such decertification, for
employment in such zone shall not constitute empire zone wages.
(B) "Targeted employee" means a New York resident who receives  empire
zone wages and who is (i) an eligible individual under the provisions of
the  targeted jobs tax credit (section fifty-one of the internal revenue
code), (ii) eligible for benefits under the provisions of the  workforce
investment  act  as  a  dislocated worker or low-income individual (P.L.
105-220, as amended), (iii) a recipient of public  assistance  benefits,
(iv)  an  individual whose income is below the most recently established
poverty rate promulgated by the United States department of commerce, or
a member of a family whose family income  is  below  the  most  recently
established  poverty  rate promulgated by the appropriate federal agency
or (v) an honorably discharged member of any branch of the armed  forces
of the United States.
An  individual  who  satisfies  the  criteria set forth in clause (i),
(ii), (iv) or (v) at the time of initial  employment  in  the  job  with
respect  to  which the credit is claimed, or who satisfies the criterion
set forth in clause (iii) at  such  time  or  at  any  time  within  the
previous  two  years,  shall  be  a  targeted  employee  so long as such
individual continues to receive empire zone wages.
(C) "Average  number  of  individuals  employed  full-time"  shall  be
computed  by ascertaining the number of such individuals employed by the
taxpayer on the thirty-first day of March, the thirtieth  day  of  June,
the  thirtieth  day  of  September  and the thirty-first day of December
during each taxable year or other applicable period, by adding  together
the  number  of  such  individuals ascertained on each of such dates and
dividing the sum so obtained by  the  number  of  such  dates  occurring
within such taxable year or other applicable period.
(3)  The  credit  provided  for herein shall be allowed only where the
average number of individuals employed full-time by the taxpayer in  (i)
the  state and (ii) the empire zone or area previously constituting such
zone or zone equivalent  area,  during  the  taxable  year  exceeds  the
average number of such individuals employed full-time by the taxpayer in
(i)  the  state  and  (ii)  such zone or area subsequently or previously
constituting such zone  or  such  zone  equivalent  area,  respectively,
during  the  four  years immediately preceding the first taxable year in
which the credit is claimed with respect to such zone or area. Where the
taxpayer provided full-time employment within (i) the state or (ii) such
zone or area during only a portion of such four-year  period,  then  for
purposes  of  this  paragraph  the  term "four years" shall be deemed to
refer instead to such portion, if any.
The credit shall be allowed only with respect  to  the  first  taxable
year  during  which  payments  of  empire  zone  wages  are made and the
conditions set forth in this paragraph are satisfied, and  with  respect
to each of the four taxable years next following (but only, with respect
to  each of such years, if such conditions are satisfied), in accordance
with paragraph four of this subsection. Subsequent certifications of the
taxpayer pursuant to article eighteen-B of the general municipal law, at
the same or a different  location  in  the  same  empire  zone  or  zone
equivalent  area  or  at  a  location in a different empire zone or zone
equivalent area, shall not extend the five taxable year time  limitation
on  the  allowance  of  the  credit set forth in the preceding sentence.
Provided, further, however, that no credit shall be allowed with respect
to any taxable year beginning more than four years following the taxable
year in which designation as an empire zone expired  or  more  than  ten
years after the designation as a zone equivalent area.
(4) The amount of the credit shall equal the sum of
(i)  the  product  of three thousand dollars and the average number of
individuals employed full-time by the taxpayer, computed pursuant to the
provisions of subparagraph (C) of paragraph two of this subsection, who
(I) received empire zone wages for more than half of the taxable year,
(II)  received  with  respect  to  more  than  half  of  the period of
employment by the taxpayer during the taxable year, an hourly wage which
was at least  one  hundred  thirty-five  percent  of  the  minimum  wage
specified in section six hundred fifty-two of the labor law, and
(III) are targeted employees; and
(ii)  the product of fifteen hundred dollars and the average number of
individuals (excluding individuals described in subparagraph (i) of this
paragraph) employed full-time by the taxpayer, computed pursuant to  the
provisions  of subparagraph (C) of paragraph two of this subsection, who
received empire zone wages for more than half of the taxable year.
Provided, further, however, that the credit provided for  herein  with
respect  to  the  taxable  year,  and  carryovers  of such credit to the
taxable year, deducted from the tax  otherwise  due,  may  not,  in  the
aggregate,  exceed  fifty  percent  of the tax imposed under section six
hundred one computed without regard to any  credit  provided  for  under
this article.
(iii)   For   purposes  of  calculating  the  amount  of  the  credit,
individuals employed within an  empire  zone  or  zone  equivalent  area
within  the  immediately  preceding sixty months by a related person, as
such  term  is  defined  in  subparagraph  (c)  of  paragraph  three  of
subsection  (b)  of  section  four  hundred  sixty-five  of the internal
revenue code, shall not be included in the average number of individuals
described in subparagraph (i) or subparagraph (ii)  of  this  paragraph,
unless  such  related  person  was  never  allowed  a  credit under this
subsection  with  respect  to  such  employees.  For  purposes  of  this
subparagraph,  a  "related  person"  shall include an entity which would
have qualified as a "related person" to the taxpayer if it had not  been
dissolved, liquidated, merged with another entity or otherwise ceased to
exist or operate.
(iv)  If  a  taxpayer  is certified in an empire zone designated under
subdivision (a) or (d)  of  section  nine  hundred  fifty-eight  of  the
general  municipal  law, the dollar amounts specified under subparagraph
(i) or (ii) of this paragraph shall be increased by five hundred dollars
for each qualifying individual under  such  subparagraph  who  received,
during the taxable year, wages in excess of forty thousand dollars.
(v)  The  requirement  in this paragraph that an employee must receive
empire zone wages for more than half the taxable year shall not apply in
the first taxable year of a taxpayer satisfying the criteria  set  forth
in  this  subparagraph.  In  such  a case, the credit allowed under this
subsection shall be computed by  utilizing  the  number  of  individuals
(excluding  general  executive  officers)  employed  full  time  by  the
taxpayer on the last day of its first taxable  year.  A  taxpayer  shall
satisfy  the  following  criteria:  (I)  such  taxpayer acquired real or
tangible personal property during its first taxable year from an  entity
which  is  not  a related person (as such term is defined in subdivision
(g) of section fourteen of this chapter); (II) the first taxable year of
such taxpayer shall be a short taxable  year  of  not  more  than  seven
months  in  duration;  and  (III)  the  number  of  individuals employed
full-time on the last day of such first taxable year shall be  at  least
one  hundred  ninety and substantially all of such individuals must have
been previously employed by the entity from whom such taxpayer purchased
its assets.
(5) If the amount of the credit and carryovers of such credit  allowed
under  this  subsection for any taxable year shall exceed the taxpayer's
tax for such year, the excess, as well as any  part  of  the  credit  or
carryovers  of  such credit, or both, which may not be deducted from the
tax otherwise due by reason of the  final  sentence  in  paragraph  four

hereof,  may  be  carried over to the following year or years and may be
deducted from the taxpayer's tax for such year  or  years.  In  lieu  of
carrying over any such excess, a taxpayer who qualifies as an owner of a
new  business  for  purposes  of paragraph ten of subsection (a) of this
section may, at his option, receive fifty percent of such  excess  as  a
refund. Any refund paid pursuant to this paragraph shall be deemed to be
a  refund  of  an  overpayment of tax as provided in section six hundred
eighty-six of this article, provided, however, that no interest shall be
paid thereon.
(5-a) Any carry over of a credit from prior taxable years will not  be
allowed  if  an empire zone retention certificate is not issued pursuant
to subdivision (w) of section nine hundred  fifty-nine  of  the  general
municipal  law  to  the empire zone enterprise which is the basis of the
credit.
(l) Empire zone capital tax credit.  (1) A taxpayer shall be allowed a
credit against the tax imposed by this article. The amount of the credit
shall be equal to twenty-five  percent  of  the  sum  of  the  following
investments and contributions made during the taxable year and certified
by  the  commissioner  of  economic  development:  (A) for taxable years
beginning before January first, two thousand five, qualified investments
made in, or contributions in the form of donations made to, one or  more
empire  zone  capital  corporations established pursuant to section nine
hundred sixty-four of the general municipal law prior to January  first,
two   thousand   five,  (B)  qualified  investments  in  certified  zone
businesses which during the twelve month  period  immediately  preceding
the month in which such investment is made employed full-time within the
state  an  average  number of individuals of two hundred fifty or fewer,
computed pursuant to the provisions of subparagraph (C) of paragraph two
of subsection (k) of this section, except for investments made by or  on
behalf  of  an  owner  of  the business including, but not limited to, a
stockholder, partner or sole  proprietor,  or  any  related  person,  as
defined  in  subparagraph  (C)  of  paragraph three of subsection (b) of
section four hundred sixty-five of the internal revenue  code,  and  (C)
contributions  of  money to community development projects as defined in
regulations promulgated by the  commissioner  of  economic  development.
"Qualified   investments"  means  the  contribution  of  property  to  a
corporation in exchange  for  original  issue  capital  stock  or  other
ownership  interest,  the  contribution  of property to a partnership in
exchange for an interest in the partnership, and  similar  contributions
in the case of a business entity not in corporate or partnership form in
exchange  for  an ownership interest in such entity. The total amount of
credit allowable to a taxpayer under this provision for all years, taken
in the aggregate, shall not exceed three hundred thousand  dollars,  and
shall  not  exceed  one  hundred  thousand  dollars  with respect to the
investments and contributions described in each  of  subparagraphs  (A),
(B) and (C) of this paragraph.
(1-a)  Any carry over of a credit from prior taxable years will not be
allowed to an empire zone enterprise which is the basis of  the  credit,
if  an  empire  zone  retention certificate is not issued to such entity
pursuant to subdivision (w) of section nine hundred  fifty-nine  of  the
general municipal law.
(2)  (A)  If  the  amount  of the credit and carryovers of such credit
allowed under this subsection for any  taxable  year  shall  exceed  the
taxpayer's tax for such year, or if any part of the credit or carryovers
of  such credit may not be deducted from the tax otherwise due by reason
of the final sentence of this subparagraph,  any  amount  of  credit  or
carryovers  of  such credit thus not deductible in such taxable year may
be carried over to the following year or years and may be deducted  from

the  tax for such year or years. In addition, the amount of such credit,
and carryovers of such credit to the taxable year, deducted from the tax
otherwise due may not, in the aggregate, exceed fifty percent of the tax
imposed  under  section  six  hundred one computed without regard to any
credit provided for by this section.
(B) In the case of a husband  or  wife  who  is  required  to  file  a
separate  return,  the  limitation provided for in paragraph one of this
subsection shall be fifty  thousand  dollars  in  lieu  of  one  hundred
thousand dollars and one hundred fifty thousand dollars in lieu of three
hundred  thousand  dollars,  unless  the  spouse  of the taxpayer has no
credit allowable under this subsection for  the  taxable  year  of  such
spouse which ends within or with the taxpayer's taxable year.
(C)  In the case of an estate or trust, the limitation provided for in
paragraph one of this subsection shall be reduced  to  an  amount  which
bears the same ratio to one hundred thousand dollars and an amount which
bears the same ratio to three hundred thousand dollars as the portion of
the   income   of  the  estate  or  trust  which  is  not  allocated  to
beneficiaries bears to the total income of the estate or trust.
(3) Where the stock, partnership interest or other ownership  interest
arising  from  a  qualified investment as described in subparagraphs (A)
and (B) of  paragraph  one  of  this  subsection  is  disposed  of,  the
taxpayer's  New  York  taxable  income  shall  be  computed, pursuant to
regulations promulgated by the commissioner, so as to  properly  reflect
the  reduced  cost  thereof  arising  from the application of the credit
provided for herein.
(4) (A) Where a taxpayer sells, transfers  or  otherwise  disposes  of
corporate  stock,  a  partnership  interest  or other ownership interest
arising from the making of a qualified investment which was  the  basis,
in  whole or in part, for the allowance of the credit provided for under
this subsection, or where a contribution or  investment  which  was  the
basis  for  such  allowance  is  in  any  manner,  in  whole or in part,
recovered by such taxpayer, and  such  disposition  or  recovery  occurs
during  the  taxable  year or within thirty-six months from the close of
the  taxable  year  with  respect  to  which  such  credit  is  allowed,
subparagraph (B) of this paragraph shall apply.
(B)  The  taxpayer  shall add back with respect to the taxable year in
which the disposition or recovery described in subparagraph (A) of  this
paragraph  occurred  the  required  portion  of  the  credit  originally
allowed.
(C) The required portion of the credit originally allowed shall be the
product of (i) the portion of such credit attributable to  the  property
disposed  of  or  the  payment  or  contribution  recovered and (ii) the
applicable percentage.
(D) The applicable percentage shall be:
(i) one hundred percent, if the disposition or recovery occurs  within
the  taxable  year with respect to which the credit is allowed or within
twelve months of the end of such taxable year,
(ii) sixty-seven percent, if the disposition or recovery  occurs  more
than  twelve  but  not more than twenty-four months after the end of the
taxable year with respect to which the credit is allowed, or
(iii) thirty-three percent, if the disposition or recovery occurs more
than twenty-four but not more than thirty-six months after  the  end  of
the taxable year with respect to which the credit is allowed.
(5)  If  the  designation of an area as an empire zone is no longer in
effect because the designations of all empire zones pursuant to  article
eighteen-B  of  the  general municipal law have expired, a taxpayer that
has made a contribution of  money  on  or  before  the  day  immediately
preceding  the  day  the empire zones expired to a community development

project approved by the commissioner of economic  development  shall  be
deemed   eligible   to  claim  the  empire  zone  capital  credit  under
subparagraph (C) of paragraph one  of  this  subsection  for  additional
contributions  made  prior  to  April  first,  two thousand fourteen and
certified by the commissioner of economic development to that  community
development  project  as payment of a commitment made by the taxpayer to
that community development project before the empire zones expired.
(m) Excess deductions credit. (1) General. For taxable years beginning
in nineteen hundred ninety-five, an excess deductions  credit  shall  be
allowed  against the tax determined under subsections (a) through (d) of
section six hundred one of this article. The credit shall be allowed  to
an  individual  taxpayer  whose  New  York itemized deduction determined
under section six hundred fifteen (whether or not  the  taxpayer  elects
the  New  York itemized deduction for the taxable year) exceeds the base
amount determined under paragraph  two  hereof.  The  credit  shall  not
exceed  the  tax determined under subsections (a) through (d) of section
six hundred one for the taxable year, reduced by the  credits  permitted
under subsection (c) of this section and sections six hundred twenty and
six hundred twenty-one of this article.
(2) Base amount. The base amount shall be determined by the taxpayer's
standard deduction status under section six hundred fourteen (whether or
not the taxpayer employs the standard deduction for the taxable year) as
follows:
 
If the taxpayer's standard                   The base amount is:
deduction status is:
Unmarried individual who is
not a head of household nor a
surviving spouse nor an
individual whose federal
exemption amount is zero                         $6,000
Husband and wife whose New York
taxable income is determined
jointly, or a surviving spouse                   $9,500
Head of household                                $7,000
Married individual filing a
separate New York return                         $4,750
(3) Credit amount.
(A)  Married  individuals  filing joint returns and surviving spouses.
The amount of the credit allowed pursuant to this subsection for married
individuals filing jointly under subsection (b) of section  six  hundred
fifty-one and for a surviving spouse shall be:
 
If New York taxable income is:           The credit is the following
percentage of New York
taxable income:
Not over $11,500                                  0.57%
Over $11,500 but not over $17,500                 0.51%
Over $17,500 but not over $24,100                 0.36%
Over $24,100 but not over $31,500                 0.26%
Over $31,500 but not over $35,500                 0.16%
Over $35,500 but not over $42,000                 0.11%
Over $42,000 but not over $49,000                 0.06%
Over $49,000                                      0.00%
(B)  Heads of households. The amount of the credit allowed pursuant to
this subsection for a head of household shall be:
 
If New York taxable income is:           The credit is the following
percentage of New York
taxable income:
Not over $7,600                                   0.57%
Over $7,600 but not over $11,700                  0.51%
Over $11,700 but not over $16,400                 0.36%
Over $16,400 but not over $20,500                 0.26%
Over $20,500 but not over $23,800                 0.16%
Over $23,800 but not over $28,650                 0.11%
Over $28,650 but not over $33,400                 0.06%
Over $33,400                                      0.00%
(C) Unmarried individuals  and  married  individuals  filing  separate
returns.  The  amount  of the credit allowed pursuant to this subsection
for an individual who is not a married individual filing  jointly  under
subsection  (b)  of  section  six  hundred  fifty-one  nor  a  head of a
household nor a surviving spouse shall be:
 
If New York taxable income is:           The credit is the following
percentage of New York
taxable income:
Not over $5,600                                   0.57%
Over $5,600 but not over $8,600                   0.51%
Over $8,600 but not over $12,000                  0.36%
Over $12,000 but not over $15,700                 0.26%
Over $15,700 but not over $17,600                 0.16%
Over $17,600 but not over $21,000                 0.11%
Over $21,000 but not over $24,500                 0.06%
Over $24,500                                      0.00%
(n) Agricultural property tax credit. (1) General. In the  case  of  a
taxpayer  who  is  an eligible farmer or an eligible farmer who has paid
taxes pursuant to a land contract, there shall be allowed a  credit  for
the allowable school district property taxes. The term "allowable school
district  property  taxes" means the school district property taxes paid
during the taxable year on qualified agricultural property,  subject  to
the acreage limitation provided in paragraph five of this subsection and
the income limitation provided in paragraph six of this subsection. Such
credit  shall  be  allowed against the taxes imposed by this article for
the taxable year reduced by the credits permitted by  this  article.  If
the  credit exceeds the tax as so reduced, the taxpayer may receive, and
the comptroller, subject to a certificate of the commissioner, shall pay
as an overpayment, without interest, the amount of such excess.
(2) Eligible  farmer.  For  purposes  of  this  subsection,  the  term
"eligible  farmer"  means  a  taxpayer  whose  federal gross income from
farming for the taxable year is at least two-thirds  of  excess  federal
gross  income.  The  term  "eligible farmer" also includes an individual
other than the taxpayer of record for qualified  agricultural  land  who
has  paid  the school district property taxes on such land pursuant to a
contract for the future  purchase  of  such  land;  provided  that  such
individual  has a federal gross income from farming for the taxable year
which is at  least  two-thirds  of  excess  federal  gross  income;  and

provided  further  that,  in  determining  such  income  eligibility,  a
taxpayer may, for any taxable year, use  the  average  of  such  federal
gross  income from farming for that taxable year and such income for the
two  consecutive  taxable years immediately preceding such taxable year.
Excess federal gross income means the amount  of  federal  gross  income
from  all sources for the taxable year reduced by the sum (not to exceed
thirty thousand dollars) of those items included in federal gross income
which consist of (i) earned income,  (ii)  pension  payments,  including
social  security  payments,  (iii)  interest,  and  (iv)  dividends. For
purposes of this paragraph, the term "earned income" shall  mean  wages,
salaries, tips and other employee compensation, and those items of gross
income  which  are  includible  in  the computation of net earnings from
self-employment. For the purposes of this paragraph, payments  from  the
state's  farmland  protection program, administered by the department of
agriculture and markets, shall be included as federal gross income  from
farming for otherwise eligible farmers.
(3)  School  district property taxes. For purposes of this subsection,
the term "school district property  taxes"  means  all  property  taxes,
special   ad  valorem  levies  and  special  assessments,  exclusive  of
penalties and interest, levied  for  school  district  purposes  on  the
qualified  agricultural property (A) owned by the taxpayer, (B) owned by
the father, mother, grandfather, grandmother, brother or sister  of  the
taxpayer  and  a  written  agreement  expressing  intent  to  eventually
purchase the land has been entered into, or (C) owned by trust where the
taxpayer is an immediate family member of the settlor, and  where  under
the  terms  of  the  trust  the title to the property shall pass to such
taxpayer upon the death of the settlor.
(4) Qualified agricultural property. For purposes of this  subsection,
the  term  "qualified  agricultural property" means land located in this
state which is used in agricultural production, and  land  improvements,
structures  and  buildings  (excluding buildings used for the taxpayer's
residential purpose) located on such land which are used or occupied  to
carry out such production. Qualified agricultural property also includes
land  set  aside  or  retired  under a federal supply management or soil
conservation program or land that at the time it becomes  subject  to  a
conservation easement, as defined under subsection (kk) of this section,
met the requirements under this paragraph.
(5)  Acreage  limitation.  (A)  Eligible  taxes. In the event that the
qualified agricultural property owned by the taxpayer includes  land  in
excess  of the base acreage as provided in this paragraph, the amount of
school district property taxes eligible for credit under this subsection
shall be that portion of the school district property taxes which  bears
the  same  ratio to the total school district property taxes paid during
the taxable year, as the acreage allowable under this paragraph bears to
the entire acreage of such land.
(B) Allowable acreage. The allowable acreage is the sum  of  the  base
acreage  set  forth  below and fifty percent of the incremental acreage.
The incremental acreage is the excess of the entire acreage of qualified
agricultural land owned by the taxpayer over the base acreage. Except as
provided in subparagraph (C) of this paragraph:
For taxable years beginning:              The base acreage is:
in 1997                                          100
after 1997 but before 2006                       250
2006 and thereafter                              350
 
