Article 9-A credit provisions

Credits effective for tax years beginning on or after January 1, 1969

Investment tax credit

Effective date: Effective for tax years beginning on or after January 1, 1969.

Sunset date: None

The investment tax credit (ITC) is 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: manufacturing; processing; assembling; refining; mining; extracting; farming; agriculture; horticulture; floriculture; viticulture; or commercial fishing. Property used in the generation of electricity is not eligible for the ITC. Furthermore, ITC 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 pipes and mains.

ITC is also allowed for expenditures for pollution control, waste treatment, and acid rain control facilities. To qualify, these facilities must be located within the State, used in regular business activities, and certified by the State Commissioner of Environmental Conservation.

Finally, 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 ITC on property used in the qualified film production facility.

The claiming of a depreciation or expense deduction for ITC property under certain other tax provisions, or the leasing of the property to another individual or corporation, unless explicitly allowed, disqualifies credit.

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 R&D 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.

Unused ITC can be carried forward for fifteen years. For tax years 2023 through 2027, the ITC will be fully refundable for eligible farmers. The refundability only applies to credit claimed for property placed in service on or after Jan. 1, 2023 and before Jan. 1, 2028. Eligible farmers may continue to carry over existing credit for property placed in service prior to Jan. 1, 2023, however such amounts of credit remain non-refundable.

If a taxpayer qualifies as a new business, it can elect to receive a refund of unused ITC during its first five taxable years. A new business is defined as any corporation except:

A corporation in which over 50 percent of the number of shares of stock entitling their holders to vote for the election of directors or trustees is owned or controlled, directly or indirectly, by a taxpayer subject to the tax under: Article 9-A; sections 183, 184 or 185 of Article 9; or Article 33 of the Tax Law.
A corporation that is substantially similar in operation and in ownership to a business entity or entities taxable or previously taxable under: Article 9-A; section 183, 184, 185, or former section 186 of Article 9; Article 32 as in effect on December 31, 2014; or Article 33; or that would have been subject to the tax under Article 23 as it was in effect on January 1, 1980; or the income (or losses) of which is (or was) includable under Article 22 of the Tax Law.
A corporation that has been subject to tax under Article 9-A, or former Article 32, for more than five taxable years (excluding short periods).

When qualified ITC 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 ITC recapture may be added to the tax otherwise due in the year of disposition or disqualification.

Credits effective for tax years beginning on or after January 1, 1979

Special additional mortgage recording tax credit

Effective date: Effective for tax years beginning on or after January 1, 1979.

Sunset date: None

A credit is allowed equal to the State Special Additional Mortgage Recording Tax paid on mortgages recorded after December 31, 1978. The special additional mortgage recording tax is imposed at the rate of 25 cents per $100 on the indebtedness secured by a mortgage recorded on or after July 1, 1969. The credit is not allowed for such taxes paid on residential mortgages recorded after May 1, 1987, where the real property is located in Erie County or one or more of the counties comprising the Metropolitan Commuter Transportation District.

For periods beginning on or after January 1, 1994, taxpayers may elect to treat the unused portion of the special additional mortgage recording tax credit as an overpayment to be credited or refunded. Starting in the 2015 tax year, banks formerly taxable under Article 32 were merged into Article 9-A. As such, they became eligible for a refund of the special additional mortgage recording tax credit pertaining to certain residential mortgages. However, for these taxpayers, refunds were only allowed if the special additional mortgage recording tax was paid on or after January 1, 2015.

Credits effective for tax years beginning on or after June 1, 1981

Rehabilitation credit for retail enterprises

Effective date: Effective for investments made on or after June 1, 1981.

Sunset date: Beginning on or after January 1, 2015, the credit has been eliminated as a result of corporate tax reform.

Taxpayers registered as vendors under Tax Law Article 28 and at least 50 percent engaged in retail sales could claim a credit for expenditures for retail enterprises that also qualified for the federal rehabilitation credit. The credit rate was the same as the traditional ITC. The credit was limited to expenditures attributable to property used in retail sales and located in New York.

Credits effective for tax years beginning on or after January 1, 1986

Empire Zone/Zone Equivalent Area/Qualified Empire Zone Enterprise tax credits

In 1986, New York State enacted legislation to stimulate growth in economically distressed communities. The program provides a package of tax incentives for businesses that invest or provide jobs in designated areas called Empire Zones (EZs).

The Empire Zones Program expired on June 30, 2010. However, taxpayers certified in EZs are granted additional time to fully utilize their tax benefits as follows:

The EZ-ITC was available until April 1, 2014.
The EZ-EIC is allowed for the three years following the related EZ-ITC claim, notwithstanding the 2014 EZ-ITC cutoff.
Payments of commitments made to community development projects approved by Empire State Development (ESD) prior to the expiration of the Zones Program were allowed to generate EZ capital credit until April 1, 2014.
Taxpayers claiming the EZ wage tax credit, the QEZE real property tax credit, and the QEZE tax reduction credit will be allowed to claim credit for the duration of their benefit periods provided they continue to meet all eligibility criteria.

The SFY2006-07 Executive Budget created two special Empire Zone designations – qualified investment projects (QUIPs) and significant capital investment projects (SCIPs). QUIPs remain certified for an additional nine years. Taxpayers eligible for these designations are subject to more beneficial EZ-ITC, EZ-EIC, and EZ wage credit refund rules and may qualify for extended benefit periods for the QEZE credits.

Empire Zone (EZ) wage tax credit/Zone Equivalent Area (ZEA) wage tax credit

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

Sunset date: The Empire Zones Program expired on June 30, 2010, however taxpayers will be allowed to claim credit for the duration of their benefit periods provided they continue to meet all eligibility criteria.

Eligible taxpayers could claim a wage tax credit for up to five years for doing business and creating jobs in an EZ. The credit equaled $3,000 for each to targeted employee (i.e., those with low incomes or on public assistance), and $1,500 for each nontargeted employee.

Starting with the 2005 tax year, taxpayers certified in EZ sub-zones called Investment Zones could claim an additional $500 for each employee receiving wages in excess of $40,000.

For tax years beginning on or after January 1, 1994, a similar credit was provided for eligible businesses located in zone equivalent areas (ZEAs) for wages paid to full-time employees in a ZEA. Beginning on January 1, 2001, the ZEA credit amounts were changed to mirror the EZ wage tax credit amounts. The ZEA credit expired on June 13, 2004. Taxpayers could not earn new credit, but could use amounts carried forward from prior years.

The total EZ or ZEA wage tax credit could not exceed 50 percent of tax due before credits. Taxpayers could carry forward unused credits indefinitely. In lieu of a carryforward, new business taxpayers could elect to have 50 percent of unused EZ wage tax credit refunded.

Empire Zone (EZ) capital tax credit

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

Sunset date: The Empire Zones Program expired on June 30, 2010, however payments of commitments made to community development projects approved by Empire State Development (ESD) prior to the expiration of the Zones Program were allowed to generate EZ capital credit until April 1, 2014.

Taxpayers could qualify for a credit for direct equity investments in certified zone businesses and contributions to community development projects. The credit equaled 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 could not exceed one half of the taxpayer’s pre-credit tax. Taxpayers could carry unused credits forward indefinitely.

Empire Zone (EZ) investment tax credit

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

Sunset date: The Empire Zones Program expired on June 30, 2010, however the EZ-ITC was available until April 1, 2014. In addition, for purposes of the EZ-ITC, the areas designated as EZs in

which the qualified investment project (QUIP) was certified as of June 30, 2010, will continue to be deemed EZs for the remainder of the tax year in which the expiration occurred and for the next nine tax years.

Production property acquired or built in an EZ could qualify for an EZ-ITC of 10 percent. Corporations could carry forward any unused EZ-ITC indefinitely. New businesses could refund 50 percent of unused credit during their first five years of operation.

An additional 3 percent credit rate (30 percent of the EZ-ITC) applied in the three years following the year in which the corporation claims the EZ-ITC. To qualify for this second credit, the EZ-EIC, the taxpayer’s employment in the EZ (excluding general executive officers) must have equaled at least 101 percent of its average employment in the year prior to earning the EZ-ITC.

Empire Zone (EZ) investment tax credit for the financial services industry

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

Sunset date: The Empire Zones Program expired on June 30, 2010, however the EZ-ITC was available until April 1, 2014.

Financial services industry taxpayers that were located in an Empire Zone could be eligible for the EZ-ITC and EZ-EIC. The eligibility tests were the same as the traditional financial services ITC and EIC.

Credits effective for tax years beginning on or after January 1, 1987

Employment incentive credit

Effective date: Effective for tax years beginning on or after January 1, 1987.

Sunset date: None

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 ITC is earned.

The amount of the credit is as follows:

5% of the ITC base if employment is at least 101% but less than 102% of the employment base year;
0% of the ITC base if employment is at least 102% but less than 103% of the employment base year;
5% of the ITC base if employment is at least 103% of the employment base year.

