N.Y. Tax Law § 210

§ 210. Computation of tax. * 1. The tax imposed by subdivision one of\nsection two hundred nine of this chapter shall be: (A) in the case of\neach taxpayer other than a New York S corporation or a qualified\nhomeowners association, the sum of (1) the highest of the amounts\nprescribed in paragraphs (a), (b), (c) and (d) of this subdivision and\n(2) the amount prescribed in paragraph (e) of this subdivision, (B) in\nthe case of each New York S corporation, the amount prescribed in\nparagraph (g) of this subdivision, and (C) in the case of a qualified\nhomeowners association, the sum of (1) the highest of the amounts\nprescribed in paragraphs (a), (b) and (c) of this subdivision and (2)\nthe amount prescribed in paragraph (e) of this subdivision. For purposes\nof this paragraph, the term "qualified homeowners association" means a\nhomeowners association, as such term is defined in subsection (c) of\nsection five hundred twenty-eight of the internal revenue code without\nregard to subparagraph (E) of paragraph one of such subsection (relating\nto elections to be taxed pursuant to such section), which has no\nhomeowners association taxable income, as such term is defined in\nsubsection (d) of such section. Provided, however, that in the case of a\nsmall business taxpayer (other than a New York S corporation) as defined\nin paragraph (f) of this subdivision, if the amount prescribed in such\nparagraph (b) is higher than the amount prescribed in such paragraph (a)\nsolely by reason of the application of the rate applicable to small\nbusiness taxpayers, then with respect to such taxpayer the tax referred\nto in the previous sentence shall be the sum of (1) the highest of the\namounts prescribed in paragraphs (a), (c) and (d) of this subdivision\nand (2) the amount prescribed in paragraph (e) of this subdivision.\n (a) Entire net income base. For taxable years beginning before July\nfirst, nineteen hundred ninety-nine, the amount prescribed by this\nparagraph shall be computed at the rate of nine percent of the\ntaxpayer's entire net income base. For taxable years beginning after\nJune thirtieth, nineteen hundred ninety-nine and before July first, two\nthousand, the amount prescribed by this paragraph shall be computed at\nthe rate of eight and one-half percent of the taxpayer's entire net\nincome base. For taxable years beginning after June thirtieth, two\nthousand and before July first, two thousand one, the amount prescribed\nby this paragraph shall be computed at the rate of eight percent of the\ntaxpayer's entire net income base. For taxable years beginning after\nJune thirtieth, two thousand one and before January first, two thousand\nseven, the amount prescribed by this paragraph shall be computed at the\nrate of seven and one-half percent of the taxpayer's entire net income\nbase. For taxable years beginning on or after January first, two\nthousand seven, the amount prescribed by this paragraph shall be\ncomputed at the rate of seven and one-tenth percent of the taxpayer's\nentire net income base. The taxpayer's entire net income base shall mean\nthe portion of the taxpayer's entire net income allocated within the\nstate as hereinafter provided, subject to any modification required by\nparagraphs (d) and (e) of subdivision three of this section. However, in\nthe case of a small business taxpayer, as defined in paragraph (f) of\nthis subdivision, the amount prescribed by this paragraph shall be\ncomputed pursuant to subparagraph (iv) of this paragraph and in the case\nof a manufacturer, as defined in subparagraph (vi) of this paragraph,\nthe amount prescribed by this paragraph shall be computed pursuant to\nsubparagraph (vi) of this paragraph.\n (i) if the entire net income base is not more than two hundred\nthousand dollars, (1) for taxable years beginning before July first,\nnineteen hundred ninety-nine, the amount shall be eight percent of the\nentire net income base; (2) for taxable years beginning after June\nthirtieth, nineteen hundred ninety-nine and before July first, two\nthousand three, the amount shall be seven and one-half percent of the\nentire net income base; and (3) for taxable years beginning after June\nthirtieth, two thousand three and before January first, two thousand\nfive, the amount shall be 6.85 percent of the entire net income base;\n (ii) if the entire net income base is more than two hundred thousand\ndollars but not over two hundred ninety thousand dollars, (1) for\ntaxable years beginning before July first, nineteen hundred ninety-nine,\nthe amount shall be the sum of (a) sixteen thousand dollars, (b) nine\npercent of the excess of the entire net income base over two hundred\nthousand dollars and (c) five percent of the excess of the entire net\nincome base over two hundred fifty thousand dollars; (2) for taxable\nyears beginning after June thirtieth, nineteen hundred ninety-nine and\nbefore July first, two thousand, the amount shall be the sum of (a)\nfifteen thousand dollars, (b) eight and one-half percent of the excess\nof the entire net income base over two hundred thousand dollars and (c)\nfive percent of the excess of the entire net income base over two\nhundred fifty thousand dollars; (3) for taxable years beginning after\nJune thirtieth, two thousand and before July first, two thousand one,\nthe amount shall be the sum of (a) fifteen thousand dollars, (b) eight\npercent of the excess of the entire net income base over two hundred\nthousand dollars and (c) two and one-half percent of the excess of the\nentire net income base over two hundred fifty thousand dollars; (4) for\ntaxable years beginning after June thirtieth, two thousand one and\nbefore July first, two thousand three, the amount shall be seven and\none-half percent of the entire net income base; and (5) for taxable\nyears beginning after June thirtieth, two thousand three and before\nJanuary first, two thousand five, the amount shall be the sum of (a)\nthirteen thousand seven hundred dollars, (b) 7.5 percent of the excess\nof the entire net income base over two hundred thousand dollars and (c)\n3.25 percent of the excess of the entire net income base over two\nhundred fifty thousand dollars;\n (iii) for taxable years beginning on or after January first, two\nthousand five and ending before January first, two thousand seven, if\nthe entire net income base is not more than two hundred ninety thousand\ndollars the amount shall be six and one-half percent of the entire net\nincome base; if the entire net income base is more than two hundred\nninety thousand dollars but not over three hundred ninety thousand\ndollars the amount shall be the sum of (1) eighteen thousand eight\nhundred fifty dollars, (2) seven and one-half percent of the excess of\nthe entire net income base over two hundred ninety thousand dollars but\nnot over three hundred ninety thousand dollars and (3) seven and\none-quarter percent of the excess of the entire net income base over\nthree hundred fifty thousand dollars but not over three hundred ninety\nthousand dollars;\n (iv) for taxable years beginning on or after January first, two\nthousand seven, if the entire net income base is not more than two\nhundred ninety thousand dollars the amount shall be six and one-half\npercent of the entire net income base; if the entire net income base is\nmore than two hundred ninety thousand dollars but not over three hundred\nninety thousand dollars the amount shall be the sum of (1) eighteen\nthousand eight hundred fifty dollars, (2) seven and one-tenth percent of\nthe excess of the entire net income base over two hundred ninety\nthousand dollars but not over three hundred ninety thousand dollars and\n(3) four and thirty-five hundredths percent of the excess of the entire\nnet income base over three hundred fifty thousand dollars but not over\nthree hundred ninety thousand dollars;\n (v) if the taxable period to which subparagraphs (i), (ii), (iii), and\n(iv) of this paragraph apply is less than twelve months, the amount\nprescribed by this paragraph shall be computed as follows:\n (A) Multiply the entire net income base for such taxpayer by twelve;\n (B) Divide the result obtained in (A) by the number of months in the\ntaxable year;\n (C) Compute an amount pursuant to subparagraphs (i) and (ii) as if the\nresult obtained in (B) were the taxpayer's entire net income base;\n (D) Multiply the result obtained in (C) by the number of months in the\ntaxpayer's taxable year;\n (E) Divide the result obtained in (D) by twelve.\n ** (vi) for taxable years beginning on or after January first, two\nthousand fourteen, the amount prescribed by this paragraph for a\ntaxpayer which is a qualified New York manufacturer, shall be computed\nat the rate of zero percent of the taxpayer's entire net income base.\nFor taxable years beginning on or after January first, two thousand\ntwelve and before January first, two thousand fifteen, the amount\nprescribed by this paragraph for a taxpayer which is an eligible\nqualified New York manufacturer shall be computed at the rate of three\nand one-quarter (3.25) percent of the taxpayer's entire net income base.\nThe term "manufacturer" shall mean a taxpayer which during the taxable\nyear is principally engaged in the production of goods by manufacturing,\nprocessing, assembling, refining, mining, extracting, farming,\nagriculture, horticulture, floriculture, viticulture or commercial\nfishing. However, the generation and distribution of electricity, the\ndistribution of natural gas, and the production of steam associated with\nthe generation of electricity shall not be qualifying activities for a\nmanufacturer under this subparagraph. Moreover, the combined group shall\nbe considered a "manufacturer" for purposes of this subparagraph only if\nthe combined group during the taxable year is principally engaged in the\nactivities set forth in this paragraph, or any combination thereof. A\ntaxpayer or a combined group shall be "principally engaged" in\nactivities described above if, during the taxable year, more than fifty\npercent of the gross receipts of the taxpayer or combined group,\nrespectively, are derived from receipts from the sale of goods produced\nby such activities. In computing a combined group's gross receipts,\nintercorporate receipts shall be eliminated. A "qualified New York\nmanufacturer" is a manufacturer which has property in New York which is\ndescribed in clause (A) of subparagraph (i) of paragraph (b) of\nsubdivision twelve of this section and either (I) the adjusted basis of\nsuch property for federal income tax purposes at the close of the\ntaxable year is at least one million dollars or (II) all of its real and\npersonal property is located in New York. A taxpayer or, in the case of\na combined report, a combined group, that does not satisfy the\nprincipally engaged test may be a qualified New York manufacturer if the\ntaxpayer or the combined group employs during the taxable year at least\ntwo thousand five hundred employees in manufacturing in New York and the\ntaxpayer or the combined group has property in the state used in\nmanufacturing, the adjusted basis of which for federal income tax\npurposes at the close of the taxable year is at least one hundred\nmillion dollars. The amount prescribed by this paragraph for a taxpayer\nthat is a qualified emerging technology company under paragraph (c) of\nsubdivision one of section thirty-one hundred two-e of the public\nauthorities law regardless of the ten million dollar limitation\nexpressed in subparagraph one of such paragraph (c) shall be computed at\nthe rate of five and nine-tenths percent of the taxpayer's entire net\nincome base. The commissioner shall establish guidelines and criteria\nthat specify requirements by which a manufacturer may be classified as\nan eligible qualified New York manufacturer. Criteria may include but\nnot be limited to factors such as regional unemployment, the economic\nimpact that manufacturing has on the surrounding community, population\ndecline within the region and median income within the region in which\nthe manufacturer is located. In establishing these guidelines and\ncriteria, the commissioner shall endeavor that the total annual cost of\nthe lower rates shall not exceed twenty-five million dollars.\n ** NB Effective until December 31, 2014\n (b) Capital base. (1) The amount prescribed by this paragraph for\ntaxable years beginning before January first, two thousand eight shall\nbe computed at .178 percent for each dollar of the taxpayer's total\nbusiness and investment capital, or the portion thereof allocated within\nthe state as hereinafter provided. For taxable years beginning on or\nafter January first, two thousand eight, the amount prescribed by this\nparagraph shall be computed at .15 percent for each dollar of the\ntaxpayer's total business and investment capital, or the portion thereof\nallocated within the state as hereinafter provided. However, in the case\nof a cooperative housing corporation as defined in the internal revenue\ncode, the applicable rate shall be .04 percent. In no event shall the\namount prescribed by this paragraph exceed three hundred fifty thousand\ndollars for qualified New York manufacturers and for all other taxpayers\nten million dollars for taxable years beginning on or after January\nfirst, two thousand eight but before January first, two thousand eleven\nand one million dollars for taxable years beginning on or after January\nfirst, two thousand eleven.\n ** (2) For purposes of subparagraph one of this paragraph, the term\n"manufacturer" shall mean a taxpayer which during the taxable year is\nprincipally engaged in the production of goods by manufacturing,\nprocessing, assembling, refining, mining, extracting, farming,\nagriculture, horticulture, floriculture, viticulture or commercial\nfishing. Moreover, for purposes of computing the capital base in a\ncombined report, the combined group shall be considered a "manufacturer"\nfor purposes of this subparagraph only if the combined group during the\ntaxable year is principally engaged in the activities set forth in this\nsubparagraph, or any combination thereof. A taxpayer or a combined group\nshall be "principally engaged" in activities described above if, during\nthe taxable year, more than fifty percent of the gross receipts of the\ntaxpayer or combined group, respectively, are derived from receipts from\nthe sale of goods produced by such activities. In computing a combined\ngroup's gross receipts, intercorporate receipts shall be eliminated. A\n"qualified New York manufacturer" is a manufacturer that has property in\nNew York that is described in clause (A) of subparagraph (i) of\nparagraph (b) of subdivision twelve of this section and either (i) the\nadjusted basis of that property for federal income tax purposes at the\nclose of the taxable year is at least one million dollars or (ii) all of\nits real and personal property is located in New York. In addition, a\n"qualified New York manufacturer" means a taxpayer that is defined as a\nqualified emerging technology company under paragraph (c) of subdivision\none of section thirty-one hundred two-e of the public authorities law\nregardless of the ten million dollar limitation expressed in\nsubparagraph one of such paragraph. A taxpayer or, in the case of a\ncombined report, a combined group, that does not satisfy the principally\nengaged test may be a qualified New York manufacturer if the taxpayer or\nthe combined group employs during the taxable year at least two thousand\nfive hundred employees in manufacturing in New York and the taxpayer or\nthe combined group has property in the state used in manufacturing, the\nadjusted basis of which for federal income tax purposes at the close of\nthe taxable year is at least one hundred million dollars.\n ** NB Effective until December 31, 2014\n (3) For a qualified New York manufacturer, as defined in subparagraph\ntwo of this paragraph, the rate at which the tax is computed in effect\nfor taxable years beginning on or after January first, two thousand\nthirteen and before January first, two thousand fourteen shall be\nreduced by nine and two-tenths percent for taxable years commencing on\nor after January first, two thousand fourteen and before January first,\ntwo thousand fifteen, twelve and three-tenths percent for taxable years\ncommencing on or after January first, two thousand fifteen and before\nJanuary first, two thousand sixteen, fifteen and four-tenths percent for\ntaxable years commencing on or after January first, two thousand sixteen\nand before January first, two thousand eighteen, and twenty-five percent\nfor taxable years beginning on or after January first, two thousand\neighteen.\n (c) Minimum taxable income bases. (i) For taxable years beginning\nafter nineteen hundred eighty-six and before nineteen hundred\neighty-nine, the amount prescribed by this paragraph shall be computed\nat the rate of three and one-half percent of the taxpayer's pre-nineteen\nhundred ninety minimum taxable income base. For taxable years beginning\nin nineteen hundred eighty-nine, the amount prescribed by this paragraph\nshall be computed at the rate of five percent of the taxpayer's\npre-nineteen hundred ninety minimum taxable income base. A "taxpayer's\npre-nineteen hundred ninety minimum taxable income base" shall mean the\nportion of the taxpayer's entire net income allocated within the state\nas hereinafter provided, subject to any modification required by\nparagraphs (d) and (e) of subdivision three of this section;\n (ii) (A) For taxable years beginning on or after January first, two\nthousand seven, the amount prescribed by this paragraph shall be\ncomputed at the rate of one and one-half percent of the taxpayer's\nminimum taxable income base. The "taxpayer's minimum taxable income\nbase" shall mean the portion of the taxpayer's minimum taxable income\nallocated within the state as hereinafter provided, subject to any\nmodifications required by paragraphs (d) and (e) of subdivision three of\nthis section.\n (B) For taxable years beginning on or after January first, two\nthousand twelve and before January first, two thousand fifteen, the\namount prescribed by this paragraph for an eligible qualified New York\nmanufacturer shall be computed at the rate of seventy-five hundredths\n(.75) percent of the taxpayer's minimum taxable income base. For\npurposes of this clause, the term "eligible qualified New York\nmanufacturer" shall have the same meaning as in subparagraph (vi) of\nparagraph (a) of this subdivision.\n ** (iii) For a qualified New York manufacturer, as defined in\nsubparagraph (vi) of paragraph (a) of this subdivision and a qualified\nemerging technology company under paragraph (c) of subdivision one of\nsection thirty-one hundred two-e of the public authorities law\nregardless of the ten million dollar limitation expressed in\nsubparagraph one of such paragraph (c), the rate at which the tax is\ncomputed in effect for taxable years beginning on or after January\nfirst, two thousand thirteen and before January first, two thousand\nfourteen for qualified New York manufacturers shall be reduced by nine\nand two-tenths percent for taxable years commencing on or after January\nfirst, two thousand fourteen and before January first, two thousand\nfifteen, twelve and three-tenths percent for taxable years commencing on\nor after January first, two thousand fifteen and before January first,\ntwo thousand sixteen, fifteen and four-tenths percent for taxable years\ncommencing on or after January first, two thousand sixteen and before\nJanuary first, two thousand eighteen, and twenty-five percent for\ntaxable years beginning on or after January first, two thousand\neighteen.\n ** NB Effective until December 31, 2014\n (d) Fixed dollar minimum. (1) The amount prescribed by this paragraph\nshall be for a taxpayer which during the taxable year has:\n (A) a gross payroll of six million two hundred fifty thousand dollars\nor more, one thousand five hundred dollars;\n (B) a gross payroll of less than six million two hundred fifty\nthousand dollars but more than one million dollars, four hundred\ntwenty-five dollars;\n (C) a gross payroll of no more than one million dollars but more than\nfive hundred thousand dollars, three hundred twenty-five dollars;\n (D) a gross payroll of no more than five hundred thousand dollars but\nmore than two hundred fifty thousand dollars, two hundred twenty-five\ndollars;\n (E) a gross payroll of two hundred fifty thousand dollars or less\n(except as prescribed in clause (F) of this subparagraph), one hundred\ndollars;\n (F) a gross payroll of one thousand dollars or less, with total\nreceipts within and without this state of one thousand dollars or less,\nand the average value of the assets of which are one thousand dollars or\nless, eight hundred dollars.\n (2) For purposes of this paragraph:\n (A) gross payroll shall be the same as the total wages, salaries and\nother personal service compensation of all the taxpayer's employees,\nwithin and without this state, as defined in subparagraph three of\nparagraph (a) of subdivision three of this section, except that general\nexecutive officers shall not be excluded.\n (B) total receipts shall be the same as receipts within and without\nthis state as defined in subparagraph two of paragraph (a) of\nsubdivision three of this section.\n (C) average value of the assets shall be the same as prescribed by\nsubdivision two of this section without reduction for liabilities.\n (3) If the taxable year is less than twelve months, the amount\nprescribed by this paragraph shall be reduced by twenty-five percent if\nthe period for which the taxpayer is subject to tax is more than six\nmonths but not more than nine months and by fifty percent if the period\nfor which the taxpayer is subject to tax is not more than six months.\nProvided, however, that in determining the amount of gross payroll and\ntotal receipts for purposes of subparagraph one of this paragraph, where\nthe taxable year is less than twelve months, the amount of each shall be\ndetermined by dividing the amount of each with respect to the taxable\nyear by the number of months in such taxable year and multiplying the\nresult by twelve. If the taxable year is less than twelve months, the\namount of New York receipts for purposes of subparagraph four of this\nparagraph is determined by dividing the amount of the receipts for the\ntaxable year by the number of months in the taxable year and multiplying\nthe result by twelve.\n (4) Notwithstanding subparagraphs one and two of this paragraph, for\ntaxable years beginning on or after January first, two thousand eight,\nthe amount prescribed by this paragraph for New York S corporations will\nbe determined in accordance with the following table:\nIf New York receipts are: The fixed dollar minimum tax is:\n not more than $100,000 $ 25\n more than $100,000 but not over $250,000 $ 50\n more than $250,000 but not over $500,000 $ 175\n more than $500,000 but not over $1,000,000 $ 300\n more than $1,000,000 but not over $5,000,000 $1,000\n more than $5,000,000 but not over $25,000,000 $3,000\n Over $25,000,000 $4,500\nOtherwise the amount prescribed by this paragraph will be determined in\naccordance with the following table:\nIf New York receipts are: The fixed dollar minimum tax is:\n not more than $100,000 $ 25\n more than $100,000 but not over $250,000 $ 75\n more than $250,000 but not over $500,000 $ 175\n more than $500,000 but not over $1,000,000 $ 500\n more than $1,000,000 but not over $5,000,000 $1,500\n more than $5,000,000 but not over $25,000,000 $3,500\n Over $25,000,000 $5,000\nFor purposes of this paragraph, New York receipts are the receipts\ncomputed in accordance with subparagraph two of paragraph (a) of\nsubdivision three of this section for the taxable year.\n (5) For taxable years beginning on or after January first, two\nthousand twelve and before January first, two thousand fifteen, the\namounts prescribed in subparagraphs one and four of this paragraph as\nthe fixed dollar minimum tax for an eligible qualified New York\nmanufacturer shall be one-half of the amounts stated in those\nsubparagraphs. For purposes of this subparagraph, the term "eligible\nqualified New York manufacturer" shall have the same meaning as in\nsubparagraph (vi) of paragraph (a) of this subdivision.\n ** (6) For a qualified New York manufacturer, as defined in\nsubparagraph (vi) of paragraph (a) of this subdivision, and a qualified\nemerging technology company under paragraph (c) of subdivision one of\nsection thirty-one hundred two-e of the public authorities law\nregardless of the ten million dollar limitation expressed in\nsubparagraph one of such paragraph (c), the amounts prescribed in\nsubparagraphs one and four of this paragraph in effect for taxable years\nbeginning on or after January first, two thousand thirteen and before\nJanuary first, two thousand fourteen for qualified New York\nmanufacturers shall be reduced by nine and two-tenths percent for\ntaxable years commencing on or after January first, two thousand\nfourteen and before January first, two thousand fifteen, twelve and\nthree-tenths percent for taxable years commencing on or after January\nfirst, two thousand fifteen and before January first, two thousand\nsixteen, fifteen and four-tenths percent for taxable years commencing on\nor after January first, two thousand sixteen and before January first,\ntwo thousand eighteen, and twenty-five percent for taxable years\nbeginning on or after January first, two thousand eighteen.\n ** NB Effective until December 31, 2014\n (e) Subsidiary capital base. (1) The amount prescribed by this\nparagraph shall be computed at the rate of nine-tenths of a mill for\neach dollar of the portion of the taxpayer's subsidiary capital\nallocated within the state as hereinafter provided.\n (2) For purposes of this paragraph, the amount of such subsidiary\ncapital, prior to allocation, shall be reduced by the applicable\npercentage of the taxpayer's (i) investments in the stock of, and any\nindebtedness from, subsidiaries subject to tax under section one hundred\neighty-six of this chapter (but only to the extent such indebtedness is\nincluded in subsidiary capital), and (ii) investments in the stock of,\nand any indebtedness from, subsidiaries subject to tax under article\nthirty-two or thirty-three of this chapter (but only to the extent such\nindebtedness is included in subsidiary capital). For purposes of clause\n(i) of this subparagraph, the applicable percentage shall be thirty\npercent for taxable years beginning in two thousand, and one hundred\npercent for taxable years beginning after two thousand. For purposes of\nclause (ii) of this subparagraph, the applicable percentage shall be one\nhundred percent for taxable years beginning after nineteen hundred\nninety-nine.\n (f) For purposes of this section, the term "small business taxpayer"\nshall mean a taxpayer (i) which has an entire net income of not more\nthan three hundred ninety thousand dollars for the taxable year; (ii)\nwhich constitutes a small business as defined in section 1244(c)(3) of\ninternal revenue code (without regard to the second sentence of\nsubparagraph (A) thereof) as of the last day of the taxable year; and\n(iii) which is not part of an affiliated group, as defined in section\n1504 of the internal revenue code, unless such group, if it had filed a\nreport under this article on a combined basis, would have itself\nqualified as a "small business taxpayer" pursuant to this subdivision.\nIf the taxable period to which subparagraph (i) of this paragraph\napplies is less than twelve months, entire net income under such\nsubparagraph shall be placed on an annual basis by multiplying the\nentire net income by twelve and dividing the result by the number of\nmonths in the period.\n (g) New York S corporations. (1) General. The amount prescribed by\nthis paragraph shall be, in the case of each New York S corporation, (i)\nthe higher of the amounts prescribed in paragraphs (a) and (d) of this\nsubdivision (other than the amount prescribed in the final clause of\nsubparagraph one of that paragraph (d)) (ii) reduced by the article\ntwenty-two tax equivalent; provided, however, that the amount thus\ndetermined shall not be less than the lowest of the amounts prescribed\nin subparagraph one of that paragraph (d) (applying the provisions of\nsubparagraph three of that paragraph as necessary). Provided, however,\nnotwithstanding any provision of this paragraph, in taxable years\nbeginning in two thousand three and before two thousand eight, the\namount prescribed by this paragraph shall be the amount prescribed in\nsubparagraph one of that paragraph (d) (applying the provisions of\nsubparagraph three of that paragraph as necessary) and applying the\ncalculation of that amount in the case of a termination year as set\nforth in subparagraph four of this paragraph as necessary. In taxable\nyears beginning in two thousand eight and thereafter, the amount\nprescribed by this paragraph is the amount prescribed in subparagraph\nfour of that paragraph (d) (applying the provisions of subparagraph\nthree of that paragraph as necessary) and applying the calculation of\nthat amount in the case of a termination year as set forth in\nsubparagraph four of this paragraph as necessary.\n (2) Article twenty-two tax equivalent. For taxable years beginning\nbefore July first, nineteen hundred ninety-nine, the article twenty-two\ntax equivalent is the amount computed under paragraph (a) of this\nsubdivision by substituting for the rate therein the rate of 7.875\npercent. For taxable years beginning after June thirtieth, nineteen\nhundred ninety-nine and before July first, two thousand, the article\ntwenty-two tax equivalent is the amount computed under paragraph (a) of\nthis subdivision by substituting for the rate therein the rate of 7.525\npercent. For taxable years beginning after June thirtieth, two thousand\nand before July first, two thousand one, the article twenty-two tax\nequivalent is the amount computed under paragraph (a) of this\nsubdivision by substituting for the rate therein the rate of 7.175\npercent. For taxable years beginning after June thirtieth, two thousand\none and before July first, two thousand three, the article twenty-two\ntax equivalent is the amount computed under paragraph (a) of this\nsubdivision by substituting for the rate therein the rate of 6.85\npercent. For taxable years beginning after June thirtieth, two thousand\nthree, the article twenty-two tax equivalent is the amount computed\nunder paragraph (a) of this subdivision by substituting for the rate\ntherein the rate of 7.1425 percent.\n (3) Small business taxpayers. Notwithstanding the provisions of\nsubparagraphs one and two of this paragraph, in the case of a New York S\ncorporation which is a small business taxpayer, as defined in paragraph\n(f) of this subdivision, the following provisions shall apply:\n (A) For taxable years beginning before July first, nineteen hundred\nninety-nine, the article twenty-two tax equivalent is the amount\ncomputed under paragraph (a) of this subdivision by substituting for the\nrate therein the rate of 7.875 percent.\n (B) For taxable years beginning after June thirtieth, nineteen hundred\nninety-nine and before July first, two thousand three, the amount\ncomputed under paragraph (a) of this subdivision, as referred to in\nsubparagraph one of this paragraph, shall be computed by substituting\nfor the rate therein the rate of 7.5 percent, and the article twenty-two\ntax equivalent under paragraph (a) of this subdivision shall be computed\nas follows:\n (i) if the entire net income base is not more than two hundred\nthousand dollars, the article twenty-two tax equivalent is the amount\ncomputed under paragraph (a) of this subdivision by substituting for the\nrate therein the rate of 7.45 percent;\n (ii) if the entire net income base is more than two hundred thousand\ndollars but not over two hundred ninety thousand dollars, the article\ntwenty-two tax equivalent shall be computed as the sum of (I) fourteen\nthousand nine hundred dollars, (II) six and eighty-five hundredths\npercent of the first fifty thousand dollars in excess of the entire net\nincome base over two hundred thousand dollars, and (III) three and\neighty-five hundredths percent of the excess, if any, of the entire net\nincome base over two hundred fifty thousand dollars.\n (C) For taxable years beginning after June thirtieth, two thousand\nthree, the amount computed under paragraph (a) of this subdivision, as\nreferred to in subparagraph one of this paragraph, shall be computed by\nsubstituting for the rate therein the rate of 7.5 percent, and the\narticle twenty-two tax equivalent under paragraph (a) of this\nsubdivision shall be computed as follows:\n (i) if the entire net income base is not more than two hundred\nthousand dollars, the article twenty-two tax equivalent is the amount\ncomputed under paragraph (a) of this subdivision by substituting for the\nrate therein the rate of 7.4725 percent;\n (ii) if the entire net income base is more than two hundred thousand\ndollars but not over two hundred ninety thousand dollars, the article\ntwenty-two tax equivalent shall be computed as the sum of (I) fourteen\nthousand nine hundred forty-five dollars, (II) 7.1425 percent of the\nfirst fifty thousand dollars in excess of the entire net income base\nover two hundred thousand dollars, and (III) 5.4925 percent of the\nexcess, if any, of the entire net income base over two hundred fifty\nthousand dollars.\n (4) Termination year. In the case of a termination year, the tax for\nthe S short year shall be computed under this paragraph without regard\nto the fixed dollar minimum tax prescribed in paragraph (d) of this\nsubdivision, and the tax for the C short year shall be computed under\nthe opening paragraph of this subdivision without regard to the fixed\ndollar minimum tax prescribed under such paragraph (d), but in no event\nshall the sum of the tax for the S short year and the tax for the C\nshort year be less than the fixed dollar minimum tax under paragraph (d)\nof this subdivision computed as if the corporation were a New York C\ncorporation for the entire taxable year.\n * NB Effective until January 1, 2015\n * 1. The tax imposed by subdivision one of section two hundred nine of\nthis chapter shall be: (A) in the case of each taxpayer other than a New\nYork S corporation or a qualified homeowners association, the highest of\nthe amounts prescribed in paragraphs (a), (b), and (d) of this\nsubdivision, (B) in the case of each New York S corporation, the amount\nprescribed in paragraph (d) of this subdivision, and (C) in the case of\na qualified homeowners association, the highest of the amounts\nprescribed in paragraphs (a) and (b) of this subdivision. For purposes\nof this paragraph, the term "qualified homeowners association" means a\nhomeowners association, as such term is defined in subsection (c) of\nsection five hundred twenty-eight of the internal revenue code without\nregard to subparagraph (E) of paragraph one of such subsection (relating\nto elections to be taxed pursuant to such section), which has no\nhomeowners association taxable income, as such term is defined in\nsubsection (d) of such section. Provided, however, that in the case of a\nsmall business taxpayer (other than a New York S corporation) as defined\nin paragraph (f) of this subdivision, for taxable years beginning before\nJanuary first, two thousand sixteen, if the amount prescribed in such\nparagraph (b) is higher than the amount prescribed in such paragraph (a)\nsolely by reason of the application of the rate applicable to small\nbusiness taxpayers, then with respect to such taxpayer the tax referred\nto in the previous sentence shall be higher of the amounts prescribed in\nparagraphs (a) and (d) of this subdivision.\n (a) Business income base. For taxable years beginning before January\nfirst, two thousand sixteen, the amount prescribed by this paragraph\nshall be computed at the rate of seven and one-tenth percent of the\ntaxpayer's business income base. For taxable years beginning on or after\nJanuary first, two thousand sixteen, the amount prescribed by this\nparagraph shall be six and one-half percent of the taxpayer's business\nincome base. The taxpayer's business income base shall mean the portion\nof the taxpayer's business income allocated within the state as\nhereinafter provided. However, in the case of a small business taxpayer,\nas defined in paragraph (f) of this subdivision, the amount prescribed\nby this paragraph shall be computed pursuant to subparagraph (iv) of\nthis paragraph and in the case of a manufacturer, as defined in\nsubparagraph (vi) of this paragraph, the amount prescribed by this\nparagraph shall be computed pursuant to subparagraph (vi) of this\nparagraph.\n (iv) for taxable years beginning before January first, two thousand\nsixteen, if the business income base is not more than two hundred ninety\nthousand dollars the amount shall be six and one-half percent of the\nbusiness income base; if the business income base is more than two\nhundred ninety thousand dollars but not over three hundred ninety\nthousand dollars the amount shall be the sum of (1) eighteen thousand\neight hundred fifty dollars, (2) seven and one-tenth percent of the\nexcess of the business income base over two hundred ninety thousand\ndollars but not over three hundred ninety thousand dollars and (3) four\nand thirty-five hundredths percent of the excess of the business income\nbase over three hundred fifty thousand dollars but not over three\nhundred ninety thousand dollars;\n (v) if the taxable period to which subparagraph (iv) of this paragraph\napplies is less than twelve months, the amount prescribed by this\nparagraph shall be computed as follows:\n (A) Multiply the business income base for such taxpayer by twelve;\n (B) Divide the result obtained in (A) by the number of months in the\ntaxable year;\n (C) Compute an amount pursuant to subparagraph (iv) as if the result\nobtained in (B) were the taxpayer's business income base;\n (D) Multiply the result obtained in (C) by the number of months in the\ntaxpayer's taxable year;\n (E) Divide the result obtained in (D) by twelve.\n (vi) for taxable years beginning on or after January first, two\nthousand fourteen, the amount prescribed by this paragraph for a\ntaxpayer which is a qualified New York manufacturer, shall be computed\nat the rate of zero percent of the taxpayer's business income base. The\nterm "manufacturer" shall mean a taxpayer which during the taxable year\nis principally engaged in the production of goods by manufacturing,\nprocessing, assembling, refining, mining, extracting, farming,\nagriculture, horticulture, floriculture, viticulture or commercial\nfishing. However, the generation and distribution of electricity, the\ndistribution of natural gas, and the production of steam associated with\nthe generation of electricity shall not be qualifying activities for a\nmanufacturer under this subparagraph. Moreover, the combined group shall\nbe considered a "manufacturer" for purposes of this subparagraph only if\nthe combined group during the taxable year is principally engaged in the\nactivities set forth in this paragraph, or any combination thereof. A\ntaxpayer or a combined group shall be "principally engaged" in\nactivities described above if, during the taxable year, more than fifty\npercent of the gross receipts of the taxpayer or combined group,\nrespectively, are derived from receipts from the sale of goods produced\nby such activities. In computing a combined group's gross receipts,\nintercorporate receipts shall be eliminated. A "qualified New York\nmanufacturer" is a manufacturer which has property in New York which is\ndescribed in subdivision one of section two hundred ten-B of this\narticle and either (I) the adjusted basis of such property for federal\nincome tax purposes at the close of the taxable year is at least one\nmillion dollars or (II) all of its real and personal property is located\nin New York. A taxpayer or, in the case of a combined report, a combined\ngroup, that does not satisfy the principally engaged test may be a\nqualified New York manufacturer if the taxpayer or the combined group\nemploys during the taxable year at least two thousand five hundred\nemployees in manufacturing in New York and the taxpayer or the combined\ngroup has property in the state used in manufacturing, the adjusted\nbasis of which for federal income tax purposes at the close of the\ntaxable year is at least one hundred million dollars.