§ 1310 — Credits against tax

New York § 1310

• Jurisdiction: New York
• Law TAX: Tax
• Art. 30: City Personal Income Tax

Text

§ 1310. Credits against tax. (a) Credit to trust beneficiary receiving\naccumulation distribution. A beneficiary of a trust who is subject to a\ncity personal income tax imposed pursuant to the authority of this\narticle and whose New York adjusted gross income under article\ntwenty-two of this chapter includes all or part of an accumulation\ndistribution by such trust, as defined in section six hundred sixty-five\nof the internal revenue code, shall be allowed a credit against the tax\notherwise due under such city personal income tax for all or a\nproportionate part of any tax paid by the trust under such tax or under\nany prior local law of the city for any preceding taxable year which\nwould not have been payable if the trust had in fact made distributions\nto its beneficiaries at the times and in the amounts specified in\nsection six hundred sixty-six of the internal revenue code. The credit\nunder this subsection shall not reduce the tax otherwise due from the\nbeneficiary under such city personal income tax to an amount less than\nwould have been due if the accumulation distribution or his part thereof\nwere excluded from his New York adjusted gross income as defined in\nsection six hundred twelve of this chapter.\n (b) Credit for tax withheld. Wages upon which tax is required to be\nwithheld shall be taxable under a city personal income tax as if no\nwithholding were required, but any amount of tax actually deducted and\nwithheld under such tax in any calendar year shall be deemed to have\nbeen paid to the state tax commission on behalf of the person from whom\nwithheld, and such person shall be credited with having paid that amount\nof tax for the taxable year beginning in such calendar year. For a\ntaxable year of less than twelve months, the credit shall be made under\nregulations of the state tax commission.\n (c) Credit relating to net capital gain. For taxable years beginning\nin nineteen hundred eighty-seven, a credit against the city personal\nincome tax determined in accordance with section thirteen hundred four\nshall be allowed. The amount of the credit shall be one-half of one\npercent of net capital gain includible in city adjusted gross income for\nthe taxable year. The credit allowed by this section shall not exceed\nthe tax determined in accordance with section thirteen hundred four,\nreduced by the credits permitted under subsections (a) and (d) of this\nsection.\n (d) Household credit. (1) For taxable years beginning after nineteen\nhundred eighty-six, a credit against the city personal income tax\ndetermined in accordance with section thirteen hundred four shall be\nallowed. The credit, computed as described in paragraph two of this\nsubsection, shall not exceed the tax determined in accordance with\nsection thirteen hundred four reduced by the credit permitted under\nsubsection (a) of this section.\n (2) (A) For any individual who is not married nor the head of a\nhousehold nor a surviving spouse, the amount of the credit shall be\ndetermined in accordance with the following table:\nIf household gross The credit shall be:\n income is:\n For taxable years For taxable years\n beginning after 1986 beginning after\n and before 1996 1995\nNot over $7,500 $15 $15\nOver $7,500 but not\n over $10,000 $10 $15\nOver $10,000 but not\n over $12,500 $ 0 $10\n (B) For any husband and wife, head of household or surviving spouse,\nthe amount of the credit shall be determined by multiplying the number\nof exemptions for which the taxpayer (or in the case of a husband and\nwife, taxpayers) is entitled to a deduction for the taxable year for\nfederal income tax purposes under subsections (b) and (c) of section one\nhundred fifty-one of the internal revenue code by the credit factor for\nthe taxable year as specified in the following table:\nIf household gross The credit factor is:\n income is:\n For taxable years beginning in For taxable years\n 1987 1988 1989 through 1995 beginning after\n 1995\nNot over $12,500 $30 $50 $50 $30\nOver $12,500 but not\n over $15,000 $20 $40 $50 $30\nOver $15,000 but not\n over $17,500 $10 $20 $25 $25\nOver $17,500 but not\n over $20,000 $ 0 $15 $15 $15\nOver $20,000 but not\n over $22,500 $ 0 $ 0 $ 0 $10\n (3) For purposes of this subsection:\n (A) "Household gross income" shall mean the aggregate federal adjusted\ngross income of a household, as the term household is defined in\nsubparagraph (B) of this paragraph, for the taxable year.\n (B) "Household" means a husband and wife, a head of household, a\nsurviving spouse, or an individual who is not married nor the head of a\nhousehold nor a surviving spouse nor a taxpayer with respect to whom a\ndeduction under subsection (c) of section one hundred fifty-one of the\ninternal revenue code is allowable to another taxpayer for the taxable\nyear.