Credit for research and development property under the ITC

Effective date: Effective for tax years beginning on or after January 1, 1987.

Sunset date: None

Research and development (R&D) property acquired on or after January 1, 1987 qualifies for the ITC. Taxpayers may elect the regular ITC rate and potentially claim the EIC, or an optional rate on R&D property of 9 percent for taxable years beginning in 1990. If taxpayers elect the higher rate, they cannot claim the EIC on the same investment.

Credits effective for tax years beginning on or after January 1, 1990

Alternative minimum tax credit

Effective date: Effective for tax years beginning on or after January 1, 1990.

Sunset date: Beginning on or after January 1, 2015, the credit is no longer necessary as the base for the credit has been eliminated under corporate tax reform.

Taxpayers began to accumulate the alternative minimum tax (AMT) credit in 1990. Beginning in 1991, taxpayers could claim the AMT credit against their entire net income (ENI) base tax for a portion of AMT paid in 1990 and subsequent years. A taxpayer can use the AMT credit to reduce its ENI tax liability to the fixed dollar minimum, the capital base, or the AMT base, whichever is highest. The credit cannot be used against the subsidiary capital base.

The calculation of the minimum tax credit involves a two-step process. The taxpayer calculates a “tentative” minimum tax by subtracting from the minimum tax the highest of the tax on entire net income, the tax on business and investment capital, or the fixed dollar minimum tax.

In the second step, corporations recalculate the minimum tax they would have paid, accounting for only two specific tax preferences.

The first is the preference related to depletion under IRC Section 57(a)(1). The second is the preference related to the appreciated property charitable deduction under IRC Section 57(a)(6)(b). In addition, prior to 1994, both minimum tax calculations disallowed the net operating loss deduction, and required single weighting of the receipts factor.

Corporations reduce this recalculated minimum tax by the highest of the tax on entire net income, the tax on business and investment capital, or the fixed dollar minimum tax. The result of subtracting the recalculated minimum tax from the “tentative” minimum tax equals the minimum tax credit available for subsequent years.

Effective for taxable years beginning in 1994, taxpayers may claim an AMT credit against ENI-base tax liability for part of the net operating loss deduction not used in computing the AMT.

Taxpayers may calculate the AMT credit retroactively for taxable years after 1989 and carry forward the credit indefinitely.

The pre-1994 net operating loss component is subject to a five-year transition rule, beginning in taxable years after 1993 and ending before 1999. Under the transition rule, a taxpayer may use up to 20 percent of the credit in each of the five years beginning with the 1994 tax year. Taxpayers will have available the remainder of any unused credit for tax years after 1999.

Credits effective for tax years beginning on or after January 1, 1995

Mortgage servicing tax credit

Effective date: Effective for tax years beginning on or after January 1, 1995.

Sunset date: None

Mortgage bankers, registered under Article 12-D of the Banking Law and meeting certain regulatory requirements established by the State of New York Mortgage Agency (SONYMA), may claim a credit against their franchise tax. The credit equals 2.93 percent of the total principal and interest collected by the bank for each SONYMA mortgage secured by a one-to-four family residence. In addition, mortgage bankers may receive an amount equal to the interest collected during their taxable year on each SONYMA mortgage, secured by a five or more family residence, multiplied by a fraction. The fraction depends on the types of properties which secure the serviced mortgage loans. The credit may be applied against the mortgage banker’s liability to reduce their liability to zero. There is no carryforward of excess credit.

Credits effective for tax years beginning on or after January 1, 1997

Rehabilitation credit for historic barns

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

Sunset date: Beginning on or after January 1, 2015, the credit has been eliminated as a result of corporate tax reform.

Taxpayers could previously claim a tax credit for the rehabilitation of historic barns in New York State. The credit equaled 25 percent of qualified rehabilitation expenditures. The definition of a qualified rehabilitated barn had the same meaning as a “qualified rehabilitated building” for purposes of the federal rehabilitation credit under Section 47 of the Internal Revenue Code. In accordance with federal law for rehabilitation of historic buildings, the barn must have been placed in service before 1936 and only qualified for the credit based on substantial rehabilitation. Generally, a building was considered substantially rehabilitated only if the expenditures exceeded the greater of the adjusted basis of the barn or $5,000. A taxpayer could not claim both the regular investment tax credit on manufacturing property and the investment tax credit for rehabilitation of historic barns on the same property.

Farmers’ school tax credit

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

Sunset date: None

Eligible farmers may claim a refundable real property tax credit against the corporate franchise tax. The credit is available to an eligible farmer, defined as a taxpayer whose gross income from farming is at least 2/3 of total gross income. Eligible farmers also include those who paid school district property taxes on qualified agricultural property pursuant to a land contract. The credit equals the total school property taxes paid on qualified agricultural property in the State up to the acreage limitation, and 50 percent of the school taxes paid on acres in excess of the limitation. The acreage limitation has been increased periodically:

100 acres in 1997
250 acres between 1998 and 2005
350 acres in 2006 and after.

The credit is phased out for taxpayers with New York adjusted gross income (entire net income) in excess of $200,000. Recapture provisions provide for an addback of the credit if the taxpayer converts the property to a nonqualified use in the two years subsequent to the first year of the credit.

Credits effective for tax years beginning on or after January 1, 1998

Alternative fuels credit

Effective date: Effective for property placed in service in taxable years beginning on or after January 1, 1998.

Sunset date: Expired January 1, 2011; see similar credit effective January 1, 2013.

Prior to 2005, a tax credit was allowed for electric vehicles, clean fuel vehicles using natural gas, methanol and other alternative fuels, qualified hybrid vehicles, and clean fuel refueling facility property. For corporate franchise taxpayers, the credits could be transferred to affiliates. The tax credits equaled: 50 percent of the incremental cost of new electric vehicles registered in New York (capped at $5,000 per vehicle); 60 percent of the cost of new clean-fuel components for alternative fuel vehicles registered in New York (capped at $5,000 per vehicle with a gross vehicle weight rating of 14,000 pounds or less, and $10,000 for those over 14,000 pounds); $2,000 for qualified hybrid vehicles; and 50 percent of the cost of new clean-fuel refueling property used in a trade or business. For tax years beginning on or after January 1, 2000, the credits applied to electric vehicles and clean fuel vehicle property sold or leased to governmental agencies. The vehicles had to be manufactured in New York State. In addition, the manufacturing and processing activities relating to the vehicles had to create at least 25 full time jobs in New York. Any excess credit generated by sales or leases to governmental agencies was refundable.

Starting on January 1, 2005, only credit for clean-fuel vehicle refueling property was allowed. The credit equaled 50 percent of the cost of property used more than 50 percent of the time in a trade or business located in New York State. The property was defined in the Internal Revenue Code. To be eligible for the alternative fuels credit, property initially must have been qualified for the federal clean-fuel deduction under Internal Revenue Code (IRC) section 179A. Federal legislation converting the deduction to a credit necessitated an amendment to the New York credit. Qualified property had to be eligible for the federal credit under IRC section 30C.

Carryforwards of credit from qualified vehicles and vehicle refueling property is still allowed.

ITC for the financial services industry

Effective date: Effective for property placed in service on or after January 1, 1998.

Sunset date: Expired October 1, 2015.

An ITC was allowed for qualified property used in the financial services industry and placed in service prior to October 1, 2015. The rate of credit, maximum amounts, carryforward provisions, and recapture rules were generally the same as the regular ITC.

To be eligible, the property must have been principally used in the course of the taxpayer’s business: as a broker or dealer in connection with the purchase or sale of stocks, bonds, commodities, or other securities; as a provider of lending, loan arrangement, or loan origination services to customers in connection with the purchase or sale of securities; or as a provider of investment advisory services for a regulated investment company. In addition, qualified property included property used in the course of the taxpayer’s business as an exchange registered as a national securities exchange or a board of trade, 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 securities exchanges or boards of trade.

Property purchased or leased by a taxpayer affiliated with a regulated broker/dealer, national securities exchange, or board of trade was also eligible for credit if the property was principally used in the qualifying activities described above.

Starting in 2008, in determining whether the property was principally used in a qualifying activity, a taxpayer could aggregate its uses as a broker/dealer and a provider of investment advisory services. Furthermore, it could aggregate it uses with affiliated broker/dealers and registered investment advisors.

Finally, to be eligible for credit a taxpayer must have satisfied an employment test. Prior to 2008, taxpayers could use either an 80% current year test or a 95% three-year back-office test that was created administratively. Starting in 2008, those two tests were codified and a third test was created - the 90% end-of-year test.

