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SECTION 606
Credits against tax
Tax (TAX) CHAPTER 60, ARTICLE 22, PART 1
§ 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 taxpayer who
qualifies as an owner of a new business for purposes of paragraph ten of
this subsection may, at his option, receive such excess as a refund. Any
refund paid pursuant to this paragraph shall be deemed to be a refund of
an overpayment of tax as provided in section six hundred eighty-six of
this article, provided, however, that no interest shall be paid thereon.

(6) At the option of the taxpayer for taxable years commencing prior
to January first, nineteen hundred eighty-seven, air or water pollution
control facilities which qualify for elective modifications under
subsection (h) of section six hundred twelve, or research and
development facilities which qualify for elective modifications under
paragraphs two and four of subsection (g) of section six hundred twelve
may be treated as property principally used by the taxpayer in the
production of goods by manufacturing, processing, assembling, refining,
mining, extracting, farming, agriculture, horticulture, floriculture,
viticulture or commercial fishing, provided the property otherwise
qualifies under paragraph two of this subsection, in which event, a
modification shall not be allowed under such subsection (h) and under
such paragraphs two and four of subsection (g).

(7) (A) With respect to property which is depreciable pursuant to
section one hundred sixty-seven of the internal revenue code but is not
subject to the provisions of section one hundred sixty-eight of such
code and which is disposed of or ceases to be in qualified use prior to
the end of the taxable year in which the credit is to be taken, the
amount of the credit shall be that portion of the credit provided for in
this subsection which represents the ratio which the months of qualified
use bear to the months of useful life. If property on which credit has
been taken is disposed of or ceases to be in qualified use prior to the
end of its useful life, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. Provided, however, if such property is disposed of or
ceases to be in qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not be necessary to add
back the credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to the months
of useful life. For purposes of this subparagraph, useful life of
property shall be the same as the taxpayer uses for depreciation
purposes when computing his federal income tax liability.

(B) Except with respect to that property to which subparagraph (D) of
this paragraph applies, with respect to three-year property, as defined
in subsection (e) of section one hundred sixty-eight of the internal
revenue code, which is disposed of or ceases to be in qualified use
prior to the end of the taxable year in which the credit is to be taken,
the amount of the credit shall be that portion of the credit provided
for in this subsection which represents the ratio which the months of
qualified use bear to thirty-six. If property on which credit has been
taken is disposed of or ceases to be in qualified use prior to the end
of thirty-six months, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. The amount of credit allowed for actual use shall be
determined by multiplying the original credit by the ratio which the
months of qualified use bear to thirty-six.

(C) Except with respect to that property to which subparagraph (D) of
this paragraph applies, with respect to property subject to the
provisions of section one hundred sixty-eight of the internal revenue
code, other than three-year property as defined in subsection (e) of
such section one hundred sixty-eight which is disposed of or ceases to
be in qualified use prior to the end of the taxable year in which the
credit is to be taken, the amount of the credit shall be that portion of
the credit provided for in this subsection which represents the ratio
which the months of qualified use bear to sixty. If property on which
credit has been taken is disposed of or ceases to be in qualified use
prior to the end of sixty months, the difference between the credit
taken and the credit allowed for actual use must be added back in the
year of disposition. The amount of credit allowed for actual use shall
be determined by multiplying the original credit by the ratio which the
months of qualified use bear to sixty.

(D) With respect to any property to which section one hundred
sixty-eight of the internal revenue code applies, which is a building or
a structural component of a building and which is disposed of or ceases
to be in qualified use prior to the end of the taxable year in which the
credit is to be taken, the amount of the credit shall be that portion of
the credit provided for in this subsection which represents the ratio
which the months of qualified use bear to the total number of months
over which the taxpayer chooses to deduct the property under the
internal revenue code. If property on which credit has been taken is
disposed of or ceases to be in qualified use prior to the end of the
period over which the taxpayer chooses to deduct the property under the
internal revenue code, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. Provided, however, if such property is disposed of or
ceases to be in qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not be necessary to add
back the credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to the total
number of months over which the taxpayer chooses to deduct the property
under the internal revenue code.