For taxable years beginning after two thousand, total base  acreage  may
be increased by any acreage enrolled or participating during the taxable

year  in  a  federal  environmental conservation acreage reserve program
pursuant to title three  of  the  federal  agriculture  improvement  and
reform act of nineteen hundred ninety-six.
(C)  Base  acreage  of  related persons. Where the taxpayer and one or
more related persons each own qualified  agricultural  property  on  the
first  day of March of any year, the base acreage under subparagraph (B)
of this paragraph shall  be  divided  equally  and  allotted  among  the
taxpayer  and  such related persons, and the taxpayer's base acreage for
the taxable year which includes such March first shall be limited to its
allotted share. Provided, however, if the taxpayer and all such  related
persons consent (at such time and in such manner as the commissioner may
prescribe)  to an unequal division, the taxpayer's base acreage for such
taxable year shall be limited to its allotted share under  such  unequal
division.
(D)  Related  persons.  (i)  For  purposes of subparagraph (C) of this
paragraph, the term "related person" means:
(I) a spouse;
(II) a corporation  subject  to  tax  under  article  nine-A  of  this
chapter, where more than fifty percent in value of the outstanding stock
of  the  corporation  is  owned,  directly  or indirectly, by or for the
taxpayer, or, where the taxpayer is a trust, where such stock  is  owned
directly or indirectly by or for the grantor of such trust;
(III)  a  partnership,  estate  or  trust  of which the taxpayer owns,
directly or indirectly, more than fifty percent of the capital,  profits
or beneficial interest.
(ii)  For  purposes  of  subparagraph (C) of this paragraph, where the
taxpayer is an estate or trust, the term  "related  person"  shall  also
mean  a corporation subject to tax under article nine-A of this chapter,
a partnership, an estate or trust:
(I) where more than fifty percent of the beneficial  interest  in  the
taxpayer  is  owned, directly or indirectly, by or for such corporation,
partnership, estate or trust or by or for the grantor of such trust; or
(II) if the same person owns more than fifty percent of the beneficial
interest in the taxpayer and more than fifty percent  in  value  of  the
outstanding  stock of the corporation, or more than fifty percent of the
capital or profits interest in  the  partnership,  or  more  than  fifty
percent of the beneficial interest in the estate or trust.
(iii)  In  determining whether a person is a related person within the
meaning of this subparagraph:
(I) stock owned, directly or indirectly,  by  or  for  a  corporation,
partnership,  estate  or  trust  shall  be  considered  as  being  owned
proportionately by or for its shareholders, partners or beneficiaries;
(II) an individual shall be considered  as  owning  the  stock  owned,
directly or indirectly, by or for his spouse;
(III)  stock  constructively  owned  by  a  person  by  reason  of the
application of item (I)  of  this  clause  shall,  for  the  purpose  of
applying  item  (I) or (II) of this clause, be treated as actually owned
by such person.
(6) Income limitation. (A) In the event that  the  modified  New  York
adjusted  gross  income  of  the  taxpayer  exceeds one hundred thousand
dollars for taxable years beginning  before  two  thousand  six  or  two
hundred   thousand  dollars  for  taxable  year  two  thousand  six  and
thereafter, the allowable school district property taxes under paragraph
one of this subsection shall be the eligible  taxes  under  subparagraph
(A)  of  paragraph five of this subsection reduced by the product of the
amount of such eligible taxes and a percentage, such  percentage  to  be
determined  by  multiplying  one  hundred  percent  by  a  fraction, the
numerator of which is the lesser of fifty thousand dollars  for  taxable

years  beginning before two thousand six or one hundred thousand dollars
for taxable year two thousand six and thereafter or the  excess  of  the
taxpayer's  modified  New  York  adjusted  gross income over one hundred
thousand  dollars for taxable years beginning before two thousand six or
two hundred thousand dollars for  taxable  year  two  thousand  six  and
thereafter  and  the  denominator of which is fifty thousand dollars for
taxable years beginning before two thousand six or one hundred  thousand
dollars  for  taxable year two thousand six and thereafter. For purposes
of the preceding sentence, the term "eligible taxes", where the  acreage
limitation  of  paragraph  five of this subsection does not apply, shall
mean the total school district property taxes paid  during  the  taxable
year.
(B)  The  term "modified New York adjusted gross income" means the New
York adjusted gross income for the taxable year reduced by the amount of
principal paid on farm indebtedness during the taxable  year.  The  term
"farm  indebtedness"  means debt incurred or refinanced which is secured
by farm property, where the proceeds  of  the  debt  are  disbursed  for
expenditures incurred in the business of farming.
(7)  Nonqualified  use. (A) No credit in conversion year. In the event
that qualified agricultural property is converted  by  the  taxpayer  to
nonqualified use, credit under this subsection shall not be allowed with
respect  to  such  property  for  the  taxable  year  of conversion (the
conversion year).
(B) Credit recapture. If the conversion by the taxpayer  of  qualified
agricultural  property  to  nonqualified use occurs during the period of
the two taxable years following the taxable year for  which  the  credit
under  this  subsection was first claimed with respect to such property,
the credit allowed with respect to such property for the  taxable  years
prior  to the conversion year must be added back in the conversion year.
Where the property converted includes land, and where the conversion  is
of  only  a portion of such land, the credit allowed with respect to the
property converted shall be determined by multiplying the entire  credit
under this subsection for the taxable years prior to the conversion year
by  a  fraction, the numerator of which is the acreage converted and the
denominator of which is the entire acreage of such  land  owned  by  the
taxpayer immediately prior to the conversion.
(C)  Exception  to recapture. Subparagraph (B) of this paragraph shall
not apply to the conversion of  property  where  the  conversion  is  by
reason  of  involuntary  conversion,  within  the meaning of section one
thousand thirty-three of the internal revenue code.
(D) Conversion to nonqualified use. For purposes of this paragraph,  a
sale or other disposition of qualified agricultural property alone shall
not constitute a conversion to a nonqualified use.
(8)  Special rules. For purposes of this subsection, the term "federal
gross  income  from  farming"  shall  include  gross  income  from   the
production of maple syrup, cider, Christmas trees derived from a managed
Christmas  tree  operation whether dug for transplanting or cut from the
stump, or from a commercial  horse  boarding  operation  as  defined  in
subdivision thirteen of section three hundred one of the agriculture and
markets  law,  or  from  the sale of wine from a licensed farm winery as
provided for in article six of the alcoholic beverage  control  law,  or
from  the  sale  of cider from a licensed farm cidery as provided for in
section fifty-eight-c of the alcoholic beverage control law.
(9) Election to deem  gross  income  of  New  York  C  corporation  to
shareholders.  (A)  General.  For  purposes  of  the  credit  under this
subsection, the shareholders of an eligible  corporation  may  elect  to
take  into account their pro rata shares of the corporation's income and
principal payments on farm indebtedness as provided in subparagraph  (B)

of  this  paragraph, for the taxable year of the corporation ending with
or within the taxable year of each shareholder. No election  under  this
paragraph  shall  be  effective  unless  shareholders  holding more than
one-half,  by  vote and value, of the shares of stock of the corporation
on the day on which the election is made have so elected.
(B) Inclusion in gross and adjusted gross income. (i) For any  taxable
year  of  the corporation for which the election under this paragraph is
in effect, the shareholders of the corporation shall include:
(I) in gross income, for purposes of paragraph two of this subsection,
their pro rata shares of the corporation's gross  income,  which  income
shall have the same character as in the hands of the corporation, and
(II)  in  adjusted gross income, for purposes of paragraph six of this
subsection, their pro  rata  shares  of  the  corporation's  entire  net
income, and
(III)  in  principal  payments  on  farm indebtedness, for purposes of
paragraph six of this subsection, their pro rata shares of such payments
made by the corporation.
(ii) Tiered New York C and New York S corporation. In the event that a
shareholder of the corporation is a New York S corporation, the New York
S corporation shall make the inclusions prescribed by clause (i) of this
subparagraph (except that the inclusion prescribed by subclause (II)  of
such  clause  shall  be  in  the  entire  net  income  of the New York S
corporation), and the New York S corporation  shall  pass  through  such
inclusions  in pro rata shares to its shareholders for purposes of their
calculation of credit under this subsection.
(C) Eligible corporation. The  term  "eligible  corporation"  means  a
corporation subject to tax under article nine-A of this chapter which is
a New York C corporation for federal income tax purposes.
(D) Pro rata share. For purposes of this paragraph, the pro rata share
of  any  item  of  income  or farm indebtedness principal payments for a
taxable year of the corporation shall be determined with  respect  to  a
shareholder  by  assigning  an  equal portion of the item to each day of
such taxable year, and then by dividing that portion pro rata among  the
shares outstanding on such day.
(E) Election. (i) An election under subparagraph (A) of this paragraph
shall  be  made  on such form and in such manner as the commissioner may
prescribe.
(ii) When made. Such election shall be made no later than the due date
of the corporation tax return (determined without regard to  extensions)
for  the  corporation's  taxable  year  for  which the election is to be
effective.
(iii) When effective. Such election shall be effective for the taxable
year of the corporation for which it is  made  and  for  all  succeeding
taxable  years  of  the  corporation,  until such election is terminated
under subparagraph (F) of this paragraph.
(F) Termination. (i) Revocation. An election under subparagraph (A) of
this paragraph shall be terminated if  shareholders  holding  more  than
one-half,  by  vote and value, of the shares of stock of the corporation
on the day on which the revocation is made  revoke  the  election.  Such
revocation  shall  be  made  on  such  form  and  in  such manner as the
commissioner may prescribe, and shall be effective on the first  day  of
the   corporation's  taxable  year  following  the  date  on  which  the
revocation is made.
(ii) Ineligible corporation. An election  under  subparagraph  (A)  of
this paragraph shall be terminated on the first day of the corporation's
taxable  year  with  respect  to  which  the corporation ceases to be an
eligible corporation.
(G) Election after termination. If an  election  is  terminated  under
subparagraph   (F)   of   this  paragraph,  no  further  election  under
subparagraph (A) of this  paragraph  shall  be  made  before  the  fifth
taxable  year of the corporation following the taxable year during which
the  termination  occurred,  unless  the  commissioner  consents to such
election.
(H) Waiver of secrecy. The commissioner shall have authority to reveal
to shareholders of the  corporation  any  information  with  respect  to
income  or  farm indebtedness principal payments of the corporation, for
any taxable year of the corporation for which the  election  under  this
paragraph  is  in  effect,  which is the basis for denial in whole or in
part of the credit claimed by such shareholders.
(n-1) Homeowner tax rebate credit.  (1)  An  individual  taxpayer  who
meets  the  eligibility  standards  in  paragraph two of this subsection
shall be allowed a credit against the taxes imposed by this  article  in
the  amount specified in paragraph three of this subsection for tax year
two thousand twenty-two.
(2) To be eligible for the credit, the taxpayer (or  taxpayers  filing
joint  returns)  (a)  must  own  and  primarily  reside in real property
receiving either the STAR exemption authorized by section  four  hundred
twenty-five of the real property tax law or the school tax relief credit
authorized  by  subsection  (eee) of this section, and (b) must have had
qualified gross income  no  greater  than  two  hundred  fifty  thousand
dollars in tax year two thousand twenty.
(3)  Amount  of  credit.  (a)  For  a taxpayer who owned and primarily
resided in real property receiving  the  basic  STAR  exemption  or  who
received the basic STAR credit, the amount of the credit shall equal the
STAR  tax  savings  associated with such basic STAR exemption in the two
thousand twenty-one--two thousand twenty-two school year, multiplied  by
the following percentage:
(i) For a taxpayer whose primary residence is located outside the city
of New York:
Qualified Gross Income                  Percentage
Not over $75,000                        163%
Over $75,000 but not over $150,000      115%
Over $150,000 but not over $200,000     66%
Over $200,000 but not over $250,000     18%
Over $250,000                           No credit
(ii) For a taxpayer whose primary residence is located within the city
of New York:
Qualified Gross Income                  Percentage
Not over $75,000                        125%
Over $75,000 but not over $150,000      115%
Over $150,000 but not over $200,000     105%
Over $200,000 but not over $250,000     100%
Over $250,000                           No credit
(b)  For  a  taxpayer who owned and primarily resided in real property
receiving the enhanced STAR exemption or who received the enhanced  STAR
credit,  the  amount  of  the  credit  shall  equal the STAR tax savings
associated with  such  enhanced  STAR  exemption  in  the  two  thousand
twenty-one--two thousand twenty-two school year, multiplied by sixty-six
percent  if the taxpayer's primary residence is located outside the city
of New York, or one  hundred  ten  percent  if  the  taxpayer's  primary
residence is located within the city of New York.
(c)  In  no  case  may  the  amount  of  the credit allowed under this
subsection exceed the school district taxes  due  with  respect  to  the
residence  for  that  school year, nor shall any credit be allowed under

this subsection if the amount determined pursuant to this  paragraph  is
less than one hundred dollars.
(4) For purposes of this subsection:
(a)  "Qualified  gross  income" means the adjusted gross income of the
qualified taxpayer for the taxable year as reported for  federal  income
tax  purposes,  or which would be reported as adjusted gross income if a
federal income tax return  were  required  to  be  filed.  In  computing
qualified  gross  income,  the  net  amount  of loss reported on Federal
Schedule C, D, E, or F shall  not  exceed  three  thousand  dollars  per
schedule.  In addition, the net amount of any other separate category of
loss shall not exceed three thousand dollars. The  aggregate  amount  of
all losses included in computing qualified gross income shall not exceed
fifteen thousand dollars.
(b) "STAR tax savings" means the tax savings attributable to the basic
or enhanced STAR exemption, whichever is applicable, within a portion of
a  school  district,  as  determined  by  the  commissioner  pursuant to
subdivision two of section thirteen hundred six-a of the  real  property
tax law.
(5)  If  the  amount of the credit allowed under this subsection shall
exceed the taxpayer's tax for the taxable  year,  the  excess  shall  be
treated  as  an  overpayment  of  tax  to  be  credited  or  refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.  For
each year this credit is allowed, on or before October fifteenth of such
year,  or  as  soon thereafter as is practicable, the commissioner shall
determine the taxpayer's  eligibility  for  this  credit  utilizing  the
information  available  to  the  commissioner on the taxpayer's personal
income tax return filed for the taxable year  two  years  prior  to  the
taxable  year  in  which the credit is allowed. For those taxpayers whom
the  commissioner  has  determined  eligible  for   this   credit,   the
commissioner  shall  advance  a  payment  in  the  amount  specified  in
paragraph three of this subsection, which payment shall  be  issued,  to
the  greatest  extent  practicable, by October thirty-first of each year
the credit is allowed. A taxpayer who has failed to receive  an  advance
payment  that  he  or  she  believes  was  due to him or her, or who has
received an advance payment that he or she believes  is  less  than  the
amount  that  was  due to him or her, may request payment of the claimed
deficiency in a manner prescribed by the commissioner.
(6) A taxpayer shall not be eligible for the credit allowed under this
subsection if the school district taxes levied upon the residence during
the taxable year remain unpaid sixty days after the last date  on  which
they  could  have been paid without interest, or in the case of a school
district where such taxes are payable in  installments,  if  such  taxes
remain  unpaid  sixty  days  after  the  last  date  on  which the final
installment could have been paid without interest. If the  taxes  remain
unpaid  on  such  sixtieth  day,  the  amount  of  credit claimed by the
taxpayer under this subsection or  the  amount  of  advance  payment  of
credit  received  by  the  taxpayer  pursuant  to paragraph five of this
subsection shall be added back as tax on the income tax return  for  the
taxable year in which such sixtieth day occurs.
(7)  Only  one  credit per residence shall be allowed per taxable year
under this subsection. When two or more members of a residence are  able
to meet the qualifications for a qualified taxpayer, the credit shall be
equally  divided  between  or  among  such  individuals.  In the case of
spouses who file  a  joint  federal  return  but  who  are  required  to
determine  their  New York taxes separately, the credit allowed pursuant
to this subsection may be applied against the tax of either  or  divided
between them as they may elect.
(n-2)  Credit for farm donations to food pantries. (1) General. In the
case of a taxpayer who is an eligible farmer, there shall be  allowed  a
credit,  to be computed as hereinafter provided, against the tax imposed
by this article for taxable years beginning on and after January  first,
two  thousand  eighteen.  The  amount of the credit shall be twenty-five
percent of the fair market value of the taxpayer's  qualified  donations
made  to any eligible food pantry during the taxable year, not to exceed
five thousand dollars per taxable year. If the taxpayer is a partner  in
a partnership or a shareholder of a New York S corporation, then the cap
imposed  by the preceding sentence shall be applied at the entity level,
so that the aggregate credit allowed to all partners or shareholders  of
such entity in the taxable year does not exceed five thousand dollars.
(2)  Eligible  farmer.  For  purposes  of  this  subsection,  the term
"eligible farmer" means a  taxpayer  whose  federal  gross  income  from
farming  for  the  taxable year is at least two-thirds of excess federal
gross income.  Excess federal gross income means the amount  of  federal
gross  income  from  all sources for the taxable year reduced by the sum
(not to exceed thirty thousand  dollars)  of  those  items  included  in
federal  gross  income  that consist of: (i) earned income, (ii) pension
payments, including social security payments, (iii) interest,  and  (iv)
dividends.  For  purposes  of  this  paragraph, the term "earned income"
shall mean wages, salaries, tips and other  employee  compensation,  and
those  items  of  gross income that are includible in the computation of
net earnings from self-employment. For the purposes of  this  paragraph,
payments  from  the state's farmland protection program, administered by
the department of agriculture and markets, shall be included as  federal
gross income from farming for otherwise eligible farmers.
(3)  Qualified  donation.  For  purposes  of this subsection, the term
"qualified donation" means a donation of any apparently wholesome  food,
as  defined  in  section  170(e)(3)(C)(vi) of the internal revenue code,
grown or produced within  this  state,  by  an  eligible  farmer  to  an
eligible food pantry.
(4)  Eligible  food  pantry. For purposes of this subsection, the term
"eligible food pantry" means  any  food  pantry,  food  bank,  or  other
emergency  food  program  operating within this state that has qualified
for tax exemption under section 501(c)(3) of the internal revenue code.
(5)  Determination  of  fair  market  value.  For  purposes  of   this
subsection,  to  determine the fair market value of apparently wholesome
food donated to an eligible food pantry, the standards set  forth  under
section 170(e)(3)(C)(v) of the internal revenue code shall apply.
(6)  Record  of  donation.  To claim a credit under this subsection, a
taxpayer must get and keep a  receipt  from  the  eligible  food  pantry
showing:  (i)  the  name  of the eligible food pantry; (ii) the date and
location of the qualified donation;  and  (iii)  a  reasonably  detailed
description  of  the  qualified  donation.  A  letter  or  other written
communication from the eligible food pantry acknowledging receipt of the
contribution and containing the information in subparagraphs (i),  (ii),
and (iii) of this paragraph will serve as a receipt.
(7)  Application of credit. A taxpayer shall be allowed a credit under
this subsection against the tax imposed by this article. However, if the
amount of credit allowed under this  subsection  for  any  taxable  year
exceeds  the taxpayer's tax for such year, the excess will be treated as
an overpayment of tax to be credited or refunded in accordance with  the
provisions  of section six hundred eighty-six of this article. Provided,
however, the  provisions  of  subsection  (c)  of  section  six  hundred
eighty-eight  of  this article notwithstanding, no interest will be paid
thereon.
(o) Credit for employment of persons with disabilities. (1)  Allowance
of  credit.  A  taxpayer  shall  be  allowed a credit, to be computed as
hereinafter provided, against the  tax  imposed  by  this  article,  for
employing within the state a qualified employee.
(2) Qualified employee. A qualified employee is an individual:
(A) who is certified by the education department, or in the case of an
individual  who  is  blind  or visually handicapped, by the state agency
responsible for provision of vocation  rehabilitation  services  to  the
blind  and visually handicapped: (i) as a person with a disability which
constitutes or results in a substantial handicap to employment and  (ii)
as  having  completed  or  as receiving services under an individualized
written rehabilitation plan approved  by  the  education  department  or
other  state  agency responsible for providing vocational rehabilitation
services to such individual; and
(B) who has worked on a  full-time  basis  for  the  employer  who  is
claiming the credit for at least one hundred eighty days or four hundred
hours.
(3)  Amount  of  credit.  Except as provided in paragraph four of this
subsection, the amount of credit shall be  thirty-five  percent  of  the
first  six thousand dollars in qualified first-year wages earned by each
qualified employee. "Qualified first-year wages"  means  wages  paid  or
incurred  by the taxpayer during the taxable year to qualified employees
which are attributable, with respect to any such employee,  to  services
rendered  during the one-year period beginning with the day the employee
begins work for the taxpayer.
(4) Credit where federal work opportunity  tax  credit  applies.  With
respect to any qualified employee whose qualified first-year wages under
paragraph  three of this subsection also constitute qualified first-year
wages for purposes of the work opportunity  tax  credit  for  vocational
rehabilitation referrals under section fifty-one of the internal revenue
code,  the  amount  of credit under this subsection shall be thirty-five
percent of the first six thousand dollars in qualified second-year wages
earned by each such employee. "Qualified second-year wages" means  wages
paid  or  incurred  by the taxpayer during the taxable year to qualified
employees which are attributable, with respect to any such employee,  to
services  rendered  during  the one-year period beginning one year after
the employee begins work for the taxpayer.
(5) Carryover. If the amount of credit allowable under this subsection
for any taxable year shall exceed the taxpayer's tax for such year,  the
excess  may  be  carried over to the following year or years, and may be
deducted from the taxpayer's tax for such year or years.
(6)  Coordination  with  federal  work  opportunity  tax  credit.  The
provisions  of  sections fifty-one and fifty-two of the internal revenue
code, as such  sections  applied  on  October  first,  nineteen  hundred
ninety-six, that apply to the work opportunity tax credit for vocational
rehabilitation referrals shall apply to the credit under this subsection
to  the  extent  that  such  sections  are  consistent with the specific
provisions of this subsection, provided that in the event of a  conflict
the provisions of this subsection shall control.
(p) Alternative fuels and electric vehicle recharging property credit.
(1)  General.  A  taxpayer  shall be allowed a credit, to be computed as
hereinafter provided, against the  tax  imposed  by  this  article,  for
alternative  fuel  vehicle  refueling  and  electric  vehicle recharging
property placed in service during the taxable year.
(2) (a) Alternative  fuel  vehicle  refueling  property  and  electric
vehicle  recharging  property.  The  credit  under  this  subsection for
alternative  fuel  vehicle  refueling  property  or   electric   vehicle
recharging  property  shall  equal for each installation of property the