\n (C) "Household gross income of a husband and wife" shall be the\naggregate of their federal adjusted gross incomes for the taxable year\nirrespective of whether joint or separate city income tax returns are\nfiled. Provided, however, that a husband or wife who is required to file\na separate city income tax return shall be permitted one-half the credit\notherwise allowed his or her household, except as limited by paragraph\none of this subsection.\n (D) "Household gross income" shall be computed in all cases as if each\nmember of the household were a resident for the entire taxable year.\n (E) If a taxpayer changes his status during his taxable year from\nresident to nonresident, or from nonresident to resident, the household\ncredit shall be prorated according to the number of months in the period\nof residence. In the case of a husband and wife, if either or both\nchanges his or her status from resident to nonresident or from\nnonresident to resident and separate returns are filed, the credit\ncomputed for the entire year shall be divided first as provided in\nsubparagraph (C) of this paragraph and then prorated according to the\nnumber of months in the period of residence.\n * (e) State school tax reduction credit. (1) For taxable years\nbeginning after nineteen hundred ninety-seven, and ending before two\nthousand sixteen, a state school tax reduction credit shall be allowed\nas provided in the following tables. The credit shall be allowed against\nthe taxes authorized by this article reduced by the credits permitted by\nthis article. If the credit exceeds the tax as so reduced, the taxpayer\nmay receive, and the comptroller, subject to a certificate of the\ncommissioner, shall pay as an overpayment, without interest, the amount\nof such excess. For purposes of this subsection, no credit shall be\ngranted to an individual with respect to whom a deduction under\nsubsection (c) of section one hundred fifty-one of the internal revenue\ncode is allowable to another taxpayer for the taxable year.\n (2) The amount of the credit under this paragraph shall be determined\nbased upon the taxpayer's income as defined in subparagraph (ii) of\nparagraph (b) of subdivision four of section four hundred twenty-five of\nthe real property tax law. For the purposes of this paragraph, any\ntaxpayer under subparagraphs (A) and (B) of this paragraph with income\nof more than two hundred fifty thousand dollars shall not receive a\ncredit.\n Beginning in the two thousand ten tax year and each tax year\nthereafter through two thousand fifteen, the "more than two hundred\nfifty thousand dollar" income limitation shall be adjusted by applying\nthe inflation factor set forth herein, and rounding each result to the\nnearest multiple of one hundred dollars. The department shall establish\nthe income limitation to be associated with each subsequent tax year by\napplying the inflation factor set forth herein to the figures that\ndefine the income limitation that were applicable to the preceding tax\nyear, as determined pursuant to this subsection, and rounding each\nresult to the nearest multiple of one hundred dollars. Such\ndetermination shall be made no later than March first, two thousand ten\nand each year thereafter.\n (A) Married individuals filing joint returns and surviving spouses. In\nthe case of a husband and wife who make a single return jointly and of a\nsurviving spouse:\n For taxable years beginning: The credit shall be:\n in 2001-2005 $125\n in 2006 $230\n in 2007-2008 $290\n in 2009 - 2015 $125\n (B) All others. In the case of an unmarried individual, a head of a\nhousehold or a married individual filing a separate return:\n For taxable years beginning: The credit shall be:\n in 2001-2005 $62.50\n in 2006 $115\n in 2007-2008 $145\n in 2009 - 2015 $62.50\n (4) Husband and wife who make a joint return. If a husband and wife\nmake a single return jointly, the credit under this subsection shall be\ndetermined under paragraph two of this subsection, if either of them has\nattained the age of sixty-five on or before the close of the taxable\nyear.\n (5) Part-year residents. If a taxpayer changes status during the\ntaxable year from resident to nonresident, or from nonresident to\nresident, the state school tax reduction credit shall be prorated\naccording to the number of months in the period of residence.\n * NB There are 2 sub§ (e)'s\n * (e) Credit for city of New York unincorporated business tax paid.