(E) For purposes of this paragraph, property (i) which is described in
subparagraph (B), (C) or (D) of this paragraph, and (ii) which is
subject to paragraph twenty-six of subsection (c) and paragraph
twenty-five of subsection (b) of section six hundred twelve of this
chapter, shall be treated as property which is depreciable pursuant to
section one hundred sixty-seven of the internal revenue code but is not
subject to section one hundred sixty-eight of such code.

(F) For purposes of this paragraph, where a credit is allowed with
respect to an air pollution control facility on the basis of a
certificate of compliance issued pursuant to the environmental
conservation law and the certificate is revoked pursuant to subdivision
three of section 19-0309 of the environmental conservation law, such
revocation shall constitute a disposal or cessation of qualified use,
unless such facility is described in clause (i) or (iii) of subparagraph
(A) of paragraph two of this subsection. Also for purposes of this
subparagraph, the use of an air pollution control facility or an
industrial waste treatment facility for the primary purpose of salvaging
materials which are usable in the manufacturing process or are
marketable shall constitute a cessation of qualified use, unless such
facility is described in clause (i) or (iii) of subparagraph (A) of
paragraph two of this subsection.

(G) For taxable years commencing on or after January first, nineteen
hundred eighty-seven, the amount required to be added back pursuant to
this paragraph shall be augmented by an amount equal to the product of
such amount and the underpayment rate of interest (without regard to
compounding), set by the commissioner pursuant to subsection (j) of
section six hundred ninety-seven, in effect on the last day of the
taxable year.

(H) If, as of the close of the taxable year, there is a net increase
with respect to the taxpayer in the amount of nonqualified nonrecourse
financing (within the meaning of section 46(c) (8) of the internal
revenue code) with respect to any property with respect to which the
credit under this subsection was limited based on attributable
nonqualified nonrecourse financing, then an amount equal to the decrease
in such credit which would have resulted from reducing, by the amount of
such net increase, the cost or other basis taken into account with
respect to such property must be added back in such taxable year. The
amount of nonqualified nonrecourse financing shall not be treated as
increased by reason of a transfer of (or agreement to transfer) any
evidence of an indebtedness if such transfer occurs (or such agreement
is entered into) more than one year after the date such indebtedness was
incurred.

(10) For purposes of paragraph five of this subsection, an individual
who is either a sole proprietor or a member of a partnership shall
qualify as an owner of a new business unless:

(A) the business of which the individual is an owner is substantially
similar in operation and in ownership to a business entity taxable, or
previously taxable, under section one hundred eighty-three, one hundred
eighty-four or former section one hundred eighty-five former section of
article nine; article nine-A or thirty-three of this chapter; article
twenty-three of this chapter or which would have been subject to tax
under such article twenty-three (as such article was in effect on
January first, nineteen hundred eighty), article thirty-two of this
chapter or which would have been subject to tax under such article
thirty-two (as such article was in effect on December thirty-first, two
thousand fourteen) or the income (or losses) of which is (or was)
includable under article twenty-two of this chapter whereby the intent
and purpose of this paragraph and paragraph five of this subsection with
respect to refunding of credit to new business would be evaded; or

(B) the individual has operated such new business entity in this state
for more than five taxable years (excluding short years of the
business).

(11) Retail enterprise tax credit. A retail enterprise, not eligible
to claim the credit under paragraph one of this subsection, but eligible
to claim the credit allowable under section thirty-eight of the internal
revenue code pursuant solely to the provisions of subparagraph (E) of
paragraph one of subsection (a) of section forty-eight of such code,
shall be allowed a credit as hereinafter computed. The amount of the
credit shall be the percentage appearing in paragraph one of this
subsection for the periods described therein for the amount of qualified
rehabilitation expenditures, as defined in subsection (g) of section
forty-eight of such code, paid or incurred with respect to a qualified
rehabilitated building, as defined in such subsection (g), located in
this state and such expenditures shall be further limited to only the
portion thereof paid or incurred with respect to that part of a
qualified rehabilitated building employed by such taxpayer in the retail
sales activity of such retail enterprise. For the purposes of this
subsection, the term "retail enterprise" means a taxpayer which is: (A)
a registered vendor under article twenty-eight of this chapter, (B)
primarily engaged in the retail sale, as the term "retail sale" is
defined in subparagraph (i) of paragraph four of subdivision (b) of
section eleven hundred one of this chapter, of tangible personal
property, and (C) otherwise eligible for the credit allowed pursuant to
section thirty-eight of the internal revenue code.

