Cross-article tax credits

Cross-article tax credits

Many of the tax credits New York State offers are available to taxpayers regardless of the tax article to which they are subject. This section provides descriptions of these credits and notes where there may be article-specific differences. The section also provides an estimate for the credit under each article where it is available. Credits that are only available under one tax article are reported in their respective section.

Some credits contained in this section can no longer be earned in the current year. They are retained in this report, however, because taxpayers possess a large, unused reserve of certain credits that can be carried forward and applied against future tax liabilities. These credits can be identified by looking at the effective dates included for each credit.

1. Investment tax credit and employment incentive credit

a. Investment tax credit

Citation: Tax Law §§ 210-B(1), 606(a), a-1

Credit type: Refundable to new businesses and eligible farmers only

Effective date of credit: Effective for tax years beginning on or after January 1, 1969; the sections of this credit covering research and development research and development property and pollution control facilities represent a consolidation of previously separate tax benefits and are effective for tax years beginning on or after January 1, 1987

Description: The law allows a credit based on the cost or other basis for federal tax purposes of depreciable tangible personal property, including buildings and their structural components, acquired, constructed, reconstructed, or erected after December 31, 1968, having a useful life of four years or more, located within the State of New York, and used primarily for the production of goods by a variety of processes. The claiming of a depreciation or expense deduction for such property under certain other tax provisions, or the leasing of the property to another individual or corporation, unless explicitly allowed, disqualifies the taxpayer from exercising a claim under this provision. A taxpayer may carry forward any unused credit and apply it against the tax for subsequent years or, in the case of a qualified new business, claim it as a refund. For tax years 2023 through 2027, the investment tax credit will be fully refundable for eligible farmers. The refundability only applies to credit claimed for property placed in service on or after January 1, 2023, and before January 1, 2028. Eligible farmers may continue to carry over existing credit for property placed in service prior to January 1, 2023, however such amounts of credit remain nonrefundable.

Taxpayers who provide three or more services, such as a studio lighting grid, lighting and grip equipment, or industrial scale electrical capacity to qualified film productions are eligible to claim the investment tax credit on property used in the qualified film production facility.

The law allows a credit for expenditures paid or incurred during the tax year for the construction, reconstruction, erection, or improvement of pollution control, waste treatment, and acid rain control facilities. To qualify for the credit, facilities must be located within the State, used in regular business activities, and certified by the New York State Commissioner of Environmental Conservation.

Tangible property, including buildings and structural components of buildings used for the purpose of research and development in the laboratory or experimental sense is eligible for a higher credit rate. However, credit is not allowed with respect to property that has been leased to another individual or corporation, or that has been the basis of a claim for an elective expense deduction or a regular investment tax credit. Furthermore, the credit is not allowed with respect to tangible personal property and other tangible property principally used by the taxpayer in the production or distribution of electricity, natural gas after extraction from wells, steam, or water delivered through a pipe.

• Personal income tax filers: The credit rate equals 4 percent of the investment credit base. The taxpayer may claim a rate of 7 percent on research and development property but is not allowed to also claim the employment incentive credit. For a taxpayer that is an eligible farmer, they may claim a rate of 20 percent for property placed in service on or after April 1, 2022 that is principally used by the farmer in the production of goods by farming, agriculture, horticulture, floriculture, or viticulture. Where the allowable credit exceeds the taxpayer’s liability for a given year, the taxpayer may carry forward the excess credit for 10 subsequent tax years. In the case of a new business or an eligible farmer who claims credit for property placed in service after January 1, 2023, and before January 1, 2028, excess credit may be received as a refund.
• Corporate franchise tax filers: The credit rate equals 5 percent of the first $350 million of the investment credit base. A 4 percent rate applies to amounts above $350 million. The taxpayer may claim a rate of 9 percent on research and development property but is not allowed to also claim the employment incentive credit. For a taxpayer that is an eligible farmer, they may claim a rate of 20 percent for property placed in service on or after April 1, 2022 that is principally used by the farmer in the production of goods by farming, agriculture, horticulture, floriculture, or viticulture. Where the allowable credit exceeds the taxpayer’s liability for a given year, the taxpayer may carry forward the excess credit for 15 subsequent tax years. In the case of a new business or an eligible farmer who claims credit for property placed in service after January 1, 2023 and before January 1, 2028, excess credit may be received as a refund.

Note: When qualified investment tax credit property is disposed of or ceases to be in qualified use prior to the end of its useful life, a portion of the credit must be recaptured. Any investment tax credit recapture may be added to the tax otherwise due in the year of disposition or disqualification.

b. Employment incentive credit

Citation: Tax Law §§ 210-B(2), 606(a-1)

Credit type: Corporate franchise tax - nonrefundable/carryforward; personal income tax—refundable to new businesses only

Effective date of credit: Effective for tax years beginning on or after January 1, 1987, for corporate franchise taxpayers; January 1, 1997, for personal income taxpayers

Description: Taxpayers that increase employment may be eligible for the employment incentive credit, which is allowed for each of the two years succeeding the taxable year in which the investment tax credit is earned. The amount of the credit is as follows:

• 1.5 percent of the investment tax credit base if employment is at least 101 percent but less than 102 percent of the employment base year;
• 2.0 percent of the investment tax credit base if employment is at least 102 percent but less than 103 percent of the employment base year;
• 2.5 percent of the investment tax credit base if employment is at least 103 percent of the employment base year.

Note: As part of corporate tax reform, passed in the SFY 2014-15 Enacted Budget, the rehabilitation credit for historic barns and the retail enterprise tax credit were eliminated under Article 9-A (the corporate franchise tax). These credits are still available under the personal income tax, but information on the amount of credits used and refunded in any year is not separately available.

2. Investment tax credit for the financial services industry

Citation: Tax Law §§ 210-B(1), 606(a)(2)(A), 1511(q)

Credit type: Refundable to new businesses only

Effective date of credit: Personal income tax/corporate franchise tax—effective for property placed in service on or after October 1, 1998, and before October 1, 2015; insurance—available for property placed in service on or after January 1, 2002, and before October 1, 2015.

Description: An investment tax credit and employment incentive credit are allowed for qualified property used in the financial services industry and employment increases respectively. The rate of credit, maximum amounts, refund/carryforward provisions, and recapture rules are generally the same as for the regular investment tax credit/employment incentive credit available under the corporate franchise and personal income taxes.

Qualified property includes property principally used in the ordinary course of the taxpayer’s trade or business:

• as a broker or dealer in connection with the purchase or sale of stocks, bonds, or other securities [as defined in Internal Revenue Code § 475(c)(2)], or of commodities [as defined in Internal Revenue Code § 475(e)], or in providing lending, loan arrangement, or loan origination services to customers in connection with the purchase or sale of securities as defined in Internal Revenue Code § 475(c)(2);
• of providing investment advisory services for a regulated investment company as described in Internal Revenue Code § 851; or
• as an exchange registered as a national securities exchange (such as the New York Stock Exchange) or a board of trade defined under the New York Not-For-Profit Corporation Law, or an entity wholly owned by one or more national security exchanges or boards of trade that provides automation or technical services to the national security exchanges or boards of trade.

Property purchased by a taxpayer affiliated with a regulated broker, dealer, registered investment advisor, or national securities exchange or board of trade, or property leased by a taxpayer to an affiliated regulated broker, dealer, registered investment advisor, national securities exchange, or board of trade is eligible for this credit if the property is used by the affiliate in an activity described above.

Taxpayers must also satisfy an annual employment test that measures New York State employment in the current tax year against one of three standards:

• 80% current-year test: 80% or more of the employees performing the administrative and support functions resulting from or relating to the qualifying uses of the property are located in New York State;
• 95% three-year back-office test: The average number of employees located in New York State performing the administrative and support functions resulting from or related to the qualifying uses of such equipment during the tax year is equal to or greater than 95% of the number during the 36 months immediately preceding the year for which the credit is claimed; or
• 90% end-of-year test: The number of New York State employees during the current tax year is equal to or greater than 90 percent of the number on December 31, 1998 or, if the taxpayer was not a calendar year taxpayer in 1998, the last day of its first taxable year ending after December 31, 1998.

3. Special additional mortgage recording tax credit

Citation: Tax Law §§ 187, 210-B(9, 27), 606(f)(3), 1511(e)

Credit type: Nonrefundable/carryforward (refundable under personal income tax/corporate franchise tax for certain residential mortgages only)

Effective date of credit: Corporate franchise tax/bank/insurance/corporation—effective for tax years beginning after December 31, 1978; personal income tax—effective for tax years beginning after 2003

Description: Taxpayers may claim a credit equal to the special additional mortgage recording tax paid on certain mortgages. The credit is not available for special additional tax paid on mortgages of real property principally improved by one or more structures containing in the aggregate not more than six residential dwelling units, each dwelling unit having its own separate cooking facilities, where the real property is located in one or more of the counties comprising the Metropolitan Commuter Transportation District or Erie County.

Effective for special additional mortgage recording tax paid in tax years beginning after January 1, 1994, an S corporation could elect to treat the unused portion of the credit as either a refund or carryforward instead of passing the credit through to shareholders. S corporations could also elect to take a refund regardless of whether the credit is carried from a New York C year or a New York S year. Under Tax Law, Article 9-A, credit earned on or after January 1, 2015, is refundable for certain residential mortgages.

