§ 606 — Credits against tax

New York § 606

• Jurisdiction: New York
• Law TAX: Tax
• Part 1: General
• Art. 22: Personal Income Tax

Text

§ 606. Credits against tax. (a) Investment tax credit (ITC). (1) A\ntaxpayer shall be allowed a credit, to be computed as hereinafter\nprovided, against the tax imposed by this article. The amount of the\ncredit shall be the per cent provided for hereinbelow of the investment\ncredit base. The investment credit base is the cost or other basis, for\nfederal income tax purposes, of tangible personal property and other\ntangible property, including buildings and structural components of\nbuildings, described in paragraph two of this subsection, less the\namount of the nonqualified nonrecourse financing with respect to such\nproperty to the extent such financing would be excludible from the\ncredit base pursuant to section 46(c)(8) of the internal revenue code\n(treating such property as section thirty-eight property irrespective of\nwhether or not it in fact constitutes section thirty-eight property).\nIf, at the close of a taxable year following the taxable year in which\nsuch property was placed in service, there is a net decrease in the\namount of nonqualified nonrecourse financing with respect to such\nproperty, such net decrease shall be treated as if it were the cost or\nother basis of property described in paragraph two of this subsection\nacquired, constructed, reconstructed or erected during the year of the\ndecrease in the amount of nonqualified nonrecourse financing. The\npercentage to be used to compute the credit allowed pursuant to this\nsubsection shall be that percentage appearing in column two which is\nopposite the appropriate period in column one in which the tangible\npersonal property was acquired, constructed, reconstructed or erected,\nas the case may be:\nColumn 1 Column 2\nAfter December 31, 1968 and\nprior to January 1, 1974 one per cent\nAfter December 31, 1973 and\nprior to January 1, 1978 two per cent\nAfter December 31, 1977 and\nprior to January 1, 1979 three per cent\nAfter December 31, 1978 and\nprior to June 1, 1981 four per cent\nAfter May 31, 1981 and\nprior to July 1, 1982 five per cent\nAfter June 30, 1982 and\nbefore January 1, 1987 six per cent\nAfter December 31, 1986 four per cent, except that in the\n case of research and development\n property the applicable percentage\n shall be seven\nProvided, however, that in the case of an acquisition, construction,\nreconstruction or erection which was commenced in any one period and\ncontinued or completed in any subsequent period the credit shall be the\nsum of the portions of the investment credit base attributable to each\nsuch period, which portion with respect to each such period shall be\nascertained by multiplying such investment credit base by a fraction the\nnumerator of which shall be the expenditures paid or incurred during\nsuch period for such purposes and the denominator of which shall be the\ntotal of all expenditures paid or incurred for such acquisition,\nconstruction, reconstruction or erection, multiplied by the allowable\npercentage for each such period.\n (1-a) For a taxpayer that is an eligible farmer, as defined in\nsubsection (n) of this section, the percentage to be used to compute the\ncredit allowed under this subsection shall be twenty percent for\nproperty described in subparagraph (A) of paragraph two of this\nsubsection that is principally used by the taxpayer in the production of\ngoods by farming, agriculture, horticulture, floriculture or\nviticulture.\n (2) (A) A credit shall be allowed under this subsection with respect\nto tangible personal property and other tangible property, including\nbuildings and structural components of buildings, which are: depreciable\npursuant to section one hundred sixty-seven of the internal revenue\ncode, have a useful life of four years or more, are acquired by purchase\nas defined in section one hundred seventy-nine (d) of the internal\nrevenue code, have a situs in this state and are (i) principally used by\nthe taxpayer in the production of goods by manufacturing, processing,\nassembling, refining, mining, extracting, farming, agriculture,\nhorticulture, floriculture, viticulture or commercial fishing, (ii)\nindustrial waste treatment facilities or air pollution control\nfacilities, used in the taxpayer's trade or business, (iii) research and\ndevelopment property, (iv) principally used in the ordinary course of\nthe taxpayer's trade or business as a broker or dealer in connection\nwith the purchase or sale (which shall include but not be limited to the\nissuance, entering into, assumption, offset, assignment, termination, or\ntransfer) of stocks, bonds or other securities as defined in section\nfour hundred seventy-five (c)(2) of the Internal Revenue Code, or of\ncommodities as defined in section 475(e) of the Internal Revenue Code,\n(v) principally used in the ordinary course of the taxpayer's trade or\nbusiness of providing investment advisory services for a regulated\ninvestment company as defined in section eight hundred fifty-one of the\nInternal Revenue Code, or lending, loan arrangement or loan origination\nservices to customers in connection with the purchase or sale (which\nshall include but not be limited to the issuance, entering into,\nassumption, offset, assignment, termination, or transfer) of securities\nas defined in section four hundred seventy-five (c)(2) of the Internal\nRevenue Code, or (vi) principally used as a qualified film production\nfacility including qualified film production facilities having a situs\nin an empire zone designated as such pursuant to article eighteen-B of\nthe general municipal law, where the taxpayer is providing three or more\nservices to any qualified film production company using the facility,\nincluding such services as a studio lighting grid, lighting and grip\nequipment, multi-line phone service, broadband information technology\naccess, industrial scale electrical capacity, food services, security\nservices, and heating, ventilation and air conditioning. For purposes of\nclauses (iv) and (v) of this subparagraph, property purchased by a\ntaxpayer affiliated with a regulated broker, dealer, or registered\ninvestment adviser is allowed a credit under this subsection if the\nproperty is used by its affiliated regulated broker, dealer or\nregistered investment adviser in accordance with this subsection. For\npurposes of determining if the property is principally used in\nqualifying uses, the uses by the taxpayer described in clauses (iv) and\n(v) of this subparagraph may be aggregated. In addition, the uses by the\ntaxpayer, its affiliated regulated broker, dealer and registered\ninvestment adviser under either or both of those clauses may be\naggregated. Provided, however, a taxpayer shall not be allowed the\ncredit provided by clauses (iv) and (v) of this subparagraph unless (I)\neighty percent or more of the employees performing the administrative\nand support functions resulting from or related to the qualifying uses\nof such equipment are located in this state, or (II) the average number\nof employees that perform the administrative and support functions\nresulting from or related to the qualifying uses of such equipment and\nare located in this state during the taxable year for which the credit\nis claimed is equal to or greater than ninety-five percent of the\naverage number of employees that perform these functions and are located\nin this state during the thirty-six months immediately preceding the\nyear for which the credit is claimed, or (III) the number of employees\nlocated in this state during the taxable year for which the credit is\nclaimed is equal to or greater than ninety percent of the number of\nemployees located in this state on December thirty-first, nineteen\nhundred ninety-eight or, if the taxpayer was not a calendar year\ntaxpayer in nineteen hundred ninety-eight, the last day of its first\ntaxable year ending after December thirty-first, nineteen hundred\nninety-eight. If the taxpayer becomes subject to tax in this state after\nthe taxable year beginning in nineteen hundred ninety-eight, then the\ntaxpayer is not required to satisfy the employment test provided in the\npreceding sentence of this subparagraph for its first taxable year. For\nthe purposes of clause (III) of this subparagraph the employment test\nwill be based on the number of employees located in this state on the\nlast day of the first taxable year the taxpayer is subject to tax in\nthis state. If the uses of the property must be aggregated to determine\nwhether the property is principally used in qualifying uses, then either\neach affiliate using the property must satisfy this employment test or\nthis employment test must be satisfied through the aggregation of the\nemployees of the taxpayer, its affiliated regulated broker, dealer, and\nregistered investment adviser using the property. For purposes of clause\n(i) of this subparagraph, tangible personal property and other tangible\nproperty shall not include property principally used by the taxpayer in\nthe production or distribution of electricity, natural gas after\nextraction from wells, steam, or water delivered through pipes and\nmains.\n (B) For purposes of this paragraph, the following definitions shall\napply:\n (i) Manufacturing shall mean the process of working raw materials into\nwares suitable for use or which gives new shapes, new quality or new\ncombinations to matter which already has gone through some artificial\nprocess by the use of machinery, tools, appliances and other similar\nequipment. Property used in the production of goods shall include\nmachinery, equipment or other tangible property which is principally\nused in the repair and service of other machinery, equipment or other\ntangible property used principally in the production of goods and shall\ninclude all facilities used in the production operation, including\nstorage of material to be used in production and of the products that\nare produced.\n (ii) Research and development property shall mean property which is\nused for purposes of research and development in the experimental or\nlaboratory sense. Such purposes shall not be deemed to include the\nordinary testing or inspection of materials or products for quality\ncontrol, efficiency surveys, management studies, consumer surveys,\nadvertising, promotions, or research in connection with literary,\nhistorical or similar projects.\n (iii) Industrial waste treatment facilities shall mean property\nconstituting facilities for the treatment, neutralization or\nstabilization of industrial waste and other wastes (as the terms\n"industrial waste" and "other wastes" are defined in section 17-0105 of\nthe environmental conservation law) from a point immediately preceding\nthe point of such treatment, neutralization or stabilization to the\npoint of disposal, including the necessary pumping and transmitting\nfacilities, but excluding such facilities installed for the primary\npurpose of salvaging materials which are usable in the manufacturing\nprocess or are marketable.\n (iv) Air pollution control facilities shall mean property constituting\nfacilities which remove, reduce, or render less noxious air contaminants\nemitted from an air contamination source (as the terms "air contaminant"\nand "air contamination source" are defined in section 19-0107 of the\nenvironmental conservation law) from a point immediately preceding the\npoint of such removal, reduction or rendering to the point of discharge\nof air, meeting emission standards as established by the department of\nenvironmental conservation, but excluding such facilities installed for\nthe primary purpose of salvaging materials which are usable in the\nmanufacturing process or are marketable and excluding those facilities\nwhich rely for their efficacy on dilution, dispersion or assimilation of\nair contaminants in the ambient air after emission. Such term shall\nfurther include flue gas desulfurization equipment and attendant sludge\ndisposal facilities, fluidized bed boilers, precombustion coal cleaning\nfacilities or other facilities that conform with this subsection and\nwhich comply with the provisions of the State Acid Deposition Control\nAct set forth in title nine of article nineteen of the environmental\nconservation law.\n (v) For purposes of this paragraph, the terms "qualified film\nproduction facility" and "qualified film production company" shall have\nthe same meaning as in section twenty-four of this chapter.\n (C) However, such credit shall be allowed with respect to industrial\nwaste treatment facilities and air pollution control facilities only on\ncondition that such facilities have been certified by the state\ncommissioner of environmental conservation or his designated\nrepresentative, pursuant to subdivision one of section 17-0707 or\nsubdivision one of section 19-0309 of the environmental conservation\nlaw, as complying with applicable provisions of the environmental\nconservation law, the public health law, the state sanitary code and\ncodes, rules, regulations, permits or orders issued pursuant thereto.\n (3) A taxpayer shall not be allowed a credit under this subsection\nwith respect to any property described in clause (i) of subparagraph (B)\nof paragraph two hereof if such property qualifies for the modification\nallowed under either paragraph three or paragraph four of subsection (g)\nof section six hundred twelve whether or not such amount shall have been\nsubtracted. Provided, however, with respect to property which qualifies\nfor a modification under either clause (A), (B) or (C) of paragraph four\nof subsection (g) because such property was ordered on or before\nDecember thirty-first, nineteen hundred sixty-eight, but with respect to\nwhich no expenditure has been paid or incurred at such date, the\ntaxpayer may elect to subtract the amount allowable under clauses (A),\n(B) or (C) or may take the credit provided by this subsection, but not\nboth.\n (4) A taxpayer shall not be allowed a credit under this subsection\nwith respect to tangible personal property and other tangible property,\nincluding buildings and structural components of buildings, which it\nleases to any other person or corporation except where a taxpayer leases\nproperty to an affiliated regulated broker, dealer, or registered\ninvestment adviser that uses such property in accordance with clause\n(iv) or (v) of subparagraph (A) of paragraph two of this subsection. For\npurposes of the preceding sentence, any contract or agreement to lease\nor rent or for a license to use such property shall be considered a\nlease. Provided, however, in determining whether a taxpayer shall be\nallowed a credit under this subsection with respect to such property,\nany election made with respect to such property pursuant to the\nprovisions of paragraph eight of subsection (f) of section one hundred\nsixty-eight of the internal revenue code, as such paragraph was in\neffect for agreements entered into prior to January first, nineteen\nhundred eighty-four, shall be disregarded. For purposes of this\nparagraph, the use of a qualified film production facility by a\nqualified film production company shall not be considered a lease of\nsuch facility to such company.\n (5) If the amount of credit allowable under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, the excess\nallowed for a taxable year commencing prior to January first, nineteen\nhundred eighty-seven may be carried over to the following year or years\nand may be deducted from the taxpayer's tax for such year or years, but\nin no event shall such credit be carried over to taxable years\ncommencing on or after January first, nineteen hundred ninety-seven, and\nany amount of credit allowed for a taxable year commencing on or after\nJanuary first, nineteen hundred eighty-seven and not deductible in such\nyear may be carried over to the ten taxable years next following such\ntaxable year and may be deducted from the taxpayer's tax for such year\nor years. In lieu of carrying over any such excess, (A) a taxpayer who\nqualifies as an owner of a new business for purposes of paragraph ten of\nthis subsection may, at the taxpayer's option, receive such excess as a\nrefund, and (B) a taxpayer that is an eligible farmer as defined in\nsubsection (n) of this section may, at the taxpayer's option, for\ntaxable years beginning before January first, two thousand twenty-eight\nreceive such excess as a refund. Any refund paid pursuant to this\nparagraph shall be deemed to be a refund of an overpayment of tax as\nprovided in section six hundred eighty-six of this article, provided,\nhowever, that no interest shall be paid thereon.\n (6) At the option of the taxpayer for taxable years commencing prior\nto January first, nineteen hundred eighty-seven, air or water pollution\ncontrol facilities which qualify for elective modifications under\nsubsection (h) of section six hundred twelve, or research and\ndevelopment facilities which qualify for elective modifications under\nparagraphs two and four of subsection (g) of section six hundred twelve\nmay be treated as property principally used by the taxpayer in the\nproduction of goods by manufacturing, processing, assembling, refining,\nmining, extracting, farming, agriculture, horticulture, floriculture,\nviticulture or commercial fishing, provided the property otherwise\nqualifies under paragraph two of this subsection, in which event, a\nmodification shall not be allowed under such subsection (h) and under\nsuch paragraphs two and four of subsection (g).\n (7) (A) With respect to property which is depreciable pursuant to\nsection one hundred sixty-seven of the internal revenue code but is not\nsubject to the provisions of section one hundred sixty-eight of such\ncode and which is disposed of or ceases to be in qualified use prior to\nthe end of the taxable year in which the credit is to be taken, the\namount of the credit shall be that portion of the credit provided for in\nthis subsection which represents the ratio which the months of qualified\nuse bear to the months of useful life. If property on which credit has\nbeen taken is disposed of or ceases to be in qualified use prior to the\nend of its useful life, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. Provided, however, if such property is disposed of or\nceases to be in qualified use after it has been in qualified use for\nmore than twelve consecutive years, it shall not be necessary to add\nback the credit as provided in this subparagraph. The amount of credit\nallowed for actual use shall be determined by multiplying the original\ncredit by the ratio which the months of qualified use bear to the months\nof useful life. For purposes of this subparagraph, useful life of\nproperty shall be the same as the taxpayer uses for depreciation\npurposes when computing his federal income tax liability.\n (B) Except with respect to that property to which subparagraph (D) of\nthis paragraph applies, with respect to three-year property, as defined\nin subsection (e) of section one hundred sixty-eight of the internal\nrevenue code, which is disposed of or ceases to be in qualified use\nprior to the end of the taxable year in which the credit is to be taken,\nthe amount of the credit shall be that portion of the credit provided\nfor in this subsection which represents the ratio which the months of\nqualified use bear to thirty-six. If property on which credit has been\ntaken is disposed of or ceases to be in qualified use prior to the end\nof thirty-six months, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. The amount of credit allowed for actual use shall be\ndetermined by multiplying the original credit by the ratio which the\nmonths of qualified use bear to thirty-six.\n (C) Except with respect to that property to which subparagraph (D) of\nthis paragraph applies, with respect to property subject to the\nprovisions of section one hundred sixty-eight of the internal revenue\ncode, other than three-year property as defined in subsection (e) of\nsuch section one hundred sixty-eight which is disposed of or ceases to\nbe in qualified use prior to the end of the taxable year in which the\ncredit is to be taken, the amount of the credit shall be that portion of\nthe credit provided for in this subsection which represents the ratio\nwhich the months of qualified use bear to sixty. If property on which\ncredit has been taken is disposed of or ceases to be in qualified use\nprior to the end of sixty months, the difference between the credit\ntaken and the credit allowed for actual use must be added back in the\nyear of disposition. The amount of credit allowed for actual use shall\nbe determined by multiplying the original credit by the ratio which the\nmonths of qualified use bear to sixty.\n (D) With respect to any property to which section one hundred\nsixty-eight of the internal revenue code applies, which is a building or\na structural component of a building and which is disposed of or ceases\nto be in qualified use prior to the end of the taxable year in which the\ncredit is to be taken, the amount of the credit shall be that portion of\nthe credit provided for in this subsection which represents the ratio\nwhich the months of qualified use bear to the total number of months\nover which the taxpayer chooses to deduct the property under the\ninternal revenue code. If property on which credit has been taken is\ndisposed of or ceases to be in qualified use prior to the end of the\nperiod over which the taxpayer chooses to deduct the property under the\ninternal revenue code, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. Provided, however, if such property is disposed of or\nceases to be in qualified use after it has been in qualified use for\nmore than twelve consecutive years, it shall not be necessary to add\nback the credit as provided in this subparagraph. The amount of credit\nallowed for actual use shall be determined by multiplying the original\ncredit by the ratio which the months of qualified use bear to the total\nnumber of months over which the taxpayer chooses to deduct the property\nunder the internal revenue code.\n (E) For purposes of this paragraph, property (i) which is described in\nsubparagraph (B), (C) or (D) of this paragraph, and (ii) which is\nsubject to paragraph twenty-six of subsection (c) and paragraph\ntwenty-five of subsection (b) of section six hundred twelve of this\nchapter, shall be treated as property which is depreciable pursuant to\nsection one hundred sixty-seven of the internal revenue code but is not\nsubject to section one hundred sixty-eight of such code.\n (F) For purposes of this paragraph, where a credit is allowed with\nrespect to an air pollution control facility on the basis of a\ncertificate of compliance issued pursuant to the environmental\nconservation law and the certificate is revoked pursuant to subdivision\nthree of section 19-0309 of the environmental conservation law, such\nrevocation shall constitute a disposal or cessation of qualified use,\nunless such facility is described in clause (i) or (iii) of subparagraph\n(A) of paragraph two of this subsection. Also for purposes of this\nsubparagraph, the use of an air pollution control facility or an\nindustrial waste treatment facility for the primary purpose of salvaging\nmaterials which are usable in the manufacturing process or are\nmarketable shall constitute a cessation of qualified use, unless such\nfacility is described in clause (i) or (iii) of subparagraph (A) of\nparagraph two of this subsection.\n (G) For taxable years commencing on or after January first, nineteen\nhundred eighty-seven, the amount required to be added back pursuant to\nthis paragraph shall be augmented by an amount equal to the product of\nsuch amount and the underpayment rate of interest (without regard to\ncompounding), set by the commissioner pursuant to subsection (j) of\nsection six hundred ninety-seven, in effect on the last day of the\ntaxable year.\n (H) If, as of the close of the taxable year, there is a net increase\nwith respect to the taxpayer in the amount of nonqualified nonrecourse\nfinancing (within the meaning of section 46(c) (8) of the internal\nrevenue code) with respect to any property with respect to which the\ncredit under this subsection was limited based on attributable\nnonqualified nonrecourse financing, then an amount equal to the decrease\nin such credit which would have resulted from reducing, by the amount of\nsuch net increase, the cost or other basis taken into account with\nrespect to such property must be added back in such taxable year. The\namount of nonqualified nonrecourse financing shall not be treated as\nincreased by reason of a transfer of (or agreement to transfer) any\nevidence of an indebtedness if such transfer occurs (or such agreement\nis entered into) more than one year after the date such indebtedness was\nincurred.\n (10) For purposes of paragraph five of this subsection, an individual\nwho is either a sole proprietor or a member of a partnership shall\nqualify as an owner of a new business unless:\n (A) the business of which the individual is an owner is substantially\nsimilar in operation and in ownership to a business entity taxable, or\npreviously taxable, under section one hundred eighty-three, one hundred\neighty-four or former section one hundred eighty-five former section of\narticle nine; article nine-A or thirty-three of this chapter; article\ntwenty-three of this chapter or which would have been subject to tax\nunder such article twenty-three (as such article was in effect on\nJanuary first, nineteen hundred eighty), article thirty-two of this\nchapter or which would have been subject to tax under such article\nthirty-two (as such article was in effect on December thirty-first, two\nthousand fourteen) or the income (or losses) of which is (or was)\nincludable under article twenty-two of this chapter whereby the intent\nand purpose of this paragraph and paragraph five of this subsection with\nrespect to refunding of credit to new business would be evaded; or\n (B) the individual has operated such new business entity in this state\nfor more than five taxable years (excluding short years of the\nbusiness).\n (11) Retail enterprise tax credit. A retail enterprise, not eligible\nto claim the credit under paragraph one of this subsection, but eligible\nto claim the credit allowable under section thirty-eight of the internal\nrevenue code pursuant solely to the provisions of subparagraph (E) of\nparagraph one of subsection (a) of section forty-eight of such code,\nshall be allowed a credit as hereinafter computed. The amount of the\ncredit shall be the percentage appearing in paragraph one of this\nsubsection for the periods described therein for the amount of qualified\nrehabilitation expenditures, as defined in subsection (g) of section\nforty-eight of such code, paid or incurred with respect to a qualified\nrehabilitated building, as defined in such subsection (g), located in\nthis state and such expenditures shall be further limited to only the\nportion thereof paid or incurred with respect to that part of a\nqualified rehabilitated building employed by such taxpayer in the retail\nsales activity of such retail enterprise. For the purposes of this\nsubsection, the term "retail enterprise" means a taxpayer which is: (A)\na registered vendor under article twenty-eight of this chapter, (B)\nprimarily engaged in the retail sale, as the term "retail sale" is\ndefined in subparagraph (i) of paragraph four of subdivision (b) of\nsection eleven hundred one of this chapter, of tangible personal\nproperty, and (C) otherwise eligible for the credit allowed pursuant to\nsection thirty-eight of the internal revenue code.\n (12) Rehabilitation credit for historic barns. A taxpayer shall be\nallowed a credit, to be computed as hereinafter provided, against the\ntax imposed by this article. The amount of the credit shall be\ntwenty-five percent of the taxpayer's qualified rehabilitation\nexpenditures paid or incurred within the five years immediately\npreceding the year in which such tax credit shall be applied with\nrespect to any barn located in this state which qualifies as an historic\nbarn pursuant to subdivision five of section four hundred eighty-three-b\nof the real property tax law. For purposes of this paragraph, the term\n"barn" means a building that is or was used as an agricultural facility\nor for purposes related to agriculture. Provided, however, such\nqualified rehabilitation expenditures shall not include any such\nexpenditures which are included, directly or indirectly, in the\ncomputation of a credit claimed by the taxpayer pursuant to paragraph\none of this subsection. Provided further that no rehabilitation credit\nshall be allowed for any rehabilitation of a barn which, immediately\nprior to the commencement of such rehabilitation, was used for\nresidential purposes, or which converts a barn not suitable for\nresidential purposes into one which is so suitable, nor shall a\nrehabilitation credit be allowed for any rehabilitation that materially\nalters the historic appearance of the barn.\n (13)(A)(i) If a taxpayer is required by paragraph seven of this\nsubsection to add back a portion of the credit taken because property\nwas destroyed or ceased to be in qualified use as a direct result of the\nSeptember eleventh, two thousand one terrorist attacks, such taxpayer\nmay elect to defer the amount to be recaptured for all such property to\nthe taxable year next succeeding the taxable year in which the\ndestruction or cessation of qualified use occurred. The taxable year in\nwhich the destruction or cessation of qualified use occurred shall be\nhereinafter referred to as the "recapture event taxable year". If the\ntaxpayer's total employment number in the state on the last day of the\ntaxable year next succeeding the recapture event taxable year is a\nsignificant percentage of the taxpayer's average total employment number\nin the state for the taxpayer's recapture event taxable year and the two\ntaxable years immediately preceding the recapture event taxable year,\nthen the taxpayer shall not be required to recapture any credit with\nrespect to such property. If the taxpayer's total employment number in\nthe state on the last day of the taxable year next succeeding the\nrecapture event taxable year is not a significant percentage of the\ntaxpayer's average total employment number in the state for the\ntaxpayer's recapture event taxable year and the two taxable years\nimmediately preceding the recapture event taxable year, the taxpayer\nshall be required to recapture the portion of the credit taken under\nthis subsection, as required by paragraph seven of this subsection, for\nall of its property destroyed or which ceased to be in qualified use as\na direct result of the September eleventh, two thousand one terrorist\nattacks. The amount required to be recaptured shall be augmented as\nrequired pursuant to subparagraph (G) of paragraph seven of this\nsubsection by using an interest rate equal to two times the rate of\ninterest specified in such subparagraph seven applicable for the taxable\nyear in which the recapture occurs.\n (ii) The taxpayer's total employment number shall include all\nemployees of the taxpayer employed full-time by the taxpayer in the\nstate. The average total employment number for the recapture event\ntaxable year and the two taxable years immediately preceding the\nrecapture event taxable year shall be computed by determining the\ntaxpayer's total employment number on the thirty-first day of March, the\nthirtieth day of June, the thirtieth day of September and the\nthirty-first day of December during the applicable taxable years, adding\ntogether the number of such individuals determined to be so employed on\neach of such dates and dividing the sum so obtained by the number of\nsuch dates occurring within such applicable taxable years. However, in\nthe case of the taxable year which included September eleventh, two\nthousand one, the average total employment number for such taxable year\nshall be determined by using the total employment number on September\nfirst, two thousand one in lieu of September thirtieth, two thousand one\nand, if such taxable year included December thirty-first, two thousand\none, by excluding the total employment number on December thirty-first,\ntwo thousand one.\n (B) In lieu of subparagraph (A) of this paragraph, a taxpayer may\nelect to recapture the portion of the credit taken under this\nsubsection, as required by paragraph seven of this subsection, for all\nof its property destroyed or which ceased to be in qualified use as a\ndirect result of the September eleventh, two thousand one terrorist\nattacks, in the taxable year in which the destruction or cessation of\nqualified use occurred. If the taxpayer makes such election and acquires\nproperty (hereinafter referred to as "replacement property") to replace\nany property destroyed as a direct result of the September eleventh, two\nthousand one terrorist attacks (regardless of when such property was\nplaced in service and whether a credit was claimed on that property\npursuant to this subsection), and such replacement property is similar\nor related in service or use to such destroyed property, the investment\ncredit base of the replacement property shall be determined without\nregard to any basis reduction required pursuant to section 1033 of the\ninternal revenue code.\n (C) The election made by the taxpayer under subparagraph (A) or (B) of\nthis paragraph shall be made in the manner and form prescribed by the\ncommissioner.\n (D) A taxpayer, over fifty percent of whose employees died as a direct\nresult of the September eleventh, two thousand one terrorist attacks,\nmay make the election provided for in subparagraph (A) of this\nparagraph, and shall not be required to recapture any credit with\nrespect to property which was destroyed or which ceased to be in\nqualified use as a direct result of such attacks, whether or not it\nmeets the employment test specified in clause (i) of subparagraph (A) of\nthis paragraph.\n (a-1) Employment incentive credit (EIC). (1)(A) Where a taxpayer is\nallowed a credit under subsection (a) of this section, other than at the\noptional rate applicable to research and development property, the\ntaxpayer shall be allowed a credit for each of the two years next\nsucceeding the taxable year for which the credit under such subsection\n(a) is allowed with respect to such property, whether or not deductible\nin such taxable year or in subsequent taxable years pursuant to\nparagraph five of subsection (a) of this section. Provided, however,\nthat the credit allowable under this subsection for any taxable year\nshall be allowed only if the average number of employees during such\ntaxable year is at least one hundred one percent of the average number\nof employees during the employment base year. The employment base year\nshall be the taxable year immediately preceding the taxable year for\nwhich the credit under such subsection (a) is allowed except that in the\ncase of a new business, the employment base year shall be the taxable\nyear in which the credit under such subsection (a) is allowed.\n (B) The amount of the credit allowed under this subsection shall be as\nset forth in the following table:\nAverage number of employees during Credit allowed under this\nthe taxable year expressed as a subsection expressed as a\npercentage of average number of percentage of the applicable\nemployees in employment base year: investment credit base:\n Less than 102% 1.5%\n at least 102% and less than 103% 2%\n at least 103% 2.5%\n (2) The average number of employees in a taxable year shall be\ncomputed by ascertaining the number of employees within the state\nemployed by the taxpayer on the thirty-first day of March, the thirtieth\nday of June, the thirtieth day of September and the thirty-first day of\nDecember in the taxable year, by adding together the number of employees\nascertained on each of such dates and dividing the sum so obtained by\nthe number of such abovementioned dates occurring within the taxable\nyear. For the purposes of this subsection, the term "employees within\nthe state" shall not include, except with respect to the employment base\nyear, any employee with respect to whom a credit provided for under\nsubsection (k) of this section is claimed for the taxable year, based on\nemployment within a zone equivalent area designated as such pursuant to\narticle eighteen-B of the general municipal law.\n (3) If the amount of credit allowable under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, the excess\nallowed for a taxable year may be carried over to the ten taxable years\nnext following such taxable year and may be deducted from the taxpayer's\ntax for such year or years. In lieu of carrying over any such excess, a\ntaxpayer who qualifies as an owner of a new business for purposes of\nparagraph ten of subsection (a) of this section may, at his or her\noption, receive such excess as a refund. Any refund paid pursuant to\nthis paragraph shall be deemed to be a refund of an overpayment of tax\nas provided in section six hundred eighty-six of this article, provided,\nhowever, that no interest shall be paid thereon.\n (a-2) Hire a vet credit. (1) Allowance of credit. For taxable years\nbeginning on or after January first, two thousand fifteen and before\nJanuary first, two thousand twenty-nine, a taxpayer shall be allowed a\ncredit, to be computed as provided in this subsection, against the tax\nimposed by this article, for hiring and employing, for not less than\ntwelve continuous and uninterrupted months (hereinafter referred to as\nthe twelve-month period) in a full-time or part-time position, a\nqualified veteran within the state. The taxpayer may claim the credit in\nthe year in which the qualified veteran completes the twelve-month\nperiod of employment by the taxpayer. If the taxpayer claims the credit\nallowed under this subsection, the taxpayer may not use the hiring of a\nqualified veteran that is the basis for this credit in the basis of any\nother credit allowed under this article.\n (2) Qualified veteran. A qualified veteran is an individual:\n (A) who served on active duty in the United States army, navy, air\nforce, space force, marine corps, coast guard or the reserves thereof,\nor who served in active military service of the United States as a\nmember of the army national guard, air national guard, New York guard or\nNew York naval militia, or who served in the active uniformed services\nof the United States as a member of the commissioned corps of the\nnational oceanic and atmospheric administration or the commissioned\ncorps of the United States public health service; who (i) was released\nfrom active duty by general or honorable discharge, or (ii) has a\nqualifying condition, as defined in section one of the veterans'\nservices law, and has received a discharge other than bad conduct or\ndishonorable from such service, or (iii) is a discharged LGBT veteran,\nas defined in section one of the veterans' services law, and has\nreceived a discharge other than bad conduct or dishonorable from such\nservice;\n (B) who commences employment by the qualified taxpayer on or after\nJanuary first, two thousand fourteen, and before January first, two\nthousand twenty-eight; and\n (C) who certifies by signed affidavit, under penalty of perjury, that\nhe or she has not been employed for thirty-five or more hours during any\nweek in the one hundred eighty day period immediately prior to his or\nher employment by the taxpayer.\n (3) Employer prohibition. An employer shall not discharge an employee\nand hire a qualifying veteran solely for the purpose of qualifying for\nthis credit.\n (4) Amount of credit. The amount of the credit shall be fifteen\npercent of the total amount of wages paid to the qualified veteran\nduring the veteran's first twelve-month period of employment. Provided,\nhowever, that, if the qualified veteran is a disabled veteran, as\ndefined in paragraph (b) of subdivision one of section eighty-five of\nthe civil service law, the amount of the credit shall be twenty percent\nof the total amount of wages paid to the qualified veteran during the\nveteran's first twelve-month period of employment. The credit allowed\npursuant to this subsection shall not exceed in any taxable year: (i)\nfifteen thousand dollars for any qualified veteran, other than a\ndisabled veteran, employed in a full-time position for one thousand\neight hundred twenty or more hours in one twelve-month period, (ii)\ntwenty thousand dollars for any qualified veteran who is a disabled\nveteran employed in a full-time position for one thousand eight hundred\ntwenty or more hours in one twelve-month period, (iii) seven thousand\nfive hundred dollars for any qualified veteran, other than a disabled\nveteran, employed in a part-time position for at least one thousand\nforty hours but not more than one thousand eight hundred nineteen hours\nin one twelve-month period, and (iv) ten thousand dollars for any\nqualified veteran who is a disabled veteran employed in a part-time\nposition for at least one thousand forty hours but not more than one\nthousand eight hundred nineteen hours in one twelve-month period.\n (5) Carryover. If the amount of credit allowable under this subsection\nfor any taxable year exceeds the taxpayer's tax for such year, any\namount of credit not deductible in such taxable year may be carried over\nto the following three years and may be deducted from the taxpayer's tax\nfor such year or years.\n (b) Household credit. (1) A household credit shall be allowed against\nthe tax determined under subsections (a) through (d) of section six\nhundred one of this article. The credit, computed as described in\nparagraph two of this subsection, shall not exceed the tax determined\nunder subsections (a) through (d) of section six hundred one for the\ntaxable year, reduced by the credits permitted under sections six\nhundred twenty and six hundred twenty-one of this article.\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 allowed\npursuant to this subsection for taxable years beginning on or after\nJanuary first, nineteen hundred eighty-six shall be determined in\naccordance with the following table:\n If household gross income is The credit shall be\nNot over $5,000 $75.00\nOver $5,000 but not over $6,000 60.00\nOver $6,000 but not over $7,000 50.00\nOver $7,000 but not over $20,000 45.00\nOver $20,000 but not over $25,000 40.00\nOver $25,000 but not over $28,000 20.00\n (B) For any husband and wife, head of a household, or surviving\nspouse, the amount of the credit allowed pursuant to this subsection for\ntaxable years beginning on or after January first, nineteen hundred\neighty-six shall be determined in accordance with the following table:\n If household gross income is The credit shall be\nNot over $5,000 $90.00 plus an amount equal to\n $15.00 multiplied by a number which\n is one less than the number of\n exemptions for which the taxpayer\n (or in the case of a husband and\n wife, taxpayers) is entitled to a\n deduction for the taxable year for\n federal income tax purposes under\n subsections (b) and (c) of section\n one hundred fifty-one of the\n internal revenue code\nOver $5,000 but not over $6,000 $75.00 plus such an amount\nOver $6,000 but not over $7,000 $65.00 plus such an amount\nOver $7,000 but not over $20,000 $60.00 plus such an amount\nOver $20,000 but not over $22,000 $60.00 plus an amount equal to\n $10.00 multiplied by a number which\n is one less than the number of\n exemptions for which the taxpayer\n (or in the case of a husband and\n wife, taxpayers) is entitled to a\n deduction for the taxable year for\n federal income tax purposes under\n subsections (b) and (c) of section\n one hundred fifty-one of the\n internal revenue code\nOver $22,000 but not over $25,000 $50.00 plus such an amount\nOver $25,000 but not over $28,000 $40.00 plus an amount equal to $5.00\n multiplied by a number which is one\n less than the number of exemptions\n for which the taxpayer (or in the\n case of a husband and wife,\n taxpayers) is entitled to a\n deduction for the taxable year for\n federal income tax purposes under\n subsections (b) and (c) of section\n one hundred fifty-one of the\n internal revenue code\nOver $28,000 but not over $32,000 $20.00 plus such an amount\n (3) For the 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 New York income tax returns\nare filed. Provided, however, that a husband or wife who is required to\nfile a separate New York income tax return shall be permitted one-half\nthe credit otherwise allowed his or her household, except as limited by\nparagraph one of this subsection.\n (c) Credit for certain household and dependent care services necessary\nfor gainful employment.\n (1) A taxpayer shall be allowed a credit as provided herein equal to\nthe applicable percentage of the credit allowable under section\ntwenty-one of the internal revenue code for the same taxable year\n(without regard to whether the taxpayer in fact claimed the credit under\nsuch section twenty-one for such taxable year). The applicable\npercentage shall be the sum of (i) twenty percent and (ii) a multiplier\nmultiplied by a fraction. For taxable years beginning in nineteen\nhundred ninety-six and nineteen hundred ninety-seven, the numerator of\nsuch fraction shall be the lesser of (i) four thousand dollars or (ii)\nfourteen thousand dollars less the New York adjusted gross income for\nthe taxable year, provided, however, the numerator shall not be less\nthan zero. For the taxable year beginning in nineteen hundred\nninety-eight, the numerator of such fraction shall be the lesser of (i)\nthirteen thousand dollars or (ii) thirty thousand dollars less the New\nYork adjusted gross income for the taxable year, provided, however, the\nnumerator shall not be less than zero. For taxable years beginning in\nnineteen hundred ninety-nine, the numerator of such fraction shall be\nthe lesser of (i) fifteen thousand dollars or (ii) fifty thousand\ndollars less the New York adjusted gross income for the taxable year,\nprovided, however, the numerator shall not be less than zero. For\ntaxable years beginning after nineteen hundred ninety-nine, the\nnumerator of such fraction shall be the lesser of (i) fifteen thousand\ndollars or (ii) sixty-five thousand dollars less the New York adjusted\ngross income for the taxable year, provided, however, the numerator\nshall not be less than zero. The denominator of such fraction shall be\nfour thousand dollars for taxable years beginning in nineteen hundred\nninety-six and nineteen hundred ninety-seven, thirteen thousand dollars\nfor the taxable year beginning in nineteen hundred ninety-eight, and\nfifteen thousand dollars for taxable years beginning after nineteen\nhundred ninety-eight. The multiplier shall be ten percent for taxable\nyears beginning in nineteen hundred ninety-six, forty percent for\ntaxable years beginning in nineteen hundred ninety-seven, and eighty\npercent for taxable years beginning after nineteen hundred ninety-seven.\nProvided, however, for taxable years beginning after nineteen hundred\nninety-nine, for a person whose New York adjusted gross income is less\nthan forty thousand dollars, such applicable percentage shall be equal\nto (i) one hundred percent, plus (ii) ten percent multiplied by a\nfraction whose numerator shall be the lesser of (i) fifteen thousand\ndollars or (ii) forty thousand dollars less the New York adjusted gross\nincome for the taxable year, provided such numerator shall not be less\nthan zero, and whose denominator shall be fifteen thousand dollars.\nProvided, further, that if the reversion event, as defined in this\nparagraph, occurs, the applicable percentage shall, for taxable years\nending on or after the date on which the reversion event occurred, be\ndetermined using the rules specified in this paragraph applicable to\ntaxable years beginning in nineteen hundred ninety-nine. The reversion\nevent shall be deemed to have occurred on the date on which federal\naction, including but not limited to, administrative, statutory or\nregulatory changes, materially reduces or eliminates New York state's\nallocation of the federal temporary assistance for needy families block\ngrant, or materially reduces the ability of the state to spend federal\ntemporary assistance for needy families block grant funds for the credit\nfor certain household and dependent care services necessary for gainful\nemployment or to apply state general fund spending on the credit for\ncertain household and dependent care services necessary for gainful\nemployment toward the temporary assistance for needy families block\ngrant maintenance of effort requirement, and the commissioner of the\noffice of temporary and disability assistance shall certify the date of\nsuch event to the commissioner, the director of the division of the\nbudget, the speaker of the assembly and the temporary president of the\nsenate.