(12) Rehabilitation credit for historic barns. A taxpayer shall be
allowed a credit, to be computed as hereinafter provided, against the
tax imposed by this article. The amount of the credit shall be
twenty-five percent of the taxpayer's qualified rehabilitation
expenditures 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 three hundred fifty of the
executive 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 three hundred fifty of the executive law, and has
received a discharge other than bad conduct or dishonorable from such
service;

* NB Effective until April 1, 2023

* (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;

* NB Effective April 1, 2023

(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 and
is at least four years of age. The applicable percentage shall be
thirty-three percent. For purposes of this subsection, any reference to
section 24 of the Internal Revenue Code shall be a reference to such
section as it existed immediately prior to the enactment of Public Law
115-97.

(2) If the amount of the credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
shall be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.

(3) In the case of a husband and wife who file a joint federal return,
but who are required to determine their New York taxes separately, the
credit allowed pursuant to this subsection may be applied against the
tax imposed of either or divided between them as they may elect.

(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.

(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, 2024
* (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

(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-four.

(2) Application of credit. If the amount of the credit allowable under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, fifty percent of the excess shall be treated as an overpayment of
tax to be credited or refunded as provided in section six hundred
eighty-six of this article, provided, however, that no interests shall
be paid thereon. The balance of such credit not credited or refunded in
such taxable year may be carried over to the immediately succeeding
taxable year and may be deducted from the taxpayer's tax for such year.
The excess, if any, of the amount of the credit over the tax for such
succeeding year shall be treated as an overpayment of tax to be credited
or refunded as provided in section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.

* NB There are 2 sb (jj)'s

* (jj) Biofuel production credit. A taxpayer shall be allowed a credit
to be computed as provided in section twenty-eight of this chapter, as
added by part X of chapter sixty-two of the laws of two thousand six,
against the tax imposed by this article. If the amount of the credit
allowed under this subsection for any taxable year shall exceed the
taxpayer's tax for such year, the excess shall be treated as an
overpayment of tax to be credited or refunded in accordance with the
provisions of section six hundred eighty-six of this article, provided,
however, that no interest shall be paid thereon. The tax credit allowed
pursuant to this section shall apply to taxable years beginning before
January first, two thousand twenty.

* NB There are 2 sb (jj)'s

(kk) Conservation easement tax credit. (1) Credit allowed. In the case
of a taxpayer who owns land that is subject to a conservation easement
held by a public or private conservation agency, there shall be allowed
a credit for twenty-five percent of the allowable school district,
county and town real property taxes on such land. In no event shall the
credit allowed under this subsection in combination with any other
credit for such school district, county and town real property taxes
under this section exceed such taxes.

(2) Conservation easement. For purposes of this subsection, the term
"conservation easement" means a perpetual and permanent conservation
easement as defined in article forty-nine of the environmental
conservation law that serves to protect open space, scenic, natural
resources, biodiversity, agricultural, watershed and/or historic
preservation resources. Any conservation easement for which a tax credit
is claimed under this subsection shall be filed with the department of
environmental conservation, as provided for in article forty-nine of the
environmental conservation law and such conservation easement shall
comply with the provisions of title three of such article, and the
provisions of subdivision (h) of section 170 of the internal revenue
code. Dedications of land for open space through the execution of
conservation easements for the purpose of fulfilling density
requirements to obtain subdivision or building permits shall not be
considered a conservation easement under this subsection.

(3) Land. For purposes of this subsection, the term "land" means a fee
simple title to real property located in this state, with or without
improvements thereon; rights of way; water and riparian rights;
easements; privileges and all other rights or interests of any land or
description in, relating to or connected with real property, excluding
buildings, structures, or improvements.