4. Empire Zone, Qualified Empire Zone Enterprise, and zone equivalent area tax credits

The Empire Zones Program expired on June 30, 2010. No new entrants will be admitted to the Program, but existing participants can continue to earn credits for several years. Taxpayers will be allowed to utilize the remainder of their five-year period for the Empire Zone wage tax credit and the remainder of their benefit period for the Qualified Empire Zone Enterprise credits (15 or 10 years, depending on the date of first certification). Taxpayers will be allowed to earn additional Empire Zone investment tax credit until April 1, 2014, but qualified investment projects can earn Empire Zone income tax credit for their next nine tax years. The Empire Zone employment incentive credit will be fully available for the three years after an Empire Zone income tax credit is claimed if the taxpayer meets the requisite employment tests. Finally, taxpayers can continue to earn the Empire Zone capital credit through March 31, 2014, for certified contributions in fulfillment of a pledge made to an Empire Zone community development project.

a. Empire Zone investment tax credit and Empire Zone employment incentive credit

Citation: Tax Law §§ 210-B(3), 210-b(4), 606(j), 606(j-1)

Credit type: 1) Empire Zone investment tax credit—50 percent refundable to new businesses only; 2) Empire Zone employment incentive credit—nonrefundable/carryforward for corporate taxpayers; and 3) Empire Zone employment incentive credit—50 percent refundable to new businesses only for personal income taxpayers

Effective date of credit: Personal income tax/corporate franchise tax—effective for tax years beginning on or after January 1, 1986

Description: Taxpayers may qualify for an enhanced Empire Zone investment tax credit equal to a percentage of the cost or other federal basis of tangible personal property, including buildings and structural components of buildings, located within a designated Empire Zone. The credit is also available to taxpayers in the financial services industry and contains the same rules and qualifications as the regular financial services investment tax credit. The credit rate is 10 percent for corporate taxpayers and 8 percent for personal income taxpayers.

Taxpayers may also claim an Empire Zone employment incentive credit similar to the regular employment incentive credit, based upon Empire Zone investment tax credit claimed and employment increased within an Empire Zone. The amount of the Empire Zone employment incentive credit allowed is 30 percent of the Empire Zone investment tax credit for each of the three years following the year for which the original Empire Zone investment tax credit was allowed. The Empire Zone employment incentive credit is allowed only for those years during which the average number of employees (except general executive officers) in the Empire Zone is at least 101 percent of the average number of employees (except general executive officers) in the Empire Zone during the tax year immediately preceding the tax year for which the original Empire Zone investment tax credit was allowed.

b. Empire Zone/zone equivalent areas wage tax credit

Citation: Tax Law §§ 210-B(46), 606(k), 1511(g)

Credit type: 50 percent refundable to new business only

Effective date of credit: Personal income tax/corporate franchise tax/insurance—effective for tax years beginning on or after January 1, 1986

Description: A taxpayer may claim an Empire Zone wage tax credit for doing business and creating full-time jobs in an Empire Zone. The credit equals the product of the average number of newly hired targeted Empire Zone employees receiving Empire Zone wages multiplied by $3,000. The corresponding credit amount for non-targeted employees is $1,500. Taxpayers certified in investment zones may claim an additional $500 for each employee paid over $40,000 in wages. The Empire Zone wage tax credit is available for five years. Taxpayers employing individuals in areas that met Empire Zone eligibility criteria but were not so designated - zone Equivalent Areas - could claim a credit for zone equivalent area wages paid for full-time employment in jobs created in the zone equivalent area. The zone equivalent area credit expired in 2004, but taxpayers are allowed to use carryforwards until exhausted. The total wage tax credit cannot exceed 50 percent of tax due before credits.

Note: Excess amounts of Empire Zone investment tax credit—and Empire Zone wage tax credit are 50 percent refundable to new business taxpayers or taxpayers designated as owners of a qualified investment project (QUIP) or a significant capital investment project (SCIP). Owners of qualified investment project or significant capital investment project may also refund 50 percent of excess Empire Zone-employment incentive credit.

c. Empire Zone capital credit

Citation: Tax Law §§ 210-B(46), 606(l), 1511(h)

Credit type: Nonrefundable/carryforward

Effective date of credit: Effective for tax years beginning on or after January 1, 1986

Description: Taxpayers may qualify for a credit for direct equity investments in certified zone businesses and contributions to community development projects. The credit equals 25 percent of the sum of each type of investment. The maximum credit per taxpayer is $100,000 for each investment type for an aggregate limit of $200,000 and cannot exceed one half of the taxpayer’s pre-credit tax. Taxpayers may carry unused credits forward indefinitely.

d. Qualified Empire Zone Enterprise real property tax credit

Citation: Tax Law §§ 14, 15, 210-B(5), 606(bb), 1511(r)

Credit type: Refundable

Effective date of credit: Personal income tax/corporate franchise tax/insurance—effective for tax years beginning on or after January 1, 2001

Description: For taxpayers certified prior to April 1, 2005, the Qualified Empire Zone Enterprise real property tax credit is the product of three factors. The benefit period factor is 1.0 in the first ten years of certification, declining by 0.2 each year thereafter. The employment increase factor is based upon the Qualified Empire Zone Enterprise’s job growth. The final factor is the Qualified Empire Zone Enterprise’s real property taxes for the current tax year.

For taxpayers certified on or after April 1, 2005, and located in an Investment Zone, the credit equals 25 percent of the wages and health and retirement benefits of net new employees. Taxpayers located in a Development Zone use the same formula but include an additional factor, the Development Zone employment increase factor, scaled to reward greater job increases. The credit can exceed these amounts if the capital investment limitation is greater, but the credit is capped at the amount of real property taxes.

Taxpayers certified on or after April 1, 2009, must reduce the computed credit amount by 25 percent.

e. Qualified Empire Zone Enterprise tax reduction credit

Citation: Tax Law §§ 14, 16, 210-B(6), 606(cc), 1511(s)

Credit type: Nonrefundable/non-carryforward

Effective date of credit: Effective for tax years beginning on or after January 1, 2001

Description: The Qualified Empire Zone Enterprise tax reduction credit is the product of four factors: the benefit period factor, the employment increase factor, the zone allocation factor, and the tax factor. The first two factors are discussed above. The zone allocation factor measures the Qualified Empire Zone Enterprise’s economic presence in the zone. The tax factor depends on the type of filer:

Qualified Empire Zone Enterprise tax reduction credit tax factor

Tax type	For tax years beginning on or after January 1, 2016, the tax factor is:
Personal income tax	The amount of personal income tax attributable to allocated Qualified Empire Zone Enterprise income
Corporate franchise tax	The Qualified Empire Zone Enterprise’s tax on the business income base
Insurance tax	The greater of the Qualified Empire Zone Enterprise tax on the entire net income or entire net income plus compensation bases

For corporate franchise taxpayers located entirely within an Empire Zone, the tax reduction credit can be applied against the fixed dollar minimum tax, potentially reducing a taxpayer’s liability to zero.

5. Farmers’ School tax credit

Citation: Tax Law §§ 210-B(11), 606(n)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 1997

Description: Taxpayers primarily engaged in farming may claim a credit equal to 100 percent of total school property taxes paid on qualified New York agricultural property up to 350 acres, and 50 percent of the school taxes paid on acres in excess of 350. To be eligible, taxpayers must earn two-thirds of their federal income from farming, with three-year income averaging allowed in determining this threshold. Recapture provisions apply if the taxpayer converts the property to a nonqualified use in the two years subsequent to first use of the credit.

• Personal income tax filers: For purposes of this test, total gross income is reduced by the sum (not to exceed $30,000) of earned income, pensions, Social Security, interest, and dividends. The credit begins to phase out for taxpayers with New York adjusted gross income in excess of $200,000, after subtracting principal on farm indebtedness, and is phased out completely at $300,000.
• Corporate franchise tax filers: The credit begins to phase out for taxpayers with New York entire net income in excess of $200,000 and is phased out completely at $300,000. Shareholders may elect to claim their pro rata share of the corporation’s income and principal payments on farm indebtedness when determining the farmers’ school tax credit. In such instances, the corporation does not claim any credit.

6. Credit for employment of persons with disabilities

Citation: Tax Law §§ 187-a, 210-B(12), 606(o), 1511(j)

Credit type: Nonrefundable/carryforward

Effective date of credit: Effective for tax years beginning on or after January 1, 1998, applicable to individuals who begin work on or after January 1, 1997

Description: Employers may claim a credit equal to 35 percent of the first $6,000 of first year wages paid to employees with disabilities (a maximum of $2,100 per employee). However, if the first year’s wages qualify for the federal work opportunity tax credit, the New York credit will apply to second year wages. To be eligible for the state credit, the disabled employee must work for the employer on a full-time basis for at least 180 days or 400 hours and must be certified by the State Department of Education or another designated state agency. Visually handicapped individuals may receive certification from the appropriate agency responsible for vocational rehabilitation of the blind and visually impaired.

