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Recapture of tax credits

Certain New York State tax credits are subject to recapture. You might have to add back all or a part of the tax credit you claimed in prior years to your tax due in the tax year when the qualifying requirements for that credit are no longer met (for example, the investment tax credit is subject to recapture if an asset for which the credit was taken is disposed of before the end of its useful life).

In general, you must recapture a tax credit when:

  • the property for which the credit was claimed is disposed of or ceases to be in qualified use prior to the end of its useful life,
  • your certificate of eligibility or certificate of tax credit for a credit program is revoked,
  • you fail to meet minimum job or investment requirements for a credit program, or
  • the real estate taxes used as the basis for the calculation or for qualification of a credit are subsequently reduced.

Select a link below for more information about that specific credit’s requirements for recapture.

Requirements for recapture