START-UP NY: metropolitan commuter transportation mobility tax (MCTMT) exemption for self-employed individuals (including partners)

The metropolitan commuter transportation mobility tax (MCTMT) exemption eliminates the MCTMT on your net earnings from self-employment attributable to your approved business location within the Metropolitan Commuter Transportation District (MCTD) for a tax benefit period of 10 consecutive years. The exemption begins with the tax year the approved business locates in the tax-free NY area.

How to compute your MCTMT and claim the exemption

You must still report your annual MCTMT information if your total net earnings from self-employment allocated to the MCTD Zone 1 or Zone 2 (both including earnings inside and outside the tax-free NY area) exceed $50,000 for the tax year. However, your net earnings attributable to the tax-free NY area within the MCTD Zone 1 or Zone 2 are excluded from the computation of your MCTMT liability.

Complete Form IT-6-SNY, Metropolitan Commuter Transportation Mobility Tax (MCTMT) for START-UP NY, to report the amount of net earnings from self-employment earned in the tax-free NY area(s) within Zone 1 or Zone 2 of the MCTD. See the Metropolitan commuter transportation mobility tax (MCTMT) individual definitions for more information.

Any remaining net earnings subject to the MCTMT, not earned in a tax-free NY area in Zone 1 or Zone 2, will be reported on your New York State personal income tax return, lines 54a and 54b of Form IT-201, Resident Income Tax Return, or lines 52b and 52c of Form IT-203, Nonresident and Part-Year Resident Income Tax Return.