\n (1-a) For taxable years beginning after two thousand seventeen, for a\ntaxpayer with New York adjusted gross income of at least fifty thousand\ndollars but less than one hundred fifty thousand dollars, the applicable\npercentage shall be the applicable percentage otherwise computed under\nparagraph one of this subsection multiplied by a factor as follows:\n If New York adjusted gross\n income is: The factor is:\n At least $50,000 and less\n than $55,000 1.1682\n At least $55,000 and less\n than $60,000 1.2733\n At least $60,000 and less\n than $65,000 2.322\n At least $65,000 and less\n than $150,000 3.000\n (1-b) Notwithstanding anything in this subsection to the contrary, a\ntaxpayer shall be allowed a credit as provided in this subsection equal\nto the applicable percentage of the credit allowable under section\ntwenty-one of the internal revenue code for the same taxable year\n(without regard to whether the taxpayer in fact claimed the credit under\nsuch section twenty-one for such taxable year) that would have been\nallowed absent the application of section 21(c) of such code for\ntaxpayers with more than two qualifying individuals, provided however,\nthat the credit shall be calculated as if the dollar limit on amount\ncreditable shall not exceed seven thousand five hundred dollars if there\nare three qualifying individuals, eight thousand five hundred dollars if\nthere are four qualifying individuals, and nine thousand dollars if\nthere are five or more qualifying individuals.\n (2) Residents. In the case of a resident taxpayer, the credit under\nthis subsection shall be allowed against the taxes imposed by this\narticle for the taxable year reduced by the credits permitted by this\narticle. If the credit exceeds the tax as so reduced, the taxpayer may\nreceive, and the comptroller, subject to a certificate of the\ncommissioner, shall pay as an overpayment, without interest, the amount\nof such excess.\n (3) Nonresidents. In the case of a nonresident taxpayer, the credit\nunder this subsection shall be allowed against the tax determined under\nsubsections (a) through (d) of section six hundred one. The amount of\nthe credit shall not exceed the tax determined under such subsections\nfor the taxable year reduced by the credit permitted under subsection\n(b) of this section.\n (4) Part-year residents. In the case of a part-year resident taxpayer,\nthe credit under this subsection shall be allowed against the tax\ndetermined under subsections (a) through (d) of section six hundred one\nreduced by the credit permitted under subsection (b) of this section,\nand any excess credit after such application shall be allowed against\nthe tax imposed by section six hundred three. Any remaining excess,\nafter such application, shall be refunded as provided in paragraph two\nhereof, provided, however, that any overpayment under such paragraph\nshall be limited to the amount of the remaining excess multiplied by a\nfraction, the numerator of which is federal adjusted gross income for\nthe period of residence, computed as if the taxable year for federal\nincome tax purposes were limited to the period of residence, and the\ndenominator of which is federal adjusted gross income for the taxable\nyear.\n (5) In the case of a husband and wife who file a joint federal return,\nbut who are required to determine their New York taxes separately, the\ncredit allowed pursuant to this subsection may only be applied against\nthe tax imposed on the spouse with the lower taxable income, computed\nwithout regard to such credit. In the case of a husband and wife who are\nnot required to file a federal return, the credit under this subsection\nshall be allowed only if such taxpayers file a joint New York income tax\nreturn.\n (c-1) Empire state child credit. (1) For taxable years beginning\nbefore January first, two thousand twenty-five, and taxable years\nbeginning on or after January first, two thousand twenty-eight, a\nresident taxpayer shall be allowed a credit as provided herein equal to\nthe greater of one hundred dollars times the number of qualifying\nchildren of the taxpayer or the applicable percentage of the child tax\ncredit allowed the taxpayer under section twenty-four of the internal\nrevenue code for the same taxable year for each qualifying child.\nProvided, however, in the case of a taxpayer whose federal adjusted\ngross income exceeds the applicable threshold amount set forth by\nsection 24(b)(2) of the Internal Revenue Code, the credit shall only be\nequal to the applicable percentage of the child tax credit allowed the\ntaxpayer under section 24 of the Internal Revenue Code for each\nqualifying child. For the purposes of this subsection, a qualifying\nchild shall be a child who meets the definition of qualified child under\nsection 24(c) of the internal revenue code. The applicable percentage\nshall be thirty-three percent. For purposes of this subsection, any\nreference to section 24 of the Internal Revenue Code shall be a\nreference to such section as it existed immediately prior to the\nenactment of Public Law 115-97.\n (1-a) (A) For taxable years beginning on and after January first, two\nthousand twenty-five, and before January first, two thousand twenty-six,\na resident taxpayer shall be allowed a credit as provided herein, equal\nto the sum of:\n (i) one thousand dollars times the number of qualifying children of\nthe taxpayer aged three or younger, and\n (ii) three hundred thirty dollars times the number of qualifying\nchildren of the taxpayer who have attained age four and not yet attained\nage seventeen.\n (B) For taxable years beginning on and after January first, two\nthousand twenty-six, and before January first, two thousand\ntwenty-eight, a resident taxpayer shall be allowed a credit as provided\nherein, equal to the sum of:\n (i) one thousand dollars times the number of qualifying children of\nthe taxpayer aged three or younger, and\n (ii) five hundred dollars times the number of qualifying children of\nthe taxpayer who have attained age four and not yet attained age\nseventeen.\n (C) The amount of the credit allowable under subparagraphs (A) and (B)\nof this paragraph shall be reduced (but not below zero) by sixteen\ndollars and fifty cents for each one thousand dollars by which the\ntaxpayer's federal adjusted gross income exceeds the threshold amount.\nFor the purposes of this subparagraph, the term "threshold amount" shall\nmean: (i) one hundred ten thousand dollars in the case of married\ntaxpayers filing jointly; (ii) seventy-five thousand dollars in the case\nof a taxpayer filing as single, head of household, or qualified surving\nspouse; and (iii) fifty-five thousand dollars in the case of a married\ntaxpayer filing a separate return.\n (D) For the purposes of this paragraph, a qualifying child shall be an\nindividual who: (i) is a child, sibling, or stepsibling of the taxpayer,\nor a descendent of any such relative; (ii) has the same principal place\nof abode as the taxpayer for more than one-half of the taxable year;\n(iii) has not attained age seventeen; (iv) has not provided over\none-half of such individual's own support for the calendar year in which\nthe taxable year of the taxpayer begins; (v) has not filed a joint\nreturn (other than only for a claim of refund) with the individual's\nspouse under section six hundred fifty-one of this article for the\ntaxable year; and (vi) is a citizen or national of the United States, or\nan individual with an individual taxpayer identification number issued\nby the internal revenue service.\n (E) For the purposes of this paragraph, the term "child" shall mean an\nindividual who is the offspring or stepchild of the taxpayer, or an\neligible foster child of the taxpayer, or a legally adopted individual\nof the taxpayer, or an individual who is lawfully placed with the\ntaxpayer for legal adoption by the taxpayer.\n (F) (i) Except as provided in subparagraph (C) of this paragraph, if\nan individual may be claimed as a qualifying child by two or more\ntaxpayers for a taxable year, such individual shall be treated as the\nqualifying child of the taxpayer who is: (I) a parent of the individual,\nor (II) if subclause (I) does not apply, the taxpayer with the highest\nfederal adjusted gross income for such taxable year.\n (ii) If the parents claiming any qualifying child do not file a joint\nreturn together, such child shall be treated as the qualifying child of:\n(I) the parent with whom the child resided for the longest period of\ntime during the taxable year, or (II) if the child resides with both\nparents for the same amount of time during such taxable year, the parent\nwith the highest federal adjusted gross income who files a return\npursuant to section six hundred fifty-one of this article.\n (iii) If the parents of an individual may claim such individual as a\nqualifying child but no parent so claims the individual, such individual\nmay be claimed as the qualifying child of another taxpayer, but only if\nthe federal adjusted gross income of such taxpayer is higher than the\nhighest federal adjusted gross income of any parent of the individual,\nregardless of a requirement to file a return pursuant to section six\nhundred fifty-one of this article.\n (2) If the amount of the credit allowed under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, the excess\nshall be treated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon.\n (3) In the case of a husband and wife who file a joint federal return,\nbut who are required to determine their New York taxes separately, the\ncredit allowed pursuant to this subsection may be applied against the\ntax imposed of either or divided between them as they may elect.\n (4) (A) For tax year two thousand twenty-one, the commissioner shall\nissue a payment of a supplemental empire state child credit in the\namount of (i) one hundred percent of the empire state child credit\ncalculated and allowed pursuant to this subsection to taxpayers whose\nfederal adjusted gross income was less than ten thousand dollars; (ii)\nseventy-five percent of the empire state child credit calculated and\nallowed pursuant to this subsection to taxpayers whose federal adjusted\ngross income was greater than or equal to ten thousand dollars but less\nthan twenty-five thousand dollars; (iii) fifty percent of the empire\nstate child credit calculated and allowed pursuant to this subsection to\ntaxpayers whose federal adjusted gross income was greater than or equal\nto twenty-five thousand dollars but less than fifty thousand dollars;\nand (iv) twenty-five percent of the empire state child credit calculated\nand allowed pursuant to this subsection to taxpayers whose federal\nadjusted gross income was greater than or equal to fifty thousand\ndollars. Provided, however, that no payment shall be issued if it is\nless than twenty-five dollars.\n (B) The supplemental payment pursuant to this paragraph will be\nallowed to taxpayers who timely filed returns pursuant to section six\nhundred fifty-one of this article, determined with regard to extensions\npursuant to section sex hundred fifty-seven of this article.\n (5) (A) For tax year two thousand twenty-three, the commissioner shall\nissue a payment of a supplemental empire state child credit in the\namount of (i) one hundred percent of the empire state child credit\ncalculated and allowed pursuant to this subsection to taxpayers whose\nfederal adjusted gross income was less than ten thousand dollars; (ii)\nseventy-five percent of the empire state child credit calculated and\nallowed pursuant to this subsection to taxpayers whose federal adjusted\ngross income was greater than or equal to ten thousand dollars but less\nthan twenty-five thousand dollars; (iii) fifty percent of the empire\nstate child credit calculated and allowed pursuant to this subsection to\ntaxpayers whose federal adjusted gross income was greater than or equal\nto twenty-five thousand dollars but less than fifty thousand dollars;\nand (iv) twenty-five percent of the empire state child credit calculated\nand allowed pursuant to this subsection to taxpayers whose federal\nadjusted gross income was greater than or equal to fifty thousand\ndollars. Provided, however, that no payment shall be issued if it is\nless than twenty-five dollars.\n (B) The supplemental payment pursuant to this paragraph shall be\nallowed to taxpayers who timely filed returns pursuant to section six\nhundred fifty-one of this article, determined with regard to extensions\npursuant to section six hundred fifty-seven of this article.\n (d) Earned income credit. (1) General. A taxpayer shall be allowed a\ncredit as provided herein equal to (i) the applicable percentage of the\nearned income credit allowed under section thirty-two of the internal\nrevenue code for the same taxable year, (ii) reduced by the credit\npermitted under subsection (b) of this section.\n The applicable percentage shall be (i) seven and one-half percent for\ntaxable years beginning in nineteen hundred ninety-four, (ii) ten\npercent for taxable years beginning in nineteen hundred ninety-five,\n(iii) twenty percent for taxable years beginning after nineteen hundred\nninety-five and before two thousand, (iv) twenty-two and one-half\npercent for taxable years beginning in two thousand, (v) twenty-five\npercent for taxable years beginning in two thousand one, (vi)\ntwenty-seven and one-half percent for taxable years beginning in two\nthousand two, and (vii) thirty percent for taxable years beginning in\ntwo thousand three and thereafter. Provided, however, that if the\nreversion event, as defined in this paragraph, occurs, the applicable\npercentage shall be twenty percent for taxable years ending on or after\nthe date on which the reversion event occurred. The reversion event\nshall be deemed to have occurred on the date on which federal action,\nincluding but not limited to, administrative, statutory or regulatory\nchanges, materially reduces or eliminates New York state's allocation of\nthe federal temporary assistance for needy families block grant, or\nmaterially reduces the ability of the state to spend federal temporary\nassistance for needy families block grant funds for the earned income\ncredit or to apply state general fund spending on the earned income\ncredit toward the temporary assistance for needy families block grant\nmaintenance of effort requirement, and the commissioner of the office of\ntemporary and disability assistance shall certify the date of such event\nto the commissioner of taxation and finance, the director of the\ndivision of the budget, the speaker of the assembly and the temporary\npresident of the senate.\n (2) Residents. In the case of a resident taxpayer, the credit under\nthis subsection shall be allowed against the taxes imposed by this\narticle for the taxable year reduced by the credits permitted by this\narticle. If the credit exceeds the tax as so reduced, the taxpayer may\nreceive, and the comptroller, subject to a certificate of the\ncommissioner, shall pay as an overpayment, without interest, the amount\nof such excess.\n (3) Nonresidents. In the case of a nonresident taxpayer, the credit\nunder this subsection shall be allowed against the tax determined under\nsubsections (a) through (d) of section six hundred one. The amount of\nthe credit shall not exceed the tax determined under such subsections\nfor the taxable year reduced by the credits permitted under subsections\n(b), (c) and (m) of this section.\n (4) Part-year residents. In the case of a part-year resident taxpayer,\nthe credit under this subsection shall be allowed against the tax\ndetermined under subsections (a) through (d) of section six hundred one\nreduced by the credits permitted under subsections (b), (c) and (m) of\nthis section, and any excess credit after such application shall be\nallowed against the tax imposed by section six hundred three. Any\nremaining excess, after such application, shall be refunded as provided\nin paragraph two hereof, provided, however, that any overpayment under\nsuch paragraph shall be limited to the amount of the remaining excess\nmultiplied by a fraction, the numerator of which is federal adjusted\ngross income for the period of residence, computed as if the taxable\nyear for federal income tax purposes were limited to the period of\nresidence, and the denominator of which is federal adjusted gross income\nfor the taxable year.\n (5) Husband and wife. In the case of a husband and wife who file a\njoint federal return but who are required to determine their New York\ntaxes separately, the credit allowed pursuant to this subsection may be\napplied against the tax of either or divided between them as they may\nelect.\n (6) Notification. (A) The commissioner shall periodically, but not\nless than every three years, make efforts to alert taxpayers that may be\ncurrently eligible to receive the credit provided under this subsection,\nand the credit provided under any local law enacted pursuant to\nsubsection (f) of section thirteen hundred ten of this chapter, as to\ntheir potential eligibility. In making the determination of whether a\ntaxpayer may be eligible for such credit, the commissioner shall use\nsuch data as may be appropriate and available, including, but not\nlimited to, data available from the United States Department of\nTreasury, Internal Revenue Service and New York state income tax returns\nfor preceding tax years.\n (B) 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 the\ntaxpayer's liability and allow the credit, and, if applicable, issue any\nrefund for the allowable credit amount provided under this subsection.\nAny refund paid pursuant to this subparagraph shall be deemed to be a\nrefund of an overpayment of tax as provided in section six hundred\neighty-six of this article, provided, however, that no interest shall be\npaid thereon.\n (7) Reports. The commissioner shall prepare a preliminary written\nreport after July thirty-first and a final written report after December\nthirty-first of each calendar year, which shall contain statistical\ninformation regarding the credits granted on or before such dates under\nthis subsection, and under any local law enacted pursuant to subsection\n(f) of section thirteen hundred ten of this chapter, during such\ncalendar year. Copies of these reports shall be submitted by such\ncommissioner to the governor, the temporary president of the senate, the\nspeaker of the assembly, the chairman of the senate finance committee\nand the chairman of the assembly ways and means committee within sixty\ndays of July thirty-first with respect to the preliminary report, and\nwithin forty-five days of December thirty-first with respect to the\nfinal report, and copies of such reports with respect to credits under\nany local law enacted pursuant to subsection (f) of section thirteen\nhundred ten of this chapter shall be submitted in addition to the mayor\nand the speaker of the council of the city where such a local law is in\neffect. Such reports shall contain, but need not be limited to, the\nnumber of credits and the average amount of such credits allowed; and of\nthose, the number of credits and the average amount of such credits\nallowed to taxpayers in each county; and of those, the number of credits\nand the average amount of such credits allowed to taxpayers whose earned\nincome falls within ranges, determined by the commissioner, of not more\nthan four thousand dollars; and of those, the number of credits and the\naverage amount of such credits allowed to taxpayers who file under the\ndifferent statuses set forth in subsections (a), (b) and (c) of section\nsix hundred one of this part; and of those, the number of credits and\nthe average amount of such credits allowed to taxpayers whose number of\nqualifying children falls within the categories set forth in such\nsection thirty-two of the internal revenue code.\n (8) For tax year two thousand twenty-one, the commissioner shall issue\na payment of a supplemental earned income tax credit to resident\ntaxpayers in the amount of twenty-five percent of the earned income tax\ncredit calculated and allowed pursuant to this subsection. Such payment\nwill be allowed to resident taxpayers who timely filed returns pursuant\nto section six hundred fifty-one of this article, determined with regard\nto extensions pursuant to section six hundred fifty-seven of this\narticle. Provided, however, that no payment shall be issued if it is\nless than twenty-five dollars.\n (d-1) Enhanced earned income tax credit. (1) A taxpayer described in\nparagraph two of this subsection shall be allowed a credit equal to the\ngreater of:\n (A) twenty percent of the amount of the earned income tax credit that\nwould have been allowed to the taxpayer under section 32 of the internal\nrevenue code, absent the application of section 32(b)(2)(B) of such\ncode, if the child or children described in subparagraph (C) of\nparagraph two of this subsection satisfied the requirements for a\nqualifying child set forth in section 32(c)(3) of such code, provided\nhowever, that the credit shall be calculated as if the taxpayer had only\none child; or\n (B) the product of two and one-half and the amount of the earned\nincome tax credit that would have been allowed to the taxpayer under\nsection 32 of the internal revenue code, if the taxpayer satisfied the\neligibility requirements set forth in section 32(c)(1)(A)(ii) of such\ncode.\n (2) To be allowed a credit under this subsection, a taxpayer must\nsatisfy all of the following qualifications.\n (A) The taxpayer must be a resident taxpayer.\n (B) The taxpayer must have attained the age of eighteen.\n (C) The taxpayer must be the parent of a minor child or children with\nwhom the taxpayer does not reside.\n (D) The taxpayer must have an order requiring him or her to make child\nsupport payments, which are payable through a support collection unit\nestablished pursuant to section one hundred eleven-h of the social\nservices law, which order must have been in effect for at least one-half\nof the taxable year.\n (E) The taxpayer must have paid an amount in child support in the\ntaxable year at least equal to the amount of current child support due\nduring the taxable year for every order requiring him or her to make\nchild support payments.\n (3) If the amount of the credit allowed under this subsection shall\nexceed the taxpayer's tax for such year, the excess shall be treated as\nan overpayment of tax to be credited or refunded in accordance with the\nprovisions of section six hundred eighty-six of this article, provided,\nhowever, that no interest shall be paid thereon.\n (4) No claim for credit under this subsection shall be allowed unless\nthe department has verified, from information provided by the office of\ntemporary and disability assistance, that a taxpayer has satisfied the\nqualifications set forth in subparagraphs (C), (D) and (E) of paragraph\ntwo of this subsection. The office of temporary and disability\nassistance shall provide to the department by January fifteenth of each\nyear information applicable for the immediately preceding tax year\nnecessary for the department to make such verification. Such information\nshall be provided in the manner and form agreed upon by the department\nand such office. If a taxpayer's claim for a credit under this\nsubsection is disallowed because the taxpayer has not satisfied the\nqualifications set forth in subparagraphs (C), (D) and (E) of paragraph\ntwo of this subsection, the taxpayer may request a review of those\nqualifications by the support collection unit established pursuant to\nsection one hundred eleven-h of the social services law through which\nthe child support payments were payable. The support collection unit\nshall transmit the result of that review to the office of temporary and\ndisability assistance on a form developed by such office. Such office\nshall then transmit such result to the department in a manner agreed\nupon by the department and such office.\n (5) A taxpayer shall not be allowed multiple credits under this\nsubsection for a taxable year even if such taxpayer has more than one\nchild or has more than one order requiring him or her to make child\nsupport payments.\n (6) If a credit is allowed under this subsection and the taxpayer is\nalso allowed a credit under subsection (d) of this section, the taxpayer\nshall only be allowed to claim one credit.\n (7) In the report prepared pursuant to paragraph seven of subsection\n(d) of this section, the commissioner shall include statistical\ninformation concerning the credit allowed pursuant to this subsection.\nSuch information shall be limited to the number of credits and the\naverage amount of such credits allowed; and of those, the number of\ncredits and the average amounts of such credits allowed to taxpayers in\neach county.\n (8) In a report prepared by the commissioner and submitted to the\noffice of temporary and disability assistance, the department shall\ninclude information concerning the credit allowed pursuant to this\nsubsection indicating whether or not taxpayers identified by the office\nof temporary and disability assistance pursuant to paragraph four of\nthis subsection filed an income tax return, filed for a credit, received\na credit, and the amount of any such credit. Any individual taxpayer\ninformation furnished by the department pursuant to this section shall\nbe deemed confidential and may not be disclosed to any third party and\nthe office of temporary and disability assistance is prohibited from\nusing the individual taxpayer information except for the purpose of\nanalyzing the impact of the credit and its effect on child support\npayments.\n (9) For tax year two thousand twenty-one, the commissioner shall issue\na payment of a supplemental enhanced earned income tax credit in the\namount of twenty-five percent of the enhanced earned income tax credit\ncalculated and allowed pursuant to this subsection. Such payment will be\nallowed to taxpayers who timely filed returns pursuant to section six\nhundred fifty-one of this article, determined with regard to extensions\npursuant to section six hundred fifty-seven of this article. Provided,\nhowever, that no payment shall be issued if it is less than twenty-five\ndollars.\n (e) Real property tax circuit breaker credit. (1) For purposes of this\nsubsection:\n (A) (i) For taxable years beginning before January first, two thousand\ntwenty-five, "qualified taxpayer" means a resident individual of the\nstate who has occupied the same residence for six months or more of the\ntaxable year, and is required or chooses to file a return under this\narticle.\n (ii) For taxable years beginning on or after January first, two\nthousand twenty-five, "qualified taxpayer" means a resident individual\nof the state who has occupied the same residence for six months or more\nof the taxable year, and has qualifying real property taxes as defined\nin clause (ii) of subparagraph (E) of this paragraph, or a real property\ntax equivalent as defined in clause (ii) of subparagraph (F) of this\nparagraph, in excess of the following percentages of federal adjusted\ngross income:\nIf federal adjusted gross income for the Percentage\ntaxable year is:\n$3,000 or less 3 1/2\nOver $3,000 but not over $5,000 4\nOver $5,000 but not over $7,000 4 1/2\nOver $7,000 but not over $9,000 5\nOver $9,000 but not over $11,000 5 1/2\nOver $11,000 but not over $14,000 6\nOver $14,000 but not over $18,000 6 1/2\n (B) "Household" or "members of the household" means a qualified\ntaxpayer and all other persons, not necessarily related, who have the\nsame residence and share its furnishings, facilities and accommodations.\nSuch terms shall not include a tenant, subtenant, roomer or boarder who\nis not related to the qualified taxpayer in any degree specified in\nsubparagraphs (A) through (G) of paragraph two of subsection (d) of\nsection one hundred fifty-two of the internal revenue code. Provided,\nhowever, no person may be a member of more than one household at one\ntime.\n (c) "Household gross income" means the aggregate adjusted gross income\nof all members of the household for the taxable year as reported for\nfederal income tax purposes, or which would be reported as adjusted\ngross income if a federal income tax return were required to be filed,\nwith the modifications in subsection (b) of section six hundred twelve\nbut without the modifications in subsection (c) of such section, plus\nany portion of the gain from the sale or exchange of property otherwise\nexcluded from such amount; earned income from sources without the United\nStates excludable from federal gross income by section nine hundred\neleven of the internal revenue code; support money not included in\nadjusted gross income; nontaxable strike benefits; supplemental security\nincome payments; the gross amount of any pension or annuity benefits to\nthe extent not included in such adjusted gross income (including, but\nnot limited to, railroad retirement benefits and all payments received\nunder the federal social security act and veterans' disability\npensions); nontaxable interest received from the state of New York, its\nagencies, instrumentalities, public corporations, or political\nsubdivisions (including a public corporation created pursuant to\nagreement or compact with another state or Canada); workers'\ncompensation; the gross amount of "loss-of-time" insurance; and the\namount of cash public assistance and relief, other than medical\nassistance for the needy, paid to or for the benefit of the qualified\ntaxpayer or members of his household. Household gross income shall not\ninclude surplus foods or other relief in kind or payments made to\nindividuals because of their status as victims of Nazi persecution as\ndefined in P.L. 103-286. Provided, further, household gross income shall\nonly include all such income received by all members of the household\nwhile members of such household.\n (D) "Residence" means a dwelling in this state, whether owned or\nrented, and so much of the land abutting it, not exceeding one acre, as\nis reasonably necessary for use of the dwelling as a home, and may\nconsist of a part of a multi-dwelling or multi-purpose building\nincluding a cooperative or condominium, and rental units within a single\ndwelling. Residence includes a trailer or mobile home, used exclusively\nfor residential purposes and defined as real property pursuant to\nparagraph (g) of subdivision twelve of section one hundred two of the\nreal property tax law.\n (E) (i) For taxable years beginning before January first, two thousand\ntwenty-five, "qualifying real property taxes" means all real property\ntaxes, special ad valorem levies and special assessments, exclusive of\npenalties and interest, levied on the residence of a qualified taxpayer\nand paid during the taxable year less the credit claimed under\nsubsection (n-1) of this section. In addition, for taxable years\nbeginning after December thirty-first, nineteen hundred eighty-four, a\nqualified taxpayer may elect to include any additional amount that would\nhave been levied in the absence of an exemption from real property\ntaxation pursuant to section four hundred sixty-seven of the real\nproperty tax law. If tenant-stockholders in a cooperative housing\ncorporation have met the requirements of section two hundred sixteen of\nthe internal revenue code by which they are allowed a deduction for real\nestate taxes, the amount of taxes so allowable, or which would be\nallowable if the taxpayer had filed returns on a cash basis, shall be\nqualifying real property taxes. If a residence is owned by two or more\nindividuals as joint tenants or tenants in common, and one or more than\none individual is not a member of the household, qualifying real\nproperty taxes is that part of such taxes on the residence which\nreflects the ownership percentage of the qualified taxpayer and members\nof their household. If a residence is an integral part of a larger unit,\nqualifying real property taxes shall be limited to that amount of such\ntaxes paid as may be reasonably apportioned to such residence. If a\nhousehold owns and occupies two or more residences during different\nperiods in the same taxable year, qualifying real property taxes shall\nbe the sum of the prorated qualifying real property taxes attributable\nto the household during the periods such household occupies each of such\nresidences. If the household owns and occupies a residence for part of\nthe taxable year and rents a residence for part of the same taxable\nyear, it may include both the proration of qualifying real property\ntaxes on the residence owned and the real property tax equivalent with\nrespect to the months the residence is rented. Provided, however, for\npurposes of the credit allowed under this subsection, qualifying real\nproperty taxes may be included by a qualified taxpayer only to the\nextent that such taxpayer or the spouse of such taxpayer occupying such\nresidence for six months or more of the taxable year owns or has owned\nthe residence and paid such taxes.\n (ii) For taxable years beginning on or after January first, two\nthousand twenty-five, "qualifying real property taxes" means all real\nproperty taxes, special ad valorem levies and special assessments,\nexclusive of penalties and interest, levied on the residence of a\nqualified taxpayer and paid during the taxable year less any school tax\nrelief credit allowed under subsection (eee) of this section. A\nqualified taxpayer may elect to include any additional amount that would\nhave been levied in the absence of an exemption from real property\ntaxation pursuant to section four hundred sixty-seven of the real\nproperty tax law. If tenant-stockholders in a cooperative housing\ncorporation have met the requirements of section two hundred sixteen of\nthe internal revenue code by which they are allowed a deduction for real\nestate taxes, the amount of taxes so allowable, or which would be\nallowable if the taxpayer had filed returns on a cash basis, shall be\nqualifying real property taxes. If a residence is owned by two or more\nindividuals as joint tenants or tenants in common, qualifying real\nproperty taxes is that part of such taxes on the residence which\nreflects the ownership percentage of the qualified taxpayer. If a\nresidence is an integral part of a larger unit, qualifying real property\ntaxes shall be limited to that amount of the taxes paid as may be\nreasonably apportioned to such residence. If a qualified taxpayer owns\nand occupies two or more residences during different periods in the same\ntaxable year, qualifying real property taxes shall be the sum of the\nprorated qualifying real property taxes attributable to the qualified\ntaxpayer during the periods the taxpayer occupies each of the\nresidences. If a qualified taxpayer owns and occupies a residence for\npart of the taxable year and rents a residence for part of the same\ntaxable year, the taxpayer may include both the proration of qualifying\nreal property taxes on the residence owned and the real property tax\nequivalent with respect to the months the residence is rented. Provided,\nhowever, for purposes of the credit allowed under this subsection,\nqualifying real property taxes may be included by a qualified taxpayer\nonly to the extent that such taxpayer or the spouse of such taxpayer\noccupying such residence for six months or more of the taxable year owns\nor has owned the residence and paid such taxes.\n (F) (i) For taxable years beginning before January first, two thousand\ntwenty-five, "real property tax equivalent" means twenty-five percent of\nthe adjusted rent actually paid in the taxable year by a household\nsolely for the right of occupancy of its New York residence for the\ntaxable year. If (I) a residence is rented to two or more individuals as\ncotenants, or such individuals share in the payment of a single rent for\nthe right of occupancy of such residence, and (II) each of such\nindividuals is a member of a different household, one or more of which\nindividuals shares such residence, real property tax equivalent is that\nportion of twenty-five percent of the adjusted rent paid in the taxable\nyear which reflects that portion of the rent attributable to the\nqualified taxpayer and the members of their household.\n (ii) For taxable years beginning on or after January first, two\nthousand twenty-five, "real property tax equivalent" means twenty-five\npercent of the adjusted rent actually paid in the taxable year by a\nqualified taxpayer solely for the right of occupancy of their New York\nresidence for the taxable year.\n (G) "Adjusted rent" means rental paid for the right of occupancy of a\nresidence, excluding charges for heat, gas, electricity, furnishings and\nboard. Where charges for heat, gas, electricity, furnishing or board are\nincluded in rental but where such charges and the amount thereof are not\nseparately set forth in a written rental agreement, for purposes of\ndetermining adjusted rent the qualified taxpayer shall reduce rental\npaid as follows:\n (i) For heat, or heat and gas, deduct fifteen percent of rental paid.\n (ii) For heat, gas and electricity, deduct twenty percent of rental\npaid.\n (iii) For heat, gas, electricity and furnishings, deduct twenty-five\npercent of rental paid.\n (iv) For heat, gas, electricity, furnishings and board, deduct fifty\npercent of rental paid.\nIf the tax commission determines that the adjusted rent shown on the\nreturn is excessive, the tax commission may reduce such rent, for\npurposes of the computation of the credit, to an amount substantially\nequivalent to rent for a comparable accommodation.\n (2) (A) For taxable years beginning before January first, two thousand\ntwenty-five, a qualified taxpayer shall be allowed a credit as provided\nin subparagraph (A) of paragraph three of this subsection against the\ntaxes imposed by this article reduced by the credits permitted by this\narticle. If the credit exceeds the tax as so reduced for such year under\nthis article the qualified taxpayer may receive, and the comptroller,\nsubject to a certificate of the commissioner, shall pay as an\noverpayment, without interest, any excess between such tax as so reduced\nand the amount of the credit. If a qualified taxpayer is not required to\nfile a return pursuant to section six hundred fifty-one, a qualified\ntaxpayer may nevertheless receive and the comptroller, subject to a\ncertificate of the commissioner, shall pay as an overpayment the full\namount of the credit, without interest.\n (B) For taxable years beginning on or after January first, two\nthousand twenty-five, a qualified taxpayer shall be allowed a credit\nagainst the tax imposed by this article as provided for in subparagraph\n(B) of paragraph three of this subsection. If the amount of the credit\nallowed under this subsection exceeds the taxpayer's tax for the taxable\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nshall be paid thereon. If a taxpayer is not required to file a return\npursuant to section six hundred fifty-one, a qualified taxpayer may\nnevertheless receive and the comptroller, subject to a certificate of\nthe commissioner, shall pay as an overpayment the full amount of the\ncredit, without interest.\n (3) Determination of credit. (A) For taxable years beginning before\nJanuary first, two thousand twenty-five, (i) for qualified taxpayers who\nhave attained the age of sixty-five years before the beginning of or\nduring the taxable year the amount of the credit allowable under this\nsubsection shall be fifty percent, or in the case of a qualified\ntaxpayer who has elected to include an additional amount pursuant to\nsubparagraph (E) of paragraph one of this subsection, twenty-five\npercent, of the excess of real property taxes or the excess of real\nproperty tax equivalent determined as follows:\n Excess real property taxes are the\n excess of real property tax equiv-\n alent or the excess of qualifying\n real property taxes over the fo-\nIf household gross income for the llowing percentage of household\ntaxable year is: gross income:\n----------------------------------- -----------------------------------\n$3,000 or less 3 1/2\nOver $3,000 but not over $5,000 4\nOver $5,000 but not over $7,000 4 1/2\nOver $7,000 but not over $9,000 5\nOver $9,000 but not over $11,000 5 1/2\nOver $11,000 but not over $14,000 6\nOver $14,000 but not over $18,000 6 1/2\n Notwithstanding the foregoing provisions, the maximum credit\ndetermined under this clause may not exceed the amount determined in\naccordance with the following table:\nIf household gross income for the\ntaxable year is: The maximum credit is:\n----------------------------------- -----------------------------------\n$1,000 or less $375\nOver $1,000 but not over $2,000 $358\nOver $2,000 but not over $3,000 $341\nOver $3,000 but not over $4,000 $324\nOver $4,000 but not over $5,000 $307\nOver $5,000 but not over $6,000 $290\nOver $6,000 but not over $7,000 $273\nOver $7,000 but not over $8,000 $256\nOver $8,000 but not over $9,000 $239\nOver $9,000 but not over $10,000 $222\nOver $10,000 but not over $11,000 $205\nOver $11,000 but not over $12,000 $188\nOver $12,000 but not over $13,000 $171\nOver $13,000 but not over $14,000 $154\nOver $14,000 but not over $15,000 $137\nOver $15,000 but not over $16,000 $120\nOver $16,000 but not over $17,000 $103\nOver $17,000 but not over $18,000 $ 86\n (ii) for all other qualified taxpayers the amount of the credit\nallowable under this subsection shall be fifty percent of excess real\nproperty taxes or the excess of the real property tax equivalent\ndetermined as follows:\n Excess real property taxes are the\n excess of real property tax equiv-\n alent or the excess of qualifying\n real property taxes over the\nIf household gross income for the following percentage of household\ntaxable year is: gross income:\n----------------------------------- -----------------------------------\n$3,000 or less 3 1/2\nOver $3,000 but not over $5,000 4\nOver $5,000 but not over $7,000 4 1/2\nOver $7,000 but not over $9,000 5\nOver $9,000 but not over $11,000 5 1/2\nOver $11,000 but not over $14,000 6\nOver $14,000 but not over $18,000 6 1/2\n Notwithstanding the foregoing provisions, the maximum credit\ndetermined under this clause may not exceed the amount determined in\naccordance with the following table:\nIf household gross income for the\ntaxable year is: The maximum credit is:\n----------------------------------- -----------------------------------\n$1,000 or less $75\nOver $1,000 but not over $2,000 $73\nOver $2,000 but not over $3,000 $71\nOver $3,000 but not over $4,000 $69\nOver $4,000 but not over $5,000 $67\nOver $5,000 but not over $6,000 $65\nOver $6,000 but not over $7,000 $63\nOver $7,000 but not over $8,000 $61\nOver $8,000 but not over $9,000 $59\nOver $9,000 but not over $10,000 $57\nOver $10,000 but not over $11,000 $55\nOver $11,000 but not over $12,000 $53\nOver $12,000 but not over $13,000 $51\nOver $13,000 but not over $14,000 $49\nOver $14,000 but not over $15,000 $47\nOver $15,000 but not over $16,000 $45\nOver $16,000 but not over $17,000 $43\nOver $17,000 but not over $18,000 $41\n (B) For taxable years beginning on or after January first, two\nthousand twenty-five, (i) for qualified taxpayers who have attained the\nage of sixty-five years before the beginning of or during the taxable\nyear or are claiming dependents as defined under section one hundred\nfifty-two of the internal revenue code who have attained the age of\nsixty-five years before the beginning of or during the taxable year, the\ncredit allowable under this subsection shall be:\nIf the taxpayer's federal adjusted gross\nincome for the taxable year is: The credit amount is:\n$3,000 or less $375\nOver $3,000 but not over $5,000 $330\nOver $5,000 but not over $7,000 $300\nOver $7,000 but not over $9,000 $260\nOver $9,000 but not over $11,000 $230\nOver $11,000 but not over $14,000 $200\nOver $14,000 but not over $18,000 $150\n (ii) for all other taxpayers the amount of the credit allowable under\nthis subsection shall be:\nIf the taxpayer's federal adjusted gross\nincome for the taxable year is: The credit amount is:\n$5,000 or less $75\nOver $5,000 but not over $9,000 $70\nOver $9,000 but not over $14,000 $60\nOver $14,000 but not over $18,000 $50\n (4) If a qualified taxpayer occupies a residence for a period of less\nthan twelve months during the taxable year or occupies two or more\nresidences during different periods in such taxable year, the credit\nallowed pursuant to this subsection shall be computed in such manner as\nthe commissioner may prescribe in order to properly reflect the credit\nor portion thereof attributable to such residence or residences and such\nperiod or periods.\n (6) (A) For taxable years beginning before January first, two thousand\ntwenty-five, only one credit per household and per qualified taxpayer\nshall be allowed per taxable year under this subsection. Where two or\nmore members of a household are able to meet the qualifications for a\nqualified taxpayer, the credit shall be equally divided between or among\nsuch individuals unless such individuals file with the commissioner a\nwritten agreement among such individuals setting forth a different\ndivision. Where two or more members of a household are able to meet the\nqualifications of a qualified taxpayer and one of them is sixty-five\nyears of age or more, the credit which may be taken shall be the credit\napplicable to individuals who have attained the age of sixty-five years.\n (B) For taxable years beginning on or after January first, two\nthousand twenty-five, only one credit per qualified taxpayer shall be\nallowed per taxable year under this subsection.\n (C) Provided, however, where a joint income tax return has been filed\npursuant to the provisions of section six hundred fifty-one by a\nqualified taxpayer and their spouse (or where both spouses are qualified\ntaxpayers and have filed such joint return), the credit, or the portion\nof the credit if divided, to which the spouses are entitled shall be\napplied against the tax of both spouses and any overpayment shall be\nmade to both spouses.\n (D) Where any return required to be filed pursuant to the provisions\nof section six hundred fifty-one is combined with any return of tax\nimposed pursuant to the authority of this chapter or any other law if\nsuch tax is administered by the commissioner, the credit or the portion\nof the credit if divided, allowed to the qualified taxpayer may be\napplied by the commissioner toward any liability for the aforementioned\ntaxes.\n (7) No credit shall be granted under this subsection:\n (A) (i) For taxable years beginning before January first, two thousand\ntwenty-five, if household gross income for the taxable year exceeds\neighteen thousand dollars.\n (ii) For taxable years beginning on or after January first, two\nthousand twenty-five, if the taxpayer's federal adjusted gross income\nexceeds eighteen thousand dollars.\n (B) To a property owner unless: (i) the property is used for\nresidential purposes, (ii) not more than twenty percent of the rental\nincome, if any, from the property is from rental for nonresidential\npurposes and (iii) the property is occupied as a residence in whole or\nin part by one or more of the owners of the property.\n (C) To a property owner who owns real property, the full value of\nwhich exceeds eighty-five thousand dollars.\n (D) To a tenant if the adjusted rent for the residence exceeds four\nhundred fifty dollars per month on average.\n (E) To an individual with respect to whom a deduction under subsection\n(c) of section one hundred fifty-one of the internal revenue code is\nallowable to another taxpayer for the taxable year.\n (F) With respect to a residence that is wholly exempted from real\nproperty taxation.\n (G) To an individual who is not a resident individual of the state for\nthe entire taxable year.