\n (vii) For a taxpayer that is defined as a qualified emerging\ntechnology company under paragraph (c) of subdivision one of section\nthirty-one hundred two-e of the public authorities law regardless of the\nten million dollar limitation expressed in subparagraph one of such\nparagraph (c) the rate at which the tax is computed in effect for\ntaxable years beginning on or after January first, two thousand thirteen\nand before January first, two thousand fourteen for such qualified\nemerging technology companies shall be reduced by nine and two-tenths\npercent for taxable years commencing on or after January first, two\nthousand fourteen and before January first, two thousand fifteen, twelve\nand three-tenths percent for taxable years commencing on or after\nJanuary first, two thousand fifteen and before January first, two\nthousand sixteen, fifteen and four-tenths percent for taxable years\ncommencing on or after January first, two thousand sixteen and before\nJanuary first, two thousand eighteen, and twenty-five percent for\ntaxable years beginning on or after January first, two thousand\neighteen.\n (viii) (A) In computing the business income base, taxpayers shall be\nallowed both a prior net operating loss conversion subtraction under\nthis subparagraph and a net operating loss deduction under subparagraph\n(ix) of this paragraph. The prior net operating loss conversion\nsubtraction computed under this subparagraph shall be applied against\nthe business income base before the net operating loss deduction\ncomputed under subparagraph (ix) of this paragraph.\n (B) Prior net operating loss conversion subtraction.\n (1) Definitions.\n (I) "Base year" means the last taxable year beginning on or after\nJanuary first, two thousand fourteen and before January first, two\nthousand fifteen.\n (II) "Unabsorbed net operating loss" means the unabsorbed portion of\nnet operating loss as calculated under paragraph (f) of subdivision nine\nof section two hundred eight of this article or subsection (k-1) of\nsection fourteen hundred fifty-three of this chapter as such sections\nwere in effect on December thirty-first, two thousand fourteen, that was\nnot deductible in previous taxable years and was eligible for carryover\non the last day of the base year subject to the limitations for\ndeduction under such sections, including any net operating loss\nsustained by the taxpayer during the base year.\n (III) "Base year BAP" means the taxpayer's business allocation\npercentage as calculated under paragraph (a) of subdivision three of\nthis section for the base year, or the taxpayer's allocation percentage\nas calculated under section fourteen hundred fifty-four of this chapter\nfor purposes of calculating entire net income for the base year, as such\nsections were in effect on December thirty-first, two thousand fourteen.\n (IV) "Base year tax rate" means the taxpayer's tax rate for the base\nyear as calculated under this paragraph or subsection (a) of section\nfourteen hundred fifty-five of this chapter, as such provisions were in\neffect on December thirty-first, two thousand fourteen.\n (2) The prior net operating loss conversion subtraction shall be\ncalculated as follows:\n (I) The taxpayer shall first calculate the tax value of its unabsorbed\nnet operating loss for the base year. The value is equal to the product\nof (I) the amount of the taxpayer's unabsorbed net operating loss, (II)\nthe taxpayer's base year BAP, and (III) the taxpayer's base year tax\nrate.\n (II) The product determined under item (I) of this subclause is then\ndivided by six and one-half percent, or in the case of a qualified New\nYork manufacturer, five and seven-tenths percent. This result shall\nequal the taxpayer's prior net operating loss conversion subtraction\npool.\n (III) The taxpayer's prior net operating loss conversion subtraction\nfor the taxable year shall equal one-tenth of its net operating loss\nconversion subtraction pool plus any amount of unused prior net\noperating loss conversion subtraction from preceding taxable years.\nProvided, however, the prior net operating loss conversion subtraction\nof a small business corporation, as defined in paragraph (f) of this\nsubdivision, as of the last day of the base year, shall not be subject\nto the one-tenth limitation in the previous sentence.\n (IV) In lieu of the subtraction described in item (III) of this\nsubclause, if the taxpayer so elects, the taxpayer's prior net operating\nloss conversion subtraction for the tax years beginning on or after\nJanuary first, two thousand fifteen and before January first, two\nthousand seventeen shall equal in each year, not more than one-half of\nits net operating loss conversion subtraction pool. The taxpayer shall\nmake such election on its return for the tax year beginning on or after\nJanuary first, two thousand fifteen and before January first, two\nthousand sixteen by the due date for such return (determined with regard\nto extensions).\n (3) Combined groups. (I) Where a taxpayer was properly included or\nrequired to be included in a combined report for the base year pursuant\nto section two hundred eleven of this article or a combined return under\nsection fourteen hundred sixty-two of this chapter, as such sections\nwere in effect on December thirty-first, two thousand fourteen, and the\nmembers of the combined group for the base year are the same as the\nmembers of the combined group for the taxable year immediately\nsucceeding the base year, the combined group shall calculate its prior\nnet operating loss conversion subtraction pool using the combined\ngroup's total unabsorbed net operating loss, base year BAP, and base\nyear tax rate.\n (II) If a combined group includes additional members in the taxable\nyear immediately succeeding the base year that were not included in the\ncombined group during the base year, each base year combined group and\neach taxpayer that filed separately in the base year but is included in\nthe combined group in the taxable year succeeding the base year shall\ncalculate its prior net operating loss conversion subtraction pool, and\nthe sum of the pools shall be the combined prior net operating loss\nconversion subtraction pool of the combined group.\n (III) If a taxpayer was properly included in a combined report for the\nbase year and files a separate report in a subsequent taxable year, then\nthe amount of remaining prior net operating loss conversion subtraction\nallowed to the taxpayer filing such separate report shall be\nproportionate to the amount that such taxpayer contributed to the prior\nnet operating loss conversion subtraction pool on a combined basis, and\nthe remaining prior net operating loss conversion subtraction allowed to\nthe remaining members of the combined group shall be reduced\naccordingly.\n (IV) If a taxpayer filed a separate report for the base year and is\nproperly included in a combined report in a subsequent taxable year,\nthen the prior net operating loss conversion subtraction pool of the\ncombined group shall be increased by the amount of the remaining net\noperating loss conversion subtraction allowed to the taxpayer at the\ntime the taxpayer is properly included in the combined group.\n (4) The prior net operating loss conversion subtraction may be used to\nreduce the taxpayer's tax on allocated business income to the higher of\nthe tax on the capital base under paragraph (b) of this subdivision or\nthe fixed dollar minimum under paragraph (d) of this subdivision. Any\namount of unused subtraction shall be carried forward to subsequent tax\nyear or years until tax years beginning on or after January first, two\nthousand thirty-six. Such amount carried forward shall not be subject to\nthe one-tenth limitation for the subsequent tax year or years. However,\nif the taxpayer elects to compute its prior net operating loss\nconversion subtraction pursuant to item (IV) of subclause two of this\nclause, the taxpayer shall not carry forward any amount of such\nsubtraction beyond its tax year beginning on or after January first, two\nthousand sixteen and before January first, two thousand seventeen.\n (ix) Net operating loss deduction. In computing the business income\nbase, a net operating loss deduction shall be allowed. A net operating\nloss deduction is the amount of net operating loss or losses from one or\nmore taxable years that are carried forward to a particular income year.\nA net operating loss is the amount of a business loss incurred in a\nparticular tax year multiplied by the apportionment factor for that year\nas determined under section two hundred ten-A of this article. The\nmaximum net operating deduction that is allowed in a taxable year is the\namount that reduces the taxpayer's tax on allocated business income to\nthe higher of the tax on the capital base or the fixed dollar minimum.\nSuch deduction and loss are determined in accordance with the following:\n (1) Such net operating loss deduction is not limited to the amount\nallowed under section one hundred seventy-two of the internal revenue\ncode or the amount that would have been allowed if the taxpayer had not\nmade an election under subchapter S of chapter one of the internal\nrevenue code.\n (2) Such net operating loss deduction shall not include any net\noperating loss incurred during any taxable year beginning prior to\nJanuary first, two thousand fifteen, or during any taxable year in which\nthe taxpayer was not subject to the tax imposed by this article.\n (3) A taxpayer that files as part of a federal consolidated return but\non a separate basis for purposes of this article must compute its\ndeduction and loss as if it were filing on a separate basis for federal\nincome tax purposes.\n (4) A net operating loss may be carried forward to each of the twenty\ntaxable years following the taxable year of the loss. A net operating\nloss may be carried back to each of the three taxable years preceding\nthe taxable year of the loss; provided, however no loss can be carried\nback to a tax year prior to a tax year beginning on or after January,\nfirst, two thousand fifteen. A taxpayer must apply both of these\nlimitations in computing such net operating loss deduction.\n (5) Such net operating loss deduction shall not include any net\noperating loss incurred during a New York S year; provided, however, a\nNew York S year must be treated as a taxable year for purposes of\ndetermining the number of taxable years to which a net operating loss\nmay be carried forward.\n (6) Where there are two or more allocated net operating losses, or\nportions thereof, carried forward to be deducted in one particular tax\nyear from allocated business income, the earliest allocated loss\nincurred must be applied first.\n (b) Capital base. (1) The amount prescribed by this paragraph shall be\ncomputed at .15 percent for each dollar of the taxpayer's total business\ncapital, or the portion thereof allocated within the state as\nhereinafter provided for taxable years beginning before January first,\ntwo thousand sixteen. However, in the case of a cooperative housing\ncorporation as defined in the internal revenue code, the applicable rate\nshall be .04 percent until taxable years beginning on or after January\nfirst, two thousand twenty. The rate of tax for subsequent tax years\nshall be as follows: .125 percent for taxable years beginning on or\nafter January first, two thousand sixteen and before January first, two\nthousand seventeen; .100 percent for taxable years beginning on or after\nJanuary first, two thousand seventeen and before January first, two\nthousand eighteen; .075 percent for taxable years beginning on or after\nJanuary first, two thousand eighteen and before January first, two\nthousand nineteen; .050 percent for taxable years beginning on or after\nJanuary first, two thousand nineteen and before January first, two\nthousand twenty; .025 percent for taxable years beginning on or after\nJanuary first, two thousand twenty and before January first, two\nthousand twenty-one; and zero percent for years beginning on or after\nJanuary first, two thousand twenty-one. The rate of tax for a qualified\nNew York manufacturer for tax years subsequent to taxable years\nbeginning on or after January first, two thousand fifteen and before\nJanuary first, two thousand sixteen shall be .106 percent for taxable\nyears beginning on or after January first, two thousand sixteen and\nbefore January first, two thousand seventeen, .085 percent for taxable\nyears beginning on or after January first, two thousand seventeen and\nbefore January first, two thousand eighteen; .056 percent for taxable\nyears beginning on or after January first, two thousand eighteen and\nbefore January first, two thousand nineteen; .038 percent for taxable\nyears beginning on or after January first, two thousand nineteen and\nbefore January first, thousand twenty; .019 percent for taxable years\nbeginning on or after January first, two thousand twenty and before\nJanuary first, two thousand twenty-one; and zero percent for years\nbeginning on or after January first, two thousand twenty-one. In no\nevent shall the amount prescribed by this paragraph exceed three hundred\nfifty thousand dollars for qualified New York manufacturers and for all\nother taxpayers five million dollars.\n (2) For purposes of subparagraph one of this paragraph, the term\n"manufacturer" shall mean a taxpayer which during the taxable year is\nprincipally engaged in the production of goods by manufacturing,\nprocessing, assembling, refining, mining, extracting, farming,\nagriculture, horticulture, floriculture, viticulture or commercial\nfishing. Moreover, for purposes of computing the capital base in a\ncombined report, the combined group shall be considered a "manufacturer"\nfor purposes of this subparagraph only if the combined group during the\ntaxable year is principally engaged in the activities set forth in this\nsubparagraph, or any combination thereof. A taxpayer or a combined group\nshall be "principally engaged" in activities described above if, during\nthe taxable year, more than fifty percent of the gross receipts of the\ntaxpayer or combined group, respectively, are derived from receipts from\nthe sale of goods produced by such activities. In computing a combined\ngroup's gross receipts, intercorporate receipts shall be eliminated. A\n"qualified New York manufacturer" is a manufacturer that has property in\nNew York that is described in subdivision one of section 210-B of this\narticle and either (i) the adjusted basis of that property for federal\nincome tax purposes at the close of the taxable year is at least one\nmillion dollars or (ii) all of its real and personal property is located\nin New York. In addition, a "qualified New York manufacturer" means a\ntaxpayer that is defined as a qualified emerging technology company\nunder paragraph (c) of subdivision one of section thirty-one hundred\ntwo-e of the public authorities law regardless of the ten million dollar\nlimitation expressed in subparagraph one of such paragraph. A taxpayer\nor, in the case of a combined report, a combined group, that does not\nsatisfy the principally engaged test may be a qualified New York\nmanufacturer if the taxpayer or the combined group employs during the\ntaxable year at least two thousand five hundred employees in\nmanufacturing in New York and the taxpayer or the combined group has\nproperty in the state used in manufacturing, the adjusted basis of which\nfor federal income tax purposes at the close of the taxable year is at\nleast one hundred million dollars.\n (d) Fixed dollar minimum. (1) The amount prescribed by this paragraph\nfor New York S corporations will be determined in accordance with the\nfollowing table:\nIf New York receipts are: The fixed dollar minimum tax is:\n not more than $100,000 $ 25\n more than $100,000 but not over $250,000 $ 50\n more than $250,000 but not over $500,000 $ 175\n more than $500,000 but not over $1,000,000 $ 300\n more than $1,000,000 but not over $5,000,000 $1,000\n more than $5,000,000 but not over $25,000,000 $3,000\n Over $25,000,000 $4,500\nProvided further, the amount prescribed by this paragraph for a\nqualified New York manufacturer, as defined in subparagraph (vi) of\nparagraph (a) of this subdivision, and a qualified emerging technology\ncompany under paragraph (c) of subdivision one of section thirty-one\nhundred two-e of the public authorities law regardless of the ten\nmillion dollar limitation expressed in subparagraph one of such\nparagraph (c) will be determined in accordance with the following\ntables:\nFor tax years beginning on or after January 1, 2014 and before January\n1, 2015:\nIf New York receipts are: The fixed dollar minimum tax is:\n not more than $100,000 $ 23\n more than $100,000 but not over $250,000 $ 68\n more than $250,000 but not over $500,000 $ 159\n more than $500,000 but not over $1,000,000 $ 454\n more than $1,000,000 but not over $5,000,000 $1,362\n more than $5,000,000 but not over $25,000,000 $3,178\n Over $25,000,000 $4,500\nFor tax years beginning on or after January 1, 2015 and before January\n1, 2016:\nIf New York receipts are: The fixed dollar minimum tax is:\n not more than $100,000 $ 22\n more than $100,000 but not over $250,000 $ 66\n more than $250,000 but not over $500,000 $ 153\n more than $500,000 but not over $1,000,000 $ 439\n more than $1,000,000 but not over $5,000,000 $1,316\n more than $5,000,000 but not over $25,000,000 $3,070\n Over $25,000,000 $4,385\nFor tax years beginning on or after January 1, 2016 and before January\n1, 2018:\nIf New York receipts are: The fixed dollar minimum tax is:\n not more than $100,000 $ 21\n more than $100,000 but not over $250,000 $ 63\n more than $250,000 but not over $500,000 $ 148\n more than $500,000 but not over $1,000,000 $ 423\n more than $1,000,000 but not over $5,000,000 $1,269\n more than $5,000,000 but not over $25,000,000 $2,961\n Over $25,000,000 $4,230\nFor tax years beginning on or after January 1, 2018:\nIf New York receipts are: The fixed dollar minimum tax is:\n not more than $100,000 $ 19\n more than $100,000 but not over $250,000 $ 56\n more than $250,000 but not over $500,000 $ 131\n more than $500,000 but not over $1,000,000 $ 375\n more than $1,000,000 but not over $5,000,000 $1,125\n more than $5,000,000 but not over $25,000,000 $2,625\n Over $25,000,000 $3,750\nOtherwise the amount prescribed by this paragraph will be determined in\naccordance with the following table:\nIf New York receipts are: The fixed dollar minimum tax is:\n not more than $100,000 $ 25\n more than $100,000 but not over $250,000 $ 75\n more than $250,000 but not over $500,000 $ 175\n more than $500,000 but not over $1,000,000 $ 500\n more than $1,000,000 but not over $5,000,000 $1,500\n more than $5,000,000 but not over $25,000,000 $3,500\n more than $25,000,000\n but not over $50,000,000 $5,000\n more than $50,000,000 but not over $100,000,000 $10,000\n more than $100,000,000 but not over $250,000,000 $20,000\n more than $250,000,000 but not over $500,000,000 $50,000\n more than $500,000,000 but not over $1,000,000,000 $100,000\n Over $1,000,000,000 $200,000\nFor purposes of this paragraph, New York receipts are the receipts\nincluded in the numerator of the apportionment factor determined under\nsection two hundred ten-A for the taxable year.\n (2) If the taxable year is less than twelve months, the amount of New\nYork receipts is determined by dividing the amount of the receipts for\nthe taxable year by the number of months in the taxable year and\nmultiplying the result by twelve. In the case of a termination year of a\nNew York S corporation, the sum of the tax computed under this paragraph\nfor the S short year and for the C short year shall not be less than the\namount computed under this paragraph as if the corporation were a New\nYork C corporation for the entire taxable year.\n (f) For purposes of this section, the term "small business taxpayer"\nshall mean a taxpayer (i) which has an entire net income of not more\nthan three hundred ninety thousand dollars for the taxable year; (ii)\nthe aggregate amount of money and other property received by the\ncorporation for stock, as a contribution to capital, and as paid-in\nsurplus, does not exceed one million dollars; (iii) which is not part of\nan affiliated group, as defined in section 1504 of the internal revenue\ncode, unless such group, if it had filed a report under this article on\na combined basis, would have itself qualified as a "small business\ntaxpayer" pursuant to this subdivision; and (iv) which has an average\nnumber of individuals, excluding general executive officers, employed\nfull-time in the state during the taxable year of one hundred or fewer.\nIf the taxable period to which subparagraph (i) of this paragraph\napplies is less than twelve months, entire net income under such\nsubparagraph shall be placed on an annual basis by multiplying the\nentire net income by twelve and dividing the result by the number of\nmonths in the period. For purposes of subparagraph (ii) of this\nparagraph, the amount taken into account with respect to any property\nother than money shall be the amount equal to the adjusted basis to the\ncorporation of such property for determining gain, reduced by any\nliability to which the property was subject or which was assumed by the\ncorporation. The determination under the preceding sentence shall be\nmade as of the time the property was received by the corporation. For\npurposes of subparagraph (iii) of this section, "average number of\nindividuals, excluding general executive officers, employed full-time"\nshall be computed by ascertaining the number of such individuals\nemployed by the taxpayer on the thirty-first day of March, the thirtieth\nday of June, the thirtieth day of September and the thirty-first day of\nDecember during each taxable year or other applicable period, by adding\ntogether the number of such individuals ascertained on each of such\ndates and dividing the sum so obtained by the number of such dates\noccurring within such taxable year or other applicable period. An\nindividual employed full-time means an employee in a job consisting of\nat least thirty-five hours per week, or two or more employees who are in\njobs that together constitute the equivalent of a job at least\nthirty-five hours per week (full-time equivalent). Full-time equivalent\nemployees in the state includes all employees regularly connected with\nor working out of an office or place of business of the taxpayer within\nthe state.\n * NB Effective January 1, 2015\n * 1-c. The computations specified in paragraph (b) of subdivision one\nof this section shall not apply to the first two taxable years of a\ntaxpayer which, for one or both such years, is a small business concern.\nA small business concern:\n (a) is a taxpayer which is a small business corporation as defined in\nparagraph three of subsection (c) of section twelve hundred forty-four\nof the internal revenue code (without regard to the second sentence of\nsubparagraph (A) thereof) as of the last day of the taxable year,\n (b) is not a corporation over fifty percent of the number of shares of\nstock of which entitling the holders thereof to vote for the election of\ndirectors or trustees is owned by a taxpayer which (1) is subject to tax\nunder this article; section one hundred eighty-three, one hundred\neighty-four or one hundred eighty-five of article nine; article\nthirty-two or thirty-three of this chapter, and (2) does not qualify as\na small business corporation as defined in paragraph three of subsection\n(c) of section twelve hundred forty-four of the internal revenue code\n(without regard to the second sentence of subparagraph (A) thereof) as\nof the last day of its taxable year ending within or with the taxable\nyear of the taxpayer,\n (c) is not a corporation which is substantially similar in operation\nand in ownership to a business entity (or entities) taxable, or\npreviously taxable, under this article; section one hundred\neighty-three, one hundred eighty-four, one hundred eighty-five or one\nhundred eighty-six of article nine; article thirty-two or thirty-three\nof this chapter; article twenty-three of this chapter or which would\nhave been subject to tax under such article twenty-three (as such\narticle was in effect on January first, nineteen hundred eighty) or the\nincome (or losses) of which is (or was) includable under article\ntwenty-two of this chapter, and\n (d) at least ninety percent of the assets of such corporation (valued\nat original cost) were located and employed in this state during the\ntaxable year and eighty percent of the employees of such corporation (as\nascertained within the meaning and intent of subparagraph three of\nparagraph (a) of subdivision three of this section) were principally\nemployed in this state during the taxable year.\n * NB Effective until January 1, 2015\n * 1-c. The computations specified in paragraph (b) of subdivision one\nof this section shall not apply to the first two taxable years of a\ntaxpayer which, for one or both such years, is a small business taxpayer\nas defined in paragraph (f) of subdivision one of this section.\n * NB Effective January 1, 2015\n * 2. The amount of subsidiary capital, investment capital and business\ncapital shall each be determined by taking the average value of the\nassets included therein (less liabilities deductible therefrom pursuant\nto the provisions of subdivisions four, five and seven of section two\nhundred eight), and, if the period covered by the report is other than a\nperiod of twelve calendar months, by multiplying such value by the\nnumber of calendar months or major parts thereof included in such\nperiod, and dividing the product thus obtained by twelve. For purposes\nof this subdivision, real property and marketable securities shall be\nvalued at fair market value and the value of personal property other\nthan marketable securities shall be the value thereof shown on the books\nand records of the taxpayer in accordance with generally accepted\naccounting principles.\n * NB Effective until January 1, 2015\n * 2. The amount of investment capital and business capital shall each\nbe determined by taking the average value of the assets included therein\n(less liabilities deductible therefrom pursuant to the provisions of\nsubdivisions five and seven of section two hundred eight), and, if the\nperiod covered by the report is other than a period of twelve calendar\nmonths, by multiplying such value by the number of calendar months or\nmajor parts thereof included in such period, and dividing the product\nthus obtained by twelve. For purposes of this subdivision, real property\nand marketable securities shall be valued at fair market value and the\nvalue of personal property other than marketable securities shall be the\nvalue thereof shown on the books and records of the taxpayer in\naccordance with generally accepted accounting principles.\n * NB Effective January 1, 2015\n * 3. The portion of the entire net income of a taxpayer to be\nallocated within the state shall be determined as follows:\n (a) multiply its business income by a business allocation percentage\nto be determined by\n (1) ascertaining the percentage which the average value of the\ntaxpayer's real and tangible personal property, whether owned or rented\nto it, within the state during the period covered by its report bears to\nthe average value of all the taxpayer's real and tangible personal\nproperty, whether owned or rented to it, wherever situated during such\nperiod. For the purpose of this subparagraph the term "value of the\ntaxpayer's real and tangible personal property" shall mean the adjusted\nbases of such properties for federal income tax purposes (except that in\nthe case of rented property such value shall mean the product of (i)\neight and (ii) the gross rents payable for the rental of such property\nduring the taxable year); provided, however, that the taxpayer may make\na one-time, revocable election, pursuant to regulations promulgated by\nthe commissioner to use fair market value as the value of all of its\nreal and tangible personal property, provided that such election is made\non or before the due date for filing a report under section two hundred\neleven for the taxpayer's first taxable year commencing on or after\nJanuary first, nineteen hundred eighty-seven and provided that such\nelection shall not apply to any taxable year with respect to which the\ntaxpayer is included on a combined report unless each of the taxpayers\nincluded on such report has made such an election which remains in\neffect for such year;\n (2) ascertaining the percentage which the receipts of the taxpayer,\ncomputed on the cash or accrual basis according to the method of\naccounting used in the computation of its entire net income, arising\nduring such period from\n (A) sales of its tangible personal property where shipments are made\nto points within this state,\n (B) services performed within the state, provided, however, that (i)\nin the case of a taxpayer engaged in the business of publishing\nnewspapers or periodicals, receipts arising from sales of advertising\ncontained in such newspapers and periodicals shall be deemed to arise\nfrom services performed within the state to the extent that such\nnewspapers and periodicals are delivered to points within the state,\n(ii) receipts from an investment company arising from the sale of\nmanagement, administration or distribution services to such investment\ncompany shall be deemed to arise from services performed within the\nstate to the extent set forth in subparagraph six of this paragraph,\n(iii) in the case of taxpayers principally engaged in the activity of\nair freight forwarding acting as principal and like indirect air\ncarriage receipts arising from such activity shall arise from services\nperformed within the state as follows: one hundred percent of such\nreceipts if both the pickup and delivery associated with such receipts\nare made in this state and fifty percent of such receipts if either the\npickup or delivery associated with such receipts is made in this state\nand (iv) in the case of a taxpayer which is a registered securities or\ncommodities broker or dealer, the receipts specified in subparagraph\nnine of this paragraph shall be deemed to arise from services performed\nwithin the state to the extent set forth in such subparagraph nine, and\n(iv) in the case of receipts arising from the transportation or\ntransmission of gas through pipes, the portion of such receipts which\nconstitute receipts from services performed within the state shall be\nthe product of (I) the total of such receipts and (II) a fraction, the\nnumerator of which is the taxpayer's transportation units within the\nstate and the denominator of which is the taxpayer's transportation\nunits within and without the state. A transportation unit is the\ntransportation of one cubic foot of gas over a distance of one mile,\n (C) rentals from property situated, and royalties from the use of\npatents or copyrights, within the state, and receipts from the sales of\nrights for closed-circuit and cable television transmissions of an event\n(other than events occurring on a regularly scheduled basis) taking\nplace within the state as a result of the rendition of services by\nemployees of the corporation, as athletes, entertainers or performing\nartists, but only to the extent that such receipts are attributable to\nsuch transmissions received or exhibited within the state and\n (D) all other business receipts earned within the state, bear to the\ntotal amount of the taxpayer's receipts, similarly computed, arising\nduring such period from all sales of its tangible personal property,\nservices, rentals, royalties, receipts from the sales of rights for\nclosed-circuit and cable television transmissions and all other business\ntransactions, whether within or without the state;\n (3) ascertaining the percentage of the total wages, salaries and other\npersonal service compensation, similarly computed, during such period of\nemployees within the state, except general executive officers, to the\ntotal wages, salaries and other personal service compensation, similarly\ncomputed, during such period of all the taxpayer's employees within and\nwithout the state, except general executive officers; and\n (4) adding together the percentages so determined and dividing the\nresult by the number of percentages; provided, however, except (i) in\nthe case of a New York S corporation, (ii) for purposes of computing\nminimum taxable income for taxable years beginning before nineteen\nhundred ninety-four, and (iii) for purposes of computing pre-nineteen\nhundred ninety minimum taxable income, for taxable years beginning on or\nafter the first day of January, nineteen hundred seventy-six, the\nbusiness allocation percentage shall be determined by adding the\npercentages so determined and an additional percentage equal to the\npercentage determined under subparagraph two of this paragraph together,\nand dividing the result by the number of percentages so added together;\nprovided, however, that for taxable years beginning before January\nfirst, nineteen hundred seventy-eight, if the taxpayer does not have a\nregular place of business outside the state other than a statutory\noffice, the business allocation percentage shall be one hundred percent;\n (5) Provided, however, that any taxpayer required to adjust its\nreceipts, expenses, assets and liabilities by adding an attributable\nportion of the receipts, expenses, assets and liabilities of any DISC,\nas provided by paragraph (i) of subdivision nine of section two hundred\neight of this article, shall substitute such adjusted figures in\ncomputing the percentages required in subparagraphs one, two and three\nof this paragraph.\n (6) Rules for receipts from certain services to investment companies.\n(A) For purposes of subclause (ii) of clause (B) of subparagraph two of\nthis paragraph, the portion of receipts received from an investment\ncompany arising from the sale of management, administration or\ndistribution services to such investment company determined in\naccordance with clause (B) of this subparagraph shall be deemed to arise\nfrom services performed within the state (such portion referred to\nherein as the New York portion).\n (B) The New York portion shall be the product of (a) the total of such\nreceipts from the sale of such services and (b) a fraction. The\nnumerator of that fraction is the sum of the monthly percentages (as\ndefined hereinafter) determined for each month of the investment\ncompany's taxable year for federal income tax purposes which taxable\nyear ends within the taxable year of the taxpayer (but excluding any\nmonth during which the investment company had no outstanding shares).\nThe monthly percentage for each such month is determined by dividing (a)\nthe number of shares in the investment company which are owned on the\nlast day of the month by shareholders which are domiciled in the state\nby (b) the total number of shares in the investment company outstanding\non that date. The denominator of the fraction is the number of such\nmonthly percentages.\n (C) (i) For purposes of this subparagraph, the term "domicile", in the\ncase of an individual, shall have the meaning ascribed to it under\narticle twenty-two of this chapter; an estate or trust is domiciled in\nthe state if it is a resident estate or trust as defined in paragraph\nthree of subsection (b) of section six hundred five of this chapter; a\nbusiness entity is domiciled in the state if the location of the actual\nseat of management or control is in the state. It shall be presumed that\nthe domicile of a shareholder, with respect to any month, is his, her or\nits mailing address on the records of the investment company as of the\nlast day of such month.\n (ii) For purposes of this subparagraph, the term "investment company"\nmeans a regulated investment company, as defined in section 851 of the\ninternal revenue code, and a partnership to which section 7704(a) of the\ninternal revenue code applies (by virtue of section 7704(c)(3) of such\ncode) and that meets the requirements of section 851(b) of such code.\nThe preceding sentence shall be applied to the taxable year for federal\nincome tax purposes of the business entity that is asserted to\nconstitute an investment company that ends within the taxable year of\nthe taxpayer.\n (iii) For purposes of this subparagraph, the term "receipts from an\ninvestment company" includes amounts received directly from an\ninvestment company as well as amounts received from the shareholders in\nsuch investment company, in their capacity as such.\n (iv) For purposes of this subparagraph, the term "management services"\nmeans the rendering of investment advice to an investment company,\nmaking determinations as to when sales and purchases of securities are\nto be made on behalf of an investment company, or the selling or\npurchasing of securities constituting assets of an investment company,\nand related activities, but only where such activity or activities are\nperformed pursuant to a contract with the investment company entered\ninto pursuant to section 15(a) of the federal investment company act of\nnineteen hundred forty, as amended.\n (v) For purposes of this subparagraph, the term "distribution\nservices" means the services of advertising, servicing investor accounts\n(including redemptions), marketing shares or selling shares of an\ninvestment company, but, in the case of advertising, servicing investor\naccounts (including redemptions) or marketing shares, only where such\nservice is performed by a person who is (or was, in the case of a closed\nend company) also engaged in the service of selling such shares. In the\ncase of an open end company, such service of selling shares must be\nperformed pursuant to a contract entered into pursuant to section 15(b)\nof the federal investment company act of nineteen hundred forty, as\namended.\n (vi) For purposes of this subparagraph, the term "administration\nservices" includes (1) clerical, accounting, bookkeeping, data\nprocessing, internal auditing, legal and tax services performed for an\ninvestment company but only (2) if the provider of such service or\nservices during the taxable year in which such service or services are\nsold also sells management or distribution services, as defined\nhereinabove, to such investment company.\n (7) (A) Provided, further, however, that a taxpayer principally\nengaged in the conduct of aviation (other than air freight forwarders\nacting as principal and like indirect air carriers and other than as\nprovided in clause (D) of this subparagraph) shall, notwithstanding the\nforegoing provisions of this paragraph, determine the portion of entire\nnet income to be allocated within the state by multiplying its business\nincome by a business allocation percentage which is equal to the\narithmetic average of the following three percentages:\n (i) the percentage determined by dividing sixty percent of the\naircraft arrivals and departures within this state by the taxpayer\nduring the period covered by its report by the total aircraft arrivals\nand departures within and without this state during such period;\nprovided, however, arrivals and departures solely for maintenance or\nrepair, refueling (where no debarkation or embarkation of traffic\noccurs), arrivals and departures of ferry and personnel training flights\nor arrivals and departures in the event of emergency situations shall\nnot be included in computing such arrival and departure percentage;\nprovided, further, the commissioner may also exempt from such percentage\naircraft arrivals and departures of all non-revenue flights including\nflights involving the transportation of officers or employees receiving\nair transportation to perform maintenance or repair services or where\nsuch officers or employees are transported in conjunction with an\nemergency situation or the investigation of an air disaster (other than\non a scheduled flight); provided, however, that arrivals and departures\nof flights transporting officers and employees receiving air\ntransportation for purposes other than specified above (without regard\nto remuneration) shall be included in computing such arrival and\ndeparture percentage;\n (ii) the percentage determined by dividing sixty percent of the\nrevenue tons handled by the taxpayer at airports within this state\nduring such period by the total revenue tons handled by it at airports\nwithin and without this state during such period; and\n (iii) the percentage determined by dividing sixty percent of the\ntaxpayer's originating revenue within this state for such period by its\ntotal originating revenue within and without this state for such period.\n (B) As used herein the term "aircraft arrivals and departures" means\nthe number of landings and takeoffs of the aircraft of the taxpayer and\nthe number of air pickups and deliveries by the aircraft of such\ntaxpayer; the term "originating revenue" means revenue to the taxpayer\nfrom the transportation of revenue passengers and revenue property first\nreceived by the taxpayer either as originating or connecting traffic at\nairports; and the term "revenue tons handled" by the taxpayer at\nairports means the weight in tons of revenue passengers (at two hundred\npounds per passenger) and revenue cargo first received either as\noriginating or connecting traffic or finally discharged by the taxpayer\nat airports;\n (C) Taxpayers principally engaged as air freight forwarders acting as\nprincipal and like indirect air carriers shall allocate business income\nin accordance with subparagraphs (1) through (4) of this paragraph,\nincluding the special provision relating to the allocation of receipts\nfrom the activity of air freight forwarding acting as principal\ncontained in clause (B) of subparagraph (2) of this paragraph.