\n (1) Notwithstanding any other provision of law to the contrary, any\ncity imposing a tax under this article is hereby authorized and\nempowered to adopt and amend local laws for any taxable year beginning\nafter nineteen hundred ninety-seven, as specified in such local laws,\nproviding for a credit as provided in paragraph two of this subsection\nagainst the taxes imposed pursuant to the authority granted by section\nthirteen hundred one of this article on the city taxable income\ndetermined pursuant to sections thirteen hundred four, thirteen hundred\nfour-A and thirteen hundred four-B of this article and on the ordinary\nincome portion of a lump sum distribution determined pursuant to section\nthirteen hundred one-B of this article, to any city resident individual,\nestate or trust whose city adjusted gross income includes income, gain,\nloss or deductions from one or more unincorporated businesses conducted\nby such city resident individual, estate or trust on which a tax is\nimposed by chapter five of title eleven of the administrative code of\nthe city of New York, or a distributive share of income, gain, loss and\ndeductions of, or guaranteed payments from, one or more partnerships on\nwhich a tax is imposed by such chapter. Any such local laws may contain\nprovisions to ensure that such credit shall not reduce the tax paid by a\ncity resident below that which would be paid by such city resident if\nsuch city resident were a city nonresident.\n (2) (A) Subject to the limitation set forth in subparagraph (B) of\nthis paragraph, the credit allowed to a taxpayer for a taxable year\nshall be equal to all or a portion of the amount determined in paragraph\nthree of this subsection, provided, however, such portion shall not be\nless than:\n (i) If the city taxable income is forty-two thousand dollars or less,\nsixty-five percent of the amount determined in paragraph three of this\nsubsection.\n (ii) If the city taxable income is greater than forty-two thousand\ndollars but not greater than one hundred forty-two thousand dollars, a\npercentage of the amount determined in paragraph three of this\nsubsection to be determined by subtracting from sixty-five percent, one\ntenth of a percentage point (.001) for every increment of two hundred\ndollars, or fractional part thereof, of city taxable income in excess of\nforty-two thousand dollars.\n (iii) If the city taxable income is greater than one hundred forty-two\nthousand dollars, fifteen percent of the amount determined in paragraph\nthree of this subsection.\n (B) Notwithstanding anything to the contrary in subparagraph (A) of\nthis paragraph, the credit allowed to a taxpayer for a taxable year\nunder this subsection shall not exceed the sum of the taxes that would\notherwise be imposed on such taxpayer for such taxable year pursuant to\nthe authority granted by section thirteen hundred one of this article on\nthe city taxable income determined pursuant to sections thirteen hundred\nfour, thirteen hundred four-A and thirteen hundred four-B of this\narticle and on the ordinary income portion of a lump sum distribution\ndetermined pursuant to section thirteen hundred one-B of this article,\nreduced by the credits allowed to such taxpayer pursuant to subsections\n(a), (c) and (d) of this section.\n (3) Subject to the provisions of subparagraph (C) of this paragraph,\nthe amount determined in this paragraph is the sum of:\n (A) for each unincorporated business conducted by the taxpayer, the\ntax imposed by chapter five of title eleven of the administrative code\nof the city of New York on such unincorporated business for its taxable\nyear ending with the taxable year of the taxpayer and paid by the\nunincorporated business; and\n (B) for each unincorporated business in which the taxpayer is a\npartner, the product of:\n (i) the sum of (I) the tax imposed by chapter five of title eleven of\nthe administrative code of the city of New York on such unincorporated\nbusiness for its taxable year ending within or with the taxable year of\nthe partner and paid by the unincorporated business and (II) the amount\nof any credit or credits taken by the unincorporated business under\nsubdivision (j) of section 11-503 of the administrative code of the city\nof New York for its taxable year ending within or with the taxable year\nof the partner; and\n (ii) a fraction, the numerator of which is the net total of the\npartner's distributive share of income, gain, loss and deductions of,\nand guaranteed payments from, the unincorporated business for such\ntaxable year, and the denominator of which is the sum, for such taxable\nyear, of the net total distributive shares of income, gain, loss and\ndeductions of, and guaranteed payments to, all partners in the\nunincorporated business for whom or which such net total (as separately\ndetermined for each partner) is greater than zero.