7. Qualified emerging technology company credits

a. Qualified emerging technology company capital tax credit

Citation: Tax Law §§ 210-B(8), 606(r)

Credit type: Nonrefundable/carryforward

Effective date of credit: Effective for tax years beginning on or after January 1, 1999

Description: Taxpayers who make a qualified investment in a certified qualified emerging technology company can receive a credit that varies depending upon how long the investment is held. Taxpayers claim the credit in the year the investment is made and certify the duration of the holding period. Investments held for four years from the close of the tax year in which the credit is first claimed qualify for a 10 percent credit. Investments held for nine years qualify for a 20 percent credit. If the property is sold, transferred, or disposed of prior to the end of the holding period, the taxpayer must recapture a portion of the credit. The aggregate limits for all years are $150,000 for the 10 percent credit, and $300,000 for the 20 percent credit. The amount of credit deducted may not exceed 50 percent of the tax due before any credits.

b. Qualified emerging technology company employment credit

Citation: Tax Law §§ 210-B(7), 606(q)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 1999

Description: A qualified emerging technology company may claim a credit equaling $1,000 for each individual employed over a base year level. Credit is allowed for three years.

8. Low-income housing credit

Citation: Tax Law §§ 18, 210-B(15), 606(x), 1511(n)

Credit type: Nonrefundable/carryforward

Effective date of credit: Effective for tax years beginning on or after January 1, 2000, with respect to commitments for construction of low-income housing agreed upon on or after May 15, 2000

Description: The New York State Low-Income Housing Tax Credit Program, based on the existing federal program, requires an agreement between the taxpayer and the commissioner of the New York State Division of Housing and Community Renewal for a long-term commitment to low-income housing. The amount of the credit is determined by New York State Division of Housing and Community Renewal and depends on the applicable percentage of the qualified basis of each low-income building. The credit amount allocated is allowed as a credit against tax for 10 tax years. Beginning in 2019, for buildings that receive an allocation of low-income housing credit on or after January 1, 2019, the Public Housing Law allows a one-time transfer of the credit to a person or entity without regard to the allocation of the federal low-income housing credit and notwithstanding that the recipient may have no ownership interest in the building.

9. Credit for purchase of an automated external defibrillator

Citation: Tax Law §§ 210-B(13), 606(s), 1511(l)

Credit type: Nonrefundable/non-carryforward

Effective date of credit: Effective for tax years beginning on or after January 1, 2001

Description: Taxpayers may claim a credit for the purchase of an automated external defibrillator, as defined in Public Health Law § 3000-b. The amount of credit equals the cost of each unit, up to a maximum of $500 per defibrillator.

10. Green buildings credit

Citation: Tax Law §§ 19, 187-d, 210-B(16), 606(y), 1511(o)

Credit type: Nonrefundable/carryforward

Effective date of credit: Effective for taxable years beginning on or after January 1, 2001

Description: The green building credit consists of several incentives for the purchase of recyclable building materials and other environmentally preferable tangible personal property. It also contains components for the purchase of fuel cells, photovoltaic modules, and environmentally sensitive non-ozone depleting refrigerants. Phase I authorized $25 million in credit for costs incurred on or after June 1, 1999, for property placed in service or that received a final certificate of occupancy in tax years from January 1, 2001, to 2004. Phase II of the program began in the 2005 tax year. An additional $25 million in total credit could be issued, but the amount on any one credit certificate was limited to $2 million.

11. Long-term care insurance credit

Citation: Tax Law §§ 190, 210-B(14), 606(aa), 1511(m)

Credit type: Nonrefundable/carryforward

Effective date of credit: Effective for tax years beginning on or after January 1, 2002

Description: Taxpayers may take a credit equal to a percentage of the premiums paid for the purchase of, or continuing coverage under, a long-term care insurance policy approved by the New York State Department of Financial Services. When enacted, the credit rate was 10 percent. Subsequent legislation increased the credit to 20 percent for tax years beginning after 2003. For New York resident taxpayers in tax years beginning on or after January 1, 2020, the credit is restricted to returns with New York adjusted gross income of less than $250,000 and is limited to $1,500.

12. Empire State film and commercial credits

a. Empire State film production credit

Citation: Tax Law §§ 24, 210-B(20), 606(gg),

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2004, and before January 1, 2035

Description: Taxpayers satisfying a threshold level of film production activity in New York State may claim the Empire State film production credit. The credit is equal to 30 percent of qualified production costs incurred in the production of films and certain television shows. For initial applications received prior to April 1, 2023, and on or after April 1, 2020, the allowable amount of the credit was 25 percent. For tax years 2015 through 2034, Empire State film production and post-production projects are eligible for an additional credit equal to 10 percent of the wages or salaries of individuals employed by a qualified film or independent film production company for services performed in specific upstate New York counties. Credit is awarded on a first come, first served basis with applications made to the New York State Governor’s Office for Motion Picture and Television Development.

The annual amount of credit that can be allocated by the New York State Governor’s Office for Motion Picture and Television Development is $420 million in 2010 through 2023. For tax years 2024 through 2034, the annual funding cap is increased to $700 million. Initially, up to $7 million of the annual allocation was available for the Empire State film post-production credit. Starting in 2015, the amount of the allocation dedicated to the post-production credit increased to $25 million annually. For tax years 2024 through 2034, the annual allocation is increased to $45 million. The New York State Governor’s Office for Motion Picture and Television Development has the authority to redirect Empire State film post-production credit funds to the film credit if there are insufficient claims for the post-production credit and applications for the film production credit exceed the allotted total. For tax years prior to January 1, 2008, the film credit was refundable across two years. For tax years starting in 2008, the credit was fully refundable. For tax years beginning on or after January 1, 2009, the utilization of the credit is spread across several years, depending on the size of the credit:

Amount of Empire State film production credit

If the amount of the credit is:	Then the film credit is claimed:
under $1 million	in the taxable year in which the film is completed
at least $1 million but less than $5 million	over a two-year period, with half claimed each year
at least $5 million	over a three-year period, with one-third claimed each year

Taxpayers awarded credit from the 2010–2022 allocations claim credit in the later of the tax year the production of the qualified film is completed or the first taxable year beginning immediately after the allocation year for which the taxpayer was awarded credit. For initial applications received on or after April 1, 2023, credit may be claimed in the later of the tax year the production of the qualified film is completed or the taxable year that includes the last day of the allocation year for which the film has been allocated credit by New York State Empire State Development. 

b. Empire State film post-production credit

Citation: Tax Law §§ 31, 210-B(32), 606(qq)

Credit type: Refundable—over 2 years

Effective date of credit: Effective for tax years beginning on or after August 11, 2010, and before January 1, 2035

Description: Companies that are ineligible for the film production credit may qualify for the film post-production credit. To be eligible for the post-production credit, the costs incurred at a qualified post-production facility, generally a facility in New York State, must equal or exceed 75 percent of the total post-production costs at any post-production facility. The credit is allowed for the taxable year in which the production of the qualified film is completed. However, as of March 28, 2013, the utilization of the credit is subject to the same rules as the film credit.

The credit is administered by the Governor’s Office for Motion Picture and Television Development and was initially capped at $7 million per year (total allocation of $35 million) through tax year 2014. Starting in 2015, the amount of the allocation dedicated to the Empire State film post-production credit was increased to $25 million annually. For tax years 2024 through 2034, the annual allocation is increased to $45 million.

As enacted, the credit equaled 10 percent of qualified post-production costs paid in the production of a qualified film at a qualified post-production facility. Applications received after July 24, 2012, were eligible for increased credit rates. The credit equaled 30 percent for work in the Metropolitan Commuter Transportation District and 35 percent for work outside of the Metropolitan Commuter Transportation District. Beginning April 1, 2020, the allowable amount of credit was reduced from 30 percent to 25 percent for qualified films produced at qualified post-production facilities located within the Metropolitan Commuter Transportation District and from 35 percent to 30 percent for qualified films produced at qualified post-production facilities located elsewhere in New York State. For initial applications received on or after April 1, 2023, the post-production credit rate is increased from 30 percent to 35 percent for qualified post-production facilities located outside the Metropolitan Commuter Transportation District and from 25 percent to 30 percent for work at qualified post-production facilities located within the Metropolitan Commuter Transportation District.

For tax years 2015 through 2034, Empire State film production and post-production projects are eligible for an additional credit equal to 10 percent of the wages or salaries of individuals directly employed (excluding those employed as writers, directors, composers, producers and performers) by a qualified film or independent film production company for services performed by those individuals in specific upstate New York counties in connection with a qualified film with a minimum budget of $500,000.

c. Empire State commercial production credit

Citation: Tax Law §§ 28, 210-B(23), 606(jj)

Credit type: Refundable—over 2 years

Effective date of credit: Effective for tax years beginning on or after January 1, 2007, and before January 1, 2029

Description: A taxpayer satisfying a threshold level of commercial production activity may claim a tax credit for qualified commercial production in New York State. The credit is capped at $7 million per year and is administered by the Governor’s Office for Motion Picture and Television Development. Beginning on or after January 1, 2019, the credit consists of two components:

• Metropolitan Commuter Transportation District component ($3 million): 20 percent (previously 5 percent) of qualified production costs in excess of $500,000 during the calendar year for work within the Metropolitan Commuter Transportation District. This component is also awarded on a pro rata basis, but with no per company limitation.
• Outside Metropolitan Commuter Transportation District component ($4 million): 30 percent (previously 5 percent) of qualified production costs during the calendar year for work done outside the Metropolitan Commuter Transportation District. However, to be eligible for the credit, the amount of total qualified production costs done outside the Metropolitan Commuter Transportation District must be greater than $100,000. This component is distributed in the same manner as the Metropolitan Commuter Transportation District component.