lesser of five thousand dollars or the product of fifty percent and  the
cost  of  any  such  property  less  any costs paid from the proceeds of
grants.
(b) To qualify for the credit, the property must:
(i) be located in this state;
(ii)   constitute  alternative  fuel  vehicle  refueling  property  or
electric vehicle recharging property; and
(iii) not be paid for from  the  proceeds  of  grants  awarded  before
January  first, two thousand fifteen, including grants from the New York
state energy research and development authority or the  New  York  power
authority.
(3)  Definitions.  (A)  The  term  "alternative fuel vehicle refueling
property" means all of the equipment needed  to  dispense  any  fuel  at
least eighty-five percent of the volume of which consists of one or more
of   the  following:  natural  gas,  liquified  natural  gas,  liquified
petroleum, or hydrogen; and
(B) The term "electric vehicle  recharging  property"  means  all  the
equipment  needed  to  convey  electric  power from the electric grid or
another power source to an onboard vehicle energy storage system.
(4)  Carryovers.  If  the  amount  of  credit  allowable  under   this
subsection shall exceed the taxpayer's tax for such year, the excess may
be  carried over to the following year or years and may be deducted from
the taxpayer's tax for such year or years.
(5) Credit recapture. (A) If, at  any  time  before  the  end  of  its
recovery period, alternative fuel vehicle refueling property or electric
vehicle  recharging  property ceases to be qualified, a recapture amount
must be added back in the tax year in which such cessation occurs.
(B) Cessation of qualification.  Alternative  fuel  vehicle  refueling
property  or electric vehicle recharging property ceases to be qualified
if:
(i) the property no  longer  qualifies  as  alternative  fuel  vehicle
refueling property or electric vehicle recharging property, or
(ii)  fifty  percent  or  more of the use of the property in a taxable
year is other than in a trade or business in this state, or
(iii) the taxpayer receiving the credit under this subsection sells or
disposes of the property and knows  or  has  reason  to  know  that  the
property  will  be  used  in a manner described in clause (i) or (ii) of
this subparagraph.
(C) Recapture amount. The recapture amount  is  equal  to  the  credit
allowable  under this subsection multiplied by a fraction, the numerator
of which is the total recovery period for the property minus the  number
of  recovery  years prior to, but not including, the recapture year, and
the denominator of which is the total recovery period.
(6) Termination. The credit allowed by this subsection shall not apply
in taxable years beginning after  December  thirty-first,  two  thousand
twenty-five.
(q)  Qualified  emerging  technology  company employment credit. (1) A
taxpayer shall be allowed  a  credit,  to  be  computed  as  hereinafter
provided, against the tax imposed by this article, provided:
(A)  the  taxpayer  is  a  sole  proprietor  of  a  qualified emerging
technology company, a member of  a  partnership  which  is  a  qualified
emerging   technology  company,  or  a  shareholder  of  a  New  York  S
corporation which is a qualified emerging technology company, as defined
in section thirty-one hundred two-e of the public authorities law; and
(B) the average number  of  individuals  employed  full-time  by  such
company  in  New  York  state  during  the  taxable year is at least one
hundred one percent of such company's  base  year  employment.  For  the
purposes  of  this  subsection, "base year employment" means the average

number of individuals employed full-time by such company  in  the  state
during  the  three taxable years immediately preceding the first taxable
year in which  the  credit  is  claimed.  Where  such  company  provided
full-time  employment  within  the  state  during only a portion of such
three-year period, then for purposes of this subsection, the term "three
years" shall be deemed to  refer  instead  to  such  portion,  provided,
however,  the first taxable year for which this credit may be taken with
respect to such company shall be the next year following the first  full
taxable  year  that  such  company  had full-time employment in New York
state.
(2) The credit shall be allowed only in  the  first  taxable  year  in
which  the  credit is claimed and in each of the next two taxable years,
provided that the conditions of paragraph one  of  this  subsection  are
satisfied in each taxable year.
(3) For the purposes of this subsection, average number of individuals
employed  full-time  shall  be  computed  by  adding  the number of such
individuals employed by such company at the end of each  quarter  during
each  taxable  year  or  other applicable period and dividing the sum so
obtained by the number of such quarters occurring  within  such  taxable
year  or  other  applicable period; provided, however, that in computing
base year employment there shall be excluded therefrom any employee with
respect to whom a credit provided  for  under  subsection  (k)  of  this
section is claimed for the taxable year.
(4)  The  amount of the credit shall equal the product of one thousand
dollars multiplied by the number of individuals  employed  full-time  by
such  company  in  the  taxable  year  that are in excess of one hundred
percent of such company's base year employment.
(5) If the amount of credit allowed  under  this  subsection  for  any
taxable  year  shall exceed the taxpayer's tax for such year, the excess
shall be treated as an overpayment of tax to be credited or refunded  in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(r)  Qualified  emerging  technology company capital tax credit. (1) A
taxpayer shall be allowed a credit  against  the  tax  imposed  by  this
article. The amount of the credit shall be equal to one of the following
percentages,  per  each  qualified  investment  in  a qualified emerging
technology company as defined in section thirty-one hundred two-e of the
public authorities law, made during the taxable year, and  certified  by
the commissioner, either:
(A)  ten  percent  of  qualified  investments  in  qualified  emerging
technology companies, except for investments made by or on behalf of  an
owner  of  the  business,  including, but not limited to, a stockholder,
partner or sole  proprietor,  or  any  related  person,  as  defined  in
subparagraph  (C)  of  paragraph three of subsection (b) of section four
hundred sixty-five of the internal revenue code, and provided,  however,
that  the  taxpayer  certifies  to  the  commissioner that the qualified
investment will not be sold, transferred, traded, or disposed of  during
the  four years following the year in which the credit is first claimed;
or
(B) twenty percent of  qualified  investments  in  qualified  emerging
technology  companies, except for investments made by or on behalf of an
owner of the business, including, but not  limited  to,  a  stockholder,
partner  or  sole  proprietor,  or  any  related  person,  as defined in
subparagraph (C) of paragraph three of subsection (b)  of  section  four
hundred  sixty-five of the internal revenue code, and provided, however,
that the taxpayer certifies  to  the  commissioner  that  the  qualified
investment  will not be sold, transferred, traded, or disposed of during
the nine years following the year in which the credit is first claimed.
(C) "Qualified investment" means the contribution  of  property  to  a
corporation  in  exchange  for  original  issue  capital  stock or other
ownership interest, the contribution of property  to  a  partnership  in
exchange  for  an interest in the partnership, and similar contributions
in the case of a business entity not in corporate or partnership form in
exchange  for  an ownership interest in such entity. The total amount of
credit allowable to a taxpayer under this provision for all years, taken
in the aggregate, shall not exceed one hundred fifty thousand dollars in
the case of investments  made  pursuant  to  subparagraph  (A)  of  this
paragraph  and  shall  not  exceed three hundred thousand dollars in the
case of investments made pursuant to subparagraph (B) of this paragraph.
(2) (A) If the amount of the credit  and  carryovers  of  such  credit
allowed  under  this  subsection  for  any taxable year shall exceed the
taxpayer's tax for such year, any amount of credit or carryovers of such
credit thus not deductible in such taxable year may be carried  over  to
the  following  year  or years and may be deducted from the tax for such
year or years. In addition, the amount of such credit, and carryovers of
such credit to the taxable year, deducted from the tax otherwise due may
not, in the aggregate, exceed fifty percent of  the  tax  imposed  under
section  six  hundred one computed without regard to any credit provided
for by this section.
(B) In the case of a husband  or  wife  who  is  required  to  file  a
separate  return,  the  limitations  provided for in subparagraph (c) of
paragraph one of this subsection shall be seventy-five thousand  dollars
in  lieu  of  one  hundred fifty thousand dollars, and one hundred fifty
thousand dollars in lieu of three hundred thousand dollars,  unless  the
spouse of the taxpayer has no credit allowable under this subsection for
the taxable year of such spouse which ends within or with the taxpayer's
taxable year.
(C) In the case of an estate or trust, the limitations provided for in
paragraph  one  of  this  subsection shall be reduced to an amount which
bears the same ratio to one hundred fifty thousand dollars and an amount
which bears the same ratio to three  hundred  thousand  dollars  as  the
portion  of  the income of the estate or trust which is not allocated to
beneficiaries bears to the total income of the estate or trust.
(3) (A) Where a taxpayer sells, transfers  or  otherwise  disposes  of
corporate  stock,  a  partnership  interest  or other ownership interest
arising from the making of a qualified investment which was  the  basis,
in  whole or in part, for the allowance of the credit provided for under
subparagraph (A) of paragraph  one  of  this  subsection,  or  where  an
investment  which  was  the  basis for such allowance is, in whole or in
part, recovered by such  taxpayer,  and  such  disposition  or  recovery
occurs  during  the  taxable  year or within forty-eight months from the
close of the taxable year with respect to which such credit is  allowed,
the  taxpayer  shall add back, with respect to the taxable year in which
the disposition or  recovery  described  above  occurred,  the  required
portion of the credit originally allowed.
(B)  Where  a  taxpayer  sells,  transfers  or  otherwise  disposes of
corporate stock, a partnership  interest  or  other  ownership  interest
arising  from  the making of a qualified investment which was the basis,
in whole or in part, for the allowance of the credit provided for  under
subparagraph  (B)  of  paragraph  one  of  this  subsection, or where an
investment which was the basis for such allowance is in any  manner,  in
whole  or  in  part, recovered by such taxpayer, and such disposition or
recovery occurs during the taxable year  or  within  one  hundred  eight
months  from  the  close  of the taxable year with respect to which such
credit is allowed, the taxpayer shall add  back,  with  respect  to  the
taxable   year  in  which  the  disposition  or  recovery  described  in

subparagraph one of this paragraph occurred the required portion of  the
credit originally allowed.
(C) The required portion of the credit originally allowed shall be the
product  of  (i) the portion of such credit attributable to the property
disposed of and (ii) the applicable percentage.
(D) The applicable percentage shall be:
(i) for credits allowed pursuant to subparagraph (A) of paragraph  one
of this subsection:
(I)  one hundred percent, if the disposition or recovery occurs within
the taxable year with respect to which the credit is allowed  or  within
twelve months of the end of such taxable year,
(II)  seventy-five percent, if the disposition or recovery occurs more
than twelve but not more than twenty-four months after the  end  of  the
taxable year with respect to which the credit is allowed,
(III)  fifty  percent, if the disposition or recovery occurs more than
twenty-four months but not more than thirty-six months after the end  of
the taxable year with respect to which the credit is allowed, or
(IV)  twenty-five  percent, if the disposition or recovery occurs more
than thirty-six months but not more than forty-eight  months  after  the
end of the taxable year with respect to which the credit is allowed; or
(ii) for credits allowed pursuant to subparagraph (B) of paragraph one
of this subsection:
(I)  one hundred percent, if the disposition or recovery occurs within
the taxable year with respect to which the credit is allowed  or  within
twelve months of the end of such taxable year,
(II)  eighty  percent, if the disposition or recovery occurs more than
twelve but not more than forty-eight months after the end of the taxable
year with respect to which the credit is allowed,
(III) sixty percent, if the disposition or recovery occurs  more  than
forty-eight months but not more than seventy-two months after the end of
the taxable year with respect to which the credit is allowed,
(IV)  forty  percent,  if the disposition or recovery occurs more than
seventy-two months but not more than ninety-six months after the end  of
the taxable year with respect to which the credit is allowed, or
(V)  twenty  percent,  if the disposition or recovery occurs more than
ninety-six months but not more than one hundred eight months  after  the
end of the taxable year with respect to which the credit is allowed.
(s)  Credit  for  purchase  of  an automated external defibrillator. A
taxpayer shall be allowed a credit as hereinafter provided, against  the
tax  imposed by this article for the purchase, other than for resale, of
an automated external defibrillator, as such term is defined in  section
three thousand-b of the public health law. The amount of credit shall be
the  cost to the taxpayer of automated external defibrillators purchased
during the taxable year, such credit not to exceed five hundred  dollars
with respect to each unit purchased.
(t) College tuition credit.  (1) General. A resident taxpayer shall be
allowed  the  option of claiming a credit, to be computed as provided in
paragraph four of this subsection,  against  the  tax  imposed  by  this
article,  or  an  itemized  deduction,  to  be  computed  as provided in
paragraph four of subsection (d) of section six hundred fifteen of  this
article, for allowable college tuition expenses.
(2) Allowable and qualified college tuition expenses. For the purposes
of  this credit and the itemized deduction provided by paragraph four of
subsection (d) of section six hundred fifteen of this article:
(A) The term "allowable  college  tuition  expenses"  shall  mean  the
amount  of  qualified college tuition expenses of eligible students paid
by the taxpayer during the taxable year, limited to ten thousand dollars
for each such student;
(B)  The  term  "eligible  student"  shall  mean  the  taxpayer,   the
taxpayer's  spouse,  and  any  dependent of the taxpayer with respect to
whom the taxpayer is allowed an  exemption  under  section  six  hundred
sixteen of this article for the taxable year;
(C)  The  term  "qualified  college  tuition  expenses" shall mean the
tuition required for the enrollment or attendance of an eligible student
at an  institution  of  higher  education.  Provided,  however,  tuition
payments  made  pursuant to the receipt of any scholarships or financial
aid, or tuition required for enrollment or attendance  in  a  course  of
study  leading to the granting of a post baccalaureate or other graduate
degree, shall be excluded from  the  definition  of  "qualified  college
tuition expenses".
(D)  Expenses  paid  by  dependent.  If an exemption under section six
hundred sixteen of this article with respect to an individual is allowed
to another taxpayer for a taxable year beginning in the calendar year in
which such individual's taxable year begins,
(i) no credit under this subsection or deduction under paragraph  four
of  subsection  (d) of section six hundred fifteen of this article shall
be allowed to such individual for such individual's taxable year, and
(ii) for purposes of  such  credit  or  deduction,  qualified  college
tuition  expenses  paid  by  such  individual  during  such individual's
taxable year shall be treated as paid by such other taxpayer.
(3) Institution of higher education. For the purposes of  this  credit
and the itemized deduction provided by paragraph four of subdivision (d)
of section six hundred fifteen of this article, the term "institution of
higher  education"  shall  mean  any  institution of higher education or
business, trade, technical or other occupational school, recognized  and
approved   by  the  regents,  or  any  successor  organization,  of  the
university of the state of  New  York  or  accredited  by  a  nationally
recognized  accrediting  agency  or  association accepted as such by the
regents, or any successor organization, of the university of  the  state
of New York, which provides a course of study leading to the granting of
a post-secondary degree, certificate or diploma.
(4)  Amount  of credit. If allowable college tuition expenses are less
than five thousand dollars, the amount of the credit provided under this
subsection shall be equal to the applicable percentage of the lesser  of
allowable  college tuition expenses or two hundred dollars. If allowable
college tuition expenses are five thousand dollars or more,  the  amount
of  the  credit  provided  under  this  subsection shall be equal to the
applicable  percentage  of  the  allowable  college   tuition   expenses
multiplied   by  four  percent.  Such  applicable  percentage  shall  be
twenty-five percent for taxable years beginning  in  two  thousand  one,
fifty   percent  for  taxable  years  beginning  in  two  thousand  two,
seventy-five percent for taxable years beginning in two  thousand  three
and  one  hundred percent for taxable years beginning after two thousand
three.
(5) Refundability. The credit under this subsection shall  be  allowed
against  the  taxes imposed by this article for the taxable year reduced
by the credits permitted by this article. If the credit exceeds the  tax
as so reduced, the taxpayer may receive, and the comptroller, subject to
a  certificate of the commissioner, shall pay as an overpayment, without
interest, the amount of such excess.
(6) Limitation. No credit shall be allowed under this subsection to  a
taxpayer who claims the itemized deduction provided under paragraph four
of subdivision (d) of section six hundred fifteen of this article.
* (t-1)  IMB  credit  for  energy  taxes.  (1)  Allowance of credit. A
taxpayer which is a sole proprietor of an  industrial  or  manufacturing
business  (IMB),  or a member of a partnership which is an IMB, shall be