\n (8) The right to claim a credit or the portion of a credit, where such\ncredit has been divided under this subsection, shall be personal to the\nqualified taxpayer and shall not survive his death, but such right may\nbe exercised on behalf of a claimant by his legal guardian or attorney\nin fact during his lifetime.\n (9) Returns. If a qualified taxpayer is not required to file a return\npursuant to section six hundred fifty-one, a claim for a credit may be\ntaken on a return filed with the commissioner, or a form prescribed by\nthe commissioner, within three years from the time it would have been\nrequired that a return be filed pursuant to such section had the\nqualified taxpayer had a taxable year ending on December thirty-first.\nReturns under this paragraph shall be in such form as shall be\nprescribed by the commissioner, which shall make available such forms\nand instructions for filing such returns.\n (10) Proof of claim. The commissioner may require a qualified taxpayer\nto furnish the following information in support of their claim for\ncredit under this subsection: federal adjusted gross income, household\ngross income, rent paid, name and address of owner or managing agent of\nthe property rented, real property taxes levied or that would have been\nlevied in the absence of an exemption from real property tax pursuant to\nsection four hundred sixty-seven of the real property tax law, the names\nof members of the household and other qualifying taxpayers occupying the\nsame residence and their identifying numbers including social security\nnumbers, household gross income, size and nature of property claimed as\nresidence and all other information which may be required by the\ncommissioner to determine the credit.\n (11) Administration. The provisions of this article, including the\nprovisions of section six hundred fifty-three, six hundred fifty-eight,\nand six hundred fifty-nine and the provisions of part six of this\narticle relating to procedure and administration, including the judicial\nreview of the decisions of the tax commission, except so much of section\nsix hundred eighty-seven which permits a claim for credit or refund to\nbe filed after the period provided for in paragraph nine of this\nsubsection and except sections six hundred fifty-seven, six hundred\neighty-eight and six hundred ninety-six, shall apply to the provisions\nof this subsection in the same manner and with the same force and effect\nas if the language of those provisions had been incorporated in full\ninto this subsection and had expressly referred to the credit allowed or\nreturns filed under this subsection, except to the extent that any such\nprovision is either inconsistent with a provision of this subsection or\nis not relevant to this subsection. As used in such sections and such\npart, the term "taxpayer" shall include a qualified taxpayer under this\nsubsection and, notwithstanding the provisions of subsection (e) of\nsection six hundred ninety-seven, where a qualified taxpayer has\nprotested the denial of a claim for credit under this subsection and the\ntime to file a petition for redetermination of a deficiency or for\nrefund has not expired, he shall, subject to such conditions as may be\nset by the tax commission, receive such information (A) which is\ncontained in any return filed under this article by a member of his\nhousehold for the taxable year for which the credit is claimed, and (B)\nwhich the tax commission finds is relevant and material to the issue of\nwhether such claim was properly denied. The tax commission shall have\nthe authority to promulgate such rules and regulations as may be\nnecessary for the processing, determination and granting of credits and\nrefunds under this subsection.\n (13) Notwithstanding any other provision of this article, the credit\nallowed under this subsection shall be determined after the\ndetermination and application of any other credits permitted under the\nprovisions of this article.\n (14) (A) For calendar years before two thousand twenty-five, the\ncommissioner shall prepare a preliminary written report after July\nthirty-first and a final written report after December thirty-first of\neach calendar year, which shall contain statistical information\nregarding the credits granted on or before such dates under this\nsubsection during such calendar year. Copies of these reports shall be\nsubmitted by the commissioner to the governor, the temporary president\nof the senate, the speaker of the assembly, the chair of the senate\nfinance committee and the chair of the assembly ways and means committee\nwithin sixty days of July thirty-first with respect to the preliminary\nreport, and within forty-five days of December thirty-first with respect\nto the final report. Such reports shall contain, but need not be limited\nto, the number of credits and the average amount of such credits\nallowed; and of those, the number of credits and the average amount of\nsuch credits allowed to qualified taxpayers in each county; and of\nthose, the number of credits and the average amount of such credits\nallowed to qualified taxpayers whose household gross income falls within\neach of the household gross income ranges set forth in paragraph three\nof this subsection; and of those, the number of credits and the average\namount of such credits allowed to qualified taxpayers whose credit\namount falls within credit amount ranges set forth in twenty-five dollar\nincrements.\n (B) For calendar years beginning with two thousand twenty-five, the\ncommissioner of taxation and finance shall prepare an annual report by\nSeptember first of each such year, which shall contain statistical\ninformation regarding the credits claimed under this subsection for the\nsecond preceding taxable year. Copies of such report shall be submitted\nby the commissioner to the governor, the temporary president of the\nsenate, the speaker of the assembly, the chair of the senate finance\ncommittee and the chair of the assembly ways and means committee. Such\nreport shall contain, but need not be limited to, the number of credits\nand the amount of such credits allowed; and of those, the number of\ncredits and the amount of such credits allowed to qualified taxpayers in\neach county; and of those, the number of credits and the amount of such\ncredits allowed to qualified taxpayers whose federal adjusted gross\nincome falls within each of the federal adjusted gross income ranges set\nforth in paragraph three of this subsection.\n (e-1) Volunteer firefighters' and ambulance workers' credit. (1) For\ntaxable years beginning on and after January first, two thousand seven,\na resident taxpayer who serves as an active volunteer firefighter as\ndefined in subdivision one of section two hundred fifteen of the general\nmunicipal law or as a volunteer ambulance worker as defined in\nsubdivision fourteen of section two hundred nineteen-k of the general\nmunicipal law shall be allowed a credit against the tax imposed by this\narticle equal to two hundred dollars. In order to receive this credit a\nvolunteer firefighter or volunteer ambulance worker must have been\nactive for the entire taxable year for which the credit is sought.\n (2) If a taxpayer receives a real property tax exemption relating to\nsuch service under title two of article four of the real property tax\nlaw, such taxpayer shall not be eligible for this credit; provided,\nhowever (A) if the taxpayer receives such real property tax exemption in\nthe two thousand seven taxable year as a result of making application\ntherefor in a prior year or (B) if the taxpayer notifies his or her\nassessor in writing by December thirty-first, two thousand seven of the\ntaxpayer's intent to discontinue such real property tax exemption by not\nre-applying for such real property tax exemption by the next taxable\nstatus date, such taxpayer shall be eligible for this credit for the two\nthousand seven taxable year.\n (3) In the case of a husband and wife who file a joint return and who\nboth individually qualify for the credit under this subsection, the\namount of the credit allowed shall be four hundred dollars.\n (4) If the amount of the credit allowed under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, the excess\nshall be treated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon.\n (e-2) Real property tax relief credit. (1) For purposes of this\nsubsection:\n (A) "Qualified taxpayer" means a resident individual of the state who\nowned and primarily resided for six months or more of the taxable year\nin real property that either received the STAR exemption authorized by\nsection four hundred twenty-five of the real property tax law or that\nqualified the taxpayer to receive the school tax relief credit\nauthorized by subsection (eee) of this section.\n (B) "Qualified gross income" means the adjusted gross income of the\nqualified taxpayer for the taxable year for federal income tax purposes\nand, for taxable year two thousand twenty-one computed without regard to\nthe last sentence of subdivision (a) of section six hundred seven of\nthis article. In computing qualified gross income, the net amount of\nloss reported on Federal Schedule C, D, E, or F shall not exceed three\nthousand dollars per schedule. In addition, the net amount of any other\nseparate category of loss shall not exceed three thousand dollars. The\naggregate amount of all losses included in computing qualified gross\nincome shall not exceed fifteen thousand dollars.\n (C) "Residence" means a dwelling in this state owned by the taxpayer\nand used by the taxpayer as his or her primary residence, and so much of\nthe land abutting it, not exceeding one acre, as is reasonably necessary\nfor use of the dwelling as a home, and may consist of a part of a\nmulti-dwelling or multi-purpose building including a cooperative or\ncondominium. Residence includes a trailer or mobile home, used\nexclusively for residential purposes and defined as real property\npursuant to paragraph (g) of subdivision twelve of section one hundred\ntwo of the real property tax law.\n (D) "Qualifying real property taxes" means all real property taxes,\nspecial ad valorem levies and special assessments, exclusive of\npenalties and interest, levied by a taxing jurisdiction on the residence\nowned and occupied by a qualified taxpayer and paid by the qualified\ntaxpayer during the taxable year, provided that to the extent the total\namount of real property taxes so paid includes school district taxes,\nthe amount of the school tax relief (STAR) credit claimed pursuant to\nsubsection (eee) of this section, if any, shall be deducted from such\namount.\n A qualified taxpayer may elect to include any additional amount that\nwould have been levied by a taxing jurisdiction and paid by the\nqualified taxpayer in the absence of an exemption from real property\ntaxation pursuant to section four hundred sixty-seven of the real\nproperty tax law. If tenant-stockholders in a cooperative housing\ncorporation have met the requirements of section two hundred sixteen of\nthe internal revenue code by which they are allowed a deduction for real\nestate taxes, the amount of taxes so allowable, or which would be\nallowable if the taxpayer had filed returns on a cash basis, shall be\nqualifying real property taxes. If a residence is an integral part of a\nlarger unit, qualifying real property taxes shall be limited to that\namount of such taxes paid as may be reasonably apportioned to such\nresidence. If a taxpayer owned and occupied two residences in the state\nduring different periods in the same taxable year, qualifying real\nproperty taxes shall be the sum of the prorated qualifying real property\ntaxes attributable to the taxpayer during the periods such taxpayer\noccupied each of such residences. A taxpayer who owned and occupied a\nresidence in the state for part of the taxable year and rented a\nresidence in the state for part of the same taxable year, may include\nthe proration of qualifying real property taxes on the residence owned.\nProvided, however, for purposes of the credit allowed under this\nsubsection, qualifying real property taxes may be included by a\nqualified taxpayer only to the extent that such taxpayer or the spouse\nof such taxpayer occupied such residence for one hundred eighty-three\ndays or more of the taxable year, owned the residence and paid such\ntaxes.\n (E) "Excess real property tax" means the excess of qualifying real\nproperty taxes over six percent of qualified gross income.\n (2) For tax years beginning on or after January first, two thousand\ntwenty-one and before January first, two thousand twenty-four, a\nqualified taxpayer shall be allowed a credit as provided in paragraph\nthree of this subsection against the taxes imposed by this article. If\nthe credit exceeds the tax for such year under this article, the excess\nshall be treated as an overpayment, to be credited or refunded, without\ninterest.\n (3) Determination of credit. The credit amount allowed under this\nsubsection shall be the product of the excess real property tax and the\napplicable percentage of the excess real property tax, calculated as\nfollows:\n (A) For qualified taxpayers whose qualified gross income is\nseventy-five thousand dollars or less, the applicable percentage shall\nbe fourteen percent.\n (B) For qualified taxpayers whose qualified gross income is greater\nthan seventy-five thousand dollars but less than or equal to one hundred\nfifty thousand dollars, the applicable percentage shall be the\ndifference between (i) fourteen percent and (ii) five percent multiplied\nby a fraction, the numerator of which is the difference between the\nqualified taxpayer's qualified gross income as defined by this\nsubsection and seventy-five thousand dollars, and the denominator of\nwhich is seventy-five thousand dollars.\n (C) For qualified taxpayers whose qualified gross income is greater\nthan one hundred fifty thousand dollars but less than or equal to two\nhundred fifty thousand dollars, the applicable percentage shall be the\ndifference between (i) nine percent and (ii) six percent multiplied by a\nfraction, the numerator of which is the difference between the qualified\ntaxpayer's qualified gross income and one hundred fifty thousand\ndollars, and the denominator of which is one hundred thousand dollars.\n (4) No credit shall be allowed under this subsection if the amount\ndetermined pursuant to paragraph three is less than two hundred fifty\ndollars, provided further that if the amount determined pursuant to\nparagraph three is in excess of three hundred fifty dollars the taxpayer\nshall be allowed a credit of three hundred fifty dollars.\n (5) The commissioner may prescribe that the credit under this\nsubsection shall be determined in whole or in part by the use of tables\nprescribed by such commissioner. Such tables shall set forth the credit\nto the nearest dollar.\n (6) No credit shall be granted under this subsection:\n (A) To a property owner if qualified gross income for the taxable year\nexceeds two hundred fifty thousand dollars.\n (B) To a property owner unless: (i) the property is used for\nresidential purposes; (ii) not more than twenty percent of the rental\nincome, if any, from the property is from rental for nonresidential\npurposes; and (iii) the property is occupied as a residence in whole or\nin part by one or more of the owners of the property.\n (C) To an individual with respect to whom a deduction under subsection\n(c) of section one hundred fifty-one of the internal revenue code is\nallowable to another taxpayer for the taxable year.\n (D) With respect to a residence that is wholly exempted from real\nproperty taxation.\n (E) To an individual who is not a resident individual of the state for\nthe entire taxable year.\n (7) In the case of a taxpayer who has itemized deductions from federal\nadjusted gross income, and whose federal itemized deductions include an\namount for real estate taxes paid, the New York itemized deduction\notherwise allowable under section six hundred fifteen of this chapter\nshall be reduced by the amount of the credit claimed under this\nsubsection.\n (f) Credit for the special additional mortgage recording tax. (1) For\ntaxable years beginning before nineteen hundred eighty-eight, a taxpayer\nshall be allowed a credit, to be credited against the tax imposed by\nthis article, after allowance of any other credit provided under this\nsection and any credits permitted under sections six hundred twenty, six\nhundred twenty-one and six hundred thirty-five of this article. The\namount of the credit shall be the amount of the special additional\nmortgage recording tax paid by the taxpayer pursuant to the provisions\nof subdivision one-a of section two hundred fifty-three of this chapter\non mortgages recorded on and after January first, nineteen hundred\nseventy-nine. Provided, however, no credit shall be allowed with respect\nto a mortgage of real property principally improved or to be improved by\none or more structures containing in the aggregate not more than six\nresidential dwelling units, each dwelling unit having its own separate\ncooking facilities, where the real property is located in one or more of\nthe counties comprising the metropolitan commuter transportation\ndistrict and where the mortgage is recorded on or after May first,\nnineteen hundred eighty-seven. Provided, however, no credit shall be\nallowed with respect to a mortgage of real property principally improved\nor to be improved by one or more structures containing in the aggregate\nnot more than six residential dwelling units, each dwelling unit having\nits own separate cooking facilities, where the real property is located\nin the county of Erie and where the mortgage is recorded on or after May\nfirst, nineteen hundred eighty-seven.\n (2) In no event shall the amount of the credit herein provided for be\nallowed in excess of the taxpayer's tax for such year. However, if the\namount of credit otherwise allowable under this subsection for any\ntaxable year results in such excess amount, any amount of credit not\ndeductible in such taxable year may be carried over to the following\nyear or years and may be deducted from the taxpayer's tax for such year\nor years.\n (3)(A) Notwithstanding the provisions of paragraphs one and two of\nthis subsection, for taxable years beginning after two thousand three, a\ntaxpayer shall be allowed a credit, to be credited against the tax\nimposed by this article, equal to the amount of the special additional\nmortgage recording tax paid by the taxpayer or, in the case of a\ntaxpayer who is a partner in a partnership, the partner's pro rata share\nof the amount of the special additional mortgage recording tax paid by\nthe partnership, pursuant to the provisions of subdivision one-a of\nsection two hundred fifty-three of this chapter on mortgages recorded on\nand after January first, two thousand four. Provided, however, no credit\nshall be allowed with respect to a mortgage of real property principally\nimproved by one or more structures containing in the aggregate not more\nthan six residential dwelling units, each dwelling unit having its own\nseparate cooking facilities, where the real property is located in one\nor more of the counties comprising the metropolitan commuter\ntransportation district and where the mortgage is recorded on or after\nJanuary first, two thousand four. Provided further, no credit shall be\nallowed with respect to a mortgage of real property principally improved\nby one or more structures containing in the aggregate not more than six\nresidential dwelling units, each dwelling unit having its own separate\ncooking facilities, where the real property is located in Erie county\nand where the mortgage is recorded on or after January first, two\nthousand four.\n (B) If the amount of credit allowable under this paragraph for any\ntaxable year exceeds the taxpayer's tax for such year, any amount of\ncredit exceeding such tax may be carried over to the following year or\nyears and may be deducted from the taxpayer's tax for such year or\nyears. Provided further, such taxpayer may elect to treat such unused\namount of credit as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section six hundred eighty-six of this\narticle except that no interest shall be paid on such overpayment.\n (g) Credit for solar and wind energy systems.\n (1) A taxpayer shall be allowed a credit for taxable years beginning\non or after January first, nineteen hundred eighty-one and ending before\nDecember thirty-first, nineteen hundred eighty-six against the tax\nimposed by this article for the purchase and installation of a solar or\nwind energy system by a taxpayer in his principal residence, if such\nresidence is located within the state. The amount of the credit shall be\nfifty-five percent of the expenditure incurred in purchasing and\ninstalling any such system or combination thereof, but not to exceed the\nmaximum credit of two thousand seven hundred fifty dollars.\n (2) A solar or wind system is a system whose original use begins with\nthe taxpayer; which meets the eligibility criteria, if any, prescribed\nby the department of taxation and finance; and which is:\n (A) an active solar energy system which shall mean an arrangement or\ncombination of components designed to provide heating, cooling, hot\nwater or electricity through the process of collecting solar radiation,\nconverting it to another form of energy, storing the converted energy,\nprotecting against unnecessary dissipation and distributing the\nconverted energy, and which requires external mechanical power for\noperation. This term shall not include pipes, controls, insulation or\nother equipment which are part of the conventional heating, cooling,\ninsulation or electrical system of a building; nor shall it include any\nexpenditure allocable to a swimming pool used as a storage medium;\n (B) a passive solar energy system, which shall mean a system which\nrelies upon the original or retrofitted design and elements of a\nbuilding to enhance the use of natural forces including solar radiation,\nwinds and night-time coolness to provide heating, cooling or hot water\nthrough the process of collecting solar radiation, converting it to\nanother form of energy, storing the converted energy, protecting against\nunnecessary dissipation and distributing the converted energy, and which\nis not primarily dependent upon mechanical power for operation. This\nterm shall not include pipes, controls, insulation or other equipment\nwhich are part of the conventional heating, cooling or insulation system\nof the building; nor shall it include any expenditure allocable to a\nswimming pool used as a storage medium; or\n (C) a wind energy system, which shall mean an arrangement or\ncombination of components, including power conditioning equipment,\ndesigned to provide electricity or mechanical energy through the process\nof converting wind energy into mechanical and/or electric energy, and\nstoring or distributing such energy.\n (3) Where a solar or wind energy system is purchased and installed by\na condominium management association or a cooperative housing\ncorporation, a taxpayer who is a member of the condominium management\nassociation or who is a tenant-stockholder in the cooperative housing\ncorportion may for the purpose of this subsection claim a proportionate\nshare of the total expense as the expenditure for the purposes of the\ncredit attributable to his principal residence.\n (4) Where a solar or wind system is purchased and installed in a\nprincipal residence shared by two or more taxpayers the amount of the\ncredit allowable under this subsection for each such taxpayer shall be\nprorated according to the percentage of the total expenditure for such\nsystem contributed by each taxpayer.\n (5) To the extent that a federal income tax credit shall apply to\nexpenditures eligible for a credit under this subsection, the credit\nprovided in this subsection shall be reduced so that the combined credit\nshall not exceed fifty-five percent of such expenditures or six thousand\nseven hundred fifty dollars, whichever is less.\n (6) If the amount of credit allowable under this subsection shall\nexceed the taxpayer's tax for such year, the excess may be carried over\nto the following year or years and may be deducted from the taxpayer's\ntax for such year or years.\n (7) If all or any part of the credit provided for under this\nsubsection was allowed or carried over from a prior taxable year or\nyears, a taxpayer shall reduce the allowable credit for additional\nqualifying expenditures in a subsequent tax year by the amount of the\ncredit previously allowed or carried over; provided however that a\ncredit previously allowed or carried over from a prior taxable year or\nyears shall not be taken into account in determining the allowable\ncredit for the purchase and installation of a solar or wind energy\nsystem in a subsequent principal residence.\n (8) For the purpose of determining the amount of the actual\nexpenditure incurred in purchasing and installing a solar or wind energy\nsystem, the amount of any federal, state or local grant received by the\ntaxpayer, which was used for the purchase and/or installation of such\nsystem and which was not included in the gross income of the taxpayer,\nshall not be taken into account.\n (9) Notwithstanding any other provision of law, if a credit is allowed\nunder this subsection for a renewable energy system with respect to any\nproperty, the increase in the basis of such property which would but for\nthis subsection result from such expenditure shall be reduced by the\namount of the credit allowed. When the sale or other disposition of such\nproperty results in the nonrecognition of gain under section one\nthousand thirty-four of the internal revenue code, a like reduction\nshall be made to the basis of the new residence, if such residence is\nlocated within the state.\n (g-1) Solar energy system equipment credit. (1) General. An individual\ntaxpayer shall be allowed a credit against the tax imposed by this\narticle equal to twenty-five percent of qualified solar energy system\nequipment expenditures, except as provided in subparagraph (D) of\nparagraph two of this subsection. This credit shall not exceed three\nthousand seven hundred fifty dollars for qualified solar energy\nequipment placed in service before September first, two thousand six,\nand five thousand dollars for qualified solar energy equipment placed in\nservice on or after September first, two thousand six.\n (2) Qualified solar energy system equipment expenditures. (A) The term\n"qualified solar energy system equipment expenditures" means\nexpenditures for:\n (i) the purchase of solar energy system equipment which is installed\nin connection with residential property which is (I) located in this\nstate and (II) which is used by the taxpayer as his or her principal\nresidence at the time the solar energy system equipment is placed in\nservice;\n (ii) the lease of solar energy system equipment under a written\nagreement that spans at least ten years where such equipment owned by a\nperson other than the taxpayer is installed in connection with\nresidential property which is (I) located in this state and (II) which\nis used by the taxpayer as his or her principal residence at the time\nthe solar energy system equipment is placed in service; or\n (iii) the purchase of power under a written agreement that spans at\nleast ten years whereunder the power purchased is generated by solar\nenergy system equipment owned by a person other than the taxpayer which\nis installed in connection with residential property which is (I)\nlocated in this state and (II) which is used by the taxpayer as his or\nher principal residence at the time the solar energy system equipment is\nplaced in service.\n (B) Such qualified expenditures shall include expenditures for\nmaterials, labor costs properly allocable to on-site preparation,\nassembly and original installation, architectural and engineering\nservices, and designs and plans directly related to the construction or\ninstallation of the solar energy system equipment.\n (C) Such qualified expenditures for the purchase of solar energy\nsystem equipment shall not include interest or other finance charges.\n (D) Such qualified expenditures for the lease of solar energy system\nequipment or the purchase of power under an agreement described in\nclauses (ii) or (iii) of subparagraph (A) of this paragraph shall\ninclude an amount equal to all payments made during the taxable year\nunder such agreement. Provided, however, such credits shall only be\nallowed for fourteen years after the first taxable year in which such\ncredit is allowed. Provided further, however, the twenty-five percent\nlimitation in paragraph one of this subsection shall only apply to the\ntotal aggregate amount of all payments to be made pursuant to an\nagreement referenced in clauses (ii) or (iii) of subparagraph (A) of\nthis paragraph, and shall not apply to individual payments made during a\ntaxable year under such agreement except to the extent such limitation\non an aggregate basis has been reached.\n (3) Solar energy system equipment. The term "solar energy system\nequipment" shall mean an arrangement or combination of components\nutilizing solar radiation, which, when installed in a residence,\nproduces energy designed to provide heating, cooling, hot water or\nelectricity for use in such residence. Such arrangement or components\nshall not include equipment connected to solar energy system equipment\nthat is a component of part or parts of a non-solar energy system or\nwhich uses any sort of recreational facility or equipment as a storage\nmedium. Solar energy system equipment that generates electricity for use\nin a residence must conform to applicable requirements set forth in\nsection sixty-six-j of the public service law. Provided, however, where\nsolar energy system equipment is purchased and installed by a\ncondominium management association or a cooperative housing corporation,\nfor purposes of this subsection only, the term "ten kilowatts" in such\nsection sixty-six-j shall be read as "fifty kilowatts."\n (4) Multiple taxpayers. Where solar energy system equipment is\npurchased and installed in a principal residence shared by two or more\ntaxpayers, the amount of the credit allowable under this subsection for\neach such taxpayer shall be prorated according to the percentage of the\ntotal expenditure for such solar energy system equipment contributed by\neach taxpayer.\n (5) Proportionate share. Where solar energy system equipment is\npurchased and installed by a condominium management association or a\ncooperative housing corporation, a taxpayer who is a member of the\ncondominium management association or who is a tenant-stockholder in the\ncooperative housing corporation may for the purpose of this subsection\nclaim a proportionate share of the total expense as the expenditure for\nthe purposes of the credit attributable to his principal residence.\n (6) Grants. For purposes of determining the amount of the expenditure\nincurred in purchasing and installing solar energy system equipment, the\namount of any federal, state or local grant received by the taxpayer,\nwhich was used for the purchase and/or installation of such equipment\nand which was not included in the federal gross income of the taxpayer,\nshall not be included in the amount of such expenditures.\n (7) When credit allowed. The credit provided for herein shall be\nallowed with respect to the taxable year, commencing after nineteen\nhundred ninety-seven, in which the solar energy system equipment is\nplaced in service.\n (8) Carryover of credit. If the amount of the credit, and carryovers\nof such credit, allowable under this subsection for any taxable year\nshall exceed the taxpayer's tax for such year, such excess amount may be\ncarried over to the five taxable years next following the taxable year\nwith respect to which the credit is allowed and may be deducted from the\ntaxpayer's tax for such year or years.\n (g-2) Fuel cell electric generating equipment credit. (1) General.\nFor taxable years beginning before January first, two thousand nine, an\nindividual taxpayer shall be allowed a credit against the tax imposed by\nthis article equal to twenty percent of qualified fuel cell electric\ngenerating equipment expenditures. This credit shall not exceed one\nthousand five hundred dollars per generating unit with respect to any\ntaxable year. The credit provided for herein shall be allowed with\nrespect to the taxable year in which the fuel cell electric generating\nequipment is placed in service.\n (2) Qualified fuel cell electric generating equipment expenditures.\n(A) Qualified fuel cell electric generating equipment expenditures are\nthe costs, incurred on or after July first, two thousand five,\nassociated with the purchase of on-site electricity generation systems\nutilizing proton exchange membrane fuel cells, providing a rated\nbaseload capacity of no less than one kilowatt and no more than one\nhundred kilowatts of electricity, which are located in this state at the\ntime the qualified fuel cell electric generating equipment is placed in\nservice.\n (B) Qualified fuel cell electric generating equipment expenditures\nshall also include costs, incurred on or after July first, two thousand\nfive, for materials, labor for on-site preparation, assembly and\noriginal installation, engineering services, designs and plans directly\nrelated to construction or installation and utility compliance costs.\n (C) Such qualified expenditures shall not include interest or other\nfinance charges.\n (3) Multiple taxpayers. Where fuel cell electric generating equipment\nis purchased and installed in a principal residence shared by two or\nmore taxpayers, the amount of the credit allowable under this subsection\nfor each such taxpayer shall be prorated according to the percentage of\nthe total expenditure for such fuel cell electric generating equipment\ncontributed by each taxpayer.\n (4) Grants. For purposes of determining the amount of the expenditure\nincurred in purchasing and installing fuel cell electric generating\nequipment, the amount of any federal, state or local grant received by\nthe taxpayer, which was used for the purchase and/or installation of\nsuch equipment and which was not included in the federal gross income of\nthe taxpayer, shall not be included in the amount of such expenditures.\n (5) Carryover of credit. If the amount of the credit, and carryovers\nof such credit, allowable under this subsection for any taxable year\nshall exceed the taxpayer's tax for such year, such excess amount may be\ncarried over to the five taxable years next following the taxable year\nwith respect to which the credit is allowed and may be deducted from the\ntaxpayer's tax for such year or years.\n (g-4) Geothermal energy systems credit. (1) General. An individual\ntaxpayer shall be allowed a credit against the tax imposed by this\narticle equal to twenty-five percent of qualified geothermal energy\nsystem expenditures, except as provided in subparagraph (D) of paragraph\ntwo of this subsection, not to exceed five thousand dollars for\nqualified geothermal energy systems placed in service on or before June\nthirtieth, two thousand twenty-five, and ten thousand dollars for\nqualified geothermal energy equipment placed in service on or after July\nfirst, two thousand twenty-five.\n (2) Qualified geothermal energy systems expenditures. (A) The term\n"qualified geothermal energy system expenditures" means expenditures\nfor:\n (i) the purchase of geothermal energy system equipment which is\ninstalled in connection with residential property which is (I) located\nin this state and (II) which is the taxpayer's residence at the time the\ngeothermal energy system is placed in service; or\n (ii) the lease of geothermal energy system equipment under a written\nagreement that spans at least ten years where such equipment owned by a\nperson other than the taxpayer is installed in connection with\nresidential property which is (I) located in this state and (II) which\nis the taxpayer's residence at the time the geothermal energy system\nequipment is placed in service.\n (B) Such qualified expenditures shall include expenditures for\nmaterials, labor costs properly allocable to on-site preparation,\nassembly and original installation, architectural and engineering\nservices, and designs and plans directly related to the construction or\ninstallation of the geothermal energy system equipment.\n (C) Such qualified expenditures for the purchase of geothermal energy\nsystem equipment shall not include interest or other finance charges or\ncosts that have been used to qualify for any other credit.\n (D) Such qualified expenditures for the lease of geothermal energy\nsystem equipment under an agreement described in clause (ii) of\nsubparagraph (A) of this paragraph shall include an amount equal to all\npayments made during the taxable year under such agreement. Provided,\nhowever, such credits shall only be allowed for fourteen years after the\nfirst taxable year in which such credit is allowed. Provided further,\nhowever, the twenty-five percent limitation in paragraph one of this\nsubsection shall only apply to the total aggregate amount of all\npayments to be made pursuant to an agreement referenced in clause (ii)\nof subparagraph (A) of this paragraph, and shall not apply to individual\npayments made during a taxable year under such agreement except to the\nextent such limitation on an aggregate basis has been reached.\n (3) Geothermal energy system equipment. The term "geothermal energy\nsystem equipment" shall mean a system whose original use begins with the\ntaxpayer; which meets the eligibility criteria, if any, prescribed by\nthe department; and which is a ground coupled solar thermal system that\nutilizes the solar thermal energy stored in the ground or in bodies of\nwater to produce heat, and which is commonly known as or referred to as\na ground source heat pump system.\n (4) Multiple taxpayers. Where geothermal energy system equipment is\npurchased and installed in a residence shared by two or more taxpayers,\nthe amount of the credit allowable under this subsection for each such\ntaxpayer shall be prorated according to the percentage of the total\nexpenditure for such geothermal energy system equipment contributed by\neach taxpayer.\n (5) Proportionate share. Where geothermal energy system equipment is\npurchased and installed by a condominium management association or a\ncooperative housing corporation, a taxpayer who is a member of the\ncondominium management association or who is a tenant-stockholder in the\ncooperative housing corporation may for the purpose of this subsection\nclaim a proportionate share of the total expense as the expenditure for\nthe purposes of the credit attributable to the taxpayer's residence.\n (6) Grants. For purposes of determining the amount of the expenditure\nincurred in purchasing and installing geothermal energy system\nequipment, the amount of any federal, state or local grant received by\nthe taxpayer, which was used for the purchase and/or installation of\nsuch equipment and which was not included in the federal gross income of\nthe taxpayer, shall not be included in the amount of such expenditures.\n (7) Limitation. The credit shall only be allowed for geothermal energy\nsystem equipment installed in connection with residential property used\nexclusively for personal purposes by the taxpayer. No credit shall be\nallowed for geothermal energy system equipment installed in connection\nwith residential property that is rented at any time during the taxable\nyear for which the credit is being claimed.\n (8) When credit allowed. The credit provided for herein shall be\nallowed with respect to the taxable year in which the geothermal energy\nsystem equipment is placed in service and shall be allowed only for\ngeothermal energy system equipment placed into service after January\nfirst, two thousand twenty-two. However, the taxpayer shall be allowed a\ncredit for only one such system in any taxable year.\n (9) Application of credit. If the amount of the credit, and carryovers\nof such credit, allowable under this subsection for any taxable year\nshall exceed the taxpayer's tax for such year, such excess amount may be\ncarried over to the five taxable years next following the taxable year\nwith respect to which the credit is allowed and may be deducted from the\ntaxpayer's tax for such year or years. For taxable years beginning on or\nafter January first, two thousand twenty-six, taxpayers who are (A)\nmarried filing jointly or qualifying surviving spouses with a federal\nadjusted gross income of one hundred eighty thousand dollars or less, or\n(B) single, married filing separate, or heads of household with a\nfederal adjusted gross income of ninety thousand dollars or less, may\nelect to receive such excess amount as a refund. Any refund paid\npursuant to this paragraph shall be deemed to be a refund of an\noverpayment of tax as provided in section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon.\n (h) Research and development tax credit. (1) For taxable years\ncommencing prior to January first, nineteen hundred eighty-seven, a\ntaxpayer shall be allowed a credit against the tax imposed by this\narticle after allowance of any other credit provided under this section\nand any credits permitted under sections six hundred twenty, six hundred\ntwenty-one and six hundred thirty-five of this article. The amount of\nthe credit shall be ten percent of the cost or other basis for federal\nincome tax purposes of tangible personal property, including buildings\nand other structural components of buildings, described in paragraph two\nof this subsection acquired, constructed or reconstructed, or erected\nafter June thirtieth, nineteen hundred eighty-two.\n (2) A credit shall be allowed under this section with respect to\ntangible personal property and other tangible property, including\nbuildings and structural components of buildings which are: depreciable\npursuant to section one hundred sixty-seven of the internal revenue\ncode, have a useful life of four years or more, are acquired by purchase\nas defined in section one hundred seventy-nine (d) of the internal\nrevenue code, have a situs in this state and are used or are to be used\nfor purposes of research and development in the experimental or\nlaboratory sense. Such purposes shall not be deemed to include the\nordinary testing or inspection of materials or products for quality\ncontrol, efficiency surveys, management studies, consumer surveys,\nadvertising, promotions, or research in connection with literary,\nhistorical or similar projects.\n (3) A taxpayer shall not be allowed a credit under this subsection\nwith respect to any property described in paragraphs one and two of this\nsubsection, if such property qualifies for the modification allowed\nunder either paragraph three or paragraph four of subsection (g) of\nsection six hundred twelve whether or not such amount shall have been\nsubtracted, or if a credit is taken pursuant to subsection (a) of this\nsection. Provided, however, with respect to property which qualifies\nunder either clause (A), (B) or (C) of paragraph four of subsection (g)\nbecause such property was ordered on or before December thirty-first,\nnineteen hundred sixty-eight, but with respect to which no expenditure\nhas been paid or incurred at such date, the taxpayer may elect to\nsubtract the amount allowable under clause (A), (B) or (C) or may take\nthe credit provided by this subsection, but not both.\n (4) A taxpayer shall not be allowed a credit under this subsection\nwith respect to tangible personal property and other tangible property,\nincluding buildings and structural components of buildings, which it\nleases to any other person or corporation. For purposes of the preceding\nsentence, any contract or agreement to lease or rent or for a license to\nuse such property shall be considered a lease. Provided, however, in\ndetermining whether a taxpayer shall be allowed a credit under this\nsubsection with respect to such property, any election made with respect\nto such property pursuant to the provisions of paragraph eight of\nsubsection (f) of section one hundred sixty-eight of the internal\nrevenue code, as such paragraph was in effect for agreements entered\ninto prior to January first, nineteen hundred eighty-four, shall be\ndisregarded.\n (5) If the amount of credit allowable under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, the excess\nmay be carried over to the following year or years and may be deducted\nfrom the taxpayer's tax for such year or years but in no event shall\nsuch credit be carried over to taxable years commencing on or after\nJanuary first, nineteen hundred ninety-four.\n (6) (A) With respect to property which is depreciable pursuant to\nsection one hundred sixty-seven of the internal revenue code but is not\nsubject to the provisions of section one hundred sixty-eight of such\ncode, and which is disposed of or ceases to be in qualified use prior to\nthe end of the taxable year in which the credit is to be taken, the\namount of the credit shall be that portion of the credit provided for in\nthis subsection which represents the ratio which the months of qualified\nuse bear to the months of useful life. If property on which credit has\nbeen taken is disposed of or ceases to be in qualified use prior to the\nend of its useful life, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. Provided, however, if such property is disposed of or\nceases to be in qualified use after it has been in qualified use for\nmore than twelve consecutive years, it shall not be necessary to add\nback the credit as provided in this subparagraph. The amount of credit\nallowed for actual use shall be determined by multiplying the original\ncredit by the ratio which the months of qualified use bear to the months\nof useful life. For purposes of this subparagraph, useful life of\nproperty shall be the same as the taxpayer uses for depreciation\npurposes when computing his federal income tax liability.\n (B) Except with respect to that property to which subparagraph (D) of\nthis paragraph applies, with respect to three-year property, as defined\nin subsection (e) of section one hundred sixty-eight of the internal\nrevenue code, which is disposed of or ceases to be in qualified use\nprior to the end of the taxable year in which the credit is to be taken,\nthe amount of the credit shall be that portion of the credit provided\nfor in this subsection which represents the ratio which the months of\nqualified use bear to thirty-six. If property on which credit has been\ntaken is disposed of or ceases to be in qualified use prior to the end\nof thirty-six months, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. The amount of credit allowed for actual use shall be\ndetermined by multiplying the original credit by the ratio which the\nmonths of qualified use bear to thirty-six.\n (C) Except with respect to that property to which subparagraph (D) of\nthis paragraph applies, with respect to property subject to the\nprovisions of section one hundred sixty-eight of the internal revenue\ncode other than three-year property as defined in subsection (e) of such\nsection one hundred sixty-eight, which is disposed of or ceases to be in\nqualified use prior to the end of the taxable year in which the credit\nis to be taken, the amount of the credit shall be that portion of the\ncredit provided for in this subsection which represents the ratio which\nthe months of qualified use bear to sixty. If property on which credit\nhas been taken is disposed of or ceases to be in qualified use prior to\nthe end of sixty months, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. The amount of credit allowed for actual use shall be\ndetermined by multiplying the original credit by the ratio which the\nmonths of qualified use bear to sixty.