N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 5-2.1

Current through Register Vol. 46, No. 50, December 11, 2024

Section 5-2.1 - Employment incentive tax credit

(Tax Law, section 210-B(2))

(a) Where a corporation is allowed an investment tax credit under section 210-B(1), the corporation may be allowed an employment incentive tax credit for each of the two years next succeeding the taxable year for which the investment tax credit is allowed. The amount of the employment incentive credit is a percentage of the investment credit base that varies depending on the percentage increase in employment. The employment incentive credit will be allowed for any taxable year only if:

(1) the average number of employees during such taxable year is at least 101% of the average number of employees during the taxable year immediately preceding the taxable year for which the investment tax credit is allowed; or

(2) in case of a corporation that was not subject to the tax imposed by article 9-A and did not have a taxable year immediately preceding the taxable year for which the investment tax credit is allowed, the average number of employees in the taxable year for which the credit under this Subpart is allowable is at least 101% of the average number of employees during the taxable year in which the investment tax credit is allowed.

(b) The employment incentive tax credit shall not reduce the tax to less than the fixed dollar minimum tax. If the corporation has excess employment incentive tax credit after reducing the tax due to the fixed dollar minimum tax or the corporation otherwise pays tax on the fixed dollar minimum, the excess credit may be carried over to the fifteen taxable years immediately following such taxable year and may be deducted from the corporation's tax for such year or years.

(c) A corporation entitled to claim the employment incentive tax credit must submit a Claim for Investment Tax Credit that includes the employment incentive tax credit on Form CT-46 when claiming the credit.

N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 5-2.1

Adopted New York State Register December 27, 2023/Volume XLV, Issue 52, eff. 12/27/2023