13. Security training tax credit

Citation: Tax Law §§ 26, 187-n, 210-B(21), 606(ii), 1511(x)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2005

Description: Owners of commercial buildings over 500,000 square feet can claim $3,000 for each security guard employed who has undergone training certified by the New York State Office of Homeland Security and is paid a certain minimum wage. The credit is administered by the Office of Homeland Security.

14. Brownfields tax credits

a. Brownfield redevelopment tax credit

Citation: Tax Law §§ 21, 187-g, 210-B(17), 606(dd), 1511(u)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after April 1, 2005; eligibility contingent on site being accepted into the Brownfield Cleanup Program before January 1, 2033

Description: The brownfield redevelopment tax credit consists of three components relating to costs associated with: site preparation; tangible property; and on-site groundwater remediation. The rates and rules for the credit vary depending on when a site is accepted into the Brownfield Cleanup Program.

b. Remediated brownfield credit for real property taxes

Citation: Tax Law §§ 22, 187-h, 210-B(18), 606(ee), 1511(v)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after April 1, 2005; not available to sites accepted into the brownfield credit program on or after July 1, 2015

Description: The remediated brownfield credit for real property taxes equals 25 percent of the product of the taxpayer’s employment factor (a percentage based on the number of persons employed by the taxpayer on a qualified site) and the taxpayer’s eligible real property taxes. If the site is located in an Environmental Zone, the credit increases to 100 percent. The credit is limited to the number of full-time employees at the qualified site multiplied by $10,000.

c. Environmental remediation insurance credit

Citation: Tax Law §§ 23, 187-i, 210-B(19), 606(ff), 1511(w)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after April 1, 2005; Not available to sites accepted into the BCP on or after July 1, 2015

Description: The environmental remediation insurance credit is allowed one time for premiums paid for environmental remediation insurance up to the lesser of $30,000 or 50 percent of the cost of the premiums.

15. Biofuel production credit

Citation: Tax Law §§ 28, 187-c, 210-B(24), 606(jj)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after 2006 and before January 1, 2020

Description: Taxpayers may claim a tax credit for the production of biofuel. Biofuel is defined as fuel which includes biodiesel and ethanol. Biodiesel is fuel comprised exclusively of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100, which meets the specifications of American Society of Testing and Materials designated D 6751. The credit equals 15 cents per gallon after the production of the first 40,000 gallons per year presented to market. The credit is capped at $2.5 million per taxpayer per year for up to four consecutive years per biofuel plant. The cap is applied at the entity level in the case of partnerships, limited liability companies, and S corporations. For taxpayers subject to tax under both §§ 183 and 184, the credit must first be deducted from the taxes imposed under § 183. Any credit remaining must then be deducted from the taxes imposed under § 184.

16. Land conservation easement credit

Citation: Tax Law §§ 210-B(22), 606(kk)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2006

Description: Taxpayers may claim a tax credit equal to 25 percent of the school district, county, and city/town real property taxes paid on land that is under a conservation easement held by a public or private conservation agency. The maximum allowable tax credit is $5,000. The credit, in combination with any other credit for property taxes, may not exceed such taxes. The term conservation easement means a perpetual and permanent conservation easement as defined in Environmental Conservation Law, Article 49 that serves to protect open space, scenic, natural resources, biodiversity, agricultural, watershed, and/or historic preservation resources. Any conservation easement for which a tax credit is claimed must be filed with the Department of Environmental Conservation and comply with the provisions of Environmental Conservation Law, Article 49, Title 3 and the provisions of Internal Revenue Code § 170(h).

17. Clean heating fuel credit

Citation: Tax Law §§ 210-B(25), 606(mm)

Credit type: Refundable

Effective date of credit: Effective for purchases made on July 1, 2006, through June 30, 2007, and on or after January 1, 2008, and before January 1, 2026

Description: Taxpayers may claim a tax credit for bioheat used for space heating or hot water production for residential purposes within the state. The credit equals 1 cent per percent of biodiesel per gallon of bioheat purchased by the taxpayer and is capped at 20 cents per gallon. Biodiesel is defined as fuel comprised exclusively of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100, which meets the specifications of American Society of Testing and Materials designated D6751. In addition, bioheat means a fuel comprised of biodiesel blended with conventional home heating oil, which meets the specifications of the American Society of Testing and Materials designation D396 or D975. Beginning in 2017, the minimum biodiesel fuel threshold for bioheat is increased to at least six percent biodiesel per gallon of bioheat. Any bioheat purchased on or after January 1, 2017, that is graded below B6, will no longer qualify for the credit.

18. Rehabilitation of historic properties credit

Citation: Tax Law §§ 210-B(26), 606(oo), 1511(y)

Credit type: Nonrefundable/carryforward/refundable for qualified rehabilitations placed in service on or after January 1, 2015

Effective date of credit: Personal income tax/corporate franchise tax—effective for tax years beginning on or after January 1, 2007. Insurance—effective for tax years beginning on or after January 1, 2010. Amended credit effective for tax years beginning on or after January 1, 2010, and before January 1, 2030

Description: Taxpayers may claim a tax credit for the rehabilitation of historic properties located in New York State. The amount of the state credit is based on the credit amount allowed for the same taxable year under federal Internal Revenue Code § 47(a)(2). Effective for taxable years beginning on or after January 1, 2018, taxpayers are allowed to claim the entire amount of the state credit in one year instead of ratably over five years as required as a result of the Federal Tax Cuts and Jobs Act of 2017. Internal Revenue Code § 47(c)(3) defines a certified historic structure as a building and its structural components that are listed in the National Register of Historic Places or located in a registered historic district and certified to be of historic significance to the district. Any state credit taken must be recaptured if the federal credit upon which it is based is recaptured by the taxpayer.

For tax years beginning on or after January 1, 2010, the credit is 100 percent of the amount of the federal historic properties credit claimed by the taxpayer, capped at $5 million. The cap is imposed at the entity level for partnerships, LLCs, or S corporations. Also, the credit is limited to projects located in distressed areas as defined in Internal Revenue Code § 143(j) or located within a census tract that is at or below 100 percent of the State median family income in the most recent American Community Survey. For tax years beginning on or after January 1, 2020, the credit is expanded to include a qualified rehabilitation project undertaken within a state park, state historic site, or other land owned by the state, that is under the jurisdiction of the Office of Parks, Recreation and Historic Preservation. For tax years beginning on or after January 1, 2022, small projects receive a credit amount equal to 150 percent of the credit for qualified rehabilitation expenses. Small projects are defined as projects where qualified rehabilitation expenditures are no greater than $2.5 million. After December 31, 2029, the credit reverts to a 30 percent rate and $100,000 cap. For qualified rehabilitation projects placed in service on or after January 1, 2015, the credit is refundable.

19. Excelsior Jobs Program tax credits

Citation: Tax Law §§ 31, 210-B(31), 606(qq), 1511(y)

Credit type: Refundable

Effective date of credit: Program effective in 2010; credit effective for tax years beginning on or after January 1, 2011

Description: The Excelsior Jobs Program Act was created by Chapter 59 of the Laws of 2010 and subsequently amended by Chapter 61 of the Laws of 2011. The program is administered by New York State Empire State Development and offers five tax credits focused on certain strategic industries. To claim credits, taxpayers must first apply to and be approved by New York State Empire State Development. The annual credit allocations are reduced beginning in 2016. As initially enacted, New York State Empire State Development could issue up to $50 million in new credit annually, with a fully effective annual total program cost of $250 million in 2015. For taxable years 2016 through 2021, the cap amount is lowered from $200 million per year to $183 million. In 2024, the amount is reduced from $50 million to $36 million. For taxable years 2025 through 2029, the cap is raised to $200 million in credit per year. New York State Empire State Development will calculate the amount of each credit annually and issue a certificate of tax credit to participants entitling them to the credits. As initially enacted, taxpayers were allowed to claim credits for five consecutive years. Pursuant to Chapter 61, participants accepted into the program after April 1, 2011, have a 10-year benefit period. New York State Empire State Development may award 100 percent of any unallocated tax credits remaining at the end of 2029. The aggregate statutory cap for all years may not be exceeded and no credits are allowed for taxable years beginning on or after January 1, 2040. Enhancements have been made to the program in 2020 to add tax credits for green projects aimed at reducing greenhouse gas emissions and supporting the use of clean energy.

a. Excelsior Jobs tax credit

Excelsior Jobs Program participants may claim a credit for each net new job created in the State. For participants accepted into the program on or before April 1, 2011, the value of the credit cannot exceed $5,000 per new job and is computed on marginal wages plus benefit basis as follows:

• 5 percent of wages plus benefits of $50,000 or less;
• 4 percent of wages plus benefits between $50,001 and $75,000; and
• 1.33 percent of wages plus benefits over $75,000.