\n (D) With respect to any property to which section one hundred\nsixty-eight of the internal revenue code applies, which is a building or\na structural component of a building and which is disposed of or ceases\nto be in qualified use prior to the end of the taxable year in which the\ncredit is to be taken, the amount of the credit shall be that portion of\nthe credit provided for in this subsection which represents the ratio\nwhich the months of qualified use bear to the total number of months\nover which the taxpayer chooses to deduct the property under the\ninternal revenue code. If property on which credit has been taken is\ndisposed of or ceases to be in qualified use prior to the end of the\nperiod over which the taxpayer chooses to deduct the property under the\ninternal revenue code, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. Provided, however, if such property is disposed of or\nceases to be in qualified use after it has been in qualified use for\nmore than twelve consecutive years, it shall not be necessary to add\nback the credit as provided in this subparagraph. The amount of credit\nallowed for actual use shall be determined by multiplying the original\ncredit by the ratio which the months of qualified use bear to the total\nnumber of months over which the taxpayer chooses to deduct the property\nunder the internal revenue code.\n (i) S corporation credits.\n (1) For purposes of determining the application under this section of\nthe credit provisions enumerated in the following table, a shareholder\nof a New York S corporation:\n (A) shall be treated as the taxpayer with respect to his or her pro\nrata share of the corresponding credit base of such corporation,\ndetermined for the corporation's taxable year ending with or within the\nshareholder's taxable year and\n (B) shall be treated as the owner of a new business with respect to\nsuch share if the corporation qualifies as a new business pursuant to\nparagraph (f) of subdivision one of section two hundred ten-B of this\nchapter.\nWith respect to the following The corporation's credit base under\ncredit under this section: section two hundred ten-B\n of this chapter is:\n(i) Investment tax credit under Investment credit base or qualified\nsubsection (a) rehabilitation expenditures under\n subdivision one of section\n two hundred ten-B\n(ii) Empire zone investment Cost or other basis under\ntax credit under subsection (j) subdivision three\n of section two hundred ten-B\n(v) Agricultural property tax Allowable school district property\ncredit under subsection (n) taxes under subdivision eleven of\n section two hundred ten-B\n(vi) Credit for employment of Qualified first-year wages or\npersons with disabilities qualified second-year wages under\nunder subsection (o) subdivision twelve\n of section two hundred ten-B\n(vii) Employment incentive credit Applicable investment credit base\nunder subsection (a-1) under subdivision two\n of section two hundred ten-B\n(viii) Empire zone employment Applicable investment credit\nincentive credit under subsection under subdivision four\n(j-1) of section\n two hundred ten-B\n(ix) Alternative fuels Amount of credit under subdivision\nand electric vehicle thirty of section\nrecharging property two hundred ten-B\ncredit under subsection (p)\n(x) Qualified emerging technology Applicable credit base under\ncompany employment credit under subdivision seven\nsubsection (q) of section two hundred ten-B\n(xi) Qualified emerging technology Qualified investments under\ncompany capital tax credit under subdivision eight\nsubsection (r) of section two hundred ten-B\n(xii) Credit for purchase of an Cost of an automated external\nautomated external defibrillator defibrillator under subdivision\nunder subsection (s) thirteen of section\n two hundred ten-B\n(xiii) Low-income housing credit Credit amount under subdivision\nunder subsection (x) fifteen of section\n two hundred ten-B\n(xv) QEZE credit for real property Amount of credit under subdivision\ntaxes under subsection (bb) five of\n section two hundred ten-B\n(xvi) QEZE tax reduction credit Amount of benefit period factor,\nunder subsection (cc) employment increase factor and zone\n allocation factor (without regard\n to pro ration) under subdivision\n six of\n section two hundred ten-B\n and amount\n of tax factor as determined under\n subdivision (f) of section sixteen\n(xvii) Green building credit under Amount of green building credit\nsubsection (y) under subdivision sixteen\n of section two\n hundred ten-B\n(xviii) Credit for long-term care Qualified costs under subdivision\ninsurance premiums under subsection fourteen\n(aa) of section two hundred ten-B\n(xix) Brownfield redevelopment Amount of credit under subdivision\ncredit under subsection (dd) seventeen\n of section two hundred\n ten-B\n(xx) Remediated brownfield credit Amount of credit under subdivision\nfor real property taxes for eighteen\nqualified sites under subsection of section two hundred\n(ee) ten-B\n(xxi) Environmental remediation Amount of credit under subdivision\ninsurance credit under subsection nineteen\n(ff) of section two hundred ten-B\n(xxii) Empire state film Amount of credit for qualified\nproduction credit under production costs in production of a\nsubsection (gg) qualified film under subdivision\n twenty of\n section two hundred ten-B\n(xxiv) Security training tax credit Amount of credit under subdivision\nunder subsection (ii) twenty-one\n of section two hundred ten-B\n(xxvi) Empire state commercial Amount of credit for qualified\nproduction credit under subsection production costs in production of\n(jj) a qualified commercial under\n subdivision twenty-three of\n section two hundred ten-B\n(xxvii) Biofuel production tax Amount of credit under subdivision\ncredit under subsection (jj) twenty-four\n of section two hundred ten-B\n(xxviii) Clean heating fuel credit Amount of credit under subdivision\nunder subsection (mm) twenty-five of\n section two hundred ten-B\n(xxix) Credit for rehabilitation Amount of credit under subdivision\nof historic properties under twenty-six of\nsubsection (oo) section two hundred ten-B\n* (xxxi) Excelsior jobs program tax Amount of credit under subdivision\ncredit under subsection (qq) thirty-one of\n section two hundred ten-B\n * NB There are 2 clause (xxxi)'s\n* (xxxi) Empire state film Amount of credit for\npost production credit under qualified post production\nsubsection (qq) costs of a qualified film\n under subdivision thirty-two\n of section two hundred ten-B\n * NB There are 2 clause (xxxi)'s\n* (xxxii) Economic transformation Amount of credit under subdivision\nand facility redevelopment credit thirty-five\n of section two hundred ten-B\n * NB Repealed December 31, 2026\n* (xxxiii) New York youth jobs Amount of credit under\nprogram tax credit subdivision thirty-six\n of section two hundred ten-B\n * NB There are 3 clause (xxxiii)'s\n* (xxxiii) Empire state jobs Amount of credit under\nretention program credit subdivision thirty-seven\n of section two hundred ten-B\n * NB There are 3 clause (xxxiii)'s\n* (xxxiii) Credit for companies who Amount of credit under\nprovide transportation to subdivision thirty-eight\nindividuals with disabilities of section\nunder subsection (tt) two hundred ten-B\n * NB Repealed December 31, 2028\n * NB There are 3 clause (xxxiii)'s\n(xxxiv) Alcoholic beverage Amount of credit\nproduction credit under under subdivision thirty-nine of\nsubsection (uu) section two hundred ten-B\n* (xxxv) Hire a vet credit Amount of credit under subdivision\nunder subsection (a-2) twenty-nine\n of section two hundred ten-B\n * NB There are 2 clause (xxxv)'s\n* (xxxv) Minimum wage reimbursement Amount of credit under subdivision\ncredit under subsection (aaa) forty of section two hundred\n ten-B\n * NB There are 2 clause (xxxv)'s\n(xxxvi) Tax-free NY area tax Amount of credit under\nelimination credit subdivision forty-one\n of section two hundred ten-B\n(xxxvii) Real property tax Amount of credit under\ncredit for manufacturers subdivision\nunder subsection (xx) forty-three of section\n two hundred ten-B\n(xxxviii) Tax-free NY area Amount of credit under\nexcise tax on subdivision\ntelecommunications services forty-four of section\ncredit under subsection (yy) two hundred ten-B\n** (xxxix) Musical and theatrical Amount of credit for\nproduction credit under the sum of the qualified\nsubsection (u) production expenditures and\n the transportation expenditures\n in a qualified musical and\n theatrical production under\n subdivision forty-seven of\n section two hundred ten-B\n ** NB Repealed January 1, 2030\n(xl) Workers with disabilities Amount of\ntax credit under subsection (zz) credit under subdivision\n forty-eight of section two\n hundred ten-B\n(xli) Farm workforce retention Amount of credit under\ncredit under subsection (fff) subdivision fifty-one of\n section two hundred ten-B\n(xlii) Employee training incentive Amount of credit under\nprogram credit under subdivision fifty of\nsubsection (ddd) section two hundred ten-B\n* (xliii) Life sciences research Amount of credit under\nand development tax credit under subdivision fifty-two of\nsubsection (hhh) section two hundred ten-B\n * NB There are 3 clause (xliii)'s\n* (xliii) Empire state apprentice- Amount of credit under\nship tax credit under subsection subdivision forty-nine of\n(vvv) section two hundred ten-B\n * NB There are 3 clause (xliii)'s\n* (xliii) Farm donations to food Amount of credit under\npantries credit under subsection subdivision fifty-two of\n(n-2) section two hundred ten-B\n * NB There are 3 clause (xliii)'s\n* (xliv) Employer-provided child Amount of credit under subdivision\ncare credit (jjj) fifty-three of section two hundred\n ten-B\n * NB There are 2 clause (xliv)'s\n* (xliv) Recovery tax credit under Amount of credit under\nsubsection (jjj) subdivision fifty-three of\n section two hundred ten-B\n * NB There are 2 clause (xliv)'s\n* (xlv) Television writers' Amount of credit for the sum of\nand directors' fees and salaries qualified television writers' and\ncredit under subsection (v) directors' salaries credit\n under subdivision fifty-four of\n section two hundred ten-B\n * NB Effective on the first of January next succeeding the date the\ndepartment of economic development provides notice to the legislative\nbill drafting commission of a determination pursuant to § 6 sb 2 (b) of\nchapter 683 of 2019\n(xlvi) Empire state digital Amount of credit\ngaming media production under subdivision\ncredit under subsection (nnn) fifty-five of section\n two hundred ten-B\n(xlvii) Restaurant return-to-work Amount of credit under\ntax credit subdivision fifty-six of\n section two hundred ten-B\n* (xlviii) New York city musical Amount of credit under\nand theatrical production subdivision fifty-seven of\ntax credit section two hundred ten-B\n * NB Repealed January 1, 2028\n* (xlix) Farm employer overtime Amount of credit under\ncredit under subsection (nnn) subdivision fifty-eight of\n section two hundred ten-B\n * NB There are 4 clause (xlix)'s\n* (xlix) COVID-19 capital costs Amount of credit under\ntax credit under subsection (nnn) subdivision 58 of\n section two hundred ten-B\n * NB There are 4 clause (xlix)'s\n* (xlix) Grade no. 6 heating oil Amount of credit under subdivision\nconversion tax credit under fifty-eight of section two hundred\nsubsection (nnn) ten-B\n * NB There are 4 clause (xlix)'s\n* (xlix) Additional restaurant Amount of credit under\nreturn-to-work credit subdivision fifty-six-a of\n section two hundred ten-B\n * NB There are 4 clause (xlix)'s\n(l) Child care creation and Amount of credit\nexpansion tax credit under under subdivision fifty-nine\nsubsection (ooo) of section two hundred\n ten-B\n* (li) Newspaper and broadcast Amount of credit under subdivision\nmedia jobs tax credit under sixty of section two hundred ten-B\nsubsection (ppp)\n * NB There are 2 clause (li)'s\n* (li) Commercial security tax Amount of credit under\ncredit under subsection (ppp) subdivision sixty of\n section two hundred ten-B\n * NB There are 2 clause (li)'s\n(lii) Empire state film Amount of credit for qualified\nproduction credit under production costs in production of\nsubsection (gg-1) a qualified film under\n subdivision twenty-a of\n section two hundred ten-B\n (2) The reduction of a shareholder's proportionate interest in the\ncorporation shall be treated as a disposition of property for which a\nredetermination of credit is required under subsections (a), (j) and (l)\nof this section.\n (3) Transition provisions relating to S corporation credits allowed\nfor taxable years beginning before nineteen hundred ninety-four. (A)\nCredit carryover. Any excess credit under subparagraph (A) of paragraph\none of this subsection, as it was in effect for taxable years beginning\nbefore nineteen hundred ninety-four, may be carried over to the\nshareholder's following year or years and may be deducted from such\nshareholder's tax for such year or years, except that any excess credit\nattributable to subdivision one of section two hundred ten-B of this\nchapter shall in no event be carried over beyond the ten taxable years\nnext following the taxable year of origin.\n (B) Credit recapture. Any redetermination of credit required by this\nsubsection as it was in effect for taxable years beginning before\nnineteen hundred ninety-four, upon disposition or cessation of qualified\nuse of property pursuant to paragraph (e) of subdivision one, or\nparagraph (f) of subdivision three of section two hundred ten-B of this\nchapter shall be attributed in pro rata shares to the shareholders who\nwere allowed credit under this subsection with respect to such property,\nand the reduction of a shareholder's proportionate stock interest shall\nbe treated as a disposition of property for which a redetermination of\ncredit under such paragraphs is required with respect to such\nshareholder.\n (4) Transition provisions relating to credit for special additional\nmortgage recording tax. In the case of the special additional mortgage\nrecording tax credit, in addition to any carryover thereof under\nparagraph three of this subsection (relating to carryover from taxable\nyears of the shareholder beginning before nineteen hundred ninety-four),\nthere also shall be allowed a credit for such tax which is due and paid\nby an S corporation in a taxable year of the corporation beginning in\nnineteen hundred ninety-three, which year ends within the shareholder's\ntaxable year beginning in nineteen hundred ninety-four. Any such credit,\nand carryover thereof, shall be allowed as provided under this\nsubsection as it was in effect for taxable years beginning before\nnineteen hundred ninety-four.\n (j) Empire zone investment tax credit (EZ-ITC). (1) A taxpayer shall\nbe allowed a credit, to be computed as hereinafter provided, against the\ntax imposed by this article where the taxpayer has been certified\npursuant to article eighteen-B of the general municipal law. The amount\nof such credit shall be eight percent of the cost or other basis for\nfederal income tax purposes of tangible personal property and other\ntangible property, including buildings and structural components of\nbuildings, described in paragraph two of this subsection, which is\nlocated within an empire zone designated as such pursuant to article\neighteen-B of such law, but only if the acquisition, construction,\nreconstruction or erection of such property occurred or was commenced on\nor after the date of such designation and prior to the expiration\nthereof. Provided, however, that in the case of an acquisition,\nconstruction, reconstruction or erection which was commenced during such\nperiod and continued or completed subsequently, the credit shall be\neight percent of the portion of the cost or other basis for federal\nincome tax purposes attributable to such period, which portion shall be\nascertained by multiplying such cost or basis by a fraction the\nnumerator of which shall be the expenditures paid or incurred during\nsuch period for such purposes and the denominator of which shall be the\ntotal of all expenditures paid or incurred for such acquisition,\nconstruction, reconstruction or erection.\n (2) A credit shall be allowed under this subsection with respect to\ntangible personal property and other tangible property, including\nbuildings and structural components of buildings which: (A) are\ndepreciable pursuant to section one hundred sixty-seven of the internal\nrevenue code, (B) have a useful life of four years or more, (C) are\nacquired by purchase as defined in section one hundred seventy-nine (d)\nof the internal revenue code, (D) have a situs in an empire zone\ndesignated as such pursuant to article eighteen-B of the general\nmunicipal law, and (E) are (i) principally used by the taxpayer in the\nproduction of goods by manufacturing, processing, assembling, refining,\nmining, extracting, farming, agriculture, horticulture, floriculture,\nviticulture or commercial fishing, (ii) industrial waste treatment\nfacilities or air pollution control facilities used in the taxpayer's\ntrade or business, (iii) research and development property, (iv)\nprincipally used in the ordinary course of the taxpayer's trade or\nbusiness as a broker or dealer in connection with the purchase or sale\n(which shall include but not be limited to the issuance, entering into,\nassumption, offset, assignment, termination, or transfer) of stocks,\nbonds or other securities as defined in section four hundred\nseventy-five (c)(2) of the Internal Revenue Code, or of commodities as\ndefined in section four hundred seventy-five (e) of the Internal Revenue\nCode, or (v) principally used in the ordinary course of the taxpayer's\ntrade or business of providing investment advisory services for a\nregulated investment company as defined in section eight hundred\nfifty-one of the Internal Revenue Code, or lending, loan arrangement or\nloan origination services to customers in connection with the purchase\nor sale (which shall include but not be limited to the issuance,\nentering into, assumption, offset, assignment, termination, or transfer)\nof securities as defined in section four hundred seventy-five (c)(2) of\nthe Internal Revenue Code. For purposes of clauses (iv) and (v) of this\nsubparagraph, property purchased by a taxpayer affiliated with a\nregulated broker, dealer or registered investment adviser is allowed a\ncredit under this subsection if the property is used by its affiliated\nregulated broker, dealer or registered investment adviser in accordance\nwith this subsection. For purposes of determining if the property is\nprincipally used in qualifying uses, the uses by the taxpayer described\nin clauses (iv) and (v) of this subparagraph may be aggregated. In\naddition, the uses by the taxpayer, its affiliated regulated broker,\ndealer, and registered investment adviser under either or both of those\nclauses may be aggregated. Provided, however, a taxpayer shall not be\nallowed the credit provided by clauses (iv) and (v) of this subparagraph\nunless (I) eighty percent or more of the employees performing the\nadministrative and support functions resulting from or related to the\nqualifying uses of such equipment are located in this state, or (II) the\naverage number of employees that perform the administrative and support\nfunctions resulting from or related to the qualifying uses of such\nequipment and are located in this state during the taxable year for\nwhich the credit is claimed is equal to or greater than ninety-five\npercent of the average number of employees that perform these functions\nand are located in this state during the thirty-six months immediately\npreceding the year for which the credit is claimed, or (III) the number\nof employees located in this state during the taxable year for which the\ncredit is claimed is equal to or greater than ninety percent of the\nnumber of employees located in this state on December thirty-first,\nnineteen hundred ninety-eight or, if the taxpayer was not a calendar\nyear taxpayer in nineteen hundred ninety-eight, the last day of its\nfirst taxable year ending after December thirty-first, nineteen hundred\nninety-eight. If the taxpayer becomes subject to tax in this state after\nthe taxable year beginning in nineteen hundred ninety-eight, then the\ntaxpayer is not required to satisfy the employment test provided in the\npreceding sentence of this subparagraph for its first taxable year. For\npurposes of clause (III) of this subparagraph, the employment test will\nbe based on the number of employees located in this state on the last\nday of the first taxable year the taxpayer is subject to tax in this\nstate. If the uses of the property must be aggregated to determine\nwhether the property is principally used in qualifying uses, then either\neach affiliate using the property must satisfy this employment test or\nthis employment test must be satisfied through the aggregation of the\nemployees of the taxpayer, its affiliated regulated broker, dealer, and\nregistered investment adviser using the property. For purposes of this\nsubsection, the term "goods" shall not include electricity. For purposes\nof this paragraph, manufacturing shall mean the process of working raw\nmaterials into wares suitable for use or which gives new shapes, new\nquality or new combination to matter which already has gone through some\nartificial process by the use of machinery, tools, appliances and other\nsimilar equipment. Property used in the production of goods shall\ninclude machinery, equipment or other tangible property which is\nprincipally used in the repair and service of other machinery, equipment\nor other tangible property used principally in the production of goods\nand shall include all facilities used in the production operation,\nincluding storage of material to be used in production and of the\nproducts that are produced. For purposes of this paragraph, the terms\n"research and development property", "industrial waste treatment\nfacilities", and "air pollution control facilities" shall have the\nmeanings ascribed thereto by clauses (ii), (iii) and (iv), respectively,\nof subparagraph (B) of paragraph two of subsection (a) of this section,\nand the provisions of subparagraph (C) of such paragraph two shall\napply.\n (3) A taxpayer shall not be allowed a credit under this subsection\nwith respect to any tangible personal property and other tangible\nproperty, including buildings and structural components of buildings,\nwhich it leases to any other person or corporation except where a\ntaxpayer leases property to an affiliated regulated broker, dealer, or\nregistered investment adviser that uses such property in accordance with\nclause (iv) or (v) of subparagraph (E) of paragraph two of this\nsubsection. For purposes of the preceding sentence, any contract or\nagreement to lease or rent or for a license to use such property shall\nbe considered a lease. Provided, however, in determining whether a\ntaxpayer shall be allowed a credit under this subsection with respect to\nsuch property, any election made with respect to such property pursuant\nto the provisions of paragraph eight of subsection (f) of section one\nhundred sixty-eight of the internal revenue code, as such paragraph was\nin effect for agreements entered into prior to January first, nineteen\nhundred eighty-four, shall be disregarded.\n (4) If the amount of credit allowed under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, the excess\nmay be carried over to the following year or years and may be deducted\nfrom the taxpayer's tax for such year or years. In lieu of carrying over\nany such excess, a taxpayer who qualifies as an owner of a new business\nfor purposes of paragraph ten of subsection (a) of this section may, at\nhis option, receive fifty percent of such excess as a refund. Any refund\npaid pursuant to this paragraph shall be deemed to be a refund of an\noverpayment of tax as provided in section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon.\n (4-a) Any carry over of a credit from prior taxable years will not be\nallowed if an empire zone retention certificate is not issued pursuant\nto subdivision (w) of section nine hundred fifty-nine of the general\nmunicipal law to the empire zone enterprise which is the basis of the\ncredit.\n (5) At the option of the taxpayer, air or water pollution control\nfacilities which qualify for elective modifications under subsection (h)\nof section six hundred twelve, or research and development facilities\nwhich qualify for elective modification under paragraphs three and four\nof subsection (g) of section six hundred twelve, or property which\nqualifies for the credit provided under subsection (a) or (h) of this\nsection may be treated as property principally used by the taxpayer in\nthe production of goods by manufacturing, processing, assembling,\nmining, refining, extracting, farming, agriculture, horticulture,\nfloriculture, viticulture, or commercial fishing, provided the property\notherwise qualifies under paragraph two of this subsection, in which\nevent a deduction shall not be allowed under such subsection (h) or such\nparagraphs three and four of subsection (g) and a credit shall not be\nallowed under such subsection (a) or (h).\n (6) (A) With respect to property which is depreciable pursuant to\nsection one hundred sixty-seven of the internal revenue code but is not\nsubject to the provisions of section one hundred sixty-eight of such\ncode and which is disposed of or ceases to be in qualified use prior to\nthe end of the taxable year in which the credit is to be taken, the\namount of the credit shall be that portion of the credit provided for in\nthis section which represents the ratio which the months of qualified\nuse bear to the months of useful life. If the property on which credit\nhas been taken is disposed of or ceases to be in qualified use prior to\nthe end of its useful life, the difference between the credit taken and\nthe credit allowed for actual use must be added back in the year of\ndisposition. Provided, however, if such property is disposed of or\nceases to be in qualified use after it has been in qualified use for\nmore than twelve consecutive years, it shall not be necessary to add\nback the credit as provided in this subsection. The amount of credit\nallowed for actual use shall be determined by multiplying the original\ncredit by the ratio which the months of qualified use bear to the months\nof useful life. For purposes of this subsection, useful life of property\nshall be the same as the taxpayer uses for depreciation purposes when\ncomputing his federal income tax liability.\n (B) Except with respect to that property to which subparagraph (D) of\nthis paragraph applies, with respect to three-year property, as defined\nin subsection (e) of section one hundred sixty-eight of the internal\nrevenue code, which is disposed of or ceases to be in qualified use\nprior to the end of the taxable year in which the credit is to be taken,\nthe amount of the credit shall be that portion of the credit provided\nfor in this subsection which represents the ratio which the months of\nqualified use bear to thirty-six. If property on which credit has been\ntaken is disposed of or ceases to be in qualified use prior to the end\nof thirty-six months, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. The amount of credit allowed for actual use shall be\ndetermined by multiplying the original credit by the ratio which the\nmonths of qualified use bear to thirty-six.\n (C) Except with respect to that property to which subparagraph (D) of\nthis paragraph applies, with respect to property subject to the\nprovisions of section one hundred sixty-eight of the internal revenue\ncode other than three-year property as defined in subsection (e) of such\nsection one hundred sixty-eight of the internal revenue code which is\ndisposed of or ceases to be in qualified use prior to the end of the\ntaxable year in which the credit is to be taken, the amount of the\ncredit shall be that portion of the credit provided for in this\nsubsection which represents the ratio which the months of qualified use\nbear to sixty. If property on which credit has been taken is disposed of\nor ceases to be in qualified use prior to the end of sixty months, the\ndifference between the credit taken and the credit allowed for actual\nuse must be added back in the year of disposition. The amount of credit\nallowed for actual use shall be determined by multiplying the original\ncredit by the ratio which the months of qualified use bear to sixty.\n (D) With respect to any property to which section one hundred\nsixty-eight of the internal revenue code applies, which is a building or\na structural component of a building and which is disposed of or ceases\nto be in qualified use prior to the end of the taxable year in which the\ncredit is to be taken, the amount of the credit shall be that portion of\nthe credit provided for in this subsection which represents the ratio\nwhich the months of qualified use bear to the total number of months\nover which the taxpayer chooses to deduct the property under the\ninternal revenue code. If property on which credit has been taken is\ndisposed of or ceases to be in qualified use prior to the end of the\nperiod over which the taxpayer chooses to deduct the property under the\ninternal revenue code, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. Provided, however, if such property is disposed of or\nceases to be in qualified use after it has been in qualified use for\nmore than twelve consecutive years, it shall not be necessary to add\nback the credit as provided in this subparagraph. The amount of credit\nallowed for actual use shall be determined by multiplying the original\ncredit by the ratio which the months of qualified use bear to the total\nnumber of months over which the taxpayer chooses to deduct the property\nunder the internal revenue code.\n (E) For purposes of this paragraph, disposal or cessation of qualified\nuse shall not be deemed to have occurred solely by reason of the\ntermination or expiration of an empire zone's designation as such.\n (F)(i) For purposes of this paragraph, the decertification of a\nbusiness enterprise with respect to an empire zone shall constitute a\ndisposal or cessation of qualified use of the property on which the\ncredit was taken which is located in the zone to which the\ndecertification applies, on the effective date of such decertification.\n (ii) Where a business enterprise has been decertified based on a\nfinding pursuant to clause one, two, or five of subdivision (a) of\nsection nine hundred fifty-nine of the general municipal law, the amount\nrequired to be added back by reason of this paragraph shall be augmented\nby an amount equal to the product of the amount of credit, with respect\nto property which is disposed of or ceases to be in qualified use, which\nwas deducted from the taxpayer's tax otherwise due under this article\nfor all prior taxable years (subject to the limit set forth in this\nsubparagraph) and the underpayment rate of interest (without regard to\ncompounding) set by the commissioner of taxation and finance pursuant to\nsubdivision (j) of section six hundred ninety-seven of this chapter, in\neffect on the last day of the taxable year. The limit shall be (I) the\namount of credit, with respect to the property which is disposed of or\nceases to be in qualified use, which was deducted from the taxpayer's\ntax otherwise due under this article for all prior taxable years,\nreduced (but not below zero) by (II) the credit allowed for actual use.\nFor purposes of this subparagraph, the attribution to specific property\nof credit amount deducted from tax shall be established in accordance\nwith the date of placement in service of such property in the empire\nzone.\n (iii) In no event shall the amount of the credit allowed pursuant to\nthis subsection be rendered, solely by reason of clause (i) of this\nsubparagraph, less than the amount of the credit to which the taxpayer\nwould otherwise be entitled under subsection (a) of this section.\n (iv) Notwithstanding any other provision of this subsection, in the\ncase of a business enterprise which has been decertified, any amount of\ncredit allowed with respect to the property of such business enterprise\nlocated in the zone to which the decertification applies which is\ncarried over pursuant to paragraph four of this subsection shall not be\ncarried over beyond the seventh taxable year next following the taxable\nyear with respect to which the credit provided for in this subsection\nwas allowed.\n (G) For purposes of this paragraph, where a credit is allowed with\nrespect to an air pollution control facility on the basis of a\ncertificate of compliance issued pursuant to the environmental\nconservation law and the certificate is revoked pursuant to subdivision\nthree of section 19-0309 of the environmental conservation law, such\nrevocation shall constitute a disposal or cessation of qualified use,\nexcept with respect to property contained in or comprising such facility\nwhich is described in clause (i), (ii) or (iii) of subparagraph (E) of\nparagraph two of this subsection other than as part of or comprising an\nair pollution control facility. Also for purposes of this paragraph, the\nuse of an air pollution control facility or an industrial waste\ntreatment facility for the primary purpose of salvaging materials which\nare usable in the manufacturing process or are marketable shall\nconstitute a cessation of qualified use, except with respect to property\ncontained in or comprising such facility which is described in clause\n(i) or (iii) of subparagraph (E) of paragraph two of this subsection.\n (H) Except as provided in this subparagraph, this paragraph shall not\napply to a credit allowed by this subsection to a taxpayer that is a\npartner in a partnership in the case of manufacturing property;\nprovided, at the time such property was placed in service by such\npartnership in an empire zone the basis for federal income tax purposes\nof such property (or a project that includes such property) equaled or\nexceeded three hundred million dollars and such partner owned his or her\npartnership interest for at least three years from the date such\nproperty was placed in service. If such property ceases to be in\nqualified use after it is placed in service, this paragraph shall apply\nto such partner in the year such property ceases to be in qualifying\nuse.\n (7) Notwithstanding the expiration of the empire zones program under\narticle eighteen-B of the general municipal law, a taxpayer that is\ncertified as an empire zone business pursuant to such article eighteen-B\non the day immediately preceding the day the empire zones program\nexpired shall continue to be deemed certified under such article\neighteen-B for purposes of this subdivision until April first, two\nthousand fourteen. In addition, the areas designated as empire zones in\nwhich the taxpayer is certified as an empire zone business on the day\nimmediately preceding the day the empire zones program expired shall\ncontinue to be deemed empire zones for purposes of this subdivision\nuntil April first, two thousand fourteen.\n (j-1) Empire zone employment incentive credit. (1) Where a taxpayer is\nallowed a credit under subsection (j) of this section, the taxpayer\nshall be allowed a credit for each of the three years next succeeding\nthe taxable year for which the credit under such subsection (j) is\nallowed, with respect to such property, whether or not deductible in\nsuch taxable year or in subsequent taxable years pursuant to paragraph\nfour of subsection (j) of this section, of thirty percent of the credit\nallowable under such subsection (j); provided, however, that the credit\nallowable under this subsection for any taxable year shall only be\nallowed if the average number of employees employed by the taxpayer in\nthe empire zone, designated pursuant to article eighteen-B of the\ngeneral municipal law, in which such property is located during such\ntaxable year is at least one hundred one percent of the average number\nof employees employed by the taxpayer in such empire zone or, where\napplicable, in the geographic area subsequently constituting such zone,\nduring the taxable year immediately preceding the taxable year for which\nthe credit under such subsection (j) is allowed and provided, further,\nthat in the case of a new business, the credit allowable under this\nsubsection for any taxable year shall be allowed if the average number\nof employees employed in such empire zone in such taxable year is at\nleast one hundred one percent of the average number of such employees\nduring the taxable year in which the credit under such subsection (j) is\nallowed.\n (2) The average number of employees employed in an empire zone, or,\nwhere applicable, in the geographic area subsequently constituting such\nzone, in a taxable year shall be computed by ascertaining the number of\nsuch employees within such zone, or, where applicable, in the geographic\narea subsequently constituting such zone, employed by the taxpayer on\nthe thirty-first day of March, the thirtieth day of June, the thirtieth\nday of September and the thirty-first day of December in the taxable\nyear, by adding together the number of employees ascertained in each of\nsuch dates and dividing the sum so obtained by the number of such\nabovementioned dates occurring within the taxable year.\n (3) If the amount of credit allowed under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, the excess\nmay be carried over to the following year or years and may be deducted\nfrom the taxpayer's tax for such year or years. In lieu of carrying over\nany such excess, a taxpayer who qualified as an owner of a new business\nfor purposes of paragraph ten of subsection (a) of this section may, at\nhis option, receive fifty percent of such excess as a refund. Any refund\npaid pursuant to this paragraph shall be deemed to be a refund of an\noverpayment of tax as provided in section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon.\n (3-a) Any carry over of a credit from prior taxable years will not be\nallowed to an empire zone enterprise which is the basis of the credit,\nif an empire zone retention certificate is not issued to such entity\npursuant to subdivision (w) of section nine hundred fifty-nine of the\ngeneral municipal law.\n (4) Notwithstanding the expiration of the empire zones program under\narticle eighteen-B of the general municipal law, a taxpayer that is\ncertified as an empire zone business pursuant to such article eighteen-B\non the day immediately preceding the day the empire zones program\nexpired shall continue to be deemed in the empire zone in which the\ntaxpayer was certified as an empire zone business on the day immediately\npreceding the day the empire zones program expired for each of the three\nyears next succeeding the taxable year for which the credit under\nsubdivision (j) is allowed.\n (k) Empire zone wage tax credit. (1) A taxpayer shall be allowed a\ncredit, to be computed as hereinafter provided, against the tax imposed\nby this article, where the taxpayer has been certified pursuant to\narticle eighteen-B of the general municipal law. The amount of such\ncredit shall be as prescribed in paragraph four of this subsection.\n (2) For the purposes of this subsection, the following terms shall\nhave the following meanings: (A) "Empire zone wages" means wages paid by\nthe taxpayer for full-time employment during the taxable year, in an\narea designated or previously designated as an empire zone or zone\nequivalent area pursuant to article eighteen-B of the general municipal\nlaw, where such employment is in a job created in the area (i) during\nthe period of its designation as an empire zone, (ii) within four years\nof the expiration of such designation, or (iii) during the ten year\nperiod immediately following the date of designation as a zone\nequivalent area, provided, however, that if the taxpayer's certification\nunder article eighteen-B of the general municipal law is revoked with\nrespect to an empire zone or zone equivalent area, any wages paid by the\ntaxpayer, on or after the effective date of such decertification, for\nemployment in such zone shall not constitute empire zone wages.\n (B) "Targeted employee" means a New York resident who receives empire\nzone wages and who is (i) an eligible individual under the provisions of\nthe targeted jobs tax credit (section fifty-one of the internal revenue\ncode), (ii) eligible for benefits under the provisions of the workforce\ninvestment act as a dislocated worker or low-income individual (P.L.\n105-220, as amended), (iii) a recipient of public assistance benefits,\n(iv) an individual whose income is below the most recently established\npoverty rate promulgated by the United States department of commerce, or\na member of a family whose family income is below the most recently\nestablished poverty rate promulgated by the appropriate federal agency\nor (v) an honorably discharged member of any branch of the armed forces\nof the United States.\n An individual who satisfies the criteria set forth in clause (i),\n(ii), (iv) or (v) at the time of initial employment in the job with\nrespect to which the credit is claimed, or who satisfies the criterion\nset forth in clause (iii) at such time or at any time within the\nprevious two years, shall be a targeted employee so long as such\nindividual continues to receive empire zone wages.\n (C) "Average number of individuals employed full-time" shall be\ncomputed by ascertaining the number of such individuals employed by the\ntaxpayer on the thirty-first day of March, the thirtieth day of June,\nthe thirtieth day of September and the thirty-first day of December\nduring each taxable year or other applicable period, by adding together\nthe number of such individuals ascertained on each of such dates and\ndividing the sum so obtained by the number of such dates occurring\nwithin such taxable year or other applicable period.\n (3) The credit provided for herein shall be allowed only where the\naverage number of individuals employed full-time by the taxpayer in (i)\nthe state and (ii) the empire zone or area previously constituting such\nzone or zone equivalent area, during the taxable year exceeds the\naverage number of such individuals employed full-time by the taxpayer in\n(i) the state and (ii) such zone or area subsequently or previously\nconstituting such zone or such zone equivalent area, respectively,\nduring the four years immediately preceding the first taxable year in\nwhich the credit is claimed with respect to such zone or area. Where the\ntaxpayer provided full-time employment within (i) the state or (ii) such\nzone or area during only a portion of such four-year period, then for\npurposes of this paragraph the term "four years" shall be deemed to\nrefer instead to such portion, if any.\n The credit shall be allowed only with respect to the first taxable\nyear during which payments of empire zone wages are made and the\nconditions set forth in this paragraph are satisfied, and with respect\nto each of the four taxable years next following (but only, with respect\nto each of such years, if such conditions are satisfied), in accordance\nwith paragraph four of this subsection. Subsequent certifications of the\ntaxpayer pursuant to article eighteen-B of the general municipal law, at\nthe same or a different location in the same empire zone or zone\nequivalent area or at a location in a different empire zone or zone\nequivalent area, shall not extend the five taxable year time limitation\non the allowance of the credit set forth in the preceding sentence.\nProvided, further, however, that no credit shall be allowed with respect\nto any taxable year beginning more than four years following the taxable\nyear in which designation as an empire zone expired or more than ten\nyears after the designation as a zone equivalent area.\n (4) The amount of the credit shall equal the sum of\n (i) the product of three thousand dollars and the average number of\nindividuals employed full-time by the taxpayer, computed pursuant to the\nprovisions of subparagraph (C) of paragraph two of this subsection, who\n (I) received empire zone wages for more than half of the taxable year,\n (II) received with respect to more than half of the period of\nemployment by the taxpayer during the taxable year, an hourly wage which\nwas at least one hundred thirty-five percent of the minimum wage\nspecified in section six hundred fifty-two of the labor law, and\n (III) are targeted employees; and\n (ii) the product of fifteen hundred dollars and the average number of\nindividuals (excluding individuals described in subparagraph (i) of this\nparagraph) employed full-time by the taxpayer, computed pursuant to the\nprovisions of subparagraph (C) of paragraph two of this subsection, who\nreceived empire zone wages for more than half of the taxable year.\n Provided, further, however, that the credit provided for herein with\nrespect to the taxable year, and carryovers of such credit to the\ntaxable year, deducted from the tax otherwise due, may not, in the\naggregate, exceed fifty percent of the tax imposed under section six\nhundred one computed without regard to any credit provided for under\nthis article.\n (iii) For purposes of calculating the amount of the credit,\nindividuals employed within an empire zone or zone equivalent area\nwithin the immediately preceding sixty months by a related person, as\nsuch term is defined in subparagraph (c) of paragraph three of\nsubsection (b) of section four hundred sixty-five of the internal\nrevenue code, shall not be included in the average number of individuals\ndescribed in subparagraph (i) or subparagraph (ii) of this paragraph,\nunless such related person was never allowed a credit under this\nsubsection with respect to such employees. For purposes of this\nsubparagraph, a "related person" shall include an entity which would\nhave qualified as a "related person" to the taxpayer if it had not been\ndissolved, liquidated, merged with another entity or otherwise ceased to\nexist or operate.\n (iv) If a taxpayer is certified in an empire zone designated under\nsubdivision (a) or (d) of section nine hundred fifty-eight of the\ngeneral municipal law, the dollar amounts specified under subparagraph\n(i) or (ii) of this paragraph shall be increased by five hundred dollars\nfor each qualifying individual under such subparagraph who received,\nduring the taxable year, wages in excess of forty thousand dollars.\n (v) The requirement in this paragraph that an employee must receive\nempire zone wages for more than half the taxable year shall not apply in\nthe first taxable year of a taxpayer satisfying the criteria set forth\nin this subparagraph. In such a case, the credit allowed under this\nsubsection shall be computed by utilizing the number of individuals\n(excluding general executive officers) employed full time by the\ntaxpayer on the last day of its first taxable year. A taxpayer shall\nsatisfy the following criteria: (I) such taxpayer acquired real or\ntangible personal property during its first taxable year from an entity\nwhich is not a related person (as such term is defined in subdivision\n(g) of section fourteen of this chapter); (II) the first taxable year of\nsuch taxpayer shall be a short taxable year of not more than seven\nmonths in duration; and (III) the number of individuals employed\nfull-time on the last day of such first taxable year shall be at least\none hundred ninety and substantially all of such individuals must have\nbeen previously employed by the entity from whom such taxpayer purchased\nits assets.\n (5) If the amount of the credit and carryovers of such credit allowed\nunder this subsection for any taxable year shall exceed the taxpayer's\ntax for such year, the excess, as well as any part of the credit or\ncarryovers of such credit, or both, which may not be deducted from the\ntax otherwise due by reason of the final sentence in paragraph four\nhereof, may be carried over to the following year or years and may be\ndeducted from the taxpayer's tax for such year or years. In lieu of\ncarrying over any such excess, a taxpayer who qualifies as an owner of a\nnew business for purposes of paragraph ten of subsection (a) of this\nsection may, at his option, receive fifty percent of such excess as a\nrefund. Any refund paid pursuant to this paragraph shall be deemed to be\na refund of an overpayment of tax as provided in section six hundred\neighty-six of this article, provided, however, that no interest shall be\npaid thereon.\n (5-a) Any carry over of a credit from prior taxable years will not be\nallowed if an empire zone retention certificate is not issued pursuant\nto subdivision (w) of section nine hundred fifty-nine of the general\nmunicipal law to the empire zone enterprise which is the basis of the\ncredit.