80% current-year test - 80 percent or more of the employees performing the administrative and support functions related to the qualified use of the property are located in New York State;
95% three-year back-office test - The average number of employees performing the administrative and support functions related to the qualified use of the property and located in New York State during the year the credit is claimed is greater than or equal to 95 percent of the average number of such employees during the 36 months immediately preceding the tax year of the credit claim;
90% end-of-year test - the number of New York State employees in the current tax year is greater than or equal to 90 percent of such employees on:
1. December 31, 1998 if the taxpayer was a calendar year filer taxable in New York State in 1998; or
2. the last day of the first taxable year ending after December 31, 1998 if the taxpayer was a fiscal year filer or not subject to tax in 1998.

If a taxpayer was first subject to tax in New York State after the 1998 tax year, it was exempt from the employment tests for its first taxable year.

If aggregation was required to satisfy the “principally used” property test then either each affiliate had to satisfy the employment test individually or the employees of the taxpayer could be aggregated with the employees of its affiliated broker/dealer or registered investment advisor.

The financial services ITC credit expired on October 1, 2015. Amounts of unused credit attributable to property placed in service prior to that date can continue to be carried forward for use in future years.

Credit for employment of persons with disabilities

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

Sunset date: None

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). Beginning in tax year 2025, the credit allowed under Articles 9-A and 22 is $5,000 for qualified first-year wages. 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.

Credits effective for tax years beginning on or after January 1, 1999

Qualified Emerging Technology Company (QETC) tax credits

There are three tax credits related to businesses that qualify as qualified emerging technology companies: an employment credit, a capital credit, and a facilities, operations, and training (FOT) credit.

For the employment and capital credits, a QETC is a business that is located in New York State, has total annual sales of $10 million or less, and either: has a ratio of research and development (R & D) funds to net sales that equals or exceeds an average ratio; or has products or services classified as emerging technologies. The ratio is updated annually and is included in the instructions for the credit forms. Likewise, the definition of emerging technologies is included in the instructions.

To claim the employment credit, a QETC must also have an average number of individuals employed full-time in New York State equal to at least 101 percent of its base-year employment.

For the FOT credit, prior to its expiration, businesses must have had primary products and services that are themselves emerging technology and satisfy additional restrictions. First, a business must have 100 employees or less, with at least 75 percent employed in New York State. Also, the R & D funds to net sales ratio must equal or exceed 6 percent. Finally, gross revenues may not exceed $20 million for the immediately preceding tax year.

QETC employment credit

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

Sunset date: None

The employment tax credit equals $1,000 for each individual employed over a base year level and is allowed for three years. Excess credit may be refunded.

QETC capital credit

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

Sunset date: None

The capital tax credit is available to taxpayers making qualified investments in certified QETCs. The credit varies in amount depending on how long the investment is held. Investments held for four years from the close of the tax year in which the QETC capital tax credit is first claimed qualify for a 10 percent credit. Investments held for nine years qualify for a 20 percent credit.

The total amount of credit allowable to a taxpayer for all years may not exceed $150,000 for credit computed at the 10 percent rate, and $300,000 for credit computed at the 20 percent rate. Also, the credit and any carryforwards may not exceed 50 percent of the tax due prior to the application of any other tax credits.

Credits effective for tax years beginning on or after January 1, 2000

Industrial or Manufacturing Business (IMB) tax credit

Effective date: Effective for tax years beginning on or after January 1, 2000.

Sunset date: Expired January 1, 2007.

Industrial or manufacturing businesses (IMBs) were allowed a credit to be taken against taxes due under Article 9-A. The credit was the sum of taxes paid during the taxable year by their suppliers, due under the provisions of Tax Law Sections 186-a, 186-c, 189, and 189-a of Article 9 for gas, electricity, steam, water, or refrigeration; or the services of providing such, which are used or consumed in New York. Energy providers furnished taxpayers, on request, information on the amounts due and paid for these taxes during the taxpayer’s liability year.

To qualify for the IMB credit, a taxpayer must have been a business which during the taxable year was principally engaged in: manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horticulture, floriculture, viticulture, commercial fishing, or research and development; or was an industrial waste treatment facility or an air pollution control facility; or was principally engaged in a combination of such activities.

Low-income housing credit

Effective date: Effective for tax years beginning on or after January 1, 2000.

Sunset date: None

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 (DHCR) for a long-term commitment to low-income housing. The amount of the credit depends on the applicable percentage of the qualified basis of each low-income building. The credit amount allocated by DHCR is allowed as a credit against tax for ten tax years. Unused credits may be carried forward indefinitely.

Credits effective for tax years beginning on or after January 1, 2001

Qualified Empire Zone Enterprise (QEZE) credits

Empire Zone businesses that satisfied an annual employment test could become Qualified Empire Zone Enterprises (QEZEs), eligible for the QEZE real property tax credit and the QEZE tax reduction credit.

QEZE real property tax credit

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

Sunset date: The Empire Zones Program expired on June 30, 2010, however taxpayers are allowed to claim credit for the duration of their benefit periods provided they continue to meet all eligibility criteria.

The QEZE real property tax credit (RPTC) is fully refundable and is calculated differently, depending upon the date the taxpayer was first certified by Empire State Development.

Certifications prior to April 1, 2005

The QEZE RPTC is the product of three factors:

a benefit period factor, based on the number of years the taxpayer has been certified as a QEZE;
an employment increase factor, which varies depending upon the number of jobs created by the QEZE; and
eligible real property taxes paid by the QEZE.

For taxpayers certified on or after August 1, 2002, the amount of credit claimed was limited to the greater of the employment increase limitation or the capital investment limitation. The employment increase limitation is the product of $10,000 and taxable year employment minus test year employment. The capital investment limitation is 10 percent of the cost or other basis of the real property multiplied by the greater of the percentage of the property which is physically occupied and used by the QEZE, or the percentage of the cost or other basis attributable to the construction, expansion, or rehabilitation of the real property (as opposed to the acquisition). If 50 percent or more of the cost is attributable to the aforementioned activities, the percentage is deemed to be 100 percent.

The QEZE tax credits for business enterprises first certified before April 1, 2005, are generally available for 14 taxable years provided the QEZE annually meets an employment test. The law provides that such business enterprise may be a QEZE for up to 15 years (the business tax benefit period). However, because the benefit period factor for year 15 is 0, there are no credits available for that year.

Certifications on or after April 1, 2005

For businesses certified on or after April 1, 2005, there are two separate credit calculations and the credit contains different restrictions depending upon whether the QEZE is located in an Investment Zone (IZ) or a Development Zone (DZ). Manufacturers calculate their credit as if they were located in an IZ however.

The credit equals 25 percent of the wages, health benefits, and retirement benefits of net new employees. Net new employees are calculated by subtracting the base period employment from taxable year employment. Wages and benefits in excess of $40,000 are excluded and the credit cannot exceed $10,000 per employee.

QEZEs located in a DZ must reduce their credit by an employment increase factor:

Employment increase factor
Net new employees	Employment increase factor
1 to 10	0.25
11 to 49	0.5
50 to 75	0.75
76+	Amount divided by 100, up to 1.0

Taxpayers claim the greater of the amount of credit or the capital investment limitation, but neither may exceed the amount of the taxpayer’s eligible real property taxes for the taxable year.

QEZEs located in an IZ and all manufacturers calculate their capital investment limitation in the same manner as taxpayers certified on or after August 1, 2002, but taxpayers located in a DZ are subject to a more restrictive limitation.

The DZ investment limitation equals the product of the percentage of the property which is physically occupied and used by the QEZE, and 10 percent of the amount of the cost or other basis attributable to the construction, expansion, or rehabilitation of the real property (as opposed to the acquisition). If 50 percent or more of the cost is attributable to the aforementioned activities, then the percentage is deemed to be 100 percent.

A business enterprise first certified on or after April 1, 2005, may be a QEZE for up to ten years. The credit will be available for each of the 10 years but only for those taxable years for which the employment test is met.

Certifications on or after April 1, 2009

The rules and calculations are the same as certifications on or after April 1, 2005 except that the QEZE RPTC is reduced by an additional 25 percent.

QEZE tax reduction credit

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

The QEZE tax reduction credit is the product of four factors:

a benefit period factor, based on the number of years the taxpayer has been certified as a QEZE;
an employment increase factor that varies depending upon the number of jobs created by the QEZE;
a zone allocation factor that measures the economic presence of the QEZE in the EZ and in New York State; and
a tax factor that is the larger of the tax on the entire net income base or the minimum taxable income base. For tax years beginning on or after January 1, 2015 the tax factor is the QEZE’s tax on the business income base.

The credit is non-refundable, but could be used against the alternative minimum tax base when it was in effect prior to 2015. If a taxpayer is wholly located within a zone (has a zone allocation factor of 100 percent), it may apply the credit against the fixed dollar minimum tax.

A business enterprise first certified before April 1, 2005, may be a QEZE for up to 15 years. A business enterprise first certified on or after April 1, 2005, may be a QEZE for up to 10 years. In both cases, the credit will be available only for those taxable years for which the employment test is met.