\n (D) A foreign air carrier described in the first sentence of\nsubparagraph one of paragraph (c-1) of subdivision nine of section two\nhundred eight of this article shall determine its business allocation\npercentage pursuant to the provisions of subparagraphs one through four\nof this paragraph, except that the numerators and denominators involved\nin such computation shall exclude property to the extent employed in\ngenerating income excluded from entire net income pursuant to the\nprovisions of paragraph (c-1) of subdivision nine of section two hundred\neight of this article, exclude such receipts as are excluded from entire\nnet income for the taxable year pursuant to the provisions of paragraph\n(c-1) of subdivision nine of section two hundred eight of this article,\nand exclude wages, salaries or other personal service compensation which\nare directly attributable to the generation of income excluded from\nentire net income for the taxable year pursuant to the provisions of\nparagraph (c-1) of subdivision nine of section two hundred eight of this\narticle.\n (8) Provided, further, however that the business allocation percentage\nof a taxpayer principally engaged in the conduct of a railroad business\n(including surface railroad, whether or not operated by steam, subway\nrailroad, elevated railroad, palace car or sleeping car business) or a\ntrucking business, shall, notwithstanding the foregoing provisions of\nthis paragraph, be computed by dividing the taxpayer's mileage within\nthis state during the period covered by its report by the taxpayer's\nmileage within and without this state during such period.\n (9)(A) In the case of a taxpayer which is a registered securities or\ncommodities broker or dealer, the receipts specified in subclauses (i)\nthrough (vii) of this clause shall be deemed to arise from services\nperformed within the state to the extent set forth in each of such\nsubclauses.\n (i) Receipts constituting brokerage commissions derived from the\nexecution of securities or commodities purchase or sales orders for the\naccounts of customers shall be deemed to arise from services performed\nat the mailing address in the records of the taxpayer of the customer\nwho is responsible for paying such commissions.\n (ii) Receipts constituting margin interest earned on behalf of\nbrokerage accounts shall be deemed to arise from services performed at\nthe mailing address in the records of the taxpayer of the customer who\nis responsible for paying such margin interest.\n (iii) Gross income, including any accrued interest or dividends, from\nprincipal transactions for the purchase or sale of stocks, bonds,\nforeign exchange and other securities or commodities (including futures\nand forward contracts, options and other types of securities or\ncommodities derivatives contracts) shall be deemed to arise from\nservices performed within the state either (I) to the extent that\nproduction credits are awarded to branches, offices or employees of the\ntaxpayer within the state as a result of such principal transactions or\n(II) if the taxpayer so elects, to the extent that the gross proceeds\nfrom such principal transactions (determined without deduction for any\ncost incurred by the taxpayer to acquire the securities or commodities)\nare generated from sales of securities or commodities to customers\nwithin the state based upon the mailing addresses of such customers in\nthe records of the taxpayer. For purposes of item (II) of the preceding\nsentence, the taxpayer shall separately calculate such gross income from\nprincipal transactions by type of security or commodity. For purposes of\nthis subclause, gross income from principal transactions shall be\ndetermined after the deduction of any cost incurred by the taxpayer to\nacquire the securities or commodities. For purposes of this\nsubparagraph, the term "production credits" means credits granted\npursuant to the internal accounting system used by the taxpayer to\nmeasure the amount of revenue that should be awarded to a particular\nbranch or office or employee of the taxpayer which is based, at least in\npart, on the branch's, the office's or the employee's particular\nactivities. Upon request, the taxpayer shall be required to furnish a\ndetailed explanation of such internal accounting system to the\ndepartment.\n (iv) (I) Receipts constituting fees earned by the taxpayer for\nadvisory services to a customer in connection with the underwriting of\nsecurities for such customer (such customer being the entity which is\ncontemplating issuing or is issuing securities) or fees earned by the\ntaxpayer for managing an underwriting shall be deemed to arise from\nservices performed at the mailing address in the records of the taxpayer\nof such customer who is responsible for paying such fees. (II) Receipts\nconstituting the primary spread or selling concession from underwritten\nsecurities shall be deemed to arise from services performed within the\nstate to the extent that production credits are awarded to branches,\noffices or employees of the taxpayer within the state as a result of the\nsale of the underwritten securities. (III) The term "primary spread"\nmeans the difference between the price paid by the taxpayer to the\nissuer of the securities being marketed and the price received from the\nsubsequent sale of the underwritten securities at the initial public\noffering price, less any selling concession and any fees paid to the\ntaxpayer for advisory services or any manager's fees, if such fees are\nnot paid by the customer to the taxpayer separately. The term "public\noffering price" means the price agreed upon by the taxpayer and the\nissuer at which the securities are to be offered to the public. The term\n"selling concession" means the amount paid to the taxpayer for\nparticipating in the underwriting of a security where the taxpayer is\nnot the lead underwriter. The term "production credits" shall have the\nsame meaning as in subclause (iii) of this clause.\n (v) Receipts constituting interest earned by the taxpayer on loans and\nadvances made by the taxpayer to a corporation affiliated with the\ntaxpayer but with which the taxpayer is not permitted or required to\nfile a combined report pursuant to section two hundred eleven of this\narticle shall be deemed to arise from services performed at the\nprincipal place of business of such affiliated corporation.\n (vi) Receipts constituting account maintenance fees shall be deemed to\narise from services performed at the mailing address in the records of\nthe taxpayer of the customer who is responsible for paying such account\nmaintenance fees.\n (vii) Receipts constituting fees for management or advisory services,\nincluding fees for advisory services in relation to merger or\nacquisition activities but excluding fees paid for services described in\nsubclause (ii) of clause (B) of subparagraph two of this paragraph,\nshall be deemed to arise from services performed at the mailing address\nin the records of the taxpayer of the customer who is responsible for\npaying such fees.\n (B) For purposes of this subparagraph, the term "securities" shall\nhave the same meaning as in section 475(c)(2) of the internal revenue\ncode and the term "commodities" shall have the same meaning as in\nsection 475(e)(2) of the internal revenue code. The term "registered\nsecurities or commodities broker or dealer" means a broker or dealer\nregistered as such by the securities and exchange commission or the\ncommodities futures trading commission, and shall include an OTC\nderivatives dealer as defined under regulations of the securities and\nexchange commission at title 17, part 240, section 3b-12 of the code of\nfederal regulations (17 CFR 240.3b-12).\n (C) If the taxpayer receives any of the receipts enumerated in clause\n(A) of this subparagraph as a result of a securities correspondent\nrelationship such taxpayer has with another registered securities or\ncommodities broker or dealer with the taxpayer acting in this\nrelationship as the clearing firm, such receipts shall be deemed to\narise from services performed within the state to the extent set forth\nin each of such subclauses. The amount of such receipts shall exclude\nthe amount the taxpayer is required to pay to the correspondent firm for\nsuch correspondent relationship. If the taxpayer receives any of the\nreceipts enumerated in clause (A) of this subparagraph as a result of a\nsecurities correspondent relationship such taxpayer has with another\nregistered securities or commodities broker or dealer with the taxpayer\nacting in this relationship as the introducing firm, such receipts shall\nbe deemed to arise from services performed within the state to the\nextent set forth in each of such subclauses.\n (D) If, for purposes of subclause (i), (ii), (iv)(I), (vi), or (vii)\nof clause (A) of this subparagraph, the taxpayer is unable from its\nrecords to determine the mailing address of the customer, the receipts\nenumerated in any of such subclauses shall be deemed to arise from\nservices performed at the branch or office of the taxpayer that\ngenerates the transaction for the customer that generated such receipts.\n (10) (A) Notwithstanding the foregoing provisions of this paragraph,\nother than subparagraphs seven and eight of this paragraph, the business\nallocation percentage shall be computed in the manner set forth in this\nsubparagraph.\n (i) For taxable years beginning on or after January first, two\nthousand six and before January first, two thousand seven, the business\nallocation percentage shall be determined by adding together the\nfollowing percentages:\n (I) the product of twenty percent and the percentage determined under\nsubparagraph one of this paragraph,\n (II) the product of sixty percent and the percentage determined under\nsubparagraph two of this paragraph, and\n (III) the product of twenty percent and the percentage determined\nunder subparagraph three of this paragraph.\n (ii) For taxable years beginning on or after January first, two\nthousand seven, the business allocation percentage shall be the\npercentage provided for in subparagraph two of this paragraph.\n (b) multiplying its investment income by an investment allocation\npercentage to be determined by\n (1) multiplying the amount of its investment capital invested in each\nstock, bond or other security (other than governmental securities)\nduring the period covered by its report by the issuer's allocation\npercentage of the issuer or obligor thereof.\n (i) In the case of an issuer or obligor subject to tax under section\none hundred eighty-three, one hundred eighty-five or one hundred\neighty-six of this chapter or under this article or article thirty-three\nof this chapter (except for savings and insurance banks described in\nsubdivision (b) of section fifteen hundred of this chapter), the\nissuer's allocation percentage shall be the percentage of the\nappropriate measure (as defined hereinafter) which is required to be\nallocated within the state on the report, if any, required of the issuer\nor obligor under this chapter for the preceding year. The appropriate\nmeasure referred to in the preceding sentence shall be: in the case of\nan issuer or obligor subject to section one hundred eighty-three of this\nchapter, issued capital stock; in the case of an issuer or obligor\nsubject to section one hundred eighty-five of this chapter, issued\ncapital stock; in the case of an issuer or obligor subject to section\none hundred eighty-six of this chapter, gross earnings; in the case of\nan issuer or obligor subject to this article, entire capital; and in the\ncase of an issuer or obligor subject to article thirty-three of this\nchapter, gross direct premiums.\n (ii) In the case of an issuer or obligor subject to tax under article\nthirty-two of this chapter, the issuer's allocation percentage shall be\ndetermined as follows:\n (A) In the case of a banking corporation described in paragraphs one\nthrough eight of subsection (a) of section fourteen hundred fifty-two of\nthis chapter which is organized under the laws of the United States,\nthis state or any other state of the United States, the issuer's\nallocation percentage shall be its alternative entire net income\nallocation percentage, as defined in subsection (c) of section fourteen\nhundred fifty-four of this chapter, for the preceding year. In the case\nof such a banking corporation whose alternative entire net income for\nthe preceding year is derived exclusively from business carried on\nwithin the state, its issuer's allocation percentage shall be one\nhundred percent.\n (B) In the case of a banking corporation described in paragraph two of\nsubsection (a) of section fourteen hundred fifty-two of this chapter\nwhich is organized under the laws of a country other than the United\nStates, the issuer's allocation percentage shall be determined by\ndividing (I) the amount described in clause (i) of subparagraph (A) of\nparagraph two of subsection (a) of section fourteen hundred fifty-four\nof this chapter with respect to such issuer or obligor for the preceding\nyear, by (II) the gross income of such issuer or obligor from all\nsources within and without the United States, for such preceding year,\nwhether or not included in alternative entire net income for such year.\n (C) In the case of an issuer or obligor described in paragraph nine of\nsubsection (a) or in paragraph two of subsection (d) of section fourteen\nhundred fifty-two of this chapter, the issuer's allocation percentage\nshall be determined by dividing the portion of the entire capital of the\nissuer or obligor allocable to this state for the preceding year by the\nentire capital, wherever located, of the issuer or obligor for the\npreceding year.\n (iii) Provided, however, that if a report for the preceding year is\nnot filed, or if filed does not contain information which would permit\nthe determination of such issuer's allocation percentage, then the\nissuer's allocation percentage to be used shall, at the discretion of\nthe commissioner, be either (A) the issuer's allocation percentage\nderived from the most recently filed report of the issuer or obligor or\n(B) a percentage calculated, by the commissioner, reasonably to indicate\nthe degree of economic presence in this state of the issuer or obligor\nduring the preceding year.\n (2) adding together the sums so obtained, and\n (3) dividing the result so obtained by the total of its investment\ncapital invested during such period in stocks, bonds and other\nsecurities; provided, however, that in case any investment capital is\ninvested in any stock, bond or other security during only a portion of\nthe period covered by the report, only such portion of such capital\nshall be taken into account; and provided further, that if a taxpayer's\ninvestment allocation percentage is zero, interest received on bank\naccounts shall be multiplied by its business allocation percentage;\nprovided, however, that with respect to corporations organized under\narticle fifteen or authorized to do business in this state under article\nfifteen-a of the business corporation law, the investment allocation\npercentage shall be one hundred percent; and\n (c) add the products so obtained.\n (d) Except as provided in subparagraph three of this paragraph or in\nparagraph (e) of this subdivision, at the election of the taxpayer there\nshall be deducted from the portion of its entire net income allocated\nwithin the state either or both of the items set forth in subparagraphs\none and two of this paragraph, except that only one of such deductions\nshall be allowed with respect to any one item of property.\n (1) Depreciation with respect to any property such as described in\nsubparagraph three of this paragraph, not exceeding twice the\ndepreciation allowed with respect to the same property for federal\nincome tax purposes. Such deduction shall be allowed only upon condition\nthat entire net income be computed without any deduction for the\ndepreciation or amortization of the same property, and the total of all\ndeductions allowed in any taxable year or years with respect to the\ndepreciation of any such property shall not exceed its cost or other\nbasis.\n (2) Expenditures paid or incurred during the taxable year for the\nconstruction, reconstruction, erection or acquisition of any property\nsuch as described in subparagraph three of this paragraph which is used\nor to be used for purposes of research and development in the\nexperimental or laboratory sense. Such purposes shall not be deemed to\ninclude the ordinary testing or inspection of materials or products for\nquality control, efficiency surveys, management studies, consumer\nsurveys, advertising, promotions or research in connection with\nliterary, historical or similar projects. Such deduction shall be\nallowed only on condition that entire net income for the taxable year\nand all succeeding taxable years be computed without the deduction of\nany such expenditures and without any deduction for depreciation of the\nsame property, except to the extent that its basis may be attributable\nto factors other than such expenditures, or in case a deduction is\nallowable pursuant to this subparagraph for only a part of such\nexpenditures, on condition that any deduction allowed for federal income\ntax purposes on account of such expenditures or on account of\ndepreciation of the same property be proportionately reduced in\ncomputing entire net income for the taxable year and all succeeding\ntaxable years. With respect to property which is used or to be used for\nresearch and development only in part, or during only part of its useful\nlife, a proportionate part of such expenditures shall be deductible. If\nall or part of such expenditures with respect to any property shall have\nbeen deducted as provided herein, and such property is used for purposes\nother than research and development to a greater extent than originally\nreported, the taxpayer shall report such use in its report for the first\ntaxable year during which it occurs, and the tax commission may\nrecompute the tax for the year or years for which such deduction was\nallowed, and may assess any additional tax resulting from such\nrecomputation regardless of the time limitations set forth in section\nten hundred eighty-three of this chapter.\n (3) Such deductions shall be allowed only with respect to tangible\nproperty which is depreciable pursuant to section one hundred\nsixty-seven of the internal revenue code, having a situs in this state\nand used in the taxpayer's trade or business, (A) constructed,\nreconstructed or erected after December thirty-first, nineteen hundred\nsixty-three, pursuant to a contract which was, on or before December\nthirty-first, nineteen hundred sixty-seven, and at all times thereafter,\nbinding on the taxpayer or, property, the physical construction,\nreconstruction or erection of which began on or before December\nthirty-first, nineteen hundred sixty-seven or which began after such\ndate pursuant to an order placed on or before December thirty-first,\nnineteen hundred sixty-seven, and then only with respect to that portion\nof the basis thereof or the expenditures relating thereto which is\nproperly attributable to such construction, reconstruction or erection\nafter December thirty-first, nineteen hundred sixty-three, or (B)\nacquired after December thirty-first, nineteen hundred sixty-three,\npursuant to a contract which was, on or before December thirty-first,\nnineteen hundred sixty-seven, and at all times thereafter, binding on\nthe taxpayer or pursuant to an order placed on or before December\nthirty-first, nineteen hundred sixty-seven, by purchase as defined in\nsection one hundred seventy-nine (d) of the internal revenue code, if\nthe original use of such property commenced with the taxpayer, commenced\nin this state and commenced after December thirty-first nineteen hundred\nsixty-three, or (C) acquired, constructed, reconstructed, or erected\nsubsequent to December thirty-first, nineteen hundred sixty-seven, if\nsuch acquisition, construction, reconstruction or erection is pursuant\nto a plan of the taxpayer which was in existence December thirty-first,\nnineteen hundred sixty-seven and not thereafter substantially modified,\nand such acquisition, construction, reconstruction or erection would\nqualify under the rules in paragraphs four, five or six of subsection\n(h) of section forty-eight of the internal revenue code provided all\nreferences in such paragraphs four, five and six to the dates October\nnine, nineteen hundred sixty-six, and October ten, nineteen hundred\nsixty-six, shall be read as December thirty-first, nineteen hundred\nsixty-seven. A taxpayer shall be allowed a deduction under clauses (A),\n(B) or (C) of this subparagraph only if the tangible property shall be\ndelivered or the construction, reconstruction or erection shall be\ncompleted on or before December thirty-first, nineteen hundred\nsixty-nine, except in the case of tangible property which is acquired,\nconstructed, reconstructed or erected pursuant to a contract which was,\non or before December thirty-first, nineteen hundred sixty-seven, and at\nall times thereafter, binding on the taxpayer. Provided, however, for\nany taxable year beginning on or after January first, nineteen hundred\nsixty-eight, a taxpayer shall not be allowed a deduction under paragraph\n(d) hereof with respect to tangible personal property leased by it to\nany other person or corporation. For purposes of the preceding sentence,\nany contract or agreement to lease or rent or for a license to use such\nproperty shall be considered a lease. With respect to property which the\ntaxpayer uses itself for purposes other than leasing for part of a\ntaxable year and leases for a part of a taxable year, the taxpayer shall\nbe allowed a deduction under paragraph (d) in proportion to the part of\nthe year it uses such property.\n (4) If the deductions allowable for any taxable year, pursuant to this\nsubdivision, exceed the portion of the taxpayer's entire net income\nallocated to this state for such year, the excess may be carried over to\nthe following taxable year or years and may be deducted from the portion\nof the taxpayer's entire net income allocated to this state for such\nyear or years; provided, however, that in no event shall such excess,\ninsofar as it reflects deductions taken with respect to items set forth\nin subparagraph two of this paragraph, be carried over to taxable years\ncommencing on or after January first, nineteen hundred ninety-four.\n (5) In any taxable year when property is sold or otherwise disposed\nof, with respect to which a deduction has been allowed pursuant to\nsubparagraph one or two of this paragraph, the gain or loss thereon\nentering into the computation of federal taxable income shall be\ndisregarded in computing entire net income, and there shall be added to\nor subtracted from the portion of entire net income allocated within the\nstate the gain or loss upon such sale or other disposition. In computing\nsuch gain or loss the basis of the property sold or disposed of shall be\nadjusted to reflect the deduction allowed with respect to such property\npursuant to subparagraph one or two of this paragraph. Provided,\nhowever, that no loss shall be recognized for the purposes of this\nsubparagraph with respect to a sale or other disposition of property to\na person whose acquisition thereof is not a purchase as defined in\nsection one hundred seventy-nine (d) of the internal revenue code.\n (e) At the election of the taxpayer there shall be deducted from the\nportion of its entire net income allocated within the state either or\nboth of the items set forth in subparagraphs one and two of this\nparagraph, except that only one of such deductions shall be allowed with\nrespect to any one item of property, and except that a deduction of the\nitem set forth in such subparagraph two may not be taken with respect to\ntaxable years commencing on or after January first, nineteen hundred\neighty-seven.\n (1) Depreciation with respect to any property such as described in\nsubparagraphs three and four of this paragraph, not exceeding twice the\ndepreciation allowed with respect to the same property for federal\nincome tax purposes. Such deduction shall be allowed only upon condition\nthat entire net income be computed without any deduction for the\ndepreciation or amortization of the same property, and the total of all\ndeductions allowed in any taxable year or years with respect to the\ndepreciation of any such property shall not exceed its cost or other\nbasis multiplied by the taxpayer's business allocation percentage\ndetermined under this subdivision for the first year it deducts such\ndepreciation under this paragraph.\n (2) Expenditures paid or incurred during the taxable year for the\nconstruction, reconstruction, erection or acquisition of any property\nsuch as described in subparagraph three of this paragraph which is used\nor to be used for purposes of research and development in the\nexperimental or laboratory sense. Such purposes shall not be deemed to\ninclude the ordinary testing or inspection of materials or products for\nquality control, efficiency surveys, management studies, consumer\nsurveys, advertising, promotions or research in connection with\nliterary, historical or similar projects. Such deduction shall be\nallowed only on condition that it does not exceed the amount of the\nexpenditures multiplied by the taxpayer's business allocation percentage\ndetermined under this subdivision for the year the expenditures are paid\nor incurred and that entire net income for the taxable year and all\nsucceeding taxable years be computed without the deduction of any such\nexpenditures and without any deduction for depreciation of the same\nproperty, except to the extent that its basis may be attributable to\nfactors other than such expenditures, or in case a deduction is\nallowable pursuant to this subparagraph for only a part of such\nexpenditures, on condition that any deduction allowed for federal income\ntax purposes on account of such expenditures or on account of\ndepreciation of the same property be proportionately reduced in\ncomputing entire net income for the taxable year and all succeeding\ntaxable years. With respect to property which is used or to be used for\nresearch and development only in part, or during only part of its useful\nlife, a proportionate part of such expenditures shall be deductible. If\nall or part of such expenditures with respect to any property shall have\nbeen deducted as provided herein, and such property is used for purposes\nother than research and development to a greater extent than originally\nreported, the taxpayer shall report such use in its report for the first\ntaxable year during which it occurs, and the tax commission may\nrecompute the tax for the year or years for which such deduction was\nallowed, and may assess any additional tax resulting from such\nrecomputation regardless of the time limitations set forth in section\nten hundred eighty-three of this chapter.\n (3) Such deductions shall be allowed only with respect to tangible\nproperty which is depreciable pursuant to section one hundred\nsixty-seven of the internal revenue code, having a situs in this state\nand used in the taxpayer's trade or business. The deductions provided\nfor in subparagraph one of this paragraph shall be allowed only with\nrespect to tangible property which is (A) constructed, reconstructed or\nerected after December thirty-first, nineteen hundred sixty-seven,\npursuant to a contract which was, on or before December thirty-first,\nnineteen hundred sixty-eight, and at all times thereafter, binding on\nthe taxpayer or, property, the physical construction, reconstruction or\nerection of which began on or before December thirty-first, nineteen\nhundred sixty-eight or which began after such date pursuant to an order\nplaced on or before December thirty-first, nineteen hundred sixty-eight,\nand then only with respect to that portion of the basis thereof or the\nexpenditures relating thereto which is properly attributable to such\nconstruction, reconstruction or erection after December thirty-first,\nninteen hundred sixty-three or (B) acquired after December thirty-first,\nnineteen hundred sixty-seven, pursuant to a contract which was, on or\nbefore December thirty-first, nineteen hundred sixty-eight, and at all\ntimes thereafter, binding on the taxpayer or pursuant to an order placed\non or before December thirty-first, nineteen hundred sixty-eight, by\npurchase as defined in section one hundred seventy-nine (d) of the\ninternal revenue code, if the original use of such property commenced\nwith the taxpayer, commenced in this state and commenced after December\nthirty-first, nineteen hundred sixty-seven, or (C) acquired,\nconstructed, reconstructed, or erected subsequent to December\nthirty-first, nineteen hundred sixty-eight, if such acquisition,\nconstruction, reconstruction or erection is pursuant to a plan of the\ntaxpayer which was in existence December thirty-first, nineteen hundred\nsixty-eight, and not thereafter substantially modified, and such\nacquisition, construction, reconstruction or erection would qualify\nunder the rules in paragraphs four, five or six of subsection (h) of\nsection forty-eight of the internal revenue code provided all references\nin such paragraphs four, five and six to the dates October nine,\nnineteen hundred sixty-six, and October ten, nineteen hundred sixty-six,\nshall be read as December thirty-first, nineteen hundred sixty-eight. A\ntaxpayer shall be allowed a deduction under clauses (A), (B) or (C) of\nthe preceding sentence of this subparagraph only if the tangible\nproperty shall be delivered or the construction, reconstruction or\nerection shall be completed on or before December thirty-first, nineteen\nhundred seventy, except in the case of tangible property which is\nacquired, constructed, reconstructed or erected pursuant to a contract\nwhich was, on or before December thirty-first, nineteen hundred\nsixty-eight, and at all times thereafter binding on the taxpayer. The\ndeduction provided for in subparagraph two of this paragraph shall be\nallowed only with respect to tangible property (A) the construction,\nreconstruction or erection of which is completed after December\nthirty-first, nineteen hundred sixty-seven, and then only with respect\nto that portion of the basis thereof or the expenditures relating\nthereto which is properly attributable to such construction,\nreconstruction or erection after December thirty-first, ninteen hundred\nsixty-three, or (B) acquired after December thirty-first, nineteen\nhundred sixty-seven by purchase as defined in section one hundred\nseventy-nine (d) of the internal revenue code, if the original use of\nsuch property commenced with the taxpayer, commenced in this state and\ncommenced after December thirty-first, nineteen hundred sixty-three.\nProvided, however, for any taxable year beginning on or after January\nfirst, nineteen hundred sixty-eight, a taxpayer shall not be allowed a\ndeduction under paragraph (e) hereof with respect to tangible personal\nproperty leased by it to any other person or corporation. For purposes\nof the preceding sentence, any contract or agreement to lease or rent or\nfor a license to use such property shall be considered a lease. With\nrespect to property which the taxpayer uses itself for purposes other\nthan leasing for part of a taxable year and leases for a part of a\ntaxable year, the taxpayer shall be allowed a deduction under paragraph\n(e) in proportion to the part of the year it uses such property.\n (4) A deduction under subparagraph one of this paragraph shall be\nallowed with respect to tangible property described in subparagraph\nthree only if such property is principally used by the taxpayer in the\nproduction of goods by manufacturing; processing; assembling; refining;\nmining; extracting; farming; agriculture; horticulture; floriculture;\nviticulture; or commercial fishing. For purposes of this subparagraph,\nmanufacturing shall mean the process of working raw materials into wares\nsuitable for use or which gives new shapes, new qualities or new\ncombinations to matter which already has gone through some artificial\nprocess by the use of machinery, tools, appliances and other similar\nequipment. Property used in the production of goods shall include\nmachinery, equipment or other tangible property which is principally\nused in the repair and service of other machinery, equipment or other\ntangible property used principally in the production of goods and shall\ninclude all facilities used in the manufacturing operation, including\nstorage of material to be used in manufacturing and of the products that\nare manufactured. At the option of the taxpayer, air and water pollution\ncontrol facilities which qualify for elective deductions under paragraph\n(g) of subdivision nine of section two hundred eight may be treated, for\npurposes of this paragraph, as tangible property principally used in the\nproduction of goods by manufacturing; processing; assembling; refining;\nmining; extracting; farming; agriculture; horticulture; floriculture;\nviticulture; or commercial fishing, in which event, a deduction shall\nnot be allowed under such paragraph (g).\n (5) Subject to the limitation imposed by subparagraphs one and two\nhereof, if the deductions allowable for any taxable year, pursuant to\nthis subdivision, exceed the portion of the taxpayer's entire net income\nallocated to this state for such year, the excess may be carried over to\nthe following taxable year or years and may be deducted from the portion\nof the taxpayer's entire net income allocated to this state for such\nyear or years; provided, however, that in no event shall such excess,\ninsofar as it reflects deductions taken with respect to items set forth\nin subparagraph two of this paragraph, be carried over to taxable years\ncommencing on or after January first, nineteen hundred ninety-four.\n (6) In any taxable year when property is sold or otherwise disposed\nof, with respect to which a deduction has been allowed pursuant to\nsubparagraph one or two of this paragraph, the gain or loss thereon\nentering into the computation of federal taxable income shall be\ndisregarded in computing entire net income, and there shall be added to\nor subtracted from the portion of entire net income allocated within the\nstate the gain or loss upon such sale or other disposition. In computing\nsuch gain or loss the basis of the property sold or disposed of shall be\nadjusted to reflect the deduction allowed with respect to such property\npursuant to subparagraph one or two of this paragraph. Provided,\nhowever, that no loss shall be recognized for the purposes of this\nsubparagraph with respect to a sale or other disposition of property to\na person whose acquisition thereof is not a purchase as defined in\nsection one hundred seventy-nine (d) of the internal revenue code.\n * NB Repealed January 1, 2015\n * 3. A corporation that is a partner in a partnership shall compute\ntax under this article using the aggregate method as defined in the\nregulations of the commissioner, unless another method for computing\nsuch tax is required or allowed by such regulations. Under the aggregate\nmethod, a corporation that is a partner in a partnership is viewed as\nhaving an undivided interest in the partnership's assets, liabilities,\nand items of receipts, income, gain, loss and deduction. Under the\naggregate method, the corporation that is a partner in a partnership is\ntreated as participating in the partnership's transactions and\nactivities.\n * NB Effective January 1, 2015\n * 3-a. The portion of the minimum taxable income of a taxpayer to be\nallocated within the state shall be determined as follows.\n (a) Multiply its alternative business income by an alternative\nbusiness allocation percentage determined pursuant to the method\nprescribed in subdivision three of this section except that for taxable\nyears beginning before nineteen hundred ninety-four the additional\npercentage (referred to in subparagraph four of paragraph (a) of such\nsubdivision) equal to the percentage determined under subparagraph two\nof paragraph (a) of such subdivision shall be disregarded and not added\ntogether with the other percentages, and except that the percentages\nemployed in such subdivision three shall be modified to reflect the\nfactors utilized in computing minimum taxable income, provided, however,\nthat a taxpayer principally engaged in the conduct of aviation (other\nthan air freight forwarders acting as principal and like indirect air\ncarriers) shall determine its alternative business allocation percentage\npursuant to the method prescribed in subparagraph seven of paragraph (a)\nof subdivision three of this section.\n (b) Multiply its alternative investment income by the investment\nallocation percentage determined pursuant to the method prescribed in\nsubdivision three of this section.\n (c) Add the products so obtained.\n (d) For purposes of this subdivision, subdivision six of this section\nshall not apply.\n (e) For purposes of this subdivision the following definitions shall\napply:\n (i) Alternative business income shall mean minimum taxable income\nminus alternative investment income.\n (ii) Alternative investment income shall mean the sum of investment\nincome as defined in subdivision six of section two hundred eight and\nthat portion of minimum taxable income which consists of income from\ninvestment capital and which is not included in entire net income.\n * NB Repealed January 1, 2015\n * 4. The portion of the business capital of a taxpayer to be allocated\nwithin the state shall be determined by multiplying the amount thereof\nby the business allocation percentage determined as hereinabove\nprovided. Provided, however, such business allocation percentage, for\npurposes of allocating business capital, shall (a) for taxable years\nbeginning before nineteen hundred ninety-four, be determined without\nregard to clause (D) of subparagraph seven of paragraph (a) of\nsubdivision three of this section and (b) for taxable years beginning\nafter nineteen hundred ninety-three shall be determined with regard to\nsuch clause (D) but only in the case of a taxpayer subject to the\nprovisions of paragraph (b) of subdivision seven of section two hundred\neight.\n * NB Repealed January 1, 2015\n * 5. The portion of the investment capital of a taxpayer to be\nallocated within the state shall be determined by multiplying the amount\nthereof by the investment allocation percentage determined as\nhereinabove provided.\n * NB Repealed January 1, 2015\n * 7. The portion of the subsidiary capital of a taxpayer to be\nallocated within the state shall be determined by (a) multiplying the\namount of its subsidiary capital invested in each subsidiary during the\nperiod covered by its report (or, in the case of any such capital so\ninvested during only a portion of such period, such portion of such\ncapital) by the issuer's allocation percentage, as defined in\nsubparagraph one of paragraph (b) of subdivision three of this section,\nof each such subsidiary and (b) adding together the sums so obtained.\n * NB Repealed January 1, 2015\n * 8. If it shall appear to the tax commission that any business or\ninvestment allocation percentage or alternative business allocation\npercentage determined as hereinabove provided does not properly reflect\nthe activity, business, income or capital of a taxpayer within the\nstate, the tax commission shall be authorized in its discretion, in the\ncase of a business allocation percentage or alternative business\nallocation percentage, to adjust it by (a) excluding one or more of the\nfactors therein, (b) including one or more other factors, such as\nexpenses, purchases, contract values (minus subcontract values), (c)\nexcluding one or more assets in computing such allocation percentage,\nprovided the income therefrom is also excluded in determining entire net\nincome or minimum taxable income, or (d) any other similar or different\nmethod calculated to effect a fair and proper allocation of the income\nand capital reasonably attributable to the state, and in the case of an\ninvestment allocation percentage, to adjust it by excluding one or more\nassets in computing such percentage provided the income therefrom is\nalso excluded in determining entire net income or minimum taxable\nincome.\n * NB Repealed January 1, 2015\n * 9. The tax commission from time to time shall publish all rulings of\ngeneral public interest with respect to any application of the\nprovisions of subdivision eight of this section.