(4) Public or private conservation agency. For purposes of this
subsection, the term "public or private conservation agency" means any
state, local, or federal governmental body; or any private
not-for-profit charitable corporation or trust which is authorized to do
business in the state of New York, is organized and operated to protect
land for natural resources, conservation or historic preservation
purposes, is exempt from federal income taxation under section 501(c)(3)
of the internal revenue code, and has the power to acquire, hold and
maintain land and/or interests in land for such purposes.

(5) Credit limitation. The amount of the credit that may be claimed by
a taxpayer pursuant to this subsection shall not exceed five thousand
dollars in any given year.

(6) Application of the credit. If the amount of the credit under this
subsection for any taxable year shall exceed the taxpayer's tax for such
year, the excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no interest
shall be paid therein.

(ll) Home heating system credit. (1) Allowance of credit for
replacement. A taxpayer shall be allowed a credit against the tax
imposed by this article for costs incurred on or after July first, two
thousand six and before July first, two thousand seven by a taxpayer
which are directly associated with the replacement of an existing home
heating system, in his or her principal residence, if such residence is
located in this state, provided such home heating system after such
replacement qualifies for, and is labeled with, an Energy Star label by
the manufacturer, pursuant to an agreement among the manufacturer, the
United States environmental protection agency and the United States
department of energy. The amount of the credit shall be equal to fifty
percent of the cost of such replacement but such credit shall not exceed
five hundred dollars.

(2) Multiple taxpayers. If the principal residence is shared by two or
more taxpayers, the amount of the credit allowable under this subsection
for each such eligible taxpayer shall be prorated according to the
percentage of the total expenditure for such replacement incurred by
each taxpayer.

(3) Application of credit. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no interest
shall be paid thereon.

(mm) Clean heating fuel credit. (1) A taxpayer shall be allowed a
credit against the tax imposed by this article. Such credit, to be
computed as hereinafter provided, shall be allowed for bioheating fuel,
used for space heating or hot water production for residential purposes
within this state and purchased on or after July first, two thousand six
and before July first, two thousand seven and on or after January first,
two thousand eight and before January first, two thousand twenty-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 twenty-five, a taxpayer shall be
allowed a credit as hereinafter provided, against the tax imposed by
this article, in an amount equal to one hundred percent of the amount of
credit allowed the taxpayer with respect to a certified historic
structure, and one hundred fifty percent of the amount of credit allowed
the taxpayer with respect to a certified historic structure that is a
small project, under internal revenue code section 47(c)(3), determined
without regard to ratably allocating the credit over a five year period
as required by subsection (a) of such section 47, with respect to a
certified historic structure located within the state. Provided,
however, the credit shall not exceed five million dollars. For taxable
years beginning on or after January first, two thousand twenty-five, a
taxpayer shall be allowed a credit as hereinafter provided, against the
tax imposed by this article, in an amount equal to thirty percent of the
amount of credit allowed the taxpayer with respect to a certified
historic structure under internal revenue code section 47(c)(3),
determined without regard to ratably allocating the credit over a five
year period as required by subsection (a) of such section 47, with
respect to a certified historic structure located within the state;
provided, however, the credit shall not exceed one hundred thousand
dollars.

(B) If the taxpayer is a partner in a partnership or a shareholder of
a New York S corporation, then the credit cap imposed in subparagraph
(A) of this paragraph shall be applied at the entity level, so that the
aggregate credit allowed to all the partners or shareholders of each
such entity in the taxable year does not exceed the credit cap that is
applicable in that taxable year.

(2) Tax credits allowed pursuant to this subsection shall be allowed
in the taxable year that the qualified rehabilitation is placed in
service under section 167 of the federal internal revenue code.

(3) If the taxpayer is allowed a credit pursuant to section 47 of the
internal revenue code with respect to a qualified rehabilitation that is
also the subject of the credit allowed by this subsection and that
credit pursuant to such section 47 is recaptured pursuant to subsection
(a) of section 50 of the internal revenue code, a portion of the credit
allowed under this subsection must be added back in the same taxable
year and in the same proportion as the federal recapture.

(4) If the amount of the credit allowed under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
shall be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon.