Credit for purchase of an automated external defibrillator

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

Sunset date: None

Taxpayers may claim a credit for the purchase of an automated external defibrillator. The amount of the credit is equal to the cost of the defibrillator but is capped at $500 per unit. There is no limit on the number of units for which the credit may be taken. The credit is nonrefundable and excess credit may not be carried forward.

Green building credit

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

Sunset date: Expired January 1, 2015, however the credit is nonrefundable and if the amount of the credit exceeds the taxpayer’s tax for the year, the excess may be carried over to the following year(s).

The green building credit provides incentives for the construction, rehabilitation, and maintenance of buildings with high environmental standards and energy efficiency. The credit rewards the use of environmentally preferable building materials and renewable and clean energy technologies.

There are six different credit components for which a taxpayer may be allowed a credit. Each credit component has its own requirements, formula for calculating the amount of the credit, and cap. A taxpayer may be allowed one or more of these components, with certain restrictions. The components are:

whole building credit component (owner or tenant) - where base building and all tenant space are green;
base building credit component (owner) - applies to areas not intended for occupancy by either a tenant or owner;
tenant space credit component (owner or tenant);
fuel cell credit component;
photovoltaic module credit component; and
green refrigerant credit component.

To obtain eligibility for the green building credit, the taxpayer must first apply to the Department of Environmental Conservation for an initial credit component certificate. The certificate will set forth the first taxable year for which the credit may be claimed and the maximum credit amount allowable to the taxpayer. The credit may be claimed for five taxable years beginning with the first taxable year allowed pursuant to the certificate. In addition, for each taxable year that a credit is claimed, a taxpayer will have to obtain an eligibility certificate issued by a licensed architect or engineer certifying that the project meets the standards for green buildings.

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.

Where a credit has been allowed to an owner who sells a building or to a tenant who terminates his or her tenancy within the period for allowance of the credit, the successor owner or successor tenant will be allowed the credit for the remainder of the period, as long as the property continues to meet the applicable environmental standards.

Credits effective for tax years beginning on or after January 1, 2002

Long-term care insurance credit

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

Sunset date: None

Taxpayers may claim a credit equal to a percentage of the premiums paid during the tax year for the purchase of, or for continuing coverage under, a long-term care insurance policy that qualifies for the credit pursuant to Insurance Law section 1117. When enacted, the credit rate was 10 percent. Subsequent legislation increased the credit to 20 percent for tax years beginning after 2003. For tax years beginning on or after January 1, 2020, the credit has been amended to allow only a New York resident taxpayer with New York adjusted gross income of less than $250,000 to be eligible for a credit equal to 20% of the premium paid during the taxable year for long-term care insurance. The credit cannot exceed $1,500. The credit is nonrefundable but may be carried forward indefinitely.

A qualifying long-term care insurance policy is one that is:

approved by the New York State Superintendent of Insurance pursuant to section 1117(g) of the Insurance Law; or
a group contract delivered or issued for delivery outside of New York State that is a qualified long-term care insurance contract as defined in Internal Revenue Code section 7702B.

Credits effective for tax years beginning on or after January 1, 2004

Empire state film production credit

Effective date: Effective for tax years beginning on or after January 1, 2004.

Sunset date: January 1, 2037.

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 2036, 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. For initial applications received after January 1, 2025, the credit is increased by an additional 10 percent for qualified production costs attributable to musical scoring when such scoring costs include payment to a minimum of five musicians. 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.

A new “production plus program” is established for tax years beginning on or after January 1, 2025. Qualified independent film production companies, qualified film production companies, or a company that is a majority owner of one or more qualified film production companies or qualified independent film production companies that undertake multiple productions in New York State may be eligible for a tax credit (in addition to the film production credit) for qualified production costs incurred on subsequent films or television series. A production company that submits at least two applications to the film production tax credit program after January 1, 2025, the sum of which total at least $100 million in qualified production costs in New York State, can receive an additional credit equal to 10 percent of qualified production costs. For independent film production companies that cannot meet the $100 million test, if two applications total at least $20 million, the additional credit is 5 percent. Initial applications for feature length films and new television series submitted after December 31, 2028 shall not be eligible for the program.

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 2036, 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 2036, 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, and before January 1, 2025, the utilization of the credit is spread across several years, depending on the size of the credit:

Film credit amount claimed
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

For applications submitted after January 1, 2025, the bifurcation/trifurcation claiming period of the film production and/or post-production is eliminated, now allowing the credit(s) to be claimed for the taxable year in which the qualified film is completed.

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, and before January 1, 2025, 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. In the case of a qualified film for which the credit application was received on or after January 1, 2025, the credit shall be claimed in the taxable year that includes the last day of the allocation year for which the film has been allocated a credit. If a certificate of tax credit is revoked because taxpayer did not meet the eligibility requirements, the amount of credit claimed prior to the revocation shall be added back to tax in the taxable year in which any such revocation becomes final.

Credits effective for tax years beginning on or after January 1, 2005

Qualified Emerging Technology Company (QETC) facilities, operations, and training credit

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

Sunset date: Expired January 1, 2012.

The FOT credit consists of three components:

18 percent of R & D property, costs, and fees incurred in connection with emerging technology activities;
9 percent of qualified research expenses; and
100 percent of qualified high-technology training expenses, limited to $4,000 per employee per year.

The total amount of credit was limited to $250,000 per year and was fully refundable.

The credit could be claimed for four consecutive years. However, taxpayers relocating from an academic incubator facility could claim credit for an additional year and elect to defer the start of the five-year period until after they left the facility.

Security training tax credit

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

Sunset date: None

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

Credits effective for tax years beginning on or after April 1, 2005

Brownfields tax credits

Refundable tax credits are available to taxpayers that remediate a site under the Brownfield Cleanup Program (BCP). The credits are effective for tax years beginning on or after April 1, 2005. There are three distinct program groups with different credit rules and rates depending on when the brownfield project was accepted into the BCP:

Sites accepted into the BCP prior to 6/23/08 (note: sites that do not receive a certificate of completion (COC) by 12/31/17 will only be eligible for the brownfield redevelopment tax credit available as if the site was accepted into the BCP on or after 7/1/15)
Sites accepted on or after 6/23/08 but before 7/1/15 (note: sites that do not receive a COC by 12/31/19 will only be eligible for the brownfield redevelopment tax credit available as if the site was accepted into the BCP on or after 7/1/15)
Sites accepted into the program on or after 7/1/15 (note: sites must be accepted into the BCP before 1/1/23 and will have until 4/1/26 to receive a COC)

The brownfield redevelopment tax credit is available under all three program groups, but the remediated brownfield credit for real property taxes and the environmental remediation insurance credit are only available for sites accepted into the BCP prior to 7/1/15.

Brownfield redevelopment tax credit

Effective date: Effective for tax years beginning on or after April 1, 2005.

Sunset date: Eligibility contingent on site being accepted into the Brownfield Cleanup Program before January 1, 2033, if they receive a certificate of completion prior to January 1, 2037.

The brownfield redevelopment tax credit equals the sum of three credit components: site preparation, on-site groundwater remediation and tangible property.

The site preparation credit component is allowed for costs incurred after the execution date of the brownfield site cleanup agreement (BCA) and is granted in the tax year in which the improvement to which the costs apply is placed in service. Furthermore, it is allowed for up to five tax years after the year a Certificate of Completion (COC) is issued. However, no credit is allowed for costs paid or incurred before the execution of the BCA. The period to claim the site preparation credit component has been extended to seven taxable years after the COC was issued for qualified sites issued a COC on or after July 1, 2015, but on or before June 24, 2021.

Similarly, the on-site groundwater remediation credit component is allowed for costs paid and incurred after the execution date of the BCA and is granted in the tax year in which the COC is issued. For costs paid or incurred in tax years occurring after the COC is issued, the credit is allowed in the tax year in which the costs are paid or incurred, up to five tax years after the COC is issued. The period to claim the on-site groundwater remediation credit component has been extended to seven taxable years after the COC was issued for qualified sites issued a COC on or after July 1, 2015, but on or before June 24, 2021.

Lastly, the tangible property credit component is allowed for qualified tangible property in the tax year the qualified tangible property is placed in service on a qualified site. The tangible property component may be claimed for qualified tangible property placed in service for up to ten tax years after the year the COC is issued.

Projects accepted prior to June 23, 2008

The credit equals 12 percent of costs associated with each component. The credit increases by two percent if the site is remediated to a Track 1 cleanup level as determined by DEC, and by another 8 percent if at least one half of the site is located in an Environmental Zone (En-Zone).

An En-Zone is an area designated by the Commissioner of Economic Development and, as of the 2000 census, has a poverty rate of at least 20 percent and an unemployment rate of at least 1¼ times the statewide unemployment rate.