\n * NB Repealed January 1, 2015\n * 11. Eligible business facility credit. (a) On or after April first,\nnineteen hundred eighty-three, for taxable years beginning before\nJanuary first, two thousand, a credit against the tax imposed by this\narticle shall be allowed only to a taxpayer owning or operating an\neligible business facility where such taxpayer has received a\ncertificate of eligibility for tax credits, or a renewal or extension\nthereof, for such facility from the New York state job incentive board\nprior to April first, nineteen hundred eighty-three, or has received a\ncertificate of eligibility for tax credits, or a renewal or extension\nthereof, for such facility from the state tax commission subsequent to\nsuch date pursuant to paragraph (h) of this subdivision, and only with\nrespect to such facility, to be computed as hereinafter provided.\n (b) The amount of the credit allowable in any taxable year shall be\nthe sum determined by multiplying the tax otherwise due by a percentage\nto be determined by:\n (1) ascertaining the percentage which the total of eligible property\nvalues during the period covered by its report, as defined in paragraph\n(d) of this subdivision, bears to the average value of all the\ntaxpayer's real and tangible personal property except for inventory\nwithin the state during such period. For the purposes of this\nsubparagraph only, the taxpayer's real and tangible personal property\nshall include not only such property owned by the taxpayer but also\nproperty rented to it, and the value of rented property shall be deemed\nto be eight times the net annual rental rate, that is, the annual rental\nrate paid by the taxpayer less any annual rental rate received by the\ntaxpayer from subrentals.\n (2) ascertaining the percentage which the total wages, salaries and\nother personal service compensation during such period, of employees,\nexcept general executive officers, serving in jobs created or retained\nin an eligible area (as the term "eligible area" was defined by section\none hundred fifteen of the commerce law as it existed on March\nthirty-first, nineteen hundred eighty-three) by such business facility,\nbears to the total wages, salaries and other personal service\ncompensation, during such period, of all the taxpayer's employees within\nthe state, except general executive officers.\n (3) adding together the percentages so determined and dividing the\nresult by two; provided, however, that if no wages, salaries or other\npersonal service compensation were paid or incurred by the taxpayer\nduring such period to employees within the state other than general\nexecutive officers, subparagraph two shall be disregarded and the amount\nof credit allowable shall be determined by multiplying the tax otherwise\ndue by the percentage specified in subparagraph one.\n (c) In no event shall the credit herein provided for be allowed in an\namount which will reduce the tax payable to less than the higher of the\namounts prescribed by paragraphs (c) and (d) of subdivision one of this\nsection.\n (d) i. Eligible property values, for the purposes of this subdivision,\nshall include such part of the value of depreciable real and tangible\npersonal property included in an eligible business facility as\nrepresents:\n (1) expenditures paid or incurred by the taxpayer for capital\nimprovements consisting of the construction, reconstruction, erection or\nimprovement of real property included in an eligible business facility,\nwhich construction, reconstruction, erection or improvements were\ncommenced on or after July first, nineteen hundred sixty-eight;\n (2) in the case of real property leased by the taxpayer from another\nparty, eight times the portion of the net annual rental rate\nattributable to such expenditures paid or incurred by the lessor for\nsuch construction, reconstruction, erection or improvement commenced on\nor after July first, nineteen hundred sixty-eight;\n (3) expenditures paid or incurred by the taxpayer for the purchase of\ntangible personal property, other than vehicles, included in an eligible\nbusiness facility, provided such property was purchased on or after July\nfirst, nineteen hundred sixty-eight; and\n (4) in the case of tangible personal property, other than vehicles,\nleased by the taxpayer from another party and included in an eligible\nbusiness facility, eight times the net annual rental rate, provided the\nperiod for which such property was leased by the taxpayer began on or\nafter July first, nineteen hundred sixty-eight.\n ii. Provided, however, eligible property values for purposes of this\nsubdivision shall not include expenditures paid or incurred more than\none year prior to the filing of an application for a certificate of\neligibility pursuant to section one hundred nineteen of the commerce\nlaw, as such section existed on March thirty-first, nineteen hundred\neighty-three.\n (e) The total of all credits allowed pursuant to this subdivision in\nany taxable year or years with reference to any eligible business\nfacility shall not exceed the total eligible property values included in\nsuch facility.\n (f) If a credit is allowed for any taxable year as herein provided on\nthe basis of a certificate of eligibility, and if such certificate is\nrevoked or modified, the taxpayer shall report such revocation or\nmodification in its report for the taxable year during which it occurs,\nand the tax commission shall recompute such credit and may assess any\nadditional tax resulting from such recomputation within the time fixed\nby paragraph eight of subsection (c) of section ten hundred eighty-three\nof this chapter.\n (g) If a business facility owned or operated by a taxpayer shall be an\neligible business facility for only part of a taxable year, the credit\notherwise allowed by this subdivision shall be prorated according to the\nperiod such facility was an eligible business facility, and if the total\nof the eligible property values shall have changed during any taxable\nyear, a pro-rata adjustment shall be made in computing such credit.\n (h) The state tax commission shall be empowered, on or after April\nfirst, nineteen hundred eighty-three, to issue a certificate of\neligibility for tax credits to a taxpayer for an eligible business\nfacility with regard to which such taxpayer has, prior to July first,\nnineteen hundred eighty-three, received from the New York state job\nincentive board initial approval of an application for such certificate\nby such board as evidenced by the minutes of the meeting of the board at\nwhich such application was approved, or a letter of intent authorized by\nsection 102.4 of part one hundred two of title five of the codes, rules\nand regulations of the state of New York regarding such certificate of\neligibility and to renew, extend, revoke or modify a certificate of\neligibility for tax credits, pursuant to section one hundred twenty of\nthe commerce law as such section existed on March thirty-first, nineteen\nhundred eighty-three.\n (i) For purposes of the requirement for eligibility for the credit\nallowed under this subdivision that a business facility create or retain\nnot less than five jobs as provided in subdivision (c) of section one\nhundred eighteen of the commerce law as such section existed on March\nthirty-first, nineteen hundred eighty-three, a business facility shall\nhave (1) created not less than five jobs only if the number of jobs for\nthe taxable year exceeds the number of jobs at the time of the\ncommencement of the project as stated on its application for initial\napproval by five or more; or (2) retained not less than five jobs only\nif initial approval was based on the retention of five or more jobs and\n(A) the number of jobs for the taxable year is at least equal to the\nnumber of jobs at the time of the commencement of the project as stated\non its application for initial approval or (B) where initial approval\nwas based on the retention of fewer jobs than the number of jobs at the\ntime of the commencement of the project as stated on its application for\ninitial approval, the number of jobs for the taxable year is at least\nequal to the number approved for retention. For purposes of this\nparagraph, the phrase "initial approval was based on the retention of\nfive or more jobs" shall mean that such initial approval was given by\nthe job incentive board to an applicant that had not stated in its\napplication for initial approval that it would increase the number of\njobs at its facility by at least five.\n * NB Repealed January 1, 2015\n * 12. Investment tax credit (ITC). (a) A taxpayer shall be allowed a\ncredit, to be computed as hereinafter provided, against the tax imposed\nby this article. The amount of the credit shall be the per cent provided\nfor hereinbelow of the investment credit base. The investment credit\nbase is the cost or other basis for federal income tax purposes of\ntangible personal property and other tangible property, including\nbuildings and structural components of buildings, described in paragraph\n(b) of this subdivision, less the amount of the nonqualified nonrecourse\nfinancing with respect to such property to the extent such financing\nwould be excludible from the credit base pursuant to section 46(c)(8) of\nthe internal revenue code (treating such property as section\nthirty-eight property irrespective of whether or not it in fact\nconstitutes section thirty-eight property). If, at the close of a\ntaxable year following the taxable year in which such property was\nplaced in service, there is a net decrease in the amount of nonqualified\nnonrecourse financing with respect to such property, such net decrease\nshall be treated as if it were the cost or other basis of property\ndescribed in paragraph (b) of this subdivision acquired, constructed,\nreconstructed or erected during the year of the decrease in the amount\nof nonqualified nonrecourse financing. In the case of a combined report\nthe term investment credit base shall mean the sum of the investment\ncredit base of each corporation included on such report. The percentage\nto be used to compute the credit allowed pursuant to this subdivision\nshall be that percentage appearing in column two which is opposite the\nappropriate period in column one in which the tangible personal property\nwas acquired, constructed, reconstructed or erected, as the case may be:\n Column 1 Column 2\nAfter December 31, 1968 and\n prior to January 1, 1974 one per cent\nAfter December 31, 1973 and\n prior to January 1, 1978 two per cent\nAfter December 31, 1977 and\n prior to January 1, 1979 three per cent\nAfter December 31, 1978 and\n prior to June 1, 1981 four per cent\nAfter May 31, 1981 and\n prior to July 1, 1982 five per cent\nAfter June 30, 1982 and\n prior to January 1, 1987 six per cent\nFor taxable years beginning\n in 1987, 1988 and 1989 five per cent with respect\n to the first five hundred\n million dollars of the\n investment credit base, and\n four percent with respect to\n the investment credit base in\n excess of five hundred million\n dollars, except that in the case\n of research and development\n property at the option of the\n taxpayer the applicable per-\n centage shall be nine\nFor taxable years beginning\n in 1990 five percent with respect to the\n first four hundred twenty-five\n million dollars of the investment\n credit base, and four percent\n with respect to the investment\n credit base in excess of four\n hundred twenty-five million\n dollars, except that in the\n case of research and\n development property at the\n option of the taxpayer the\n applicable percentage shall\n be nine\nFor taxable years beginning\n after 1990 five percent with respect to\n the first three hundred fifty\n million dollars of the invest-\n ment credit base, and four percent\n with respect to the investment\n credit base in excess of three\n hundred fifty million dollars,\n except that in the case of\n research and development\n property at the option of the\n taxpayer the applicable\n percentage shall be nine\nProvided, however, that in the case of an acquisition, construction,\nreconstruction or erection which was commenced in any one period and\ncontinued or completed in any subsequent period the credit shall be the\nsum of the portions of the investment credit base attributable to each\nsuch period, which portion with respect to each such period shall be\nascertained by multiplying such investment credit base by a fraction the\nnumerator of which shall be the expenditures paid or incurred during\nsuch period for such purposes and the denominator of which shall be the\ntotal of all expenditures paid or incurred for such acquisition,\nconstruction, reconstruction or erection, multiplied by the allowable\npercentage for each such period.\n (b) (i) A credit shall be allowed under this subdivision with respect\nto tangible personal property and other tangible property, including\nbuildings and structural components of buildings, which are: depreciable\npursuant to section one hundred sixty-seven of the internal revenue\ncode, have a useful life of four years or more, are acquired by purchase\nas defined in section one hundred seventy-nine (d) of the internal\nrevenue code, have a situs in this state and are (A) principally used by\nthe taxpayer in the production of goods by manufacturing, processing,\nassembling, refining, mining, extracting, farming, agriculture,\nhorticulture, floriculture, viticulture or commercial fishing, (B)\nindustrial waste treatment facilities or air pollution control\nfacilities, used in the taxpayer's trade or business, (C) research and\ndevelopment property, (D) principally used in the ordinary course of the\ntaxpayer's trade or business as a broker or dealer in connection with\nthe purchase or sale (which shall include but not be limited to the\nissuance, entering into, assumption, offset, assignment, termination, or\ntransfer) of stocks, bonds or other securities as defined in section\nfour hundred seventy-five (c)(2) of the Internal Revenue Code, or of\ncommodities as defined in section four hundred seventy-five (e) of the\nInternal Revenue Code, (E) principally used in the ordinary course of\nthe taxpayer's trade or business of providing investment advisory\nservices for a regulated investment company as defined in section eight\nhundred fifty-one of the Internal Revenue Code, or lending, loan\narrangement or loan origination services to customers in connection with\nthe purchase or sale (which shall include but not be limited to the\nissuance, entering into, assumption, offset, assignment, termination, or\ntransfer) of securities as defined in section four hundred seventy-five\n(c)(2) of the Internal Revenue Code, (F) principally used in the\nordinary course of the taxpayer's business as an exchange registered as\na national securities exchange within the meaning of sections 3(a)(1)\nand 6(a) of the Securities Exchange Act of 1934 or a board of trade as\ndefined in section 1410(a)(1) of the New York Not-for-Profit Corporation\nLaw or as an entity that is wholly owned by one or more such national\nsecurities exchanges or boards of trade and that provides automation or\ntechnical services thereto, or (G) principally used as a qualified film\nproduction facility including qualified film production facilities\nhaving a situs in an empire zone designated as such pursuant to article\neighteen-B of the general municipal law, where the taxpayer is providing\nthree or more services to any qualified film production company using\nthe facility, including such services as a studio lighting grid,\nlighting and grip equipment, multi-line phone service, broadband\ninformation technology access, industrial scale electrical capacity,\nfood services, security services, and heating, ventilation and air\nconditioning. For purposes of clauses (D), (E) and (F) of this\nsubparagraph, property purchased by a taxpayer affiliated with a\nregulated broker, dealer, registered investment adviser, national\nsecurities exchange or board of trade, is allowed a credit under this\nsubdivision if the property is used by its affiliated regulated broker,\ndealer, registered investment adviser, national securities exchange or\nboard of trade in accordance with this subdivision. For purposes of\ndetermining if the property is principally used in qualifying uses, the\nuses by the taxpayer described in clauses (D) and (E) of this\nsubparagraph may be aggregated. In addition, the uses by the taxpayer,\nits affiliated regulated broker, dealer, and registered investment\nadviser under either or both of those clauses may be aggregated.\nProvided, however, a taxpayer shall not be allowed the credit provided\nby clauses (D), (E) and (F) of this subparagraph unless (I) eighty\npercent or more of the employees performing the administrative and\nsupport functions resulting from or related to the qualifying uses of\nsuch equipment are located in this state or (II) the average number of\nemployees that perform the administrative and support functions\nresulting from or related to the qualifying uses of such equipment and\nare located in this state during the taxable year for which the credit\nis claimed is equal to or greater than ninety-five percent of the\naverage number of employees that perform these functions and are located\nin this state during the thirty-six months immediately preceding the\nyear for which the credit is claimed, or (III) the number of employees\nlocated in this state during the taxable year for which the credit is\nclaimed is equal to or greater than ninety percent of the number of\nemployees located in this state on December thirty-first, nineteen\nhundred ninety-eight or, if the taxpayer was not a calendar year\ntaxpayer in nineteen hundred ninety-eight, the last day of its first\ntaxable year ending after December thirty-first, nineteen hundred\nninety-eight. If the taxpayer becomes subject to tax in this state after\nthe taxable year beginning in nineteen hundred ninety-eight, then the\ntaxpayer is not required to satisfy the employment test provided in the\npreceding sentence of this subparagraph for its first taxable year. For\npurposes of clause (III) of this subparagraph the employment test will\nbe based on the number of employees located in this state on the last\nday of the first taxable year the taxpayer is subject to tax in this\nstate. If the uses of the property must be aggregated to determine\nwhether the property is principally used in qualifying uses, then either\neach affiliate using the property must satisfy this employment test or\nthis employment test must be satisfied through the aggregation of the\nemployees of the taxpayer, its affiliated regulated broker, dealer, and\nregistered investment adviser using the property. For purposes of this\nsubdivision, the term "goods" shall not include electricity.\n (ii) For purposes of this paragraph, the following definitions shall\napply--\n (A) Manufacturing shall mean the process of working raw materials into\nwares suitable for use or which gives new shapes, new quality or new\ncombinations to matter which already has gone through some artificial\nprocess by the use of machinery, tools, appliances and other similar\nequipment. Property used in the production of goods shall include\nmachinery, equipment or other tangible property which is principally\nused in the repair and service of other machinery, equipment or other\ntangible property used principally in the production of goods and shall\ninclude all facilities used in the production operation, including\nstorage of material to be used in production and of the products that\nare produced.\n (B) Research and development property shall mean property which is\nused for purposes of research and development in the experimental or\nlaboratory sense. Such purposes shall not be deemed to include the\nordinary testing or inspection of materials or products for quality\ncontrol, efficiency surveys, management studies, consumer surveys,\nadvertising, promotions, or research in connection with literary,\nhistorical or similar projects.\n (C) Industrial waste treatment facilities shall mean property\nconstituting facilities for the treatment, neutralization or\nstabilization of industrial waste and other wastes (as the terms\n"industrial waste" and "other wastes" are defined in section 17-0105 of\nthe environmental conservation law) from a point immediately preceding\nthe point of such treatment, neutralization or stabilization to the\npoint of disposal, including the necessary pumping and transmitting\nfacilities, but excluding such facilities installed for the primary\npurpose of salvaging materials which are usable in the manufacturing\nprocess or are marketable.\n (D) Air pollution control facilities shall mean property constituting\nfacilities which remove, reduce, or render less noxious air contaminants\nemitted from an air contamination source (as the terms "air contaminant"\nand "air contamination source" are defined in section 19-0107 of the\nenvironmental conservation law) from a point immediately preceding the\npoint of such removal, reduction or rendering to the point of discharge\nof air, meeting emission standards as established by the department of\nenvironmental conservation, but excluding such facilities installed for\nthe primary purpose of salvaging materials which are usable in the\nmanufacturing process or are marketable and excluding those facilities\nwhich rely for their efficacy on dilution, dispersion or assimilation of\nair contaminants in the ambient air after emission. Such term shall\nfurther include flue gas desulfurization equipment and attendant sludge\ndisposal facilities, fluidized bed boilers, precombustion coal cleaning\nfacilities or other facilities that conform with this subdivision and\nwhich comply with the provisions of the state acid deposition control\nact set forth in title nine of article nineteen of the environmental\nconservation law.\n (E) The terms "qualified film production facility" and "qualified film\nproduction company" shall have the same meaning as in section\ntwenty-four of this chapter.\n (iii) However, such credit shall be allowed with respect to industrial\nwaste treatment facilities and air pollution control facilities only on\ncondition that such facilities have been certified by the state\ncommissioner of environmental conservation or his designated\nrepresentative, pursuant to subdivision one of section 17-0707 or\nsubdivision one of section 19-0309 of the environmental conservation\nlaw, as complying with applicable provisions of the environmental\nconservation law, the public health law, the state sanitary code and\ncodes, rules, regulations, permits or orders issued pursuant thereto.\n (c) A taxpayer shall not be allowed a credit under this subdivision\nwith respect to any property described in clause (A) of subparagraph (i)\nof paragraph (b) hereof if such property qualifies for the deduction\nallowed under either subparagraph three of paragraph (d) or paragraph\n(e) of subdivision three of this section whether or not such amount\nshall have been deducted. Provided, however, with respect to property\nwhich qualifies for a deduction under either clause (A), (B) or (C) of\nsubparagraph three of paragraph (e) because such property was ordered on\nor before December thirty-first, nineteen hundred sixty-eight, but with\nrespect to which no expenditure has been paid or incurred at such date,\nthe taxpayer may elect to deduct the amount allowable under clauses (A),\n(B) or (C) or may take the credit provided by this subdivision, but not\nboth.\n (d) A taxpayer shall not be allowed a credit under this subdivision\nwith respect to tangible personal property and other tangible property,\nincluding buildings and structural components of buildings, which it\nleases to any other person or corporation except where a taxpayer leases\nproperty to an affiliated regulated broker, dealer, registered\ninvestment adviser, national securities exchange or board of trade (or\nother entity described in clause (F) of subparagraph (i) of paragraph\n(b) of this subdivision) that uses such property in accordance with\nclause (D), (E) or (F) of subparagraph (i) of paragraph (b) of this\nsubdivision. For purposes of the preceding sentence, any contract or\nagreement to lease or rent or for a license to use such property shall\nbe considered a lease. Provided, however, in determining whether a\ntaxpayer shall be allowed a credit under this subdivision with respect\nto such property, any election made with respect to such property\npursuant to the provisions of paragraph eight of subsection (f) of\nsection one hundred sixty-eight of the internal revenue code, as such\nparagraph was in effect for agreements entered into prior to January\nfirst, nineteen hundred eighty-four, shall be disregarded. For purposes\nof this paragraph, the use of a qualified film production facility by a\nqualified film production company shall not be considered a lease of\nsuch facility to such company.\n (e) Except as otherwise provided in this paragraph, the credit allowed\nunder this subdivision for any taxable year shall not reduce the tax due\nfor such year to less than the higher of the amounts prescribed in\nparagraphs (c) and (d) of subdivision one of this section. However, if\nthe amount of credit allowable under this subdivision for any taxable\nyear reduces the tax to such amount, any amount of credit allowed for a\ntaxable year commencing prior to January first, nineteen hundred\neighty-seven and not deductible in such taxable year may be carried over\nto the following year or years and may be deducted from the taxpayer's\ntax for such year or years but in no event shall such credit be carried\nover to taxable years commencing on or after January first, two thousand\ntwo, and any amount of credit allowed for a taxable year commencing on\nor after January first, nineteen hundred eighty-seven and not deductible\nin such year may be carried over to the fifteen taxable years next\nfollowing such taxable year and may be deducted from the taxpayer's tax\nfor such year or years. In lieu of such carryover, any such taxpayer\nwhich qualifies as a new business under paragraph (j) of this\nsubdivision may elect to treat the amount of such carryover as an\noverpayment of tax to be credited or refunded in accordance with the\nprovisions of section ten hundred eighty-six of this chapter, provided,\nhowever, the provisions of subsection (c) of section ten hundred\neighty-eight of this chapter notwithstanding, no interest shall be paid\nthereon.\n (f) At the option of the taxpayer an eligible business facility for\nwhich a credit is allowed under subdivision eleven of this section, or,\nfor taxable years commencing prior to January first, nineteen hundred\neighty-seven, air or water pollution control or controlled process\nfacilities which qualify for elective deductions under paragraph (g) of\nsubdivision nine of section two hundred eight, or research and\ndevelopment facilities which qualify for elective deduction under\nsubparagraphs two and three of paragraph (e) of subdivision three of\nthis section may be treated as property principally used by the taxpayer\nin the production of goods by manufacturing, processing, assembling,\nrefining, mining, extracting, farming, agriculture, horticulture,\nfloriculture, viticulture or commercial fishing, provided the property\notherwise qualifies under paragraph (b) of this subdivision, in which\nevent, a deduction shall not be allowed under such paragraph (g), a\ncredit shall not be allowed under such subdivision eleven and a\ndeduction shall not be allowed under such subparagraph three of\nparagraph (e).\n (g) (1) With respect to property which is depreciable pursuant to\nsection one hundred sixty-seven of the internal revenue code but is not\nsubject to the provisions of section one hundred sixty-eight of such\ncode and which is disposed of or ceases to be in qualified use prior to\nthe end of the taxable year in which the credit is to be taken, the\namount of the credit shall be that portion of the credit provided for in\nthis subdivision which represents the ratio which the months of\nqualified use bear to the months of useful life. If property on which\ncredit has been taken is disposed of or ceases to be in qualified use\nprior to the end of its useful life, the difference between the credit\ntaken and the credit allowed for actual use must be added back in the\nyear of disposition. Provided, however, if such property is disposed of\nor ceases to be in qualified use after it has been in qualified use for\nmore than twelve consecutive years, it shall not be necessary to add\nback the credit as provided in this subparagraph. The amount of credit\nallowed for actual use shall be determined by multiplying the original\ncredit by the ratio which the months of qualified use bear to the months\nof useful life. For purposes of this subparagraph, useful life of\nproperty shall be the same as the taxpayer uses for depreciation\npurposes when computing his federal income tax liability.\n (2) Except with respect to that property to which subparagraph four of\nthis paragraph applies, with respect to three-year property, as defined\nin subsection (e) of section one hundred sixty-eight of the internal\nrevenue code, which is disposed of or ceases to be in qualified use\nprior to the end of the taxable year in which the credit is to be taken,\nthe amount of the credit shall be that portion of the credit provided\nfor in this subdivision which represents the ratio which the months of\nqualified use bear to thirty-six. If property on which credit has been\ntaken is disposed of or ceases to be in qualified use prior to the end\nof thirty-six months, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. The amount of credit allowed for actual use shall be\ndetermined by multiplying the original credit by the ratio which the\nmonths of qualified use bear to thirty-six.\n (3) Except with respect to that property to which subparagraph four of\nthis paragraph applies, with respect to property subject to the\nprovisions of section one hundred sixty-eight of the internal revenue\ncode, other than three-year property as defined in subsection (e) of\nsuch section one hundred sixty-eight which is disposed of or ceases to\nbe in qualified use prior to the end of the taxable year in which the\ncredit is to be taken, the amount of the credit shall be that portion of\nthe credit provided for in this subdivision which represents the ratio\nwhich the months of qualified use bear to sixty. If property on which\ncredit has been taken is disposed of or ceases to be in qualified use\nprior to the end of sixty months, the difference between the credit\ntaken and the credit allowed for actual use must be added back in the\nyear of disposition. The amount of credit allowed for actual use shall\nbe determined by multiplying the original credit by the ratio which the\nmonths of qualified use bear to sixty.\n (4) With respect to any property to which section one hundred\nsixty-eight of the internal revenue code applies, which is a building or\na structural component of a building and which is disposed of or ceases\nto be in qualified use prior to the end of the taxable year in which the\ncredit is to be taken, the amount of the credit shall be that portion of\nthe credit provided for in this subdivision which represents the ratio\nwhich the months of qualified use bear to the total number of months\nover which the taxpayer chooses to deduct the property under the\ninternal revenue code. If property on which credit has been taken is\ndisposed of or ceases to be in qualified use prior to the end of the\nperiod over which the taxpayer chooses to deduct the property under the\ninternal revenue code, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. Provided, however, if such property is disposed of or\nceases to be in qualified use after it has been in qualified use for\nmore than twelve consecutive years, it shall not be necessary to add\nback the credit as provided in this subparagraph. The amount of credit\nallowed for actual use shall be determined by multiplying the original\ncredit by the ratio which the months of qualified use bear to the total\nnumber of months over which the taxpayer chooses to deduct the property\nunder the internal revenue code.\n (5) For purposes of this paragraph, property (i) which is described in\nsubparagraph two, three or four of this paragraph, and (ii) which is\nsubject to subparagraph eleven of paragraph (a) of subdivision nine and\nsubparagraph ten of paragraph (b) of subdivision nine of section two\nhundred eight of this chapter, shall be treated as property which is\ndepreciable pursuant to section one hundred sixty-seven of the internal\nrevenue code but is not subject to section one hundred sixty-eight of\nsuch code.\n (6) For purposes of this paragraph, where a credit is allowed with\nrespect to an air pollution control facility on the basis of a\ncertificate of compliance issued pursuant to the environmental\nconservation law and the certificate is revoked pursuant to subdivision\nthree of section 19-0309 of the environmental conservation law, such\nrevocation shall constitute a disposal or cessation of qualified use,\nunless such facility is described in clause (A) or (C) of subparagraph\n(ii) of paragraph (b) of this subdivision. Also for purposes of this\nsubparagraph, the use of an air pollution control facility or an\nindustrial waste treatment facility for the primary purpose of salvaging\nmaterials which are usable in the manufacturing process or are\nmarketable shall constitute a cessation of qualified use, unless such\nfacility is described in clause (A) or (C) of subparagraph (ii) of\nparagraph (b) of this subdivision.\n (7) For taxable years commencing on or after January first, nineteen\nhundred eighty-seven, the amount required to be added back pursuant to\nthis paragraph shall be augmented by an amount equal to the product of\nsuch amount and the underpayment rate of interest (without regard to\ncompounding), set by the commissioner of taxation and finance pursuant\nto subsection (e) of section one thousand ninety-six, in effect on the\nlast day of the taxable year.\n (8) If, as of the close of the taxable year, there is a net increase\nwith respect to the taxpayer in the amount of nonqualified nonrecourse\nfinancing (within the meaning of section 46(c) (8) of the internal\nrevenue code) with respect to any property with respect to which the\ncredit under this subdivision was limited based on attributable\nnonqualified nonrecourse financing, then an amount equal to the decrease\nin such credit which would have resulted from reducing, by the amount of\nsuch net increase, the cost or other basis taken into account with\nrespect to such property must be added back in such taxable year. The\namount of nonqualified nonrecourse financing shall not be treated as\nincreased by reason of a transfer of (or agreement to transfer) any\nevidence of an indebtedness if such transfer occurs (or such agreement\nis entered into) more than one year after the date such indebtedness was\nincurred.\n (11) (A) Where property with respect to which credit has been allowed\nunder this subdivision is disposed of by transfer to the taxpayer in a\nqualified transaction, and such disposition requires, pursuant to this\nparagraph (without regard to this subparagraph) that such credit be\ndecreased (where the disposition occurs in the taxable year in which the\nproperty is placed in service by the transferor) or that a portion of\nsuch credit be added back by the transferor, then clause (B) or clause\n(C) of this subparagraph shall apply.\n (B) If the taxpayer and the transferor jointly elect, at such time and\nin such manner as the commissioner may prescribe, the following shall\napply:\n (i) such portion shall not be required to be added back by the\ntransferor,\n (ii) the amount of unused credit shall not be deducted from tax\notherwise due by the transferor on any return (including an amended\nreturn), and shall not be so deducted as part of any audit adjustment or\nany other determination, and\n (iii) the amount of unused credit shall be treated as an amount of\ncredit of the taxpayer under this subdivision carried forward by the\ntaxpayer to its taxable year in which such transfer occurred, as if the\ncredit allowed to the transferor with respect to such property had\noriginally been allowed to the taxpayer both as to amount and first date\nof qualified use, and as if the period of qualified use by the\ntransferor prior to the transfer had been a period of such use by the\ntaxpayer. Any amount of credit treated as carried forward to the taxable\nyear pursuant to this subparagraph shall be applied as provided in\nclause (H) of this subparagraph.\n (C) If the taxpayer and the transferor do not make the election\ndescribed in clause (B) of this subparagraph, then the amount of credit\nrequired pursuant to this paragraph to be added back by the transferor\nshall be treated as an amount of credit of the taxpayer under this\nsubdivision to be carried forward by the taxpayer to its taxable year in\nwhich such transfer occurred, as if the credit allowed to the transferor\nwith respect to such property had originally been allowed to the\ntaxpayer both as to amount and first date of qualified use, and as if\nthe period of qualified use by the transferor prior to the transfer had\nbeen a period of such use by the taxpayer. Any amount of credit treated\nas carried forward to the taxable year pursuant to this subparagraph\nshall be applied as provided in clause (H) of this subparagraph.\n (D) The term "qualified transaction" shall mean a transaction which is\na reorganization described in section 368(a)(1)(D) of the internal\nrevenue code, wherein (i) substantially all of the assets of the\ntransferor necessary to continue the operation of a division or\ndivisions of the transferor are transferred to the taxpayer in a\ntransaction to which section 351 of such code applies, and (ii) stock or\nsecurities of the taxpayer held by the transferor are distributed\npursuant to section 355 of such code.\n (E) The term "unused credit" shall mean the amount of credit shown as\ncarried forward to the transaction year on the transferor's tax return\nfor its taxable year immediately preceding the transaction year with\nrespect to the property described in clause (A) of this subparagraph.\n (F) The term "transaction year" means the taxable year in which the\nqualified transaction occurs.\n (G) Notwithstanding any other provision of law to the contrary, in the\ncase of allowance of credit pursuant to this subparagraph to a taxpayer\nthe commissioner shall have the authority to reveal to the taxpayer any\ninformation, with respect to the credit of the transferor, which is the\nbasis for the denial in whole or in part of the credit claimed by such\ntaxpayer.\n (H) Where a credit is allowed to a taxpayer pursuant to this\nsubparagraph, the taxpayer may treat the amount of such credit as an\noverpayment of tax to be credited or refunded in accordance with the\nprovisions of section ten hundred eighty-six of this chapter, provided,\nhowever, the provisions of subsection (c) of section ten hundred\neighty-eight of this chapter notwithstanding, no interest shall be paid\nthereon. Such credit shall be allowed against the tax imposed by this\narticle with respect to the second succeeding taxable year next\nfollowing the transaction year, provided that not more than one-fourth\nof the amount of such credit may be applied by the taxpayer, whether to\nreduce tax otherwise due or to be treated as an overpayment to be\ncredited or refunded, with respect to such second succeeding taxable\nyear and each of the next three taxable years following such second\nsucceeding taxable year.\n (j) For purposes of paragraph (e) of this subdivision, a new business\nshall include any corporation, except a corporation which:\n (1) over fifty percent of the number of shares of stock entitling the\nholders thereof to vote for the election of directors or trustees is\nowned or controlled, either directly or indirectly, by a taxpayer\nsubject to tax under this article; section one hundred eighty-three, one\nhundred eighty-four or one hundred eighty-five of article nine; article\nthirty-two or thirty-three of this chapter; or\n (2) is substantially similar in operation and in ownership to a\nbusiness entity (or entities) taxable, or previously taxable, under this\narticle; section one hundred eighty-three, one hundred eighty-four, one\nhundred eighty-five or one hundred eighty-six of article nine; article\nthirty-two or thirty-three of this chapter; article twenty-three of this\nchapter or which would have been subject to tax under such article\ntwenty-three (as such article was in effect on January first, nineteen\nhundred eighty) or the income (or losses) of which is (or was)\nincludable under article twenty-two of this chapter whereby the intent\nand purpose of this paragraph and paragraph (e) of this subdivision with\nrespect to refunding of credit to new business would be evaded; or\n (3) has been subject to tax under this article for more than five\ntaxable years (excluding short taxable years).