Pass-through entity tax credit

Who is eligible?

You are entitled to this refundable credit for tax years beginning on or after January 1, 2021, if:

• you received a pass-through entity tax (PTET) credit from an electing entity that you are a partner, member, or shareholder in; and
• you are an individual, trust, or estate subject to tax under Article 22.

How much is the credit?

The credit is equal to your direct share of PTET, which your electing entity reported. If you receive more than one PTET credit, add the credits together on your personal income tax return.

You must make an addition modification to your federal adjusted gross income or federal taxable income on your New York State personal income tax return for an amount equal to the amount of the PTET credit claimed. Generally, you are required to add back to adjusted gross income an amount equal to the PTET and NYC PTET credits claimed. For more information, see Form IT-225-I, Instructions for Form IT-225. 

Additional information

• Pass-through entity tax 
• Form IT-225-I, Instructions for Form IT-225, New York State Modifications
• Form IT-653, Pass-Through Entity Tax Credit
• TSB-M-21(1)C, (1)I, Pass-Through Entity Tax