Projects accepted on or after June 23, 2008 but before July 1, 2015

The credit structure differs for projects accepted into the BCP on or after June 23, 2008 but before July 1, 2015. The tangible property component is subject to the same rates as those projects accepted into the BCP prior to June 23, 2008, but with an additional two percent allowed for projects located in a Brownfield Opportunity Area (BOA), as determined by the New York Secretary of State.

The tangible property component is also subject to a cap. The cap equals the lesser of $35 million or three times the costs included in the computation of the site preparation and groundwater cleanup components. The cap rises to $45 million or six times the costs included in the other components if the site is primarily used for manufacturing activities.

The rates for the site preparation and on-site groundwater remediation credit components are amended as well. The rates, by site acceptance date and component are detailed in the following table.

Brownfield redevelopment tax credit rate structure
Rate structure	Sites accepted into program prior to 6/23/08	Sites accepted post-6/23/08 but before 7/1/15	Sites accepted into program on or after 7/1/15 but before 1/1/23**	Sites accepted into BCP on or after 1/1/23
Tangible property component
Base rate	10%/12%*	10%/12%*	10%	10%
Track 1 remediation	+2%	+2%	+5%	+5%
50%+ of site in Environmental Zone (En-Zone)	+8%	+8%	+5%	+5%
Brownfield Opportunity Area (BOA)		+2%	+5%	+5%
Affordable housing			+5%	+5%
Manufacturing			+5%	+5%
Sites located in disadvantaged communities				+5%
Renewable energy facility sites				+5%
Site preparation/Groundwater remediation components
Unrestricted use	The rates above apply to all 3 components; there are no separate rates for these categories	50%	50%	50%
Residential use		40%	40%	40%
Commercial use		33%	33%	33%
Industrial use		27%	27%	27%
Residential – Track 4		28%	28%	28%
Commercial – Track 4		25%	25%	25%
Industrial – Track 4		22%	22%	22%

Legend
*	For fields with separate rates, the values are for the personal income tax then corporate tax, respectively
**	Maximum tangible property component rate is capped at 24%

Projects accepted on or after July 1, 2015 but before January 1, 2023

The SFY2015-16 Executive Budget extended and enacted significant changes to the Brownfield Cleanup Program (BCP). The most notable change includes creating a 10 percent base rate for the tangible property component with 5 percent bonuses for sites in an En-Zone, sites in a Brownfield Opportunity Area, affordable housing projects, track 1 remediation, and sites used in manufacturing; however the rate is capped at 24 percent (see above table).

Other notable changes that apply to projects accepted into the BCP on or after July 1, 2015 include limiting eligibility for the tangible property component to: sites where the property value is less than cleanup costs, sites located in Environmental Zones (En-Zones), and affordable housing projects; and adding lead, asbestos, and PCB remediation to allowable site preparation costs. In addition, responsibility for En-Zone designation is transferred from the Department of Economic Development to the Department of Labor and the poverty and unemployment rate metrics will be based on the most recent five year American Community Survey instead of the decennial census.

Starting with taxable year 2022, for sites complying with track one remediation standards, athletic facilities and their components will be considered buildings and structural components under the Internal Revenue Code for the purposes of this credit. Athletic facilities include stadiums, baseball parks, basketball courts, and other athletic facilities. Their components include sports field turf, site lighting, sidewalks, access and entry ways, and other improvements added to land.

Generally, the tangible property credit component is claimed at the time the property is placed in service. In the case of eligible affordable housing projects, condominiums, and cooperative housing corporations, tangible property is considered placed in service when a certificate of occupancy (CO) is issued which can be a CO other than the final CO. However, the costs used when calculating the credit:

may only be claimed once (placed property in service once),
cannot include costs for repairs, replacements, and improvements to property previously placed in service, and
may not include costs incurred after the issuance of the final CO.

Note that the credit must be claimed in the year that the CO is issued, or the year the certificate of completion is issued, whichever is later. This rule is applicable to all taxpayers regardless of their chosen method of accounting.

Finally, three timing changes have been incorporated for the tangible property component. First, the tangible property component is allowed for the tax year in which the property is first placed in service on a qualified site for which a COC has been issued by the Department of Environmental Conservation (DEC). Second, property placed in service prior to the issuance is allowed to generate credit in the tax year in which the COC is issued. And third, the post-COC window for additional tangible property component is changed to 120 months from the date of the COC issuance.

As a result of the COVID-19 pandemic for certificates of completion issued on/after March 20, 2010 but before January 1, 2012, the benefit period for the tangible property component can be extended to 144 months, from 120 months, for the date the COC is issued. Chapter 58 of the Laws of 2022 further extended the period to claim the tangible property credit component to 180 months after the COC was issued for qualified sites issued a COC on or after March 20, 2010, but before December 31, 2015.

Projects accepted on or after January 1, 2023

New enhanced credit project categories have been added for sites accepted into the Brownfield Cleanup Program on or after January 1, 2023, that have submitted sufficient information to demonstrate their eligibility. Each project category permits a 5% increase to the credit component rate, not to exceed a combined credit component rate of 24%. For sites located in a city having a population of one million or more, the redevelopment use limits for tangible property credit eligibility have been expanded to include these additional project categories. The new categories, as defined in Environmental Conservation Law § 27-1405, are:

Disadvantaged community, and
Renewable energy facility.

In addition, for sites located in a city having a population of one million or more that have submitted sufficient information to demonstrate their eligibility, two existing project categories have been amended:

Sites located in a designated eligible brownfield opportunity area must meet the conformance determinations pursuant to General Municipal Law § 970-r(10).
The Department of Environmental Conservation’s definition of affordable housing now includes a project situated on a brownfield site that demonstrates it will qualify for benefits or be eligible under an affordable housing program. A project must provide a certificate of compliance or other evidence of eligibility issued by a federal, state, or local government affordable housing agency to qualify for the 5% affordable housing rate bonus.

Remediated brownfield credit for real property taxes

Effective date: Effective for tax years beginning on or after April 1, 2005.

Sunset date: Not available to sites accepted into the BCP on or after July 1, 2015.

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 En-Zone the credit increases to 100 percent. The credit is not available to sites accepted into the Brownfield Cleanup Program on or after July 1, 2015.

Employment number factor table
Average number of full-time employees is at least:	Factor:
25 but less than 50	0.25
50 but less than 75	0.50
75 but less than 100	0.75
100	1.00

The credit is limited to the product of the number of full-time employees at the qualified site multiplied by $10,000.

Environmental remediation insurance credit

Effective date: Effective for tax years beginning on or after April 1, 2005.

Sunset date: Not available to sites accepted into the BCP on or after July 1, 2015.

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. The credit is not available to sites accepted into the Brownfield Cleanup Program on or after July 1, 2015.

Credits effective for tax years beginning on or after July 1, 2005

Fuel cell electricity generating equipment credit

Effective date: Effective for costs incurred on or after July 1, 2005.

Sunset date: Expired January 1, 2009.

Taxpayers could claim a credit equal to qualified fuel cell electric generating equipment expenditures for the tax year in which the equipment was placed in service, starting with costs incurred on or after July 1, 2005.

Qualified expenditures are associated with the purchase of on-site electricity generation systems utilizing proton exchange membrane fuel cells up to 100 kilowatts of rated capacity. The maximum credit was $1,500 per generating unit.

The SFY2009-10 budget repealed this credit, effective for tax years beginning on or after January 1, 2009. Taxpayers will be allowed to carry forward any unused credit indefinitely.

Credits effective for tax years beginning on or after January 1, 2006

Biofuel production credit

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

Sunset date: Expired January 1, 2020.

Taxpayers are allowed to claim a refundable credit for the production of biofuel in New York State. The credit equals 15 cents per gallon after the production of the first 40,000 gallons per year presented to market.

Biofuel means biodiesel, ethanol, and any other fuel that meets standards approved by the New York State Energy and Research Development Authority.

The credit is capped at $2.5 million per taxpayer per year for up to four consecutive years per biofuel plant. Starting in the 2010 tax year, the cap is imposed at the entity level.

Land conservation easement credit

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

Sunset date: None

Land that is under a conservation easement is eligible for a refundable credit equal to 25 percent of the taxpayer’s school district, county, and city/town real property taxes paid.

The maximum allowable tax credit is $5,000. Also, this credit in combination with any credit based on property taxes cannot exceed the total amount of school district, county, and town real property taxes.

A conservation easement is defined as a perpetual and permanent conservation easement that serves to protect open space, biodiversity, or scenic, natural, agricultural, watershed, or historic preservation resources. It must be filed with the Department of Environmental Conservation.

Credits effective for tax years beginning on or after January 1, 2007

Credit for rehabilitation of historic properties

Effective date: Effective for tax years beginning on or after January 1, 2007 with the amended credit effective for tax years beginning on or after January 1, 2010.

Sunset date: On January 1, 2030, the credit reverts to the initial rate and cap.

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. For taxable years beginning on or after January 1, 2026, a one-time transfer of the credit is allowed regardless of how the federal credit is allocated, when approved by the NYS Office of Parks, Recreation and Historic Preservation.