allowed a credit for energy taxes, to be computed as provided in section
fourteen-a of this chapter, against the tax imposed by this article.
(2)  Application  of credit. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of  tax  to  be
credited  or  refunded  in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no  interest
shall be paid thereon.
* NB Expired for taxable years ending on and after January 1, 2007
** (u)  Musical  and  theatrical  production  credit. (1) Allowance of
credit.  A taxpayer who is eligible pursuant to section twenty-four-a of
this chapter shall be allowed a credit to be  computed  as  provided  in
such section against the tax imposed by this article.
(2) Application of credit. If the amount of the credit allowable under
this subsection for any taxable year exceeds the taxpayer's tax for such
year,  the  excess  shall  be  treated  as  an  overpayment of tax to be
credited or refunded as provided in section six  hundred  eighty-six  of
this article, provided, however, that no interest shall be paid thereon.
** NB Repealed January 1, 2026
* (v) Television writers' and directors' fees and salaries credit. (1)
Allowance  of  credit.  A  taxpayer  who is eligible pursuant to section
twenty-four-b of this chapter shall be allowed a credit to  be  computed
as provided in such section against the tax imposed by this article.
(2) Application of credit. If the amount of the credit allowable under
this subsection for any taxable year exceeds the taxpayer's tax for such
year,  the  excess  shall  be  treated  as  an  overpayment of tax to be
credited or refunded as provided in section six  hundred  eighty-six  of
this article, provided, however, that no interest shall be paid thereon.
* NB  Effective  on  the first of January next succeeding the date the
department of economic development provides notice  to  the  legislative
bill  drafting commission of a determination pursuant to § 6 sb 2 (b) of
chapter 683 of 2019
(x) Low-income housing credit. (1) Allowance  of  credit.  A  taxpayer
shall  be  allowed a credit against the tax imposed by this article with
respect to the ownership of eligible low-income buildings,  computed  as
provided in section eighteen of this chapter.
(2)  Application  of  credit.  If the amount of credit allowable under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess may be carried  over  to  the  following  year  or
years,  and  may  be  deducted  from the taxpayer's tax for such year or
years.
(3) Credit recapture. For provisions requiring  recapture  of  credit,
see subdivision (b) of section eighteen of this chapter.
(y)  Green  building credit. (1) Allowance of credit. A taxpayer shall
be allowed a credit, to be computed as provided in section  nineteen  of
this chapter, against the tax imposed by this article.
(2)  Carryovers.  If  the  amount of the credit and carryovers of such
credit allowed under this subsection for any taxable year  shall  exceed
the taxpayer's tax for such year, the excess, as well as any part of the
credit or carryovers of such credit, or both, may be carried over to the
following  year or years and may be deducted from the taxpayer's tax for
such year or years.
(z) Credit for transportation improvement contributions. (1) Allowance
of credit. A taxpayer shall be allowed  a  credit,  to  be  computed  as
provided  in  section twenty of this chapter, against the tax imposed by
this article.
(2) Application of credit. If the amount of the credit  allowed  under
this subsection for any taxable year shall exceed the taxpayer's tax for

such  year,  the  excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions  of  section  six
hundred  eighty-six of this article, provided, however, that no interest
shall be paid thereon.
(3)  Credit  recapture.  For provisions requiring recapture of credit,
see subdivision (c) of section twenty of this chapter.
(aa) Long-term care insurance credit. (1) Residents.  There  shall  be
allowed  a  credit  against the tax imposed by this article in an amount
equal to twenty percent of the premiums paid during the taxable year for
long-term care  insurance.  The  credit  amount  shall  not  exceed  one
thousand five hundred dollars and shall be allowed only if the amount of
New  York adjusted gross income required to be reported on the return is
less than two hundred fifty thousand dollars. In order  to  qualify  for
such  credit, the taxpayer's premium payment must be for the purchase of
or for continuing coverage under a long-term care insurance policy  that
qualifies  for  such credit pursuant to section one thousand one hundred
seventeen of the insurance law. If the amount of  the  credit  allowable
under  this  subsection for any taxable year shall exceed the taxpayer's
tax for such year, the excess may be carried over to the following  year
or  years  and  may be deducted from the taxpayer's tax for such year or
years.
(2) Nonresidents and part-year residents. In the case of a nonresident
taxpayer or a part-year resident taxpayer, the credit  determined  under
this subsection shall be limited to the amount determined by multiplying
the  amount  of such credit by the New York source fraction as set forth
in paragraph three of subsection (e) of section six hundred one of  this
article.  The  credit  as  so  limited  shall  be applied as provided in
paragraph one of this subsection.
(bb) QEZE credit for real property taxes. (1) Allowance of  credit.  A
taxpayer  which  is  a  sole  proprietor  of  a  qualified  empire  zone
enterprise (QEZE), or a member of a partnership which is a  QEZE,  shall
be  allowed a credit for eligible real property taxes, to be computed as
provided in section fifteen of this chapter, against the tax imposed  by
this article.
(2)  Application  of credit. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of  tax  to  be
credited  or  refunded  in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no  interest
shall be paid thereon.
(cc)  QEZE tax reduction credit. Allowance of credit. A taxpayer which
is a sole proprietor of a qualified empire zone enterprise (QEZE), or  a
member  of  a  partnership  which is a QEZE, shall be allowed a QEZE tax
reduction credit against the tax imposed by subsections (a) through  (e)
of section six hundred one of this part.
(dd)  Brownfield  redevelopment tax credit. (1) Allowance of credit. A
taxpayer shall be allowed a  credit,  to  be  computed  as  provided  in
section  twenty-one  of  this  chapter,  against the tax imposed by this
article.
(2) Application of credit. If the amount of the credit  allowed  under
this subsection for any taxable year shall exceed the taxpayer's tax for
such  year,  the  excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions  of  section  six
hundred  eighty-six of this article, provided, however, that no interest
shall be paid thereon.
(ee)  Remediated  brownfield  credit  for  real  property  taxes   for
qualified  sites.
(1)  Allowance  of  credit.  A  taxpayer which is a
developer of a qualified site shall be allowed  a  credit  for  eligible

real  property  taxes,  to be computed as provided in subdivision (b) of
section twenty-two of this chapter, against  the  tax  imposed  by  this
article. For purposes of this subsection, the terms "qualified site" and
"developer"  shall  have the same meaning as set forth in paragraphs two
and three, respectively, of subdivision (a)  of  section  twenty-two  of
this chapter.
(2)  Application  of credit. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of  tax  to  be
credited  or  refunded  in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no  interest
shall be paid thereon.
(ff)  Environmental  remediation  insurance  credit.  (1) Allowance of
credit. A taxpayer shall be allowed a credit, to be computed as provided
in section twenty-three of this chapter, against the tax imposed by this
article.
(2) Application of credit. If the amount of the credit  allowed  under
this subsection for any taxable year shall exceed the taxpayer's tax for
such  year,  the  excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions  of  section  six
hundred  eighty-six of this article, provided, however, that no interest
shall be paid thereon.
(gg) Empire state film production credit. (1) Allowance of  credit.  A
taxpayer who is eligible pursuant to section twenty-four of this chapter
shall  be  allowed  a  credit to be computed as provided in such section
twenty-four against the tax imposed by this article.
(2) Application of credit. If the amount of the credit allowable under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, the excess shall be  treated  as  an  overpayment  of  tax  to  be
credited  or  refunded  as provided in section six hundred eighty-six of
this article, provided, however, that no interest shall be paid thereon.
(hh) Nursing home  assessment  credit.  (1)  Allowance  of  credit.  A
taxpayer  shall  be  allowed  a  credit  against the tax imposed by this
article equal to the amount that  directly  relates  to  the  assessment
imposed  on a residential health care facility pursuant to paragraph (b)
of subdivision two of section twenty-eight hundred seven-d of the public
health law which is separately stated and accounted for on  the  billing
statement  of  a  resident  of a residential health care facility and is
paid directly by the individual taxpayer.
(2) Application of credit. If the amount of the credit  allowed  under
this subsection for any taxable year shall exceed the taxpayer's tax for
such  year,  the  excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions  of  section  six
hundred  eighty-six of this article, provided, however, that no interest
shall be paid thereon.
(ii) Security training tax credit. (1) Allowance of credit. A taxpayer
shall be allowed a  credit,  to  be  computed  as  provided  in  section
twenty-six of this chapter, against the tax imposed by this article.
(2)  Application  of credit. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of  tax  to  be
credited  or  refunded  in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no  interest
shall be paid thereon.
* (jj)  Empire  state  commercial production credit.  (1) Allowance of
credit. A taxpayer that  is  eligible  pursuant  to  the  provisions  of
section  twenty-eight  of  this  chapter shall be allowed a credit to be
computed as provided in such section against the  tax  imposed  by  this

article.  The tax credit allowed pursuant to this section shall apply to
taxable years beginning before January first, two thousand twenty-nine.
(2) Application of credit. If the amount of the credit allowable under
this subsection for any taxable year exceeds the taxpayer's tax for such
year,  fifty percent of the excess shall be treated as an overpayment of
tax to be credited or  refunded  as  provided  in  section  six  hundred
eighty-six  of  this article, provided, however, that no interests shall
be paid thereon. The balance of such credit not credited or refunded  in
such  taxable  year  may  be  carried over to the immediately succeeding
taxable year and may be deducted from the taxpayer's tax for such  year.
The  excess,  if  any, of the amount of the credit over the tax for such
succeeding year shall be treated as an overpayment of tax to be credited
or refunded as provided  in  section  six  hundred  eighty-six  of  this
article, provided, however, that no interest shall be paid thereon.
* NB There are 2 sb (jj)'s
* (jj) Biofuel production credit. A taxpayer shall be allowed a credit
to  be  computed as provided in section twenty-eight of this chapter, as
added by part X of chapter sixty-two of the laws of  two  thousand  six,
against  the  tax  imposed  by this article. If the amount of the credit
allowed under this subsection for any  taxable  year  shall  exceed  the
taxpayer's  tax  for  such  year,  the  excess  shall  be  treated as an
overpayment of tax to be credited or refunded  in  accordance  with  the
provisions  of section six hundred eighty-six of this article, provided,
however, that no interest shall be paid thereon. The tax credit  allowed
pursuant  to  this section shall apply to taxable years beginning before
January first, two thousand twenty.
* NB There are 2 sb (jj)'s
(kk) Conservation easement tax credit. (1) Credit allowed. In the case
of a taxpayer who owns land that is subject to a  conservation  easement
held  by a public or private conservation agency, there shall be allowed
a credit for twenty-five  percent  of  the  allowable  school  district,
county  and town real property taxes on such land. In no event shall the
credit allowed under this  subsection  in  combination  with  any  other
credit  for  such  school  district, county and town real property taxes
under this section exceed such taxes.
(2) Conservation easement. For purposes of this subsection,  the  term
"conservation  easement"  means  a  perpetual and permanent conservation
easement  as  defined  in  article  forty-nine  of   the   environmental
conservation  law  that  serves  to  protect open space, scenic, natural
resources,  biodiversity,  agricultural,   watershed   and/or   historic
preservation resources. Any conservation easement for which a tax credit
is  claimed  under this subsection shall be filed with the department of
environmental conservation, as provided for in article forty-nine of the
environmental conservation law  and  such  conservation  easement  shall
comply  with  the  provisions  of  title  three of such article, and the
provisions of subdivision (h) of section 170  of  the  internal  revenue
code.  Dedications  of  land  for  open  space  through the execution of
conservation  easements  for   the   purpose   of   fulfilling   density
requirements  to  obtain  subdivision  or  building permits shall not be
considered a conservation easement under this subsection.
(3) Land. For purposes of this subsection, the term "land" means a fee
simple title to real property located in this  state,  with  or  without
improvements   thereon;  rights  of  way;  water  and  riparian  rights;
easements; privileges and all other rights or interests of any  land  or
description  in,  relating to or connected with real property, excluding
buildings, structures, or improvements.
(4) Public or  private  conservation  agency.  For  purposes  of  this
subsection,  the  term "public or private conservation agency" means any

state,  local,  or   federal   governmental   body;   or   any   private
not-for-profit charitable corporation or trust which is authorized to do
business  in the state of New York, is organized and operated to protect
land  for  natural  resources,  conservation  or  historic  preservation
purposes, is exempt from federal income taxation under section 501(c)(3)
of the internal revenue code, and has the power  to  acquire,  hold  and
maintain land and/or interests in land for such purposes.
(5) Credit limitation. The amount of the credit that may be claimed by
a  taxpayer  pursuant  to this subsection shall not exceed five thousand
dollars in any given year.
(6) Application of the credit. If the amount of the credit under  this
subsection for any taxable year shall exceed the taxpayer's tax for such
year,  the  excess  shall  be  treated  as  an  overpayment of tax to be
credited or refunded in accordance with the provisions  of  section  six
hundred  eighty-six of this article, provided, however, that no interest
shall be paid therein.
(ll)  Home  heating  system  credit.  (1)  Allowance  of  credit   for
replacement.  A  taxpayer  shall  be  allowed  a  credit against the tax
imposed by this article for costs incurred on or after July  first,  two
thousand  six  and  before  July first, two thousand seven by a taxpayer
which are directly associated with the replacement of an  existing  home
heating  system, in his or her principal residence, if such residence is
located in this state, provided such  home  heating  system  after  such
replacement  qualifies for, and is labeled with, an Energy Star label by
the manufacturer, pursuant to an agreement among the  manufacturer,  the
United  States  environmental  protection  agency  and the United States
department of energy. The amount of the credit shall be equal  to  fifty
percent of the cost of such replacement but such credit shall not exceed
five hundred dollars.
(2) Multiple taxpayers. If the principal residence is shared by two or
more taxpayers, the amount of the credit allowable under this subsection
for  each  such  eligible  taxpayer  shall  be prorated according to the
percentage of the total expenditure for  such  replacement  incurred  by
each taxpayer.
(3)  Application  of credit. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of  tax  to  be
credited  or  refunded  in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no  interest
shall be paid thereon.
(mm)  Clean  heating  fuel credit.   (1) A taxpayer shall be allowed a
credit against the tax imposed by  this  article.  Such  credit,  to  be
computed  as hereinafter provided, shall be allowed for bioheating fuel,
used for space heating or hot water production for residential  purposes
within this state and purchased on or after July first, two thousand six
and before July first, two thousand seven and on or after January first,
two  thousand  eight  and before January first, two thousand twenty-six.
Such credit shall be $0.01  per  percent  of  biodiesel  per  gallon  of
bioheating  fuel,  not  to  exceed twenty cents per gallon, purchased by
such taxpayer. Provided, however, that on or after  January  first,  two
thousand  seventeen, this credit shall not apply to bioheating fuel that
is less than six percent biodiesel per gallon of bioheating fuel.
(2) For purposes of this subsection, the following  definitions  shall
apply:
(a)  "Biodiesel" shall mean a fuel comprised exclusively of mono-alkyl
esters of long chain fatty acids derived from vegetable oils  or  animal
fats,  designated  B100,  which  meets  the  specifications  of American
Society of Testing and Materials designation D 6751.
(b) "Bioheating fuel" shall mean a  fuel  comprised  of  biodiesel  or
renewable hydrocarbon diesel blended with conventional home heating oil,
which  meets  the  specifications of the American Society of Testing and
Materials designation D 396 or D 975.
(3)  If the amount of the credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year,  the  excess
shall  be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(nn) Qualified emerging technology company facilities, operations  and
training  credit. (1) A taxpayer that is a qualified emerging technology
company pursuant to the provisions of section thirty-one  hundred  two-e
(and  specifically  for  the  activities  referenced in paragraph (b) of
subdivision one of such section thirty-one hundred two-e) of the  public
authorities   law,  and  that  meets  the  eligibility  requirements  in
paragraph two of this subsection, shall be allowed a credit against  the
tax  imposed by this article. The amount of credit shall be equal to the
sum (or pro rata share of the sum in the case of a partnership)  of  the
amounts   specified   in  paragraphs  three,  four,  and  five  of  this
subsection,  subject  to  the  limitations  in  paragraph  six  of  this
subsection.
(2)  An  eligible  taxpayer  shall  (i)  have no more than one hundred
full-time employees, of which at least seventy-five percent are employed
in New York state,
(ii) have a ratio of research and development funds to net  sales,  as
referred   to   in  section  thirty-one  hundred  two-e  of  the  public
authorities law, which equals or exceeds six percent during its  taxable
year, and
(iii)  have  gross  revenues,  along  with  the  gross revenues of its
affiliates and related members, not exceeding twenty million dollars for
the taxable year immediately preceding the year the taxpayer is  allowed
a credit under this subsection. For purposes of this paragraph, the term
"related member" shall have the same meaning as set forth in clauses (A)
and (B) of subparagraph one of paragraph (o) of subdivision 9 of section
two  hundred eight of this chapter, and the term "affiliates" shall mean
those corporations that are members of the  same  affiliated  group  (as
defined in section fifteen hundred four of the internal revenue code) as
the taxpayer.
(3)  An  eligible  taxpayer shall be allowed a credit for eighteen per
centum of the cost or other basis for federal  income  tax  purposes  of
research  and  development  property  as  defined in subparagraph (B) of
paragraph two of subsection (a) of this section that is acquired by  the
taxpayer  by  purchase  as  defined  in  section  179(d) of the internal
revenue code and is placed in service during the taxable year. Provided,
however, for the purposes of this paragraph only, an  eligible  taxpayer
shall  be  allowed a credit for such percentage of the (i) cost or other
basis for federal income purposes for property used in  the  testing  or
inspection of materials and products,
(ii)  the  costs  or  expenses  associated with quality control of the
research and development,
(iii)  fees  for  use  of  sophisticated  technology  facilities   and
processes, and
(iv)  fees  for  production  or  eventual  commercial  distribution of
materials and products resulting from  the  activities  of  an  eligible
taxpayer  as long as such activities fall under the activities listed in
paragraph (b) of subdivision one of section thirty-one hundred two-e  of
the  public  authorities  law. The costs, expenses and other amounts for

which a credit is allowed and claimed under this paragraph shall not  be
used in the calculation of any other credit allowed under this article.
(4)  An eligible taxpayer shall be allowed a credit for nine percentum
of "qualified research expenses", paid or incurred by  the  taxpayer  in
the  taxable  year.  "Qualified  research  expenses" shall mean expenses
associated with  in-house  research,  use  of  sophisticated  technology
facilities and processes, and costs associated with the dissemination of
the  results of the products that directly result from such research and
development activities; provided, however, that  such  costs  shall  not
include  advertising  or  promotion  through  media.  In addition, costs
associated  with  the  preparation  of   patent   applications,   patent
application filing fees, patent research fees, patent examinations fees,
patent   post   allowance  fees,  patent  maintenance  fees,  and  grant
application expenses and fees shall be eligible for such credit.  In  no
case  shall  the  credit allowed by this paragraph apply to expenses for
litigation or the challenge of another  entity's  intellectual  property
rights, or for contract expenses involving outside paid consultants.
(5)  An  eligible  taxpayer  shall  be  allowed a credit for qualified
high-technology training expenditures as  described  in  this  paragraph
paid or incurred by the taxpayer.
(a)  The amount of credit shall be one hundred percent of the training
expenses described in subparagraph (c) of this paragraph, subject  to  a
limitation  of  no more than four thousand dollars per employee per year
for such training expenses.
(b) Qualified high-technology  training  shall  include  a  course  or
courses  taken  and  satisfactorily  completed  by  an  employee  of the
taxpayer at an accredited, degree  granting  post-secondary  college  or
university in New York state that
(i) directly relates to the activities referred to in paragraph (b) of
subdivision  one  of  section  thirty-one  hundred  two-e  of the public
authorities law, and
(ii) is intended to upgrade, retrain or improve  the  productivity  or
theoretical  awareness  of  the  employee.  Such  course  or courses may
include, but are not limited to, instruction  or  research  relating  to
techniques,  meta,  macro,  or  micro-theoretical or practical knowledge
bases or frontiers, or ethical concerns related to such activities. Such
course or courses shall  not  include  classes  in  the  disciplines  of
management,  accounting  or the law or any class designed to fulfill the
discipline specific requirements of a degree program at  the  associate,
baccalaureate,  graduate  or  professional  level  of these disciplines.
Satisfactory completion of a course or courses shall  mean  the  earning
and  granting  of  credit  or  equivalent unit, with the attainment of a
grade of "B" or higher in a graduate level course or courses, a grade of
"C" or higher in an undergraduate level course or courses, or a  similar
measure  of  competency for a course that is not measured according to a
standard grade formula.
(c) Qualified  high-technology  training  expenditures  shall  include
expenses  for  tuition  and mandatory fees, and software required by the
institution, fees for textbooks or  other  literature  required  by  the
institution   offering   the   course   or   courses,  minus  applicable
scholarships and tuition or fee waivers not granted by the  taxpayer  or
any  affiliate  of  the  taxpayer,  paid  or reimbursed by the taxpayer.
Qualified high technology expenditures do not include  room  and  board,
computer  hardware or software not specifically assigned for such course
or courses, late-charges, fines or membership dues and similar expenses.
Such qualified expenditures shall not be eligible for the credit allowed
by this subsection unless the employee for  whom  the  expenditures  are
disbursed  is  continuously  employed  by  the  taxpayer in a full-time,