\n (l) Empire zone capital tax credit. (1) A taxpayer shall be allowed a\ncredit against the tax imposed by this article. The amount of the credit\nshall be equal to twenty-five percent of the sum of the following\ninvestments and contributions made during the taxable year and certified\nby the commissioner of economic development: (A) for taxable years\nbeginning before January first, two thousand five, qualified investments\nmade in, or contributions in the form of donations made to, one or more\nempire zone capital corporations established pursuant to section nine\nhundred sixty-four of the general municipal law prior to January first,\ntwo thousand five, (B) qualified investments in certified zone\nbusinesses which during the twelve month period immediately preceding\nthe month in which such investment is made employed full-time within the\nstate an average number of individuals of two hundred fifty or fewer,\ncomputed pursuant to the provisions of subparagraph (C) of paragraph two\nof subsection (k) of this section, except for investments made by or on\nbehalf of an owner of the business including, but not limited to, a\nstockholder, partner or sole proprietor, or any related person, as\ndefined in subparagraph (C) of paragraph three of subsection (b) of\nsection four hundred sixty-five of the internal revenue code, and (C)\ncontributions of money to community development projects as defined in\nregulations promulgated by the commissioner of economic development.\n"Qualified investments" means the contribution of property to a\ncorporation in exchange for original issue capital stock or other\nownership interest, the contribution of property to a partnership in\nexchange for an interest in the partnership, and similar contributions\nin the case of a business entity not in corporate or partnership form in\nexchange for an ownership interest in such entity. The total amount of\ncredit allowable to a taxpayer under this provision for all years, taken\nin the aggregate, shall not exceed three hundred thousand dollars, and\nshall not exceed one hundred thousand dollars with respect to the\ninvestments and contributions described in each of subparagraphs (A),\n(B) and (C) of this paragraph.\n (1-a) Any carry over of a credit from prior taxable years will not be\nallowed to an empire zone enterprise which is the basis of the credit,\nif an empire zone retention certificate is not issued to such entity\npursuant to subdivision (w) of section nine hundred fifty-nine of the\ngeneral municipal law.\n (2) (A) If the amount of the credit and carryovers of such credit\nallowed under this subsection for any taxable year shall exceed the\ntaxpayer's tax for such year, or if any part of the credit or carryovers\nof such credit may not be deducted from the tax otherwise due by reason\nof the final sentence of this subparagraph, any amount of credit or\ncarryovers of such credit thus not deductible in such taxable year may\nbe carried over to the following year or years and may be deducted from\nthe tax for such year or years. In addition, the amount of such credit,\nand carryovers of such credit to the taxable year, deducted from the tax\notherwise due may not, in the aggregate, exceed fifty percent of the tax\nimposed under section six hundred one computed without regard to any\ncredit provided for by this section.\n (B) In the case of a husband or wife who is required to file a\nseparate return, the limitation provided for in paragraph one of this\nsubsection shall be fifty thousand dollars in lieu of one hundred\nthousand dollars and one hundred fifty thousand dollars in lieu of three\nhundred thousand dollars, unless the spouse of the taxpayer has no\ncredit allowable under this subsection for the taxable year of such\nspouse which ends within or with the taxpayer's taxable year.\n (C) In the case of an estate or trust, the limitation provided for in\nparagraph one of this subsection shall be reduced to an amount which\nbears the same ratio to one hundred thousand dollars and an amount which\nbears the same ratio to three hundred thousand dollars as the portion of\nthe income of the estate or trust which is not allocated to\nbeneficiaries bears to the total income of the estate or trust.\n (3) Where the stock, partnership interest or other ownership interest\narising from a qualified investment as described in subparagraphs (A)\nand (B) of paragraph one of this subsection is disposed of, the\ntaxpayer's New York taxable income shall be computed, pursuant to\nregulations promulgated by the commissioner, so as to properly reflect\nthe reduced cost thereof arising from the application of the credit\nprovided for herein.\n (4) (A) Where a taxpayer sells, transfers or otherwise disposes of\ncorporate stock, a partnership interest or other ownership interest\narising from the making of a qualified investment which was the basis,\nin whole or in part, for the allowance of the credit provided for under\nthis subsection, or where a contribution or investment which was the\nbasis for such allowance is in any manner, in whole or in part,\nrecovered by such taxpayer, and such disposition or recovery occurs\nduring the taxable year or within thirty-six months from the close of\nthe taxable year with respect to which such credit is allowed,\nsubparagraph (B) of this paragraph shall apply.\n (B) The taxpayer shall add back with respect to the taxable year in\nwhich the disposition or recovery described in subparagraph (A) of this\nparagraph occurred the required portion of the credit originally\nallowed.\n (C) The required portion of the credit originally allowed shall be the\nproduct of (i) the portion of such credit attributable to the property\ndisposed of or the payment or contribution recovered and (ii) the\napplicable percentage.\n (D) The applicable percentage shall be:\n (i) one hundred percent, if the disposition or recovery occurs within\nthe taxable year with respect to which the credit is allowed or within\ntwelve months of the end of such taxable year,\n (ii) sixty-seven percent, if the disposition or recovery occurs more\nthan twelve but not more than twenty-four months after the end of the\ntaxable year with respect to which the credit is allowed, or\n (iii) thirty-three percent, if the disposition or recovery occurs more\nthan twenty-four but not more than thirty-six months after the end of\nthe taxable year with respect to which the credit is allowed.\n (5) If the designation of an area as an empire zone is no longer in\neffect because the designations of all empire zones pursuant to article\neighteen-B of the general municipal law have expired, a taxpayer that\nhas made a contribution of money on or before the day immediately\npreceding the day the empire zones expired to a community development\nproject approved by the commissioner of economic development shall be\ndeemed eligible to claim the empire zone capital credit under\nsubparagraph (C) of paragraph one of this subsection for additional\ncontributions made prior to April first, two thousand fourteen and\ncertified by the commissioner of economic development to that community\ndevelopment project as payment of a commitment made by the taxpayer to\nthat community development project before the empire zones expired.\n (m) Excess deductions credit. (1) General. For taxable years beginning\nin nineteen hundred ninety-five, an excess deductions credit shall be\nallowed against the tax determined under subsections (a) through (d) of\nsection six hundred one of this article. The credit shall be allowed to\nan individual taxpayer whose New York itemized deduction determined\nunder section six hundred fifteen (whether or not the taxpayer elects\nthe New York itemized deduction for the taxable year) exceeds the base\namount determined under paragraph two hereof. The credit shall not\nexceed the tax determined under subsections (a) through (d) of section\nsix hundred one for the taxable year, reduced by the credits permitted\nunder subsection (c) of this section and sections six hundred twenty and\nsix hundred twenty-one of this article.\n (2) Base amount. The base amount shall be determined by the taxpayer's\nstandard deduction status under section six hundred fourteen (whether or\nnot the taxpayer employs the standard deduction for the taxable year) as\nfollows:\nIf the taxpayer's standard The base amount is:\n deduction status is:\n Unmarried individual who is\n not a head of household nor a\n surviving spouse nor an\n individual whose federal\n exemption amount is zero $6,000\n Husband and wife whose New York\n taxable income is determined\n jointly, or a surviving spouse $9,500\n Head of household $7,000\n Married individual filing a\n separate New York return $4,750\n (3) Credit amount.\n (A) Married individuals filing joint returns and surviving spouses.\nThe amount of the credit allowed pursuant to this subsection for married\nindividuals filing jointly under subsection (b) of section six hundred\nfifty-one and for a surviving spouse shall be:\nIf New York taxable income is: The credit is the following\n percentage of New York\n taxable income:\n Not over $11,500 0.57%\n Over $11,500 but not over $17,500 0.51%\n Over $17,500 but not over $24,100 0.36%\n Over $24,100 but not over $31,500 0.26%\n Over $31,500 but not over $35,500 0.16%\n Over $35,500 but not over $42,000 0.11%\n Over $42,000 but not over $49,000 0.06%\n Over $49,000 0.00%\n (B) Heads of households. The amount of the credit allowed pursuant to\nthis subsection for a head of household shall be:\nIf New York taxable income is: The credit is the following\n percentage of New York\n taxable income:\n Not over $7,600 0.57%\n Over $7,600 but not over $11,700 0.51%\n Over $11,700 but not over $16,400 0.36%\n Over $16,400 but not over $20,500 0.26%\n Over $20,500 but not over $23,800 0.16%\n Over $23,800 but not over $28,650 0.11%\n Over $28,650 but not over $33,400 0.06%\n Over $33,400 0.00%\n (C) Unmarried individuals and married individuals filing separate\nreturns. The amount of the credit allowed pursuant to this subsection\nfor an individual who is not a married individual filing jointly under\nsubsection (b) of section six hundred fifty-one nor a head of a\nhousehold nor a surviving spouse shall be:\nIf New York taxable income is: The credit is the following\n percentage of New York\n taxable income:\n Not over $5,600 0.57%\n Over $5,600 but not over $8,600 0.51%\n Over $8,600 but not over $12,000 0.36%\n Over $12,000 but not over $15,700 0.26%\n Over $15,700 but not over $17,600 0.16%\n Over $17,600 but not over $21,000 0.11%\n Over $21,000 but not over $24,500 0.06%\n Over $24,500 0.00%\n (n) Agricultural property tax credit. (1) General. In the case of a\ntaxpayer who is an eligible farmer or an eligible farmer who has paid\ntaxes pursuant to a land contract, there shall be allowed a credit for\nthe allowable school district property taxes. The term "allowable school\ndistrict property taxes" means the school district property taxes paid\nduring the taxable year on qualified agricultural property, subject to\nthe acreage limitation provided in paragraph five of this subsection and\nthe income limitation provided in paragraph six of this subsection. Such\ncredit shall be allowed against the taxes imposed by this article for\nthe taxable year reduced by the credits permitted by this article. If\nthe credit exceeds the tax as so reduced, the taxpayer may receive, and\nthe comptroller, subject to a certificate of the commissioner, shall pay\nas an overpayment, without interest, the amount of such excess.\n (2) Eligible farmer. For purposes of this subsection, the term\n"eligible farmer" means a taxpayer whose federal gross income from\nfarming for the taxable year is at least two-thirds of excess federal\ngross income. The term "eligible farmer" also includes an individual\nother than the taxpayer of record for qualified agricultural land who\nhas paid the school district property taxes on such land pursuant to a\ncontract for the future purchase of such land; provided that such\nindividual has a federal gross income from farming for the taxable year\nwhich is at least two-thirds of excess federal gross income; and\nprovided further that, in determining such income eligibility, a\ntaxpayer may, for any taxable year, use the average of such federal\ngross income from farming for that taxable year and such income for the\ntwo consecutive taxable years immediately preceding such taxable year.\nExcess federal gross income means the amount of federal gross income\nfrom all sources for the taxable year reduced by the sum (not to exceed\nthirty thousand dollars) of those items included in federal gross income\nwhich consist of (i) earned income, (ii) pension payments, including\nsocial security payments, (iii) interest, and (iv) dividends. For\npurposes of this paragraph, the term "earned income" shall mean wages,\nsalaries, tips and other employee compensation, and those items of gross\nincome which are includible in the computation of net earnings from\nself-employment. For the purposes of this paragraph, payments from the\nstate's farmland protection program, administered by the department of\nagriculture and markets, shall be included as federal gross income from\nfarming for otherwise eligible farmers.\n (3) School district property taxes. For purposes of this subsection,\nthe term "school district property taxes" means all property taxes,\nspecial ad valorem levies and special assessments, exclusive of\npenalties and interest, levied for school district purposes on the\nqualified agricultural property (A) owned by the taxpayer, (B) owned by\nthe father, mother, grandfather, grandmother, brother or sister of the\ntaxpayer and a written agreement expressing intent to eventually\npurchase the land has been entered into, or (C) owned by trust where the\ntaxpayer is an immediate family member of the settlor, and where under\nthe terms of the trust the title to the property shall pass to such\ntaxpayer upon the death of the settlor.\n (4) Qualified agricultural property. For purposes of this subsection,\nthe term "qualified agricultural property" means land located in this\nstate which is used in agricultural production, and land improvements,\nstructures and buildings (excluding buildings used for the taxpayer's\nresidential purpose) located on such land which are used or occupied to\ncarry out such production. Qualified agricultural property also includes\nland set aside or retired under a federal supply management or soil\nconservation program or land that at the time it becomes subject to a\nconservation easement, as defined under subsection (kk) of this section,\nmet the requirements under this paragraph.\n (5) Acreage limitation. (A) Eligible taxes. In the event that the\nqualified agricultural property owned by the taxpayer includes land in\nexcess of the base acreage as provided in this paragraph, the amount of\nschool district property taxes eligible for credit under this subsection\nshall be that portion of the school district property taxes which bears\nthe same ratio to the total school district property taxes paid during\nthe taxable year, as the acreage allowable under this paragraph bears to\nthe entire acreage of such land.\n (B) Allowable acreage. The allowable acreage is the sum of the base\nacreage set forth below and fifty percent of the incremental acreage.\nThe incremental acreage is the excess of the entire acreage of qualified\nagricultural land owned by the taxpayer over the base acreage. Except as\nprovided in subparagraph (C) of this paragraph:\n For taxable years beginning: The base acreage is:\n in 1997 100\n after 1997 but before 2006 250\n 2006 and thereafter 350\nFor taxable years beginning after two thousand, total base acreage may\nbe increased by any acreage enrolled or participating during the taxable\nyear in a federal environmental conservation acreage reserve program\npursuant to title three of the federal agriculture improvement and\nreform act of nineteen hundred ninety-six.\n (C) Base acreage of related persons. Where the taxpayer and one or\nmore related persons each own qualified agricultural property on the\nfirst day of March of any year, the base acreage under subparagraph (B)\nof this paragraph shall be divided equally and allotted among the\ntaxpayer and such related persons, and the taxpayer's base acreage for\nthe taxable year which includes such March first shall be limited to its\nallotted share. Provided, however, if the taxpayer and all such related\npersons consent (at such time and in such manner as the commissioner may\nprescribe) to an unequal division, the taxpayer's base acreage for such\ntaxable year shall be limited to its allotted share under such unequal\ndivision.\n (D) Related persons. (i) For purposes of subparagraph (C) of this\nparagraph, the term "related person" means:\n (I) a spouse;\n (II) a corporation subject to tax under article nine-A of this\nchapter, where more than fifty percent in value of the outstanding stock\nof the corporation is owned, directly or indirectly, by or for the\ntaxpayer, or, where the taxpayer is a trust, where such stock is owned\ndirectly or indirectly by or for the grantor of such trust;\n (III) a partnership, estate or trust of which the taxpayer owns,\ndirectly or indirectly, more than fifty percent of the capital, profits\nor beneficial interest.\n (ii) For purposes of subparagraph (C) of this paragraph, where the\ntaxpayer is an estate or trust, the term "related person" shall also\nmean a corporation subject to tax under article nine-A of this chapter,\na partnership, an estate or trust:\n (I) where more than fifty percent of the beneficial interest in the\ntaxpayer is owned, directly or indirectly, by or for such corporation,\npartnership, estate or trust or by or for the grantor of such trust; or\n (II) if the same person owns more than fifty percent of the beneficial\ninterest in the taxpayer and more than fifty percent in value of the\noutstanding stock of the corporation, or more than fifty percent of the\ncapital or profits interest in the partnership, or more than fifty\npercent of the beneficial interest in the estate or trust.\n (iii) In determining whether a person is a related person within the\nmeaning of this subparagraph:\n (I) stock owned, directly or indirectly, by or for a corporation,\npartnership, estate or trust shall be considered as being owned\nproportionately by or for its shareholders, partners or beneficiaries;\n (II) an individual shall be considered as owning the stock owned,\ndirectly or indirectly, by or for his spouse;\n (III) stock constructively owned by a person by reason of the\napplication of item (I) of this clause shall, for the purpose of\napplying item (I) or (II) of this clause, be treated as actually owned\nby such person.\n (6) Income limitation. (A) In the event that the modified New York\nadjusted gross income of the taxpayer exceeds one hundred thousand\ndollars for taxable years beginning before two thousand six or two\nhundred thousand dollars for taxable year two thousand six and\nthereafter, the allowable school district property taxes under paragraph\none of this subsection shall be the eligible taxes under subparagraph\n(A) of paragraph five of this subsection reduced by the product of the\namount of such eligible taxes and a percentage, such percentage to be\ndetermined by multiplying one hundred percent by a fraction, the\nnumerator of which is the lesser of fifty thousand dollars for taxable\nyears beginning before two thousand six or one hundred thousand dollars\nfor taxable year two thousand six and thereafter or the excess of the\ntaxpayer's modified New York adjusted gross income over one hundred\nthousand dollars for taxable years beginning before two thousand six or\ntwo hundred thousand dollars for taxable year two thousand six and\nthereafter and the denominator of which is fifty thousand dollars for\ntaxable years beginning before two thousand six or one hundred thousand\ndollars for taxable year two thousand six and thereafter. For purposes\nof the preceding sentence, the term "eligible taxes", where the acreage\nlimitation of paragraph five of this subsection does not apply, shall\nmean the total school district property taxes paid during the taxable\nyear.\n (B) The term "modified New York adjusted gross income" means the New\nYork adjusted gross income for the taxable year reduced by the amount of\nprincipal paid on farm indebtedness during the taxable year. The term\n"farm indebtedness" means debt incurred or refinanced which is secured\nby farm property, where the proceeds of the debt are disbursed for\nexpenditures incurred in the business of farming.\n (7) Nonqualified use. (A) No credit in conversion year. In the event\nthat qualified agricultural property is converted by the taxpayer to\nnonqualified use, credit under this subsection shall not be allowed with\nrespect to such property for the taxable year of conversion (the\nconversion year).\n (B) Credit recapture. If the conversion by the taxpayer of qualified\nagricultural property to nonqualified use occurs during the period of\nthe two taxable years following the taxable year for which the credit\nunder this subsection was first claimed with respect to such property,\nthe credit allowed with respect to such property for the taxable years\nprior to the conversion year must be added back in the conversion year.\nWhere the property converted includes land, and where the conversion is\nof only a portion of such land, the credit allowed with respect to the\nproperty converted shall be determined by multiplying the entire credit\nunder this subsection for the taxable years prior to the conversion year\nby a fraction, the numerator of which is the acreage converted and the\ndenominator of which is the entire acreage of such land owned by the\ntaxpayer immediately prior to the conversion.\n (C) Exception to recapture. Subparagraph (B) of this paragraph shall\nnot apply to the conversion of property where the conversion is by\nreason of involuntary conversion, within the meaning of section one\nthousand thirty-three of the internal revenue code.\n (D) Conversion to nonqualified use. For purposes of this paragraph, a\nsale or other disposition of qualified agricultural property alone shall\nnot constitute a conversion to a nonqualified use.\n (8) Special rules. For purposes of this subsection, the term "federal\ngross income from farming" shall include gross income from the\nproduction of maple syrup, cider, Christmas trees derived from a managed\nChristmas tree operation whether dug for transplanting or cut from the\nstump, or from a commercial horse boarding operation as defined in\nsubdivision thirteen of section three hundred one of the agriculture and\nmarkets law, or from the sale of wine from a licensed farm winery as\nprovided for in article six of the alcoholic beverage control law, or\nfrom the sale of cider from a licensed farm cidery as provided for in\nsection fifty-eight-c of the alcoholic beverage control law.\n (9) Election to deem gross income of New York C corporation to\nshareholders. (A) General. For purposes of the credit under this\nsubsection, the shareholders of an eligible corporation may elect to\ntake into account their pro rata shares of the corporation's income and\nprincipal payments on farm indebtedness as provided in subparagraph (B)\nof this paragraph, for the taxable year of the corporation ending with\nor within the taxable year of each shareholder. No election under this\nparagraph shall be effective unless shareholders holding more than\none-half, by vote and value, of the shares of stock of the corporation\non the day on which the election is made have so elected.\n (B) Inclusion in gross and adjusted gross income. (i) For any taxable\nyear of the corporation for which the election under this paragraph is\nin effect, the shareholders of the corporation shall include:\n (I) in gross income, for purposes of paragraph two of this subsection,\ntheir pro rata shares of the corporation's gross income, which income\nshall have the same character as in the hands of the corporation, and\n (II) in adjusted gross income, for purposes of paragraph six of this\nsubsection, their pro rata shares of the corporation's entire net\nincome, and\n (III) in principal payments on farm indebtedness, for purposes of\nparagraph six of this subsection, their pro rata shares of such payments\nmade by the corporation.\n (ii) Tiered New York C and New York S corporation. In the event that a\nshareholder of the corporation is a New York S corporation, the New York\nS corporation shall make the inclusions prescribed by clause (i) of this\nsubparagraph (except that the inclusion prescribed by subclause (II) of\nsuch clause shall be in the entire net income of the New York S\ncorporation), and the New York S corporation shall pass through such\ninclusions in pro rata shares to its shareholders for purposes of their\ncalculation of credit under this subsection.\n (C) Eligible corporation. The term "eligible corporation" means a\ncorporation subject to tax under article nine-A of this chapter which is\na New York C corporation for federal income tax purposes.\n (D) Pro rata share. For purposes of this paragraph, the pro rata share\nof any item of income or farm indebtedness principal payments for a\ntaxable year of the corporation shall be determined with respect to a\nshareholder by assigning an equal portion of the item to each day of\nsuch taxable year, and then by dividing that portion pro rata among the\nshares outstanding on such day.\n (E) Election. (i) An election under subparagraph (A) of this paragraph\nshall be made on such form and in such manner as the commissioner may\nprescribe.\n (ii) When made. Such election shall be made no later than the due date\nof the corporation tax return (determined without regard to extensions)\nfor the corporation's taxable year for which the election is to be\neffective.\n (iii) When effective. Such election shall be effective for the taxable\nyear of the corporation for which it is made and for all succeeding\ntaxable years of the corporation, until such election is terminated\nunder subparagraph (F) of this paragraph.\n (F) Termination. (i) Revocation. An election under subparagraph (A) of\nthis paragraph shall be terminated if shareholders holding more than\none-half, by vote and value, of the shares of stock of the corporation\non the day on which the revocation is made revoke the election. Such\nrevocation shall be made on such form and in such manner as the\ncommissioner may prescribe, and shall be effective on the first day of\nthe corporation's taxable year following the date on which the\nrevocation is made.\n (ii) Ineligible corporation. An election under subparagraph (A) of\nthis paragraph shall be terminated on the first day of the corporation's\ntaxable year with respect to which the corporation ceases to be an\neligible corporation.\n (G) Election after termination. If an election is terminated under\nsubparagraph (F) of this paragraph, no further election under\nsubparagraph (A) of this paragraph shall be made before the fifth\ntaxable year of the corporation following the taxable year during which\nthe termination occurred, unless the commissioner consents to such\nelection.\n (H) Waiver of secrecy. The commissioner shall have authority to reveal\nto shareholders of the corporation any information with respect to\nincome or farm indebtedness principal payments of the corporation, for\nany taxable year of the corporation for which the election under this\nparagraph is in effect, which is the basis for denial in whole or in\npart of the credit claimed by such shareholders.\n (n-1) Homeowner tax rebate credit. (1) An individual taxpayer who\nmeets the eligibility standards in paragraph two of this subsection\nshall be allowed a credit against the taxes imposed by this article in\nthe amount specified in paragraph three of this subsection for tax year\ntwo thousand twenty-two.\n (2) To be eligible for the credit, the taxpayer (or taxpayers filing\njoint returns) (a) must own and primarily reside in real property\nreceiving either the STAR exemption authorized by section four hundred\ntwenty-five of the real property tax law or the school tax relief credit\nauthorized by subsection (eee) of this section, and (b) must have had\nqualified gross income no greater than two hundred fifty thousand\ndollars in tax year two thousand twenty.\n (3) Amount of credit. (a) For a taxpayer who owned and primarily\nresided in real property receiving the basic STAR exemption or who\nreceived the basic STAR credit, the amount of the credit shall equal the\nSTAR tax savings associated with such basic STAR exemption in the two\nthousand twenty-one--two thousand twenty-two school year, multiplied by\nthe following percentage:\n (i) For a taxpayer whose primary residence is located outside the city\nof New York:\nQualified Gross Income Percentage\nNot over $75,000 163%\nOver $75,000 but not over $150,000 115%\nOver $150,000 but not over $200,000 66%\nOver $200,000 but not over $250,000 18%\nOver $250,000 No credit\n (ii) For a taxpayer whose primary residence is located within the city\nof New York:\nQualified Gross Income Percentage\nNot over $75,000 125%\nOver $75,000 but not over $150,000 115%\nOver $150,000 but not over $200,000 105%\nOver $200,000 but not over $250,000 100%\nOver $250,000 No credit\n (b) For a taxpayer who owned and primarily resided in real property\nreceiving the enhanced STAR exemption or who received the enhanced STAR\ncredit, the amount of the credit shall equal the STAR tax savings\nassociated with such enhanced STAR exemption in the two thousand\ntwenty-one--two thousand twenty-two school year, multiplied by sixty-six\npercent if the taxpayer's primary residence is located outside the city\nof New York, or one hundred ten percent if the taxpayer's primary\nresidence is located within the city of New York.\n (c) In no case may the amount of the credit allowed under this\nsubsection exceed the school district taxes due with respect to the\nresidence for that school year, nor shall any credit be allowed under\nthis subsection if the amount determined pursuant to this paragraph is\nless than one hundred dollars.\n (4) For purposes of this subsection:\n (a) "Qualified gross income" means the adjusted gross income of the\nqualified taxpayer for the taxable year as reported for federal income\ntax purposes, or which would be reported as adjusted gross income if a\nfederal income tax return were required to be filed. In computing\nqualified gross income, the net amount of loss reported on Federal\nSchedule C, D, E, or F shall not exceed three thousand dollars per\nschedule. In addition, the net amount of any other separate category of\nloss shall not exceed three thousand dollars. The aggregate amount of\nall losses included in computing qualified gross income shall not exceed\nfifteen thousand dollars.\n (b) "STAR tax savings" means the tax savings attributable to the basic\nor enhanced STAR exemption, whichever is applicable, within a portion of\na school district, as determined by the commissioner pursuant to\nsubdivision two of section thirteen hundred six-a of the real property\ntax law.\n (5) If the amount of the credit allowed under this subsection shall\nexceed the taxpayer's tax for the taxable year, the excess shall be\ntreated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon. For\neach year this credit is allowed, on or before October fifteenth of such\nyear, or as soon thereafter as is practicable, the commissioner shall\ndetermine the taxpayer's eligibility for this credit utilizing the\ninformation available to the commissioner on the taxpayer's personal\nincome tax return filed for the taxable year two years prior to the\ntaxable year in which the credit is allowed. For those taxpayers whom\nthe commissioner has determined eligible for this credit, the\ncommissioner shall advance a payment in the amount specified in\nparagraph three of this subsection, which payment shall be issued, to\nthe greatest extent practicable, by October thirty-first of each year\nthe credit is allowed. A taxpayer who has failed to receive an advance\npayment that he or she believes was due to him or her, or who has\nreceived an advance payment that he or she believes is less than the\namount that was due to him or her, may request payment of the claimed\ndeficiency in a manner prescribed by the commissioner.\n (6) A taxpayer shall not be eligible for the credit allowed under this\nsubsection if the school district taxes levied upon the residence during\nthe taxable year remain unpaid sixty days after the last date on which\nthey could have been paid without interest, or in the case of a school\ndistrict where such taxes are payable in installments, if such taxes\nremain unpaid sixty days after the last date on which the final\ninstallment could have been paid without interest. If the taxes remain\nunpaid on such sixtieth day, the amount of credit claimed by the\ntaxpayer under this subsection or the amount of advance payment of\ncredit received by the taxpayer pursuant to paragraph five of this\nsubsection shall be added back as tax on the income tax return for the\ntaxable year in which such sixtieth day occurs.\n (7) Only one credit per residence shall be allowed per taxable year\nunder this subsection. When two or more members of a residence are able\nto meet the qualifications for a qualified taxpayer, the credit shall be\nequally divided between or among such individuals. In the case of\nspouses who file a joint federal return but who are required to\ndetermine their New York taxes separately, the credit allowed pursuant\nto this subsection may be applied against the tax of either or divided\nbetween them as they may elect.\n (n-2) Credit for farm donations to food pantries. (1) General. In the\ncase of a taxpayer who is an eligible farmer, there shall be allowed a\ncredit, to be computed as hereinafter provided, against the tax imposed\nby this article for taxable years beginning on and after January first,\ntwo thousand eighteen. The amount of the credit shall be twenty-five\npercent of the fair market value of the taxpayer's qualified donations\nmade to any eligible food pantry during the taxable year, not to exceed\nfive thousand dollars per taxable year. If the taxpayer is a partner in\na partnership or a shareholder of a New York S corporation, then the cap\nimposed by the preceding sentence shall be applied at the entity level,\nso that the aggregate credit allowed to all partners or shareholders of\nsuch entity in the taxable year does not exceed five thousand dollars.\n (2) Eligible farmer. For purposes of this subsection, the term\n"eligible farmer" means a taxpayer whose federal gross income from\nfarming for the taxable year is at least two-thirds of excess federal\ngross income. Excess federal gross income means the amount of federal\ngross income from all sources for the taxable year reduced by the sum\n(not to exceed thirty thousand dollars) of those items included in\nfederal gross income that consist of: (i) earned income, (ii) pension\npayments, including social security payments, (iii) interest, and (iv)\ndividends. For purposes of this paragraph, the term "earned income"\nshall mean wages, salaries, tips and other employee compensation, and\nthose items of gross income that are includible in the computation of\nnet earnings from self-employment. For the purposes of this paragraph,\npayments from the state's farmland protection program, administered by\nthe department of agriculture and markets, shall be included as federal\ngross income from farming for otherwise eligible farmers.\n (3) Qualified donation. For purposes of this subsection, the term\n"qualified donation" means a donation of any apparently wholesome food,\nas defined in section 170(e)(3)(C)(vi) of the internal revenue code,\ngrown or produced within this state, by an eligible farmer to an\neligible food pantry.\n (4) Eligible food pantry. For purposes of this subsection, the term\n"eligible food pantry" means any food pantry, food bank, or other\nemergency food program operating within this state that has qualified\nfor tax exemption under section 501(c)(3) of the internal revenue code.\n (5) Determination of fair market value. For purposes of this\nsubsection, to determine the fair market value of apparently wholesome\nfood donated to an eligible food pantry, the standards set forth under\nsection 170(e)(3)(C)(v) of the internal revenue code shall apply.\n (6) Record of donation. To claim a credit under this subsection, a\ntaxpayer must get and keep a receipt from the eligible food pantry\nshowing: (i) the name of the eligible food pantry; (ii) the date and\nlocation of the qualified donation; and (iii) a reasonably detailed\ndescription of the qualified donation. A letter or other written\ncommunication from the eligible food pantry acknowledging receipt of the\ncontribution and containing the information in subparagraphs (i), (ii),\nand (iii) of this paragraph will serve as a receipt.\n (7) Application of credit. A taxpayer shall be allowed a credit under\nthis subsection against the tax imposed by this article. However, if the\namount of credit allowed under this subsection for any taxable year\nexceeds the taxpayer's tax for such year, the excess will be treated as\nan overpayment of tax to be credited or refunded in accordance with the\nprovisions of section six hundred eighty-six of this article. Provided,\nhowever, the provisions of subsection (c) of section six hundred\neighty-eight of this article notwithstanding, no interest will be paid\nthereon.\n (o) Credit for employment of persons with disabilities. (1) Allowance\nof credit. A taxpayer shall be allowed a credit, to be computed as\nhereinafter provided, against the tax imposed by this article, for\nemploying within the state a qualified employee.\n (2) Qualified employee. A qualified employee is an individual:\n (A) who is certified by the education department, or in the case of an\nindividual who is blind or visually handicapped, by the state agency\nresponsible for provision of vocation rehabilitation services to the\nblind and visually handicapped: (i) as a person with a disability which\nconstitutes or results in a substantial handicap to employment and (ii)\nas having completed or as receiving services under an individualized\nwritten rehabilitation plan approved by the education department or\nother state agency responsible for providing vocational rehabilitation\nservices to such individual; and\n (B) who has worked on a full-time basis for the employer who is\nclaiming the credit for at least one hundred eighty days or four hundred\nhours.\n (3) Amount of credit. Except as provided in paragraph four of this\nsubsection, the amount of credit for taxable years beginning before\nJanuary first, two thousand twenty-five shall be thirty-five percent of\nthe first six thousand dollars in qualified first-year wages earned by\neach qualified employee and for taxable years beginning on or after\nJanuary first, two thousand twenty-five shall be the first five thousand\ndollars in qualified first-year wages earned by each qualified employee.\n"Qualified first-year wages" means wages paid or incurred by the\ntaxpayer during the taxable year to qualified employees which are\nattributable, with respect to any such employee, to services rendered\nduring the one-year period beginning with the day the employee begins\nwork for the taxpayer.\n (4) Credit where federal work opportunity tax credit applies. With\nrespect to any qualified employee whose qualified first-year wages under\nparagraph three of this subsection also constitute qualified first-year\nwages for purposes of the work opportunity tax credit for vocational\nrehabilitation referrals under section fifty-one of the internal revenue\ncode, the amount of credit under this subsection shall be for taxable\nyears beginning before January first, two thousand twenty-five\nthirty-five percent of the first six thousand dollars in qualified\nsecond-year wages earned by each such employee and for taxable years\nbeginning on or after January first, two thousand twenty-five shall be\nthe first five thousand dollars in qualified second-year wages earned by\neach qualified employee. "Qualified second-year wages" means wages paid\nor incurred by the taxpayer during the taxable year to qualified\nemployees which are attributable, with respect to any such employee, to\nservices rendered during the one-year period beginning one year after\nthe employee begins work for the taxpayer.\n (5) Carryover. If the amount of credit allowable under this subsection\nfor any taxable year shall exceed the taxpayer's tax for such year, the\nexcess may be carried over to the following year or years, and may be\ndeducted from the taxpayer's tax for such year or years.\n (6) Coordination with federal work opportunity tax credit. The\nprovisions of sections fifty-one and fifty-two of the internal revenue\ncode, as such sections applied on October first, nineteen hundred\nninety-six, that apply to the work opportunity tax credit for vocational\nrehabilitation referrals shall apply to the credit under this subsection\nto the extent that such sections are consistent with the specific\nprovisions of this subsection, provided that in the event of a conflict\nthe provisions of this subsection shall control.\n (p) Alternative fuels and electric vehicle recharging property credit.\n(1) General. A taxpayer shall be allowed a credit, to be computed as\nhereinafter provided, against the tax imposed by this article, for\nalternative fuel vehicle refueling and electric vehicle recharging\nproperty placed in service during the taxable year.\n (2) (a) Alternative fuel vehicle refueling property and electric\nvehicle recharging property. The credit under this subsection for\nalternative fuel vehicle refueling property or electric vehicle\nrecharging property shall equal for each installation of property the\nlesser of five thousand dollars or the product of fifty percent and the\ncost of any such property less any costs paid from the proceeds of\ngrants.\n (b) To qualify for the credit, the property must:\n (i) be located in this state;\n (ii) constitute alternative fuel vehicle refueling property or\nelectric vehicle recharging property; and\n (iii) not be paid for from the proceeds of grants awarded before\nJanuary first, two thousand fifteen, including grants from the New York\nstate energy research and development authority or the New York power\nauthority.\n (3) Definitions. (A) The term "alternative fuel vehicle refueling\nproperty" means all of the equipment needed to dispense any fuel at\nleast eighty-five percent of the volume of which consists of one or more\nof the following: natural gas, liquified natural gas, liquified\npetroleum, or hydrogen; and\n (B) The term "electric vehicle recharging property" means all the\nequipment needed to convey electric power from the electric grid or\nanother power source to an onboard vehicle energy storage system.\n (4) Carryovers. If the amount of credit allowable under this\nsubsection shall exceed the taxpayer's tax for such year, the excess may\nbe carried over to the following year or years and may be deducted from\nthe taxpayer's tax for such year or years.\n (5) Credit recapture. (A) If, at any time before the end of its\nrecovery period, alternative fuel vehicle refueling property or electric\nvehicle recharging property ceases to be qualified, a recapture amount\nmust be added back in the tax year in which such cessation occurs.\n (B) Cessation of qualification. Alternative fuel vehicle refueling\nproperty or electric vehicle recharging property ceases to be qualified\nif:\n (i) the property no longer qualifies as alternative fuel vehicle\nrefueling property or electric vehicle recharging property, or\n (ii) fifty percent or more of the use of the property in a taxable\nyear is other than in a trade or business in this state, or\n (iii) the taxpayer receiving the credit under this subsection sells or\ndisposes of the property and knows or has reason to know that the\nproperty will be used in a manner described in clause (i) or (ii) of\nthis subparagraph.\n (C) Recapture amount. The recapture amount is equal to the credit\nallowable under this subsection multiplied by a fraction, the numerator\nof which is the total recovery period for the property minus the number\nof recovery years prior to, but not including, the recapture year, and\nthe denominator of which is the total recovery period.\n (6) Termination. The credit allowed by this subsection shall not apply\nin taxable years beginning after December thirty-first, two thousand\ntwenty-eight.\n (q) Qualified emerging technology company employment credit. (1) A\ntaxpayer shall be allowed a credit, to be computed as hereinafter\nprovided, against the tax imposed by this article, provided:\n (A) the taxpayer is a sole proprietor of a qualified emerging\ntechnology company, a member of a partnership which is a qualified\nemerging technology company, or a shareholder of a New York S\ncorporation which is a qualified emerging technology company, as defined\nin section thirty-one hundred two-e of the public authorities law; and\n (B) the average number of individuals employed full-time by such\ncompany in New York state during the taxable year is at least one\nhundred one percent of such company's base year employment. For the\npurposes of this subsection, "base year employment" means the average\nnumber of individuals employed full-time by such company in the state\nduring the three taxable years immediately preceding the first taxable\nyear in which the credit is claimed. Where such company provided\nfull-time employment within the state during only a portion of such\nthree-year period, then for purposes of this subsection, the term "three\nyears" shall be deemed to refer instead to such portion, provided,\nhowever, the first taxable year for which this credit may be taken with\nrespect to such company shall be the next year following the first full\ntaxable year that such company had full-time employment in New York\nstate.\n (2) The credit shall be allowed only in the first taxable year in\nwhich the credit is claimed and in each of the next two taxable years,\nprovided that the conditions of paragraph one of this subsection are\nsatisfied in each taxable year.\n (3) For the purposes of this subsection, average number of individuals\nemployed full-time shall be computed by adding the number of such\nindividuals employed by such company at the end of each quarter during\neach taxable year or other applicable period and dividing the sum so\nobtained by the number of such quarters occurring within such taxable\nyear or other applicable period; provided, however, that in computing\nbase year employment there shall be excluded therefrom any employee with\nrespect to whom a credit provided for under subsection (k) of this\nsection is claimed for the taxable year.\n (4) The amount of the credit shall equal the product of one thousand\ndollars multiplied by the number of individuals employed full-time by\nsuch company in the taxable year that are in excess of one hundred\npercent of such company's base year employment.\n (5) If the amount of credit allowed under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, the excess\nshall be treated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon.\n (r) Qualified emerging technology company capital tax credit. (1) A\ntaxpayer shall be allowed a credit against the tax imposed by this\narticle. The amount of the credit shall be equal to one of the following\npercentages, per each qualified investment in a qualified emerging\ntechnology company as defined in section thirty-one hundred two-e of the\npublic authorities law, made during the taxable year, and certified by\nthe commissioner, either:\n (A) ten percent of qualified investments in qualified emerging\ntechnology companies, except for investments made by or on behalf of an\nowner of the business, including, but not limited to, a stockholder,\npartner or sole proprietor, or any related person, as defined in\nsubparagraph (C) of paragraph three of subsection (b) of section four\nhundred sixty-five of the internal revenue code, and provided, however,\nthat the taxpayer certifies to the commissioner that the qualified\ninvestment will not be sold, transferred, traded, or disposed of during\nthe four years following the year in which the credit is first claimed;\nor\n (B) twenty percent of qualified investments in qualified emerging\ntechnology companies, except for investments made by or on behalf of an\nowner of the business, including, but not limited to, a stockholder,\npartner or sole proprietor, or any related person, as defined in\nsubparagraph (C) of paragraph three of subsection (b) of section four\nhundred sixty-five of the internal revenue code, and provided, however,\nthat the taxpayer certifies to the commissioner that the qualified\ninvestment will not be sold, transferred, traded, or disposed of during\nthe nine years following the year in which the credit is first claimed.