Empire state commercial production credit

Effective date: Effective for tax years beginning on or after January 1, 2007.

Sunset date: Expires January 1, 2029.

The Governor’s Office for Motion Picture and Television Development (MP/TV) administers a two-part credit designed to encourage the production of commercials in New York State. $7 million in aggregate credit is allowed annually, initially allocated as follows:

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

For calendar years beginning on or after January 1, 2012 but prior to January 1, 2019, the allocation was as follows:

Incremental cost component - $1 million;
MCTD component - $3 million; and
Outside MCTD - $3 million. If the amount authorized for this component exceeds claims, the excess may be redirected to the incremental cost component. Also, for tax years beginning in 2014 the minimum production cost threshold is lowered from $200,000 to $100,000.

Fifty percent of the credit is refundable in the first year, with the remainder fully refundable in the following year. The credit applies to tax years beginning before January 1, 2029.

Credits effective for tax years beginning on or after January 1, 2008

Clean heating fuel credit

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

Sunset date: Expires January 1, 2029.

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.

Credits effective for tax years beginning on or after August 11, 2010

Empire state film post-production credit

Effective date: Effective for tax years beginning on or after August 11, 2010.

Sunset date: January 1, 2037.

Companies that are ineligible for the film production credit may qualify for the film post-production credit. Prior to tax year 2025, 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. For applications received on or after January 1, 2025, eligible applicants must have incurred the lesser of $1 million or 75 percent of the amount of qualified post-production costs that exceed the total post-production costs of the qualified film. The credit is allowed for the taxable year in which the production of the qualified film is completed.

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 2036, 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 21, 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 2036, 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. If a certificate of tax credit is revoked because taxpayer did not meet the eligibility requirements, the amount of credit claimed prior to the revocation shall be added back to tax in the taxable year in which any such revocation becomes final.

Credits effective for tax years beginning on or after January 1, 2011

Credit for companies who provide transportation to individuals with disabilities

Effective date: Effective for tax years beginning on or after January 1, 2011.

Sunset date: Expires January 1, 2029.

Corporations providing a taxicab or livery service can claim a credit equal to the incremental cost associated with the purchase of a handicapped accessible vehicle or the conversion of a conventional vehicle to a handicapped accessible vehicle. The credit is limited to $15,000 per electric vehicle and $10,000 per other vehicles. Initially, the credit could be used to reduce tax to zero and any remaining credit was carried forward indefinitely. The credit applied to qualifying expenses incurred on or after January 1, 2006 but before January 1, 2011.

A similar credit was enacted that took effect on January 1, 2011 and expires after December 31, 2022. Prior to 2015, that credit could reduce tax to zero, but starting with the 2015 tax year, the credit can only reduce tax to the fixed dollar minimum tax.

Excelsior Jobs Program act tax credits

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

Sunset date: No credits allowed for taxable years beginning on or after January 1, 2045.

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 2034, 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 2034. 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, 2050. 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 and in 2025 for semiconductor supply chain projects.

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
- 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. For semiconductor supply chain projects, the credit is equal to gross wages multiplied by 7 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. For a semiconductor supply chain project, the credit shall be equal to three percent of the cost or other basis for federal income tax purposes of the qualified investment. 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. The credit for a semiconductor supply chain project is equal to seven percent of the 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. To be eligible for the enhanced childcare investment tax credit or the childcare services tax credit component, a company must be eligible for the Excelsior Jobs Program operating in and conducting an Excelsior project in one of the qualified strategic industries and operating or sponsoring childcare services to its employees.

Credits effective for tax years beginning on or after March 31, 2011

Economic transformation and facilities redevelopment program tax credit

Effective date: Effective on or after March 31, 2011.

Sunset date: Expires December 31, 2026.

The Economic Transformation and Facility Redevelopment (ETFR) Program is designed to mitigate the economic consequences in communities where correctional facilities and facilities operated by the Office of Children and Family Services (OCFS) are closed through the period ending March 31, 2012. Any psychiatric facility previously owned by New York State and operated under the Mental Hygiene Law, and located in the Metropolitan Commuter Transportation District (excluding New York City) will be considered a closed facility; however prospective participants must have submitted an application by September 1, 2016. The program is administered by Empire State Development (ESD) and offers a refundable tax credit with four components to redevelop closed facilities and attract new businesses to the surrounding areas. Participants may claim credit for five consecutive years.

To participate, taxpayers must create at least five net new jobs and maintain a benefit: cost ratio of 10:1.

ETFR 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.

ETFR 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. Eligible owners of closed psychiatric facilities, when claiming the credit, may include in its costs or other basis of the qualified investment at the closed facility, demolition costs incurred at the facility, limited to asbestos removal costs, rental of demolition equipment, personnel costs to operate the demolition equipment, costs to remove and dispose of demolition debris, and the costs of any permits, licenses and insurance necessary for demolition.

ETFR job training tax credit component

Participants may claim a credit for 50 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.

ETFR 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.

Credits effective for tax years beginning on or after January 1, 2012

Alcoholic beverage production credit (formerly the beer production credit)

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

Sunset date: None

Starting in the 2012 tax year, registered beer distributors producing 60 million or fewer gallons of beer in New York State in the tax year are eligible to claim a refundable credit for beer production. The credit is limited to the first 15.5 million gallons of beer produced in New York during the tax year.

For taxable years beginning on or after January 1, 2016, the beer production credit is expanded and renamed the alcoholic beverage production credit to include wine, liquor and cider. Specifically, the credit is available to taxpayers registered as a distributor in New York State that produce:

60 million gallons or less of beer or cider
20 million gallons or less of wine, and/or
800,000 gallons of less of liquor in New York State.

The credit is equal to 14 cents per gallon for the first 500,000 gallons of alcohol plus 4.5 cents per gallon for each additional gallon over 500,000 (up to 15 million additional gallons for beer, cider, or wine and up to 300,000 additional gallons for liquor) produced in New York 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: remains 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

In the case of partnerships and S corporations, the cap is applied at the entity level.

Empire State Jobs retention program credit

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

Sunset date: None

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. Prior to June 1, 2025, 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 participate in the program on or after June 1, 2025, a business entity must submit a plan to retain, restore or increase staffing levels within one year from the date of application to at least the staffing levels that existed at the site the day prior to the date of the applicable declaration of the state of emergency. The new credit rate varies based on the number of employees. The credit is equal to the amount of gross wages paid for impacted jobs times 15 percent for business entities that employ 3-49 employees; 7.5 percent for business entities that employ 50-100 employees; or 3.75 percent for business entities that employ over 100 employees. An eligible business entity may only receive up to $500,000 in tax credits per event triggering an emergency declaration by the governor. The participant has six months of eligibility.

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 is capped at $30 million allocated from the funds available for tax credits under the Excelsior Jobs Program Act.

New York youth jobs program tax credit (formerly NY youth works tax credit, urban youth jobs program tax credit)

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

Sunset date: Expires January 1, 2028.

The New York Youth Works Tax Credit Program, renamed the Urban Youth Jobs Program Tax Credit in 2015, and subsequently the New York Youth Jobs Program Tax Credit in 2017, is administered by the New York State Department of Labor (NYDOL). It is designed to provide tax incentives to employers for employing at-risk youth in full-time and part-time positions. Originally begun as a program for tax years 2012 and 2013, the program was expanded and extended in 2013 to incorporate five separate programs through tax year 2017, each with independent credit allocation caps. In 2017, the program was further extended through tax year 2022 with the addition of five additional programs.

In 2014 the allocations for programs two through five increased from $6 million to $10 million. In 2015 the allocations for programs three through five increased an additional $10 million per year. In 2016, the allocations for programs four and five were further increased to $50 million per program. The $50 million is distributed as follows: $30 million for qualified employees and $20 million for individuals, who meet all the requirements for a qualified employee except for the residency requirement, provided they reside in New York State. In 2017, programs six through ten were authorized an additional allocation of $40 million per year. In 2022, programs eleven through fifteen were also authorized an additional allocation of $40 million per year. The $40 million is distributed as follows: $20 million for qualified employees and $20 million for individuals, who meet all the requirements for a qualified employee except for the residency requirement, provided they reside in New York State.

The programs are as follows:

Program credit allocation
Youth works program	Total credit allocation	Employee hiring dates
Program 1	$25 million	1/1/12–12/31/13
Program 2	$10 million	1/1/14–12/31/14
Program 3	$20 million	1/1/15–12/31/15
Program 4	$50 million	1/1/16–12/31/16
Program 5	$50 million	1/1/17–12/31/17
Program 6	$40 million	1/1/18–12/31/18
Program 7	$40 million	1/1/19–12/31/19
Program 8	$40 million	1/1/20–12/31/20
Program 9	$40 million	1/1/21–12/31/21
Program 10	$40 million	1/1/22–12/31/22
Program 11	$40 million	1/1/23–12/31/23
Program 12	$40 million	1/1/24–12/31/24
Program 13	$40 million	1/1/25–12/31/25
Program 14	$40 million	1/1/26–12/31/26
Program 15	$40 million	1/1/27–12/31/27

The refundable 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. In 2014 the part-time hourly threshold for full-time high school students was lowered from 20 hours to 10 hours. This component of the credit will be allowed in the tax year in which the wages are paid to the qualified employee.