\n (k) Retail enterprise tax credit. A retail enterprise not eligible for\nthe credit under paragraph (a) of this subdivision, but eligible for the\ncredit provided for under section thirty-eight of the internal revenue\ncode pursuant solely to the provisions of subparagraph (E) of paragraph\none of subsection (a) of section forty-eight of such code, shall be\nallowed a credit as hereinafter computed. The amount of the credit shall\nbe the percentage appearing in paragraph (a) of this subdivision for the\nperiods described therein for the amount of qualified rehabilitation\nexpenditures, as defined in subsection (g) of section forty-eight of\nsuch code, paid or incurred with respect to a qualified rehabilitated\nbuilding, as defined in such subsection (g), located in this state and\nsuch expenditures shall further be limited to only the portion thereof\npaid or incurred with respect to that part of a qualified rehabilitated\nbuilding employed by such taxpayer in the retail sales activity of such\nretail enterprise. For the purposes of this subdivision, the term\n"retail enterprise" means a taxpayer which is: (i) a registered vendor\nunder article twenty-eight of this chapter, (ii) primarily engaged in\nthe retail sale, as the term "retail sale" is defined in subparagraph\n(i) of paragraph four of subdivision (b) of section eleven hundred one\nof this chapter, of tangible personal property, and (iii) otherwise\neligible for the credit allowed pursuant to section thirty-eight of the\ninternal revenue code.\n (l) Rehabilitation credit for historic barns. A taxpayer shall be\nallowed a credit, to be computed as hereinafter provided, against the\ntax imposed by this article. The amount of the credit shall be\ntwenty-five percent of the taxpayer's qualified rehabilitation\nexpenditures, as defined in paragraph two of subsection (c) of section\nforty-seven of the internal revenue code, which qualify as the basis for\nthe credit provided for under paragraph one of subsection (b) of section\nthirty-eight of such code by reason of subsection one of section\nforty-six of such code, paid or incurred with respect to any barn\nlocated in this state which is a qualified rehabilitated building, as\nsuch term is defined in paragraph one of subsection (c) of such section\nforty-seven. For purposes of this paragraph, the term "barn" means a\nbuilding originally designed and used for storing farm equipment or\nagricultural products, or for housing livestock. Provided, however, such\nqualified rehabilitation expenditures shall not include any such\nexpenditures which are included, directly or indirectly, in the\ncomputation of a credit claimed by the taxpayer pursuant to paragraph\n(a) of this subdivision. Provided further that no rehabilitation credit\nshall be allowed for any rehabilitation that converts such barn to a\nresidential purpose, nor shall a rehabilitation credit be allowed for\nany rehabilitation that materially alters the historic appearance of the\nbarn.\n (m)(1)(i) If a taxpayer is required by paragraph (g) of this\nsubdivision to add back a portion of the credit taken because property\nwas destroyed or ceased to be in qualified use as a direct result of the\nSeptember eleventh, two thousand one terrorist attacks, such taxpayer\nmay elect to defer the amount to be recaptured for all such property to\nthe taxable year next succeeding the taxable year in which the\ndestruction or cessation of qualified use occurred. The taxable year in\nwhich the destruction or cessation of qualified use occurred shall be\nhereinafter referred to as the "recapture event taxable year". If the\ntaxpayer's total employment number in the state on the last day of the\ntaxable year next succeeding the recapture event taxable year is a\nsignificant percentage of the taxpayer's average total employment number\nin the state for the taxpayer's recapture event taxable year and the two\ntaxable years immediately preceding the recapture event taxable year,\nthen the taxpayer shall not be required to recapture any credit with\nrespect to such property. If the taxpayer's total employment number in\nthe state on the last day of the taxable year next succeeding the\nrecapture event taxable year is not a significant percentage of the\ntaxpayer's average total employment number in the state for the\nrecapture event taxable year and the two taxable years immediately\npreceding the recapture event taxable year, the taxpayer shall be\nrequired to recapture the portion of the credit taken under this\nsubdivision, as required by paragraph (g) of this subdivision, for all\nof its property destroyed or which ceased to be in qualified use as a\ndirect result of the September eleventh, two thousand one terrorist\nattacks. The amount required to be recaptured shall be augmented as\nrequired pursuant to subparagraph seven of paragraph (g) of this\nsubdivision by using an interest rate equal to two times the rate of\ninterest specified in such subparagraph seven applicable for the taxable\nyear in which the recapture occurs.\n (ii) The taxpayer's total employment number shall include all\nemployees of the taxpayer employed full-time by the taxpayer in the\nstate. The average total employment number for the recapture event\ntaxable year and the two taxable years immediately preceding the\nrecapture event taxable year shall be computed by determining the\ntaxpayer's total employment number on the thirty-first day of March, the\nthirtieth day of June, the thirtieth day of September and the\nthirty-first day of December during the applicable taxable years, adding\ntogether the number of such individuals determined to be so employed on\neach of such dates and dividing the sum so obtained by the number of\nsuch dates occurring within such applicable taxable years. However, in\nthe case of the taxable year which included September eleventh, two\nthousand one, the average total employment number for such taxable year\nshall be determined by using the total employment number on September\nfirst, two thousand one in lieu of September thirtieth, two thousand one\nand, if such taxable year included December thirty-first, two thousand\none, by excluding the total employment number on December thirty-first,\ntwo thousand one.\n (2) In lieu of subparagraph one of this paragraph, a taxpayer may\nelect to recapture the portion of the credit taken under this\nsubdivision, as required by paragraph (g) of this subdivision, for all\nof its property which was destroyed or ceased to be in qualified use as\na direct result of the September eleventh, two thousand one terrorist\nattacks, in the taxable year in which the destruction or cessation of\nuse occurred. If the taxpayer makes such election and acquires property\n(hereinafter referred to as "replacement property") to replace any\nproperty destroyed as a direct result of the September eleventh, two\nthousand one terrorist attacks (regardless of when such property was\nplaced in service and whether a credit was claimed on that property\npursuant to this subdivision), and such replacement property is similar\nor related in service or use to such destroyed property, the investment\ncredit base of the replacement property shall be determined without\nregard to any basis reduction required pursuant to section 1033 of the\ninternal revenue code.\n (3) The election made by the taxpayer under subparagraph one or two of\nthis paragraph shall be made in the manner and form prescribed by the\ncommissioner.\n (4) A taxpayer, over fifty percent of whose employees died as a direct\nresult of the September eleventh, two thousand one terrorist attacks,\nmay make the election provided for in subparagraph one of this\nparagraph, and shall not be required to recapture any credit with\nrespect to property which was destroyed or which ceased to be in\nqualified use as a direct result of such attacks, whether or not it\nmeets the employment test specified in clause (i) of subparagraph one of\nthis paragraph.\n * NB Repealed January 1, 2015\n * 12-A. Additional investment tax credit. (a) Where a taxpayer is\nallowed a credit under subdivision twelve, with respect to property, the\nacquisition, construction, reconstruction or erection of which commenced\non or after the first day of January, nineteen hundred seventy-six and\nprior to January first, nineteen hundred eighty-seven, the taxpayer\nshall be allowed a credit for each of the three years next succeeding\nthe taxable year for which the credit under subdivision twelve is\nallowed with respect to such property, whether or not deductible in such\ntaxable year or in subsequent taxable years pursuant to paragraph (e) of\nsuch subdivision twelve, of fifty per cent of the credit allowable under\nsubdivision twelve; provided, however, that the credit allowable under\nthis subdivision for any taxable year shall only be allowed if the\naverage number of employees during such taxable year is at least one\nhundred one per cent of the average number of employees during the\ntaxable year immediately preceding the taxable year for which the credit\nunder subdivision twelve is allowed and provided, further, that, for\ntaxable years beginning on or after January first, nineteen hundred\neighty-one, if the taxpayer was not subject to tax and did not have a\ntaxable year immediately preceding the taxable year for which the credit\nunder subdivision twelve of this section is allowed, the credit\nallowable under this subdivision for any taxable year shall be allowed\nif the average number of employees in such taxable year is at least one\nhundred one per cent of the average number of employees during the\ntaxable year in which the credit under such subdivision twelve is\nallowed.\n (b) The average number of employees in a taxable year shall be\ncomputed by ascertaining the number of employees within the state,\nexcept general executive officers, employed by the taxpayer on the\nthirty-first day of March, the thirtieth day of June, the thirtieth day\nof September and the thirty-first day of December in the taxable year,\nby adding together the number of employees ascertained on each of such\ndates and dividing the sum so obtained by the number of such\nabovementioned dates occuring within the taxable year. For the purposes\nof this subdivision, the term "employees within the state, except\ngeneral executive officers" shall mean the same as in subparagraph three\nof paragraph (a) of subdivision three of this section.\n (c) In no event shall the credit herein provided for be allowed in an\namount which will reduce the tax payable to less than the higher of the\namounts prescribed in paragraphs (c) and (d) of subdivision one of this\nsection. However, if the amount of credit allowable under this\nsubdivision for any taxable year reduces the tax to such amount, any\namount of credit not deductible in such taxable year may be carried over\nto the following year or years and may be deducted from the taxpayer's\ntax for such year or years but in no event shall such credit be carried\nover to taxable years commencing on or after January first, two thousand\ntwo.\n * NB Repealed January 1, 2015\n * 12-B. Empire zone investment tax credit (EZ-ITC). (a) A taxpayer\nshall be allowed a credit, to be computed as herein provided, against\nthe tax imposed by this article if the taxpayer has been certified\npursuant to article eighteen-B of the general municipal law. The amount\nof the credit shall be ten percent of the cost or other basis for\nfederal income tax purposes of tangible personal property and other\ntangible property, including buildings and structural components of\nbuildings, described in paragraph (b) of this subdivision, which is\nlocated within an empire zone designated as such pursuant to article\neighteen-B of such law, but only if the acquisition, construction,\nreconstruction or erection of such property occurred or was commenced on\nor after the date of such designation and prior to the expiration\nthereof. Provided, however, that in the case of an acquisition,\nconstruction, reconstruction or erection which was commenced during such\nperiod and continued or completed subsequently, such credit shall be ten\npercent of the portion of the cost or other basis for federal income tax\npurposes attributable to such period, which portion shall be ascertained\nby multiplying such cost or basis by a fraction the numerator of which\nshall be the expenditures paid or incurred during such period for such\npurposes and the denominator of which shall be the total of all\nexpenditures paid or incurred for such acquisition, construction,\nreconstruction or erection.\n (b) A credit shall be allowed under this subdivision with respect to\ntangible personal property and other tangible property, including\nbuildings and structural components of buildings, which (i) are\ndepreciable pursuant to section one hundred sixty-seven of the internal\nrevenue code, (ii) have a useful life of four years or more, (iii) are\nacquired by purchase as defined in section one hundred seventy-nine (d)\nof the internal revenue code, (iv) have a situs in an empire zone\ndesignated as such pursuant to article eighteen-B of the general\nmunicipal law, and (v) are (A) principally used by the taxpayer in the\nproduction of goods by manufacturing, processing, assembling, refining,\nmining, extracting, farming, agriculture, horticulture, floriculture,\nviticulture or commercial fishing, (B) industrial waste treatment\nfacilities or air pollution control facilities used in the taxpayer's\ntrade or business, (C) research and development property, (D)\nprincipally used in the ordinary course of the taxpayer's trade or\nbusiness as a broker or dealer in connection with the purchase or sale\n(which shall include but not be limited to the issuance, entering into,\nassumption, offset, assignment, termination, or transfer) of stocks,\nbonds or other securities as defined in section four hundred\nseventy-five (c)(2) of the Internal Revenue Code, or of commodities as\ndefined in section four hundred seventy-five (e) of the Internal Revenue\nCode, (E) principally used in the ordinary course of the taxpayer's\ntrade or business of providing investment advisory services for a\nregulated investment company as defined in section eight hundred\nfifty-one of the Internal Revenue Code, or lending, loan arrangement, or\nloan origination services to customers in connection with the purchase\nor sale (which shall include but not be limited to the issuance,\nentering into, assumption, offset, assignment, termination or transfer)\nof securities as defined in section four hundred seventy-five (c)(2) of\nthe Internal Revenue Code, or (F) principally used in the ordinary\ncourse of the taxpayer's business as an exchange registered as a\nnational securities exchange within the meaning of sections 3(a)(1) and\n6(a) of the Securities Exchange Act of 1934 or a board of trade as\ndefined in subdivision one of paragraph (a) of section fourteen hundred\nten of the not-for-profit corporation law or as an entity that is wholly\nowned by one or more such national securities exchanges or boards of\ntrade and that provides automation or technical services thereto. For\npurposes of clauses (D), (E) and (F) of subparagraph (v) of this\nparagraph, property purchased by a taxpayer affiliated with a regulated\nbroker, dealer, registered investment adviser, national securities\nexchange or board of trade is allowed a credit under this subdivision if\nthe property is used by its affiliated regulated broker, dealer,\nregistered investment adviser or national securities exchange or board\nof trade in accordance with this subdivision. For purposes of\ndetermining if the property is principally used in qualifying uses, the\nuses by the taxpayer described in clauses (D) and (E) of subparagraph\n(v) of this paragraph may be aggregated. In addition, the uses by the\ntaxpayer, its affiliated regulated broker, dealer and registered\ninvestment adviser under either or both of those clauses may be\naggregated. Provided, however, a taxpayer shall not be allowed the\ncredit provided by clauses (D), (E) and (F) of this subparagraph unless\n(I) eighty percent or more of the employees performing the\nadministrative and support functions resulting from or related to the\nqualifying uses of such equipment are located in this state, or (II) the\naverage number of employees that perform the administrative and support\nfunctions resulting from or related to the qualifying uses of such\nequipment and are located in this state during the taxable year for\nwhich the credit is claimed is equal to or greater than ninety-five\npercent of the average number of employees that perform these functions\nand are located in this state during the thirty-six months immediately\npreceding the year for which the credit is claimed, or (III) the number\nof employees located in this state during the taxable year for which the\ncredit is claimed is equal to or greater than ninety percent of the\nnumber of employees located in this state on December thirty-first,\nnineteen hundred ninety-eight or, if the taxpayer was not a calendar\nyear taxpayer in nineteen hundred ninety-eight, the last day of its\nfirst taxable year ending after December thirty-first, nineteen hundred\nninety-eight. If the taxpayer becomes subject to tax in this state after\nthe taxable year beginning in nineteen hundred ninety-eight, then the\ntaxpayer is not required to satisfy the employment test provided in the\npreceding sentence of this subparagraph for its first taxable year. For\nthe purposes of clause (III) of this subparagraph the employment test\nwill be based on the number of employees located in this state on the\nlast day of the first taxable year the taxpayer is subject to tax in\nthis state. If the uses of the property must be aggregated to determine\nwhether the property is principally used in qualifying uses, then either\neach affiliate using the property must satisfy this employment test or\nthis employment test must be satisfied through the aggregation of the\nemployees of the taxpayer, its affiliated regulated broker, dealer, and\nregistered investment adviser using the property. For the purpose of\nthis subdivision, the term "goods" shall not include electricity. For\npurposes of this paragraph, manufacturing shall mean the process of\nworking raw materials into wares suitable for use or which gives new\nshapes, new quality or new combinations to matter which already has gone\nthrough some artificial process by the use of machinery, tools,\nappliances and other similar equipment. Property used in the production\nof goods shall include machinery, equipment or other tangible property\nwhich is principally used in the repair and service of other machinery,\nequipment or other tangible property used principally in the production\nof goods and shall include all facilities used in the production\noperation, including storage of material to be used in production and of\nthe products that are produced. For purposes of this paragraph, the\nterms "research and development property", "industrial waste treatment\nfacilities", and "air pollution control facilities" shall have the\nmeanings ascribed thereto by clauses (B), (C) and (D), respectively, of\nsubparagraph (ii) of paragraph (b) of subdivision twelve of this\nsection, and the provisions of subparagraph (iii) of such paragraph (b)\nshall apply.\n (c) A taxpayer shall not be allowed a credit under this subdivision\nwith respect to any tangible personal property and other tangible\nproperty, including buildings and structural components of buildings,\nwhich it leases to any other person or corporation except where a\ntaxpayer leases property to an affiliated regulated broker, dealer,\nregistered investment adviser, national securities exchange or board of\ntrade (or other entity described in clause (F) of subparagraph (v) of\nparagraph (b) of this subdivision that uses such property in accordance\nwith clause (D), (E) or (F) of subparagraph (v) of paragraph (b) of this\nsubdivision. For purposes of the preceding sentence, any contract or\nagreement to lease or rent or for a license to use such property shall\nbe considered a lease. Provided, however, in determining whether a\ntaxpayer shall be allowed a credit under this subdivision with respect\nto such property, any election made with respect to such property\npursuant to the provisions of paragraph eight of subsection (f) of\nsection one hundred sixty-eight of the internal revenue code, as such\nparagraph was in effect for agreements entered into prior to January\nfirst, nineteen hundred eighty-four, shall be disregarded.\n (d) The credit allowed under this subdivision for any taxable year\nshall not reduce the tax due for such year to less than the higher of\nthe amounts prescribed in paragraphs (c) and (d) of subdivision one of\nthis section. Provided, however, that if the amount of credit allowed\nunder this subdivision for any taxable year reduces the tax to such\namount, any amount of credit not deductible in such taxable year may be\ncarried over to the following year or years and may be deducted from the\ntaxpayer's tax for such year or years. In lieu of such carryover, any\nsuch taxpayer which qualifies as a new business under paragraph (j) of\nsubdivision twelve of this section may elect, on its report for its\ntaxable year with respect to which such credit is allowed, to treat\nfifty percent of the amount of such carryover as an overpayment of tax\nto be credited or refunded in accordance with the provisions of section\nten hundred eighty-six of this chapter. In addition, any taxpayer which\nis approved as the owner of a qualified investment project or a\nsignificant capital investment project pursuant to subdivision (w) of\nsection nine hundred fifty-nine of the general municipal law, on its\nreport for its taxable year with respect to which such credit is\nallowed, in lieu of such carryover, may elect to treat fifty percent of\nthe amount of such carryover which is attributable to the credit allowed\nunder this subdivision for property which is part of such project as an\noverpayment of tax to be credited or refunded in accordance with the\nprovisions of section ten hundred eighty-six of this chapter. Provided,\nhowever, such owner shall be allowed such refund for a maximum of ten\ntaxable years with respect to such qualified investment project and each\nsignificant capital investment project, starting with the first taxable\nyear in which property comprising such project is placed in service.\nProvided, further, however, the provisions of subsection (c) of section\nten hundred eighty-eight of this chapter notwithstanding, no interest\nshall be paid thereon.\n (d-1) Any carry over of a credit from prior taxable years will not be\nallowed if an empire zone retention certificate is not issued pursuant\nto subdivision (w) of section nine hundred fifty-nine of the general\nmunicipal law to the empire zone enterprise which is the basis of the\ncredit.\n (e) At the option of the taxpayer air or water pollution control\nfacilities which qualify for elective deductions under paragraph (g) of\nsubdivision nine of section two hundred eight of this article or an\neligible business facility for which a credit is allowed under\nsubdivision eleven of this section, or research and development\nfacilities which qualify for elective deduction under subparagraphs two\nand three of paragraph (e) of subdivision three of this section, or\nproperty which qualifies for the credit provided under subdivision\ntwelve or eighteen of this section may be treated as property\nprincipally used by the taxpayer in the production of goods by\nmanufacturing, processing, assembling, refining, mining, extracting,\nfarming, agriculture, horticulture, viticulture or commercial fishing,\nprovided the property otherwise qualifies under paragraph (b) of this\nsubdivision, in which event a deduction shall not be allowed under such\nparagraph (g), a credit shall not be allowed under such subdivision\neleven and a deduction shall not be allowed under such subparagraph\nthree of paragraph (e) and a credit shall not be allowed under such\nsubdivision twelve or eighteen.\n (f) (1) With respect to property which is depreciable pursuant to\nsection one hundred sixty-seven of the internal revenue code but is not\nsubject to the provisions of section one hundred sixty-eight of such\ncode and which is disposed of or ceases to be in qualified use prior to\nthe end of the taxable year in which the credit is to be taken, the\namount of the credit shall be that portion of the credit provided for in\nthis subdivision which represents the ratio which the months of\nqualified use bear to the months of useful life. If property on which\ncredit has been taken is disposed of or ceases to be in qualified use\nprior to the end of its useful life, the difference between the credit\ntaken and the credit allowed for actual use must be added back in the\nyear of disposition. Provided, however, if such property is disposed of\nor ceases to be in qualified use after it has been in qualified use for\nmore than twelve consecutive years, it shall not be necessary to add\nback the credit as provided in this subparagraph. The amount of credit\nallowed for actual use shall be determined by multiplying the original\ncredit by the ratio which the months of qualified use bear to the months\nof useful life. For purposes of this subparagraph, useful life of\nproperty shall be the same as the taxpayer uses for depreciation\npurposes when computing his federal income tax liability.\n (2) Except with respect to that property to which subparagraph four of\nthis paragraph applies, with respect to three-year property, as defined\nin subsection (e) of section one hundred sixty-eight of the internal\nrevenue code, which is disposed of or ceases to be in qualified use\nprior to the end of the taxable year in which the credit is to be taken,\nthe amount of the credit shall be that portion of the credit provided\nfor in this subdivision which represents the ratio which the months of\nqualified use bear to thirty-six. If property on which credit has been\ntaken is disposed of or ceases to be in qualified use prior to the end\nof thirty-six months, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. The amount of credit allowed for actual use shall be\ndetermined by multiplying the original credit by the ratio which the\nmonths of qualified use bear to thirty-six.\n (3) Except with respect to that property to which subparagraph four of\nthis paragraph applies, with respect to property subject to the\nprovisions of section one hundred sixty-eight of the internal revenue\ncode other than three-year property as defined in subsection (e) of such\nsection one hundred sixty-eight which is disposed of or ceases to be in\nqualified use prior to the end of the taxable year in which the credit\nis to be taken, the amount of the credit shall be that portion of the\ncredit provided for in this subdivision which represents the ratio which\nthe months of qualified use bear to sixty. If property on which credit\nhas been taken is disposed of or ceases to be in qualified use prior to\nthe end of sixty months, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. The amount of credit allowed for actual use shall be\ndetermined by multiplying the original credit by the ratio which the\nmonths of qualified use bear to sixty.\n (4) With respect to any property to which section one hundred\nsixty-eight of the internal revenue code applies, which is a building or\na structural component of a building and which is disposed of or ceases\nto be in qualified use prior to the end of the taxable year in which the\ncredit is to be taken, the amount of the credit shall be that portion of\nthe credit provided for in this subdivision which represents the ratio\nwhich the months of qualified use bear to the total number of months\nover which the taxpayer chooses to deduct the property under the\ninternal revenue code. If property on which credit has been taken is\ndisposed of or ceases to be in qualified use prior to the end of the\nperiod over which the taxpayer chooses to deduct the property under the\ninternal revenue code, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. Provided, however, if such property is disposed of or\nceases to be in qualified use after it has been in qualified use for\nmore than twelve consecutive years, it shall not be necessary to add\nback the credit as provided in this subparagraph. The amount of credit\nallowed for actual use shall be determined by multiplying the original\ncredit by the ratio which the months of qualified use bear to the total\nnumber of months over which the taxpayer chooses to deduct the property\nunder the internal revenue code.\n (5) For purposes of this paragraph, disposal or cessation of qualified\nuse shall not be deemed to have occurred solely by reason of the\ntermination or expiration of an empire zone's designation as such.\n (6)(A) For purposes of this paragraph, the decertification of a\nbusiness enterprise with respect to an empire zone shall constitute a\ndisposal or cessation of qualified use of the property on which the\ncredit was taken which is located in the zone to which the\ndecertification applies, on the effective date of such decertification.\n (B) Where a business enterprise has been decertified based on a\nfinding pursuant to clause one, two, or five of subdivision (a) of\nsection nine hundred fifty-nine of the general municipal law, the amount\nrequired to be added back by reason of this paragraph shall be augmented\nby an amount equal to the product of the amount of credit, with respect\nto property which is disposed of or ceases to be in qualified use, which\nwas deducted from the taxpayer's tax otherwise due under this article\nfor all prior taxable years (subject to the limit set forth in this\nsubparagraph) and the underpayment rate of interest (without regard to\ncompounding) set by the commissioner of taxation and finance pursuant to\nsubdivision (e) of section one thousand ninety-six of this chapter, in\neffect on the last day of the taxable year. The limit shall be (i) the\namount of credit, with respect to the property which is disposed of or\nceases to be in qualified use, which was deducted from the taxpayer's\ntax otherwise due under this article for all prior taxable years,\nreduced (but not below zero) by (ii) the credit allowed for actual use.\nFor purposes of this subparagraph, the attribution to specific property\nof credit amounts deducted from tax shall be established in accordance\nwith the date of placement in service of such property in the empire\nzone.\n (C) In no event shall the amount of the credit allowed pursuant to\nthis subdivision be rendered, solely by reason of clause (A) of this\nsubparagraph, less than the amount of the credit to which the taxpayer\nwould otherwise be entitled under subdivision twelve of this section.\n (D) Notwithstanding any other provision of this subdivision, in the\ncase of a business enterprise which has been decertified, any amount of\ncredit allowed with respect to the property of such business enterprise\nlocated in the zone to which the decertification applies which is\ncarried over pursuant to paragraph (d) of this subdivision shall not be\ncarried over beyond the seventh taxable year next following the taxable\nyear with respect to which the credit provided for in this subdivision\nwas allowed.\n (7) For purposes of this paragraph, where a credit is allowed with\nrespect to an air pollution control facility on the basis of a\ncertificate of compliance issued pursuant to the environmental\nconservation law and the certificate is revoked pursuant to subdivision\nthree of section 19-0309 of the environmental conservation law, such\nrevocation shall constitute a disposal or cessation of qualified use,\nexcept with respect to property contained in or comprising such facility\nwhich is described in clause (A), (B) or (C) of subparagraph (v) of\nparagraph (b) of this subdivision other than as part of or comprising an\nair pollution control facility. Also for purposes of this paragraph, the\nuse of an air pollution control facility or an industrial waste\ntreatment facility for the primary purpose of salvaging materials which\nare usable in the manufacturing process or are marketable shall\nconstitute a cessation of qualified use, except with respect to property\ncontained in or comprising such facility which is described in clause\n(A) or (C) of subparagraph (v) of paragraph (b) of this subdivision.\n (8) Except as provided in this subparagraph, this paragraph shall not\napply to a credit allowed by this subdivision to a taxpayer that is a\npartner in a partnership in the case of manufacturing property;\nprovided, at the time such property was placed in service by such\npartnership in an empire zone the basis for federal income tax purposes\nof such property (or a project that includes such property) equaled or\nexceeded three hundred million dollars and such partner owned its\npartnership interest for at least three years from the date such\nproperty was placed in service. If such property ceases to be in\nqualified use after it is placed in service, this paragraph shall apply\nto such partner in the year such property ceases to be in qualifying\nuse.\n (9) If a taxpayer, which is approved by the commissioner of economic\ndevelopment as the owner of a qualified investment project or a\nsignificant capital investment project pursuant to subdivision (w) of\nsection nine hundred fifty-nine of the general municipal law, fails to\n(A) create at least the minimum number of jobs at such project as\nrequired by the provisions of subdivision (s) or (t) of section nine\nhundred fifty-seven and subdivision (w) of section nine hundred\nfifty-nine of the general municipal law or (B) place in service property\ncomprising such qualified investment project or significant capital\ninvestment project with a basis for federal income tax purposes equaling\nor exceeding the applicable minimum required basis as provided in such\nsubdivision (s) or (t), whichever is relevant, by the last day of the\nfifth taxable year following the taxable year in which a credit is first\nallowed under this subdivision for the property which comprises such\nqualified investment project or such significant capital investment\nproject, the total amount of the credit allowed under this subdivision\nfor all taxable years with respect to the property which comprises such\nproject which has been refunded to such taxpayer shall be added back in\nsuch taxable year.\n (g) Notwithstanding the expiration of the empire zones program under\narticle eighteen-B of the general municipal law, a taxpayer that is\ncertified as a qualified investment project pursuant to such article\neighteen-B on the day immediately preceding the day the empire zones\nprogram expired shall continue to be deemed certified under such article\neighteen-B for purposes of this subdivision for the remainder of the\ntaxable year in which the expiration occurred and for the next\nsucceeding nine taxable years. In addition, the areas designated as\nempire zones in which the taxpayer is certified as a qualified\ninvestment project on the day immediately preceding the day the empire\nzones program expired shall continue to be deemed empire zones for\npurposes of this subdivision for the remainder of the taxable year in\nwhich the expiration occurred and for the next succeeding nine taxable\nyears.\n (h) Notwithstanding the expiration of the empire zones program under\narticle eighteen-B of the general municipal law and except as provided\nin paragraph (g) of this subdivision, a taxpayer that is certified as an\nempire zone business pursuant to such article eighteen-B on the day\nimmediately preceding the day the empire zones program expired shall\ncontinue to be deemed certified under such article eighteen-B for\npurposes of this subdivision until April first, two thousand fourteen.\nIn addition, the areas designated as empire zones in which the taxpayer\nis certified as an empire zone business on the day immediately preceding\nthe day the empire zones program expired shall continue to be deemed\nempire zones for purposes of this subdivision until April first, two\nthousand fourteen.\n * NB Repealed January 1, 2015\n * 12-C. Empire zone employment incentive credit (EZ-EIC). (a) Where a\ntaxpayer is allowed a credit under subdivision twelve-B of this section,\nthe taxpayer shall be allowed a credit for each of the three years next\nsucceeding the taxable year for which the credit under such subdivision\ntwelve-B is allowed, with respect to such property, whether or not\ndeductible in such taxable year or in subsequent taxable years pursuant\nto paragraph (d) of such subdivision twelve-B, of thirty percent of the\ncredit allowable under such subdivision twelve-B; provided, however,\nthat the credit allowable under this subdivision for any taxable year\nshall only be allowed if the average number of employees employed by the\ntaxpayer in the empire zone, designated pursuant to article eighteen-B\nof the general municipal law, in which such property is located during\nsuch taxable year is at least one hundred one percent of the average\nnumber of employees employed by the taxpayer in such empire zone or,\nwhere applicable, in the geographic area subsequently constituting such\nzone, during the taxable year immediately preceding the taxable year for\nwhich the credit under such subdivision twelve-B is allowed and\nprovided, further, that if the taxpayer was not subject to tax and did\nnot have a taxable year immediately preceding the taxable year for which\nthe credit under subdivision twelve-B of this section is allowed, the\ncredit allowable under this subdivision for any taxable year shall be\nallowed if the average number of employees employed in such empire zone\nin such taxable year is at least one hundred one percent of the average\nnumber of such employees during the taxable year in which the credit\nunder such subdivision twelve-B is allowed.\n (b) The average number of employees employed in an empire zone, or,\nwhere applicable, in the geographic area subsequently constituting such\nzone, in a taxable year shall be computed by ascertaining the number of\nsuch employees within such zone, or, where applicable, in the geographic\narea subsequently constituting such zone, except general executive\nofficers, employed by the taxpayer on the thirty-first day of March, the\nthirtieth day of June, the thirtieth day of September and the\nthirty-first day of December in the taxable year, by adding together the\nnumber of employees ascertained on each of such dates and dividing the\nsum so obtained by the number of such above-mentioned dates occurring\nwithin the taxable year. For the purposes of this subdivision, the term\n"employees" and the term "general executive officers" shall mean the\nsame as in subparagraph three of paragraph (a) of subdivision three of\nthis section.\n (c) In no event shall the credit herein provided for be allowed in an\namount which will reduce the tax payable to less than the amount\nprescribed in paragraph (d) of subdivision one of this section.\nProvided, however, that if the amount of credit allowable under this\nsubdivision for any taxable year reduces the tax to such amount, any\namount of credit not deductible in such taxable year may be carried over\nto the following year or years and may be deducted from the taxpayer's\ntax for such year or years. In lieu of such carryover, any such\ntaxpayer, which is approved as the owner of a qualified investment\nproject or a significant capital investment project pursuant to\nsubdivision (w) of section nine hundred fifty-nine of the general\nmunicipal law, may elect, on its report for its taxable year with\nrespect to which such credit is allowed, to treat fifty percent of the\namount of such carryover as an overpayment of tax to be credited or\nrefunded in accordance with the provisions of section ten hundred\neighty-six of this chapter. Provided, however, in the case of such owner\nof a qualified investment project or a significant capital investment\nproject, only fifty percent of the amount of such carryover which is\nattributable to the credit allowed under this subdivision with respect\nto property which is part of such project shall be allowed to be\ncredited or refunded and such owner shall be allowed such credit or\nrefund only for those taxable years in which such owner would be allowed\na credit or refund of the empire zone investment tax credit pursuant to\nparagraph (d) of subdivision twelve-B of this section. Provided,\nfurther, however, the provisions of subsection (c) of section ten\nhundred eighty-eight of this chapter notwithstanding, no interest shall\nbe paid thereon.