For taxpayers accepted into the program after April 1, 2011, the credit is equal to the gross wages multiplied by 6.85 percent. For green projects, the credit is equal to gross wages multiplied by 7.5 percent.

b. Excelsior Jobs Program investment tax credit

Excelsior Jobs Program participants may claim a credit equal to two percent of the cost of qualified investments in New York. The credit is increased to five percent of the cost of qualified investments for green projects and the construction of childcare service facilities. Taxpayers cannot claim both the Excelsior Jobs Program investment tax credit and the brownfield tangible property credit component for the same property in a given year. In addition, taxpayers accepted into the program on or before April 1, 2011, are prohibited from claiming both the Excelsior Jobs Program investment tax credit and the regular investment tax credit.

c. Excelsior Jobs Program research and development tax credit

Excelsior Jobs Program participants may claim a credit for research and development expenditures in New York. The credit is a percentage of the portion of the taxpayer’s federal research and development credit pertaining to expenditures attributable to New York. Eligible expenditures are defined in Internal Revenue Code § 41. For taxpayers accepted into the program on or before April 1, 2011, the percentage is ten percent. For those accepted into the program after April 1, 2011, the percentage is fifty percent, subject to a limit of three percent of qualified research and development expenditures attributable to New York activity. For tax years beginning on or after January 1, 2018, the limit is increased to six percent. The credit for green projects is equal to eight percent of qualified research and development expenditures attributable to activities conducted in New York State.

d. Excelsior real property tax credit

Excelsior Jobs Program participants located in areas formerly designated as investment zones under the Empire Zones Program or that qualify as regionally significant projects may claim a credit for real property taxes. The credit equals 50 percent of the property taxes assessed and paid in the year immediately prior to a taxpayer’s application to the Excelsior Jobs Program and is gradually phased out. For taxpayers accepted into the program on or before April 1, 2011, the credit is phased down ten percent a year over five years. For those accepted into the program after April 1, 2011, the credit declines by 5 percent a year over ten years.

e. Excelsior child care services tax credit

Excelsior Jobs Program participants are eligible to claim a child care services tax credit for child care services expenditures in New York State. The credit is equal to six percent of child care services expenditures for the operation, sponsorship or direct financial support of a child care services program.

20. Credit for companies who provide transportation to individuals with disabilities

Citation: Tax Law §§ 210-B(38), 606(tt)

Credit type: Nonrefundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2011, and before January 1, 2029

Description: Taxpayers providing taxicab or livery service may claim a tax credit equal to the incremental cost associated with upgrading a vehicle so that it is accessible by individuals with disabilities. In addition, taxpayers may also claim the credit for the purchase of new vehicles manufactured to be accessible by individuals with disabilities and for which there is no comparable make or model. The credit is limited to $15,000 per electric vehicle and $10,000 per other vehicles. Vehicles accessible for individuals with disabilities must comply with the Americans with Disabilities Act and other federal regulations. A similar credit existed for tax years beginning on or after January 1, 2006, and before January 1, 2011.

21. Economic Transformation and Facility Redevelopment Program tax credit

Citation: Tax Law §§ 35, 210-B(35), 606(ss), 1511(aa)

Credit type: Refundable

Effective date of credit: Effective on or after March 31, 2011, and before December 31, 2026

Description: Chapter 61 of the Laws of 2011 created the Economic Transformation and Facility Redevelopment Program designed to mitigate the economic consequences in communities where correctional facilities and facilities operated by the Office of Children and Family Services were closed through the period ending March 31, 2012. In addition, any psychiatric facility previously owned and operated by New York State located within the Metropolitan Commuter Transportation District (excluding New York City) is considered a closed facility under the program. The program is administered by New York State Empire State Development and offers a tax credit with four components to redevelop closed facilities and attract new businesses to the surrounding areas. Taxpayers may claim credit for five consecutive years.

a. Economic Transformation and Facility Redevelopment Program jobs tax credit component

Participants may claim a credit for each net new job created in the State. The credit is equal to the gross wages multiplied by 6.85 percent.

b. Economic Transformation and Facility Redevelopment Program investment tax credit component

Participants may claim a credit for qualified investments in the economic transformation area. For investments on the grounds of a closed facility, the credit is 10 percent of the cost of the investment, not to exceed $8 million for the facility. For investments in areas outside of the facility but within the economic transformation area, the credit is 6 percent of the cost of the investment, not to exceed $4 million per entity.

c. Economic Transformation and Facility Redevelopment Program job training tax credit component

Participants may claim a credit for fifty percent of qualified training expenses paid during the year for employees displaced by a facility closure, not to exceed $4,000 per employee per tax year.

d. Economic Transformation and Facility Redevelopment Program real property tax credit component

Participants may claim a credit equal to 50 percent of the real property taxes assessed and paid in the first tax year of the benefit period for property located entirely within the grounds of a closed facility. The percentage decreases by 10 percent each year for the subsequent years of the benefit period. For property located outside of the facility but within the economic transformation area, the credit is equal to 25 percent of the real property taxes assessed and paid decreasing by 5 percent each year for subsequent years of the benefit period.

22. New York Youth Jobs Program tax credit

Citation: Tax Law §§ 210-B(36), 606(tt)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2012, and before January 1, 2028

Description: Chapter 56 of the Laws of 2011 created the New York Youth Works Tax Credit Program designed to provide tax incentives to employers for employing at-risk youth in full-time and part-time positions in tax years 2012 through 2027. Chapter 56 of the Laws of 2015 renamed the program the Urban Youth Jobs Program Tax Credit. Chapter 59 of the Laws of 2017 further renamed the program the New York Youth Jobs Program tax credit to reflect that the program is now offered statewide. The program is administered by the New York State Department of Labor. Prior to 2018, the credit equals $500 per month for up to six months for each qualified full-time employee or $250 per month for each qualified part-time position of at least 20 hours per week, or 10 hours if a full-time high school student. An additional $1,000 per full time employee or $500 per part time employee is available if the qualified employee remains employed for at least an additional six months. Finally, an additional $1,000 tax credit for each youth retained in full-time status and an additional $500 for each youth retained in part-time status is available if the qualified employee remains employed for one additional year. Beginning in 2018, these credit amounts are increased by fifty percent (for example, $250 increases to $375, $500 increased to $750 and $1,000 increases to $1,500).

Four additional independent annual credit programs were added, one each year beginning in 2014 and ending in 2017. The allocation for the program beginning in 2014 is capped at $10 million. The allocation for program three (for tax year 2015) is capped at $20 million and at $50 million each for programs four and five (for tax years 2016-2017). The $50 million is distributed $30 million for qualified employees and $20 million for individuals who meet all of the requirements for a qualified employee except for the residency requirement, so long as they reside in New York State. In 2017, an additional allocation of $40 million per year was added for tax years 2018-2022 for employers participating in the program. The additional five years are labeled programs 6 through 10. The $40 million is distributed $20 million for qualified employees and $20 million for individuals who meet all of the requirements for a qualified employee except for the residency requirement, so long as they reside in New York State. To claim the credit, employers must first apply to and be approved by the New York State Department of Labor. The New York State Department of Labor will calculate the maximum amount of credit the employer will be allowed to claim and issue a certificate of eligibility to participants entitling them to the credit.

23. Empire State Jobs Retention Program credit

Citation: Tax Law §§ 36, 210-B(37), 606(tt), 1511(bb)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2012, pertaining to emergencies declared on or after January 1, 2011

Description: Chapter 56 of the Laws of 2011 created the Empire State Jobs Retention Program designed to support the retention of strategic businesses and jobs directly impacted by an event that leads to an emergency declaration by the Governor. The Program offers a jobs tax credit equal to the product of 6.85 percent and the gross wages paid for each impacted job, defined as a job existing at the relevant location on the day before an event occurs that leads to an emergency declaration. A participant may also be eligible for a 2 percent investment tax credit, but only for costs in excess of costs recovered by insurance. Taxpayers may claim the credit for ten consecutive years.

For a business to be eligible for the credit it must: (a) be located in the county where an emergency is declared; (b) must demonstrate substantial physical damage and economic harm; and (c) must retain or exceed 100 full-time equivalent jobs in the county where the emergency is declared. To claim credit, taxpayers must apply to and be approved by New York State Empire State Development. New York State Empire State Development will calculate the amount of credit annually and issue a certificate of tax credit to participants entitling them to the credit. The total amount of tax credit issued by New York State Empire State Development shall be allocated from the funds available for tax credits under the Excelsior Jobs Program Act.

24. Alcoholic beverage production credit (formerly beer production credit)

Citation: Tax Law §§ 37, 210-B(39), 606(uu)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2012

Description: For taxable years beginning on or after January 1, 2016, the beer production credit was expanded to include wine, liquor, and cider. The credit, renamed the alcoholic beverage production credit, is available to taxpayers registered as a distributor, under Tax Law, Article 18, that produce 60 million gallons or less of beer or cider, 20 million gallons or less of wine, or 800,000 gallons or less of liquor in New York State. The credit is equal to 14 cents per gallon for the first 500,000 gallons of alcohol produced in New York State during the tax year, plus 4.5 cents per gallon for each additional gallon over 500,000 (up to 15 million additional gallons) produced in New York State in the same tax year.

For taxable years beginning on or after January 1, 2023, the credit rate for the first 500,000 gallons of alcohol produced in New York is amended as follows:

• still wine, artificially carbonated sparkling wine, and natural sparkling wine: 30 cents per gallon
• liquors containing more than 2% but not more than 24% of alcohol by volume: $2.54 per gallon produced
• beer and cider, artificially carbonated sparkling cider, and naturally sparkling cider containing more than 3.2% alcohol by volume: 14 cents per gallon produced
• liquors containing more than 0% but less than 2% alcohol by volume: no credit
• all other liquors: $6.44 per gallon produced

The credit cap is applied at the entity level for partnerships, LLCs, and S corporations.