\n (C) "Qualified investment" means the contribution of property to a\ncorporation in exchange for original issue capital stock or other\nownership interest, the contribution of property to a partnership in\nexchange for an interest in the partnership, and similar contributions\nin the case of a business entity not in corporate or partnership form in\nexchange for an ownership interest in such entity. The total amount of\ncredit allowable to a taxpayer under this provision for all years, taken\nin the aggregate, shall not exceed one hundred fifty thousand dollars in\nthe case of investments made pursuant to subparagraph (A) of this\nparagraph and shall not exceed three hundred thousand dollars in the\ncase of investments made pursuant to subparagraph (B) of this paragraph.\n (2) (A) If the amount of the credit and carryovers of such credit\nallowed under this subsection for any taxable year shall exceed the\ntaxpayer's tax for such year, any amount of credit or carryovers of such\ncredit thus not deductible in such taxable year may be carried over to\nthe following year or years and may be deducted from the tax for such\nyear or years. In addition, the amount of such credit, and carryovers of\nsuch credit to the taxable year, deducted from the tax otherwise due may\nnot, in the aggregate, exceed fifty percent of the tax imposed under\nsection six hundred one computed without regard to any credit provided\nfor by this section.\n (B) In the case of a husband or wife who is required to file a\nseparate return, the limitations provided for in subparagraph (c) of\nparagraph one of this subsection shall be seventy-five thousand dollars\nin lieu of one hundred fifty thousand dollars, and one hundred fifty\nthousand dollars in lieu of three hundred thousand dollars, unless the\nspouse of the taxpayer has no credit allowable under this subsection for\nthe taxable year of such spouse which ends within or with the taxpayer's\ntaxable year.\n (C) In the case of an estate or trust, the limitations provided for in\nparagraph one of this subsection shall be reduced to an amount which\nbears the same ratio to one hundred fifty thousand dollars and an amount\nwhich bears the same ratio to three hundred thousand dollars as the\nportion of the income of the estate or trust which is not allocated to\nbeneficiaries bears to the total income of the estate or trust.\n (3) (A) Where a taxpayer sells, transfers or otherwise disposes of\ncorporate stock, a partnership interest or other ownership interest\narising from the making of a qualified investment which was the basis,\nin whole or in part, for the allowance of the credit provided for under\nsubparagraph (A) of paragraph one of this subsection, or where an\ninvestment which was the basis for such allowance is, in whole or in\npart, recovered by such taxpayer, and such disposition or recovery\noccurs during the taxable year or within forty-eight months from the\nclose of the taxable year with respect to which such credit is allowed,\nthe taxpayer shall add back, with respect to the taxable year in which\nthe disposition or recovery described above occurred, the required\nportion of the credit originally allowed.\n (B) Where a taxpayer sells, transfers or otherwise disposes of\ncorporate stock, a partnership interest or other ownership interest\narising from the making of a qualified investment which was the basis,\nin whole or in part, for the allowance of the credit provided for under\nsubparagraph (B) of paragraph one of this subsection, or where an\ninvestment which was the basis for such allowance is in any manner, in\nwhole or in part, recovered by such taxpayer, and such disposition or\nrecovery occurs during the taxable year or within one hundred eight\nmonths from the close of the taxable year with respect to which such\ncredit is allowed, the taxpayer shall add back, with respect to the\ntaxable year in which the disposition or recovery described in\nsubparagraph one of this paragraph occurred the required portion of the\ncredit originally allowed.\n (C) The required portion of the credit originally allowed shall be the\nproduct of (i) the portion of such credit attributable to the property\ndisposed of and (ii) the applicable percentage.\n (D) The applicable percentage shall be:\n (i) for credits allowed pursuant to subparagraph (A) of paragraph one\nof this subsection:\n (I) one hundred percent, if the disposition or recovery occurs within\nthe taxable year with respect to which the credit is allowed or within\ntwelve months of the end of such taxable year,\n (II) seventy-five percent, if the disposition or recovery occurs more\nthan twelve but not more than twenty-four months after the end of the\ntaxable year with respect to which the credit is allowed,\n (III) fifty percent, if the disposition or recovery occurs more than\ntwenty-four months but not more than thirty-six months after the end of\nthe taxable year with respect to which the credit is allowed, or\n (IV) twenty-five percent, if the disposition or recovery occurs more\nthan thirty-six months but not more than forty-eight months after the\nend of the taxable year with respect to which the credit is allowed; or\n (ii) for credits allowed pursuant to subparagraph (B) of paragraph one\nof this subsection:\n (I) one hundred percent, if the disposition or recovery occurs within\nthe taxable year with respect to which the credit is allowed or within\ntwelve months of the end of such taxable year,\n (II) eighty percent, if the disposition or recovery occurs more than\ntwelve but not more than forty-eight months after the end of the taxable\nyear with respect to which the credit is allowed,\n (III) sixty percent, if the disposition or recovery occurs more than\nforty-eight months but not more than seventy-two months after the end of\nthe taxable year with respect to which the credit is allowed,\n (IV) forty percent, if the disposition or recovery occurs more than\nseventy-two months but not more than ninety-six months after the end of\nthe taxable year with respect to which the credit is allowed, or\n (V) twenty percent, if the disposition or recovery occurs more than\nninety-six months but not more than one hundred eight months after the\nend of the taxable year with respect to which the credit is allowed.\n (s) Credit for purchase of an automated external defibrillator. A\ntaxpayer shall be allowed a credit as hereinafter provided, against the\ntax imposed by this article for the purchase, other than for resale, of\nan automated external defibrillator, as such term is defined in section\nthree thousand-b of the public health law. The amount of credit shall be\nthe cost to the taxpayer of automated external defibrillators purchased\nduring the taxable year, such credit not to exceed five hundred dollars\nwith respect to each unit purchased.\n (t) College tuition credit. (1) General. A resident taxpayer shall be\nallowed the option of claiming a credit, to be computed as provided in\nparagraph four of this subsection, against the tax imposed by this\narticle, or an itemized deduction, to be computed as provided in\nparagraph four of subsection (d) of section six hundred fifteen of this\narticle, for allowable college tuition expenses.\n (2) Allowable and qualified college tuition expenses. For the purposes\nof this credit and the itemized deduction provided by paragraph four of\nsubsection (d) of section six hundred fifteen of this article:\n (A) The term "allowable college tuition expenses" shall mean the\namount of qualified college tuition expenses of eligible students paid\nby the taxpayer during the taxable year, limited to ten thousand dollars\nfor each such student;\n (B) The term "eligible student" shall mean the taxpayer, the\ntaxpayer's spouse, and any dependent of the taxpayer with respect to\nwhom the taxpayer is allowed an exemption under section six hundred\nsixteen of this article for the taxable year;\n (C) The term "qualified college tuition expenses" shall mean the\ntuition required for the enrollment or attendance of an eligible student\nat an institution of higher education. Provided, however, tuition\npayments made pursuant to the receipt of any scholarships or financial\naid, or tuition required for enrollment or attendance in a course of\nstudy leading to the granting of a post baccalaureate or other graduate\ndegree, shall be excluded from the definition of "qualified college\ntuition expenses".\n (D) Expenses paid by dependent. If an exemption under section six\nhundred sixteen of this article with respect to an individual is allowed\nto another taxpayer for a taxable year beginning in the calendar year in\nwhich such individual's taxable year begins,\n (i) no credit under this subsection or deduction under paragraph four\nof subsection (d) of section six hundred fifteen of this article shall\nbe allowed to such individual for such individual's taxable year, and\n (ii) for purposes of such credit or deduction, qualified college\ntuition expenses paid by such individual during such individual's\ntaxable year shall be treated as paid by such other taxpayer.\n (3) Institution of higher education. For the purposes of this credit\nand the itemized deduction provided by paragraph four of subdivision (d)\nof section six hundred fifteen of this article, the term "institution of\nhigher education" shall mean any institution of higher education or\nbusiness, trade, technical or other occupational school, recognized and\napproved by the regents, or any successor organization, of the\nuniversity of the state of New York or accredited by a nationally\nrecognized accrediting agency or association accepted as such by the\nregents, or any successor organization, of the university of the state\nof New York, which provides a course of study leading to the granting of\na post-secondary degree, certificate or diploma.\n (4) Amount of credit. If allowable college tuition expenses are less\nthan five thousand dollars, the amount of the credit provided under this\nsubsection shall be equal to the applicable percentage of the lesser of\nallowable college tuition expenses or two hundred dollars. If allowable\ncollege tuition expenses are five thousand dollars or more, the amount\nof the credit provided under this subsection shall be equal to the\napplicable percentage of the allowable college tuition expenses\nmultiplied by four percent. Such applicable percentage shall be\ntwenty-five percent for taxable years beginning in two thousand one,\nfifty percent for taxable years beginning in two thousand two,\nseventy-five percent for taxable years beginning in two thousand three\nand one hundred percent for taxable years beginning after two thousand\nthree.\n (5) Refundability. The credit under this subsection shall be allowed\nagainst the taxes imposed by this article for the taxable year reduced\nby the credits permitted by this article. If the credit exceeds the tax\nas so reduced, the taxpayer may receive, and the comptroller, subject to\na certificate of the commissioner, shall pay as an overpayment, without\ninterest, the amount of such excess.\n (6) Limitation. No credit shall be allowed under this subsection to a\ntaxpayer who claims the itemized deduction provided under paragraph four\nof subdivision (d) of section six hundred fifteen of this article.\n * (t-1) IMB credit for energy taxes. (1) Allowance of credit. A\ntaxpayer which is a sole proprietor of an industrial or manufacturing\nbusiness (IMB), or a member of a partnership which is an IMB, shall be\nallowed a credit for energy taxes, to be computed as provided in section\nfourteen-a of this chapter, against the tax imposed by this article.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year shall exceed the taxpayer's tax for\nsuch year, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nshall be paid thereon.\n * NB Expired for taxable years ending on and after January 1, 2007\n ** (u) Musical and theatrical production credit. (1) Allowance of\ncredit. A taxpayer who is eligible pursuant to section twenty-four-a of\nthis chapter shall be allowed a credit to be computed as provided in\nsuch section against the tax imposed by this article.\n (2) Application of credit. If the amount of the credit allowable under\nthis subsection for any taxable year exceeds the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded as provided in section six hundred eighty-six of\nthis article, provided, however, that no interest shall be paid thereon.\n ** NB Repealed January 1, 2030\n * (v) Television writers' and directors' fees and salaries credit. (1)\nAllowance of credit. A taxpayer who is eligible pursuant to section\ntwenty-four-b of this chapter shall be allowed a credit to be computed\nas provided in such section against the tax imposed by this article.\n (2) Application of credit. If the amount of the credit allowable under\nthis subsection for any taxable year exceeds the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded as provided in section six hundred eighty-six of\nthis article, provided, however, that no interest shall be paid thereon.\n * NB Effective on the first of January next succeeding the date the\ndepartment of economic development provides notice to the legislative\nbill drafting commission of a determination pursuant to § 6 sb 2 (b) of\nchapter 683 of 2019\n (x) Low-income housing credit. (1) Allowance of credit. A taxpayer\nshall be allowed a credit against the tax imposed by this article with\nrespect to the ownership of eligible low-income buildings, computed as\nprovided in section eighteen of this chapter.\n (2) Application of credit. If the amount of credit allowable under\nthis subsection for any taxable year shall exceed the taxpayer's tax for\nsuch year, the excess may be carried over to the following year or\nyears, and may be deducted from the taxpayer's tax for such year or\nyears.\n (3) Credit recapture. For provisions requiring recapture of credit,\nsee subdivision (b) of section eighteen of this chapter.\n (y) Green building credit. (1) Allowance of credit. A taxpayer shall\nbe allowed a credit, to be computed as provided in section nineteen of\nthis chapter, against the tax imposed by this article.\n (2) Carryovers. If the amount of the credit and carryovers of such\ncredit allowed under this subsection for any taxable year shall exceed\nthe taxpayer's tax for such year, the excess, as well as any part of the\ncredit or carryovers of such credit, or both, may be carried over to the\nfollowing year or years and may be deducted from the taxpayer's tax for\nsuch year or years.\n (z) Credit for transportation improvement contributions. (1) Allowance\nof credit. A taxpayer shall be allowed a credit, to be computed as\nprovided in section twenty of this chapter, against the tax imposed by\nthis article.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year shall exceed the taxpayer's tax for\nsuch year, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nshall be paid thereon.\n (3) Credit recapture. For provisions requiring recapture of credit,\nsee subdivision (c) of section twenty of this chapter.\n (aa) Long-term care insurance credit. (1) Residents. There shall be\nallowed a credit against the tax imposed by this article in an amount\nequal to twenty percent of the premiums paid during the taxable year for\nlong-term care insurance. The credit amount shall not exceed one\nthousand five hundred dollars and shall be allowed only if the amount of\nNew York adjusted gross income required to be reported on the return is\nless than two hundred fifty thousand dollars. In order to qualify for\nsuch credit, the taxpayer's premium payment must be for the purchase of\nor for continuing coverage under a long-term care insurance policy that\nqualifies for such credit pursuant to section one thousand one hundred\nseventeen of the insurance law. If the amount of the credit allowable\nunder this subsection for any taxable year shall exceed the taxpayer's\ntax for such year, the excess may be carried over to the following year\nor years and may be deducted from the taxpayer's tax for such year or\nyears.\n (2) Nonresidents and part-year residents. In the case of a nonresident\ntaxpayer or a part-year resident taxpayer, the credit determined under\nthis subsection shall be limited to the amount determined by multiplying\nthe amount of such credit by the New York source fraction as set forth\nin paragraph three of subsection (e) of section six hundred one of this\narticle. The credit as so limited shall be applied as provided in\nparagraph one of this subsection.\n (bb) QEZE credit for real property taxes. (1) Allowance of credit. A\ntaxpayer which is a sole proprietor of a qualified empire zone\nenterprise (QEZE), or a member of a partnership which is a QEZE, shall\nbe allowed a credit for eligible real property taxes, to be computed as\nprovided in section fifteen of this chapter, against the tax imposed by\nthis article.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year shall exceed the taxpayer's tax for\nsuch year, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nshall be paid thereon.\n (cc) QEZE tax reduction credit. Allowance of credit. A taxpayer which\nis a sole proprietor of a qualified empire zone enterprise (QEZE), or a\nmember of a partnership which is a QEZE, shall be allowed a QEZE tax\nreduction credit against the tax imposed by subsections (a) through (e)\nof section six hundred one of this part.\n (dd) Brownfield redevelopment tax credit. (1) Allowance of credit. A\ntaxpayer shall be allowed a credit, to be computed as provided in\nsection twenty-one of this chapter, against the tax imposed by this\narticle.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year shall exceed the taxpayer's tax for\nsuch year, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nshall be paid thereon.\n (ee) Remediated brownfield credit for real property taxes for\nqualified sites. (1) Allowance of credit. A taxpayer which is a\ndeveloper of a qualified site shall be allowed a credit for eligible\nreal property taxes, to be computed as provided in subdivision (b) of\nsection twenty-two of this chapter, against the tax imposed by this\narticle. For purposes of this subsection, the terms "qualified site" and\n"developer" shall have the same meaning as set forth in paragraphs two\nand three, respectively, of subdivision (a) of section twenty-two of\nthis chapter.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year shall exceed the taxpayer's tax for\nsuch year, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nshall be paid thereon.\n (ff) Environmental remediation insurance credit. (1) Allowance of\ncredit. A taxpayer shall be allowed a credit, to be computed as provided\nin section twenty-three of this chapter, against the tax imposed by this\narticle.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year shall exceed the taxpayer's tax for\nsuch year, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nshall be paid thereon.\n (gg) Empire state film production credit. (1) Allowance of credit. A\ntaxpayer who is eligible pursuant to section twenty-four of this chapter\nshall be allowed a credit to be computed as provided in such section\ntwenty-four against the tax imposed by this article.\n (2) Application of credit. If the amount of the credit allowable under\nthis subsection for any taxable year exceeds the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded as provided in section six hundred eighty-six of\nthis article, provided, however, that no interest shall be paid thereon.\n (gg-1) Empire state independent film production credit. (1) Allowance\nof credit. A taxpayer who is eligible pursuant to section twenty-four-d\nof this chapter shall be allowed a credit to be computed as provided in\nsuch section twenty-four-d against the tax imposed by this article.\n (2) Application of credit. If the amount of the credit allowable under\nthis subsection for any taxable year exceeds the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded as provided in section six hundred eighty-six of\nthis article, provided, however, that no interest shall be paid thereon.\n (hh) Nursing home assessment credit. (1) Allowance of credit. A\ntaxpayer shall be allowed a credit against the tax imposed by this\narticle equal to the amount that directly relates to the assessment\nimposed on a residential health care facility pursuant to paragraph (b)\nof subdivision two of section twenty-eight hundred seven-d of the public\nhealth law which is separately stated and accounted for on the billing\nstatement of a resident of a residential health care facility and is\npaid directly by the individual taxpayer.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year shall exceed the taxpayer's tax for\nsuch year, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nshall be paid thereon.\n (ii) Security training tax credit. (1) Allowance of credit. A taxpayer\nshall be allowed a credit, to be computed as provided in section\ntwenty-six of this chapter, against the tax imposed by this article.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year shall exceed the taxpayer's tax for\nsuch year, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nshall be paid thereon.\n * (jj) Empire state commercial production credit. (1) Allowance of\ncredit. A taxpayer that is eligible pursuant to the provisions of\nsection twenty-eight of this chapter shall be allowed a credit to be\ncomputed as provided in such section against the tax imposed by this\narticle. The tax credit allowed pursuant to this section shall apply to\ntaxable years beginning before January first, two thousand twenty-nine.\n (2) Application of credit. If the amount of the credit allowable under\nthis subsection for any taxable year exceeds the taxpayer's tax for such\nyear, fifty percent of the excess shall be treated as an overpayment of\ntax to be credited or refunded as provided in section six hundred\neighty-six of this article, provided, however, that no interests shall\nbe paid thereon. The balance of such credit not credited or refunded in\nsuch taxable year may be carried over to the immediately succeeding\ntaxable year and may be deducted from the taxpayer's tax for such year.\nThe excess, if any, of the amount of the credit over the tax for such\nsucceeding year shall be treated as an overpayment of tax to be credited\nor refunded as provided in section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon.\n * NB There are 2 sb (jj)'s\n * (jj) Biofuel production credit. A taxpayer shall be allowed a credit\nto be computed as provided in section twenty-eight of this chapter, as\nadded by part X of chapter sixty-two of the laws of two thousand six,\nagainst the tax imposed by this article. If the amount of the credit\nallowed under this subsection for any taxable year shall exceed the\ntaxpayer's tax for such year, the excess shall be treated as an\noverpayment of tax to be credited or refunded in accordance with the\nprovisions of section six hundred eighty-six of this article, provided,\nhowever, that no interest shall be paid thereon. The tax credit allowed\npursuant to this section shall apply to taxable years beginning before\nJanuary first, two thousand twenty.\n * NB There are 2 sb (jj)'s\n (kk) Conservation easement tax credit. (1) Credit allowed. In the case\nof a taxpayer who owns land that is subject to a conservation easement\nheld by a public or private conservation agency, there shall be allowed\na credit for twenty-five percent of the allowable school district,\ncounty and town real property taxes on such land. In no event shall the\ncredit allowed under this subsection in combination with any other\ncredit for such school district, county and town real property taxes\nunder this section exceed such taxes.\n (2) Conservation easement. For purposes of this subsection, the term\n"conservation easement" means a perpetual and permanent conservation\neasement as defined in article forty-nine of the environmental\nconservation law that serves to protect open space, scenic, natural\nresources, biodiversity, agricultural, watershed and/or historic\npreservation resources. Any conservation easement for which a tax credit\nis claimed under this subsection shall be filed with the department of\nenvironmental conservation, as provided for in article forty-nine of the\nenvironmental conservation law and such conservation easement shall\ncomply with the provisions of title three of such article, and the\nprovisions of subdivision (h) of section 170 of the internal revenue\ncode. Dedications of land for open space through the execution of\nconservation easements for the purpose of fulfilling density\nrequirements to obtain subdivision or building permits shall not be\nconsidered a conservation easement under this subsection.\n (3) Land. For purposes of this subsection, the term "land" means a fee\nsimple title to real property located in this state, with or without\nimprovements thereon; rights of way; water and riparian rights;\neasements; privileges and all other rights or interests of any land or\ndescription in, relating to or connected with real property, excluding\nbuildings, structures, or improvements.\n (4) Public or private conservation agency. For purposes of this\nsubsection, the term "public or private conservation agency" means any\nstate, local, or federal governmental body; or any private\nnot-for-profit charitable corporation or trust which is authorized to do\nbusiness in the state of New York, is organized and operated to protect\nland for natural resources, conservation or historic preservation\npurposes, is exempt from federal income taxation under section 501(c)(3)\nof the internal revenue code, and has the power to acquire, hold and\nmaintain land and/or interests in land for such purposes.\n (5) Credit limitation. The amount of the credit that may be claimed by\na taxpayer pursuant to this subsection shall not exceed five thousand\ndollars in any given year.\n (6) Application of the credit. If the amount of the credit under this\nsubsection for any taxable year shall exceed the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nshall be paid therein.\n (ll) Home heating system credit. (1) Allowance of credit for\nreplacement. A taxpayer shall be allowed a credit against the tax\nimposed by this article for costs incurred on or after July first, two\nthousand six and before July first, two thousand seven by a taxpayer\nwhich are directly associated with the replacement of an existing home\nheating system, in his or her principal residence, if such residence is\nlocated in this state, provided such home heating system after such\nreplacement qualifies for, and is labeled with, an Energy Star label by\nthe manufacturer, pursuant to an agreement among the manufacturer, the\nUnited States environmental protection agency and the United States\ndepartment of energy. The amount of the credit shall be equal to fifty\npercent of the cost of such replacement but such credit shall not exceed\nfive hundred dollars.\n (2) Multiple taxpayers. If the principal residence is shared by two or\nmore taxpayers, the amount of the credit allowable under this subsection\nfor each such eligible taxpayer shall be prorated according to the\npercentage of the total expenditure for such replacement incurred by\neach taxpayer.\n (3) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year shall exceed the taxpayer's tax for\nsuch year, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nshall be paid thereon.\n (mm) Clean heating fuel credit. (1) A taxpayer shall be allowed a\ncredit against the tax imposed by this article. Such credit, to be\ncomputed as hereinafter provided, shall be allowed for bioheating fuel,\nused for space heating or hot water production for residential purposes\nwithin this state and purchased on or after July first, two thousand six\nand before July first, two thousand seven and on or after January first,\ntwo thousand eight and before January first, two thousand twenty-nine.\nSuch credit shall be $0.01 per percent of biodiesel per gallon of\nbioheating fuel, not to exceed twenty cents per gallon, purchased by\nsuch taxpayer. Provided, however, that on or after January first, two\nthousand seventeen, this credit shall not apply to bioheating fuel that\nis less than six percent biodiesel per gallon of bioheating fuel.\n (2) For purposes of this subsection, the following definitions shall\napply:\n (a) "Biodiesel" shall mean a fuel comprised exclusively of mono-alkyl\nesters of long chain fatty acids derived from vegetable oils or animal\nfats, designated B100, which meets the specifications of American\nSociety of Testing and Materials designation D 6751.\n (b) "Bioheating fuel" shall mean a fuel comprised of biodiesel or\nrenewable hydrocarbon diesel blended with conventional home heating oil,\nwhich meets the specifications of the American Society of Testing and\nMaterials designation D 396 or D 975.\n (3) If the amount of the credit allowed under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, the excess\nshall be treated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon.\n (nn) Qualified emerging technology company facilities, operations and\ntraining credit. (1) A taxpayer that is a qualified emerging technology\ncompany pursuant to the provisions of section thirty-one hundred two-e\n(and specifically for the activities referenced in paragraph (b) of\nsubdivision one of such section thirty-one hundred two-e) of the public\nauthorities law, and that meets the eligibility requirements in\nparagraph two of this subsection, shall be allowed a credit against the\ntax imposed by this article. The amount of credit shall be equal to the\nsum (or pro rata share of the sum in the case of a partnership) of the\namounts specified in paragraphs three, four, and five of this\nsubsection, subject to the limitations in paragraph six of this\nsubsection.\n (2) An eligible taxpayer shall (i) have no more than one hundred\nfull-time employees, of which at least seventy-five percent are employed\nin New York state,\n (ii) have a ratio of research and development funds to net sales, as\nreferred to in section thirty-one hundred two-e of the public\nauthorities law, which equals or exceeds six percent during its taxable\nyear, and\n (iii) have gross revenues, along with the gross revenues of its\naffiliates and related members, not exceeding twenty million dollars for\nthe taxable year immediately preceding the year the taxpayer is allowed\na credit under this subsection. For purposes of this paragraph, the term\n"related member" shall have the same meaning as set forth in clauses (A)\nand (B) of subparagraph one of paragraph (o) of subdivision 9 of section\ntwo hundred eight of this chapter, and the term "affiliates" shall mean\nthose corporations that are members of the same affiliated group (as\ndefined in section fifteen hundred four of the internal revenue code) as\nthe taxpayer.\n (3) An eligible taxpayer shall be allowed a credit for eighteen per\ncentum of the cost or other basis for federal income tax purposes of\nresearch and development property as defined in subparagraph (B) of\nparagraph two of subsection (a) of this section that is acquired by the\ntaxpayer by purchase as defined in section 179(d) of the internal\nrevenue code and is placed in service during the taxable year. Provided,\nhowever, for the purposes of this paragraph only, an eligible taxpayer\nshall be allowed a credit for such percentage of the (i) cost or other\nbasis for federal income purposes for property used in the testing or\ninspection of materials and products,\n (ii) the costs or expenses associated with quality control of the\nresearch and development,\n (iii) fees for use of sophisticated technology facilities and\nprocesses, and\n (iv) fees for production or eventual commercial distribution of\nmaterials and products resulting from the activities of an eligible\ntaxpayer as long as such activities fall under the activities listed in\nparagraph (b) of subdivision one of section thirty-one hundred two-e of\nthe public authorities law. The costs, expenses and other amounts for\nwhich a credit is allowed and claimed under this paragraph shall not be\nused in the calculation of any other credit allowed under this article.\n (4) An eligible taxpayer shall be allowed a credit for nine percentum\nof "qualified research expenses", paid or incurred by the taxpayer in\nthe taxable year. "Qualified research expenses" shall mean expenses\nassociated with in-house research, use of sophisticated technology\nfacilities and processes, and costs associated with the dissemination of\nthe results of the products that directly result from such research and\ndevelopment activities; provided, however, that such costs shall not\ninclude advertising or promotion through media. In addition, costs\nassociated with the preparation of patent applications, patent\napplication filing fees, patent research fees, patent examinations fees,\npatent post allowance fees, patent maintenance fees, and grant\napplication expenses and fees shall be eligible for such credit. In no\ncase shall the credit allowed by this paragraph apply to expenses for\nlitigation or the challenge of another entity's intellectual property\nrights, or for contract expenses involving outside paid consultants.\n (5) An eligible taxpayer shall be allowed a credit for qualified\nhigh-technology training expenditures as described in this paragraph\npaid or incurred by the taxpayer.\n (a) The amount of credit shall be one hundred percent of the training\nexpenses described in subparagraph (c) of this paragraph, subject to a\nlimitation of no more than four thousand dollars per employee per year\nfor such training expenses.\n (b) Qualified high-technology training shall include a course or\ncourses taken and satisfactorily completed by an employee of the\ntaxpayer at an accredited, degree granting post-secondary college or\nuniversity in New York state that\n (i) directly relates to the activities referred to in paragraph (b) of\nsubdivision one of section thirty-one hundred two-e of the public\nauthorities law, and\n (ii) is intended to upgrade, retrain or improve the productivity or\ntheoretical awareness of the employee. Such course or courses may\ninclude, but are not limited to, instruction or research relating to\ntechniques, meta, macro, or micro-theoretical or practical knowledge\nbases or frontiers, or ethical concerns related to such activities. Such\ncourse or courses shall not include classes in the disciplines of\nmanagement, accounting or the law or any class designed to fulfill the\ndiscipline specific requirements of a degree program at the associate,\nbaccalaureate, graduate or professional level of these disciplines.\nSatisfactory completion of a course or courses shall mean the earning\nand granting of credit or equivalent unit, with the attainment of a\ngrade of "B" or higher in a graduate level course or courses, a grade of\n"C" or higher in an undergraduate level course or courses, or a similar\nmeasure of competency for a course that is not measured according to a\nstandard grade formula.\n (c) Qualified high-technology training expenditures shall include\nexpenses for tuition and mandatory fees, and software required by the\ninstitution, fees for textbooks or other literature required by the\ninstitution offering the course or courses, minus applicable\nscholarships and tuition or fee waivers not granted by the taxpayer or\nany affiliate of the taxpayer, paid or reimbursed by the taxpayer.\nQualified high technology expenditures do not include room and board,\ncomputer hardware or software not specifically assigned for such course\nor courses, late-charges, fines or membership dues and similar expenses.\nSuch qualified expenditures shall not be eligible for the credit allowed\nby this subsection unless the employee for whom the expenditures are\ndisbursed is continuously employed by the taxpayer in a full-time,\nfull-year position primarily located at a qualified site during the\nperiod of such coursework and lasting through at least one hundred and\neighty days after the satisfactory completion of the qualifying\ncourse-work. Qualified high-technology training expenditures shall not\ninclude expenses for in house or shared training outside of a New York\nstate higher education institution or the use of consultants outside of\ncredit granting courses whether such consultants function inside of such\nhigher education institution or not.\n (d) If a taxpayer relocates from an academic business incubator\nfacility partnered with an accredited post-secondary education\ninstitution located within New York state, which provides space and\nbusiness support services to taxpayers, to another site, the credit\nprovided in this subsection shall be allowed for all expenditures\nreferenced in subparagraph (c) of this paragraph paid or incurred in the\ntwo preceding taxable years that the taxpayer was located in such an\nincubator facility for employees of the taxpayer who also relocate from\nsaid incubator facility to such New York site and are employed and\nprimarily located by the taxpayer in New York. Such expenditures in the\ntwo preceding years shall be added to the amounts otherwise qualifying\nfor the credit provided by this subsection that were paid or incurred in\nthe taxable year that the taxpayer relocated from such a facility. Such\nexpenditures shall include expenses paid or incurred for an eligible\nemployee who is a full-time, full-year employee of said taxpayer during\nthe taxable year that the taxpayer relocated from an incubator facility\nnotwithstanding (i) that such employee was employed full or part-time as\nan officer, staff-person or paid intern of the taxpayer when such\ntaxpayer was located at such incubator facility or (ii) that such\nemployee was not continuously employed when such taxpayer was located at\nthe incubator facility during the one hundred eighty day period\nreferenced in subparagraph (c) of this paragraph, provided such employee\nreceived wages or equivalent income for at least seven hundred fifty\nhours during any twenty-four month period when the taxpayer was located\nat the incubator facility. Such expenditures shall include payments made\nto such an employee after the taxpayer has relocated from the incubator\nfacility for qualified expenditures if such payments are made to\nreimburse such an employee for qualified expenditures paid by the\nemployee during such two preceding years. The credit provided under this\nsubparagraph shall be allowed, in any year that said taxpayer qualifies\nas an eligible taxpayer.\n (e) For purposes of this subsection the term "academic year" shall\nmean the annual period of sessions of a post-secondary college or\nuniversity.\n (f) For the purposes of this subsection the term "academic incubator\nfacility" shall mean a facility providing low-cost space, technical\nassistance, support services and educational opportunities, including\nbut not limited to central services provided by the manager of the\nfacility to the tenants of the facility, to an entity located in New\nYork state. Such entity's primary activity must be an activity described\nin paragraph (b) of subdivision one of section thirty-one hundred two-e\nof the public authorities law, and such entity must be in the formative\nstage of development. The academic incubator facility and the entity\nmust act in partnership with an accredited post-secondary college or\nuniversity located in New York state. An academic incubator facility's\nmission shall be to promote job creation, entrepreneurship, technology\ntransfer, and provide support services to incubator tenants, including,\nbut not limited to, business planning, management assistance,\nfinancial-packaging, linkages to financing services, and coordinating\nwith other sources of assistance.\n (6) An eligible taxpayer may claim credits under this subsection for\nfour consecutive taxable years, except, if a taxpayer is located in an\nacademic incubator facility and relocates within New York state to a\nnonacademic incubator site, then the taxpayer (i) may make a revocable\nelection to defer the credit provided under this subsection to the first\ntaxable year beginning after the taxpayer relocates from an academic\nincubator facility, and (ii) shall be eligible for such credit for five\nconsecutive years. In no case shall the credit allowed by this\nsubsection to a taxpayer exceed two hundred fifty thousand dollars per\nyear. If the taxpayer is a partner in a partnership or shareholder of a\nNew York S corporation, then the limit imposed by the preceding sentence\nshall be applied at the entity level, so that the aggregate credit\nallowed to all the partners or shareholders of each such entity in the\ntaxable year does not exceed two hundred fifty thousand dollars.\n (7) If the amount of credit allowed under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, the excess\nshall be treated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon.\n (8) The credit allowed under this subsection shall not be applicable\nfor taxable years beginning on or after January first, two thousand\ntwelve.\n (oo) Credit for rehabilitation of historic properties. (1) (A) For\ntaxable years beginning on or after January first, two thousand ten and\nbefore January first, two thousand thirty, a taxpayer, or a transferee\nof such a taxpayer as described in paragraph seven of this subsection,\nshall be allowed a credit as hereinafter provided, against the tax\nimposed by this article, in an amount equal to one hundred percent of\nthe amount of credit allowed the taxpayer with respect to a certified\nhistoric structure, and one hundred fifty percent of the amount of\ncredit allowed the taxpayer with respect to a certified historic\nstructure that is a small project, under internal revenue code section\n47(c)(3), determined without regard to ratably allocating the credit\nover a five year period as required by subsection (a) of such section\n47, with respect to a certified historic structure located within the\nstate. Provided, however, the credit shall not exceed five million\ndollars. For taxable years beginning on or after January first, two\nthousand thirty, a taxpayer, or a transferee of such a taxpayer as\ndescribed in paragraph seven of this subsection, shall be allowed a\ncredit as hereinafter provided, against the tax imposed by this article,\nin an amount equal to thirty percent of the amount of credit allowed the\ntaxpayer with respect to a certified historic structure under internal\nrevenue code section 47(c)(3), determined without regard to ratably\nallocating the credit over a five year period as required by subsection\n(a) of such section 47, with respect to a certified historic structure\nlocated within the state; provided, however, the credit shall not exceed\none hundred thousand dollars.\n (B) If the taxpayer or transferee is a partner in a partnership or a\nshareholder of a New York S corporation, then the credit cap imposed in\nsubparagraph (A) of this paragraph shall be applied at the entity level,\nso that the aggregate credit allowed to all the partners or shareholders\nof each such entity in the taxable year does not exceed the credit cap\nthat is applicable in that taxable year.\n (2) Tax credits allowed pursuant to this subsection shall be allowed\nin the taxable year that the qualified rehabilitation is placed in\nservice under section 167 of the federal internal revenue code.\n (3) If the taxpayer is allowed a credit pursuant to section 47 of the\ninternal revenue code with respect to a qualified rehabilitation that is\nalso the subject of the credit allowed by this subsection and that\ncredit pursuant to such section 47 is recaptured pursuant to subsection\n(a) of section 50 of the internal revenue code, a portion of the credit\nallowed under this subsection must be added back by the taxpayer or\ntransferee in the same taxable year and in the same proportion as the\nfederal recapture.\n (4) If the amount of the credit allowed under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, the excess\nshall be treated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon.\n (5) To be eligible for the credit allowable under this subsection the\nrehabilitation project shall be in whole or in part located within a\ncensus tract which is identified as being at or below one hundred\npercent of the state median family income as calculated as of April\nfirst of each year using the most recent five year estimate from the\nAmerican community survey published by the United States Census bureau.\nIf there is a change in the most recent five year estimate, a census\ntract that qualified for eligibility under this program before\ninformation about the change was released will remain eligible for a\ncredit under this subsection for an additional two calendar years. The\neligibility restrictions set forth in this paragraph shall not be\napplicable if:\n (A) a qualified rehabilitation project is undertaken within a state\npark, state historic site, or other land owned by the state, that is\nunder the jurisdiction of the office of parks, recreation and historic\npreservation; or\n (B) a qualified rehabilitation project is undertaken for the provision\nof affordable housing and the taxpayer has entered into a regulatory\nagreement with any state or federal agency or authority, or any other\ngovernment entity that is authorized to engage in the financing,\nconstruction or oversight of affordable housing within such entity's\njurisdiction, and where such regulatory agreement sets forth\naffordability requirements applicable for a period of not less than\nthirty years and that is binding on all successors of the taxpayer.\n (6) For purposes of this subsection the term "small project" means\nqualified rehabilitation expenditures totaling two million five hundred\nthousand dollars or less.\n (7)(A) A taxpayer allowed a credit pursuant to this subsection may\ntransfer the credit, in whole or in part, to another person or entity,\nwho shall be referred to as the transferee, without regard to how any\ntax credit authorized pursuant to section forty-seven of the internal\nrevenue code with respect to a qualified rehabilitation project may be\nallocated and notwithstanding that such other person or entity owns no\ninterest in the qualified rehabilitation project or in an entity with an\nownership interest in the qualified rehabilitation project. A transferee\nmay not transfer any credit, or portion thereof, acquired by transfer.\n (B) A taxpayer seeking to transfer a credit allowed pursuant to this\nsubsection must enter into a transfer contract with the transferee. The\ntransfer contract must specify:\n (i) the building identification numbers for all buildings in the\nproject;\n (ii) the date each building was placed into service;\n (iii) the schedule of years for which the transfer credit may be\nclaimed and the amount of credit previously claimed;\n (iv) the amount of consideration received by the taxpayer for the\ntransfer credit; and\n (v) the amount of credit being transferred.\n (C) No transfer shall be effective unless the taxpayer allowed a\ncredit pursuant to this subsection and seeking to transfer the credit\nfiles a transfer application with the commissioner of parks, recreation\nand historic preservation prior to the transfer and such transfer\napplication is approved. The transfer application shall include the name\nand federal identification numbers of the taxpayer and each proposed\ntransferee, the amount of credit proposed to be transferred to each\nproposed transferee, a copy of the transfer contract, and such other\ninformation as the commissioner or the commissioner of parks, recreation\nand historic preservation may require. The commissioner of parks,\nrecreation and historic preservation shall approve or deny each transfer\napplication and, if an application is denied, shall issue a written\ndetermination to the taxpayer. If the transfer is approved, the\ncommissioner of parks, recreation and historic preservation shall issue\na transfer approval certificate that provides the name of the transferor\nand all transferees, the amount of credit being transferred and such\nother information as the commissioner of parks, recreation and historic\npreservation and the commissioner deem necessary. A copy of the transfer\napproval certificate must be attached to each transferee's tax return.