\n (c-1) Any carry over of a credit from prior taxable years will not be\nallowed if an empire zone retention certificate is not issued pursuant\nto subdivision (w) of section nine hundred fifty-nine of the general\nmunicipal law to the empire zone enterprise which is the basis of the\ncredit.\n (d) Notwithstanding the expiration of the empire zones program under\narticle eighteen-B of the general municipal law, a taxpayer that is\ncertified as a qualified investment project pursuant to such article\neighteen-B on the day immediately preceding the day the empire zones\nprogram expired shall continue to be deemed certified under such article\neighteen-B for purposes of this subdivision for the remainder of the\ntaxable year in which the expiration occurred and for the next\nsucceeding nine taxable years. In addition, the areas designated as\nempire zones in which the taxpayer is certified as a qualified\ninvestment project on the day immediately preceding the day the empire\nzones program expired shall continue to be deemed empire zones for\npurposes of this subdivision for the remainder of the taxable year in\nwhich the expiration occurred and for the next succeeding nine taxable\nyears.\n (e) Notwithstanding the expiration of the empire zones program under\narticle eighteen-B of the general municipal law and except as provided\nin paragraph (d) of this subdivision, a taxpayer that is certified as an\nempire zone business pursuant to such article eighteen-B on the day\nimmediately preceding the day the empire zones program expired shall\ncontinue to be deemed in the empire zone in which the taxpayer was\ncertified as an empire zone business on the day immediately preceding\nthe day the empire zones program expired for each of the three years\nnext succeeding the taxable year for which the credit under subdivision\ntwelve-B is allowed.\n * NB Repealed January 1, 2015\n * 12-D. Employment Incentive Credit (EIC). (a) (i) Where a taxpayer is\nallowed a credit under subdivision twelve of this section, other than at\nthe optional rate applicable to research and development property, with\nrespect to property the acquisition, construction, reconstruction or\nerection of which commenced on or after the first day of January,\nnineteen hundred eighty-seven, the taxpayer shall be allowed a credit\nfor each of the two years next succeeding the taxable year for which the\ncredit under such subdivision twelve is allowed with respect to such\nproperty, whether or not deductible in such taxable year or in\nsubsequent taxable years pursuant to paragraph (e) of such subdivision\ntwelve. Provided, however, that the credit allowable under this\nsubdivision for any taxable year shall be allowed only if the average\nnumber of employees during such taxable year is at least one hundred one\npercent of the average number of employees during the employment base\nyear. The employment base year shall be the taxable year immediately\npreceding the taxable year for which the credit under such subdivision\ntwelve is allowed except that if the taxpayer was not subject to tax and\ndid not have a taxable year immediately preceding the taxable year for\nwhich the credit under such subdivision twelve of this section is\nallowed, the employment base year shall be the taxable year in which the\ncredit under such subdivision twelve is allowed.\n (ii) the amount of the credit provided for in this subdivision shall\nbe computed as follows:\n (A) Where the credit allowed under subdivision twelve of this section\nwas allowed for a taxable year beginning in nineteen hundred\neighty-seven, nineteen hundred eighty-eight or nineteen hundred\neighty-nine, the amount of the credit allowed under this subdivision\nshall equal the sum of two percent of the first five hundred million\ndollars of the investment credit base and two and one-half percent of\nthe investment credit base in excess of five hundred million dollars.\n (B) Where the credit allowed under subdivision twelve of this section\nwas allowed for a taxable year beginning in nineteen hundred ninety, the\namount of the credit allowed under this subdivision shall be as set\nforth in the following table:\n Average number of employees Credit allowed under\n during the taxable year this subdivision\n expressed as a percentage of expressed as a\n average number of employees percentage of the applicable\n in employment base year: investment credit base:\n Less than 101.5% 2%\n at least 101.5% 2.5%\n (C) Where the credit allowed under subdivision twelve of this section\nwas allowed for a taxable year beginning after nineteen hundred ninety,\nthe amount of the credit allowed under this subdivision shall be as set\nforth in the following table:\n Average number of employees Credit allowed under\n during the taxable year this subdivision\n expressed as a percentage of expressed as a\n average number of employees percentage of the applicable\n in employment base year: investment credit base:\n Less than 102% 1.5%\n at least 102% and less\n than 103% 2%\n at least 103% 2.5%\n (b) The average number of employees in a taxable year shall be\ncomputed by ascertaining the number of employees within the state,\nexcept general executive officers, employed by the taxpayer on the\nthirty-first day of March, the thirtieth day of June, the thirtieth day\nof September and the thirty-first day of December in the taxable year,\nby adding together the number of employees ascertained on each of such\ndates and dividing the sum so obtained by the number of such\nabove-mentioned dates occurring within the taxable year. For the\npurposes of this subdivision, the term "employees within the state,\nexcept general executive officers" shall mean the same as in\nsubparagraph three of paragraph (a) of subdivision three of this\nsection; provided, however, except with respect to the employment base\nyear, there shall be excluded therefrom any employee with respect to\nwhom a credit provided for under subdivision nineteen of this section is\nclaimed, for the taxable year, based on employment within a zone\nequivalent area designated as such pursuant to article eighteen-B of the\ngeneral municipal law.\n (c) In no event shall the credit herein provided for be allowed in an\namount which will reduce the tax payable to less than the higher of the\namounts prescribed in paragraphs (c) and (d) of subdivision one of this\nsection. However, if the amount of credit allowable under this\nsubdivision for any taxable year reduces the tax to such amount, any\namount of credit not deductible in such taxable year may be carried over\nto the fifteen taxable years immediately following such taxable year and\nmay be deducted from the taxpayer's tax for such year or years.\n * NB Repealed January 1, 2015\n * 12-E. Qualified emerging technology company employment credit. (a) A\ntaxpayer shall be allowed a credit, to be computed as hereinafter\nprovided, against the tax imposed by this article, provided:\n (1) the taxpayer is a qualified emerging technology company pursuant\nto the provisions of section thirty-one hundred two-e of the public\nauthorities law; and\n (2) the average number of individuals employed full time by the\ntaxpayer in New York state during the taxable year is at least one\nhundred one percent of the taxpayer's base year employment. For the\npurposes of this subdivision, "base year employment" means the average\nnumber of individuals employed full-time by the taxpayer in the state\nduring the three taxable years immediately preceding the first taxable\nyear in which the credit is claimed. Where the taxpayer provided\nfull-time employment within the state during only a portion of such\nthree-year period, then the first effective date for the company to take\nadvantage of this credit shall be the next year following the first full\ntaxable year that the company had full-time employment in New York\nstate. For the purposes of this paragraph the term "three years" shall\nbe deemed to refer instead to the prior year's full-time employment\nafter the first year and the average of the first eight quarters of\nemployment after the first two taxable years in New York state.\n (b) The credit shall be allowed only in the first taxable year in\nwhich the credit is claimed and in each of the next two taxable years,\nprovided that the conditions of paragraph (a) of this subdivision are\nsatisfied in each taxable year.\n (c) For the purposes of this subdivision, average number of\nindividuals employed full-time shall be computed by adding the number of\nsuch individuals employed by the taxpayer at the end of each quarter\nduring each taxable year or other applicable period and dividing the sum\nso obtained by the number of such quarters occurring within such taxable\nyear or other applicable period; provided however, except that in\ncomputing base year employment, there shall be excluded therefrom any\nemployee with respect to whom a credit provided for under subdivision\nnineteen of this section is claimed for the taxable year.\n (d) The amount of the credit shall equal the product of one thousand\ndollars times the number of individuals employed full-time by the\ntaxpayer in the taxable year that are in excess of one hundred percent\nof the taxpayer's base year employment.\n (e) The credit allowed under this subdivision for any taxable year\nshall not reduce the tax due for such year to less than the higher of\nthe amounts prescribed in paragraphs (c) and (d) of subdivision one of\nthis section. However, if the amount of credit allowed under this\nsubdivision for any taxable year reduces the tax to such amount, any\namount of credit thus not deductible in such taxable year shall be\ntreated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section ten hundred eight-six of this\nchapter. Provided, however, the provisions of subsection (c) of section\nten hundred eighty-eight of this chapter notwithstanding, no interest\nshall be paid thereon.\n * NB Repealed January 1, 2015\n * 12-F. Qualified emerging technology company capital tax credit. (a)\nA taxpayer shall be allowed a credit against the tax imposed by this\narticle. The amount of the credit shall be equal to one of the following\npercentages, per each qualified investment in a qualified emerging\ntechnology company as defined in section thirty-one hundred two-e of the\npublic authorities law, made during the taxable year, and certified by\nthe commissioner, either:\n (1) ten percent of qualified investments in qualified emerging\ntechnology companies, except for investments made by or on behalf of an\nowner of the business, including, but not limited to, a stockholder,\npartner or sole proprietor, or any related person, as defined in\nsubparagraph (C) of paragraph three of subsection (b) of section four\nhundred sixty-five of the internal revenue code, and provided, however,\nthat the taxpayer certifies to the commissioner that the qualified\ninvestment will not be sold, transferred, traded, or disposed of during\nthe four years following the year in which the credit is first claimed;\nor\n (2) twenty percent of qualified investments in qualified emerging\ntechnology companies, except for investments made by or on behalf of an\nowner of the business, including, but not limited to, a stockholder,\npartner or sole proprietor, or any related person, as defined in\nsubparagraph (C) of paragraph three of subsection (b) of section four\nhundred sixty-five of the internal revenue code, and provided, however,\nthat the taxpayer certifies to the commissioner that the qualified\ninvestment will not be sold, transferred, traded, or disposed of during\nthe nine years following the year in which the credit is first claimed.\n "Qualified investment" means the contribution of property to a\ncorporation in exchange for original issue capital stock or other\nownership interest, the contribution of property to a partnership in\nexchange for an interest in the partnership, and similar contributions\nin the case of a business entity not in corporate or partnership form in\nexchange for an ownership interest in such entity.\nThe total amount of credit allowable to a taxpayer under this provision\nfor all years, taken in the aggregate, shall not exceed one hundred\nfifty thousand dollars in the case of investments made pursuant to\nsubparagraph one of this paragraph and shall not exceed three hundred\nthousand dollars in the case of investments made pursuant to\nsubparagraph two of this paragraph.\n (b) In no event shall the credit and carryover of such credit allowed\nunder this subdivision for any taxable year, in the aggregate, reduce\nthe tax due for such year to less than the higher of the amounts\nprescribed in paragraphs (c) and (d) of subdivision one of this section.\nHowever, if the amount of credit or carryovers of such credit, or both,\nallowed under this subdivision for any taxable year reduces the tax to\nsuch amount, or if any part of the credit or carryovers of such credit\nmay not be deducted from the tax otherwise due by reason of the final\nsentence of this paragraph, any amount of credit or carryovers of such\ncredit thus not deductible in such taxable year may be carried over to\nthe following year or years and may be deducted from the tax for such\nyear or years. In addition, the amount of such credit, and carryovers of\nsuch credit to the taxable year, deducted from the tax otherwise due may\nnot, in the aggregate, exceed fifty percent of the tax imposed under\nsection two hundred nine of this article computed without regard to any\ncredit provided for by this section.\n (c) (1) Where a taxpayer sells, transfers or otherwise disposes of\ncorporate stock, a partnership interest or other ownership interest\narising from the making of a qualified investment which was the basis,\nin whole or in part, for the allowance of the credit provided for under\nsubparagraph one of paragraph (a) of this subdivision, or where an\ninvestment which was the basis for such allowance is, in whole or in\npart, recovered by such taxpayer, and such disposition or recovery\noccurs during the taxable year or within forty-eight months from the\nclose of the taxable year with respect to which such credit is allowed,\nthe taxpayer shall add back, with respect to the taxable year in which\nthe disposition or recovery described above occurred, the required\nportion of the credit originally allowed.\n (2) Where a taxpayer sells, transfers or otherwise disposes of\ncorporate stock, a partnership interest or other ownership interest\narising from the making of a qualified investment which was the basis,\nin whole or in part, for the allowance of the credit provided for under\nsubparagraph two of paragraph (a) of this subdivision, or where an\ninvestment which was the basis for such allowance is in any manner, in\nwhole or in part, recovered by such taxpayer, and such disposition or\nrecovery occurs during the taxable year or within one hundred eight\nmonths from the close of the taxable year with respect to which such\ncredit is allowed, the taxpayer shall add back, with respect to the\ntaxable year in which the disposition or recovery described in\nsubparagraph one of this paragraph occurred the required portion of the\ncredit originally allowed.\n (3) The required portion of the credit originally allowed shall be the\nproduct of (A) the portion of such credit attributable to the property\ndisposed of and (B) the applicable percentage.\n (4) The applicable percentage shall be:\n (A) for credits allowed pursuant to subparagraph one of paragraph (a)\nof this subdivision:\n (i) one hundred percent, if the disposition or recovery occurs within\nthe taxable year with respect to which the credit is allowed or within\ntwelve months of the end of such taxable year,\n (ii) seventy-five percent, if the disposition or recovery occurs more\nthan twelve but not more than twenty-four months after the end of the\ntaxable year with respect to which the credit is allowed,\n (iii) fifty percent, if the disposition or recovery occurs more than\ntwenty-four months but not more than thirty-six months after the end of\nthe taxable year with respect to which the credit is allowed, or\n (iv) twenty-five percent, if the disposition or recovery occurs more\nthan thirty-six months but not more than forty-eight months after the\nend of the taxable year with respect to which the credit is allowed; or\n (B) for credits allowed pursuant to subparagraph two of paragraph (a)\nof this subdivision:\n (i) one hundred percent, if the disposition or recovery occurs within\nthe taxable year with respect to which the credit is allowed or within\ntwelve months of the end of such taxable year,\n (ii) eighty percent, if the disposition or recovery occurs more than\ntwelve but not more than forty-eight months after the end of the taxable\nyear with respect to which the credit is allowed,\n (iii) sixty percent, if the disposition or recovery occurs more than\nforty-eight months but not more than seventy-two months after the end of\nthe taxable year with respect to which the credit is allowed,\n (iv) forty percent, if the disposition or recovery occurs more than\nseventy-two months but not more than ninety-six months after the end of\nthe taxable year with respect to which the credit is allowed, or\n (v) twenty percent, if the disposition or recovery occurs more than\nninety-six months but not more than one hundred eight months after the\nend of the taxable year with respect to which the credit is allowed.\n * NB Repealed January 1, 2015\n * 12-G. Qualified emerging technology company facilities, operations\nand training credit. (a) A taxpayer that is a qualified emerging\ntechnology company pursuant to the provisions of section thirty-one\nhundred two-e (and specifically for the activities referenced in\nparagraph (b) of subdivision one of such section thirty-one hundred\ntwo-e) of the public authorities law, and that meets the eligibility\nrequirements in paragraph (b) of this subdivision, shall be allowed a\ncredit against the tax imposed by this article. The amount of credit\nshall be equal to the sum of the amounts specified in paragraphs (c),\n(d), and (e) of this subdivision subject to the limitations in paragraph\n(f) of this subdivision.\n (b) An eligible taxpayer shall (i) have no more than one hundred\nfull-time employees, of which at least seventy-five percent are employed\nin New York state, (ii) have a ratio of research and development funds\nto net sales, as referred to in section thirty-one hundred two-e of the\npublic authorities law, which equals or exceeds six percent during its\ntaxable year, and (iii) have gross revenues, along with the gross\nrevenues of its affiliates and related members, not exceeding twenty\nmillion dollars for the taxable year immediately preceding the year the\ntaxpayer is allowed a credit under this subdivision. For purposes of\nthis paragraph, the term "related member" shall have the same meaning as\nset forth in clauses (A) and (B) of subparagraph one of paragraph (o) of\nsubdivision nine of section two hundred eight of this article, and the\nterm "affiliates" shall mean those corporations that are members of the\nsame affiliated group (as defined in section fifteen hundred four of the\ninternal revenue code) as the taxpayer.\n (c) An eligible taxpayer shall be allowed a credit for eighteen per\ncentum of the cost or other basis for federal income tax purposes of\nresearch and development property as defined in paragraph (b) of\nsubdivision twelve of this section that is acquired by the taxpayer by\npurchase as defined in section 179(d) of the internal revenue code and\nplaced in service during the taxable year. Provided, however, for the\npurposes of this paragraph only, an eligible taxpayer shall be allowed a\ncredit for such percentage of the (i) cost or other basis for federal\nincome tax purposes for property used in the testing or inspection of\nmaterials and products,\n (ii) the costs or expenses associated with quality control of the\nresearch and development,\n (iii) fees for use of sophisticated technology facilities and\nprocesses,\n (iv) fees for the production or eventual commercial distribution of\nmaterials and products resulting from the activities of an eligible\ntaxpayer as long as such activities fall under the activities listed in\nparagraph (b) of subdivision one of section thirty-one hundred two-e of\nthe public authorities law. The costs, expenses and other amounts for\nwhich a credit is allowed and claimed under this paragraph shall not be\nused in the calculation of any other credit allowed under this article.\n (d) An eligible taxpayer shall be allowed a credit for nine per centum\nof "qualified research expenses" paid or incurred by the taxpayer in the\ntaxable year. "Qualified research expenses" shall mean expenses\nassociated with in-house research and processes, and costs associated\nwith the dissemination of the results of the products that directly\nresult from such research and development activities; provided, however,\nthat such costs shall not include advertising or promotion through\nmedia. In addition, costs associated with the preparation of patent\napplications, patent application filing fees, patent research fees,\npatent examinations fees, patent post allowance fees, patent maintenance\nfees, and grant application expenses and fees shall be eligible for such\ncredit. In no case shall the credit allowed under this paragraph apply\nto expenses for litigation or the challenge of another entity's\nintellectual property rights, or for contract expenses involving outside\npaid consultants.\n (e) An eligible taxpayer shall be allowed a credit for qualified\nhigh-technology training expenditures as described in this paragraph\npaid or incurred by the taxpayer. (i) The amount of credit shall be one\nhundred percent of the training expenses described in subparagraph (iii)\nof this paragraph, subject to a limitation of no more than four thousand\ndollars per employee per year for such training expenses.\n (ii) Qualified high-technology training shall include a course or\ncourses taken and satisfactorily completed by an employee of the\ntaxpayer at an accredited, degree granting post-secondary college or\nuniversity in New York state that (A) directly relates to the activities\nreferred to in paragraph (b) of subdivision one of section thirty-one\nhundred two-e of the public authorities law, and\n (B) is intended to upgrade, retrain or improve the productivity or\ntheoretical awareness of the employee. Such course or courses may\ninclude, but are not limited to, instruction or research relating to\ntechniques, meta, macro, or micro-theoretical or practical knowledge\nbases or frontiers, or ethical concerns related to such activities. Such\ncourse or courses shall not include classes in the disciplines of\nmanagement, accounting or the law or any class designed to fulfill the\ndiscipline specific requirements of a degree program at the associate,\nbaccalaureate, graduate or professional level of these disciplines.\nSatisfactory completion of a course or courses shall mean the earning\nand granting of credit or equivalent unit, with the attainment of a\ngrade of "B" or higher in a graduate level course or courses, a grade of\n"C" or higher in an undergraduate level course or courses, or a similar\nmeasure of competency for a course that is not measured according to a\nstandard grade formula.\n (iii) Qualified high-technology training expenditures shall include\nexpenses for tuition and mandatory fees, software required by the\ninstitution, fees for textbooks or other literature required by the\ninstitution offering the course or courses, minus applicable\nscholarships and tuition or fee waivers not granted by the taxpayer or\nany affiliates of the taxpayer, that are paid or reimbursed by the\ntaxpayer. Qualified high-technology expenditures do not include room and\nboard, computer hardware or software not specifically assigned for such\ncourse or courses, late-charges, fines or membership dues and similar\nexpenses. Such qualified expenditures shall not be eligible for the\ncredit provided by this section unless the employee for whom the\nexpenditures are disbursed is continuously employed by the taxpayer in a\nfull-time, full-year position primarily located at a qualified site\nduring the period of such coursework and lasting through at least one\nhundred eighty days after the satisfactory completion of the qualifying\ncourse-work. Qualified high-technology training expenditures shall not\ninclude expenses for in-house or shared training outside of a New York\nstate higher education institution or the use of consultants outside of\ncredit granting courses, whether such consultants function inside of\nsuch higher education institution or not.\n (iv) If a taxpayer relocates from an academic business incubator\nfacility partnered with an accredited post-secondary education\ninstitution located within New York state, which provides space and\nbusiness support services to taxpayers, to another site, the credit\nprovided in this section shall be allowed for all expenditures\nreferenced in subparagraph (iii) of this paragraph paid or incurred in\nthe two preceding taxable years that the taxpayer was located in such an\nincubator facility for employees of the taxpayer who also relocate from\nsaid incubator facility to such New York site and are employed and\nprimarily located by the taxpayer in New York. Such expenditures in the\ntwo preceding years shall be added to the amounts otherwise qualifying\nfor the credit provided by this subdivision that were paid or incurred\nin the taxable year that the taxpayer relocates from such a facility.\nSuch expenditures shall include expenses paid for an eligible employee\nwho is a full-time, full-year employee of said taxpayer during the\ntaxable year that the taxpayer relocated from an incubator facility\nnotwithstanding (i) that such employee was employed full or part-time as\nan officer, staff-person or paid intern of the taxpayer when such\ntaxpayer was located at such incubator facility or (ii) that such\nemployee was not continuously employed when such taxpayer was located at\nthe incubator facility during the one hundred eighty day period referred\nto in subparagraph (iii) of this paragraph, provided such employee\nreceived wages or equivalent income for at least seven hundred fifty\nhours during any twenty-four month period when the taxpayer was located\nat the incubator facility. Such expenditures shall include payments made\nto such employee after the taxpayer has relocated from the incubator\nfacility for qualified expenditures if such payments are made to\nreimburse an employee for expenditures paid by the employee during such\ntwo preceding years. The credit provided under this subparagraph shall\nbe allowed in any taxable year that the taxpayer qualifies as an\neligible taxpayer.\n (v) For purposes of this subdivision the term "academic year" shall\nmean the annual period of sessions of a post-secondary college or\nuniversity.\n (vi) For the purposes of this subdivision the term "academic incubator\nfacility" shall mean a facility providing low-cost space, technical\nassistance, support services and educational opportunities, including\nbut not limited to central services provided by the manager of the\nfacility to the tenants of the facility, to an entity located in New\nYork state. Such entity's primary activity must be an activity described\nin paragraph (b) of subdivision one of section thirty-one hundred two-e\nof the public authorities law, and such entity must be in the formative\nstage of development. The academic incubator facility and the entity\nmust act in partnership with an accredited post-secondary college or\nuniversity located in New York state. An academic incubator facility's\nmission shall be to promote job creation, entrepreneurship, technology\ntransfer, and provide support services to incubator tenants, including,\nbut not limited to, business planning, management assistance,\nfinancial-packaging, linkages to financing services, and coordinating\nwith other sources of assistance.\n (f) An eligible taxpayer may claim credits under this subdivision for\nfour consecutive taxable years, except, if a taxpayer is located in an\nacademic incubator facility and relocates within New York state to a\nnonacademic incubator site, then the taxpayer (i) may make a revocable\nelection to defer the credit provided under this subdivision to the\nfirst taxable year beginning after the taxpayer relocates from an\nacademic incubator facility, and (ii) shall be eligible for such credit\nfor five consecutive taxable years. In no case shall the credit allowed\nby this subdivision to a taxpayer exceed two hundred and fifty thousand\ndollars per year. If the taxpayer is a partner in a partnership or\nshareholder of a New York S corporation, then the limit imposed by the\npreceding sentence shall be applied at the entity level, so that the\naggregate credit allowed to all the partners or shareholders of each\nsuch entity in the taxable year does not exceed two hundred and fifty\nthousand dollars.\n (g) The credit allowed under this subdivision for any taxable year\nshall not reduce the tax due for such year to less than the higher of\nthe amounts prescribed in paragraphs (c) and (d) of subdivision one of\nthis section. However, if the amount of credit allowed under this\nsubdivision for any taxable year reduces the tax to such amount, any\namount of credit not deductible in such taxable year shall be treated as\nan overpayment of tax to be credited or refunded in accordance with the\nprovisions of section ten hundred eighty-six of this chapter. Provided,\nhowever, the provisions of subsection (c) of section ten hundred\neighty-eight of this chapter notwithstanding, no interest shall be paid\nthereon.\n (h) The credit allowed under this subdivision shall not be applicable\nfor taxable years beginning on or after January first, two thousand\ntwelve.\n * NB Repealed January 1, 2015\n * 13. Allowance of minimum tax credit. (a) There shall be allowed as a\ncredit against the tax imposed by this article for any taxable year an\namount equal to the minimum tax credit for such year as provided in\nparagraph (b) of this subdivision. Provided, however, such credit shall\nnot be allowed against a tax which includes a component computed under\nparagraph (b) or (c) of subdivision one of this section.\n (b) For purposes of paragraph (a) of this subdivision, the minimum tax\ncredit for any taxable year is the excess (if any) of--\n (1) the adjusted minimum tax imposed for all prior taxable years\nbeginning after December thirty-first, nineteen hundred eighty-nine,\nover\n (2) the amount allowable as a credit under this paragraph for such\nprior taxable years which was deducted from the taxpayer's tax otherwise\ndue under this article for such years.\n (c) For purposes of this subdivision:\n (1) The term "minimum tax" means the amount prescribed by subparagraph\n(ii) of paragraph (c) of subdivision one of this section.\n (2) The "adjusted minimum tax" for any taxable year is\n (A) the excess (if any) of the amount of the minimum tax for such\ntaxable year over the highest of the amounts prescribed in paragraphs\n(a), (b) and (d) of subdivision one of this section for such year,\nreduced by\n (B) the amount which would be the excess (if any) of (i) the minimum\ntax for such taxable year if the only adjustments and items of tax\npreference taken into account were the item of tax preference provided\nfor in paragraph one of subsection (a) of section fifty-seven of the\ninternal revenue code, relating to depletion, and if such minimum tax\nwere computed without regard to subparagraph three of paragraph (a) of\nsubdivision eight-B of section two hundred eight of this article in the\ncase of any such taxable year beginning after nineteen hundred\neighty-nine, and without regard to subparagraph four of such paragraph\nin the case of any such taxable year beginning after nineteen hundred\nninety-three, over (ii) the highest of the amounts prescribed in\nparagraphs (a), (b) and (d) of subdivision one of this section for such\nyear.\n (d) In no event shall the credit allowed under this subdivision for\nany taxable year reduce the tax due for such year to less than the sum\nof (1) the highest of the amounts prescribed in paragraphs (b), (c) and\n(d) of subdivision one of this section and (2) the amount prescribed in\nparagraph (e) of subdivision one of this section.\n (e) Transition rule for allowance of net operating loss deduction. (1)\nIn determining the credit under this subdivision for any taxable year\nbeginning after nineteen hundred ninety-three and before nineteen\nhundred ninety-nine, the adjusted minimum tax imposed for prior taxable\nyears under subparagraph one of paragraph (b) of this subdivision shall\nbe increased by an amount not to exceed twenty percent of the\npre-nineteen hundred ninety-four net operating loss component.\n (2) In determining the credit under this subdivision for any taxable\nyear beginning after nineteen hundred ninety-eight, the adjusted minimum\ntax imposed for prior taxable years under subparagraph one of paragraph\n(b) of this subdivision shall be increased by any amount of the\npre-nineteen hundred ninety-four net operating loss component which was\nnot deducted from the taxpayer's tax otherwise due under this article\nfor any prior taxable year.\n (3) The pre-nineteen hundred ninety-four net operating loss component\nis the sum of the part of the adjusted minimum tax for each taxable year\nbeginning after nineteen hundred eighty-nine and before nineteen hundred\nninety-four which is attributable to the net operating loss deduction\ndisallowed by reason of the modification under subparagraph three of\nparagraph (a) of subdivision eight-B of section two hundred eight of\nthis article, determined as if paragraph (c) of this subdivision, as\namended by the chapter of the laws of nineteen hundred ninety-four which\nadded this paragraph, were in effect for such years.\n * NB Repealed January 1, 2015\n * 17. Credit for the special additional mortgage recording tax. (a) A\ntaxpayer shall be allowed a credit, to be credited against the tax\nimposed by this article, equal to the amount of the special additional\nmortgage recording tax paid by the taxpayer pursuant to the provisions\nof subdivision one-a of section two hundred fifty-three of this chapter\non mortgages recorded on and after January first, nineteen hundred\nseventy-nine. Provided, however, no credit shall be allowed with respect\nto a mortgage of real property principally improved or to be improved by\none or more structures containing in the aggregate not more than six\nresidential dwelling units, each dwelling unit having its own separate\ncooking facilities, where the real property is located in one or more of\nthe counties comprising the metropolitan commuter transportation\ndistrict and where the mortgage is recorded on or after May first,\nnineteen hundred eighty-seven. Provided further, however, no credit\nshall be allowed with respect to a mortgage of real property principally\nimproved or to be improved by one or more structures containing in the\naggregate not more than six residential dwelling units, each dwelling\nunit having its own separate cooking facilities, where the real property\nis located in the county of Erie and where the mortgage is recorded on\nor after May first, nineteen hundred eighty-seven.\n (b) In no event shall the credit herein provided for be allowed in an\namount which will reduce the tax payable to less than the higher of the\namounts prescribed in paragraphs (c) and (d) of subdivision one of this\nsection. If, however, the amount of credit allowable under this\nsubdivision for any taxable year reduces the tax to such amount, any\namount of credit not deductible in such taxable year may be carried over\nto the following year or years and may be deducted from the taxpayer's\ntax for such year or years. Provided, however, in the case of any such\ncredit attributable to special additional mortgage recording tax which\nis due and paid in any taxable year beginning before January first,\nnineteen hundred eighty-six, pursuant to the provisions of subdivision\none-a of section two hundred fifty-three of this chapter, with respect\nto a mortgage of real property principally improved or to be improved by\none or more structures containing in the aggregate not more than six\nresidential dwelling units, each dwelling unit having its own separate\ncooking facilities, such credit shall not be carried over to taxable\nyears beginning on or after January first, nineteen hundred eighty-six.\nFor taxable years beginning on or after January first, nineteen hundred\neighty-six and before January first, nineteen hundred ninety, and for\ntaxable years beginning on or after January first, nineteen hundred\nninety-four, in lieu of carrying over, to the following year or years,\nthe unused portion of credits attributable to special additional\nmortgage recording tax with respect to such mortgages, which is due and\npaid in any of such taxable years, the taxpayer may elect to treat such\nunused portion as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section ten hundred eighty-six of this\nchapter except that no interest shall be paid on such overpayment.\n * NB Repealed January 1, 2015\n * 18. Research and development tax credit. (a) For taxable years\ncommencing prior to January first, nineteen hundred eighty-seven, a\ntaxpayer shall be allowed a credit against the tax imposed by this\narticle. The amount of the credit shall be ten per cent of the cost or\nother basis for federal income tax purposes of tangible personal\nproperty, and other tangible property, including buildings and\nstructural components of buildings, described in paragraph (b) of this\nsubdivision; acquired, constructed or reconstructed, or erected after\nJune thirtieth, nineteen hundred eighty-two.\n (b) A credit shall be allowed under this section with respect to\ntangible personal property and other tangible property, including\nbuildings and structural components of buildings which are: depreciable\npursuant to section one hundred sixty-seven of the internal revenue\ncode, have a useful life of four years or more, are acquired by purchase\nas defined in section one hundred seventy-nine (d) of the internal\nrevenue code, have a situs in this state and are used or are to be used\nfor purposes of research and development in the experimental or\nlaboratory sense. Such purposes shall not be deemed to include the\nordinary testing or inspection of materials or products for quality\ncontrol, efficiency surveys, management studies, consumer surveys,\nadvertising, promotions, or research in connection with literary,\nhistorical or similar projects.\n (c) A taxpayer shall not be allowed a credit under this subdivision\nwith respect to any property described in paragraphs (a) and (b) of this\nsubdivision, if a deduction is taken for such property under\nsubparagraph three of paragraph (e) of subdivision three of this\nsection, or if a credit is taken pursuant to either subdivision eleven\nor twelve of this section.\n (d) A taxpayer shall not be allowed a credit under this subdivision\nwith respect to tangible personal property and other tangible property,\nincluding buildings and structural components of buildings, which it\nleases to any other person or corporation. For purposes of the preceding\nsentence, any contract or agreement to lease or rent or for a license to\nuse such property shall be considered a lease. Provided, however, in\ndetermining whether a taxpayer shall be allowed a credit under this\nsubdivision with respect to such property, any election made with\nrespect to such property pursuant to the provisions of paragraph eight\nof subsection (f) of section one hundred sixty-eight of the internal\nrevenue code, as such paragraph was in effect for agreements entered\ninto prior to January first, nineteen hundred eighty-four, shall be\ndisregarded.\n (e) The credit allowed under this subdivision for any taxable year\nshall not reduce the tax due for such year to less than the higher of\nthe amounts prescribed in paragraphs (c) and (d) of subdivision one of\nthis section. However, if the amount of credit allowable under this\nsubdivision for any taxable year reduces the tax to such amount, any\namount of credit not deductible in such taxable year may be carried over\nto the following year or years, and may be deducted from the taxpayer's\ntax for such year or years, but in no event shall such credit be carried\nover to taxable years commencing on or after January first, nineteen\nhundred ninety-four.