\n (C) For a taxpayer that changes its status from a city resident to a\ncity nonresident or from a city nonresident to a city resident during\nthe taxable year:\n (i) the amount determined in subparagraph (A) of this paragraph shall\nbe, with respect to each unincorporated business conducted by the\ntaxpayer, the tax imposed by chapter five of title eleven of the\nadministrative code of the city of New York on such unincorporated\nbusiness for its taxable year ending with the taxable year of the\ntaxpayer and paid by the unincorporated business, multiplied by a\nfraction, the numerator of which is that portion of the income, gain,\nloss and deductions of the unincorporated business included in the\ntaxpayer's city adjusted gross income for the portion of the taxable\nyear during which the taxpayer was a city resident, and the denominator\nof which is the total, for such taxable year, of the income, gain, loss\nand deductions of the unincorporated business, and\n (ii) the amount determined in clause (ii) of subparagraph (B) of this\nparagraph shall be a fraction, the numerator of which is that portion of\nthe taxpayer's net total distributive share of income, gain, loss and\ndeductions of, and that portion of guaranteed payments from, the\nunincorporated business included in the taxpayer's city adjusted gross\nincome for the portion of the taxable year during which the taxpayer was\na city resident, and the denominator of which is the sum, for such\ntaxable year, of the net total distributive shares of income, gain, loss\nand deductions of, and guaranteed payments to, all partners in the\nunincorporated business, for whom or which such net total (as separately\ndetermined for each partner) is greater than zero.\n (4) No local law enacted pursuant to the authority of this subsection\nshall be effective unless a certified copy of such local law is mailed\nby registered mail to the state department of taxation and finance at\nits office in Albany at least fifteen days prior to the date it is to\nbecome effective. However, the state department of taxation and finance\nmay waive and reduce such fifteen-day minimum notice requirement to a\nmailing of such certified copy by registered mail within such period if\nit deems such action to be consistent with its duties under this\narticle.\n * NB There are 2 sub§ (e)'s\n (f) Earned income tax credit. (1) Notwithstanding any other provision\nof law to the contrary, any city having a population of one million or\nmore, acting through its local legislative body, is hereby authorized\nand empowered to adopt and amend local laws granting in any such city,\nfor taxable years beginning after two thousand three, a credit against\nthe city personal income tax equal to five percent of the earned income\ncredit allowed under section thirty-two of the internal revenue code for\nthe same taxable year, and, for taxable years beginning after two\nthousand twenty-one, a credit against the city personal income tax equal\nto a percentage, determined pursuant to subparagraphs (A) through (I) of\nthis paragraph, of the earned income credit allowed under section\nthirty-two of the internal revenue code for the same taxable year. For\npurposes of this paragraph, "adjusted gross income" means New York\nadjusted gross income as determined pursuant to article twenty-two of\nthis chapter. The percentage shall be:\n (A) thirty percent, where the taxpayer's adjusted gross income for\nsuch taxable year is less than $5,000;\n (B) thirty percent reduced by the product of two-tenths of a\npercentage point (0.002) and the amount of the taxpayer's adjusted gross\nincome for such taxable year in excess of $4,999, where such taxpayer's\nadjusted gross income for such taxable year is equal to or greater than\n$5,000 and less than $7,500;\n (C) twenty-five percent, where the taxpayer's adjusted gross income\nfor such taxable year is equal to or greater than $7,500 and less than\n$15,000;\n (D) twenty-five percent reduced by the product of two-tenths of a\npercentage point (0.002) and the amount of the taxpayer's adjusted gross\nincome for such taxable year in excess of $14,999, where such taxpayer's\nadjusted gross income for such taxable year is equal to or greater than\n$15,000 and less than $17,500;\n (E) twenty percent, where the taxpayer's adjusted gross income for\nsuch taxable year is equal to or greater than $17,500 and less than\n$20,000;\n (F) twenty percent reduced by the product of two-tenths of a\npercentage point (0.002) and the amount of the taxpayer's adjusted gross\nincome for such taxable year in excess of $19,999, where such taxpayer's\nadjusted gross income for such taxable year is equal to or greater than\n$20,000 and less than $22,500;\n (G) fifteen percent, where the taxpayer's adjusted gross income for\nsuch taxable year is equal to or greater than $22,500 and less than\n$40,000;\n (H) fifteen percent reduced by the product of two-tenths of a\npercentage point (0.002) and the amount of the taxpayer's adjusted gross\nincome for such taxable year in excess of $39,999, where such taxpayer's\nadjusted gross income for such taxable year is equal to or greater than\n$40,000 and less than $42,500; and\n (I) ten percent where the taxpayer's adjusted gross income for such\ntaxable year is equal to or greater than $42,500.