(5) Except in the case of a qualified rehabilitation project
undertaken within a state park, state historic site, or other land owned
by the state, that is under the jurisdiction of the office of parks,
recreation and historic preservation, to be eligible for the credit
allowable under this subsection the rehabilitation project shall be in
whole or in part located within a census tract which is identified as
being at or below one hundred percent of the state median family income
as calculated as of April first of each year using the most recent five
year estimate from the American community survey published by the United
States Census bureau. If there is a change in the most recent five year
estimate, a census tract that qualified for eligibility under this
program before information about the change was released will remain
eligible for a credit under this subsection for an additional two
calendar years.

(6) For purposes of this subsection the term "small project" means
qualified rehabilitation expenditures totaling two million five hundred
thousand dollars or less.

(pp) Historic homeownership rehabilitation credit. (1) For taxable
years beginning on or after January first, two thousand seven, a
taxpayer shall be allowed a credit, to be computed as hereinafter
provided, against the tax imposed by this article. The amount of the
credit shall be equal to twenty percent of the qualified rehabilitation
expenditures made by the taxpayer with respect to a qualified historic
home and may be allowed in the taxable year in which the final
certification step of the certified rehabilitation is completed.

(A) If such expenditures relate only to exterior work, the credit
shall be allowed for qualified rehabilitation expenditures if the
exterior work has been approved by a local landmark commission
established pursuant to section ninety-six-a or one hundred nineteen-dd
of the general municipal law or by the office of parks, recreation and
historic preservation.

(B) If such expenditures relate to both exterior and interior work,
the credit shall be allowed for qualified rehabilitation expenditures
that have been approved by the office of parks, recreation and historic
preservation or by a local government certified pursuant to section
101(c)(1) of the national historic preservation act. Under this
subparagraph, approval is necessary for the qualified rehabilitation
expenditures related to both the exterior work on the qualified historic
home and interior work affecting primary significant historic spaces of
the qualified historic home.

(2) (A) With respect to any particular residence of a taxpayer, the
credit allowed under paragraph one of this subsection shall not exceed
fifty thousand dollars for taxable years beginning on or after January
first, two thousand ten and before January first, two thousand
twenty-five and twenty-five thousand dollars for taxable years beginning
on or after January first, two thousand twenty-five. In the case of a
husband and wife, the amount of the credit shall be divided between them
equally or in such other manner as they may both elect. If a taxpayer
incurs qualified rehabilitation expenditures in relation to more than
one residence in the same year, the total amount of credit allowed under
paragraph one of this subsection for all such expenditures shall not
exceed fifty thousand dollars for taxable years beginning on or after
January first, two thousand ten and before January first, two thousand
twenty-five and twenty-five thousand dollars for taxable years beginning
on or after January first, two thousand twenty-five.

(B) For taxable years beginning on or after January first, two
thousand ten and before January first, two thousand twenty-five, if the
amount of credit allowable under this subsection shall exceed the
taxpayer's tax for such year, and the taxpayer's New York adjusted gross
income for such year does not exceed sixty thousand dollars, the excess
shall be treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section six hundred eighty-six of this
article, provided, however, that no interest shall be paid thereon. If
the taxpayer's New York adjusted gross income for such year exceeds
sixty thousand dollars, the excess credit that may be carried over to
the following year or years and may be deducted from the taxpayer's tax
for such year or years. For taxable years beginning on or after January
first, two thousand twenty-five, if the amount of credit allowable under
this subsection shall exceed the taxpayer's tax for such year, the
excess may be carried over to the following year or years and may be
deducted from the taxpayer's tax for such year or years.

(3)(A) The term "qualified rehabilitation expenditure" means, for
purposes of this subsection, any amount properly chargeable to a capital
account:

(i) in connection with the certified rehabilitation of a qualified
historic home, and

(ii) for property for which depreciation would be allowable under
section 168 of the internal revenue code if the qualified historic home
were used in a trade or business.

(B) Such term shall not include (i) the cost of acquiring any building
or interest therein, (ii) any expenditure attributable to the
enlargement of an existing building, or (iii) any expenditure made prior
to January first, two thousand seven.

(C) Such term shall not include any expenditure in connection with the
rehabilitation of a qualified historic home unless at least five percent
of the total expenditures made in the rehabilitation process are
allocable to the rehabilitation of the exterior of such building.