full-year position primarily located at  a  qualified  site  during  the
period  of  such coursework and lasting through at least one hundred and
eighty  days  after  the  satisfactory  completion  of  the   qualifying
course-work.  Qualified  high-technology training expenditures shall not
include expenses for in house or shared training outside of a  New  York
state  higher education institution or the use of consultants outside of
credit granting courses whether such consultants function inside of such
higher education institution or not.
(d) If a  taxpayer  relocates  from  an  academic  business  incubator
facility   partnered   with   an   accredited  post-secondary  education
institution located within New York  state,  which  provides  space  and
business  support  services  to  taxpayers,  to another site, the credit
provided in this  subsection  shall  be  allowed  for  all  expenditures
referenced in subparagraph (c) of this paragraph paid or incurred in the
two  preceding  taxable  years  that the taxpayer was located in such an
incubator facility for employees of the taxpayer who also relocate  from
said  incubator  facility  to  such  New  York site and are employed and
primarily located by the taxpayer in New York. Such expenditures in  the
two  preceding  years shall be added to the amounts otherwise qualifying
for the credit provided by this subsection that were paid or incurred in
the taxable year that the taxpayer relocated from such a facility.  Such
expenditures  shall  include  expenses  paid or incurred for an eligible
employee who is a full-time, full-year employee of said taxpayer  during
the  taxable year that the taxpayer relocated from an incubator facility
notwithstanding (i) that such employee was employed full or part-time as
an officer, staff-person or  paid  intern  of  the  taxpayer  when  such
taxpayer  was  located  at  such  incubator  facility  or (ii) that such
employee was not continuously employed when such taxpayer was located at
the  incubator  facility  during  the  one  hundred  eighty  day  period
referenced in subparagraph (c) of this paragraph, provided such employee
received  wages  or  equivalent  income for at least seven hundred fifty
hours during any twenty-four month period when the taxpayer was  located
at the incubator facility. Such expenditures shall include payments made
to  such an employee after the taxpayer has relocated from the incubator
facility for  qualified  expenditures  if  such  payments  are  made  to
reimburse  such  an  employee  for  qualified  expenditures  paid by the
employee during such two preceding years. The credit provided under this
subparagraph shall be allowed, in any year that said taxpayer  qualifies
as an eligible taxpayer.
(e)  For  purposes  of  this subsection the term "academic year" shall
mean the annual period  of  sessions  of  a  post-secondary  college  or
university.
(f)  For  the purposes of this subsection the term "academic incubator
facility" shall mean a  facility  providing  low-cost  space,  technical
assistance,  support  services  and educational opportunities, including
but not limited to central services  provided  by  the  manager  of  the
facility  to  the  tenants  of the facility, to an entity located in New
York state. Such entity's primary activity must be an activity described
in paragraph (b) of subdivision one of section thirty-one hundred  two-e
of  the public authorities law, and such entity must be in the formative
stage of development. The academic incubator  facility  and  the  entity
must  act  in  partnership  with an accredited post-secondary college or
university located in New York state. An academic  incubator  facility's
mission  shall  be to promote job creation, entrepreneurship, technology
transfer, and provide support services to incubator tenants,  including,
but   not   limited   to,   business  planning,  management  assistance,
financial-packaging, linkages to financing  services,  and  coordinating
with other sources of assistance.
(6)  An  eligible taxpayer may claim credits under this subsection for
four consecutive taxable years, except, if a taxpayer is located  in  an
academic  incubator  facility  and  relocates within New York state to a
nonacademic incubator site, then the taxpayer (i) may make  a  revocable
election to defer the credit provided under this subsection to the first
taxable  year  beginning  after  the taxpayer relocates from an academic
incubator facility, and (ii) shall be eligible for such credit for  five
consecutive  years.  In  no  case  shall  the  credit  allowed  by  this
subsection to a taxpayer exceed two hundred fifty thousand  dollars  per
year.  If the taxpayer is a partner in a partnership or shareholder of a
New York S corporation, then the limit imposed by the preceding sentence
shall be applied at the entity  level,  so  that  the  aggregate  credit
allowed  to  all the partners or shareholders of each such entity in the
taxable year does not exceed two hundred fifty thousand dollars.
(7) If the amount of credit allowed  under  this  subsection  for  any
taxable  year  shall exceed the taxpayer's tax for such year, the excess
shall be treated as an overpayment of tax to be credited or refunded  in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(8)  The  credit allowed under this subsection shall not be applicable
for taxable years beginning on or  after  January  first,  two  thousand
twelve.
(oo)  Credit  for  rehabilitation  of historic properties. (1) (A) For
taxable years beginning on or after January first, two thousand ten  and
before January first, two thousand 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 or a shareholder  of
a  New  York  S corporation, then the credit cap imposed in subparagraph
(A) of this paragraph shall be applied at the entity level, so that  the
aggregate  credit  allowed  to  all the partners or shareholders of each
such entity in the taxable year does not exceed the credit cap  that  is
applicable in that taxable year.
(2)  Tax  credits allowed pursuant to this subsection shall be allowed
in the taxable year that  the  qualified  rehabilitation  is  placed  in
service under section 167 of the federal internal revenue code.
(3)  If the taxpayer is allowed a credit pursuant to section 47 of the
internal revenue code with respect to a qualified rehabilitation that is
also the subject of the credit  allowed  by  this  subsection  and  that
credit  pursuant to such section 47 is recaptured pursuant to subsection
(a) of section 50 of the internal revenue code, a portion of the  credit

allowed  under  this  subsection  must be added back in the same taxable
year and in the same proportion as the federal recapture.
(4)  If the amount of the credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year,  the  excess
shall  be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(5)  Except  in  the  case  of  a  qualified  rehabilitation   project
undertaken within a state park, state historic site, or other land owned
by  the  state,  that  is under the jurisdiction of the office of parks,
recreation and historic preservation, to  be  eligible  for  the  credit
allowable  under  this subsection the rehabilitation project shall be in
whole or in part located within a census tract which  is  identified  as
being  at or below one hundred percent of the state median family income
as calculated as of April first of each year using the most recent  five
year estimate from the American community survey published by the United
States  Census bureau. If there is a change in the most recent five year
estimate, a census tract  that  qualified  for  eligibility  under  this
program  before  information  about  the change was released will remain
eligible for a credit  under  this  subsection  for  an  additional  two
calendar years.
(6)  For  purposes  of  this subsection the term "small project" means
qualified rehabilitation expenditures totaling two million five  hundred
thousand dollars or less.
(pp)  Historic  homeownership  rehabilitation  credit. (1) For taxable
years beginning on  or  after  January  first,  two  thousand  seven,  a
taxpayer  shall  be  allowed  a  credit,  to  be computed as hereinafter
provided, against the tax imposed by this article.  The  amount  of  the
credit  shall be equal to twenty percent of the qualified rehabilitation
expenditures made by the taxpayer with respect to a  qualified  historic
home  and  may  be  allowed  in  the  taxable  year  in  which the final
certification step of the certified rehabilitation is completed.
(A) If such expenditures relate only  to  exterior  work,  the  credit
shall  be  allowed  for  qualified  rehabilitation  expenditures  if the
exterior  work  has  been  approved  by  a  local  landmark   commission
established  pursuant to section ninety-six-a or one hundred nineteen-dd
of the general municipal law or by the office of parks,  recreation  and
historic preservation.
(B)  If  such  expenditures relate to both exterior and interior work,
the credit shall be allowed for  qualified  rehabilitation  expenditures
that  have been approved by the office of parks, recreation and historic
preservation or by a local  government  certified  pursuant  to  section
101(c)(1)   of  the  national  historic  preservation  act.  Under  this
subparagraph, approval is necessary  for  the  qualified  rehabilitation
expenditures related to both the exterior work on the qualified historic
home  and interior work affecting primary significant historic spaces of
the qualified historic home.
(2) (A) With respect to any particular residence of  a  taxpayer,  the
credit  allowed  under paragraph one of this subsection shall not exceed
fifty thousand dollars for taxable years beginning on or  after  January
first,   two  thousand  ten  and  before  January  first,  two  thousand
twenty-five and twenty-five thousand dollars for taxable years beginning
on or after January first, two thousand twenty-five. In the  case  of  a
husband and wife, the amount of the credit shall be divided between them
equally  or  in  such other manner as they may both elect. If a taxpayer
incurs qualified rehabilitation expenditures in relation  to  more  than
one residence in the same year, the total amount of credit allowed under
paragraph  one  of  this  subsection for all such expenditures shall not

exceed fifty thousand dollars for taxable years beginning  on  or  after
January  first,  two thousand ten and before January first, two thousand
twenty-five and twenty-five thousand dollars for taxable years beginning
on or after January first, two thousand twenty-five.
(B)  For  taxable  years  beginning  on  or  after  January first, two
thousand ten and before January first, two thousand twenty-five, if  the
amount  of  credit  allowable  under  this  subsection  shall exceed the
taxpayer's tax for such year, and the taxpayer's New York adjusted gross
income for such year does not exceed sixty thousand dollars, the  excess
shall  be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid  thereon.  If
the  taxpayer's  New  York  adjusted  gross income for such year exceeds
sixty thousand dollars, the excess credit that may be  carried  over  to
the  following year or years and may be deducted from the taxpayer's tax
for such year or years. For taxable years beginning on or after  January
first, two thousand twenty-five, if the amount of credit allowable under
this  subsection  shall  exceed  the  taxpayer's  tax for such year, the
excess may be carried over to the following year or  years  and  may  be
deducted from the taxpayer's tax for such year or years.
(3)(A)  The  term  "qualified  rehabilitation  expenditure" means, for
purposes of this subsection, any amount properly chargeable to a capital
account:
(i) in connection with the certified  rehabilitation  of  a  qualified
historic home, and
(ii)  for  property  for  which  depreciation would be allowable under
section 168 of the internal revenue code if the qualified historic  home
were used in a trade or business.
(B) Such term shall not include (i) the cost of acquiring any building
or   interest   therein,   (ii)  any  expenditure  attributable  to  the
enlargement of an existing building, or (iii) any expenditure made prior
to January first, two thousand seven.
(C) Such term shall not include any expenditure in connection with the
rehabilitation of a qualified historic home unless at least five percent
of the  total  expenditures  made  in  the  rehabilitation  process  are
allocable to the rehabilitation of the exterior of such building.
(D)  If  only  a  portion  of a building is used as a residence of the
taxpayer, only qualified rehabilitation expenditures which are  properly
allocable  to such residential portion shall be taken into account under
this subsection.
(4)(A) The term "certified rehabilitation" means, for purposes of this
subsection, any rehabilitation of a certified historic  structure  which
has  been  approved and certified as being consistent with the standards
established by  the  commissioner  of  parks,  recreation  and  historic
preservation  for  rehabilitation by the office of parks, recreation and
historic preservation, a local government certified pursuant to  section
101(c)(1)  of the national historic preservation act or a local landmark
commission established pursuant to section ninety-six-a or  one  hundred
nineteen-dd of the general municipal law.
(B) A certified rehabilitation shall require:
(i)  an  initial certification that the structure meets the definition
of the term "certified historic structure";
(ii) a second certification,  to  be  issued  prior  to  construction,
certifying  that  the  proposed  rehabilitation  work is consistent with
standards established by  the  commissioner  of  parks,  recreation  and
historic preservation for rehabilitation; and
(iii)  a  final  certification  issued when construction is completed,
certifying that the work was completed as proposed and  that  the  costs

are  consistent  with the work completed. Such final certification shall
be  acceptable  as  proof  that  the  expenditures   related   to   such
construction   qualify  as  qualified  rehabilitation  expenditures  for
purposes  of  the credit allowed under either subparagraph (A) or (B) of
paragraph one of this subsection.
(5)(A) The term "qualified historic home" means, for purposes of  this
subsection,  a  certified  historic  structure  located  within New York
state:
(i) which has been substantially rehabilitated,
(ii) which, or any portion of which, is owned, in whole  or  part,  by
the taxpayer,
(iii)  in  which the taxpayer resides during the taxable year in which
the taxpayer is allowed a credit under this subsection, and
(iv) (1) which is in whole or in part a targeted area residence within
the meaning of section 143(j) of the internal revenue code;  or  (2)  is
located  within  a census tract which is identified as being at or below
one hundred percent of the state median family income in the most recent
federal census; or (3) which is located in a city with a  population  of
less  than one million with a poverty rate greater than fifteen percent,
rounded to the nearest whole  number,  in  the  most  recent  five  year
estimate  from  the  American  community  survey published by the United
States census bureau.
(B)  A  building  shall  be  treated  as  having  been  "substantially
rehabilitated"  if the qualified rehabilitation expenditures in relation
to such building total five thousand dollars or more.
(6) The term "certified historic structure"  means,  for  purposes  of
this subsection, any building (and its structural components) which:
(i) is listed in the state or national register of historic places, or
(ii)  is  located  in a state or national registered historic district
and is certified as being of historic significance to the district.
(7)  If  the  taxpayer  holds  stock  as  a  tenant-shareholder  in  a
cooperative  housing  corporation,  such  taxpayer  shall  be treated as
owning the house or apartment which the taxpayer is entitled  to  occupy
as such shareholder.
(8)(A)   A   percentage   of   the  total  expenditures  made  in  the
rehabilitation of the exterior of a building containing  cooperative  or
condominium  dwelling units shall be attributed to each such unit within
the building based on the percentage of space each  such  unit  occupies
within the building.
(B)  In  the case of a building where less than the entire building is
used as a residence of the taxpayer,  only  the  portion  of  the  total
expenditures  made  in  the  rehabilitation  of  the  building  that  is
attributable to the residence  of  the  taxpayer  shall  be  treated  as
qualified   rehabilitation   expenditures   for  the  purposes  of  this
subsection.
(C) In the case of a building that is owned by and is a  residence  of
two  or  more persons, other than a husband and wife, the portion of the
total expenditures made in the rehabilitation of the  building  that  is
attributable  to each taxpayer shall be equal to the taxpayer's share of
ownership in such building.
(9) In the case of a building other than a building to which paragraph
ten of this subsection applies,  qualified  rehabilitation  expenditures
shall  be treated for purposes of this subsection as made on the date of
the final certification referred to in clause (iii) of subparagraph  (B)
of paragraph four of this subsection.
(10)(A)  In  the  case  of  a  purchased  qualified historic home, the
taxpayer shall be treated as having made, on the date of  purchase,  the
qualified  rehabilitation  expenditures made by the seller of such home.

For purposes of this subsection, expenditures made by the  seller  shall
be deemed qualified rehabilitation expenditures if such expenditures, if
made by the purchaser, would have so qualified.
(B)  The  term "purchased qualified historic home" means any qualified
historic home purchased by the taxpayer if:
(i) the taxpayer is the first purchaser of such home after the date of
the final certification referred to in clause (iii) of subparagraph  (B)
of  paragraph  four  of  this subsection, and the purchase occurs within
five years after such date,
(ii) the taxpayer, during the taxable year in which  the  taxpayer  is
allowed a credit under this subsection, resides in such home,
(iii)  no  credit was allowed to the seller under this subsection with
respect to such rehabilitation, and
(iv)  the  taxpayer  is  furnished  with  such  information   as   the
commissioner  determines is necessary to determine any credit under this
subsection.
(11)(A) If, before the end of the two-year period beginning either  on
the  date  of  the  final  certification  referred to in clause (iii) of
subparagraph (B) of paragraph four of this subsection or,  if  paragraph
ten of this subsection applies, on the date of purchase of such building
by  the  taxpayer,  the taxpayer disposes of such taxpayer's interest in
such building, or such building ceases to be used as a residence of  the
taxpayer,  the  taxpayer's  tax  imposed by this article for the taxable
year in which such disposition or cessation occurs shall be increased by
the recapture portion of the credit allowed under  this  subsection  for
all prior taxable years with respect to such rehabilitation.
(B)  For purposes of subparagraph (A) of this paragraph, the recapture
portion shall be the product of the amount  of  credit  claimed  by  the
taxpayer  multiplied  by  a  ratio,  the  numerator of which is equal to
twenty-four less the number of  months  the  building  is  used  as  the
taxpayer's residence and the denominator of which is twenty-four.
(12) Nothing contained in this subsection shall be construed to impose
a  duty upon a local landmark commission established pursuant to section
ninety-six-a or one hundred nineteen-dd of the general municipal law  or
a  local  government  certified  pursuant  to  section  101(c)(1) of the
national historic preservation act to undertake any review  or  approval
of  an  application  for  the  certification  of  the  rehabilitation of
historic structures and of rehabilitation expenditures provided  for  in
this subsection.
* (qq) Excelsior jobs program credit. (1) A taxpayer will be allowed a
credit,  to the extent allowed under section thirty-one of this chapter,
against the tax imposed by this article.
(2) Application of credit. If the amount of the credit  allowed  under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, the excess will be treated as an overpayment of tax to be credited
or  refunded  in  accordance  with the provisions of section six hundred
eighty-six of this article, provided, however, that no interest will  be
paid thereon.
* NB There are 3 sb§ (qq)'s
* (qq)  Empire  state  film  post  production credit. (1) Allowance of
credit. A taxpayer who is eligible pursuant  to  section  thirty-one  of
this  chapter  shall  be  allowed a credit to be computed as provided in
such section thirty-one against the tax imposed by this article.
(2) Application of credit. If the amount of the credit allowable under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, fifty percent of the excess shall be treated as an overpayment  of
tax  to  be  credited  or  refunded in accordance with the provisions of
section one thousand eighty-six of this chapter. Provided, however,  the

provisions  of  subsection  (c)  of section one thousand eighty-eight of
this chapter notwithstanding, no interest shall  be  paid  thereon.  The
balance of such credit not credited or refunded in such taxable year may
be  carried  over  to the immediately succeeding taxable year and may be
deducted from the taxpayer's tax for such year. The excess, if  any,  of
the  amount of the credit over the tax for such succeeding year shall be
treated as  an  overpayment  of  tax  to  be  credited  or  refunded  in
accordance  with  the  provisions  of section one thousand eighty-six of
this chapter. Provided, however, the provisions  of  subsection  (c)  of
section  one  thousand  eighty-eight of this chapter notwithstanding, no
interest shall be paid thereon.
* NB There are 3 sb§ (qq)'s
* (qq) Temporary deferral nonrefundable payout credit.  (1)  Allowance
of  credit.  A  taxpayer  shall  be  allowed a credit, to be computed as
provided in subdivision one of  section  thirty-four  of  this  chapter,
against the tax imposed by this article.
(2)  If  the  amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year,  the  excess
may  be carried over to the following year or years, and may be deducted
from the taxpayer's tax for such year or years.
* NB There are 3 sb§ (qq)'s
(rr) Temporary deferral refundable payout  credit.  (1)  Allowance  of
credit. A taxpayer shall be allowed a credit, to be computed as provided
in  subdivision  two of section thirty-four of this chapter, against the
tax imposed by this article.
(2) Application of credit. If the amount of the credit  allowed  under
this subsection for any taxable year shall exceed the taxpayer's tax for
such  year,  the  excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions  of  section  six
hundred  eighty-six of this article, provided, however, that no interest
shall be paid thereon.
* (ss) Economic transformation and facility redevelopment program  tax
credit.  (1)  Allowance of credit. A taxpayer shall be allowed a credit,
to the extent allowed under section thirty-five of this chapter, against
the tax imposed by this article.
(2) Application of credit. If the amount of the credit  allowed  under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, the excess will be treated as an overpayment of tax to be credited
or  refunded  in  accordance  with the provisions of section six hundred
eighty-six of this article, provided, however, that no interest will  be
paid thereon.
* NB Repealed December 31, 2026
* (tt)  New  York  youth jobs program tax credit.  (1) A taxpayer that
has been certified by the commissioner of labor as a qualified  employer
pursuant  to  section  twenty-five-a  of  the  labor law and received an
annual final certificate of tax credit from such commissioner  shall  be
allowed  a  credit  against the tax imposed by this article equal to the
amount listed on the annual final certificate of tax  credit  issued  by
the commissioner of labor pursuant to section twenty-five-a of the labor
law.  A taxpayer that is a partner in a partnership, member of a limited
liability company or shareholder in an S corporation that  has  received
its  annual  final  certificate  of  tax credit from the commissioner of
labor as a qualified employer pursuant to section twenty-five-a  of  the
labor  law  shall  be allowed its pro rata share of the credit earned by
the partnership, limited liability company  or  S  corporation.  If  the
qualified employer's taxable year is a calendar year, the employer shall
be  entitled  to  claim  the  credit  as  calculated on the annual final
certificate of tax credit on the calendar  year  return  for  which  the

