Investment tax credit (ITC)
Who is eligible?
You are entitled to this credit if you or your business placed qualified property into service during the tax year.
How much is the credit?
- The ITC is a percentage of the investment credit base (the cost or other basis of the investment property).
- It is refundable for new businesses.
- If you are an eligible farmer, you may qualify to claim 20% of the investment credit base on qualifying property placed in service on or after 4/1/2022. For more information, see Investment tax credit: eligible farmers income test.
- If you are an eligible farmer, you may claim a refund of the unused credit earned on property placed in service on or after 1/1/2023.
Note: If you are an eligible fiscal-year farmer, you may elect to claim this refund on either an original or amended fiscal-year 2022 return if the property was placed into service on or after January 1, 2023, and before the end of your 2022 fiscal year. To elect to claim this refund for your 2022 fiscal year, file your original or amended tax return using the following updated 2022 credit claim form instructions.
- See Form IT-212-I updates at Personal income tax forms corrections and changes for 2022 (Articles 22 and 30).
- See Form CT-46-I updates at Corporation tax forms corrections and changes for 2022 (Articles 9, 9-A, 13, and 33).
Taxpayers must prove entitlement to tax credits. During the course of an audit, you may be required to provide documentation to substantiate entitlement based on the specific facts of your tax credit claim. See Investment tax credit recordkeeping requirements for more information on the recordkeeping requirements for this credit.
- Form-CT-46, Claim for Investment Tax Credit, and its instructions (for corporations)
- Form IT-212, Investment Credit, and its instructions (for all others)
To learn about other New York State tax credits available to businesses, see Business incentives.