25. Alternative fuels and electric vehicle recharging property credit

Citation: Tax Law §§ 187-b, 210-B(30), 606(p)

Credit type: Nonrefundable

Effective date of credit: Effective for taxable years beginning on or after January 1, 2013, and before January 1, 2026

Description: Taxpayers may claim a nonrefundable credit equal to the lesser of $5,000 or 50 percent of the cost of alternative fuel vehicle refueling property or electric vehicle recharging property located in New York State less any costs paid from the proceeds of grants. This credit replaces a prior alternative fuels credit that expired in 2010.

26. START-UP NY tax elimination credit

Citation: Tax Law §§ 39, 40, 210-B(41), 606(ww)

Credit type: Refundable

Effective date of Credit: Effective for taxable years beginning on or after January 1, 2014

Description: The tax-free New York area tax elimination credit is available to general business corporations, sole proprietorships, partnerships (including limited liability companies taxed as partnerships), and New York S corporations participating in the SUNY Tax-Free Areas to Revitalize and Transform Upstate New York Program (START-UP NY). The credit is equal to the product of:

• the tax-free NY area allocation factor, and
• the tax factor.

The tax-free New York area allocation factor is the percentage of the business’s economic presence in the tax-free New York area where the business was approved to locate under Economic Development Law, Article 21.

For Article 9-A taxpayers, the tax factor is the largest of the taxes on the business income base, capital base, or fixed dollar minimum tax after the deduction of any other credits. For Article 22 taxpayers, the tax factor is determined by reducing the individual’s tax computed under Tax Law § 601(a)–(d) for the tax year by any other allowable credits and adjusting that reduced amount by the ratio of the income from business in the tax-free New York area to the taxpayer’s New York adjusted gross income. In both cases, the ratios may not exceed 1.0.

For corporate franchise taxpayers, the credit cannot reduce the tax due below the fixed dollar minimum unless the taxpayer has a tax-free New York area allocation factor of 100%. In that instance, the tax can be reduced to zero. Any excess credit may be refunded. For personal income taxpayers, the credit may reduce the tax to zero and any excess may be refunded.

27. Credit for the excise tax on telecommunication services paid by START-UP New York businesses

Citation: Tax Law §§ 210-B(44), 606(yy)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2014

Description: The credit is available to a business or owner of a business that is approved to participate in the START-UP NY program and located in a tax-free NY area. The credit is equal to the 2.5 percent excise tax on telecommunication services imposed by Tax Law,  § 186-e that is passed through to the approved business. The credit may be claimed when the tax is separately stated on a bill from the telecommunication service provider and the bill has been paid by such business. If a taxpayer claimed any federal deduction for excise taxes on telecommunication services and also claims the START-UP NY telecommunication services excise tax credit, when computing the taxpayer’s New York adjusted gross income (or New York taxable income in the case of an estate or trust), the taxpayer must add back the federal deduction amount for excise taxes on telecommunication services used in the calculation of the credit.

28. Real property tax relief credit for manufacturing

Citation: Tax Law §§ 210-B(43), 606(i), 606(xx)

Credit type: Corporate franchise tax—nonrefundable/personal income tax—refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2014

Description: A qualified New York manufacturer is allowed a credit equal to 20 percent of the real property taxes paid during the tax year for real property located in New York and principally used in manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horticulture, floriculture, viticulture or commercial fishing. A manufacturer must have at least 50 percent of its receipts from the forgoing activities and either all or at least $1 million of manufacturing property located in New York. A manufacturer that fails the receipts test may still qualify if it employs at least 2,500 people in manufacturing in New York and has $100 million in manufacturing property in the state.

29. Hire a veteran credit

Citation: Tax Law §§ 210-B(29), 606(a-2), 1511 (g-1)

Credit type: Nonrefundable/carryforward for 3 years

Effective date of credit: Credit effective for taxable years beginning on or after January 1, 2015, and before January 1, 2026, but hiring may commence on January 1, 2014

Description: Employers hiring a qualified veteran to begin employment on or after January 1, 2014, but before January 1, 2022, and who is employed in New York State for twelve continuous and uninterrupted months and 35 hours each week may claim the credit in the tax year in which the qualified veteran completes one year of employment with the taxpayer.

For tax years beginning on or after January 1, 2022, the credit equals 15 percent of the total amount of wages paid during the veteran’s first full year of employment, or 20 percent for a disabled veteran. The credit is capped at $15,000 per veteran or $20,000 per disabled veteran.

For tax years beginning before January 1, 2022, the credit equals 10 percent of the total amount of wages paid during the veteran’s first full year of employment, or 15 percent for a disabled veteran. The credit is capped at $5,000 per veteran or $15,000 per disabled veteran.

30. Musical and theatrical production credit

Citation: Tax Law §§ 24-A, 210-B(47), 606(u)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2015, and before January 1, 2026

Description: Eligible production companies taxable under Articles 9-A and 22 can claim a refundable credit equal to 25 percent of certain costs. The total amount of credit is capped at $8 million per year and the credit is administered by New York State Empire State Development. To be eligible, a company must produce a live, dramatic stage presentation in a qualified production facility on a tour that consists of eight or more shows in three or more localities. A qualified production facility is a 1,000 or more-seat theater located outside of New York City for which ticket receipts constitute 75 percent or more of the total receipts. The credit is based on costs for tangible property used and services performed in the course of production, with personal compensation expenses capped at $200,000 per week. The credit is also allowed for transportation expenditures, which includes costs for packaging, crating, and transporting production equipment, sets, costumes, and cast and crew.

31. Workers with disabilities tax credit

Citation: Tax Law §§ 210-B(48), 606(zz)

Credit type: Nonrefundable/carryforward for three years

Effective date of credit: Effective for tax years beginning on or after January 1, 2015, and before January 1, 2026

Description: The Workers with Disabilities Tax Credit Program, administered by the New York State Department of Labor, annually provides $6 million in tax credits for employing individuals with developmental disabilities. To participate in the program, a taxpayer must apply to the New York State Department of Labor by November 30th of the prior year. At the end of the tax year, the employer must obtain a final certificate of eligibility from the New York State Department of Labor that states the maximum amount of credit allowed and provides verification for the credit claims.

The credit is equal to 15 percent of the qualified wages for qualified full-time employees and 10 percent of the qualified wages for qualified part-time employees. Full-time employment is defined as working at least 30 hours per week, and part-time employment at least 8 hours per week, each for at least 6 months. The credit is available for qualified wages paid after January 1, 2015. An employer is not allowed to concurrently claim this credit and any other credit for the employment of persons with disabilities for the same employee. Any unused credit may be carried forward for 3 years.

32. Employee Training Incentive Program

Citation: Tax Law §§ 210-B (50), 606(ddd)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2015

Description: The Employee Training Incentive Program, administered by New York State Empire State Development, provides a refundable tax credit under Articles 9-A and 22 for certain employers that procure skills training for their employees or provide internship programs in advanced technology. Effective April 12, 2019, businesses may receive the credit if they conduct their own training and are otherwise eligible. Previously, training had to be provided by an approved provider. The total amount of tax credits for any taxable year may not exceed $5 million dollars and will be allotted from the funds available for tax credits under the Excelsior Jobs Program Act. The portion of the tax credit cap allocated to internship programs in advanced technology shall be not less than $250,000 or more than $1 million.

The credit equals 50 percent of eligible training costs, up to $10,000 per employee receiving eligible training and 50 percent of the stipend paid to an intern, up to a credit of $3,000 per intern. The credit is limited to the amount listed on the certificate of tax credit issued by New York State Empire State Development. The credit is allowed in the taxable year in which the eligible training is completed. For Article 9-A taxpayers, the credit allowed may not reduce the tax due below the fixed dollar minimum base and amounts of unused credit will be refundable. The credit is fully refundable for personal income tax filers.

33. Farm workforce retention credit

Citation: Tax Law §§ 42, 210-B(51), 606(fff)

Credit type: Refundable

Effective date of credit: Effective for taxable years beginning on or after January 1, 2017, and before January 1, 2026

Description: A farm employer whose federal gross income from farming for the taxable year is at least two-thirds of excess federal gross income is allowed a credit equal to a fixed amount per eligible farm employee. Excess federal gross income is defined to mean the amount of federal gross income from all sources for the taxable year in excess of $30,000.

An eligible farm employee is an individual who is employed for 500 hours or more per taxable year by a farm employer in New York State. However, general executive officers of a farm employer are excluded from the credit. For tax years beginning on or after January 1, 2019, if more than fifty percent of an eligible farmer’s federal gross income from farming is from the sale of wine or cider, then an eligible farm employee shall only be included for purposes of calculating the credit if such employee is employed on qualified agricultural property. Also, where an individual employed by a farm employer in New York State becomes unable to work due to a documented illness or disability, the hours such individual is employed may be combined with the hours worked by a hired replacement individual when determining the 500-hour threshold.