annual  final  certificate  of  tax credit was issued.  If the qualified
employer's taxable year is a fiscal year, the employer shall be entitled
to claim the credit as calculated on the annual final certificate of tax
credit  on  the  return for the fiscal year that encompasses the date on
which the annual final certificate of tax  credit  is  issued.  For  the
purposes  of  this  subsection, the term "qualified employee" shall have
the  same  meaning  as  set  forth  in  subdivision   (b)   of   section
twenty-five-a of the labor law.
(2)  If the amount of the credit allowed under this subsection exceeds
the taxpayer's tax for the  taxable  year,  any  amount  of  credit  not
deductible in that taxable year will be treated as an overpayment of tax
to  be credited or refunded in accordance with the provisions of section
six hundred eighty-six of this article. Provided, however,  no  interest
will be paid thereon.
(3)  The  taxpayer  shall  be required to attach to its tax return its
annual final certificate of tax credit issued  by  the  commissioner  of
labor  pursuant  to  section twenty-five-a of the labor law. In no event
shall the taxpayer be allowed a credit greater than the  amount  of  the
credit   listed   on   the  annual  final  certificate  of  tax  credit.
Notwithstanding any provision of  this  chapter  to  the  contrary,  the
commissioner  and the commissioner's designees may release the names and
addresses of any taxpayer claiming this credit and  the  amount  of  the
credit  earned  by the taxpayer. Provided, however, if a taxpayer claims
this credit because it is a member of a  limited  liability  company,  a
partner   in   a  partnership,  or  a  shareholder  in  a  subchapter  S
corporation, only the amount of credit earned by the entity and not  the
amount of credit claimed by the taxpayer may be released.
* NB There are 3 sb (tt)'s
* (tt)  Empire  state  jobs program retention credit. (1) Allowance of
credit. A taxpayer shall be allowed a credit, to be computed as provided
in section thirty-six of this chapter, against the tax imposed  by  this
article.
(2)  Application  of credit. If the amount of the credit allowed under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, the excess will be treated as an overpayment of tax to be credited
or refunded in accordance with the provisions  of  section  six  hundred
eighty-six  of this article, provided, however, that no interest will be
paid thereon.
* NB There are 3 sb (tt)'s
* (tt) Credit for companies who provide transportation to  individuals
with  disabilities.  (1) Allowance and amount of credit. A taxpayer, who
provides  a  taxicab  service  as  defined  in   section   one   hundred
forty-eight-a  of  the  vehicle  and traffic law, or a livery service as
defined in section one hundred twenty-one-e of the vehicle  and  traffic
law,  shall  be  allowed  a  credit,  to be computed as provided in this
subsection, against the tax imposed by this article. The amount  of  the
credit  shall be equal to the incremental cost associated with upgrading
a vehicle so that it is accessible by individuals with  disabilities  as
defined  in  paragraph  two  of this subsection. Provided, however, that
such credit shall not  exceed  fifteen  thousand  dollars  per  electric
vehicle  and ten thousand dollars per any other vehicle. For purposes of
this  subsection,  purchases  of  new  vehicles   that   are   initially
manufactured  to be accessible for individuals with disabilities and for
which there is no comparable make and model that does  not  include  the
equipment   necessary  to  provide  accessibility  to  individuals  with
disabilities, the credit shall be fifteen thousand dollars per  electric
vehicle and ten thousand dollars per any other vehicle.
(2)   Definitions.   The   term   "accessible   by   individuals  with
disabilities" shall, for the purposes of this  subsection,  refer  to  a
vehicle  that  complies with federal regulations promulgated pursuant to
the Americans with Disabilities Act applicable to vans under  twenty-two
feet  in length, by the federal Department of Transportation, in Code of
Federal Regulations, title 49, parts 37 and 38  and  the  Federal  Motor
Vehicle  Safety  Standards,  Code of Federal Regulations, title 49, part
571. The term  "electric  vehicle"  shall,  for  the  purposes  of  this
subsection,  have  the  same  meaning  as  in section sixty-six-s of the
public service law.
(3) Application of credit. If the amount of the  credit  shall  exceed
the taxpayer's tax for such year the excess shall be carried over to the
following year or years, and may be deducted from the taxpayer's tax for
such year or years.
* NB Repealed December 31, 2028
* NB There are 3 sb (tt)'s
(uu) Alcoholic beverage production credit. A taxpayer shall be allowed
a  credit,  to  be  computed as provided in section thirty-seven of this
chapter, against the tax imposed by this article. If the amount  of  the
credit  allowed  under this subsection for any taxable year shall exceed
the taxpayer's tax for such year, the excess  shall  be  treated  as  an
overpayment  of  tax  to  be credited or refunded in accordance with the
provisions of section six hundred eighty-six of this article,  provided,
however, that no interest shall be paid thereon.
(vv) Family tax relief credit. 1. An individual taxpayer who meets the
eligibility  standards  in  paragraph  two  of  this subsection shall be
allowed a credit against the taxes imposed  by  this  article  of  three
hundred  fifty  dollars  per return for tax years two thousand fourteen,
two thousand fifteen, and two thousand sixteen.
2. To be eligible for the credit, the taxpayer  (or  taxpayers  filing
joint  returns)  on the personal income tax return filed for the taxable
year, must (a) be a resident, (b) claim one or more  dependent  children
who were under the age of seventeen on the last day of the taxable year,
(c)  have  New  York  adjusted  gross  income of at least forty thousand
dollars but no greater than three hundred thousand dollars, and (d) have
a tax liability as determined under paragraph three of  this  subsection
of greater than or equal to zero.
3.  For purposes of this subsection, tax liability shall be determined
by applying the tax rate calculations in sections six  hundred  one  and
six hundred one-a of this part to the taxpayer's taxable income and then
subtracting  from  that  amount any other tax credits allowed under this
section or section six hundred twenty of this article.
4. If the amount of the credit allowed  under  this  subsection  shall
exceed  the  taxpayer's  tax  for  the taxable year, the excess shall be
treated as  an  overpayment  of  tax  to  be  credited  or  refunded  in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
(ww) Tax-free NY area tax elimination credit. (1) Allowance of credit.
A  taxpayer  shall be allowed a credit, to be computed as provided under
section forty of this chapter, against the tax imposed by this article.
(2) Application of credit. If the amount of the credit  allowed  under
this subsection for any taxable year exceeds the taxpayer's tax for such
year,  the  excess  will  be treated as an overpayment to be credited or
refunded in accordance  with  the  provisions  of  section  six  hundred
eighty-six  of this article, provided, however, that no interest will be
paid thereon.
(xx) Real property tax credit for manufacturers.  (1) A qualified  New
York  manufacturer  will  be allowed a credit equal to twenty percent of

the real property tax it paid during the taxable year for real  property
owned by such manufacturer in New York which was principally used during
the  taxable  year  for  manufacturing  to  the  extent  not deducted in
computing  New  York  adjusted  gross  income.  This  credit will not be
allowed if the real property taxes that are the basis  for  this  credit
are  included  in  the  calculation  of  another  credit  claimed by the
taxpayer.
(2)(A) The term qualified New York manufacturer has the  same  meaning
as  under  subparagraph  (vi)  of  paragraph  (a)  of subdivision one of
section two hundred ten of this chapter.
(B) (i) The term real property tax means a charge  imposed  upon  real
property  by  or  on  behalf  of a county, city, town, village or school
district for municipal or school district purposes,  provided  that  the
charge  is  levied  for  the general public welfare by the proper taxing
authorities at  a  like  rate  against  all  property  over  which  such
authorities  have jurisdiction, and provided that where taxes are levied
pursuant to article eighteen or nineteen of the real property  tax  law,
the  property  must have been taxed at the rate determined for the class
in which it is contained,  as  provided  by  such  article  eighteen  or
nineteen,  whichever  is applicable. The term real property tax does not
include a charge for local  benefits,  including  any  portion  of  that
charge   that  is  properly  allocated  to  the  costs  attributable  to
maintenance or interest, when (I) the property subject to the charge  is
limited  to  the  property  that  benefits  from the charge, or (II) the
amount of the charge is  determined  by  the  benefit  to  the  property
assessed,  or  (III)  the  improvement  for which the charge is assessed
tends to increase the property value.
(ii) In addition, the term real property tax includes  taxes  paid  by
the taxpayer upon real property principally used during the taxable year
by  the  taxpayer  in  manufacturing where the taxpayer leases such real
property from an unrelated third party if the following  conditions  are
satisfied:  (I)  the tax must be paid by the taxpayer as lessee pursuant
to explicit requirements in a written lease, and (II)  the  taxpayer  as
lessee  has  paid  such  taxes  directly to the taxing authority and has
received a  written  receipt  for  payment  of  taxes  from  the  taxing
authority.  In  the case of a taxpayer that, during the taxable year, is
principally engaged in the production of goods by farming,  agriculture,
horticulture,  floriculture,  viticulture,  or  commercial  fishing, the
taxpayer is eligible if the taxpayer satisfies  the  conditions  in  the
preceding  sentence  and  the  taxpayer leases such real property from a
related or unrelated party.
(iii) The term real property tax does not include a  payment  made  by
the  taxpayer in connection with an agreement for the payment in lieu of
taxes on real property, whether such property is owned or leased by  the
taxpayer.
(iv)  The real property taxes must be paid by the taxpayer in the year
such taxes become a lien on the real property.
(3) Credit recapture. Where a qualified New York  manufacturer's  real
property  taxes  which  were  the  basis for the allowance of the credit
provided for under this subdivision are subsequently reduced as a result
of a final order in any proceeding  under  article  seven  of  the  real
property tax law or other provision of law, the taxpayer shall add back,
in  the  taxable year in which such final order is issued, the excess of
(i) the amount of credit originally allowed for a taxable year over (ii)
the amount of credit determined based upon  the  reduced  real  property
taxes. If such final order reduces real property taxes for more than one
year,  the  taxpayer  must  determine  how  much  of  such  reduction is
attributable to each year covered by such final order and calculate  the

amount  of credit which is required by this subdivision to be recaptured
for each year based on such reduction.
(4)  If the amount of the credit allowed under this subsection for any
taxable year exceeds the taxpayer's tax for such year, the  excess  will
be  treated  as  an overpayment to be credited or refunded in accordance
with the provisions of section six hundred eighty-six of  this  article,
provided however, no interest will be paid thereon.
(yy)  The  tax-free  NY  area excise tax on telecommunication services
credit. A taxpayer that is a business or owner of  a  business  that  is
located in a tax-free NY area approved pursuant to article twenty-one of
the  economic  development  law  shall  be allowed a credit equal to the
excise tax on telecommunication services imposed by section one  hundred
eighty-six-e  of this chapter and passed through to such business during
the taxable year to the extent not otherwise deducted in  computing  New
York  adjusted  gross  income. This credit may be claimed only where any
tax imposed by such section one hundred eighty-six-e has been separately
stated on a bill from the provider  of  telecommunication  services  and
paid  by  such  taxpayer with respect to such services rendered within a
tax-free NY area during the taxable year. If the amount  of  the  credit
allowed   under  this  subsection  for  any  taxable  year  exceeds  the
taxpayer's tax  for  such  year,  the  excess  will  be  treated  as  an
overpayment to be credited or refunded in accordance with the provisions
of  section  six  hundred eighty-six of this article, provided, however,
that no interest will be paid thereon.
(zz) Workers with disabilities tax credit. (1) A  qualified  employer,
as  defined in paragraph one of subdivision (b) of section twenty-five-b
of the labor law, shall be entitled to a credit against the tax  imposed
by  this  article. The amount of the credit shall be: fifteen percent of
the qualified wages paid after January first, two thousand fifteen to  a
qualified  full-time  employee  who  is  employed  for not less than six
months and who works at least thirty hours per week; and  shall  be  ten
percent  of  the  qualified wages paid after January first, two thousand
fifteen to a qualified part-time employee who is employed for  not  less
than  six  months  and  works  at least eight hours per week. The credit
allowed pursuant to this subsection shall not exceed, during any taxable
year, five thousand dollars for any qualified full time employee and two
thousand five hundred dollars for  any  qualified  part  time  employee.
"Qualified wages" means wages paid or incurred by the qualified employer
during  the taxable year to a qualified employee which are attributable,
with respect to such employee, to services  rendered  by  the  qualified
employee.
(2)  If  the  amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year,  any  amount
of credit not deductible in such taxable year may be carried over to the
following  three years, and may be deducted for the qualified employer's
tax for such years.
(3) The taxpayer shall attach to its tax return its final  certificate
of  eligibility  issued by the commissioner of labor pursuant to section
twenty-five-b of the labor law.  In  no  event  shall  the  taxpayer  be
allowed  a  credit  greater  than the amount of the credit listed on the
final certificate of eligibility. Notwithstanding any provision of  this
chapter  to  the  contrary,  the  commissioner  and  the  commissioner's
designees may release the names and addresses of any  taxpayer  claiming
this credit and the amount of the credit earned by the taxpayer.
(4)  A  qualified employer may not claim the workers with disabilities
tax credit if it claims any of  the  other  credits  for  employment  of
persons  with  disabilities  under  either subsection (o) of section six

hundred six,  subdivision  twelve  of  section  two  hundred  ten-B,  or
subdivision (j) of section fifteen hundred eleven of this chapter.
(aaa)  Minimum  wage  reimbursement  credit.  (1)  A taxpayer shall be
allowed a credit, to be computed as provided in section thirty-eight  of
this chapter, against the tax imposed by this article.
(2)  Application  of credit. If the amount of the credit allowed under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, the excess will be treated as an overpayment of tax to be credited
or refunded in accordance with the provisions  of  section  six  hundred
eighty-six  of this article, provided, however, that no interest will be
paid thereon.
(ccc) Article twenty-four employee credit. A covered  employee  of  an
electing  employer shall be entitled to a credit against the tax imposed
by this article as provided in this subsection.  For  purposes  of  this
subsection  the  terms  "covered employee" and "electing employer" shall
have the same meanings as under section  eight  hundred  fifty  of  this
chapter. (1) For two thousand nineteen, the credit shall be equal to the
product  of  (i) the covered employee's wages and compensation in excess
of forty thousand dollars received during the tax year from the electing
employer that are subject to tax under this article  and  (ii)  one  and
one-half  percent  and  (iii)  the  result  of one minus a fraction, the
numerator of which shall be the tax imposed on the covered  employee  as
determined  pursuant  to  section six hundred one of this article before
the application of any credits for  the  applicable  tax  year  and  the
denominator  of  which shall be the covered employee's taxable income as
determined pursuant to this article for the applicable tax year. (2) For
two thousand twenty, the credit shall be equal to the product of (i) the
covered employee's wages and compensation in excess  of  forty  thousand
dollars received during the tax year from the electing employer that are
subject  to  tax under this article and (ii) three percent and (iii) the
result of one minus a fraction, the numerator of which shall be the  tax
imposed  on  the  covered employee as determined pursuant to section six
hundred one of this article before the application of  any  credits  for
the  applicable  tax  year  and  the  denominator  of which shall be the
covered employee's taxable income as determined pursuant to this article
for the applicable  tax  year.  (3)  For  two  thousand  twenty-one  and
thereafter,  the credit shall be equal to the product of (i) the covered
employee's wages and compensation in excess of  forty  thousand  dollars
received during the tax year from the electing employer that are subject
to  tax under this article and (ii) five percent and (iii) the result of
one minus a fraction, the numerator of which shall be the tax imposed on
the covered employee as determined pursuant to section six  hundred  one
of this article before the application of any credits for the applicable
tax  year  and  the denominator of which shall be the covered employee's
taxable income as determined pursuant to this article for the applicable
tax year. If the amount of the credit allowable  under  this  subsection
for  any taxable year shall exceed the taxpayer's tax for such year, the
excess allowed for a taxable year may be carried over to  the  following
year  or years and may be deducted from the taxpayer's tax for such year
or years.
(ddd) Employee training incentive program tax credit. (1)  A  taxpayer
that  has  been  approved by the commissioner of economic development to
participate in the employee training  incentive  program  and  has  been
issued  a  certificate  of  tax  credit pursuant to section four hundred
forty-three of the economic development law shall be allowed to claim  a
credit  against  the tax imposed by this article. The credit shall equal
fifty percent of a taxpayer's eligible training costs, up to a credit of
ten thousand dollars per employee completing eligible training  pursuant

to  paragraph (a) of subdivision three of section four hundred forty-one
of the economic development law. The credit shall equal fifty percent of
the stipend paid to an intern, up to a credit of three thousand  dollars
per  intern  completing  eligible  training pursuant to paragraph (b) of
subdivision three of section four  hundred  forty-one  of  the  economic
development  law.  In  no  event  shall  a  taxpayer be allowed a credit
greater than the amount listed on the certificate of tax  credit  issued
by  the  commissioner of economic development. In the case of a taxpayer
who is a partner in a partnership, member of a limited liability company
or shareholder in an S corporation, the taxpayer shall  be  allowed  its
pro  rata  share  of  the  credit  earned  by  the  partnership, limited
liability company or S corporation. The credit will be  allowed  in  the
taxable year in which the eligible training is completed.
(2)  If the amount of the credit allowed under this subsection for any
taxable year exceeds the taxpayer's tax for the taxable year, the excess
shall be treated as an overpayment of tax to be credited or refunded  in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, no interest will be paid thereon.
(eee)  School  tax relief (STAR) credit. (1) Definitions. For purposes
of this subsection:
(A) "Qualified taxpayer" means a resident individual of the state, who
maintained his or her  primary  residence  in  this  state  on  December
thirty-first  of the taxable year, and who was an owner of that property
on that date, provided however: (i) A taxpayer whose  primary  residence
received  a  STAR  exemption for the associated fiscal year shall not be
considered a qualified taxpayer for purposes of this subsection.
(ii) An individual may be considered a qualified taxpayer with respect
to no more than one primary residence during any given taxable year.
(iii) If a resident individual was an owner of the property during the
taxable year but did not own it on December thirty-first of the  taxable
year, he or she shall be considered a qualified taxpayer if the property
was  his  or her primary residence during the taxable year and he or she
paid qualifying taxes on that property while he  or  she  was  still  an
owner of that property.
(iv)  If  a  resident  individual  has  acquired ownership of property
during a taxable year, such resident individual shall not be  considered
a qualified taxpayer for that taxable year to the extent that an advance
payment of the credit for that taxable year has been issued to the prior
owner with respect to the same property, unless such resident individual
can  demonstrate  that  he or she paid qualifying taxes on such property
during the taxable year, and that the prior owner did not.
(B) "Affiliated income" shall mean for  purposes  of  the  basic  STAR
credit,  the  combined  income  of  all  of the owners of the parcel who
resided primarily thereon as of December  thirty-first  of  the  taxable
year,  and  of any owners' spouses residing primarily thereon as of such
date, and for purposes of the enhanced STAR credit, the combined  income
of  all  of  the owners of the parcel as of December thirty-first of the
taxable year, and of any owners' spouses residing primarily  thereon  as
of  such  date;  provided  that  for  both  purposes the income to be so
combined shall be the "adjusted gross income" for the  taxable  year  as
reported  for  federal income tax purposes, or that would be reported as
adjusted gross income if a federal income tax return were required to be
filed, reduced by distributions,  to  the  extent  included  in  federal
adjusted  gross  income,  received from an individual retirement account
and an individual retirement annuity. For taxable years beginning on and
after January first, two thousand nineteen, where an  income-eligibility
determination  is  wholly or partly based upon the income of one or more
individuals who did not file a return pursuant to  section  six  hundred

