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NYS Department of Taxation & Finance -
New York State Tax Credits

 

Investment

Investment Tax Credit (ITC)

  • Credit equals 5% of investment (up to $350 million; 4% rate on amount over $350 million and for personal income taxpayers) in buildings and tangible personal property, acquired by purchase, with a useful life of four years or more and used in production (manufacturing, processing, assembling, agriculture, refining, mining, extracting, farming, horticulture, viticulture, and commercial fishing), qualified film production facilities, waste treatment & pollution control property, or research and development property.
  • Optional R&D rate of 9% (the credit is 7% for personal income taxpayers) of qualified investment (see R & D credit below).
  • Credit can reduce tax to the higher of the alternative minimum tax or fixed dollar minimum tax (personal income taxpayers may reduce the tax to zero.)
  • Credit taken in the year investment made or property placed in service.
  • New businesses take a refund of unused credit.
  • Unused credits may be carried forward 15 years (10 years for personal income taxpayers).

 

Employment Incentive Credit (EIC)

  • Based on the same qualifying investment for the ITC.
  • Credit equals from 1.5% to 2.5% of investment, based on increased employment over year prior to investment (1.5% rate if less than 2% increase in employment; 2% rate if 3% increase in employment; 2.5% rate if 3% or greater increase in employment).
  • Credit can reduce tax to the higher of the alternative minimum tax or fixed dollar minimum tax.
  • Unused credits can be carried forward for 15 years (10 years for personal income taxpayers).
  • Credit allowed for each of the two years immediately following the year the ITC was allowed.
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    Investment Tax Credit for the Financial Services Industry

    • Taxpayers that are brokers or dealers in securities can receive an ITC for equipment of buildings used in broker/dealer activity.
    • The credit is available to qualified general business corporations, banks and insurance companies.
    • To be eligible for the credit, taxpayers must meet one of three employment tests and the property must be principally used in qualifying activities.
    • Property must be placed in service prior to October 1, 2015.

Research/Emerging Technology

R&D Credit

  • An investment tax credit equal to 9% of qualified investment in R&D buildings and tangible personal property (the credit is 7% for personal income taxpayers).
  • This credit is taken in place of the regular ITC, and has no employment incentive credit complement.
  • Credit can reduce tax to the higher of the alternative minimum tax or fixed dollar minimum tax.
  • New businesses take a refund of unused credit.
  • Unused credits can be carried forward for 15 years (10 years for personal income taxpayers).

 

Qualified Emerging Technology Company Employment Credit

  • The credit is equal to the average number of full-time employees in New York State for the current tax year, minus the taxpayer’s base year employment, multiplies by $1,000.
  • Credit is refundable.

 

Qualified Emerging Technology Company Capital Credit

  • Credit equal to a percentage of each qualified investment in a qualified emerging technology company.
  • Credit equals 10% for qualified investments that are certified to be held for at least four years (maximum credit per taxpayer of $150,000); 20% for qualified investments certified to be held for at least 9 years (maximum credit per taxpayer of $300,000).
  • Credit is not refundable, however, it can be carried forward to future years until it is used up.

Alternative Fuel/Energy

Biofuel Production Credit 

  • Credit of 15-cents-per-gallon of biofuel produced at a biofuel plant located in New York State after the production of the first 40,000 gallons per year presented to market.
  • Credit is capped at $2.5 million per entity, per taxable year, for up to 4 consecutive taxable years per biofuel plant.
  • Credit is refundable.

Training

Security Officers Training Tax Credit

  • Administered by the State Office of Homeland Security in conjunction with the Tax Department, for qualified building owners, effective for taxable years beginning on/after January 1, 2005. Taxpayers must apply to the State Office of Homeland Security for an allocation of credit and credit certification in order to claim this credit.
  • The credit is equal to the sum of the number of qualified security officers providing protection to a building(s) owned by the taxpayer multiplied by $3,000 (where a qualified security officer is employed for less than a full year, such credit amount must be prorated.)
  • Credit is refundable.

Other

Automatic External Defibrillator Credit

  • Credit equals the cost to the taxpayer of an automated external defibrillator purchased during the taxable year. The credit cannot exceed $500 for each unit purchased; however, there is no limit on the number of units for which the credit may be taken.
  • Credit is not refundable and cannot be carried forward.

 

Long Term Care Insurance Credit 

  • Credit equals 20% of premiums paid during the tax year for the purchase of qualifying long-term care insurance.
  • Credit is not refundable, however, it can be carried forward to future years until it is used up.

 

Credit for Employment of Persons with Disabilities

  • Credit equals 35% of the first $6,000 of first year wages or qualified second year wages paid to a disabled employee (maximum of $2,100 per employee).
  • To be eligible, an employee must work for an employer on a full-time basis for at least 180 days or 400 hours, and must be certified by the NYS Department of Labor's Economic Development Service Unit.
  • The credit is not refundable, however, it can be carried forward until it is used up.
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Other Tax Credits

More resources

Information on general business (Article9-A) tax credits

 

Contacts

NYS Department of Taxation and Finance
Tax and Finance Contact Numbers
Corporate Tax Information:                    (518) 485-6027
Sales Tax Information:                            (518) 485-2889
Miscellaneous Business Tax information:  (518) 457-5735

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