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. Beginning in 2014, an additional credit for the same amounts is available if the qualified employee remains employed for at least one additional year after the first year. These components of the credit will be allowed in the tax year in which the additional six-month or one-year period ends. In no case can the credit exceed the maximum amount of credit listed on the certificate of eligibility.

Credits effective for tax years beginning on or after January 1, 2013

Alternative fuels and electric vehicle recharging property credit

Effective date: Effective for tax years beginning on or after January 1, 2013.

Sunset date: Expires January 1, 2029.

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.

Credits effective for tax years beginning on or after January 1, 2014

Minimum wage reimbursement credit

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

Sunset date: Expired January 1, 2019.

Participants may claim a refundable credit equal to the number of hours worked by eligible employees multiplied by the applicable tax credit rate.

Eligible employees must be:

Employed by a corporation (including a New York S corporation), a sole proprietorship, a limited liability company or a partnership in New York;
Paid at the minimum wage rate;
Between the ages of 16 and 19; and
A student.

Amount of the credit:

$0.75 beginning on or after 01/01/14 to 12/31/14
$1.31 beginning on or after 01/01/15 to 12/31/15
$1.35 beginning on or after 01/01/16 to 12/31/19

If the federal minimum wage is increased to more than 85% of New York’s minimum wage, the above tax credit rates will be reduced to an amount equal to the difference between New York’s minimum wage and the federal minimum wage.

Real property tax relief credit for manufacturing

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

Sunset date: None

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.

START-UP New York tax elimination credit

The credit is available to general business corporations (as well as 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), which is administered by Empire State Development. The credit is equal to the product of:

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

The tax-free NY area allocation factor is the percentage of the business’s economic presence in the tax-free NY area where the business was approved to locate under Article 21 of the Economic Development Law. The tax-free area allocation factor is calculated as shown below:

(tax-free NY area property factor + tax-free NY area wage factor) ÷ 2

The tax- free NY area property factor is determined by dividing:

the average value of the business’s real and tangible personal property, whether owned or rented to it, in the tax-free NY area in which the business was located, during the period covered by the taxpayer’s return, by
the average value of all the business’s real and tangible personal property, whether owned or rented to it, within New York State during the period covered by the taxpayer’s return.

Value of the business’s real and tangible personal property means the adjusted basis of the properties for federal income tax purposes, except in the case of rented property, where the value is eight times the gross rents payable for the rental of the property during the taxable year.

The tax-free NY area wage factor is determined by dividing:

the total wages, salaries, and other personal service compensation paid during the taxable year to employees, except general executive officers, employed at the business’s location in the tax-free NY area, by
the total wages, salaries, and other personal service compensation paid during the taxable year to all of the business’s employees within New York State, except general executive officers.

The tax factor is the largest of the taxes on the entire net income base, capital base, or fixed dollar minimum tax after the deduction of any other credits. Special provisions exist for the computation of the tax factor if the certified business is part of a combined return.

The credit cannot reduce the tax due below the fixed dollar minimum unless the taxpayer has a tax-free NY area allocation factor of 100%. In that instance, the tax can be reduced to zero. Any excess credit may be refunded.

Credit for the excise tax on telecommunication services paid by START-UP NY businesses

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

Sunset date: None

The credit is available to a START-UP NY program participant located in a tax-free NY area. The credit is equal to the amount of excise tax on telecommunication services imposed by section 186-e of the Tax Law 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, the taxpayer must add back the federal deduction for excise taxes on telecommunication services used in the calculation of the credit to taxable income.

Credits effective for tax years beginning on or after January 1, 2015

Empire State musical and theatrical production credit

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

Sunset date: Expires on January 1, 2030.

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.

Employee training incentive program tax credit

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

Sunset date: Repealed as of December 31, 2028.

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.

Hire a veteran credit

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

Sunset date: Expires January 1, 2029.

Employers hiring a qualified veteran to begin employment on or after January 1, 2014, but before January 1, 2028, 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.

Workers with disabilities tax credit

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

Sunset date: Expires January 1, 2029.

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.

Credits effective for tax years beginning on or after January 1, 2017

Farm workforce retention credit

Effective date: Effective for tax years beginning on or after January 1, 2017.

Sunset date: Expires January 1, 2029.

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:

Eligible farm employee credit amount
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, 2029	$1200

Credits effective for tax years beginning on or after January 1, 2018

Life sciences research and development tax credit

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

Sunset date: No credit shall be allowed for taxable years beginning on or after January 1, 2028.

The refundable life sciences research and development tax credit is awarded by Empire State Development (ESD) and is funded from the Excelsior Program. ESD 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 annual maximum of $500,000.

Life sciences means agricultural biotechnology, biogenerics, 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.

Empire State apprenticeship tax credit

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

Sunset date: Expires January 1, 2028.

The refundable credit, administered and allocated by the Department of Labor (DOL), 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 each of the subsequent years before 2028.

The base credit for an eligible employer per 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 certified 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 his/her trade by a mentor. An additional $3,000 is available in years one, two, and three if the apprentice is a disadvantaged youth. An additional $2,000 is available in year four and $1,000 in year five. The credit is not allowed for construction work.

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. No individual employed by a qualified employer shall be deemed a qualified apprentice if such individual has not completed their apprenticeship training program within one year of their expected date of completion of their program.

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.

Credit for farmers who donate to a qualified food pantry

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

Sunset date: None

The refundable credit is equal to twenty-five percent of the fair market value of the taxpayer’s qualified donations, not to exceed $5,000. 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. For purposes of the credit, a qualified donation shall mean a donation of apparently wholesome food as defined in section 170 (e)(3)(C)(vi) of the internal revenue code that is grown or produced within the State.

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.

A taxpayer that claims the credit must subtract from their itemized deductions any amount deducted as a charitable contribution at the federal level for such qualifying donations.

Credits effective for tax years beginning on or after January 1, 2020

Employer provided child care credit

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

Sunset date: None

The 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 beginning on or after January 1, 2022 the amount of the credit is doubled to 200 percent of the credit allowed under IRC §45F and increases the per entity cap 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.

Recovery tax credit

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

Sunset date: None

The refundable credit is administered by the Office of Alcoholism and Substance Abuse Services (OASAS) 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. OASAS 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 OASAS by January 15^th for credit based on employment in the preceding year.

Credits effective for tax years beginning on or after January 1, 2021

Restaurant return-to-work tax credit

Effective date: Effective for tax years beginning on or after January 1, 2021.

Sunset date: December 31, 2021.

The credit is administered by Empire State Development (ESD) 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 which 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 ESD 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 ESD 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.

New York City musical and theatrical production tax credit

Effective date: Effective for tax years beginning on or after January 1, 2021.

Sunset date: January 1, 2028.

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. For tax years beginning or after January 1, 2025, an additional $100 million in total credit is available. 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.

Credits effective for tax years beginning on or after January 1, 2022

Grade No. 6 heating oil conversion tax credit

Effective date: Effective for tax years beginning on or after January 1, 2022.

Sunset date: For conversion costs paid on or after January 1, 2022, and before January 1, 2024.

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 section 19-0302 or Title 10 of Article 17 of the ECL that are paid on or after January 1, 2022, and before January 1, 2024. The New York State Energy Research and Development Authority (NYSERDA) 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 ASHRAE level 2 energy audit.

To qualify, a business must:

Incur expenses for the conversion of grade no. 6 heating oil to biodiesel oil or a geothermal system located in New York State outside of New York City;
Submit an application to and obtain approval from NYSERDA describing the conversion and the costs to complete it;
Not be principally engaged in generation or distribution of electricity, power or energy;
Be in compliance with all environmental conservation laws and regulations; and
Not owe past due state taxes unless the entity is making payments with an approved payment plan.

Covid-19 capital costs tax credit

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

Sunset date: The business entity must submit its application by September 30, 2023.

Small business taxpayers that incurred costs of at least $2,000 from January 1, 2021, through December 31, 2022 (and paid those costs on or before September 30, 2023), to comply with public health or other emergency orders or regulations related to the COVID-19 pandemic may claim a refundable 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 Empire State Development (ESD) for a certificate of tax credit and can claim credit in the tax year that includes the date the certificate is issued.

Additional restaurant return-to-work tax credit

Effective date: Effective for tax years that includes December 31, 2022.

Sunset date: December 31, 2022.

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

A business entity must submit an application to Empire State Development (ESD) by July 1, 2022, and once approved, ESD 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.