(D) If only a portion of a building is used as a residence of the
taxpayer, only qualified rehabilitation expenditures which are properly
allocable to such residential portion shall be taken into account under
this subsection.

(4)(A) The term "certified rehabilitation" means, for purposes of this
subsection, any rehabilitation of a certified historic structure which
has been approved and certified as being consistent with the standards
established by the commissioner of parks, recreation and historic
preservation for rehabilitation by the office of parks, recreation and
historic preservation, a local government certified pursuant to section
101(c)(1) of the national historic preservation act or a local landmark
commission established pursuant to section ninety-six-a or one hundred
nineteen-dd of the general municipal law.

(B) A certified rehabilitation shall require:

(i) an initial certification that the structure meets the definition
of the term "certified historic structure";

(ii) a second certification, to be issued prior to construction,
certifying that the proposed rehabilitation work is consistent with
standards established by the commissioner of parks, recreation and
historic preservation for rehabilitation; and

(iii) a final certification issued when construction is completed,
certifying that the work was completed as proposed and that the costs
are consistent with the work completed. Such final certification shall
be acceptable as proof that the expenditures related to such
construction qualify as qualified rehabilitation expenditures for
purposes of the credit allowed under either subparagraph (A) or (B) of
paragraph one of this subsection.

(5)(A) The term "qualified historic home" means, for purposes of this
subsection, a certified historic structure located within New York
state:

(i) which has been substantially rehabilitated,

(ii) which, or any portion of which, is owned, in whole or part, by
the taxpayer,

(iii) in which the taxpayer resides during the taxable year in which
the taxpayer is allowed a credit under this subsection, and

(iv) (1) which is in whole or in part a targeted area residence within
the meaning of section 143(j) of the internal revenue code; or (2) is
located within a census tract which is identified as being at or below
one hundred percent of the state median family income in the most recent
federal census; or (3) which is located in a city with a population of
less than one million with a poverty rate greater than fifteen percent,
rounded to the nearest whole number, in the most recent five year
estimate from the American community survey published by the United
States census bureau.

(B) A building shall be treated as having been "substantially
rehabilitated" if the qualified rehabilitation expenditures in relation
to such building total five thousand dollars or more.

(6) The term "certified historic structure" means, for purposes of
this subsection, any building (and its structural components) which:

(i) is listed in the state or national register of historic places, or

(ii) is located in a state or national registered historic district
and is certified as being of historic significance to the district.

(7) If the taxpayer holds stock as a tenant-shareholder in a
cooperative housing corporation, such taxpayer shall be treated as
owning the house or apartment which the taxpayer is entitled to occupy
as such shareholder.

(8)(A) A percentage of the total expenditures made in the
rehabilitation of the exterior of a building containing cooperative or
condominium dwelling units shall be attributed to each such unit within
the building based on the percentage of space each such unit occupies
within the building.

(B) In the case of a building where less than the entire building is
used as a residence of the taxpayer, only the portion of the total
expenditures made in the rehabilitation of the building that is
attributable to the residence of the taxpayer shall be treated as
qualified rehabilitation expenditures for the purposes of this
subsection.

(C) In the case of a building that is owned by and is a residence of
two or more persons, other than a husband and wife, the portion of the
total expenditures made in the rehabilitation of the building that is
attributable to each taxpayer shall be equal to the taxpayer's share of
ownership in such building.

(9) In the case of a building other than a building to which paragraph
ten of this subsection applies, qualified rehabilitation expenditures
shall be treated for purposes of this subsection as made on the date of
the final certification referred to in clause (iii) of subparagraph (B)
of paragraph four of this subsection.

(10)(A) In the case of a purchased qualified historic home, the
taxpayer shall be treated as having made, on the date of purchase, the
qualified rehabilitation expenditures made by the seller of such home.
For purposes of this subsection, expenditures made by the seller shall
be deemed qualified rehabilitation expenditures if such expenditures, if
made by the purchaser, would have so qualified.