fifty-one  of  this  article for the applicable income tax year, then in
order to be eligible for the credit authorized by this subsection,  each
such  individual  must  file a statement with the department showing the
source or sources of his or her income for that income tax year, and the
amount  or  amounts  thereof,  that  would  have been reported on such a
return if one had been filed. Such statement  shall  be  filed  at  such
time,  and  in  such  form  and  manner,  as  may  be  prescribed by the
department, and shall be  subject  to  the  provisions  of  section  six
hundred  ninety-seven  of  this article to the same extent that a return
would  be.  The  department  shall  make  such  forms  and  instructions
available  for  the  filing of such statements. The local assessor shall
upon the request of a taxpayer assist such taxpayer in the filing of the
statement with the department. Provided further, that if  the  qualified
taxpayer  was  an  owner of the property during the taxable year but did
not own it on December  thirty-first  of  the  taxable  year,  then  the
determination  as  to  whether  the  income  of  an individual should be
included in "affiliated income" shall be based upon the ownership and/or
residency status of that individual as of the first  day  of  the  month
during  which  the  qualified  taxpayer  ceased  to  be  an owner of the
property, rather than as of December thirty-first of the taxable year.
(C) "Associated fiscal year" means the  school  district  fiscal  year
that  began  on July first of the taxable year or, in the case of a city
school district that is subject to article fifty-two  of  the  education
law, the city fiscal year that began on July first of the taxable year.
(D) "Owner" means:
(i)  a  person who owns a parcel in fee simple absolute or as a tenant
in common, a joint tenant or a tenant by the entirety,
(ii) an owner of a present interest in a parcel under a life estate,
(iii) a vendee in possession under an installment contract of sale,
(iv) a beneficial owner under a trust,
(v) a tenant-stockholder of a cooperative  apartment  corporation  who
resides  in  a  portion  of  real  property  owned  by  such cooperative
apartment corporation, to the extent represented by his or her share  or
shares  of  stock  in  such  corporation  as  determined by its or their
proportional  relationship  to  the  total  outstanding  stock  of   the
corporation, including that owned by the corporation,
(vi)  a  resident  of  a  farm  dwelling  that  is  owned  either by a
corporation of which the resident is a  shareholder,  a  partnership  of
which  the  resident  is a partner, or by a limited liability company of
which the resident is an owner, or
(vii) a resident of a dwelling, other than a farm  dwelling,  that  is
owned  by  a  limited  partnership  of  which the resident is a partner,
provided that the limited partnership that holds title to  the  property
does not engage in any commercial activity, that the limited partnership
was  lawfully created to hold title solely for estate planning and asset
protection purposes, and that the  partner  or  partners  who  primarily
reside  thereon  personally pay all of the real property taxes and other
costs associated with the property's ownership.
(E) "Qualifying taxes" means  the  school  district  taxes  that  were
levied  upon  the taxpayer's primary residence for the associated fiscal
year that were actually paid by the taxpayer during  the  taxable  year;
or,  in  the  case  of a city school district that is subject to article
fifty-two of the education law, the combined city  and  school  district
taxes  that  were  levied  upon the taxpayer's primary residence for the
associated fiscal year that were actually paid by  the  taxpayer  during
the  taxable  year. Provided, however, that in the case of a cooperative
apartment, "qualifying taxes" means the school district taxes that would
have been levied upon the tenant-stockholder's primary residence  if  it

were separately assessed, as determined by the commissioner based on the
statement  provided  by  the  assessor  pursuant to subparagraph (ii) of
paragraph (k) of subdivision two of section four hundred twenty-five  of
the  real  property  tax  law, or in the case of a cooperative apartment
corporation that is described in subparagraph (iv) of paragraph  (k)  of
subdivision two of section four hundred twenty-five of the real property
tax law, one third of such amount. In no case shall the term "qualifying
taxes" be construed to include penalties or interest.
(F)  "STAR  exemption"  means  the  school tax relief (STAR) exemption
authorized by section four hundred twenty-five of the real property  tax
law.
(G)  "STAR tax savings" means the tax savings attributable to the STAR
exemption within a portion of a school district, as  determined  by  the
commissioner  pursuant  to  subdivision  two of section thirteen hundred
six-a of the real property tax law for purposes of the credit authorized
by this subsection.
(2) Allowance of credit. A  qualified  taxpayer  shall  be  allowed  a
credit  as  provided  in  paragraph  three  or  four of this subsection,
whichever is applicable, against  the  taxes  imposed  by  this  article
reduced  by  the  credits  permitted  by this article, provided that the
requirements set forth in the applicable subsection  are  satisfied.  If
the  credit  exceeds  the  tax  as  so  reduced for such year under this
article, the excess shall be treated as an overpayment, to  be  credited
or  refunded,  without interest. If a qualified taxpayer is not required
to file a return pursuant to  section  six  hundred  fifty-one  of  this
article,  a  qualified taxpayer may nevertheless receive the full amount
of the credit to be  credited  or  repaid  as  an  overpayment,  without
interest.
(3)  Determination  of  basic STAR credit.  (A) Beginning with taxable
years after two thousand fifteen, a basic STAR credit shall be available
to a qualified taxpayer if the affiliated  income  of  the  parcel  that
serves as the taxpayer's primary residence is less than or equal to five
hundred thousand dollars for the applicable income tax year specified by
paragraph (b-1) of subdivision three of section four hundred twenty-five
of the real property tax law. The income limit established for the basic
STAR  exemption  by paragraph (b-1) of subdivision three of section four
hundred twenty-five of the real property tax law shall not be taken into
account when determining eligibility for the basic STAR credit.
(B) Subject to the provisions of subparagraph (C) of  this  paragraph,
such basic STAR credit shall be the lesser of:
(i)  the  basic  STAR  tax  savings for the school district portion in
which the taxpayer's primary residence is located, or
(ii) the taxpayer's qualifying taxes.
(C) If the qualifying taxes paid by the taxpayer  constituted  only  a
portion  of  the  total  school district taxes that were levied upon the
taxpayer's primary residence for the associated fiscal year or,  in  the
case  of  a city school district that is subject to article fifty-two of
the education  law,  if  the  qualifying  taxes  paid  by  the  taxpayer
constituted  only  a  portion  of  the  total  combined  city and school
district taxes that were levied upon the  taxpayer's  primary  residence
for  the  associated  fiscal year, the credit allowable to such taxpayer
shall be equal to the amount determined pursuant to subparagraph (B)  of
this   paragraph   multiplied   by  the  percentage  that  such  portion
represents.
(4) Determination of enhanced STAR credit. (A) Beginning with  taxable
years  after  two  thousand  fifteen,  an  enhanced STAR credit shall be
available to a qualified taxpayer where both of the following conditions
are satisfied:
(i) All of the owners of the parcel  that  serves  as  the  taxpayer's
primary  residence  are  at least sixty-five years of age as of December
thirty-first of the taxable year or, in the case of property owned by  a
married  couple  or  by siblings, at least one of the owners is at least
sixty-five  years  of  age as of that date. The terms "siblings" as used
herein shall have the same meaning as set forth in section four  hundred
sixty-seven  of the real property tax law. In the case of property owned
by a married couple, one of whom is sixty-five years of age or over, the
credit, once allowed, shall not be disallowed because of  the  death  of
the  older  spouse so long as the surviving spouse is at least sixty-two
years of age as of December thirty-first of the taxable year.
(ii) The affiliated income of the parcel that serves as the taxpayer's
primary residence is less than or equal to the income standard  for  the
taxable  year  established  by  the  commissioner  for the corresponding
"income tax  year"  pursuant  to  clause  (C)  of  subparagraph  (i)  of
paragraph (b) of subdivision four of section four hundred twenty-five of
the real property tax law for purposes of the enhanced STAR exemption.
(B)  Subject  to the provisions of subparagraph (C) of this paragraph,
such credit shall be the lesser of:
(i) the enhanced STAR tax savings for the school district  portion  in
which the taxpayer's primary residence is located, or
(ii) the taxpayer's qualifying taxes.
(C)  If  the  qualifying taxes paid by the taxpayer constituted only a
portion of the total school district taxes that  were  levied  upon  the
taxpayer's  primary  residence for the associated fiscal year or, in the
case of a city school district that is subject to article  fifty-two  of
the  education  law,  if  the  qualifying  taxes  paid  by  the taxpayer
constituted only a  portion  of  the  total  combined  city  and  school
district  taxes  that  were levied upon the taxpayer's primary residence
for the associated fiscal year, the credit allowable  to  such  taxpayer
shall  be equal to the amount determined pursuant to subparagraph (B) of
this  paragraph  multiplied  by  the  percentage   that   such   portion
represents.
(5)  Disqualification.  A  taxpayer  shall  not qualify for the credit
authorized  by  this  subsection  if  the  parcel  that  serves  as  the
taxpayer's   primary  residence  received  the  STAR  exemption  on  the
assessment roll upon which school  district  taxes  for  the  associated
fiscal year were levied. Provided, however, that the taxpayer may remove
this  disqualification by switching to the credit in the manner provided
by subdivision seventeen of section four hundred twenty-five of the real
property  tax  law.  Alternatively,  the  taxpayer   may   remove   this
disqualification  by  renouncing  the  exemption and making any required
payments in the manner provided by section four  hundred  ninety-six  of
the real property tax law. Any such switch to the credit or renunciation
shall be irrevocable.
(6) Special cases.
(A)  A  married  couple  may  not  receive  a  credit pursuant to this
subsection on more than one residence during  any  given  taxable  year,
unless  living  apart  due to legal separation. Nor may a married couple
receive a credit pursuant to this  subsection  on  one  residence  while
receiving  an  exemption pursuant to section four hundred twenty-five of
the real property tax law on another residence, unless living apart  due
to legal separation.
(B)  (i)  In  the case of property consisting of a mobile home that is
described in paragraph (1) of subdivision two of  section  four  hundred
twenty-five  of  the  real  property  tax  law, the amount of the credit
allowable with respect to such mobile home shall be equal to  the  basic
STAR  tax  savings for the school district portion, or the enhanced STAR

tax savings for the school district portion,  whichever  is  applicable,
that  would  be  applied  to  a separately assessed parcel in the school
district portion with a taxable assessed value equal to twenty  thousand
dollars  multiplied  by  the  latest  state equalization rate or special
equalization rate for the assessing unit in which  the  mobile  home  is
located. Provided, however, that if the commissioner is in possession of
information,  including  but  not  limited  to  assessment records, that
demonstrates to the  commissioner's  satisfaction  that  the  taxpayer's
mobile  home  is  worth  more  than  twenty  thousand dollars, or if the
taxpayer provides the commissioner with such information, the taxpayer's
credit shall be increased accordingly, but in no case shall  the  credit
exceed  the  basic  STAR  tax  savings  or  enhanced  STAR  tax savings,
whichever is applicable, for the school district portion.
(ii) The commissioner may  implement  an  electronic  system  for  the
reporting  of  information  by owners and operators of manufactured home
parks, as defined by  section  two  hundred  thirty-three  of  the  real
property  law. Upon the implementation of such a system, each such owner
and operator shall file  electronic  statements  with  the  commissioner
according  to  a  schedule  to  be  determined by the commissioner. Such
statement shall require reporting of names  of  all  persons  owning  an
interest  in  the  park,  the services provided by the park owner to the
tenants, the name of the agent designated pursuant to subdivision  l  of
section two hundred thirty-three of the real property law, the names and
addresses  of all tenants of the park, whether the tenant leases or owns
the home, the rent set for each lot in the  park,  and  such  additional
information  as  the  commissioner  may  deem  necessary  for the proper
administration of the STAR exemption  established  pursuant  to  section
four  hundred  twenty-five  of  the  real  property tax law and the STAR
credit and any other property tax-based credit established  pursuant  to
this section. In the case of the first registration statement filed in a
calendar  year,  such statement shall also include a copy of all current
manufactured home park rules and  regulations.  In  the  case  that  the
manufactured  home  park  rules  and  regulations are modified after the
filing of the first registration statement in a calendar year, the  next
subsequent  registration  statement  shall  also  include a copy of such
rules and regulations. The commissioner shall provide  the  commissioner
of  housing and community renewal with the information contained in each
report no later than thirty days after the receipt thereof.
(iii) Beginning with the two  thousand  twenty-two  taxable  year,  to
receive  the  credit authorized by this subsection, an owner of a mobile
home described by clause (i) of this  subparagraph  shall  register  for
such credit in the manner prescribed by the commissioner.
(C)  In the case of a primary residence that is located in two or more
school districts, the applicable basic or enhanced STAR tax savings  for
the school district portion shall be determined as follows:
(i)  determine  the  sum  of the total school district taxes that were
levied upon the taxpayer's primary residence for the  associated  fiscal
year by each of the school districts in which the residence is located;
(ii)  for  each such school district, divide the total school district
taxes that were levied upon the taxpayer's  primary  residence  by  that
school  district for the associated fiscal year by the sum determined in
clause (i) of this subparagraph. Express the result as a percentage with
two decimal places;
(iii)  for  each  such  school  district,  multiply   the   percentage
determined  in clause (ii) of this subparagraph by the basic or enhanced
STAR  tax  savings  for  the  school  district  portion,  whichever   is
applicable; and
(iv) add the products determined in clause (iii) of this subparagraph.
(7)  Disclosure  of  incomes  and  other  information.  (A)  Where the
commissioner has denied a taxpayer's claim for the credit authorized  by
this  subsection  in whole or in part on the grounds that the affiliated
income of the parcel in  question  exceeds  the  applicable  limit,  the
commissioner  shall  have  the  authority to reveal to that taxpayer the
names and incomes of the other taxpayers whose incomes were included  in
the computation of such affiliated income.
(B)  Notwithstanding  any  provision of law to the contrary, the names
and addresses of individuals who have applied for or are  receiving  the
credit  authorized  by  this  subsection  may be disclosed to assessors,
county directors of real property tax services, municipal tax collecting
officers and enforcing officers within New York state. In addition, such
information may be exchanged  with  assessors  and  tax  officials  from
jurisdictions   outside  New  York  state  if  the  laws  of  the  other
jurisdiction allow it to provide similar information to this state. Such
information shall be considered confidential and shall not be subject to
further disclosure  pursuant  to  the  freedom  of  information  law  or
otherwise.
(8)  Proof of claim. The commissioner may require a qualified taxpayer
to furnish the following information in support of his or her claim  for
credit  under  this  subsection:  affiliated  income,  the  total school
district taxes levied on the property for the associated fiscal year or,
in the case of a  city  school  district  that  is  subject  to  article
fifty-two  of  the  education  law,  the  total combined city and school
district taxes levied on the property for the  associated  fiscal  year,
the  qualifying  taxes  paid  by  the  taxpayer,  the names and taxpayer
identification numbers of all owners of the  property  and  spouses  who
primarily  reside  on the property, the parcel identification number and
all other information that  may  be  required  by  the  commissioner  to
determine the credit.
(9)  Returns. Whether or not the taxpayer is required to file a return
pursuant to section six hundred fifty-one of this article,  the  process
for  requesting  advance  payment of such credit shall be as provided by
paragraph ten of this subsection.
(10)  Advance  payments.  (A)  The  commissioner  shall  establish   a
mechanism by which a qualified taxpayer may apply for an advance payment
of the credit authorized by this section, provided that:
(i)  If  the taxpayer acquired a new primary residence between January
first  and  July  first  of  the  taxable  year,  inclusive,  any   such
application  must  be  submitted to the commissioner by the first day of
July of the taxable year, or such later date as may be prescribed by the
commissioner in order for the taxpayer's payment to be  subject  to  the
processing schedule provided by subparagraph (B) of this paragraph, and
(ii) A qualified taxpayer who fails to apply for an advance payment of
such  credit  by  such date may apply for and receive such credit in the
manner prescribed by the commissioner, provided  that  such  application
shall  be  made  within  three years from the time that a return for the
taxable year would have had to be filed pursuant to section six  hundred
fifty-one  of this article. If approved, such payment shall be issued as
soon as is practicable after the submission of the application but shall
not be subject to the processing schedule prescribed by subparagraph (B)
of this paragraph, and
(iii) A qualified taxpayer who has applied for an advance  payment  of
such  credit  in  a  taxable  year  may continue to receive such advance
payments in future taxable years without reapplying as long as he or she
remains eligible therefor.
(B) On or before the date specified below, or as  soon  thereafter  as
practicable,   the  commissioner  shall  determine  the  eligibility  of

taxpayers for this credit utilizing the information available to him  or
her  as obtained from the applications submitted on or before July first
of that year, or such later date as may  have  been  prescribed  by  the
commissioner  for  that  purpose,  and  from  such  other sources as the
commissioner deems reliable and appropriate. For  those  taxpayers  whom
the   commissioner   has   determined  eligible  for  this  credit,  the
commissioner  shall  advance  a  payment  in  the  amount  specified  in
paragraph   three,   four  or  six  of  this  subsection,  whichever  is
applicable. Such payment shall be issued by the date specified below, or
as soon thereafter as is practicable; provided that if such  payment  is
issued  after  such  date,  it  shall be subject to interest at the rate
prescribed by subparagraph (A) of paragraph two  of  subsection  (j)  of
section  six  hundred  ninety-seven  of  this article. Nothing contained
herein shall  be  deemed  to  preclude  the  commissioner  from  issuing
payments  after such date to qualified taxpayers whose applications were
made after July first of that year, or such later date as may have  been
prescribed by the commissioner for such purpose.
(i) The applicable dates for this purpose are as follows:
(I)  If the school district tax roll is filed with the commissioner on
or before July first, the determination of eligibility shall be made  by
July fifteenth, or as soon thereafter as is practicable, and the advance
payment  shall  be issued by July thirtieth, or as soon thereafter as is
practicable.
(II) If the school district tax roll is filed  with  the  commissioner
after  July first and on or before September first, the determination of
eligibility shall be made by September fifteenth, or as soon  thereafter
as  is practicable, and the advance payment shall be issued by September
thirtieth, or as soon thereafter as is practicable.
(III) If the school district tax roll is filed with  the  commissioner
after September first, the determination of eligibility shall be made by
the  fifteenth  day  after  such  filing,  or  as  soon thereafter as is
practicable, and the advance payment shall be issued  by  the  thirtieth
day after such filing, or as soon thereafter as is practicable.
(ii) Notwithstanding the foregoing provisions of this subparagraph, in
the case of taxpayers whose primary residence is a cooperative apartment
or  a  mobile home that is subject to the provisions of subparagraph (A)
or (B) of paragraph six of this subsection, the payment shall be  issued
by  the  sixtieth  day  following  receipt  of all of the data needed to
properly calculate the credit, or as soon thereafter as is practicable.
(C) A taxpayer who has failed to receive an advance payment that he or
she believes was due to him or her,  or  who  has  received  an  advance
payment  that he or she believes is less than the amount that was due to
him or her, may request payment of the claimed deficiency  in  a  manner
prescribed by the commissioner.
(D)  An advance payment of credit provided pursuant to this subsection
that exceeds the taxpayer's qualifying taxes for that taxable year shall
be added back as tax on the income tax return for that taxable year.
(E) If the commissioner determines after issuing  an  advance  payment
that  it  was  issued  in  an  excessive  amount  or to an ineligible or
incorrect party, the commissioner shall be empowered to utilize  any  of
the  procedures for collection, levy and lien of personal income tax set
forth in this article, any other relevant procedures  referenced  within
the  provisions of this article, and any other law as may be applicable,
to recoup the improperly issued amount; provided that in the event  such
party  was  determined  to  be  ineligible  on the basis that his or her
primary residence received the STAR exemption in the  associated  fiscal
year,  the  improperly  issued  credit amount shall be deemed a clerical
error and shall be paid upon notice and demand without the issuance of a

notice of deficiency and shall be assessed, collected and  paid  in  the
same manner as taxes.
(11)  Administration.  The  provisions  of this article, including the
provisions of sections six hundred fifty-three, six hundred fifty-eight,
and six hundred fifty-nine of this article and the  provisions  of  part
six  of this article relating to procedure and administration, including
the judicial review of the decisions of the commissioner, except so much
of section six hundred eighty-seven of this article that permits a claim
for credit or refund to be  filed  after  the  period  provided  for  in
paragraph  nine  of  this  subsection  and  except  sections six hundred
fifty-seven, six hundred eighty-eight and six hundred ninety-six of this
article, shall apply to the provisions of this subsection  in  the  same
manner  and  with  the same force and effect as if the language of those
provisions had been incorporated in full into this  subsection  and  had
expressly  referred  to  the  credit allowed or returns filed under this
subsection, except to the extent  that  any  such  provision  is  either
inconsistent  with  a provision of this subsection or is not relevant to
this subsection. As used in  such  sections  and  such  part,  the  term
"taxpayer" shall include a qualified taxpayer under this subsection and,
notwithstanding  the provisions of subsection (e) of section six hundred
ninety-seven of this article, where a qualified taxpayer  has  protested
the  denial  of a claim for credit under this subsection and the time to
file a petition for redetermination of a deficiency or  for  refund  has
not  expired,  he or she shall, subject to such conditions as may be set
by the commissioner, receive such information (A) that is  contained  in
any  return filed under this article by a member of his or her household
for the taxable year for which the credit is claimed, and (B)  that  the
commissioner finds is relevant and material to the issue of whether such
claim was properly denied.
(12)  When  the calculation of any other personal income tax credit is
based in whole or in part upon the  real  property  taxes  paid  by  the
taxpayer,  the amount of real property taxes so paid shall be reduced by
the credit authorized by this subsection, if applicable, in  the  course
of  performing  such  calculation.  When  the  calculation  of any other
personal income tax credit  is  based  in  whole  or  in  part  upon  an
individual's   state  tax  liability,  the  credit  authorized  by  this
subsection shall not be taken into account in the  calculation  of  such
state  tax  liability.  When  the calculation of a city tax surcharge is
based in whole or in part upon the net state tax of an  individual,  the
credit  authorized by this subsection shall not be taken into account in
the calculation of such net state tax.
(13)  (A)  Nothing  herein  shall  be  construed   to   preclude   the
commissioner  from  making  a  preliminary advance payment of the credit
based upon an estimate of the STAR tax savings applicable  to  a  school
district portion, where he or she finds that attempting to ascertain the
actual  STAR tax savings applicable to the school district portion would
jeopardize the timely issuance of  the  payment.  When  making  such  an
estimate,   the   commissioner  shall  consider  the  STAR  tax  savings
applicable in the school district fiscal year preceding  the  associated
fiscal  year,  the  allowable  levy  growth  factor  applicable  to  the
calculation of the  tax  levy  limit  for  the  associated  fiscal  year
pursuant  to  paragraph  a  of  subdivision  two of section two thousand
twenty-three-a of  the  education  law,  taxable  assessed  value  where
appropriate, and such other information that in his or her judgment will
help make the estimate as accurate as possible.
(B)  Nothing  herein  shall  be construed to preclude the commissioner
from  making  a  preliminary  advance  payment  of  the  credit  without
attempting to ascertain the taxpayer's qualifying taxes, where he or she