\nThe commissioner of parks, recreation and historic preservation, in\nconsultation with the commissioner, may establish such other procedures\nand standards deemed necessary for the transferability of credits\nallowed under this subsection.\n (D) The commissioner of parks, recreation and historic preservation\nshall forward copies of all transfer applications and attachments\nthereto and approval certificates to the commissioner within thirty days\nafter the transfer is approved.\n (E) A taxpayer allowed a credit pursuant to section forty-seven of the\ninternal revenue code with respect to a qualified rehabilitation that is\nalso the subject of the credit allowed by this subsection shall remain\nsolely liable for all obligations and liabilities imposed on the\ntaxpayer with respect to the credit allowed by this subsection, none of\nwhich shall apply to a party to whom the credit has been subsequently\ntransferred.\n (pp) Historic homeownership rehabilitation credit. (1) For taxable\nyears beginning on or after January first, two thousand seven, a\ntaxpayer shall be allowed a credit, to be computed as hereinafter\nprovided, against the tax imposed by this article. The amount of the\ncredit shall be equal to twenty percent of the qualified rehabilitation\nexpenditures made by the taxpayer with respect to a qualified historic\nhome and may be allowed in the taxable year in which the final\ncertification step of the certified rehabilitation is completed.\n (A) If such expenditures relate only to exterior work, the credit\nshall be allowed for qualified rehabilitation expenditures if the\nexterior work has been approved by a local landmark commission\nestablished pursuant to section ninety-six-a or one hundred nineteen-dd\nof the general municipal law or by the office of parks, recreation and\nhistoric preservation.\n (B) If such expenditures relate to both exterior and interior work,\nthe credit shall be allowed for qualified rehabilitation expenditures\nthat have been approved by the office of parks, recreation and historic\npreservation or by a local government certified pursuant to section\n101(c)(1) of the national historic preservation act. Under this\nsubparagraph, approval is necessary for the qualified rehabilitation\nexpenditures related to both the exterior work on the qualified historic\nhome and interior work affecting primary significant historic spaces of\nthe qualified historic home.\n (2) (A) With respect to any particular residence of a taxpayer, the\ncredit allowed under paragraph one of this subsection shall not exceed\nfifty thousand dollars for taxable years beginning on or after January\nfirst, two thousand ten and before January first, two thousand\ntwenty-five and twenty-five thousand dollars for taxable years beginning\non or after January first, two thousand twenty-five. In the case of a\nhusband and wife, the amount of the credit shall be divided between them\nequally or in such other manner as they may both elect. If a taxpayer\nincurs qualified rehabilitation expenditures in relation to more than\none residence in the same year, the total amount of credit allowed under\nparagraph one of this subsection for all such expenditures shall not\nexceed fifty thousand dollars for taxable years beginning on or after\nJanuary first, two thousand ten and before January first, two thousand\ntwenty-five and twenty-five thousand dollars for taxable years beginning\non or after January first, two thousand twenty-five.\n (B) For taxable years beginning on or after January first, two\nthousand ten and before January first, two thousand twenty-five, if the\namount of credit allowable under this subsection shall exceed the\ntaxpayer's tax for such year, and the taxpayer's New York adjusted gross\nincome for such year does not exceed sixty thousand dollars, the excess\nshall be treated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon. If\nthe taxpayer's New York adjusted gross income for such year exceeds\nsixty thousand dollars, the excess credit that may be carried over to\nthe following year or years and may be deducted from the taxpayer's tax\nfor such year or years. For taxable years beginning on or after January\nfirst, two thousand twenty-five, if the amount of credit allowable under\nthis subsection shall exceed the taxpayer's tax for such year, the\nexcess may be carried over to the following year or years and may be\ndeducted from the taxpayer's tax for such year or years.\n (3)(A) The term "qualified rehabilitation expenditure" means, for\npurposes of this subsection, any amount properly chargeable to a capital\naccount:\n (i) in connection with the certified rehabilitation of a qualified\nhistoric home, and\n (ii) for property for which depreciation would be allowable under\nsection 168 of the internal revenue code if the qualified historic home\nwere used in a trade or business.\n (B) Such term shall not include (i) the cost of acquiring any building\nor interest therein, (ii) any expenditure attributable to the\nenlargement of an existing building, or (iii) any expenditure made prior\nto January first, two thousand seven.\n (C) Such term shall not include any expenditure in connection with the\nrehabilitation of a qualified historic home unless at least five percent\nof the total expenditures made in the rehabilitation process are\nallocable to the rehabilitation of the exterior of such building.\n (D) If only a portion of a building is used as a residence of the\ntaxpayer, only qualified rehabilitation expenditures which are properly\nallocable to such residential portion shall be taken into account under\nthis subsection.\n (4)(A) The term "certified rehabilitation" means, for purposes of this\nsubsection, any rehabilitation of a certified historic structure which\nhas been approved and certified as being consistent with the standards\nestablished by the commissioner of parks, recreation and historic\npreservation for rehabilitation by the office of parks, recreation and\nhistoric preservation, a local government certified pursuant to section\n101(c)(1) of the national historic preservation act or a local landmark\ncommission established pursuant to section ninety-six-a or one hundred\nnineteen-dd of the general municipal law.\n (B) A certified rehabilitation shall require:\n (i) an initial certification that the structure meets the definition\nof the term "certified historic structure";\n (ii) a second certification, to be issued prior to construction,\ncertifying that the proposed rehabilitation work is consistent with\nstandards established by the commissioner of parks, recreation and\nhistoric preservation for rehabilitation; and\n (iii) a final certification issued when construction is completed,\ncertifying that the work was completed as proposed and that the costs\nare consistent with the work completed. Such final certification shall\nbe acceptable as proof that the expenditures related to such\nconstruction qualify as qualified rehabilitation expenditures for\npurposes of the credit allowed under either subparagraph (A) or (B) of\nparagraph one of this subsection.\n (5)(A) The term "qualified historic home" means, for purposes of this\nsubsection, a certified historic structure located within New York\nstate:\n (i) which has been substantially rehabilitated,\n (ii) which, or any portion of which, is owned, in whole or part, by\nthe taxpayer,\n (iii) in which the taxpayer resides during the taxable year in which\nthe taxpayer is allowed a credit under this subsection, and\n (iv) (1) which is in whole or in part a targeted area residence within\nthe meaning of section 143(j) of the internal revenue code; or (2) is\nlocated within a census tract which is identified as being at or below\none hundred percent of the state median family income in the most recent\nfederal census; or (3) which is located in a city with a population of\nless than one million with a poverty rate greater than fifteen percent,\nrounded to the nearest whole number, in the most recent five year\nestimate from the American community survey published by the United\nStates census bureau.\n (B) A building shall be treated as having been "substantially\nrehabilitated" if the qualified rehabilitation expenditures in relation\nto such building total five thousand dollars or more.\n (6) The term "certified historic structure" means, for purposes of\nthis subsection, any building (and its structural components) which:\n (i) is listed in the state or national register of historic places, or\n (ii) is located in a state or national registered historic district\nand is certified as being of historic significance to the district.\n (7) If the taxpayer holds stock as a tenant-shareholder in a\ncooperative housing corporation, such taxpayer shall be treated as\nowning the house or apartment which the taxpayer is entitled to occupy\nas such shareholder.\n (8)(A) A percentage of the total expenditures made in the\nrehabilitation of the exterior of a building containing cooperative or\ncondominium dwelling units shall be attributed to each such unit within\nthe building based on the percentage of space each such unit occupies\nwithin the building.\n (B) In the case of a building where less than the entire building is\nused as a residence of the taxpayer, only the portion of the total\nexpenditures made in the rehabilitation of the building that is\nattributable to the residence of the taxpayer shall be treated as\nqualified rehabilitation expenditures for the purposes of this\nsubsection.\n (C) In the case of a building that is owned by and is a residence of\ntwo or more persons, other than a husband and wife, the portion of the\ntotal expenditures made in the rehabilitation of the building that is\nattributable to each taxpayer shall be equal to the taxpayer's share of\nownership in such building.\n (9) In the case of a building other than a building to which paragraph\nten of this subsection applies, qualified rehabilitation expenditures\nshall be treated for purposes of this subsection as made on the date of\nthe final certification referred to in clause (iii) of subparagraph (B)\nof paragraph four of this subsection.\n (10)(A) In the case of a purchased qualified historic home, the\ntaxpayer shall be treated as having made, on the date of purchase, the\nqualified rehabilitation expenditures made by the seller of such home.\nFor purposes of this subsection, expenditures made by the seller shall\nbe deemed qualified rehabilitation expenditures if such expenditures, if\nmade by the purchaser, would have so qualified.\n (B) The term "purchased qualified historic home" means any qualified\nhistoric home purchased by the taxpayer if:\n (i) the taxpayer is the first purchaser of such home after the date of\nthe final certification referred to in clause (iii) of subparagraph (B)\nof paragraph four of this subsection, and the purchase occurs within\nfive years after such date,\n (ii) the taxpayer, during the taxable year in which the taxpayer is\nallowed a credit under this subsection, resides in such home,\n (iii) no credit was allowed to the seller under this subsection with\nrespect to such rehabilitation, and\n (iv) the taxpayer is furnished with such information as the\ncommissioner determines is necessary to determine any credit under this\nsubsection.\n (11)(A) If, before the end of the two-year period beginning either on\nthe date of the final certification referred to in clause (iii) of\nsubparagraph (B) of paragraph four of this subsection or, if paragraph\nten of this subsection applies, on the date of purchase of such building\nby the taxpayer, the taxpayer disposes of such taxpayer's interest in\nsuch building, or such building ceases to be used as a residence of the\ntaxpayer, the taxpayer's tax imposed by this article for the taxable\nyear in which such disposition or cessation occurs shall be increased by\nthe recapture portion of the credit allowed under this subsection for\nall prior taxable years with respect to such rehabilitation.\n (B) For purposes of subparagraph (A) of this paragraph, the recapture\nportion shall be the product of the amount of credit claimed by the\ntaxpayer multiplied by a ratio, the numerator of which is equal to\ntwenty-four less the number of months the building is used as the\ntaxpayer's residence and the denominator of which is twenty-four.\n (12) Nothing contained in this subsection shall be construed to impose\na duty upon a local landmark commission established pursuant to section\nninety-six-a or one hundred nineteen-dd of the general municipal law or\na local government certified pursuant to section 101(c)(1) of the\nnational historic preservation act to undertake any review or approval\nof an application for the certification of the rehabilitation of\nhistoric structures and of rehabilitation expenditures provided for in\nthis subsection.\n * (qq) Excelsior jobs program credit. (1) A taxpayer will be allowed a\ncredit, to the extent allowed under section thirty-one of this chapter,\nagainst the tax imposed by this article.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year exceeds the taxpayer's tax for such\nyear, the excess will be treated as an overpayment of tax to be credited\nor refunded in accordance with the provisions of section six hundred\neighty-six of this article, provided, however, that no interest will be\npaid thereon.\n * NB There are 3 sb§ (qq)'s\n * (qq) Empire state film post production credit. (1) Allowance of\ncredit. A taxpayer who is eligible pursuant to section thirty-one of\nthis chapter shall be allowed a credit to be computed as provided in\nsuch section thirty-one against the tax imposed by this article.\n (2) Application of credit. If the amount of the credit allowable under\nthis subsection for any taxable year exceeds the taxpayer's tax for such\nyear, fifty percent of the excess shall be treated as an overpayment of\ntax to be credited or refunded in accordance with the provisions of\nsection one thousand eighty-six of this chapter. Provided, however, the\nprovisions of subsection (c) of section one thousand eighty-eight of\nthis chapter notwithstanding, no interest shall be paid thereon. The\nbalance of such credit not credited or refunded in such taxable year may\nbe carried over to the immediately succeeding taxable year and may be\ndeducted from the taxpayer's tax for such year. The excess, if any, of\nthe amount of the credit over the tax for such succeeding year shall be\ntreated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section one thousand eighty-six of\nthis chapter. Provided, however, the provisions of subsection (c) of\nsection one thousand eighty-eight of this chapter notwithstanding, no\ninterest shall be paid thereon.\n * NB There are 3 sb§ (qq)'s\n * (qq) Temporary deferral nonrefundable payout credit. (1) Allowance\nof credit. A taxpayer shall be allowed a credit, to be computed as\nprovided in subdivision one of section thirty-four of this chapter,\nagainst the tax imposed by this article.\n (2) If the amount of credit allowable under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, the excess\nmay be carried over to the following year or years, and may be deducted\nfrom the taxpayer's tax for such year or years.\n * NB There are 3 sb§ (qq)'s\n (rr) Temporary deferral refundable payout credit. (1) Allowance of\ncredit. A taxpayer shall be allowed a credit, to be computed as provided\nin subdivision two of section thirty-four of this chapter, against the\ntax imposed by this article.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year shall exceed the taxpayer's tax for\nsuch year, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nshall be paid thereon.\n * (ss) Economic transformation and facility redevelopment program tax\ncredit. (1) Allowance of credit. A taxpayer shall be allowed a credit,\nto the extent allowed under section thirty-five of this chapter, against\nthe tax imposed by this article.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year exceeds the taxpayer's tax for such\nyear, the excess will be treated as an overpayment of tax to be credited\nor refunded in accordance with the provisions of section six hundred\neighty-six of this article, provided, however, that no interest will be\npaid thereon.\n * NB Repealed December 31, 2026\n * (tt) New York youth jobs program tax credit. (1) A taxpayer that\nhas been certified by the commissioner of labor as a qualified employer\npursuant to section twenty-five-a of the labor law and received an\nannual final certificate of tax credit from such commissioner shall be\nallowed a credit against the tax imposed by this article equal to the\namount listed on the annual final certificate of tax credit issued by\nthe commissioner of labor pursuant to section twenty-five-a of the labor\nlaw. A taxpayer that is a partner in a partnership, member of a limited\nliability company or shareholder in an S corporation that has received\nits annual final certificate of tax credit from the commissioner of\nlabor as a qualified employer pursuant to section twenty-five-a of the\nlabor law shall be allowed its pro rata share of the credit earned by\nthe partnership, limited liability company or S corporation. If the\nqualified employer's taxable year is a calendar year, the employer shall\nbe entitled to claim the credit as calculated on the annual final\ncertificate of tax credit on the calendar year return for which the\nannual final certificate of tax credit was issued. If the qualified\nemployer's taxable year is a fiscal year, the employer shall be entitled\nto claim the credit as calculated on the annual final certificate of tax\ncredit on the return for the fiscal year that encompasses the date on\nwhich the annual final certificate of tax credit is issued. For the\npurposes of this subsection, the term "qualified employee" shall have\nthe same meaning as set forth in subdivision (b) of section\ntwenty-five-a of the labor law.\n (2) If the amount of the credit allowed under this subsection exceeds\nthe taxpayer's tax for the taxable year, any amount of credit not\ndeductible in that taxable year will be treated as an overpayment of tax\nto be credited or refunded in accordance with the provisions of section\nsix hundred eighty-six of this article. Provided, however, no interest\nwill be paid thereon.\n (3) The taxpayer shall be required to attach to its tax return its\nannual final certificate of tax credit issued by the commissioner of\nlabor pursuant to section twenty-five-a of the labor law. In no event\nshall the taxpayer be allowed a credit greater than the amount of the\ncredit listed on the annual final certificate of tax credit.\nNotwithstanding any provision of this chapter to the contrary, the\ncommissioner and the commissioner's designees may release the names and\naddresses of any taxpayer claiming this credit and the amount of the\ncredit earned by the taxpayer. Provided, however, if a taxpayer claims\nthis credit because it is a member of a limited liability company, a\npartner in a partnership, or a shareholder in a subchapter S\ncorporation, only the amount of credit earned by the entity and not the\namount of credit claimed by the taxpayer may be released.\n * NB There are 3 sb (tt)'s\n * (tt) Empire state jobs program retention credit. (1) Allowance of\ncredit. A taxpayer shall be allowed a credit, to be computed as provided\nin section thirty-six of this chapter, against the tax imposed by this\narticle.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year exceeds the taxpayer's tax for such\nyear, the excess will be treated as an overpayment of tax to be credited\nor refunded in accordance with the provisions of section six hundred\neighty-six of this article, provided, however, that no interest will be\npaid thereon.\n * NB There are 3 sb (tt)'s\n * (tt) Credit for companies who provide transportation to individuals\nwith disabilities. (1) Allowance and amount of credit. A taxpayer, who\nprovides a taxicab service as defined in section one hundred\nforty-eight-a of the vehicle and traffic law, or a livery service as\ndefined in section one hundred twenty-one-e of the vehicle and traffic\nlaw, shall be allowed a credit, to be computed as provided in this\nsubsection, against the tax imposed by this article. The amount of the\ncredit shall be equal to the incremental cost associated with upgrading\na vehicle so that it is accessible by individuals with disabilities as\ndefined in paragraph two of this subsection. Provided, however, that\nsuch credit shall not exceed fifteen thousand dollars per electric\nvehicle and ten thousand dollars per any other vehicle. For purposes of\nthis subsection, purchases of new vehicles that are initially\nmanufactured to be accessible for individuals with disabilities and for\nwhich there is no comparable make and model that does not include the\nequipment necessary to provide accessibility to individuals with\ndisabilities, the credit shall be fifteen thousand dollars per electric\nvehicle and ten thousand dollars per any other vehicle.\n (2) Definitions. The term "accessible by individuals with\ndisabilities" shall, for the purposes of this subsection, refer to a\nvehicle that complies with federal regulations promulgated pursuant to\nthe Americans with Disabilities Act applicable to vans under twenty-two\nfeet in length, by the federal Department of Transportation, in Code of\nFederal Regulations, title 49, parts 37 and 38 and the Federal Motor\nVehicle Safety Standards, Code of Federal Regulations, title 49, part\n571. The term "electric vehicle" shall, for the purposes of this\nsubsection, have the same meaning as in section sixty-six-s of the\npublic service law.\n (3) Application of credit. If the amount of the credit shall exceed\nthe taxpayer's tax for such year the excess shall be carried over to the\nfollowing year or years, and may be deducted from the taxpayer's tax for\nsuch year or years.\n * NB Repealed December 31, 2028\n * NB There are 3 sb (tt)'s\n (uu) Alcoholic beverage production credit. A taxpayer shall be allowed\na credit, to be computed as provided in section thirty-seven of this\nchapter, against the tax imposed by this article. If the amount of the\ncredit allowed under this subsection for any taxable year shall exceed\nthe taxpayer's tax for such year, the excess shall be treated as an\noverpayment of tax to be credited or refunded in accordance with the\nprovisions of section six hundred eighty-six of this article, provided,\nhowever, that no interest shall be paid thereon.\n (vv) Family tax relief credit. 1. An individual taxpayer who meets the\neligibility standards in paragraph two of this subsection shall be\nallowed a credit against the taxes imposed by this article of three\nhundred fifty dollars per return for tax years two thousand fourteen,\ntwo thousand fifteen, and two thousand sixteen.\n 2. To be eligible for the credit, the taxpayer (or taxpayers filing\njoint returns) on the personal income tax return filed for the taxable\nyear, must (a) be a resident, (b) claim one or more dependent children\nwho were under the age of seventeen on the last day of the taxable year,\n(c) have New York adjusted gross income of at least forty thousand\ndollars but no greater than three hundred thousand dollars, and (d) have\na tax liability as determined under paragraph three of this subsection\nof greater than or equal to zero.\n 3. For purposes of this subsection, tax liability shall be determined\nby applying the tax rate calculations in sections six hundred one and\nsix hundred one-a of this part to the taxpayer's taxable income and then\nsubtracting from that amount any other tax credits allowed under this\nsection or section six hundred twenty of this article.\n 4. If the amount of the credit allowed under this subsection shall\nexceed the taxpayer's tax for the taxable year, the excess shall be\ntreated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon.\n (ww) Tax-free NY area tax elimination credit. (1) Allowance of credit.\nA taxpayer shall be allowed a credit, to be computed as provided under\nsection forty of this chapter, against the tax imposed by this article.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year exceeds the taxpayer's tax for such\nyear, the excess will be treated as an overpayment to be credited or\nrefunded in accordance with the provisions of section six hundred\neighty-six of this article, provided, however, that no interest will be\npaid thereon.\n (xx) Real property tax credit for manufacturers. (1) A qualified New\nYork manufacturer will be allowed a credit equal to twenty percent of\nthe real property tax it paid during the taxable year for real property\nowned by such manufacturer in New York which was principally used during\nthe taxable year for manufacturing to the extent not deducted in\ncomputing New York adjusted gross income. This credit will not be\nallowed if the real property taxes that are the basis for this credit\nare included in the calculation of another credit claimed by the\ntaxpayer.\n (2)(A) The term qualified New York manufacturer has the same meaning\nas under subparagraph (vi) of paragraph (a) of subdivision one of\nsection two hundred ten of this chapter.\n (B) (i) The term real property tax means a charge imposed upon real\nproperty by or on behalf of a county, city, town, village or school\ndistrict for municipal or school district purposes, provided that the\ncharge is levied for the general public welfare by the proper taxing\nauthorities at a like rate against all property over which such\nauthorities have jurisdiction, and provided that where taxes are levied\npursuant to article eighteen or nineteen of the real property tax law,\nthe property must have been taxed at the rate determined for the class\nin which it is contained, as provided by such article eighteen or\nnineteen, whichever is applicable. The term real property tax does not\ninclude a charge for local benefits, including any portion of that\ncharge that is properly allocated to the costs attributable to\nmaintenance or interest, when (I) the property subject to the charge is\nlimited to the property that benefits from the charge, or (II) the\namount of the charge is determined by the benefit to the property\nassessed, or (III) the improvement for which the charge is assessed\ntends to increase the property value.\n (ii) In addition, the term real property tax includes taxes paid by\nthe taxpayer upon real property principally used during the taxable year\nby the taxpayer in manufacturing where the taxpayer leases such real\nproperty from an unrelated third party if the following conditions are\nsatisfied: (I) the tax must be paid by the taxpayer as lessee pursuant\nto explicit requirements in a written lease, and (II) the taxpayer as\nlessee has paid such taxes directly to the taxing authority and has\nreceived a written receipt for payment of taxes from the taxing\nauthority. In the case of a taxpayer that, during the taxable year, is\nprincipally engaged in the production of goods by farming, agriculture,\nhorticulture, floriculture, viticulture, or commercial fishing, the\ntaxpayer is eligible if the taxpayer satisfies the conditions in the\npreceding sentence and the taxpayer leases such real property from a\nrelated or unrelated party.\n (iii) The term real property tax does not include a payment made by\nthe taxpayer in connection with an agreement for the payment in lieu of\ntaxes on real property, whether such property is owned or leased by the\ntaxpayer.\n (iv) The real property taxes must be paid by the taxpayer in the year\nsuch taxes become a lien on the real property.\n (3) Credit recapture. Where a qualified New York manufacturer's real\nproperty taxes which were the basis for the allowance of the credit\nprovided for under this subdivision are subsequently reduced as a result\nof a final order in any proceeding under article seven of the real\nproperty tax law or other provision of law, the taxpayer shall add back,\nin the taxable year in which such final order is issued, the excess of\n(i) the amount of credit originally allowed for a taxable year over (ii)\nthe amount of credit determined based upon the reduced real property\ntaxes. If such final order reduces real property taxes for more than one\nyear, the taxpayer must determine how much of such reduction is\nattributable to each year covered by such final order and calculate the\namount of credit which is required by this subdivision to be recaptured\nfor each year based on such reduction.\n (4) If the amount of the credit allowed under this subsection for any\ntaxable year exceeds the taxpayer's tax for such year, the excess will\nbe treated as an overpayment to be credited or refunded in accordance\nwith the provisions of section six hundred eighty-six of this article,\nprovided however, no interest will be paid thereon.\n (yy) The tax-free NY area excise tax on telecommunication services\ncredit. A taxpayer that is a business or owner of a business that is\nlocated in a tax-free NY area approved pursuant to article twenty-one of\nthe economic development law shall be allowed a credit equal to the\nexcise tax on telecommunication services imposed by section one hundred\neighty-six-e of this chapter and passed through to such business during\nthe taxable year to the extent not otherwise deducted in computing New\nYork adjusted gross income. This credit may be claimed only where any\ntax imposed by such section one hundred eighty-six-e has been separately\nstated on a bill from the provider of telecommunication services and\npaid by such taxpayer with respect to such services rendered within a\ntax-free NY area during the taxable year. If the amount of the credit\nallowed under this subsection for any taxable year exceeds the\ntaxpayer's tax for such year, the excess will be treated as an\noverpayment to be credited or refunded in accordance with the provisions\nof section six hundred eighty-six of this article, provided, however,\nthat no interest will be paid thereon.\n (zz) Workers with disabilities tax credit. (1) A qualified employer,\nas defined in paragraph one of subdivision (b) of section twenty-five-b\nof the labor law, shall be entitled to a credit against the tax imposed\nby this article. The amount of the credit shall be: fifteen percent of\nthe qualified wages paid after January first, two thousand fifteen to a\nqualified full-time employee who is employed for not less than six\nmonths and who works at least thirty hours per week; and shall be ten\npercent of the qualified wages paid after January first, two thousand\nfifteen to a qualified part-time employee who is employed for not less\nthan six months and works at least eight hours per week. The credit\nallowed pursuant to this subsection shall not exceed, during any taxable\nyear, five thousand dollars for any qualified full time employee and two\nthousand five hundred dollars for any qualified part time employee.\n"Qualified wages" means wages paid or incurred by the qualified employer\nduring the taxable year to a qualified employee which are attributable,\nwith respect to such employee, to services rendered by the qualified\nemployee.\n (2) If the amount of credit allowable under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, any amount\nof credit not deductible in such taxable year may be carried over to the\nfollowing three years, and may be deducted for the qualified employer's\ntax for such years.\n (3) The taxpayer shall attach to its tax return its final certificate\nof eligibility issued by the commissioner of labor pursuant to section\ntwenty-five-b of the labor law. In no event shall the taxpayer be\nallowed a credit greater than the amount of the credit listed on the\nfinal certificate of eligibility. Notwithstanding any provision of this\nchapter to the contrary, the commissioner and the commissioner's\ndesignees may release the names and addresses of any taxpayer claiming\nthis credit and the amount of the credit earned by the taxpayer.\n (4) A qualified employer may not claim the workers with disabilities\ntax credit if it claims any of the other credits for employment of\npersons with disabilities under either subsection (o) of section six\nhundred six, subdivision twelve of section two hundred ten-B, or\nsubdivision (j) of section fifteen hundred eleven of this chapter.\n (aaa) Minimum wage reimbursement credit. (1) A taxpayer shall be\nallowed a credit, to be computed as provided in section thirty-eight of\nthis chapter, against the tax imposed by this article.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year exceeds the taxpayer's tax for such\nyear, the excess will be treated as an overpayment of tax to be credited\nor refunded in accordance with the provisions of section six hundred\neighty-six of this article, provided, however, that no interest will be\npaid thereon.\n (ccc) Article twenty-four employee credit. A covered employee of an\nelecting employer shall be entitled to a credit against the tax imposed\nby this article as provided in this subsection. For purposes of this\nsubsection the terms "covered employee" and "electing employer" shall\nhave the same meanings as under section eight hundred fifty of this\nchapter. (1) For two thousand nineteen, the credit shall be equal to the\nproduct of (i) the covered employee's wages and compensation in excess\nof forty thousand dollars received during the tax year from the electing\nemployer that are subject to tax under this article and (ii) one and\none-half percent and (iii) the result of one minus a fraction, the\nnumerator of which shall be the tax imposed on the covered employee as\ndetermined pursuant to section six hundred one of this article before\nthe application of any credits for the applicable tax year and the\ndenominator of which shall be the covered employee's taxable income as\ndetermined pursuant to this article for the applicable tax year. (2) For\ntwo thousand twenty, the credit shall be equal to the product of (i) the\ncovered employee's wages and compensation in excess of forty thousand\ndollars received during the tax year from the electing employer that are\nsubject to tax under this article and (ii) three percent and (iii) the\nresult of one minus a fraction, the numerator of which shall be the tax\nimposed on the covered employee as determined pursuant to section six\nhundred one of this article before the application of any credits for\nthe applicable tax year and the denominator of which shall be the\ncovered employee's taxable income as determined pursuant to this article\nfor the applicable tax year. (3) For two thousand twenty-one and\nthereafter, the credit shall be equal to the product of (i) the covered\nemployee's wages and compensation in excess of forty thousand dollars\nreceived during the tax year from the electing employer that are subject\nto tax under this article and (ii) five percent and (iii) the result of\none minus a fraction, the numerator of which shall be the tax imposed on\nthe covered employee as determined pursuant to section six hundred one\nof this article before the application of any credits for the applicable\ntax year and the denominator of which shall be the covered employee's\ntaxable income as determined pursuant to this article for the applicable\ntax year. If the amount of the credit allowable under this subsection\nfor any taxable year shall exceed the taxpayer's tax for such year, the\nexcess allowed for a taxable year may be carried over to the following\nyear or years and may be deducted from the taxpayer's tax for such year\nor years.\n (ddd) Employee training incentive program tax credit. (1) For taxable\nyears beginning before January first, two thousand twenty-nine, a\ntaxpayer that has been approved by the commissioner of economic\ndevelopment to participate in the employee training incentive program\nand has been issued a certificate of tax credit pursuant to section four\nhundred forty-three of the economic development law shall be allowed to\nclaim a credit against the tax imposed by this article. The credit\nshall equal fifty percent of a taxpayer's eligible training costs, up to\na credit of ten thousand dollars per employee completing eligible\ntraining pursuant to paragraph (a) of subdivision three of section four\nhundred forty-one of the economic development law. The credit shall\nequal fifty percent of the stipend paid to an intern, up to a credit of\nthree thousand dollars per intern completing eligible training pursuant\nto paragraph (b) of subdivision three of section four hundred forty-one\nof the economic development law. In no event shall a taxpayer be allowed\na credit greater than the amount listed on the certificate of tax credit\nissued by the commissioner of economic development. In the case of a\ntaxpayer who is a partner in a partnership, member of a limited\nliability company or shareholder in an S corporation, the taxpayer shall\nbe allowed its pro rata share of the credit earned by the partnership,\nlimited liability company or S corporation. The credit will be allowed\nin the taxable year in which the eligible training is completed.\n (2) If the amount of the credit allowed under this subsection for any\ntaxable year exceeds the taxpayer's tax for the taxable year, the excess\nshall be treated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section six hundred eighty-six of this\narticle, provided, however, no interest will be paid thereon.\n (eee) School tax relief (STAR) credit. (1) Definitions. For purposes\nof this subsection:\n (A) "Qualified taxpayer" means a resident individual of the state, who\nmaintained his or her primary residence in this state on December\nthirty-first of the taxable year, and who was an owner of that property\non that date, provided however: (i) A taxpayer whose primary residence\nreceived a STAR exemption for the associated fiscal year shall not be\nconsidered a qualified taxpayer for purposes of this subsection.\n (ii) An individual may be considered a qualified taxpayer with respect\nto no more than one primary residence during any given taxable year.\n (iii) If a resident individual was an owner of the property during the\ntaxable year but did not own it on December thirty-first of the taxable\nyear, he or she shall be considered a qualified taxpayer if the property\nwas his or her primary residence during the taxable year and he or she\npaid qualifying taxes on that property while he or she was still an\nowner of that property.\n (iv) If a resident individual has acquired ownership of property\nduring a taxable year, such resident individual shall not be considered\na qualified taxpayer for that taxable year to the extent that an advance\npayment of the credit for that taxable year has been issued to the prior\nowner with respect to the same property, unless such resident individual\ncan demonstrate that he or she paid qualifying taxes on such property\nduring the taxable year, and that the prior owner did not.\n (B) (i) "Affiliated income" shall mean the combined income of all of\nthe owners of the parcel who resided primarily thereon as of July first\nof the taxable year, and of any owners' spouses residing primarily\nthereon as of such date; provided that the income to be so combined\nshall be the "adjusted gross income" for the taxable year as reported\nfor federal income tax purposes, or that would be reported as adjusted\ngross income if a federal income tax return were required to be filed,\nreduced by distributions, to the extent included in federal adjusted\ngross income, received from an individual retirement account and an\nindividual retirement annuity.\n (ii) For taxable years beginning on and after January first, two\nthousand nineteen, where an income-eligibility determination is wholly\nor partly based upon the income of one or more individuals who did not\nfile a return pursuant to section six hundred fifty-one of this article\nfor the applicable income tax year, then in order to be eligible for the\ncredit authorized by this subsection, each such individual must file a\nstatement with the department showing the source or sources of such\nindividual's income for that income tax year, and the amount or amounts\nthereof, that would have been reported on such a return if one had been\nfiled. Such statement shall be filed at such time, and in such form and\nmanner, as may be prescribed by the department, and shall be subject to\nthe provisions of section six hundred ninety-seven of this article to\nthe same extent that a return would be. The department shall make such\nforms and instructions available for the filing of such statements. The\nlocal assessor shall upon the request of a taxpayer assist such taxpayer\nin the filing of the statement with the department.\n (iii) Notwithstanding the foregoing provisions of this subparagraph,\nwhere property is owned solely by a person or persons who received the\ncredit for three consecutive years without having filed returns for the\napplicable income tax years, but who demonstrated their eligibility for\nthe credit to the commissioner's satisfaction by filing statements\npursuant to clause (ii) of this subparagraph, such person or persons\nshall be presumed to satisfy the applicable income-eligibility\nrequirements each year thereafter and shall not be required to continue\nto file such statements in the absence of a specific request therefor\nfrom the commissioner. Nothing contained herein shall be construed to\nprevent the commissioner from denying a credit pursuant to this\nsubsection when the commissioner determines that a property owner has a\nsource of income that renders that owner temporarily or permanently\nineligible for that credit.\n (C) "Associated fiscal year" means the school district fiscal year\nthat began on July first of the taxable year or, in the case of a city\nschool district that is subject to article fifty-two of the education\nlaw, the city fiscal year that began on July first of the taxable year.\n (D) "Owner" means:\n (i) a person who owns a parcel in fee simple absolute or as a tenant\nin common, a joint tenant or a tenant by the entirety,\n (ii) an owner of a present interest in a parcel under a life estate,\n (iii) a vendee in possession under an installment contract of sale,\n (iv) a beneficial owner under a trust,\n (v) a tenant-stockholder of a cooperative apartment corporation who\nresides in a portion of real property owned by such cooperative\napartment corporation, to the extent represented by his or her share or\nshares of stock in such corporation as determined by its or their\nproportional relationship to the total outstanding stock of the\ncorporation, including that owned by the corporation,\n (vi) a resident of a farm dwelling that is owned either by a\ncorporation of which the resident is a shareholder, a partnership of\nwhich the resident is a partner, or by a limited liability company of\nwhich the resident is an owner, or\n (vii) a resident of a dwelling, other than a farm dwelling, that is\nowned by a limited partnership of which the resident is a partner,\nprovided that the limited partnership that holds title to the property\ndoes not engage in any commercial activity, that the limited partnership\nwas lawfully created to hold title solely for estate planning and asset\nprotection purposes, and that the partner or partners who primarily\nreside thereon personally pay all of the real property taxes and other\ncosts associated with the property's ownership.\n (E) "Qualifying taxes" means the school district taxes that were or\nare to be levied upon the taxpayer's primary residence for the\nassociated fiscal year; or, in the case of a city school district that\nis subject to article fifty-two of the education law, the combined city\nand school district taxes that were or are to be levied upon the\ntaxpayer's primary residence for the associated fiscal year. Provided,\nhowever, that in the case of a cooperative apartment, "qualifying taxes"\nmeans the school district taxes that would have been levied upon the\ntenant-stockholder's primary residence if it were separately assessed,\nas determined by the commissioner based on the statement provided by the\nassessor pursuant to subparagraph (ii) of paragraph (k) of subdivision\ntwo of section four hundred twenty-five of the real property tax law, or\nin the case of a cooperative apartment corporation that is described in\nsubparagraph (iv) of paragraph (k) of subdivision two of section four\nhundred twenty-five of the real property tax law, one third of such\namount. In no case shall the term "qualifying taxes" be construed to\ninclude penalties or interest.\n (F) "STAR exemption" means the school tax relief (STAR) exemption\nauthorized by section four hundred twenty-five of the real property tax\nlaw.\n (G) "STAR tax savings" means the tax savings attributable to the STAR\nexemption within a portion of a school district, as determined by the\ncommissioner pursuant to subdivision two of section thirteen hundred\nsix-a of the real property tax law for purposes of the credit authorized\nby this subsection.\n (3) Determination of basic STAR credit. (A) Beginning with taxable\nyears after two thousand fifteen, a basic STAR credit shall be available\nto a qualified taxpayer if the affiliated income of the parcel that\nserves as the taxpayer's primary residence is less than or equal to five\nhundred thousand dollars for the applicable income tax year specified by\nparagraph (b-1) of subdivision three of section four hundred twenty-five\nof the real property tax law. The income limit established for the basic\nSTAR exemption by paragraph (b-1) of subdivision three of section four\nhundred twenty-five of the real property tax law shall not be taken into\naccount when determining eligibility for the basic STAR credit.\n (B) Subject to the provisions of subparagraph (C) of this paragraph,\nsuch basic STAR credit shall be the lesser of:\n (i) the basic STAR tax savings for the school district portion in\nwhich the taxpayer's primary residence is located, or\n (ii) the taxpayer's qualifying taxes.\n (C) If the qualifying taxes paid by the taxpayer constituted only a\nportion of the total school district taxes that were levied upon the\ntaxpayer's primary residence for the associated fiscal year or, in the\ncase of a city school district that is subject to article fifty-two of\nthe education law, if the qualifying taxes paid by the taxpayer\nconstituted only a portion of the total combined city and school\ndistrict taxes that were levied upon the taxpayer's primary residence\nfor the associated fiscal year, the credit allowable to such taxpayer\nshall be equal to the amount determined pursuant to subparagraph (B) of\nthis paragraph multiplied by the percentage that such portion\nrepresents.\n (4) Determination of enhanced STAR credit. (A) Beginning with taxable\nyears after two thousand twenty-four, an enhanced STAR credit shall be\navailable to a qualified taxpayer where both of the following conditions\nare satisfied:\n (i) At least one of the owners of the parcel that serves as the\ntaxpayer's primary residence is at least sixty-five years of age as of\nDecember thirty-first of the taxable year. In the case of property owned\nby a married couple, if only one of the spouses is sixty-five years of\nage or over, the credit, once allowed, shall not be disallowed because\nof the death of the older spouse so long as the surviving spouse is at\nleast sixty-two years of age as of December thirty-first of the taxable\nyear.\n (ii) The affiliated income of the parcel that serves as the taxpayer's\nprimary residence is less than or equal to the income standard for the\ntaxable year established by the commissioner for the corresponding\n"income tax year" pursuant to clause (C) of subparagraph (i) of\nparagraph (b) of subdivision four of section four hundred twenty-five of\nthe real property tax law for purposes of the enhanced STAR exemption.