The credit is phased in gradually by taxable year:

Credit amount by year

Tax years beginning on or after	and before	Credit per eligible farm employee
January 1, 2017	January 1, 2018	$250
January 1, 2018	January 1, 2019	$300
January 1, 2019	January 1, 2020	$500
January 1, 2020	January 1, 2021	$400
January 1, 2021	January 1, 2022	$600
January 1, 2022	January 1, 2023	$1,200
January 1, 2023	January 1, 2024	$1,200
January 1, 2024	January 1, 2025	$1,200
January 1, 2025	January 1, 2026	$1,200

34. Empire State apprenticeship tax credit

Citation: Tax Law §§ 210-B(49), 606(vvv)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2018, and before January 1, 2028

Description: The refundable credit, administered and allocated by the Department of Labor, is capped at $10 million annually for ten years beginning in 2018 through 2028. Any unused annual allocation of the credit shall be made available in a subsequent year before 2028.

The base credit for a qualified apprentice is equal to:

• $2,000 for year one of apprenticeship
• $3,000 for year two of apprenticeship
• $4,000 for year three of apprenticeship
• $5,000 for year four of apprenticeship
• $6,000 for year five of apprenticeship

A qualified apprentice means an individual employed by a participating employer in a full-time position for at least six months of a calendar year pursuant to a qualified apprenticeship agreement with a qualified employer. The individual must also complete the apprenticeship training program within one year.

A participating employer is entitled to an enhanced tax credit of an additional $500 on top of the base amount if the employer can show that the apprentice is being trained in their trade by a mentor. An additional $3,000 is available in years one, two, and three if the apprentice is a disadvantaged youth. A disadvantaged youth means an individual:(i) who is between the ages of sixteen and twenty-four when the youth begins the apprenticeship; and (ii) who is low-income or at-risk, as those terms are defined by the Commissioner of the Department of Labor. An additional $2,000 is available in year four and $1,000 in year five. The credit is not allowed for construction work.

35. Life sciences research and development tax credit

Citation: Tax Law §§ 43, 210-B(52), 606(hhh)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2018, and before January 1, 2028

Description: The refundable life sciences research and development tax credit is awarded by New York State Empire State Development and is funded from the Excelsior Program. New York State Empire State Development can award $10 million annually for ten years. New life sciences companies can claim a 15 percent credit on their research and development expenditures, with the rate increasing to 20 percent for businesses with less than 10 employees. A company can claim credit for up to three years with an annual maximum of $500,000.

Life sciences means agricultural biotechnology, biogenetics, bioinformatics, biomedical engineering, biopharmaceuticals, academic medical centers, biotechnology, chemical synthesis, chemistry technology, medical diagnostics, genomics, medical image analysis, marine biology, medical devices, medical nanotechnology, natural product pharmaceuticals, proteomics, regenerative medicine, RNA interference, stem cell research, medical and neurological clinical trials, health robotics and veterinary science.

A life sciences company is a business entity or an organization or institution that devotes the majority of its efforts in the various stages of research, development, technology transfer and commercialization related to any life sciences field.

36. Farm donations to food pantries credit

Citation: Tax Law §§ 210-B(52), 606(n-2)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2018

Description: The refundable credit is equal to twenty-five percent of the fair market value of the taxpayer’s qualified food donations, not to exceed $5,000 per year. If the taxpayer is a partner in a partnership or shareholder of a New York S corporation, then the $5,000 cap shall be applied at the entity level.

To qualify, the taxpayer must have federal gross income from farming that is at least two-thirds of gross income from all sources for the taxable year in excess of thirty thousand dollars. In order to claim the credit, the taxpayer must receive a receipt or written acknowledgment from the qualified food pantry detailing the name of the food pantry, the date and location of the qualified donation, and a reasonably detailed description of the qualified donation.

37. Employer provided child care credit

Citation: Tax Law §§ 44, 210-B(53), 606(jjj), 1511(dd)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2020

Description: A refundable credit is available to taxpayers who are allowed the federal employer-provided child care credit under Internal Revenue Code, § 45F for qualifying expenditures paid or incurred in providing child care alternatives for their employees. The credit is equal to 25 percent of qualified child care expenditures related to a child care facility located in New York, plus 10 percent of qualified child care resources and referral expenditures, attributable to employees working in New York. The credit is capped at $150,000 per taxable year. For taxable years starting on or after January 1, 2022, the amount of the credit is doubled to 200 percent of the credit allowed under Internal Revenue Code, § 45F and the per entity cap is increased from $150,000 to $500,000 per taxable year. Qualified child care expenditures include operating costs of a qualified child care facility of the taxpayer or under contract with another taxpayer, as well as amounts paid or incurred to acquire, construct, rehabilitate, or expand property used as part of a care facility of the taxpayer. Qualified child care resource and referral expenditures are amounts paid or incurred under a contract to provide child care resource and referral services to an employee of the taxpayer.

38. Recovery tax credit

Citation: Tax Law §§ 210-B(53), 606(jjj), 1511(dd)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2020

Description: The refundable credit is administered by the Office of Addiction Services and Supports and provides tax incentives to certified employers for employing eligible individuals in recovery from a substance use disorder in part-time and full-time positions in New York State. The Office of Addiction Services and Supports is authorized to issue $2 million in refundable tax credits annually. If the total amount applied for exceeds $2 million, credit will be awarded proportionally to all applicants. The credit equals $1 per hour worked by each eligible employee, with a minimum requirement of 500 hours worked for each eligible employee. The credit cannot exceed $2,000 per eligible individual employed by the certified employer in the state. The credit may be claimed only one time for each eligible employee. Qualifying employers must have a formal working relationship with a local recovery community organization and eligible employees must demonstrate they have completed a course of treatment for a substance use disorder and are in a state of wellness. Employers must apply to the Office of Addiction Services and Supports by January 15 for credit based on employment in the preceding year.

39. Restaurant return-to-work tax credit

Citation: Tax Law §§ 46, 210-B(56), 606(lll)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2021, and before January 1, 2022

Description: The credit is administered by New York State Empire State Development and provides up to $35 million in refundable tax credits to support restaurants impacted by the Covid-19 pandemic through 2021. Independently owned restaurants within New York City or located in an area outside of New York City that has been and/or remains designated by the Department of Health as either an orange or red zone that can demonstrate economic harm from the pandemic can apply to New York State Empire State Development for a credit equal to $5,000 per full-time equivalent net employee increase, capped at $50,000 per entity. Net employee increase is defined as an increase of at least one full-time equivalent employee between the average starting full-time employment and the average ending full-time employment of a business entity.

Average starting full-time employment is calculated as the average number of full-time equivalent positions employed by a business entity in an eligible industry between January 1, 2021, and March 31, 2021. Average ending full-time employment is calculated as the average number of full-time equivalent positions employed by a business entity in an eligible industry between April 1, 2021, and either August 31, 2021, or December 31, 2021, whichever date the business entity chooses to use.

Taxpayers can apply to New York State Empire State Development to have a credit certificate issued by November 15, 2021, and can claim the credit as an advanced refund. The taxpayer will have to reconcile the credit when they file their tax return. All other taxpayers will claim the credit on their tax return.

40. New York City musical and theatrical production tax credit

Citation: Tax Law §§ 24-C, 210-B(57), 606(mmm)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2021, and before January 1, 2026.

Description: Participants may claim a refundable tax credit equal to 25 percent of qualified production expenditures paid for during the qualified New York City musical and theatrical production’s credit period. The total amount of credit is capped at $3 million per qualified New York City musical and theatrical production for productions whose first performance is before January 1, 2023, and $1.5 million per qualified New York City musical and theatrical production for productions whose first performance is on or after January 1, 2023. The credit, administered by New York State Empire State Development, is allowed by production companies taxable under Tax Law, Articles 9-A and 22, who are qualified New York City musical and theatrical production companies. The aggregate amount of tax credits allowed is $300 million and is allocated based on the date of the first performance of the qualified musical and theatrical production.

Qualified musical and theatrical production is defined as a for-profit live, dramatic stage presentation that, in its original or adaptive version, is performed in a qualified New York City production facility, whether or not such production was performed in a qualified New York City production facility prior to the state disaster emergency pursuant to executive order 202 of 2020.

To be eligible, a company must produce a live, dramatic stage presentation in a qualified New York City production facility. A qualified production facility is a 500 or more-seat theater located in New York City for which ticket receipts constitute 75 percent or more of the total receipts.

Starting in 2023, the credit is amended to add Level 1 and Level 2 qualified New York City production facilities. A Level 1 qualified New York City production facility is defined as a facility located within the borough of Manhattan, bounded by, and including 41st Street and 54th Street and between 6th Avenue and 9th Avenue for which receipts attributable to live theatrical productions constitute 75 percent or more of gross receipts of the facility. A Level 2 qualified New York City production facility modifies a Level 1 facility to include facilities located in Manhattan in which live theatrical productions are or are intended to be primarily presented and lowers the seating capacity from 500 or more seats to 100 or more seats.

The amount of the credit cannot exceed $350,000 per qualified New York City musical and theatrical production in a Level 2 facility or $3,000,000 per qualified New York City musical and theatrical production in a Level 1 facility.

The definition of a qualified NYC musical and theatrical production is also amended to specify that productions performing in a Level 2 facility must have a production budget greater than or equal to $750,000 and incur qualified production expenditures greater than or equal to $750,000.