(B) The term "purchased qualified historic home" means any qualified
historic home purchased by the taxpayer if:

(i) the taxpayer is the first purchaser of such home after the date of
the final certification referred to in clause (iii) of subparagraph (B)
of paragraph four of this subsection, and the purchase occurs within
five years after such date,

(ii) the taxpayer, during the taxable year in which the taxpayer is
allowed a credit under this subsection, resides in such home,

(iii) no credit was allowed to the seller under this subsection with
respect to such rehabilitation, and

(iv) the taxpayer is furnished with such information as the
commissioner determines is necessary to determine any credit under this
subsection.

(11)(A) If, before the end of the two-year period beginning either on
the date of the final certification referred to in clause (iii) of
subparagraph (B) of paragraph four of this subsection or, if paragraph
ten of this subsection applies, on the date of purchase of such building
by the taxpayer, the taxpayer disposes of such taxpayer's interest in
such building, or such building ceases to be used as a residence of the
taxpayer, the taxpayer's tax imposed by this article for the taxable
year in which such disposition or cessation occurs shall be increased by
the recapture portion of the credit allowed under this subsection for
all prior taxable years with respect to such rehabilitation.

(B) For purposes of subparagraph (A) of this paragraph, the recapture
portion shall be the product of the amount of credit claimed by the
taxpayer multiplied by a ratio, the numerator of which is equal to
twenty-four less the number of months the building is used as the
taxpayer's residence and the denominator of which is twenty-four.

(12) Nothing contained in this subsection shall be construed to impose
a duty upon a local landmark commission established pursuant to section
ninety-six-a or one hundred nineteen-dd of the general municipal law or
a local government certified pursuant to section 101(c)(1) of the
national historic preservation act to undertake any review or approval
of an application for the certification of the rehabilitation of
historic structures and of rehabilitation expenditures provided for in
this subsection.

* (qq) Excelsior jobs program credit. (1) A taxpayer will be allowed a
credit, to the extent allowed under section thirty-one of this chapter,
against the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowed under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, the excess will be treated as an overpayment of tax to be credited
or refunded in accordance with the provisions of section six hundred
eighty-six of this article, provided, however, that no interest will be
paid thereon.

* NB There are 3 sb§ (qq)'s

* (qq) Empire state film post production credit. (1) Allowance of
credit. A taxpayer who is eligible pursuant to section thirty-one of
this chapter shall be allowed a credit to be computed as provided in
such section thirty-one against the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowable under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, fifty percent of the excess shall be treated as an overpayment of
tax to be credited or refunded in accordance with the provisions of
section one thousand eighty-six of this chapter. Provided, however, the
provisions of subsection (c) of section one thousand eighty-eight of
this chapter notwithstanding, no interest shall be paid thereon. The
balance of such credit not credited or refunded in such taxable year may
be carried over to the immediately succeeding taxable year and may be
deducted from the taxpayer's tax for such year. The excess, if any, of
the amount of the credit over the tax for such succeeding year shall be
treated as an overpayment of tax to be credited or refunded in
accordance with the provisions of section one thousand eighty-six of
this chapter. Provided, however, the provisions of subsection (c) of
section one thousand eighty-eight of this chapter notwithstanding, no
interest shall be paid thereon.

* NB There are 3 sb§ (qq)'s

* (qq) Temporary deferral nonrefundable payout credit. (1) Allowance
of credit. A taxpayer shall be allowed a credit, to be computed as
provided in subdivision one of section thirty-four of this chapter,
against the tax imposed by this article.

(2) If the amount of credit allowable under this subsection for any
taxable year shall exceed the taxpayer's tax for such year, the excess
may be carried over to the following year or years, and may be deducted
from the taxpayer's tax for such year or years.

* NB There are 3 sb§ (qq)'s

(rr) Temporary deferral refundable payout credit. (1) Allowance of
credit. A taxpayer shall be allowed a credit, to be computed as provided
in subdivision two of section thirty-four of this chapter, against the
tax imposed by this article.

(2) Application of credit. If the amount of the credit allowed under
this subsection for any taxable year shall exceed the taxpayer's tax for
such year, the excess shall be treated as an overpayment of tax to be
credited or refunded in accordance with the provisions of section six
hundred eighty-six of this article, provided, however, that no interest
shall be paid thereon.

* (ss) Economic transformation and facility redevelopment program tax
credit. (1) Allowance of credit. A taxpayer shall be allowed a credit,
to the extent allowed under section thirty-five of this chapter, against
the tax imposed by this article.