finds that attempting to ascertain the taxpayer's qualifying taxes would
jeopardize the timely issuance of the payment.
(C)  If  the  commissioner  determines  that  a  taxpayer  received  a
preliminary advance payment that is above or below the  advance  payment
to  which he or she was entitled under this subsection, the commissioner
shall provide notice to such taxpayer that the next advance payment  due
to  such  taxpayer  under this subsection shall be adjusted to reconcile
such underpayment or overpayment; provided,  however,  the  commissioner
shall  permit  a  taxpayer to request that such adjustment be made on an
originally filed timely income tax return for the tax year in which such
overpayment or underpayment occurred, provided such return is  filed  on
or  before  the  due  date for such return, determined without regard to
extensions.
(D) A  taxpayer  who  received  a  preliminary  advance  payment  that
constitutes  an overpayment shall not be required to pay interest on the
amount of the overpayment.
(E) On or after April first, two thousand nineteen, a taxpayer who  is
found  to  have  made  a material misstatement on an application for the
credit authorized by this section shall be disqualified  from  receiving
such   credit  for  six  years.  As  used  herein,  the  term  "material
misstatement" shall have the same meaning as set forth in paragraph  (a)
of  subdivision thirteen of section four hundred twenty-five of the real
property tax law.
(fff) Farm workforce retention credit. (1) A taxpayer shall be allowed
a credit, to be computed  as  provided  in  section  forty-two  of  this
chapter, against the tax imposed by this article.
(2)  Application of credit. If the amount of credit allowed under this
subsection for any taxable year exceeds  the  taxpayer's  tax  for  such
year, the excess will be treated as an overpayment of tax to be credited
or  refunded  in  accordance  with  the provision of section six hundred
eighty-six of this article, provided, however, that no interest will  be
paid thereon.
(ggg)  School  tax  reduction  credit  for  residents of a city with a
population over one million. (1) For taxable years beginning  after  two
thousand  fifteen,  a  school tax reduction credit shall be allowed to a
resident individual of the state who is a resident  of  a  city  with  a
population  over  one  million,  as  provided below. The credit shall be
allowed against the taxes authorized by  this  article  reduced  by  the
credits  permitted  by this article. If the credit exceeds the tax as so
reduced, the excess shall be treated as an  overpayment  of  tax  to  be
credited  or  refunded  in accordance with the provisions of section six
hundred eighty-six of this article, provided however, that  no  interest
will  be  paid thereon. For purposes of this subsection, no credit shall
be granted to an individual with  respect  to  whom  a  deduction  under
subsection  (c) of section one hundred fifty-one of the internal revenue
code is allowable to another taxpayer for the taxable year.
(2) The amount of the credit under this subsection shall be determined
based upon the taxpayer's income as  defined  in  subparagraph  (ii)  of
paragraph (b) of subdivision four of section four hundred twenty-five of
the real property tax law.
(3)  For  taxable  years beginning in two thousand sixteen, the credit
shall be determined as provided in this paragraph, provided that for the
purposes of this paragraph, any taxpayer under subparagraphs (A) and (B)
of this paragraph with income of more than two  hundred  fifty  thousand
dollars shall not receive a credit.
(A) Married individuals filing joint returns and surviving spouses. In
the  case of married individuals who make a single return jointly and of
a surviving spouse, the credit shall be one hundred twenty-five dollars.
(B) All others. In the case of an unmarried individual, a  head  of  a
household  or  a married individual filing a separate return, the credit
shall be sixty-two dollars and fifty cents.
(4) For taxable years beginning after two thousand sixteen, the credit
shall  equal  the  "fixed"  amount  provided  by paragraph (4-a) of this
subsection plus the "rate reduction" amount provided by paragraph  (4-b)
of this subsection.
(4-a) The "fixed" amount of the credit shall be determined as provided
in  this  paragraph, provided that any taxpayer with income of more than
two hundred fifty thousand dollars shall not receive such amount.
(A) Married individuals filing joint returns and surviving spouses. In
the case of married individuals who make a single return jointly and  of
a  surviving  spouse,  the  "fixed"  amount  of  the credit shall be one
hundred twenty-five dollars.
(B) All others. In the case of an unmarried individual, a  head  of  a
household  or a married individual filing a separate return, the "fixed"
amount of the credit shall be sixty-two dollars and fifty cents.
(4-b) The "rate reduction" amount of the credit shall be determined as
provided in this paragraph, provided that any taxpayer  with  income  of
more than five hundred thousand dollars shall not receive such amount.
(A) For married individuals who make a single return jointly and for a
surviving spouse:
If the city taxable income is:         The "rate reduction" amount is:
Not over $21,600                       0.171% of the city taxable income
Over $21,600 but not over $500,000     $37 plus 0.228% of excess over
$21,600
Over $500,000                              Not applicable
(B) For a head of household:
If the city taxable income is:         The "rate reduction" amount is:
Not over $14,400                       0.171% of the city taxable income
Over $14,400 but not over $500,000     $25 plus 0.228% of excess over
$14,400
Over $500,000                              Not applicable
(C) For an unmarried individual or a married individual filing
a separate return:
If the city taxable income is:         The "rate reduction" amount is:
Not over $12,000                       0.171% of the city taxable income
Over $12,000 but not over $500,000     $21 plus 0.228% of excess over
$12,000
Over $500,000                              Not applicable
(5)  Part-year  residents.  If  a  taxpayer  changes status during the
taxable year from  resident  to  nonresident,  or  from  nonresident  to
resident,  the school tax reduction credit authorized by this subsection
shall be prorated according to the number of months  in  the  period  of
residence.
(hhh) Life sciences research and development tax credit. (1) Allowance
of credit. A taxpayer who is eligible pursuant to section forty-three of
this  chapter  shall  be  allowed a credit to be computed as provided in
such section against the tax imposed by this article.
(2) Application of credit. If the amount of the credit allowable under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, the excess shall be  treated  as  an  overpayment  of  tax  to  be
credited  or  refunded  as provided in section six hundred eighty-six of
this article, provided, however, that no interest shall be paid thereon.
(iii) Credit for contributions to certain  funds.  For  taxable  years
beginning   on  or  after  January  first,  two  thousand  nineteen,  an
individual taxpayer shall be allowed a credit against  the  tax  imposed
under this article for an amount equal to eighty-five percent of the sum

of:  (1)  the  amount contributed by the taxpayer during the immediately
preceding taxable year to any or all of the  following  accounts  within
the  charitable  gifts  trust fund set forth in section ninety-two-gg of
the  state  finance  law:  the  health charitable account established by
paragraph a of subdivision four of section ninety-two-gg  of  the  state
finance  law,  or  the  elementary  and  secondary  education charitable
account established by  paragraph  b  of  subdivision  four  of  section
ninety-two-gg  of  the  state  finance  law; (2) the amount of qualified
contributions  made  by  the  taxpayer  to  Health  Research,  Inc.   in
accordance  with  section two of the chapter of the laws of two thousand
eighteen that added this subsection; and (3)  the  amount  of  qualified
contributions  made  by the taxpayer to the State University of New York
Impact Foundation and/or the Research Foundation of the City  University
of  New York in accordance with section three of the chapter of the laws
of two thousand eighteen that added this subsection.
* (jjj) Employer-provided child care credit. (1) Allowance of  credit.
A  taxpayer  shall  be  allowed  a credit, to be computed as provided in
section forty-four of this chapter, against  the  tax  imposed  by  this
article.
(2)  Application  of credit. If the amount of the credit allowed under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, the excess will be treated as an overpayment of tax to be credited
or refunded in accordance with the provisions  of  section  six  hundred
eighty-six  of this article, provided, however, that no interest will be
paid thereon.
(3) Credit recapture. For provisions requiring  recapture  of  credit,
see section forty-four of this chapter.
* NB There are 3 subsection (jjj)'s
* (jjj)  Recovery tax credit. (1) Allowance of credit. A taxpayer that
is a qualified employer pursuant to section 32.38 of the mental  hygiene
law  that has received a certificate of tax credit from the commissioner
of the office of  alcoholism  and  substance  abuse  services  shall  be
allowed  a  credit  against the tax imposed by this article equal to the
amount shown on such certificate of tax credit. A  taxpayer  that  is  a
partner  in  a  partnership,  member  of  a limited liability company or
shareholder  in  an  S  corporation  that  has  been  certified  by  the
commissioner of the office of alcoholism and substance abuse services as
a qualified employer pursuant to section 32.38 of the mental hygiene law
shall  be  allowed  its  pro  rata  share  of  the  credit earned by the
partnership, limited liability company or S corporation.
(2) Overpayment. If the  amount  of  the  credit  allowed  under  this
subsection  for  any  taxable  year  exceeds  the taxpayer's tax for the
taxable year, the excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions  of  section  six
hundred  eighty-six of this article, provided, however, no interest will
be paid thereon.
(3) Tax return requirement. The taxpayer shall be required  to  attach
to  its tax return, in the form prescribed by the commissioner, proof of
receipt of its certificate of tax credit issued by the  commissioner  of
the  office  of  alcoholism  and  substance  abuse  services pursuant to
section 32.38 of the mental hygiene law.
* NB There are 3 subsection (jjj)'s
* (jjj) Central business district toll credit. (1) For  taxable  years
beginning on or after January first, two thousand twenty-one, a resident
individual  whose  primary  residence is located in the central business
district established pursuant to article forty-four-C of the vehicle and
traffic law and whose New York adjusted gross  income  for  the  taxable

year  is  less than sixty thousand dollars shall be entitled to a credit
as calculated pursuant to paragraph two of this subsection.
(2)  The  credit  shall  be  equal  to the aggregate amount of central
business district tolls paid by the taxpayer  during  the  taxable  year
pursuant  to the central business district tolling program authorized by
article forty-four-C of the vehicle and traffic law. Provided,  however,
that  any  toll  that would constitute a trade or business expense under
section 162 of the internal revenue code shall be excluded.
(3) If the amount of the credit allowed under this subsection for  any
taxable  year  shall exceed the taxpayer's tax for such year, the excess
shall be treated as an overpayment of tax to be credited or refunded  in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.
* NB There are 3 subsection (jjj)'s
(kkk)  Credit  for  pass-through entity tax. (1) A taxpayer partner or
member of an electing partnership  and  a  taxpayer  shareholder  of  an
electing  S  corporation  subject  to tax under article twenty-four-A of
this chapter shall be entitled to a credit against the  tax  imposed  by
this  article  as  provided  in  this  subsection.  For purposes of this
subsection, the terms "electing partnership," "electing S  corporation,"
"pass-through entity tax," and "direct share of pass-through entity tax"
shall  have  the  same meanings as used in article twenty-four-A of this
chapter.
(2)  The  credit  shall  be  equal  to  the  partner's,  member's   or
shareholder's direct share of the pass-through entity tax.
(3)  If  a  taxpayer  is  a partner, member or shareholder in multiple
electing partnerships and/or electing  S  corporations  subject  to  tax
pursuant to article twenty-four-A of this chapter, the taxpayer's credit
shall be the sum of such credits calculated pursuant to paragraph two of
this  subsection  with regard to each entity in which the taxpayer has a
direct ownership interest.
(4) If the amount of the credit allowable pursuant to this  subsection
for  any taxable year exceeds the tax due for such year pursuant to this
article, the excess shall be treated as an overpayment, to  be  credited
or refunded, without interest.
(5)  Limitation  on  credit.  No credit shall be allowed to a taxpayer
under this subsection unless the  electing  partnership  or  electing  S
corporation  provided sufficient information to identify the taxpayer on
its pass-through entity tax return as required under  paragraph  two  of
subsection  (c)  of section eight hundred sixty-five of this article for
an electing partnership or paragraph two of subsection  (d)  of  section
eight  hundred sixty-five of this article for an electing S corporation.
The credit allowed to a taxpayer under this subsection shall not  exceed
the  direct  share  of pass-through entity tax reported by such electing
partnership or electing S corporation attributable to such  taxpayer  on
the  entity's  return filed pursuant to section eight hundred sixty-five
of this article.
(lll) Restaurant return-to-work tax credit. (1) Allowance of credit. A
taxpayer shall be allowed a  credit,  to  be  computed  as  provided  in
section  forty-six  of  this  chapter,  against  the tax imposed by this
article.
(2) Application of credit. If the amount of the credit  allowed  under
this subsection for the taxable year exceeds the taxpayer's tax for such
year,  the  excess  shall  be  treated  as  an  overpayment of tax to be
credited or refunded in accordance with the provisions  of  section  six
hundred  eighty-six of this article, provided, however, that no interest
will be paid thereon.
* (mmm) New York city musical and theatrical  production  tax  credit.
(1)  Allowance  of  credit.  A taxpayer shall be allowed a credit, to be
computed as provided in section twenty-four-c of this  chapter,  against
the tax imposed by this article.
(2)  Application  of credit. If the amount of the credit allowed under
this subsection for the taxable year exceeds the taxpayer's tax for such
year, the excess shall be  treated  as  an  overpayment  of  tax  to  be
credited  or  refunded  in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no  interest
shall be paid thereon.
* NB Repealed January 1, 2026
* (nnn) Farm employer overtime credit. (1) A taxpayer shall be allowed
a  credit,  to  be  computed  as provided in section forty-two-a of this
chapter, against the tax imposed by this article.
(2) Application of credit. If the amount of credit allowed under  this
subsection  for  any  taxable  year  exceeds the taxpayer's tax for such
year, the excess shall be  treated  as  an  overpayment  of  tax  to  be
credited  or  refunded  in  accordance with the provision of section six
hundred eighty-six of this article, provided, however, that no  interest
shall be paid thereon.
* NB There are 5 sb§ (nnn)'s
* (nnn)  COVID-19 capital costs tax credit. (1) Allowance of credit. A
taxpayer shall be allowed a  credit,  to  be  computed  as  provided  in
section  forty-seven  of  this  chapter, against the tax imposed by this
article.
(2) Application of credit. If the amount of the credit  allowed  under
this subsection for the taxable year exceeds the taxpayer's tax for such
year,  the  excess  shall  be  treated  as  an  overpayment of tax to be
credited or refunded in accordance with the provisions  of  section  six
hundred  eighty-six of this article, provided, however, that no interest
will be paid thereon.
* NB There are 5 sb§ (nnn)'s
* (nnn) Grade no. 6 heating oil conversion tax credit.  (1)  Allowance
of  credit.  A  taxpayer  shall  be  allowed a credit, to be computed as
provided in section forty-seven of this chapter, against the tax imposed
by this article.
(2) Application of credit. If the amount of the credit  allowed  under
this subsection for the taxable year exceeds the taxpayer's tax for such
year, the excess will be treated as an overpayment of tax to be credited
or  refunded  in  accordance  with the provisions of section six hundred
eighty-six of this article, provided, however, that no interest will  be
paid thereon.
* NB There are 5 sb§ (nnn)'s
* (nnn) Additional restaurant return-to-work tax credit. (1) Allowance
of  credit.  A  taxpayer  shall  be  allowed a credit, to be computed as
provided in section forty-six-a of this chapter, against the tax imposed
by this article.
(2) Application of credit. If the amount of the credit  allowed  under
this subsection for the taxable year exceeds the taxpayer's tax for such
year,  the  excess  shall  be  treated  as  an  overpayment of tax to be
credited or refunded in accordance with the provisions  of  section  six
hundred  eighty-six of this article, provided, however, that no interest
will be paid thereon.
* NB There are 5 sb§ (nnn)'s
* (nnn) Empire state  digital  gaming  media  production  credit.  (1)
Allowance  of  credit.  A  taxpayer  who is eligible pursuant to section
forty-five of this chapter shall be allowed a credit to be  computed  as
provided  in  such  section  forty-five  against the tax imposed by this

article. Under no circumstances may a single taxpayer receive more  than
one million five hundred thousand dollars in tax credits per year.
(2) Application of credit. If the amount of the credit allowable under
this subsection for any taxable year exceeds the taxpayer's tax for such
year,  the  excess  shall  be  treated  as  an  overpayment of tax to be
credited or refunded as provided in section six  hundred  eighty-six  of
this article, provided, however, that no interest shall be paid thereon.
* NB There are 5 sb§ (nnn)'s
(ooo)  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. If the amount of the credit allowed under
this subsection for the taxable year exceeds the taxpayer's tax for such
year, the excess shall be  treated  as  an  overpayment  of  tax  to  be
credited  or  refunded  in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no  interest
will be paid thereon.
* (ppp)  Newspaper  and broadcast media jobs tax credit. (1) Allowance
of credit. A taxpayer shall be allowed  a  credit,  to  be  computed  as
provided  in section forty-nine of this chapter, against the tax imposed
by this article.
(2) Application of credit. If the amount of the credit  allowed  under
this subsection for the taxable year exceeds the taxpayer's tax for such
year,  the  excess  shall  be  treated  as  an  overpayment of tax to be
credited or refunded in accordance with the provisions  of  section  six
hundred  eighty-six of this article, provided, however, that no interest
will be paid thereon.
* NB There are 2 sb (ppp)'s
* (ppp) Commercial security tax credit. (1)  Allowance  of  credit.  A
taxpayer  shall  be  allowed  a  credit,  to  be computed as provided in
section forty-nine of this chapter, against  the  tax  imposed  by  this
article.
(2)  Application  of credit. If the amount of the credit allowed under
this subsection for the taxable year exceeds the taxpayer's tax for such
year, the excess shall be  treated  as  an  overpayment  of  tax  to  be
credited  or  refunded  in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no  interest
will be paid thereon.
* NB There are 2 sb (ppp)'s
(vvv)  Empire  state apprenticeship tax credit. (1)(A) A taxpayer that
has been certified by the commissioner of labor as a certified  employer
pursuant  to  section  twenty-five-c of the labor law shall be allowed a
credit against the tax imposed by  this  article  equal  to  the  amount
specified  under  subdivision  (c) of section twenty-five-c of the labor
law. In no event shall the taxpayer be allowed a credit greater than the
amount of the credit listed on the final certificate of tax credit.
(B) A taxpayer that is a partner in a partnership, member of a limited
liability company or shareholder in  an  S  corporation  that  has  been
certified  by the commissioner of labor as a certified employer pursuant
to section twenty-five-c of the labor law shall be allowed its pro  rata
share of the credit earned by the partnership, limited liability company
or S corporation.
(2)  If the amount of the credit allowed under this subsection exceeds
the taxpayer's tax for the  taxable  year,  any  amount  of  credit  not
deductible in that taxable year will be treated as an overpayment of tax
to  be credited or refunded in accordance with the provisions of section

six hundred eighty-six of this article. Provided, however,  no  interest
will be paid thereon.
(yyy)  Order  of  credits.  Credits allowable under this article which
cannot be carried over and which are not refundable  shall  be  deducted
first.  Credits  allowable under this article which can be carried over,
and carryovers of such credits, shall be deducted next, and  among  such
credits,  those whose carryover is of limited duration shall be deducted
before those whose carryover is of unlimited duration. Credits allowable
under this article which are refundable shall be deducted last.
(zzz) Cross references.--For credit in respect of:
(1) taxes withheld on wages, see section six hundred seventy-three,
(2) taxes imposed on a resident  by  other  states,  see  section  six
hundred twenty,
(3)  taxes  overpaid for a prior taxable year, see section six hundred
eighty-six,
(4) taxes paid  by  a  trust  for  a  prior  taxable  year  on  income
subsequently  distributed,  see  sections six hundred twenty-one and six
hundred thirty-five.