Farm employer overtime credit

Effective date: 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.

Sunset date: None

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. For tax years beginning on or after January 1, 2025, farm employers who indirectly paid eligible farm overtime through a qualified professional employer organization are eligible to claim this credit. These farm employers must apply to the Department of Agriculture and Markets to receive a certificate allowing them to claim 2024 and 2025 expenses on their 2025 tax return.

Beginning in tax year 2026, all farm employers must certify their annual eligible expenses with the Department of Agriculture and Markets in order to claim the credit. Employers must submit their application by February 1 after the calendar year in which the expenses were incurred, and the Department of Agriculture and Markets will issue the farm employer an overtime expense certificate indicating the eligible expenses for the credit.

Credits effective for tax years beginning on or after January 1, 2023

Empire State digital gaming media production tax credit

Effective date: Effective for tax years beginning on or after January 1, 2023.

Sunset date: January 1, 2028.

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 $5 million. The credit is administered by Empire State Development and up to $5 million of credit can be allocated a year. If the total amount of allocated credits applied for in any particular year is less than the aggregate amount of tax credits allowed for such year, any unused portion may be carried over and added to the aggregate amount of credits allowed in the next succeeding taxable year or years.

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 $200,000 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.

Credits effective for tax years beginning on or after April 1, 2023

Child care creation and expansion credit

Effective date: Effective for tax years beginning on or after April 1, 2023.

Sunset date: January 1, 2025.

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 Articles 9-A, 22, and 33 of the Tax Law. The credit, administered by the Office of Children and Family Services (OCFS), 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 OCFS 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 OCFS. To participate, a business entity must submit a complete application to OCFS by January 31st after the end of each year.

Credits effective for tax years beginning on or after January 1, 2024

Commercial security tax credit

Effective date: Effective for tax years beginning on or after January 1, 2024.

Sunset date: January 1, 2026.

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 articles 9, 9-A or 22 of the Tax Law; 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.

Credits effective for tax years beginning on or after January 1, 2025

Empire State independent film production credit

Effective date: Effective for tax years beginning on or after January 1, 2025.

Sunset date: None

Qualified independent film production companies taxable under Articles 9-A and 22 can claim a refundable credit equal to 30 percent of qualified production costs paid or incurred in the production of a qualified film. Qualified production costs must equal or exceed 75 percent of the production costs paid or incurred that are attributable to the use of tangible property or the performance of services at any film production facility within New York State in the production of a qualified film. Costs less than $3 million are only allowed if shooting days spent in New York State outside of the film production facility equal or exceed 75 percent of the total shooting days spent within and without the state in the production of the film. Productions with a minimum budget of $500,000 may receive an additional ten percent credit on qualified labor expenses and other costs incurred for production taking place within certain counties. An additional ten percent credit is also available for qualified production costs attributable to musical scoring when incurred within the state and when such scoring costs include payment to a minimum of five musicians. Production costs attributed to the film, excluding labor costs, are capped at $60 million and the credit is administered by the Governor’s Office for Motion Picture and Television Development. The aggregate amount of credit allowed in a calendar year is $100 million, with qualified films with budgets less than $10 million allocated $20 million and $80 million allocated for qualified films with a budget of $10 million or more. The credit is restricted to the production of two or less qualified films per calendar year and may be claimed in the taxable year in which production of the film is completed.

Newspaper and broadcast media jobs program credit

Effective date: Effective for tax years beginning on or after January 1, 2025.

Sunset date: January 1, 2028.

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 the Empire State Development (ESD) 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 $300,000 cap is applied on an entity basis and each print media publications servicing a different market is treated as a separate business.

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.

Semiconductor manufacturing workforce training program tax credit

Effective date: Effective for tax years beginning on or after January 1, 2025.

Sunset date: None

A business entity that meets the eligibility requirements of the Semiconductor Manufacturing Workforce Training Incentive Program, administered by Empire State Development, may be eligible to claim a credit available under Articles 9-A and 22 of the Tax Law. To be eligible for the credit, a business entity operating in New York as a semiconductor manufacturing business or a manufacturing business must conduct eligible training or procure eligible training for its employees from an approved provider. The credit is equal to 75 percent of wages, salaries or other compensation, training costs, and wrap around services, up to a credit of $25,000 per employee receiving eligible training, up to $1 million per eligible non-semiconductor manufacturing business, and up to $5 million per eligible semiconductor manufacturing business. The credit is capped at $20 million per taxable year and is allocated from the funds available for tax credits under the Excelsior Jobs Program. The refundable credit can be claimed in the taxable year in which the training is completed.

Semiconductor research and development tax credit

Effective date: Effective for tax years beginning on or after January 1, 2025.

Sunset date: None

The Semiconductor Research and Development Project Program, administered by New York State Empire State Development (ESD), provides a refundable tax credit under Articles 9- A and 22. To be eligible for the credit, a taxpayer must incur at least $100 million in qualified investment in New York State with the establishment and operation of a research and development (R&D) facility. The credit is equal to 15 percent of the cost of qualified investments in semiconductor R&D projects in New York State. The total amount of credits issued by ESD is allocated from the funds available from Green CHIPS tax credits under the Excelsior Jobs Program. The credit can be claimed in the taxable year the certificate of credit is issued. Participants may receive this credit for up to ten consecutive taxable years.

Updated: February 9, 2026

Article 9-A credit provisions

Credits effective for tax years beginning on or after:

Credits effective for tax years beginning on or after January 1, 1969

Investment tax credit

Credits effective for tax years beginning on or after January 1, 1979

Special additional mortgage recording tax credit

Credits effective for tax years beginning on or after June 1, 1981

Rehabilitation credit for retail enterprises

Credits effective for tax years beginning on or after January 1, 1986

Empire Zone/Zone Equivalent Area/Qualified Empire Zone Enterprise tax credits

Empire Zone (EZ) wage tax credit/Zone Equivalent Area (ZEA) wage tax credit

Empire Zone (EZ) capital tax credit

Empire Zone (EZ) investment tax credit

Empire Zone (EZ) investment tax credit for the financial services industry

Credits effective for tax years beginning on or after January 1, 1987

Employment incentive credit

Credit for research and development property under the ITC

Credits effective for tax years beginning on or after January 1, 1990

Alternative minimum tax credit

Credits effective for tax years beginning on or after January 1, 1995

Mortgage servicing tax credit

Credits effective for tax years beginning on or after January 1, 1997

Rehabilitation credit for historic barns

Farmers’ school tax credit

Credits effective for tax years beginning on or after January 1, 1998

Alternative fuels credit

ITC for the financial services industry

Credit for employment of persons with disabilities

Credits effective for tax years beginning on or after January 1, 1999

Qualified Emerging Technology Company (QETC) tax credits

QETC employment credit

QETC capital credit

Credits effective for tax years beginning on or after January 1, 2000

Industrial or Manufacturing Business (IMB) tax credit

Low-income housing credit

Credits effective for tax years beginning on or after January 1, 2001

Qualified Empire Zone Enterprise (QEZE) credits

QEZE real property tax credit

QEZE tax reduction credit

Credit for purchase of an automated external defibrillator

Green building credit

Credits effective for tax years beginning on or after January 1, 2002

Long-term care insurance credit

Credits effective for tax years beginning on or after January 1, 2004

Empire state film production credit

Credits effective for tax years beginning on or after January 1, 2005

Qualified Emerging Technology Company (QETC) facilities, operations, and training credit

Security training tax credit

Credits effective for tax years beginning on or after April 1, 2005

Brownfields tax credits

Brownfield redevelopment tax credit

Projects accepted prior to June 23, 2008

Projects accepted on or after June 23, 2008 but before July 1, 2015

Projects accepted on or after July 1, 2015 but before January 1, 2023

Projects accepted on or after January 1, 2023

Remediated brownfield credit for real property taxes

Environmental remediation insurance credit

Credits effective for tax years beginning on or after July 1, 2005

Fuel cell electricity generating equipment credit

Credits effective for tax years beginning on or after January 1, 2006

Biofuel production credit

Land conservation easement credit

Credits effective for tax years beginning on or after January 1, 2007

Credit for rehabilitation of historic properties

Empire state commercial production credit

Credits effective for tax years beginning on or after January 1, 2008

Clean heating fuel credit

Credits effective for tax years beginning on or after August 11, 2010

Empire state film post-production credit

Credits effective for tax years beginning on or after January 1, 2011

Credit for companies who provide transportation to individuals with disabilities

Excelsior Jobs Program act tax credits

Credits effective for tax years beginning on or after March 31, 2011

Economic transformation and facilities redevelopment program tax credit

ETFR jobs tax credit component

ETFR investment tax credit component

ETFR job training tax credit component

ETFR real property tax credit component

Credits effective for tax years beginning on or after January 1, 2012

Alcoholic beverage production credit (formerly the beer production credit)