\n (f) (1) With respect to property which is depreciable pursuant to\nsection one hundred sixty-seven of the internal revenue code but is not\nsubject to the provisions of section one hundred sixty-eight of such\ncode and which is disposed of or ceases to be in qualified use prior to\nthe end of the taxable year in which the credit is to be taken, the\namount of the credit shall be that portion of the credit provided for in\nthis subdivision which represents the ratio which the months of\nqualified use bear to the months of useful life. If property on which\ncredit has been taken is disposed of or ceases to be in qualified use\nprior to the end of its useful life, the difference between the credit\ntaken and the credit allowed for actual use must be added back in the\nyear of disposition. Provided, however, if such property is disposed of\nor ceases to be in qualified use after it has been in qualified use for\nmore than twelve consecutive years, it shall not be necessary to add\nback the credit as provided in this subparagraph. The amount of credit\nallowed for actual use shall be determined by multiplying the original\ncredit by the ratio which the months of qualified use bear to the months\nof useful life. For purposes of this subparagraph, useful life of\nproperty shall be the same as the taxpayer uses for depreciation\npurposes when computing his federal income tax liability.\n (2) Except with respect to that property to which subparagraph four of\nthis paragraph applies, with respect to three-year property, as defined\nin subdivision (e) of section one hundred sixty-eight of the internal\nrevenue code, which is disposed of or ceases to be in qualified use\nprior to the end of the taxable year in which the credit is to be taken,\nthe amount of the credit shall be that portion of the credit provided\nfor in this subdivision which represents the ratio which the months of\nqualified use bear to thirty-six. If property on which credit has been\ntaken is disposed of or ceases to be in qualified use prior to the end\nof thirty-six months, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. The amount of credit allowed for actual use shall be\ndetermined by multiplying the original credit by the ratio which the\nmonths of qualified use bear to thirty-six.\n (3) Except with respect to that property to which subparagraph four of\nthis paragraph applies, with respect to property subject to the\nprovisions of section one hundred sixty-eight of the internal revenue\ncode, other than three-year property as defined in subsection (e) of\nsuch section one hundred sixty-eight, which is disposed of or ceases to\nbe in qualified use prior to the end of the taxable year in which the\ncredit is to be taken, the amount of the credit shall be that portion of\nthe credit provided for in this subdivision which represents the ratio\nwhich the months of qualified use bear to sixty. If property on which\ncredit has been taken is disposed of or ceases to be in qualified use\nprior to the end of sixty months, the difference between the credit\ntaken and the credit allowed for actual use must be added back in the\nyear of disposition. The amount of credit allowed for actual use shall\nbe determined by multiplying the original credit by the ratio which the\nmonths of qualified use bear to sixty.\n (4) With respect to any property to which section one hundred\nsixty-eight of the internal revenue code applies, which is a building or\na structural component of a building and which is disposed of or ceases\nto be in qualified use prior to the end of the taxable year in which the\ncredit is to be taken, the amount of the credit shall be that portion of\nthe credit provided for in this subdivision which represents the ratio\nwhich the months of qualified use bear to the total number of months\nover which the taxpayer chooses to deduct the property under the\ninternal revenue code. If property on which credit has been taken is\ndisposed of or ceases to be in qualified use prior to the end of the\nperiod over which the taxpayer chooses to deduct the property under the\ninternal revenue code, the difference between the credit taken and the\ncredit allowed for actual use must be added back in the year of\ndisposition. Provided, however, if such property is disposed of or\nceases to be in qualified use after it has been in qualified use for\nmore than twelve consecutive years, it shall not be necessary to add\nback the credit as provided in this subparagraph. The amount of credit\nallowed for actual use shall be determined by multiplying the original\ncredit by the ratio which the months of qualified use bear to the total\nnumber of months over which the taxpayer chooses to deduct the property\nunder the internal revenue code.\n * NB Repealed January 1, 2015\n * 19. Empire zone wage tax credit. (a) A taxpayer shall be allowed a\ncredit, to be computed as hereinafter provided, against the tax imposed\nby this article where the taxpayer has been certified pursuant to\narticle eighteen-B of the general municipal law. The amount of such\ncredit shall be as prescribed by paragraph (d) hereof.\n (b) For the purposes of this subdivision, the following terms shall\nhave the following meanings:\n (1) "Empire zone wages" means wages paid by the taxpayer for full-time\nemployment, other than to general executive officers, during the taxable\nyear in an area designated or previously designated as an empire zone or\nzone equivalent area pursuant to article eighteen-B of the general\nmunicipal law, where such employment is in a job created in the area (i)\nduring the period of its designation as an empire zone, (ii) within four\nyears of the expiration of such designation, or (iii) during the ten\nyear period immediately following the date of designation as a zone\nequivalent area, provided, however, that if the taxpayer's certification\nunder article eighteen-B of the general municipal law is revoked with\nrespect to an empire zone or zone equivalent area, any wages paid by the\ntaxpayer, on or after the effective date of such decertification, for\nemployment in such zone shall not constitute empire zone wages.\n (2) "Targeted employee" means a New York resident who receives empire\nzone wages and who is (A) an eligible individual under the provisions of\nthe targeted jobs tax credit (section fifty-one of the internal revenue\ncode), (B) eligible for benefits under the provisions of the workforce\ninvestment act as a dislocated worker or low-income individual (P.L.\n105-220, as amended), (C) a recipient of public assistance benefits, (D)\nan individual whose income is below the most recently established\npoverty rate promulgated by the United States department of commerce, or\na member of a family whose family income is below the most recently\nestablished poverty rate promulgated by the appropriate federal agency\nor (E) an honorably discharged member of any branch of the armed forces\nof the United States.\n An individual who satisfies the criteria set forth in clause (A), (B)\nor (D) at the time of initial employment in the job with respect to\nwhich the credit is claimed, or who satisfies the criterion set forth in\nclause (C) at such time or at any time within the previous two years,\nshall be a targeted employee so long as such individual continues to\nreceive empire zone wages.\n (3) "Average number of individuals, excluding general executive\nofficers, employed full-time" shall be computed by ascertaining the\nnumber of such individuals employed by the taxpayer on the thirty-first\nday of March, the thirtieth day of June, the thirtieth day of September\nand the thirty-first day of December during each taxable year or other\napplicable period, by adding together the number of such individuals\nascertained on each of such dates and dividing the sum so obtained by\nthe number of such dates occurring within such taxable year or other\napplicable period.\n (c) The credit provided for herein shall be allowed only where the\naverage number of individuals, excluding general executive officers,\nemployed full-time by the taxpayer in (A) the state and (B) the empire\nzone or area previously constituting such zone or zone equivalent area,\nduring the taxable year exceeds the average number of such individuals\nemployed full-time by the taxpayer in (A) the state and (B) such zone or\narea subsequently or previously constituting such zone or such zone\nequivalent area, respectively, during the four years immediately\npreceding the first taxable year in which the credit is claimed with\nrespect to such zone or area. Where the taxpayer provided full-time\nemployment within (A) the state or (B) such zone or area during only a\nportion of such four-year period, then for purposes of this paragraph\nthe term "four years" shall be deemed to refer instead to such portion,\nif any.\n The credit shall be allowed only with respect to the first taxable\nyear during which payments of empire zone wages are made and the\nconditions set forth in this paragraph are satisfied, and with respect\nto each of the four taxable years next following (but only, with respect\nto each of such years, if such conditions are satisfied), in accordance\nwith paragraph (d) of this subdivision. Subsequent certifications of the\ntaxpayer pursuant to article eighteen-B of the general municipal law, at\nthe same or a different location in the same empire zone or zone\nequivalent area or at a location in a different empire zone or zone\nequivalent area, shall not extend the five taxable year time limitation\non the allowance of the credit set forth in the preceding sentence.\nProvided, further, however, that no credit shall be allowed with respect\nto any taxable year beginning more than four years following the taxable\nyear in which designation as an empire zone expired or more than ten\nyears after the designation as a zone equivalent area. In lieu of the\nfive year time period described in the preceding sentences of this\nparagraph for the allowance of this credit, with respect to a business\nenterprise which qualifies as a new business pursuant to paragraph five\nof subdivision (j) of section fourteen of this chapter, the credit shall\nbe allowed with respect to the first taxable year of the business\nenterprise's business tax benefit period, as determined pursuant to\nparagraph one-a of subdivision (a) of section fourteen of this chapter,\nduring which payments of empire zone wages are made and with respect to\neach of the four taxable years next following, in accordance with\nparagraph (d) of this subdivision.\n (d) The amount of the credit shall equal the sum of (1) the product of\nthree thousand dollars and the average number of individuals (excluding\ngeneral executive officers) employed full-time by the taxpayer, computed\npursuant to the provisions of subparagraph three of paragraph (b) of\nthis subdivision, who\n (A) received empire zone wages for more than half of the taxable year,\n (B) received, with respect to more than half of the period of\nemployment by the taxpayer during the taxable year, an hourly wage which\nwas at least one hundred thirty-five percent of the minimum wage\nspecified in section six hundred fifty-two of the labor law, and\n (C) are targeted employees; and\n (2) the product of fifteen hundred dollars and the average number of\nindividuals (excluding general executive officers and individuals\ndescribed in subparagraph one of this paragraph) employed full-time by\nthe taxpayer, computed pursuant to the provisions of subparagraph three\nof paragraph (b) of this subdivision, who received empire zone wages for\nmore than half of the taxable year.\n Provided, further, however, that the credit provided for herein with\nrespect to the taxable year, and carryovers of such credit to the\ntaxable year, deducted from the tax otherwise due, may not, in the\naggregate, exceed fifty percent of the tax imposed under section two\nhundred nine computed without regard to any credit provided for by this\narticle.\n (3) For purposes of calculating the amount of the credit, individuals\nemployed within an empire zone or zone equivalent area within the\nimmediately preceding sixty months by a related person, as such term is\ndefined in subparagraph (c) of paragraph three of subsection (b) of\nsection four hundred sixty-five of the internal revenue code, shall not\nbe included in the average number of individuals described in\nsubparagraph one or subparagraph two of this paragraph, unless such\nrelated person was never allowed a credit under this subdivision with\nrespect to such employees. For the purposes of this subparagraph, a\n"related person" shall include an entity which would have qualified as a\n"related person" to the taxpayer if it had not been dissolved,\nliquidated, merged with another entity or otherwise ceased to exist or\noperate.\n (4) If a taxpayer is certified in an empire zone designated under\nsubdivision (a) or (d) of section nine hundred fifty-eight of the\ngeneral municipal law, the dollar amounts specified under subparagraph\none or two of this paragraph shall be increased by five hundred dollars\nfor each qualifying individual under such subparagraph who received,\nduring the taxable year, wages in excess of forty thousand dollars.\n (5) The requirement in this paragraph that an employee must receive\nempire zone wages for more than half the taxable year shall not apply in\nthe first taxable year of a taxpayer satisfying the criteria set forth\nin this subparagraph. In such a case, the credit allowed under this\nsubdivision shall be computed by utilizing the number of individuals\n(excluding general executive officers) employed full time by the\ntaxpayer on the last day of its first taxable year. A taxpayer shall\nsatisfy the following criteria: (A) such taxpayer acquired real or\ntangible personal property during its first taxable year from an entity\nwhich is not a related person (as such term is defined in subdivision\n(g) of section fourteen of this chapter); (B) the first taxable year of\nsuch taxpayer shall be a short taxable year of not more than seven\nmonths in duration; and (C) the number of individuals employed full-time\non the last day of such first taxable year shall be at least one hundred\nninety and substantially all of such individuals must have been\npreviously employed by the entity from whom such taxpayer purchased its\nassets.\n (e) The credit and carryovers of such credit allowed under this\nsubdivision for any taxable year shall not, in the aggregate, reduce the\ntax due for such year to less than the higher of the amounts prescribed\nin paragraphs (c) and (d) of subdivision one of this section. However,\nif the amount of credit or carryovers of such credit, or both, allowed\nunder this subdivision for any taxable year reduces the tax to such\namount, or if any part of the credit or carryovers of such credit may\nnot be deducted from the tax otherwise due by reason of the final\nsentence of paragraph (d) hereof, any amount of credit or carryovers of\nsuch credit thus not deductible in such taxable year may be carried over\nto the following year or years and may be deducted from the tax for such\nyear or years. In lieu of such carryover, any such taxpayer which\nqualifies as a new business under paragraph (j) of subdivision twelve of\nthis section or a taxpayer which is approved as the owner of a qualified\ninvestment project or a significant capital investment project pursuant\nto subdivision (w) of section nine hundred fifty-nine of the general\nmunicipal law may elect, on its report for its taxable year with respect\nto which such credit is allowed, to treat fifty percent of the amount of\nsuch carryover as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section ten hundred eighty-six of this\nchapter. Provided, however, in the case of such owner of a qualified\ninvestment project or significant capital investment project, only fifty\npercent of the amount of such carryover which is attributable to the\ncredit allowed under this subdivision for individuals employed at such\nproject shall be allowed to be credited or refunded. Provided, further,\nhowever, the provisions of subsection (c) of section ten hundred\neighty-eight of this chapter notwithstanding, no interest shall be paid\nthereon.\n (e-1) Any carry over of a credit from prior taxable years will not be\nallowed if an empire zone retention certificate is not issued pursuant\nto subdivision (w) of section nine hundred fifty-nine of the general\nmunicipal law to the empire zone enterprise which is the basis of the\ncredit.\n (f) For the interaction of this subdivision and subdivision twelve-D\nof this section (employment incentive credit), see paragraph (b) of such\nsubdivision twelve-D.\n * NB Repealed January 1, 2015\n * 20. Empire zone capital tax credit. (a) A taxpayer shall be allowed\na credit against the tax imposed by this article. The amount of the\ncredit shall be equal to twenty-five percent of the sum of the following\ninvestments and contributions made during the taxable year and certified\nby the commissioner of economic development: (1) for taxable years\nbeginning before January first, two thousand five, qualified investments\nmade in, or contributions in the form of donations made to, one or more\nempire zone capital corporations established pursuant to section nine\nhundred sixty-four of the general municipal law prior to January first,\ntwo-thousand five, (2) qualified investments in certified zone\nbusinesses which during the twelve month period immediately preceding\nthe month in which such investment is made employed full-time within the\nstate an average number of individuals, excluding general executive\nofficers, of two hundred fifty or fewer, computed pursuant to the\nprovisions of subparagraph three of paragraph (b) of subdivision\nnineteen of this section, except for investments made by or on behalf of\nan owner of the business, including, but not limited to, a stockholder,\npartner or sole proprietor, or any related person, as defined in\nsubparagraph (C) of paragraph three of subsection (b) of section four\nhundred sixty-five of the internal revenue code, and (3) contributions\nof money to community development projects as defined in regulations\npromulgated by the commissioner of economic development. "Qualified\ninvestments" means the contribution of property to a corporation in\nexchange for original issue capital stock or other ownership interest,\nthe contribution of property to a partnership in exchange for an\ninterest in the partnership, and similar contributions in the case of a\nbusiness entity not in corporate or partnership form in exchange for an\nownership interest in such entity. The total amount of credit allowable\nto a taxpayer under this provision for all years, taken in the\naggregate, shall not exceed three hundred thousand dollars, and shall\nnot exceed one hundred thousand dollars with respect to the investments\nand contributions described in each of subparagraphs one, two and three\nof this paragraph.\n (b) In no event shall the credit and carryover of such credit allowed\nunder this subdivision for any taxable year, in the aggregate, reduce\nthe tax due for such year to less than the higher of the amounts\nprescribed in paragraphs (c) and (d) of subdivision one of this section.\nHowever, if the amount of credit or carryovers of such credit, or both,\nallowed under this subdivision for any taxable year reduces the tax to\nsuch amount, or if any part of the credit or carryovers of such credit\nmay not be deducted from the tax otherwise due by reason of the final\nsentence of this paragraph, any amount of credit or carryovers of such\ncredit thus not deductible in such taxable year may be carried over to\nthe following year or years and may be deducted from the tax for such\nyear or years. In addition, the amount of such credit, and carryovers of\nsuch credit to the taxable year, deducted from the tax otherwise due may\nnot, in the aggregate, exceed fifty percent of the tax imposed under\nsection two hundred nine computed without regard to any credit provided\nfor by this section.\n (b-1) Any carry over of a credit from prior taxable years will not be\nallowed to an empire zone enterprise which is the basis of the credit,\nif an empire zone retention certificate is not issued to such entity\npursuant to subdivision (w) of section nine hundred fifty-nine of the\ngeneral municipal law.\n (c) Where the stock, partnership interest or other ownership interest\narising from a qualified investment as described in subparagraphs one\nand two of paragraph (a) of this subdivision is disposed of, the\ntaxpayer's entire net income shall be computed, pursuant to regulations\npromulgated by the commissioner, so as to properly reflect the reduced\ncost thereof arising from the application of the credit provided for\nherein.\n (d) (1) Where a taxpayer sells, transfers or otherwise disposes of\ncorporate stock, a partnership interest or other ownership interest\narising from the making of a qualified investment which was the basis,\nin whole or in part, for the allowance of the credit provided for under\nthis subdivision, or where a contribution or investment which was the\nbasis for such allowance is in any manner, in whole or in part,\nrecovered by such taxpayer, and such disposition or recovery occurs\nduring the taxable year or within thirty-six months from the close of\nthe taxable year with respect to which such credit is allowed,\nsubparagraph two of this paragraph shall apply.\n (2) The taxpayer shall add back with respect to the taxable year in\nwhich the disposition or recovery described in subparagraph one occurred\nthe required portion of the credit originally allowed.\n (3) The required portion of the credit originally allowed shall be the\nproduct of (A) the portion of such credit attributable to the property\ndisposed of or the payment or contribution recovered and (B) the\napplicable percentage.\n (4) The applicable percentage shall be:\n (A) one hundred percent, if the disposition or recovery occurs within\nthe taxable year with respect to which the credit is allowed or within\ntwelve months of the end of such taxable year,\n (B) sixty-seven percent, if the disposition or recovery occurs more\nthan twelve but not more than twenty-four months after the end of the\ntaxable year with respect to which the credit is allowed, or\n (C) thirty-three percent, if the disposition or recovery occurs more\nthan twenty-four but not more than thirty-six months after the end of\nthe taxable year with respect to which the credit is allowed.\n (f) If the designation of an area as an empire zone is no longer in\neffect because the designations of all empire zones pursuant to article\neighteen-B of the general municipal law have expired, a taxpayer that\nhas made a contribution of money on or before the day immediately\npreceding the day the empire zones expired to a community development\nproject approved by the commissioner of economic development shall be\ndeemed eligible to claim the empire zone capital credit under\nsubparagraph three of paragraph (a) of this subdivision for additional\ncontributions made prior to April first, two thousand fourteen and\ncertified by the commissioner of economic development to that community\ndevelopment project as payment of a commitment made by the taxpayer to\nthat community development project before the empire zones expired.\n * NB Repealed January 1, 2015\n * 21. Credits of New York S corporations. Notwithstanding the\nprovisions of this section, no carryover of credit allowable in a New\nYork C year shall be deducted from the tax otherwise due under this\narticle in a New York S year, and no credit allowable in a New York S\nyear, or carryover of such credit, shall be deducted from the tax\nimposed by this article. However, a New York S year shall be treated as\na taxable year for purposes of determining the number of taxable years\nto which a credit may be carried over under this section.\nNotwithstanding the first sentence of this subdivision, however, the\ncredit for the special additional mortgage recording tax shall be\nallowed as provided in subdivision seventeen of this section for any\nsuch tax which is due and paid in taxable years beginning on or after\nJanuary first, nineteen hundred ninety-four, and the carryover of any\nsuch credit shall be determined without regard to whether the credit is\ncarried from a New York C year to a New York S year or vice-versa.\n * NB Repealed January 1, 2015\n * 21-a. Credit for servicing certain mortgages. Every mortgage banker\nmeeting the requirements of the state of New York mortgage agency\napplicable to the servicing of mortgages acquired by such agency\npursuant to the state of New York mortgage agency act and licensed under\narticle twelve-D of the banking law, which shall have entered into a\ncontract with the state of New York mortgage agency to service mortgages\nacquired by such agency pursuant to the state of New York mortgage\nagency act, shall have credited to it annually to apply upon or in lieu\nof the payment of any tax to which it may be subject under this article\nan amount equal to two and ninety-three one hundredths per centum of the\ntotal principal and interest collected by the mortgage banker during its\ntaxable year on each such mortgage secured by a lien on real estate\nimproved by a one-family to four-family residential structure and an\namount equal to the interest collected by the mortgage banker during its\ntaxable year on each such mortgage secured by a lien on real property\nimproved by a structure occupied as the residence of five or more\nfamilies living independently of each other, multiplied by a fraction of\nthe denominator of which shall be the interest rate payable on the\nmortgage (computed to five decimal places) and the numerator of which\nshall be .00125 in the case of such a mortgage acquired by such agency\nfor less than one million dollars, and .00100 in the case of such a\nmortgage acquired by such agency for one million dollars or more;\nprovided, however, that there shall in no case be credited to any such\nbank an amount in excess of the amount due from such bank for taxes\npayable to the state under this article for the taxable year for which\nsuch credit is given. In computing such tax credit for the servicing of\nmortgages on one-family to four-family residential structures, the\nmortgage banker shall be entitled to no credit for the collection of\ncurtailments or payments in discharge of any such mortgage. For the\npurposes of this section, (a) a "curtailment" shall mean amounts paid by\nmortgagors (1) in excess of the monthly constant due during the month of\ncollection and (2) in reduction of the unpaid principal balance of the\nmortgage; in the absence of clear evidence to the contrary, amounts paid\nin excess of the monthly constant due during the month of collection\nshall be deemed to be in reduction of the unpaid principal balance of\nthe mortgage; and (b) "monthly constant" shall mean the amount of\nprincipal and interest which is due and payable according to the\nmortgage documents on each periodic payment date.\n * NB Repealed January 1, 2015\n * 22. Agricultural property tax credit. (a) General. In the case of a\ntaxpayer which is an eligible farmer or an eligible farmer who has paid\ntaxes pursuant to a land contract, there shall be allowed a credit for\nthe allowable school district property taxes. The term "allowable school\ndistrict property taxes" means the school district property taxes paid\nduring the taxable year on qualified agricultural property, subject to\nthe acreage limitation provided in paragraph (e) of this subdivision and\nthe income limitation provided in paragraph (f) of this subdivision.\n (b) Eligible farmer. For purposes of this subdivision, the term\n"eligible farmer" means a taxpayer whose federal gross income from\nfarming for the taxable year is at least two-thirds of excess federal\ngross income. The term "eligible farmer" also includes a corporation\nother than the taxpayer of record for qualified agricultural land which\nhas paid the school district property taxes on such land pursuant to a\ncontract for the future purchase of such land; provided that such\ncorporation has a federal gross income from farming for the taxable year\nwhich is at least two-thirds of excess federal gross income; and\nprovided further that, in determining such income eligibility, a\ntaxpayer may, for any taxable year, use the average of such federal\ngross income from farming for that taxable year and such income for the\ntwo consecutive taxable years immediately preceding such taxable year.\nExcess federal gross income means the amount of federal gross income\nfrom all sources for the taxable year in excess of thirty thousand\ndollars. For the purposes of this paragraph, payments from the state's\nfarmland protection program, administered by the department of\nagriculture and markets, shall be included as federal gross income from\nfarming for otherwise eligible farmers.\n (c) School district property taxes. For purposes of this subdivision,\nthe term "school district property taxes" means all property taxes,\nspecial ad valorem levies and special assessments, exclusive of\npenalties and interest, levied for school district purposes on the\nqualified agricultural property owned by the taxpayer.\n (d) Qualified agricultural property. For purposes of this subdivision,\nthe term "qualified agricultural property" means land located in this\nstate which is used in agricultural production, and land improvements,\nstructures and buildings (excluding buildings used for the taxpayer's\nresidential purpose) located on such land which are used or occupied to\ncarry out such production. Qualified agricultural property also includes\nland set aside or retired under a federal supply management or soil\nconservation program or land that at the time it becomes subject to a\nconservation easement, as defined under subdivision thirty-eight of this\nsection, met the requirements under this paragraph.\n (e) Acreage limitation. (1) Eligible taxes. In the event that the\nqualified agricultural property owned by the taxpayer includes land in\nexcess of the base acreage as provided in this paragraph, the amount of\nschool district property taxes eligible for credit under this\nsubdivision shall be that portion of the school district property taxes\nwhich bears the same ratio to the total school district property taxes\npaid during the taxable year, as the acreage allowable under this\nparagraph bears to the entire acreage of such land.\n (2) Allowable acreage. The allowable acreage is the sum of the base\nacreage set forth below and fifty percent of the incremental acreage.\nThe incremental acreage is the excess of the entire acreage of qualified\nagricultural land owned by the taxpayer over the base acreage. Except as\nprovided in subparagraph three of this paragraph:\nFor taxable years beginning: The base acreage is:\n in 1997 100\n after 1997 but before 2006 250\n 2006 and thereafter 350\nFor taxable years beginning after two thousand, the total base acreage\nmay be increased by any acreage enrolled or participating during the\ntaxable year in a federal environmental conservation acreage reserve\nprogram pursuant to title three of the federal agriculture improvement\nand reform act of nineteen hundred ninety-six.\n (3) Base acreage of related persons. Where the taxpayer and one or\nmore related persons each own qualified agricultural property on the\nfirst day of March of any year, the base acreage under subparagraph two\nof this paragraph shall be divided equally and allotted among the\ntaxpayer and such related persons, and the taxpayer's base acreage for\nthe taxable year which includes such March first shall be limited to its\nallotted share. Provided, however, if the taxpayer and all such related\npersons consent (at such time and in such manner as the commissioner may\nprescribe) to an unequal division, the taxpayer's base acreage for such\ntaxable year shall be limited to its allotted share under such unequal\ndivision.\n (4) Related persons. (A) For purposes of subparagraph three of this\nparagraph, the term "related person" means:\n (i) a corporation subject to tax under this article, where the\ntaxpayer and the corporation are members of the same controlled group,\nas defined in section 267(f) of the internal revenue code;\n (ii) an individual, partnership, estate or trust, where more than\nfifty percent in value of the outstanding stock of the taxpayer is\nowned, directly or indirectly, by or for such individual, partnership,\nestate or trust or by or for the grantor of such trust;\n (iii) a corporation subject to tax under this article, or a\npartnership, estate or trust, if the same person owns more than fifty\npercent in value of the outstanding stock of the taxpayer and more than\nfifty percent in value of the outstanding stock of the corporation, or\nmore than fifty percent of the capital or profits interest in the\npartnership, or more than fifty percent of the beneficial interest in\nthe estate or trust;\n (iv) a partnership, estate or trust of which the taxpayer owns,\ndirectly or indirectly, more than fifty percent of the capital, profits\nor beneficial interest.\n (B) In determining whether a person is a related person within the\nmeaning of this subparagraph:\n (i) stock owned, directly or indirectly, by or for a corporation,\npartnership, estate or trust shall be considered as being owned\nproportionately by or for its shareholders, partners or beneficiaries;\n (ii) an individual shall be considered as owning the stock owned,\ndirectly or indirectly, by or for his spouse;\n (iii) stock constructively owned by a person by reason of the\napplication of item (i) of this clause shall, for the purpose of\napplying item (i) or (ii) of this clause, be treated as actually owned\nby such person.\n (f) Income limitation. (1) In the event that the modified entire net\nincome of the taxpayer exceeds one hundred thousand dollars for taxable\nyears beginning before two thousand six or two hundred thousand dollars\nfor taxable year two thousand six and thereafter, the allowable school\ndistrict property taxes under paragraph (a) of this subdivision shall be\nthe eligible taxes under subparagraph one of paragraph (e) of this\nsubdivision reduced by the product of the amount of such eligible taxes\nand a percentage, such percentage to be determined by multiplying one\nhundred percent by a fraction, the numerator of which is the lesser of\nfifty thousand dollars for taxable years before two thousand six or one\nhundred thousand dollars for taxable year two thousand six and\nthereafter or the excess of the taxpayer's modified entire net income\nover one hundred thousand dollars for taxable years beginning before two\nthousand six or two hundred thousand dollars for taxable year two\nthousand six and thereafter and the denominator of which is fifty\nthousand dollars for taxable years beginning before two thousand six or\none hundred thousand dollars for taxable year two thousand six and\nthereafter. For purposes of the preceding sentence, the term "eligible\ntaxes", where the acreage limitation of paragraph (e) of this\nsubdivision does not apply, shall mean the total school district\nproperty taxes paid during the taxable year.\n (2) The term "modified entire net income" means the entire net income\nfor the taxable year reduced by the amount of principal paid on farm\nindebtedness during the taxable year. The term "farm indebtedness" means\ndebt incurred or refinanced which is secured by farm property, where the\nproceeds of the debt are disbursed for expenditures incurred in the\nbusiness of farming.\n (g) In no event shall the credit provided herein be allowed in an\namount which will reduce the tax payable to less than the higher of the\namounts prescribed in paragraphs (c) and (d) of subdivision one of this\nsection. If, however, the amount of credit allowable under this\nsubdivision for any taxable year reduces the tax to such amount, any\namount of credit not deductible in such taxable year may be carried over\nto the following year or years and may be deducted from the taxpayer's\ntax for such year or years. Provided, however, in lieu of carrying over\nthe unused portion of such credit, the taxpayer may elect to treat such\nunused portion as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section ten hundred eighty-six of this\nchapter except that no interest shall be paid on such overpayment.\n (h) Nonqualified use. (1) No credit in conversion year. In the event\nthat qualified agricultural property is converted by the taxpayer to\nnonqualified use, credit under this subdivision shall not be allowed\nwith respect to such property for the taxable year of conversion (the\nconversion year).\n (2) Credit recapture. If the conversion by the taxpayer of qualified\nagricultural property to nonqualified use occurs during the period of\nthe two taxable years following the taxable year for which the credit\nunder this subdivision was first claimed with respect to such property,\nthe credit allowed with respect to such property for the taxable years\nprior to the conversion year must be added back in the conversion year.\nWhere the property converted includes land, and where the conversion is\nof only a portion of such land, the credit allowed with respect to the\nproperty converted shall be determined by multiplying the entire credit\nunder this subdivision for the taxable years prior to the conversion\nyear by a fraction, the numerator of which is the acreage converted and\nthe denominator of which is the entire acreage of such land owned by the\ntaxpayer immediately prior to the conversion.\n (3) Exception to recapture. Subparagraph two of this paragraph shall\nnot apply to the conversion of property where the conversion is by\nreason of involuntary conversion, within the meaning of section one\nthousand thirty-three of the internal revenue code.\n (4) Conversion to nonqualified use. For purposes of this paragraph, a\nsale or other disposition of qualified agricultural property alone shall\nnot constitute a conversion to a nonqualified use.\n (i) Special rules. For purposes of this subdivision, the term "federal\ngross income from farming" shall include gross income from the\nproduction of maple syrup, cider, Christmas trees derived from a managed\nChristmas tree operation whether dug for transplanting or cut from the\nstump, or from a commercial horse boarding operation as defined in\nsubdivision thirteen of section three hundred one of the agriculture and\nmarkets law, or from the sale of wine from a licensed farm winery as\nprovided for in article six of the alcoholic beverage control law, or\nfrom the sale of cider from a licensed farm cidery as provided for in\nsection fifty-eight-c of the alcoholic beverage control law.\n (j) Election to deem gross income of New York C corporation to\nshareholders. For purposes of this subdivision, federal gross income\nfrom farming shall be zero for any taxable year of a New York C\ncorporation for which the election under paragraph nine of subsection\n(n) of section six hundred six of this chapter is in effect.\n * NB Repealed January 1, 2015\n * 23. Credit for employment of persons with disabilities. (a)\nAllowance of credit. A taxpayer shall be allowed a credit, to be\ncomputed as hereinafter provided, against the tax imposed by this\narticle, for employing within the state a qualified employee.\n (b) Qualified employee. A qualified employee is an individual:\n (1) who is certified by the education department, or in the case of an\nindividual who is blind or visually handicapped, by the state agency\nresponsible for provision of vocational rehabilitation services to the\nblind and visually handicapped: (i) as a person with a disability which\nconstitutes or results in a substantial handicap to employment and (ii)\nas having completed or as receiving services under an individualized\nwritten rehabilitation plan approved by the education department or\nother state agency responsible for providing vocational rehabilitation\nservices to such individual; and\n (2) who has worked on a full-time basis for the employer who is\nclaiming the credit for at least one hundred eighty days or four hundred\nhours.\n (c) Amount of credit. Except as provided in paragraph (d) of this\nsubdivision, the amount of credit shall be thirty-five percent of the\nfirst six thousand dollars in qualified first-year wages earned by each\nqualified employee. "Qualified first-year wages" means wages paid or\nincurred by the taxpayer during the taxable year to qualified employees\nwhich are attributable, with respect to any such employee, to services\nrendered during the one-year period beginning with the day the employee\nbegins work for the taxpayer.\n (d) Credit where federal work opportunity tax credit applies. With\nrespect to any qualified employee whose qualified first-year wages under\nparagraph (c) of this subdivision also constitute qualified first-year\nwages for purposes of the work opportunity tax credit for vocational\nrehabilitation referrals under section fifty-one of the internal revenue\ncode, the amount of credit under this subdivision shall be thirty-five\npercent of the first six thousand dollars in qualified second-year wages\nearned by each such employee. "Qualified second-year wages" means wages\npaid or incurred by the taxpayer during the taxable year to qualified\nemployees which are attributable, with respect to any such employee, to\nservices rendered during the one-year period beginning one year after\nthe employee begins work for the taxpayer.