\n (B) Subject to the provisions of subparagraph (C) of this paragraph,\nsuch credit shall be the lesser of:\n (i) the enhanced STAR tax savings for the school district portion in\nwhich the taxpayer's primary residence is located, or\n (ii) the taxpayer's qualifying taxes.\n (C) If the qualifying taxes paid by the taxpayer constituted only a\nportion of the total school district taxes that were levied upon the\ntaxpayer's primary residence for the associated fiscal year or, in the\ncase of a city school district that is subject to article fifty-two of\nthe education law, if the qualifying taxes paid by the taxpayer\nconstituted only a portion of the total combined city and school\ndistrict taxes that were levied upon the taxpayer's primary residence\nfor the associated fiscal year, the credit allowable to such taxpayer\nshall be equal to the amount determined pursuant to subparagraph (B) of\nthis paragraph multiplied by the percentage that such portion\nrepresents.\n (5) Disqualification. A taxpayer shall not qualify for the credit\nauthorized by this subsection if the parcel that serves as the\ntaxpayer's primary residence received the STAR exemption on the\nassessment roll upon which school district taxes for the associated\nfiscal year were levied. Provided, however, that the taxpayer may remove\nthis disqualification by switching to the credit in the manner provided\nby subdivision seventeen of section four hundred twenty-five of the real\nproperty tax law. Alternatively, the taxpayer may remove this\ndisqualification by renouncing the exemption and making any required\npayments in the manner provided by section four hundred ninety-six of\nthe real property tax law. Any such switch to the credit or renunciation\nshall be irrevocable.\n (6) Special cases.\n (A) A married couple may not receive a credit pursuant to this\nsubsection on more than one residence during any given taxable year,\nunless living apart due to legal separation. Nor may a married couple\nreceive a credit pursuant to this subsection on one residence while\nreceiving an exemption pursuant to section four hundred twenty-five of\nthe real property tax law on another residence, unless living apart due\nto legal separation.\n (B) (i) In the case of property consisting of a mobile home that is\ndescribed in paragraph (1) of subdivision two of section four hundred\ntwenty-five of the real property tax law, the amount of the credit\nallowable with respect to such mobile home shall be equal to the basic\nSTAR tax savings for the school district portion, or the enhanced STAR\ntax savings for the school district portion, whichever is applicable,\nthat would be applied to a separately assessed parcel in the school\ndistrict portion with a taxable assessed value equal to twenty thousand\ndollars multiplied by the latest state equalization rate or special\nequalization rate for the assessing unit in which the mobile home is\nlocated. Provided, however, that if the commissioner is in possession of\ninformation, including but not limited to assessment records, that\ndemonstrates to the commissioner's satisfaction that the taxpayer's\nmobile home is worth more than twenty thousand dollars, or if the\ntaxpayer provides the commissioner with such information, the taxpayer's\ncredit shall be increased accordingly, but in no case shall the credit\nexceed the basic STAR tax savings or enhanced STAR tax savings,\nwhichever is applicable, for the school district portion.\n (ii) The commissioner may implement an electronic system for the\nreporting of information by owners and operators of manufactured home\nparks, as defined by section two hundred thirty-three of the real\nproperty law. Upon the implementation of such a system, each such owner\nand operator shall file electronic statements with the commissioner\naccording to a schedule to be determined by the commissioner. Such\nstatement shall require reporting of names of all persons owning an\ninterest in the park, the services provided by the park owner to the\ntenants, the name of the agent designated pursuant to subdivision l of\nsection two hundred thirty-three of the real property law, the names and\naddresses of all tenants of the park, whether the tenant leases or owns\nthe home, the rent set for each lot in the park, and such additional\ninformation as the commissioner may deem necessary for the proper\nadministration of the STAR exemption established pursuant to section\nfour hundred twenty-five of the real property tax law and the STAR\ncredit and any other property tax-based credit established pursuant to\nthis section. In the case of the first registration statement filed in a\ncalendar year, such statement shall also include a copy of all current\nmanufactured home park rules and regulations. In the case that the\nmanufactured home park rules and regulations are modified after the\nfiling of the first registration statement in a calendar year, the next\nsubsequent registration statement shall also include a copy of such\nrules and regulations. The commissioner shall provide the commissioner\nof housing and community renewal with the information contained in each\nreport no later than thirty days after the receipt thereof.\n (iii) Beginning with the two thousand twenty-two taxable year, to\nreceive the credit authorized by this subsection, an owner of a mobile\nhome described by clause (i) of this subparagraph shall register for\nsuch credit in the manner prescribed by the commissioner.\n (C) In the case of a primary residence that is located in two or more\nschool districts, the applicable basic or enhanced STAR tax savings for\nthe school district portion shall be determined as follows:\n (i) determine the sum of the total school district taxes that were\nlevied upon the taxpayer's primary residence for the associated fiscal\nyear by each of the school districts in which the residence is located;\n (ii) for each such school district, divide the total school district\ntaxes that were levied upon the taxpayer's primary residence by that\nschool district for the associated fiscal year by the sum determined in\nclause (i) of this subparagraph. Express the result as a percentage with\ntwo decimal places;\n (iii) for each such school district, multiply the percentage\ndetermined in clause (ii) of this subparagraph by the basic or enhanced\nSTAR tax savings for the school district portion, whichever is\napplicable; and\n (iv) add the products determined in clause (iii) of this subparagraph.\n (7) Disclosure of incomes and other information. (A) Where the\ncommissioner has denied a taxpayer's claim for the credit authorized by\nthis subsection in whole or in part on the grounds that the affiliated\nincome of the parcel in question exceeds the applicable limit, the\ncommissioner shall have the authority to reveal to that taxpayer the\nnames and incomes of the other taxpayers whose incomes were included in\nthe computation of such affiliated income.\n (B) Notwithstanding any provision of law to the contrary, the names\nand addresses of individuals who have applied for or are receiving the\ncredit authorized by this subsection may be disclosed to assessors,\ncounty directors of real property tax services, municipal tax collecting\nofficers and enforcing officers within New York state. In addition, such\ninformation may be exchanged with assessors and tax officials from\njurisdictions outside New York state if the laws of the other\njurisdiction allow it to provide similar information to this state. Such\ninformation shall be considered confidential and shall not be subject to\nfurther disclosure pursuant to the freedom of information law or\notherwise.\n (8) Proof of claim. The commissioner may require a qualified taxpayer\nto furnish the following information in support of his or her claim for\ncredit under this subsection: affiliated income, the total school\ndistrict taxes levied on the property for the associated fiscal year or,\nin the case of a city school district that is subject to article\nfifty-two of the education law, the total combined city and school\ndistrict taxes levied on the property for the associated fiscal year,\nthe qualifying taxes paid by the taxpayer, the names and taxpayer\nidentification numbers of all owners of the property and spouses who\nprimarily reside on the property, the parcel identification number and\nall other information that may be required by the commissioner to\ndetermine the credit.\n (9) Returns. Whether or not the taxpayer is required to file a return\npursuant to section six hundred fifty-one of this article, the process\nfor requesting advance payment of such credit shall be as provided by\nparagraph ten of this subsection.\n (10) Advance payments. (A) The commissioner shall establish a\nmechanism by which a qualified taxpayer may apply for an advance payment\nof the credit authorized by this section, provided that:\n (i) If the taxpayer acquired a new primary residence between January\nfirst and July first of the taxable year, inclusive, any such\napplication must be submitted to the commissioner by the first day of\nJuly of the taxable year, or such later date as may be prescribed by the\ncommissioner in order for the taxpayer's payment to be subject to the\nprocessing schedule provided by subparagraph (B) of this paragraph, and\n (ii) A qualified taxpayer who fails to apply for an advance payment of\nsuch credit by such date may apply for and receive such credit in the\nmanner prescribed by the commissioner, provided that such application\nshall be made within three years from the time that a return for the\ntaxable year would have had to be filed pursuant to section six hundred\nfifty-one of this article. If approved, such payment shall be issued as\nsoon as is practicable after the submission of the application but shall\nnot be subject to the processing schedule prescribed by subparagraph (B)\nof this paragraph, and\n (iii) A qualified taxpayer who has applied for an advance payment of\nsuch credit in a taxable year may continue to receive such advance\npayments in future taxable years without reapplying as long as he or she\nremains eligible therefor.\n (B) On or before the date specified below, or as soon thereafter as\npracticable, the commissioner shall determine the eligibility of\ntaxpayers for this credit utilizing the information available to him or\nher as obtained from the applications submitted on or before July first\nof that year, or such later date as may have been prescribed by the\ncommissioner for that purpose, and from such other sources as the\ncommissioner deems reliable and appropriate. For those taxpayers whom\nthe commissioner has determined eligible for this credit, the\ncommissioner shall advance a payment in the amount specified in\nparagraph three, four or six of this subsection, whichever is\napplicable. Such payment shall be issued by the date specified below, or\nas soon thereafter as is practicable; provided that if such payment is\nissued after such date, it shall be subject to interest at the rate\nprescribed by subparagraph (A) of paragraph two of subsection (j) of\nsection six hundred ninety-seven of this article. Nothing contained\nherein shall be deemed to preclude the commissioner from issuing\npayments after such date to qualified taxpayers whose applications were\nmade after July first of that year, or such later date as may have been\nprescribed by the commissioner for such purpose.\n (i) The applicable dates for this purpose are as follows:\n (I) If the school district tax roll is filed with the commissioner on\nor before July first, the determination of eligibility shall be made by\nJuly fifteenth, or as soon thereafter as is practicable, and the advance\npayment shall be issued by July thirtieth, or as soon thereafter as is\npracticable.\n (II) If the school district tax roll is filed with the commissioner\nafter July first and on or before September first, the determination of\neligibility shall be made by September fifteenth, or as soon thereafter\nas is practicable, and the advance payment shall be issued by September\nthirtieth, or as soon thereafter as is practicable.\n (III) If the school district tax roll is filed with the commissioner\nafter September first, the determination of eligibility shall be made by\nthe fifteenth day after such filing, or as soon thereafter as is\npracticable, and the advance payment shall be issued by the thirtieth\nday after such filing, or as soon thereafter as is practicable.\n (ii) Notwithstanding the foregoing provisions of this subparagraph, in\nthe case of taxpayers whose primary residence is a cooperative apartment\nor a mobile home that is subject to the provisions of subparagraph (A)\nor (B) of paragraph six of this subsection, the payment shall be issued\nby the sixtieth day following receipt of all of the data needed to\nproperly calculate the credit, or as soon thereafter as is practicable.\n (C) A taxpayer who has failed to receive an advance payment that he or\nshe believes was due to him or her, or who has received an advance\npayment that he or she believes is less than the amount that was due to\nhim or her, may request payment of the claimed deficiency in a manner\nprescribed by the commissioner.\n (D) An advance payment of credit provided pursuant to this subsection\nthat exceeds the taxpayer's qualifying taxes for that taxable year shall\nbe added back as tax on the income tax return for that taxable year.\n (E) If the commissioner determines after issuing an advance payment\nthat it was issued in an excessive amount or to an ineligible or\nincorrect party, the commissioner shall be empowered to utilize any of\nthe procedures for collection, levy and lien of personal income tax set\nforth in this article, any other relevant procedures referenced within\nthe provisions of this article, and any other law as may be applicable,\nto recoup the improperly issued amount; provided that in the event such\nparty was determined to be ineligible on the basis that his or her\nprimary residence received the STAR exemption in the associated fiscal\nyear, the improperly issued credit amount shall be deemed a clerical\nerror and shall be paid upon notice and demand without the issuance of a\nnotice of deficiency and shall be assessed, collected and paid in the\nsame manner as taxes.\n (11) Administration. The provisions of this article, including the\nprovisions of sections six hundred fifty-three, six hundred fifty-eight,\nand six hundred fifty-nine of this article and the provisions of part\nsix of this article relating to procedure and administration, including\nthe judicial review of the decisions of the commissioner, except so much\nof section six hundred eighty-seven of this article that permits a claim\nfor credit or refund to be filed after the period provided for in\nparagraph nine of this subsection and except sections six hundred\nfifty-seven, six hundred eighty-eight and six hundred ninety-six of this\narticle, shall apply to the provisions of this subsection in the same\nmanner and with the same force and effect as if the language of those\nprovisions had been incorporated in full into this subsection and had\nexpressly referred to the credit allowed or returns filed under this\nsubsection, except to the extent that any such provision is either\ninconsistent with a provision of this subsection or is not relevant to\nthis subsection. As used in such sections and such part, the term\n"taxpayer" shall include a qualified taxpayer under this subsection and,\nnotwithstanding the provisions of subsection (e) of section six hundred\nninety-seven of this article, where a qualified taxpayer has protested\nthe denial of a claim for credit under this subsection and the time to\nfile a petition for redetermination of a deficiency or for refund has\nnot expired, he or she shall, subject to such conditions as may be set\nby the commissioner, receive such information (A) that is contained in\nany return filed under this article by a member of his or her household\nfor the taxable year for which the credit is claimed, and (B) that the\ncommissioner finds is relevant and material to the issue of whether such\nclaim was properly denied.\n (12) When the calculation of any other personal income tax credit is\nbased in whole or in part upon the real property taxes paid by the\ntaxpayer, the amount of real property taxes so paid shall be reduced by\nthe credit authorized by this subsection, if applicable, in the course\nof performing such calculation. When the calculation of any other\npersonal income tax credit is based in whole or in part upon an\nindividual's state tax liability, the credit authorized by this\nsubsection shall not be taken into account in the calculation of such\nstate tax liability. When the calculation of a city tax surcharge is\nbased in whole or in part upon the net state tax of an individual, the\ncredit authorized by this subsection shall not be taken into account in\nthe calculation of such net state tax.\n (13) (A) Nothing herein shall be construed to preclude the\ncommissioner from making a preliminary advance payment of the credit\nbased upon an estimate of the STAR tax savings applicable to a school\ndistrict portion, where he or she finds that attempting to ascertain the\nactual STAR tax savings applicable to the school district portion would\njeopardize the timely issuance of the payment. When making such an\nestimate, the commissioner shall consider the STAR tax savings\napplicable in the school district fiscal year preceding the associated\nfiscal year, the allowable levy growth factor applicable to the\ncalculation of the tax levy limit for the associated fiscal year\npursuant to paragraph a of subdivision two of section two thousand\ntwenty-three-a of the education law, taxable assessed value where\nappropriate, and such other information that in his or her judgment will\nhelp make the estimate as accurate as possible.\n (B) Nothing herein shall be construed to preclude the commissioner\nfrom making a preliminary advance payment of the credit without\nattempting to ascertain the taxpayer's qualifying taxes, where he or she\nfinds that attempting to ascertain the taxpayer's qualifying taxes would\njeopardize the timely issuance of the payment.\n (C) If the commissioner determines that a taxpayer received a\npreliminary advance payment that is above or below the advance payment\nto which he or she was entitled under this subsection, the commissioner\nshall provide notice to such taxpayer that the next advance payment due\nto such taxpayer under this subsection shall be adjusted to reconcile\nsuch underpayment or overpayment; provided, however, the commissioner\nshall permit a taxpayer to request that such adjustment be made on an\noriginally filed timely income tax return for the tax year in which such\noverpayment or underpayment occurred, provided such return is filed on\nor before the due date for such return, determined without regard to\nextensions.\n (D) A taxpayer who received a preliminary advance payment that\nconstitutes an overpayment shall not be required to pay interest on the\namount of the overpayment.\n (E) On or after April first, two thousand nineteen, a taxpayer who is\nfound to have made a material misstatement on an application for the\ncredit authorized by this section shall be disqualified from receiving\nsuch credit for six years. As used herein, the term "material\nmisstatement" shall have the same meaning as set forth in paragraph (a)\nof subdivision thirteen of section four hundred twenty-five of the real\nproperty tax law.\n (14) The process employed by the commissioner in verifying eligibility\nfor the basic STAR credit shall be the same as for the enhanced STAR\ncredit, except to the extent that differences are required by law.\n (fff) Farm workforce retention credit. (1) A taxpayer shall be allowed\na credit, to be computed as provided in section forty-two of this\nchapter, against the tax imposed by this article.\n (2) Application of credit. If the amount of credit allowed under this\nsubsection for any taxable year exceeds the taxpayer's tax for such\nyear, the excess will be treated as an overpayment of tax to be credited\nor refunded in accordance with the provision of section six hundred\neighty-six of this article, provided, however, that no interest will be\npaid thereon.\n (ggg) School tax reduction credit for residents of a city with a\npopulation over one million. (1) For taxable years beginning after two\nthousand fifteen, a school tax reduction credit shall be allowed to a\nresident individual of the state who is a resident of a city with a\npopulation over one million, as provided below. The credit shall be\nallowed against the taxes authorized by this article reduced by the\ncredits permitted by this article. If the credit exceeds the tax as so\nreduced, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided however, that no interest\nwill be paid thereon. For purposes of this subsection, no credit shall\nbe granted 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 subsection 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.\n (3) For taxable years beginning in two thousand sixteen, the credit\nshall be determined as provided in this paragraph, provided that for the\npurposes of this paragraph, any taxpayer under subparagraphs (A) and (B)\nof this paragraph with income of more than two hundred fifty thousand\ndollars shall not receive a credit.\n (A) Married individuals filing joint returns and surviving spouses. In\nthe case of married individuals who make a single return jointly and of\na surviving spouse, the credit shall be one hundred twenty-five dollars.\n (B) All others. In the case of an unmarried individual, a head of a\nhousehold or a married individual filing a separate return, the credit\nshall be sixty-two dollars and fifty cents.\n (4) For taxable years beginning after two thousand sixteen, the credit\nshall equal the "fixed" amount provided by paragraph (4-a) of this\nsubsection plus the "rate reduction" amount provided by paragraph (4-b)\nof this subsection.\n (4-a) The "fixed" amount of the credit shall be determined as provided\nin this paragraph, provided that any taxpayer with income of more than\ntwo hundred fifty thousand dollars shall not receive such amount.\n (A) Married individuals filing joint returns and surviving spouses. In\nthe case of married individuals who make a single return jointly and of\na surviving spouse, the "fixed" amount of the credit shall be one\nhundred twenty-five dollars.\n (B) All others. In the case of an unmarried individual, a head of a\nhousehold or a married individual filing a separate return, the "fixed"\namount of the credit shall be sixty-two dollars and fifty cents.\n (4-b) The "rate reduction" amount of the credit shall be determined as\nprovided in this paragraph, provided that any taxpayer with income of\nmore than five hundred thousand dollars shall not receive such amount.\n (A) For married individuals who make a single return jointly and for a\nsurviving spouse:\nIf the city taxable income is: The "rate reduction" amount is:\nNot over $21,600 0.171% of the city taxable income\nOver $21,600 but not over $500,000 $37 plus 0.228% of excess over\n $21,600\nOver $500,000 Not applicable\n (B) For a head of household:\nIf the city taxable income is: The "rate reduction" amount is:\nNot over $14,400 0.171% of the city taxable income\nOver $14,400 but not over $500,000 $25 plus 0.228% of excess over\n $14,400\nOver $500,000 Not applicable\n (C) For an unmarried individual or a married individual filing\na separate return:\nIf the city taxable income is: The "rate reduction" amount is:\nNot over $12,000 0.171% of the city taxable income\nOver $12,000 but not over $500,000 $21 plus 0.228% of excess over\n $12,000\nOver $500,000 Not applicable\n (5) Part-year residents. If a taxpayer changes status during the\ntaxable year from resident to nonresident, or from nonresident to\nresident, the school tax reduction credit authorized by this subsection\nshall be prorated according to the number of months in the period of\nresidence.\n (hhh) Life sciences research and development tax credit. (1) Allowance\nof credit. A taxpayer who is eligible pursuant to section forty-three of\nthis chapter shall be allowed a credit to be computed as provided in\nsuch section against the tax imposed by this article.\n (2) Application of credit. If the amount of the credit allowable under\nthis subsection for any taxable year exceeds the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded as provided in section six hundred eighty-six of\nthis article, provided, however, that no interest shall be paid thereon.\n (iii) Credit for contributions to certain funds. For taxable years\nbeginning on or after January first, two thousand nineteen, an\nindividual taxpayer shall be allowed a credit against the tax imposed\nunder this article for an amount equal to eighty-five percent of the sum\nof: (1) the amount contributed by the taxpayer during the immediately\npreceding taxable year to any or all of the following accounts within\nthe charitable gifts trust fund set forth in section ninety-two-gg of\nthe state finance law: the health charitable account established by\nparagraph a of subdivision four of section ninety-two-gg of the state\nfinance law, or the elementary and secondary education charitable\naccount established by paragraph b of subdivision four of section\nninety-two-gg of the state finance law; (2) the amount of qualified\ncontributions made by the taxpayer to Health Research, Inc. in\naccordance with section two of the chapter of the laws of two thousand\neighteen that added this subsection; and (3) the amount of qualified\ncontributions made by the taxpayer to the State University of New York\nImpact Foundation and/or the Research Foundation of the City University\nof New York in accordance with section three of the chapter of the laws\nof two thousand eighteen that added this subsection.\n * (jjj) Employer-provided child care credit. (1) Allowance of credit.\nA taxpayer shall be allowed a credit, to be computed as provided in\nsection forty-four of this chapter, against the tax imposed by this\narticle.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year exceeds the taxpayer's tax for such\nyear, the excess will be treated as an overpayment of tax to be credited\nor refunded in accordance with the provisions of section six hundred\neighty-six of this article, provided, however, that no interest will be\npaid thereon.\n (3) Credit recapture. For provisions requiring recapture of credit,\nsee section forty-four of this chapter.\n * NB There are 3 subsection (jjj)'s\n * (jjj) Recovery tax credit. (1) Allowance of credit. A taxpayer that\nis a qualified employer pursuant to section 32.38 of the mental hygiene\nlaw that has received a certificate of tax credit from the commissioner\nof the office of alcoholism and substance abuse services shall be\nallowed a credit against the tax imposed by this article equal to the\namount shown on such certificate of tax credit. A taxpayer that is a\npartner in a partnership, member of a limited liability company or\nshareholder in an S corporation that has been certified by the\ncommissioner of the office of alcoholism and substance abuse services as\na qualified employer pursuant to section 32.38 of the mental hygiene law\nshall be allowed its pro rata share of the credit earned by the\npartnership, limited liability company or S corporation.\n (2) Overpayment. If the amount of the credit allowed under this\nsubsection for any taxable year exceeds the taxpayer's tax for the\ntaxable year, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, no interest will\nbe paid thereon.\n (3) Tax return requirement. The taxpayer shall be required to attach\nto its tax return, in the form prescribed by the commissioner, proof of\nreceipt of its certificate of tax credit issued by the commissioner of\nthe office of alcoholism and substance abuse services pursuant to\nsection 32.38 of the mental hygiene law.\n * NB There are 3 subsection (jjj)'s\n * (jjj) Central business district toll credit. (1) For taxable years\nbeginning on or after January first, two thousand twenty-one, a resident\nindividual whose primary residence is located in the central business\ndistrict established pursuant to article forty-four-C of the vehicle and\ntraffic law and whose New York adjusted gross income for the taxable\nyear is less than sixty thousand dollars shall be entitled to a credit\nas calculated pursuant to paragraph two of this subsection.\n (2) The credit shall be equal to the aggregate amount of central\nbusiness district tolls paid by the taxpayer during the taxable year\npursuant to the central business district tolling program authorized by\narticle forty-four-C of the vehicle and traffic law. Provided, however,\nthat any toll that would constitute a trade or business expense under\nsection 162 of the internal revenue code shall be excluded.\n (3) If the amount of the credit allowed under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, the excess\nshall be treated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon.\n * NB There are 3 subsection (jjj)'s\n (kkk) Credit for pass-through entity tax. (1) A taxpayer partner or\nmember of an electing partnership and a taxpayer shareholder of an\nelecting S corporation subject to tax under article twenty-four-A of\nthis chapter shall be entitled to a credit against the tax imposed by\nthis article as provided in this subsection. For purposes of this\nsubsection, the terms "electing partnership," "electing S corporation,"\n"pass-through entity tax," and "direct share of pass-through entity tax"\nshall have the same meanings as used in article twenty-four-A of this\nchapter.\n (2) The credit shall be equal to the partner's, member's or\nshareholder's direct share of the pass-through entity tax.\n (3) If a taxpayer is a partner, member or shareholder in multiple\nelecting partnerships and/or electing S corporations subject to tax\npursuant to article twenty-four-A of this chapter, the taxpayer's credit\nshall be the sum of such credits calculated pursuant to paragraph two of\nthis subsection with regard to each entity in which the taxpayer has a\ndirect 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 shall be treated as an overpayment, to be credited\nor refunded, without interest.\n (5) Limitation on credit. No credit shall be allowed to a taxpayer\nunder this subsection unless the electing partnership or electing S\ncorporation provided sufficient information to identify the taxpayer on\nits pass-through entity tax return as required under paragraph two of\nsubsection (c) of section eight hundred sixty-five of this article for\nan electing partnership or paragraph two of subsection (d) of section\neight hundred sixty-five of this article for an electing S corporation.\nThe credit allowed to a taxpayer under this subsection shall not exceed\nthe direct share of pass-through entity tax reported by such electing\npartnership or electing S corporation attributable to such taxpayer on\nthe entity's return filed pursuant to section eight hundred sixty-five\nof this article.\n (lll) Restaurant return-to-work tax credit. (1) Allowance of credit. A\ntaxpayer shall be allowed a credit, to be computed as provided in\nsection forty-six of this chapter, against the tax imposed by this\narticle.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for the taxable year exceeds the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nwill be paid thereon.\n * (mmm) New York city musical and theatrical production tax credit.\n(1) Allowance of credit. A taxpayer shall be allowed a credit, to be\ncomputed as provided in section twenty-four-c of this chapter, against\nthe tax imposed by this article.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for the taxable year exceeds the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nshall be paid thereon.\n * NB Repealed January 1, 2028\n * (nnn) Farm employer overtime credit. (1) A taxpayer shall be allowed\na credit, to be computed as provided in section forty-two-a of this\nchapter, against the tax imposed by this article.\n (2) Application of credit. If the amount of credit allowed under this\nsubsection for any taxable year exceeds the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provision of section six\nhundred eighty-six of this article, provided, however, that no interest\nshall be paid thereon.\n * NB There are 5 sb§ (nnn)'s\n * (nnn) COVID-19 capital costs tax credit. (1) Allowance of credit. A\ntaxpayer shall be allowed a credit, to be computed as provided in\nsection forty-seven of this chapter, against the tax imposed by this\narticle.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for the taxable year exceeds the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nwill be paid thereon.\n * NB There are 5 sb§ (nnn)'s\n * (nnn) Grade no. 6 heating oil conversion tax credit. (1) Allowance\nof credit. A taxpayer shall be allowed a credit, to be computed as\nprovided in section forty-seven of this chapter, against the tax imposed\nby this article.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for the taxable year exceeds the taxpayer's tax for such\nyear, the excess will be treated as an overpayment of tax to be credited\nor refunded in accordance with the provisions of section six hundred\neighty-six of this article, provided, however, that no interest will be\npaid thereon.\n * NB There are 5 sb§ (nnn)'s\n * (nnn) Additional restaurant return-to-work tax credit. (1) Allowance\nof credit. A taxpayer shall be allowed a credit, to be computed as\nprovided in section forty-six-a of this chapter, against the tax imposed\nby this article.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for the taxable year exceeds the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nwill be paid thereon.\n * NB There are 5 sb§ (nnn)'s\n * (nnn) Empire state digital gaming media production credit. (1)\nAllowance of credit. A taxpayer who is eligible pursuant to section\nforty-five of this chapter shall be allowed a credit to be computed as\nprovided in such section forty-five against the tax imposed by this\narticle. Under no circumstances may a single taxpayer receive more than\none million five hundred thousand dollars in tax credits per year.\n (2) Application of credit. If the amount of the credit allowable under\nthis subsection for any taxable year exceeds the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded as provided in section six hundred eighty-six of\nthis article, provided, however, that no interest shall be paid thereon.\n * NB There are 5 sb§ (nnn)'s\n (ooo) Child care creation and expansion tax credit. (1) Allowance of\ncredit. A taxpayer shall be allowed a credit, to be computed as provided\nin section forty-eight of this chapter, against the tax imposed by this\narticle.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for the taxable year exceeds the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nwill be paid thereon.\n * (ppp) Newspaper and broadcast media jobs tax credit. (1) Allowance\nof credit. A taxpayer shall be allowed a credit, to be computed as\nprovided in section forty-nine of this chapter, against the tax imposed\nby this article.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for the taxable year exceeds the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nwill be paid thereon.\n * NB There are 2 sb (ppp)'s\n * (ppp) Commercial security tax credit. (1) Allowance of credit. A\ntaxpayer shall be allowed a credit, to be computed as provided in\nsection forty-nine of this chapter, against the tax imposed by this\narticle.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for the taxable year exceeds the taxpayer's tax for such\nyear, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, that no interest\nwill be paid thereon.\n * NB There are 2 sb (ppp)'s\n (qqq) Inflation refund credit. (1) A taxpayer who meets the\neligibility standards in paragraph two of this subsection shall be\nallowed a credit against the taxes imposed by this article in the amount\nspecified in paragraph three of this subsection for tax year two\nthousand twenty-five.\n (2) To be eligible for the credit, the taxpayer (or taxpayers filing\njoint returns)(a) must have been a full-year resident in the state of\nNew York in tax year two thousand twenty-three, (b) (i) must have had\nNew York adjusted gross income of three hundred thousand dollars or less\nin tax year two thousand twenty-three if they filed a New York state\nresident income tax return as married taxpayers filing jointly or a\nqualified surviving spouse, or (ii) must have had New York adjusted\ngross income of one hundred fifty thousand dollars or less in tax year\ntwo thousand twenty-three if they filed a New York state resident income\ntax return as a single taxpayer, married taxpayer filing a separate\nreturn, or head of household, and (c) must not have been claimed as a\ndependent by another taxpayer in tax year two thousand twenty-three.\n (3) Amount of credit. (a) For taxpayers who meet the eligibility\nstandards in paragraph two who filed a New York state resident income\ntax return as married taxpayers filing jointly or a qualified surviving\nspouse, (i) with New York adjusted gross income of greater than one\nhundred fifty thousand dollars but no greater than three hundred\nthousand dollars in tax year two thousand twenty-three, the credit\namount shall be three hundred dollars, or (ii) with New York adjusted\ngross income of no greater than one hundred fifty thousand dollars in\ntax year two thousand twenty-three, the credit amount shall be four\nhundred dollars, and (b) for taxpayers who meet the eligibility\nstandards in paragraph two who filed a New York state resident income\ntax return as a single taxpayer, married taxpayer filing a separate\nreturn, or head of household, (i) with New York adjusted gross income of\ngreater than seventy-five thousand dollars but no greater than one\nhundred fifty thousand dollars in tax year two thousand twenty-three,\nthe credit amount shall be one hundred fifty dollars, or (ii) with New\nYork adjusted gross income of no greater than seventy-five thousand\ndollars in tax year two thousand twenty-three, the credit amount shall\nbe two hundred dollars.\n (4) The amount of the credit shall be treated as an overpayment of tax\nto be credited or refunded in accordance with the provisions of section\nsix hundred eighty-six of this article, provided, however, that no\ninterest shall be paid thereon. The commissioner shall determine the\ntaxpayer's eligibility for this credit utilizing the information\navailable to the commissioner on the taxpayer's personal income tax\nreturn filed for tax year two thousand twenty-three. For those taxpayers\nwhom the commissioner has determined eligible for this credit, the\ncommissioner shall advance a payment in the amount specified in\nparagraph three of this subsection. A taxpayer who failed to receive an\nadvance payment that they believe was due, or who received an advance\npayment that they believe is less than the amount that was due, may\nrequest payment of the claimed deficiency in a manner prescribed by the\ncommissioner.\n (rrr) Semiconductor research and development tax credit. (1) Allowance\nof credit. A taxpayer that has been approved by the commissioner of\neconomic development to participate in the semiconductor research and\ndevelopment tax credit program and has been issued a certificate of tax\ncredit pursuant to section three hundred fifty-nine-e of the economic\ndevelopment law shall be allowed to claim a credit against the tax\nimposed by this article. The credit shall equal up to fifteen percent of\nthe cost or other basis for federal income tax purposes of the qualified\ninvestment and shall be allowable in each taxable year for which the\ncommissioner of economic development has issued a certificate of tax\ncredit, for up to ten consecutive taxable years. In no event shall a\ntaxpayer be allowed a credit greater than the amount listed on the\ncertificate of tax credit issued by the commissioner of economic\ndevelopment. In the case of a taxpayer who is a partner in a\npartnership, member of a limited liability company or shareholder in an\nS corporation, the taxpayer shall be allowed its pro rata share of the\ncredit earned by the partnership, limited liability company or S\ncorporation. No cost or expense paid or incurred by the taxpayer that is\nthe basis for this credit shall be the basis for any other tax credit\nprovided by this chapter.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year exceeds the taxpayer's tax for the\ntaxable year, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, no interest will\nbe paid thereon.\n (3) Reporting. The taxpayer shall attach to its tax return its\ncertificate of tax credit issued by the commissioner of economic\ndevelopment pursuant to section three hundred fifty-nine-e of the\neconomic development law. In no event shall the taxpayer be allowed a\ncredit greater than the amount of the credit listed on the certificate\nof tax credit, or in the case of a taxpayer who is a partner in a\npartnership, a member of a limited liability company, or shareholder in\nan S corporation, its pro rata share of the amount of credit listed on\nthe certificate of tax credit.\n (4) Credit recapture. If a certificate of eligibility or a certificate\nof tax credit issued by the department of economic development under\narticle seventeen-A of the economic development law is revoked by such\ndepartment because the taxpayer does not meet the eligibility\nrequirement set forth in subdivision six of section three hundred\nfifty-nine-c of economic development law, the amount of credit described\nin this subdivision and claimed by the taxpayer prior to that revocation\nshall be added back to tax in the taxable year in which any such\nrevocation becomes final.\n (sss) Semiconductor workforce training program tax credit. (1)\nAllowance of tax credit. A taxpayer that has been approved by the\ncommissioner of economic development to participate in the semiconductor\nworkforce training program and has been issued a certificate of tax\ncredit pursuant to section five hundred three of the economic\ndevelopment law shall be allowed to claim a credit against the tax\nimposed by this article. The credit shall equal seventy-five percent of\nwages, salaries or other compensation, training costs, and wrap around\nservices, up to a credit of twenty-five thousand dollars per employee\nreceiving eligible training, up to one million dollars per eligible\nnon-semiconductor manufacturing business and up to five million dollars\nper eligible semiconductor manufacturing business pursuant to\nsubdivision three of section five hundred three of the economic\ndevelopment law. In no event shall a taxpayer be allowed a credit\ngreater than the amount listed on the certificate of tax credit issued\nby the commissioner of economic development. In the case of a taxpayer\nwho is a partner in a partnership, member of a limited liability company\nor shareholder in an S corporation, the taxpayer shall be allowed its\npro rata share of the credit earned by the partnership, limited\nliability company or S corporation. The credit shall be allowed in the\ntaxable year in which the eligible training is completed. No cost or\nexpense paid or incurred by the taxpayer that is the basis for this\ncredit shall be the basis for any other tax credit provided by this\nchapter.\n (2) Application of credit. If the amount of the credit allowed under\nthis subsection for any taxable year exceeds the taxpayer's tax for the\ntaxable year, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section six\nhundred eighty-six of this article, provided, however, no interest will\nbe paid thereon.\n (3) Reporting. The taxpayer shall attach to its tax return its\ncertificate of tax credit issued by the commissioner of economic\ndevelopment pursuant to section five hundred three of the economic\ndevelopment law. In no event shall the taxpayer be allowed a credit\ngreater than the amount of the credit listed on the certificate of tax\ncredit, or in the case of a taxpayer who is a partner in a partnership,\na member of a limited liability company, or shareholder in an S\ncorporation, its pro rata share of the amount of credit listed on the\ncertificate of tax credit.\n (4) Credit recapture. If a certificate of eligibility or a certificate\nof tax credit issued by the department of economic development under\narticle twenty-eight of the economic development law is revoked by such\ndepartment because the taxpayer does not meet the eligibility\nrequirement set forth in subdivision three of section five hundred three\nof the economic development law, the amount of credit described in this\nsubsection and claimed by the taxpayer prior to that revocation shall be\nadded back to tax in the taxable year in which any such revocation\nbecomes final.\n (ttt) Organ donation credit. (1) For taxable years beginning on or\nafter January first, two thousand twenty-five, a full-year resident\ntaxpayer who, while living, donates one or more of their human organs to\nanother human being for human organ transplantation will be allowed a\ncredit against the taxes imposed by this article in the amount specified\nin paragraph two of this subsection. For purposes of this paragraph,\n"human organ" means all or part of a liver, pancreas, kidney, intestine,\nlung, or bone marrow.\n (2) A taxpayer may claim the credit allowed under this subsection only\nonce and in the taxable year in which the human organ transplantation\noccurs. Such credit may be claimed, in an amount not to exceed ten\nthousand dollars, for only the following unreimbursed expenses that are\nincurred by the taxpayer and related to the taxpayer's organ donation:\n (A) travel expenses;\n (B) lodging expenses; and\n (C) lost wages.\nProvided, however, that this credit shall not apply to any organ\ndonation for which the taxpayer has received benefits under section\nforty-three hundred seventy-one of the public health law.\n (3) If the amount of the credit allowed under this subsection for any\ntaxable year shall exceed the taxpayer's tax for such year, the excess\nshall be treated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section six hundred eighty-six of this\narticle, provided, however, that no interest shall be paid thereon.\n (vvv) Empire state apprenticeship tax credit. (1)(A) A taxpayer that\nhas been certified by the commissioner of labor as a certified employer\npursuant to section twenty-five-c of the labor law shall be allowed a\ncredit against the tax imposed by this article equal to the amount\nspecified under subdivision (c) of section twenty-five-c of the labor\nlaw. In no event shall the taxpayer be allowed a credit greater than the\namount of the credit listed on the final certificate of tax credit.\n (B) A taxpayer that is a partner in a partnership, member of a limited\nliability company or shareholder in an S corporation that has been\ncertified by the commissioner of labor as a certified employer pursuant\nto section twenty-five-c of the labor law shall be allowed its pro rata\nshare of the credit earned by the partnership, limited liability company\nor S corporation.\n (2) If the amount of the credit allowed under this subsection exceeds\nthe taxpayer's tax for the taxable year, any amount of credit not\ndeductible in that taxable year will be treated as an overpayment of tax\nto be credited or refunded in accordance with the provisions of section\nsix hundred eighty-six of this article. Provided, however, no interest\nwill be paid thereon.\n (yyy) Order of credits. Credits allowable under this article which\ncannot be carried over and which are not refundable shall be deducted\nfirst. Credits allowable under this article which can be carried over,\nand carryovers of such credits, shall be deducted next, and among such\ncredits, those whose carryover is of limited duration shall be deducted\nbefore those whose carryover is of unlimited duration. Credits allowable\nunder this article which are refundable shall be deducted last.\n (zzz) Cross references.--For credit in respect of:\n (1) taxes withheld on wages, see section six hundred seventy-three,\n (2) taxes imposed on a resident by other states, see section six\nhundred twenty,\n (3) taxes overpaid for a prior taxable year, see section six hundred\neighty-six,\n (4) taxes paid by a trust for a prior taxable year on income\nsubsequently distributed, see sections six hundred twenty-one and six\nhundred thirty-five.\n