\n (2) In the case of a resident taxpayer, the credit provided by local\nlaw adopted pursuant to this subsection shall be allowed against the\ntaxes authorized by this article for the taxable year reduced by the\ncredits permitted by this article. If the credit exceeds the tax as so\nreduced, the taxpayer may receive, and the comptroller, subject to a\ncertificate of the commissioner, shall pay as an overpayment, without\ninterest, the amount of such excess.\n (3) If a taxpayer changes his or her status during the taxable year\nfrom city resident to city nonresident, or from city nonresident to city\nresident, the credit determined under this subsection shall be limited\nto the amount determined by multiplying the amount of such credit by a\nfraction, the numerator of which is such taxpayer's city adjusted gross\nincome, as defined in chapter seventeen of title eleven of the\nadministrative code of the city of New York, for the period of\nresidence, and the denominator of which is such taxpayer's city adjusted\ngross income determined as if he or she were a city resident for the\nentire taxable year. City adjusted gross income shall be adjusted as\nprovided in section 11-1754 of the administrative code of the city of\nNew York. The credit as so limited shall be applied as provided in\nparagraph two of this subsection.\n (4) Subject to the provisions of paragraph three of this subsection,\nin the case of a husband and wife who file a joint return, but who are\nrequired to determine their city personal income taxes separately, the\ncredit authorized pursuant to this subsection may be applied against the\ntax of either or divided between them as they may elect. In the case of\na husband and wife who are not required to file a federal return, the\ncredit under this subsection shall be allowed only if such taxpayers\nfile a joint city personal income tax return.\n (5) A local law enacted pursuant to this subsection shall be\napplicable with respect to any taxable year only if it has been enacted\non or before the date that is forty-five days after the effective date\nof this subsection and for taxable years subsequent to taxable year two\nthousand four, on or before July thirty-first of such taxable year. A\ncertified copy of such local law shall be mailed by registered mail to\nthe state department of taxation and finance at its office in Albany\nwithin fifteen days of its enactment. However, the state department of\ntaxation and finance may allow additional time for such certified copy\nto be mailed if it deems such action to be consistent with its duties\nunder this article.\n (6) If the department determines that the taxpayer is eligible to\nreceive the credit provided under this subsection but has not claimed\nsuch credit on his or her return, the department shall compute and issue\nany refund for the allowable credit amount provided under this\nsubsection. Any refund paid pursuant to this paragraph shall be deemed\nto be a refund of an overpayment of tax as provided in section six\nhundred eighty-six of this chapter, provided, however, that no interest\nshall be paid thereon.\n (g) Credit for city pass-through entity tax. (1) A taxpayer who is a\npartner or member of an electing city partnership and a taxpayer\nshareholder of an electing city resident S corporation subject to tax\nunder article twenty-four-B of this chapter shall be entitled to a\ncredit against the tax imposed pursuant to the authority of this article\nas provided in this subsection. For purposes of this subsection, the\nterms "electing city partnership," "electing city resident S\ncorporation," "city pass-through entity tax," and "direct share of city\npass-through entity tax" shall have the same meanings provided in\narticle twenty-four-B of this chapter.\n (2) The amount of the credit shall be equal to the partner's, member's\nor shareholder's direct share of the city pass-through entity tax.\n (3) If a taxpayer is a partner, member or shareholder in more than one\nelecting city partnership and/or electing city resident S corporation\nthat is subject to tax pursuant to article twenty-four-B of this\nchapter, the amount of the credit of such taxpayer shall be equal to the\nsum of the amounts of such credits calculated pursuant to paragraph two\nof this subsection with regard to each entity in which such taxpayer has\na direct ownership interest.