(2) Application of credit. If the amount of the credit allowed under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, the excess will be treated as an overpayment of tax to be credited
or refunded in accordance with the provisions of section six hundred
eighty-six of this article, provided, however, that no interest will be
paid thereon.

* NB Repealed December 31, 2026

* (tt) New York youth jobs program tax credit. (1) A taxpayer that
has been certified by the commissioner of labor as a qualified employer
pursuant to section twenty-five-a of the labor law and received an
annual final certificate of tax credit from such commissioner shall be
allowed a credit against the tax imposed by this article equal to the
amount listed on the annual final certificate of tax credit issued by
the commissioner of labor pursuant to section twenty-five-a of the labor
law. A taxpayer that is a partner in a partnership, member of a limited
liability company or shareholder in an S corporation that has received
its annual final certificate of tax credit from the commissioner of
labor as a qualified employer pursuant to section twenty-five-a of the
labor law shall be allowed its pro rata share of the credit earned by
the partnership, limited liability company or S corporation. If the
qualified employer's taxable year is a calendar year, the employer shall
be entitled to claim the credit as calculated on the annual final
certificate of tax credit on the calendar year return for which the
annual final certificate of tax credit was issued. If the qualified
employer's taxable year is a fiscal year, the employer shall be entitled
to claim the credit as calculated on the annual final certificate of tax
credit on the return for the fiscal year that encompasses the date on
which the annual final certificate of tax credit is issued. For the
purposes of this subsection, the term "qualified employee" shall have
the same meaning as set forth in subdivision (b) of section
twenty-five-a of the labor law.

(2) If the amount of the credit allowed under this subsection exceeds
the taxpayer's tax for the taxable year, any amount of credit not
deductible in that taxable year will be treated as an overpayment of tax
to be credited or refunded in accordance with the provisions of section
six hundred eighty-six of this article. Provided, however, no interest
will be paid thereon.

(3) The taxpayer shall be required to attach to its tax return its
annual final certificate of tax credit issued by the commissioner of
labor pursuant to section twenty-five-a of the labor law. In no event
shall the taxpayer be allowed a credit greater than the amount of the
credit listed on the annual final certificate of tax credit.
Notwithstanding any provision of this chapter to the contrary, the
commissioner and the commissioner's designees may release the names and
addresses of any taxpayer claiming this credit and the amount of the
credit earned by the taxpayer. Provided, however, if a taxpayer claims
this credit because it is a member of a limited liability company, a
partner in a partnership, or a shareholder in a subchapter S
corporation, only the amount of credit earned by the entity and not the
amount of credit claimed by the taxpayer may be released.

* NB There are 3 sb (tt)'s

* (tt) Empire state jobs program retention credit. (1) Allowance of
credit. A taxpayer shall be allowed a credit, to be computed as provided
in section thirty-six of this chapter, against the tax imposed by this
article.

(2) Application of credit. If the amount of the credit allowed under
this subsection for any taxable year exceeds the taxpayer's tax for such
year, the excess will be treated as an overpayment of tax to be credited
or refunded in accordance with the provisions of section six hundred
eighty-six of this article, provided, however, that no interest will be
paid thereon.

* NB There are 3 sb (tt)'s

* (tt) Credit for companies who provide transportation to individuals
with disabilities. (1) Allowance and amount of credit. A taxpayer, who
provides a taxicab service as defined in section one hundred
forty-eight-a of the vehicle and traffic law, or a livery service as
defined in section one hundred twenty-one-e of the vehicle and traffic
law, shall be allowed a credit, to be computed as provided in this
subsection, against the tax imposed by this article. The amount of the
credit shall be equal to the incremental cost associated with upgrading
a vehicle so that it is accessible by individuals with disabilities as
defined in paragraph two of this subsection. Provided, however, that
such credit shall not exceed 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 by the federal
Architecture and Transportation Barriers Compliance Board, in Code of
Federal Regulations, title 36, section 1192.23, and the Federal Motor
Vehicle Safety Standards, Code of Federal Regulations, title 29, part
57. 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, and municipal tax
collecting 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, 2024

* (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

(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.