The credit is based on costs for tangible property used and services performed in the course of production, with personal compensation expenses capped at $200,000 per week. The credit is also allowed for technical and crew production costs, such as expenditures for a qualified New York city production facility, or any part thereof, props, make-up, wardrobe, costumes, equipment used for special and visual effects, sound recording, set construction, and lighting. Qualified production expenditure does not include any costs incurred prior to the credit period of a qualified New York city musical and theatrical production company.

41. Covid-19 capital costs tax credit

Citation: Tax Law §§ 47, 210-B(58), 606(nnn)

Credit type: Refundable

Effective date of credit: Effective for costs incurred between January 1, 2021, and December 31, 2022

Description: Small business taxpayers that incurred costs of at least $2,000 from January 1, 2021, through December 31, 2022 to comply with public health or other emergency orders or regulations related to the COVID-19 pandemic may claim a credit equal to 50 percent of qualifying costs. The credit is capped at $25,000 per claim and the total amount of credit under the program is capped at $250 million.

To be eligible, a small business must:

• have $2.5 million or less of gross receipts;
• be a resident in the state;
• be independently owned and operated;
• not be dominant in its field; and
• have 100 or fewer employees.

Taxpayers must apply to New York State Empire State Development Corporation for a certificate of tax credit and can claim credit in the tax year that includes the date the certificate is issued.

42. Grade number 6 heating oil conversion tax credit

Citation: Tax Law §§ 47, 210-B(58), 606(nnn)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2022, and before January 1, 2024

Description: Taxpayers that meet certain eligibility requirements may claim a refundable tax credit equal to 50 percent of the conversion costs for all the taxpayers’ buildings located in a facility regulated pursuant to New York State Environmental Conservation Law § 19-0302 or Title 10 of Article 17 that are paid on or after January 1, 2022, and before July 1, 2023. The New York State Energy Research and Development Authority administered credit is capped at $500,000 per facility, with the cap applied at the entity level for partnerships, LLCs, or S corporations. Costs used for this credit cannot be used for other credits.

Conversion costs are the equipment and labor costs associated with the design, installation, and use of space heating and other energy conversion systems that are designed to or accommodate use of biodiesel fuel or a geothermal system and, at the option of the taxpayer, the cost of completing an American Society of Heating, Refrigerating and Air-conditioning Engineers level 2 energy audit.

To qualify, a business must:

1. Incur expenses for the conversion of grade number 6 heating oil to biodiesel oil or a geothermal system located in New York State outside of New York City.
2. Submit an application to and obtain approval from the New York State Energy Research and Development Authority describing the conversion and the costs to complete it.
3. Not be principally engaged in generation or distribution of electricity, power or energy.
4. Be in compliance with all Environmental Conservation Laws and regulations.
5. Not owe past due state taxes unless the entity is making payments with an approved payment plan.

43. Farm employer overtime credit

Citation: Tax Law §§ 42-a, 210-B(58), 606(nnn)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2022. However, credit may only be claimed for tax years where the overtime threshold, as set by the Commissioner of Labor, is below 60 hours per week

Description: Taxpayers may claim a refundable credit for farm employers equal to 118% of the amount of additional overtime paid to their employees as a result of the phase-in of a new 40-hour overtime threshold as recommended by the Farm Laborers Wage Board and the Commissioner of Labor. The credit base is overtime paid on time between the new threshold and 60 hours per week. Eligible taxpayers may request an advance payment for qualified overtime paid between January 1 and July 31 of the applicable year by submitting an application to the Department of Agriculture and Markets by September 30 of the applicable year.

44. Additional restaurant return-to-work tax credit

Citation: Tax Law §§ 46-a, 210-B(56-a), 606(nnn)

Credit type: Refundable

Effective date of credit: Effective for the tax year that includes December 31, 2022

Description: Business entities currently in the restaurant return-to-work program may claim a credit of $5,000 per each full-time equivalent net employee increase between 11 and 20 employees, provided the jobs continue to exist as of March 31, 2022.

A business entity must submit an application to New York State Empire State Development by July 1, 2022, and once approved, New York State Empire State Development will issue a credit certificate. Taxpayers may submit a request for an advanced payment of tax credit to the Tax Department no later than September 30, 2022.

45. Empire State digital gaming media production tax credit

Citation: Tax Law §§ 45, 210-B(55), 606(nnn)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2023, and before January 1, 2028

Description: A taxpayer that is a digital gaming media production entity may claim a refundable credit equal to 25 percent of qualified costs in the Metropolitan Commuter Transportation District and 35 percent of costs outside of the Metropolitan Commuter Transportation District. Provided, the maximum qualified costs per production used to calculate the credit is $4 million. The credit is administered by Empire State Development and up to $5 million of credit can be allocated a year.

Qualified costs are digital gaming media production costs incurred and paid within New York State directly and predominately related to the creation, production or modification of a qualified digital gaming media production. These costs include up to $100,000 in wages paid to people, other than actors or writers, that are directly employed for services performed by those individuals for the creation, development, production, editing, and compositing of a digital gaming media production or productions. Distribution, marketing, promotion, and advertising, costs not directly related to creation of the media, and executives’ salaries are not qualified costs.

46. Child care creation and expansion credit

Citation: Tax Law §§ 48, 210-B(59), 606(ooo), 1511(ee)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after April 1, 2023, and before January 1, 2025

Description: Eligible businesses that operate in New York State and have created or expanded child care seats, directly or through a third party, for their employees may claim a refundable tax credit under Tax Law, Articles 9-A, 22, and 33. The credit, administered by the Office of Children and Family Services, is capped at $25 million annually for two years (from April 1, 2023, to January 1, 2025). The credit is limited to 25 occupied infant and toddler child care seats per tax year. The credit is equal to the sum of the product of the number of infant child care seats that have been created or expanded and 20 percent of the child care rate for such infant child care seats and the product of the number of toddler child care seats that have been created or expanded and 20 percent of the child care rate for such toddler child care seats.

Created child care means the making available of child care seats in a child care program by a business entity for employees of such business entity, where such child care program was not available prior to April 1, 2023, provided that the costs imposed on such employees for such child care program do not exceed 40 percent of the child care rate.

Expanded child care means the increase in the number of child care seats in a child care program made available by a business entity for employees of such business entity, provided that such increase requires a new or amended license or registration issued by the New York State Office of Children and Family Services pursuant to Social Services Law § 390 on or after April 1, 2023, and that the costs imposed on such employees for such child care program do not exceed 40 percent of the child care rate.

Child care rate is dictated by the 2022 Child Care Market Rate Survey Report published by the New York State Office of Children and Family Services. To participate, a business entity must submit a complete application to the New York State Office of Children and Family Services by January 31 after the end of each year.

47. Newspaper and Broadcast Media Jobs Program credit

Citation: Tax Law §§ 49, 210-B(60), 606(ppp)

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2025, and before January 1, 2028

Description: A business entity that meets the eligibility requirements of the newspaper and broadcast media jobs program may be eligible to claim the credit. To be eligible for the credit, an eligible business must be an eligible business operating within an eligible industry; be independently owned or, in the case of a print media business, demonstrate a reduction in circulation or in the number of full-time equivalent employees of at least 25 percent over the previous five years, and operate predominately in an eligible industry and be located within the state of New York.

The refundable credit is administered by Empire State Development  and is comprised of two components: the newspaper and broadcast media new job creation component and the newspaper and broadcast media existing jobs component. The newspaper and broadcast media new job creation component is equal to $5,000 per net new job created at eligible businesses operating within eligible industries. The newspaper and broadcast media existing jobs component is equal to 50 percent of annual wages of an eligible employee. The calculation of such a credit shall only be applied to up to $50,000 in wages paid annually per eligible employee.

A business entity, including a partnership, limited liability company and subchapter S corporation, may not receive in excess of $20,000 in tax credits under the new job creation component and $300,000 in tax credits under the existing jobs component.

The total amount of tax credits is capped at $30 million for each year the credit is available. Within this amount, the new job creation component of the credit may not exceed $4 million per year and the existing jobs component of the credit may not exceed $26 million per year. Fifty percent of the existing jobs component credits will be set-aside for eligible business entities with 100 or fewer employees and 50 percent of the existing jobs component credits will be set-aside for eligible business entities with over 100 employees. In both instances the cap will be $300,000 under this program.

48. Commercial security tax credit

Citation: Tax Law §§ 49, 210-B(60), 606(ppp), 187-r

Credit type: Refundable

Effective date of credit: Effective for tax years beginning on or after January 1, 2024, and before January 1, 2026

Description: A certified business entity that meets the eligibility requirements of the commercial security tax credit program may be eligible to claim the credit equal to $3,000 for each retail location of the business entity located in New York State. The refundable credit, administered and allocated by the Division of Criminal Justice Services, is capped at $5 million annually. To be eligible for the credit, an eligible business must be a qualified business required to file a tax return pursuant to Tax Law Articles 9, 9-A, or 22; have qualified retail theft prevention measure expenses that exceed $4,000 for a qualified business with 25 or fewer total employees or $6,000 for a qualified business with more than 26 to 50 employees for each physical New York retail location during the taxable year; provide a certification in a manner and form prescribed by the commissioner that the business entity participates in a community anti-theft partnership as established by the Division of Criminal Justice Services between businesses and relevant local law enforcement agencies; and may not owe past state taxes or local property taxes unless the business entity is making payments and complying with an approved binding payment agreement entered into with the taxing authority.