\n (4) If the amount of the credit allowable pursuant to this subsection\nfor any taxable year exceeds the tax due for such year pursuant to this\narticle, the excess amount shall be treated as an overpayment, to be\ncredited or refunded, without interest.\n (5) Limitation on credit. No credit shall be allowed to a taxpayer\nunder this subsection unless the electing city partnership or electing\ncity resident S corporation provided sufficient information to identify\nsuch taxpayer on its city pass-through entity tax return as required\nunder paragraph two of subsection (c) of section eight hundred\nseventy-two of this chapter for an electing city partnership or\nparagraph two of subsection (d) of section eight hundred seventy-two of\nthis chapter for an electing city resident S corporation. The credit\nallowed to a taxpayer under this subsection shall not exceed the direct\nshare of city pass-through entity tax reported by such electing city\npartnership or electing city resident S corporation attributable to such\ntaxpayer on such electing city partnership or electing city resident S\ncorporation's return filed pursuant to section eight hundred seventy-two\nof this chapter.\n (h) Credit for certain taxpayers with incomes below certain\nthresholds. (1) Notwithstanding any other provision of law to the\ncontrary, for taxable years beginning on or after January first, two\nthousand twenty-five, a credit shall be allowed to a taxpayer against\nthe tax imposed pursuant to the authority of this article in an amount\nequal to the tax otherwise due under this article for such taxable year,\nreduced by all the credits permitted by this article for such taxable\nyear, if:\n (A) such taxpayer is entitled to a deduction for such taxable year\nunder subsection (c) of section one hundred fifty-one of the internal\nrevenue code;\n (B) such taxpayer meets the following income thresholds for such\ntaxable year:\n (i) for city taxpayers who filed a resident income tax return as\nmarried taxpayers filing jointly or a qualified surviving spouse:\n If the number of Income no greater than:\n dependents is:\n 1 $36,789\n 2 $46,350\n 3 $54,545\n 4 $61,071\n 5 $68,403\n 6 $75,204\n 7 or more $91,902\n (ii) for city taxpayers who filed a resident income tax return as a\nsingle taxpayer, married taxpayer filing a separate return, or head of\nhousehold:\n If the number of Income no greater than:\n dependents is:\n 1 $31,503\n 2 $36,824\n 3 $46,512\n 4 $53,711\n 5 $59,928\n 6 $65,712\n 7 $74,565\n 8 or more $88,361\n (iii) for any taxable year beginning on or after January first, two\nthousand twenty-six, the commissioner shall multiply the amounts in this\nsubparagraph by one plus the cost-of-living adjustment, which shall be\nthe percentage by which the consumer price index for the preceding\ncalendar year exceeds the consumer price index for calendar year two\nthousand twenty-four;\n (C) such taxpayer is not allowed a credit pursuant to:\n (i) subsection (a) of section eight hundred sixty-three of this\nchapter against the tax imposed pursuant to article twenty-two of this\nchapter; or\n (ii) subsection (a) of section eight hundred seventy of this chapter\nagainst the tax imposed pursuant to the authority of article thirty of\nthis chapter; and\n (D) such taxpayer does not report disqualified income in excess of ten\nthousand dollars in the taxable year, as defined in subsection (i) of\nsection thirty-two of the internal revenue code.\n (2) Where the income of a taxpayer exceeds the amount indicated in\nsubparagraph (B) of paragraph one of this subsection for such taxpayer\nby five thousand dollars or less, and such taxpayer satisfies\nsubparagraph (A) and subparagraphs (C) and (D) of paragraph one of this\nsubsection, a credit shall be allowed in the amount determined by\nmultiplying: (A) the tax otherwise due under this article for such\ntaxable year reduced by all the credits permitted by this article for\nsuch taxable year by (B) a fraction the numerator of which is five\nthousand dollars minus the amount by which such income exceeds the\namount indicated in subparagraph (B) of paragraph one of this subsection\nand the denominator of which is five thousand dollars.\n (3) For purposes of this subsection:\n (A) "Consumer price index" means the most recent consumer price index\nfor all-urban consumers published by the United States department of\nlabor. The consumer price index for any calendar year shall be the\naverage of the consumer price index as of the close of the twelve-month\nperiod ending on August thirty-first of such calendar year.\n (B) "Income" means federal adjusted gross income for the taxable year.\n