\n (e) Carryover. The credit allowed under this subdivision for any\ntaxable year shall not reduce the tax due for such year to less than the\namount prescribed in paragraph (d) of subdivision one of this section.\nHowever, if the amount of credit allowable under this subdivision for\nany taxable year reduces the tax to such amount, any amount of credit\nnot deductible in such taxable year may be carried over to the following\nyear or years, and may be deducted from the taxpayer's tax for such year\nor years.\n (f) Coordination with federal work opportunity tax credit. The\nprovisions of sections fifty-one and fifty-two of the internal revenue\ncode, as such sections applied on October first, nineteen hundred\nninety-six, that apply to the federal work opportunity tax credit for\nvocational rehabilitation referrals shall apply to the credit under this\nsubdivision to the extent that such sections are consistent with the\nspecific provisions of this subdivision, provided that in the event of a\nconflict the provisions of this subdivision shall control.\n * NB Repealed January 1, 2015\n * 23-a. Hire a vet credit. (a) Allowance of credit. For taxable years\nbeginning on or after January first, two thousand fifteen and before\nJanuary first, two thousand seventeen, a taxpayer shall be allowed a\ncredit, to be computed as provided in this subdivision, against the tax\nimposed by this article, for hiring and employing, for not less than one\nyear and for not less than thirty-five hours each week, a qualified\nveteran within the state. The taxpayer may claim the credit in the year\nin which the qualified veteran completes one year of employment by the\ntaxpayer. If the taxpayer claims the credit allowed under this\nsubdivision, the taxpayer may not use the hiring of a qualified veteran\nthat is the basis for this credit in the basis of any other credit\nallowed under this article.\n (b) Qualified veteran. A qualified veteran is an individual:\n (1) who served on active duty in the United States army, navy, air\nforce, marine corps, coast guard or the reserves thereof, or who served\nin active military service of the United States as a member of the army\nnational guard, air national guard, New York guard or New York naval\nmilitia; who was released from active duty by general or honorable\ndischarge after September eleventh, two thousand one;\n (2) who commences employment by the qualified taxpayer on or after\nJanuary first, two thousand fourteen, and before January first, two\nthousand sixteen; and\n (3) who certifies by signed affidavit, under penalty of perjury, that\nhe or she has not been employed for thirty-five or more hours during any\nweek in the one hundred eighty day period immediately prior to his or\nher employment by the taxpayer.\n (c) Employer prohibition. An employer shall not discharge an employee\nand hire a qualifying veteran solely for the purpose of qualifying for\nthis credit.\n (d) Amount of credit. The amount of the credit shall be ten percent of\nthe total amount of wages paid to the qualified veteran during the\nveteran's first full year of employment. Provided, however, that, if the\nqualified veteran is a disabled veteran, as defined in paragraph (b) of\nsubdivision one of section eighty-five of the civil service law, the\namount of the credit shall be fifteen percent of the total amount of\nwages paid to the qualified veteran during the veteran's first full year\nof employment. The credit allowed pursuant to this subdivision shall not\nexceed in any taxable year, five thousand dollars for any qualified\nveteran and fifteen thousand dollars for any qualified veteran who is a\ndisabled veteran.\n (e) Carryover. The credit allowed under this subdivision for any\ntaxable year shall not reduce the tax due for such year to less than the\namount prescribed in paragraph (d) of subdivision one of this section.\nHowever, if the amount of credit allowable under this subdivision for\nany taxable year reduces the tax to such amount, any amount of credit\nnot deductible in such taxable year may be carried over to the following\nthree years and may be deducted from the taxpayer's tax for such year or\nyears.\n * NB Repealed January 1, 2015\n * 24. Alternative fuels and electric vehicle recharging property\ncredit. (a) General. A taxpayer shall be allowed a credit, to be\ncomputed as hereinafter provided, against the tax imposed by this\narticle for alternative fuel vehicle refueling and electric vehicle\nrecharging property placed in service during the taxable year.\n (b) Alternative fuel vehicle refueling property and electric vehicle\nrecharging property. The credit under this subdivision for alternative\nfuel vehicle refueling and electric vehicle recharging property shall\nequal for each installation of property the lesser of five thousand\ndollars or fifty percent of the cost of any such property:\n (i) which is located in this state;\n (ii) which constitutes alternative fuel vehicle refueling property or\nelectric vehicle recharging property; and\n (iii) for which none of the cost has been paid for from the proceeds\nof grants, including grants from the New York state energy research and\ndevelopment authority or the New York power authority.\n (c) Definitions. (i) The term "alternative fuel vehicle refueling\nproperty" means all of the equipment needed to dispense any fuel at\nleast eighty-five percent of the volume of which consists of one or more\nof the following: natural gas, liquified natural gas, liquified\npetroleum, or hydrogen.\n (ii) The term "electric vehicle recharging property" means all of the\nequipment needed to convey electric power from the electric grid or\nanother power source to an onboard vehicle energy storage system.\n (d) Carryovers. In no event shall the credit under this subdivision be\nallowed in an amount which will reduce the tax payable to less than the\nhigher of the amounts prescribed in paragraphs (c) and (d) of\nsubdivision one of this section. Provided, however, that if the amount\nof credit allowable under this subdivision for any taxable year reduces\nthe tax to such amount, any amount of credit not deductible in such\ntaxable year may be carried over to the following year or years and may\nbe deducted from the taxpayer's tax for such year or years.\n (e) Credit recapture. If, at any time before the end of its recovery\nperiod, alternative fuel vehicle refueling or electric vehicle\nrecharging property ceases to be qualified, a recapture amount must be\nadded back in the year in which such cessation occurs.\n (A) Alternative fuel vehicle refueling or electric vehicle recharging\nproperty ceases to be qualified if:\n (1) the property no longer qualifies as alternative fuel vehicle\nrefueling property or electric vehicle recharging property; or\n (2) fifty percent or more of the use of the property in a taxable year\nis other than in a trade or business in this state; or\n (3) the taxpayer receiving the credit under this subdivision sells or\ndisposes of the property and knows or has reason to know that the\nproperty will be used in a manner described in clauses one and two of\nthis subparagraph.\n (B) Recapture amount. The recapture amount is equal to the credit\nallowable under this subdivision multiplied by a fraction, the numerator\nof which is the total recovery period for the property minus the number\nof recovery years prior to, but not including, the recapture year, and\nthe denominator of which is the total recovery period.\n (f) Termination. The credit allowed by paragraph (b) of this\nsubdivision shall not apply in taxable years beginning after December\nthirty-first, two thousand seventeen.\n * NB Repealed January 1, 2015\n * 25. Credit for purchase of an automated external defibrillator. A\ntaxpayer shall be allowed a credit, to be computed as hereinafter\nprovided, against the tax imposed by this article, for the purchase,\nother than for resale, of an automated external defibrillator, as such\nterm is defined in section three thousand-b of the public health law.\nThe amount of credit shall be the cost to the taxpayer of automated\nexternal defibrillators purchased during the taxable year, such credit\nnot to exceed five hundred dollars with respect to each unit purchased.\nThe credit allowed under this subdivision for any taxable year shall not\nreduce the tax due for such year to less than the higher of the amounts\nprescribed in paragraphs (c) and (d) of subdivision one of this section.\n * NB Repealed January 1, 2015\n * 25-a. (a) A taxpayer shall be allowed a credit against the tax\nimposed by this article equal to twenty percent of the premium paid\nduring the taxable year for long-term care insurance. In order to\nqualify for such credit, the taxpayer's premium payment must be for the\npurchase of or for continuing coverage under a long-term care insurance\npolicy that qualifies for such credit pursuant to section one thousand\none hundred seventeen of the insurance law.\n (b) The credit allowed under this subdivision for any year shall not\nreduce the tax due for such year to less than the higher of the amounts\nprescribed in paragraphs (c) and (d) of subdivision one of this section.\nIf, however, the amount of credit allowable under this subdivision for\nany taxable year reduces the tax to such amount, any amount of credit\nnot deductible in such taxable year may be carried over to the following\nyear or years and may be deducted from the taxpayer's tax for such year\nor years.\n * NB Repealed January 1, 2015\n * 26. Order of credits. Credits allowable under this article which\ncannot be carried over and which are not refundable shall be deducted\nfirst. The credit allowable under subdivision nineteen of this section\nshall be deducted immediately after the deduction of all credits\nallowable under this article which cannot be carried over and which are\nnot refundable, whether or not a portion of such credit is refundable.\nCredits allowable under this article which can be carried over, and\ncarryovers of such credits, shall be deducted next after the deduction\nof the credit allowable under subdivision nineteen of this section, and\namong such credits, those whose carryover is of limited duration shall\nbe deducted before those whose carryover is of unlimited duration.\nCredits allowable under this article which are refundable (other than\nthe credit allowable under subdivision nineteen of this section) shall\nbe deducted last.\n * NB Repealed January 1, 2015\n * 26-a. IMB credit for energy taxes. (a) Allowance of credit. A\ntaxpayer which is an industrial or manufacturing business (IMB) shall be\nallowed a credit for energy taxes, to be computed as provided in section\nfourteen-a of this chapter, against the tax imposed by this article.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year shall not reduce the tax due for such year to less\nthan the higher of the amounts prescribed in paragraphs (c) and (d) of\nsubdivision one of this section. However, if the amount of credit\nallowed under this subdivision for any taxable year reduces the tax to\nsuch amount, any amount of credit thus not deductible in such taxable\nyear shall be treated as an overpayment of tax to be credited or\nrefunded in accordance with the provisions of section ten hundred\neighty-six of this chapter. Provided, however, the provisions of\nsubsection (c) of section ten hundred eighty-eight of this chapter\nnotwithstanding, no interest shall be paid thereon.\n * NB Expired for taxable years ending on and after January 1, 2007\n * NB Repealed January 1, 2015\n * 27. QEZE credit for real property taxes. (a) Allowance of credit. A\ntaxpayer which is a qualified empire zone enterprise shall be allowed a\ncredit for eligible real property taxes, to be computed as provided in\nsection fifteen of this chapter, against the tax imposed by this\narticle.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year shall not reduce the tax due for such year to less\nthan the higher of the amounts prescribed in paragraphs (c) and (d) of\nsubdivision one of this section. However, if the amount of credit\nallowed under this subdivision for any taxable year reduces the tax to\nsuch amount, any amount of credit thus not deductible in such taxable\nyear shall be treated as an overpayment of tax to be credited or\nrefunded in accordance with the provisions of section ten hundred\neighty-six of this chapter. Provided, however, the provisions of\nsubsection (c) of section ten hundred eighty-eight of this chapter\nnotwithstanding, no interest shall be paid thereon.\n * NB Repealed January 1, 2015\n * 28. QEZE tax reduction credit. (a) Allowance of credit. A taxpayer\nwhich is a qualified empire zone enterprise shall be allowed a QEZE tax\nreduction credit, to be computed as provided in section sixteen of this\nchapter, against the tax imposed by this article.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year shall not reduce the tax due for such year to less\nthan the amount prescribed in paragraph (d) of subdivision one of this\nsection. Provided, however, this paragraph shall not apply to a taxpayer\nwith a zone allocation factor of one hundred percent.\n * NB Repealed January 1, 2015\n * 30. Low-income housing credit. (a) Allowance of credit. A taxpayer\nshall be allowed a credit against the tax imposed by this article with\nrespect to the ownership of eligible low-income buildings, computed as\nprovided in section eighteen of this chapter.\n (b) Application of credit. The credit and carryovers of such credit\nallowed under this subdivision for any taxable year shall not, in the\naggregate, reduce the tax due for such year to less than the higher of\nthe amounts prescribed in paragraphs (c) and (d) of subdivision one of\nthis section. However, if the amount of credit or carryovers or such\ncredit, or both, allowed under this subdivision for any taxable year\nreduces the tax to such amount, any amount of credit or carryovers of\nsuch credit thus not deductible in such taxable year may be carried over\nto the following year or years and may be deducted from the tax for such\nyear or years.\n (c) Credit recapture. For provisions requiring recapture of credit,\nsee subdivision (b) of section eighteen of this chapter.\n * NB Repealed January 1, 2015\n * 31. Green building credit. (a) Allowance of credit. A taxpayer shall\nbe allowed a credit, to be computed as provided in section nineteen of\nthis chapter, against the tax imposed by this article.\n (b) Carryovers. The credit and carryovers of such credit allowed under\nthis subdivision for any taxable year shall not, in the aggregate,\nreduce the tax due for such year to less than the higher of the amounts\nprescribed in paragraphs (c) and (d) of subdivision one of this section.\nHowever, if the amount of credit or carryovers of such credit, or both,\nallowed under this subdivision for any taxable year reduces the tax to\nsuch amount, any amount of credit or carryovers of such credit thus not\ndeductible in such taxable year may be carried over to the following\nyear or years and may be deducted from the tax for such year or years.\n * NB Repealed January 1, 2015\n * 32. Credit for transportation improvement contributions. (a)\nAllowance of credit. A taxpayer shall be allowed a credit, to be\ncomputed as provided in section twenty of this chapter, against the tax\nimposed by this article.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year shall not reduce the tax due for such year to less\nthan the higher of the amounts prescribed in paragraphs (c) and (d) of\nsubdivision one of this section. However, if the amount of credit\nallowed under this subdivision for any taxable year reduces the tax to\nsuch amount, any amount of credit thus not deductible in such taxable\nyear shall be treated as an overpayment of tax to be credited or\nrefunded in accordance with the provisions of section ten hundred\neighty-six of this chapter. Provided, however, the provisions of\nsubsection (c) of section ten hundred eighty-eight of this chapter\nnotwithstanding, no interest shall be paid thereon.\n (c) Credit recapture. For provisions requiring recapture of credit,\nsee subdivision (c) of section twenty of this chapter.\n * NB Repealed January 1, 2015\n * 33. Brownfield redevelopment tax credit. (a) Allowance of credit. A\ntaxpayer shall be allowed a credit, to be computed as provided in\nsection twenty-one of this chapter, against the tax imposed by this\narticle.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year shall not reduce the tax due for such year to less\nthan the higher amount prescribed in paragraphs (c) and (d) of\nsubdivision one of this section. However, if the amount of credits\nallowed under this subdivision for any taxable year reduces the tax to\nsuch amount, any amount of credit thus not deductible in such taxable\nyear shall be treated as an overpayment of tax to be credited or\nrefunded in accordance with the provisions of section ten hundred\neighty-six of this chapter. Provided, however, the provisions of\nsubsection (c) of section ten hundred eighty-eight of this chapter\nnotwithstanding, no interest shall be paid thereon.\n * NB Repealed January 1, 2015\n * 34. Remediated brownfield credit for real property taxes for\nqualified sites. (a) Allowance of credit. A taxpayer which is a\ndeveloper of a qualified site shall be allowed a credit for eligible\nreal property taxes, to be computed as provided in subdivision (b) of\nsection twenty-two of this chapter, against the tax imposed by this\narticle. For purposes of this subdivision, the terms "qualified site"\nand "developer" shall have the same meaning as set forth in paragraphs\ntwo and three, respectively, of subdivision (a) of section twenty-two of\nthis chapter.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year shall not reduce the tax due for such year to less\nthan the higher of the amounts prescribed in paragraphs (c) and (d) of\nsubdivision one of this section. However, if the amount of credit\nallowed under this subdivision for any taxable year reduces the tax to\nsuch amount, any amount of credit thus not deductible in such taxable\nyear shall be treated as an overpayment of tax to be credited or\nrefunded in accordance with the provisions of section ten hundred\neighty-six of this chapter. Provided, however, the provisions of\nsubsection (c) of section ten hundred eighty-eight of this chapter\nnotwithstanding, no interest shall be paid thereon.\n * NB Repealed January 1, 2015\n * 35. Environmental remediation insurance credit. (a) Allowance of\ncredit. A taxpayer shall be allowed a credit, to be computed as provided\nin section twenty-three of this chapter, against the tax imposed by this\narticle.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year shall not reduce the tax due for such year to less\nthan the higher amount prescribed in paragraphs (c) and (d) of\nsubdivision one of this section. However, if the amount of credits\nallowed under this subdivision for any taxable year reduces the tax to\nsuch amount, any amount of credit thus not deductible in such taxable\nyear shall be treated as an overpayment of tax to be credited or\nrefunded in accordance with the provisions of section one thousand\neighty-six of this chapter. Provided, however, the provisions of\nsubsection (c) of section one thousand eighty-eight of this chapter\nnotwithstanding, no interest shall be paid thereon.\n * NB Repealed January 1, 2015\n * 36. Empire state film production credit. (a) Allowance of credit. A\ntaxpayer who is eligible pursuant to section twenty-four of this chapter\nshall be allowed a credit to be computed as provided in such section\ntwenty-four against the tax imposed by this article.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year shall not reduce the tax due for such year to less\nthan the amount prescribed in paragraph (d) of subdivision one of this\nsection. Provided, however, that if the amount of the credit allowable\nunder this subdivision for any taxable year reduces the tax to such\namount, the excess shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section one\nthousand eighty-six of this chapter. Provided, however, the provisions\nof subsection (c) of section one thousand eighty-eight of this chapter\nnotwithstanding, no interest shall be paid thereon.\n * NB Repealed January 1, 2015\n * 37. Security training tax credit. (a) Allowance of credit. A\ntaxpayer shall be allowed a credit, to be computed as provided in\nsection twenty-six of this chapter, against the tax imposed by this\narticle.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year shall not reduce the tax due for such year to less\nthan the higher amount prescribed in paragraphs (c) and (d) of\nsubdivision one of this section. However, if the amount of credits\nallowed under this subdivision for any taxable year reduces the tax to\nsuch amount, any amount of credit thus not deductible in such taxable\nyear shall be treated as an overpayment of tax to be credited or\nrefunded in accordance with the provisions of section one thousand\neighty-six of this chapter. Provided, however, the provisions of\nsubsection (c) of section one thousand eighty-eight of this chapter\nnotwithstanding, no interest shall be paid thereon.\n * NB There are 2 sb 37's\n * NB Repealed January 1, 2015\n * 37. Credit for fuel cell electric generating equipment expenditures.\n(a) Allowance of credit. For taxable years beginning before January\nfirst, two thousand nine, a taxpayer shall be allowed a credit against\nthe tax imposed by this article, equal to its qualified fuel cell\nelectric generating equipment expenditures. This credit shall not exceed\none thousand five hundred dollars per generating unit with respect to\nany taxable year. The credit provided for herein shall be allowed with\nrespect to the taxable year in which the fuel cell electric generating\nequipment is placed in service.\n (b) Qualified fuel cell electric generating equipment expenditures.\n(i) Qualified fuel cell electric generating equipment expenditures are\nthe costs, incurred on or after July first, two thousand five,\nassociated with the purchase of on-site electricity generation units\nutilizing proton exchange membrane fuel cells, providing a rated\nbaseload capacity of no less than one kilowatt and no more than one\nhundred kilowatts of electricity, which are located in this state at the\ntime the qualified fuel cell electric generating equipment is placed in\nservice.\n (ii) Qualified fuel cell electric generating equipment expenditures\nshall also include costs, incurred on or after July first, two thousand\nfive, for materials, labor for on-site preparation, assembly and\noriginal installation, engineering services, designs and plans directly\nrelated to construction or installation and utility compliance costs.\n (iii) Such qualified expenditures shall not include interest or other\nfinance charges.\n (iv) The amount of any federal, state or local grant received by the\ntaxpayer, which was used for the purchase and/or installation of such\nequipment and which was not included in the federal gross income of the\ntaxpayer, shall not be included in the amount of such qualified\nexpenditures.\n (c) Application of credit. The credit allowed under this subdivision\nfor any taxable year shall not reduce the tax due for such year to less\nthan the higher amount prescribed in paragraphs (c) and (d) of\nsubdivision one of this section. However, if the amount of credit\nallowed under this subdivision for any taxable year reduces the tax to\nsuch amount, any amount of credit thus not deductible in such taxable\nyear may be carried over to the following year or years and may be\ndeducted from the taxpayer's tax for such year or years.\n * NB There are 2 sb 37's\n * NB Repealed January 1, 2015\n * 38. Conservation easement tax credit. (1) Credit allowed. In the\ncase of a taxpayer who owns land that is subject to a conservation\neasement held by a public or private conservation agency, there shall be\nallowed a credit for twenty-five percent of the allowable school\ndistrict, county and town real property taxes on such land. In no such\ncase shall the credit allowed under this subdivision in combination with\nany other credit for such school district, county and town real property\ntaxes under this section exceed such taxes.\n (2) Conservation easement. For purposes of this subdivision, the term\n"conservation easement" means a perpetual and permanent conservation\neasement as defined in article forty-nine of the environmental\nconservation law that serves to protect open space, scenic, natural\nresources, biodiversity, agricultural, watershed and/or historic\npreservation resources. Any conservation easement for which a tax credit\nis claimed under this subdivision shall be filed with the department of\nenvironmental conservation, as provided for in article forty-nine of the\nenvironmental conservation law and such conservation easement shall\ncomply with the provisions of title three of such article, and the\nprovisions of subdivision (h) of section 170 of the internal revenue\ncode. Dedications of land for open space through the execution of\nconservation easements for the purpose of fulfilling density\nrequirements to obtain subdivision or building permits shall not be\nconsidered a conservation easement under this subdivision.\n (3) Land. For purposes of this subdivision, the term "land" means a\nfee simple title to real property located in this state, with or without\nimprovements thereon; rights of way; water and riparian rights;\neasements; privileges and all other rights or interests of any land or\ndescription in, relating to or connected with real property, excluding\nbuildings, structures, or improvements.\n (4) Public or private conservation agency. For purposes of this\nsubdivision, the term "public or private conservation agency" means any\nstate, local, or federal governmental body; or any private\nnot-for-profit charitable corporation or trust which is authorized to do\nbusiness in the state of New York, is organized and operated to protect\nland for natural resources, conservation or historic preservation\npurposes, is exempt from federal income taxation under section 501(c)(3)\nof the internal revenue code, and has the power to acquire, hold and\nmaintain land and/or interests in land for such purposes.\n (5) Credit limitation. The amount of the credit that may be claimed by\na taxpayer pursuant to this subsection shall not exceed five thousand\ndollars in any given year.\n (6) Application of the credit. The credit allowed under this\nsubdivision for any taxable year shall not reduce the tax due for such\nyear to less than the higher of the amounts prescribed in paragraphs (c)\nand (d) of subdivision one of this section. However, if the amount of\nthe credit allowed under this subdivision for any taxable year reduces\nthe tax to such amount, any amount of the credit thus not deductible in\nsuch taxable year shall be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of subsection (c)\nof section ten hundred eighty-eight of this chapter, except that, no\ninterest shall be paid thereon.\n * NB There are 3 sb 38's\n * NB Repealed January 1, 2015\n * 38. Empire state commercial production credit. (a) Allowance of\ncredit. A taxpayer that is eligible pursuant to provisions of section\ntwenty-eight of this chapter shall be allowed a credit to be computed as\nprovided in such section against the tax imposed by this article. The\ntax credit allowed pursuant to this section shall apply to taxable years\nbeginning before January first, two thousand seventeen.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year shall not reduce the tax due for such year to less\nthan the amount prescribed in paragraph (d) of subdivision one of this\nsection. Provided, however, that if the amount of the credit allowable\nunder this subdivision for any taxable year reduces the tax to such\namount, fifty percent of the excess shall be treated as an overpayment\nof tax to be credited or refunded in accordance with the provisions of\nsection one thousand eighty-six of this chapter. Provided, however, the\nprovisions of subsection (c) of section one thousand eighty-eight of\nthis chapter notwithstanding, no interest shall be paid thereon. The\nbalance of such credit not credited or refunded in such taxable year may\nbe carried over to the immediately succeeding taxable year and may be\ndeducted from the taxpayer's tax for such year. The excess, if any, of\nthe amount of credit over the tax for such succeeding year shall be\ntreated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section one thousand eighty-six of\nthis chapter. Provided, however, the provisions of subsection (c) of\nsection one thousand eighty-eight of this chapter notwithstanding, no\ninterest shall be paid thereon.\n * NB There are 3 sb 38's\n * NB Repealed January 1, 2015\n * 38. Biofuel production credit. A taxpayer shall be allowed a credit,\nto be computed as provided in section twenty-eight of this chapter, as\nadded by part X of chapter sixty-two of the laws of two thousand six,\nagainst the tax imposed by this article. The credit allowed under this\nsubdivision for any taxable year shall not reduce the tax due for such\nyear to less than the higher of the amounts prescribed in paragraphs (c)\nand (d) of subdivision one of this section. However, if the amount of\ncredit allowed under this subdivision for any taxable year reduces the\ntax to such amount, any amount of credit thus not deductible in such\ntaxable year shall be treated as an overpayment of tax to be credited or\nrefunded in accordance with the provisions of section one thousand\neighty-six of this chapter. Provided, however, the provisions of\nsubsection (c) of section one thousand eighty-eight of this chapter\nnotwithstanding, no interest shall be paid thereon. The tax credit\nallowed pursuant to this section shall apply to taxable years beginning\nbefore January first, two thousand twenty.\n * NB There are 3 sb 38's\n * NB Repealed January 1, 2015\n * 39. Clean heating fuel credit. (1) A taxpayer shall be allowed a\ncredit against the tax imposed by this article. Such credit, to be\ncomputed as hereinafter provided, shall be allowed for bioheat, used for\nspace heating or hot water production for residential purposes within\nthis state purchased on or after July first, two thousand six and before\nJuly first, two thousand seven and on or after January first, two\nthousand eight and before January first, two thousand seventeen. Such\ncredit shall be $0.01 per percent of biodiesel per gallon of bioheat,\nnot to exceed twenty cents per gallon, purchased by such taxpayer.\n (2) For purposes of this subdivision, the following definitions shall\napply:\n (a) "Biodiesel" shall mean a fuel comprised exclusively of mono-alkyl\nesters of long chain fatty acids derived from vegetable oils or animal\nfats, designated B100, which meets the specifications of American\nSociety of Testing and Materials designation D 6751.\n (b) "Bioheat" shall mean a fuel comprised of biodiesel blended with\nconventional home heating oil, which meets the specifications of the\nAmerican Society of Testing and Materials designation D 396 or D 975.\n (3) Application of credit. The credit allowed under this subdivision\nfor any taxable year shall not reduce the tax due for such year to less\nthan the higher of the amounts prescribed in paragraphs (c) and (d) of\nsubdivision one of this section. However, if the amount of credit\nallowed under this subdivision for any taxable year reduces the tax to\nsuch amount, any amount of credit thus not deductible in such taxable\nyear shall be treated as an overpayment of tax to be credited or\nrefunded in accordance with the provisions of section one thousand\neighty-six of this chapter. Provided, however, the provisions of\nsubsection (c) of section one thousand eighty-eight of this chapter\nnotwithstanding, no interest shall be paid thereon.\n * NB Repealed January 1, 2015\n * 40. Credit for rehabilitation of historic properties. (1) (A) For\ntaxable years beginning on or after January first, two thousand ten and\nbefore January first, two thousand twenty, a taxpayer shall be allowed a\ncredit as hereinafter provided, against the tax imposed by this article,\nin an amount equal to one hundred percent of the amount of credit\nallowed the taxpayer with respect to a certified historic structure\nunder subsection (a) (2) of section 47 of the federal internal revenue\ncode with respect to a certified historic structure located within the\nstate. Provided, however, the credit shall not exceed five million\ndollars. For taxable years beginning on or after January first, two\nthousand twenty, a taxpayer shall be allowed a credit as hereinafter\nprovided, against the tax imposed by this article, in an amount equal to\nthirty percent of the amount of credit allowed the taxpayer with respect\nto a certified historic structure under subsection (a)(2) of section 47\nof the federal internal revenue code with respect to a certified\nhistoric structure located within the state. Provided, however, the\ncredit shall not exceed one hundred thousand dollars.\n (B) If the taxpayer is a partner in a partnership or a shareholder in\na New York S corporation, then the credit caps imposed in subparagraph\n(A) of this paragraph shall be applied at the entity level, so that the\naggregate credit allowed to all the partners or shareholders of each\nsuch entity in the taxable year does not exceed the credit cap that is\napplicable in that taxable year.\n (2) Tax credits allowed pursuant to this subdivision shall be allowed\nin the taxable year that the qualified rehabilitation is placed in\nservice under section 167 of the federal internal revenue code.\n (3) If the credit allowed the taxpayer pursuant to section 47 of the\ninternal revenue code with respect to a qualified rehabilitation is\nrecaptured pursuant to subsection (a) of section 50 of the internal\nrevenue code, a portion of the credit allowed under this subsection must\nbe added back in the same taxable year and in the same proportion as the\nfederal recapture.\n ** (4) The credit allowed under this subdivision for any taxable year\nshall not reduce the tax due for such year to less than the higher of\nthe amounts prescribed in paragraphs (c) and (d) of subdivision one of\nthis section. However, if the amount of the credit allowable under this\nsubdivision for any taxable year shall exceed the taxpayer's tax for\nsuch year, the excess may be carried over to the following year or\nyears, and may be deducted from the taxpayer's tax for such year or\nyears.\n ** NB Effective until January 1, 2015\n ** (4) The credit allowed under this subdivision for any taxable year\nshall not reduce the tax due for such year to less than the higher of\nthe amounts prescribed in paragraphs (c) and (d) of subdivision one of\nthis section. However, if the amount of the credit allowed under this\nsubdivision for any taxable year reduces the tax to such amount, any\namount of credit thus not deductible in such taxable year shall be\ntreated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section one thousand eighty-six of\nthis chapter. Provided, however, the provisions of subsection (c) of\nsection one thousand eighty-eight of this chapter notwithstanding, no\ninterest shall be paid thereon.\n ** NB Effective January 1, 2015\n (5) To be eligible for the credit allowable under this subdivision,\nthe rehabilitation project shall be in whole or in part located within a\ncensus tract which is identified as being at or below one hundred\npercent of the state median family income as calculated as of January\nfirst of each year using the most recent five year estimate from the\nAmerican community survey published by the United States Census bureau.\n * NB Repealed January 1, 2015\n * 41. Excelsior jobs program credit. (a) Allowance of credit. A\ntaxpayer will be allowed a credit, to be computed as provided in section\nthirty-one of this chapter, against the tax imposed by this article.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year may not reduce the tax due for such year to less\nthan the higher of the amounts prescribed in paragraphs (c) and (d) of\nsubdivision one of this section. However, if the amount of credit\nallowed under this subdivision for any taxable year reduces the tax to\nsuch amount, any amount of credit thus not deductible in such taxable\nyear will be treated as an overpayment of tax to be credited or refunded\nin accordance with the provisions of section one thousand eighty-six of\nthis chapter. Provided, however, the provisions of subsection (c) of\nsection one thousand eighty-eight of this chapter notwithstanding, no\ninterest will be paid thereon.\n * NB There are 3 sb 41's\n * NB Repealed January 1, 2015\n * 41. Empire state film post production credit. (a) Allowance of\ncredit. A taxpayer who is eligible pursuant to section thirty-one of\nthis chapter shall be allowed a credit to be computed as provided in\nsuch section thirty-one against the tax imposed by this article.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year shall not reduce the tax due for such year to less\nthan the amount prescribed in paragraph (d) of subdivision one of this\nsection. Provided, however, that if the amount of the credit allowable\nunder this subdivision for any taxable year reduces the tax to such\namount, fifty percent of the excess shall be treated as an overpayment\nof tax to be credited or refunded in accordance with the provisions of\nsection one thousand eighty-six of this chapter. Provided, however, the\nprovisions of subsection (c) of section one thousand eighty-eight of\nthis chapter notwithstanding, no interest shall be paid thereon. The\nbalance of such credit not credited or refunded in such taxable year may\nbe a carry over to the immediately succeeding taxable year and may be\ndeducted from the taxpayer's tax for such year. The excess, if any, of\nthe amount of the credit over the tax for such succeeding year shall be\ntreated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section one thousand eighty-six of\nthis chapter. Provided, however, the provisions of subsection (c) of\nsection one thousand eighty-eight of this chapter notwithstanding, no\ninterest shall be paid thereon.\n * NB There are 3 sb 41's\n * NB Repealed January 1, 2015\n * 41. Temporary deferral nonrefundable payout credit. (a) Allowance of\ncredit. A taxpayer shall be allowed a credit, to be computed as provided\nin subdivision one of section thirty-four of this chapter, against the\ntax imposed by this article.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year shall not reduce the tax due for that year to less\nthan the amount prescribed in paragraph (d) of subdivision one of this\nsection. However, if the amount of credit allowed under this subdivision\nfor any taxable year reduces the tax to such amount, any amount of\ncredit thus not deductible in such taxable year may be carried over to\nthe following year or years and may be deducted from the taxpayer's tax\nfor such year or years.\n * NB There are 3 sb 41's\n * NB Repealed January 1, 2015\n * 42. Temporary deferral refundable payout credit. (a) Allowance of\ncredit. A taxpayer shall be allowed a credit, to be computed as provided\nin subdivision two of section thirty-four of this chapter, against the\ntax imposed by this article.\n (b) Application of credit. In no event shall the credit under this\nsection be allowed in an amount which will reduce the tax to less than\nthe amount prescribed in paragraph (d) of subdivision one of this\nsection. If, however, the amount of credit allowed under this section\nfor any taxable year reduces the tax to such amount, any amount of\ncredit not deductible in such taxable year shall be treated as an\noverpayment of tax to be refunded in accordance with the provisions of\nsection one thousand eighty-six of this chapter, provided however, that\nno interest shall be paid thereon.\n * NB Repealed January 1, 2015\n * 43. Economic transformation and facility redevelopment program tax\ncredit. (a) Allowance of credit. A taxpayer shall be allowed a credit,\nto be computed as provided in section thirty-five of this chapter,\nagainst the tax imposed by this article.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year may not reduce the tax due for such year to less\nthan the amount prescribed in paragraph (d) of subdivision one of this\nsection. However, if the amount of credit allowed under this subdivision\nfor any taxable year reduces the tax to such amount, any amount of\ncredit thus not deductible in such taxable year will be treated as an\noverpayment of tax to be credited or refunded in accordance with the\nprovisions of section one thousand eighty-six of this chapter. Provided,\nhowever, the provisions of subsection (c) of section one thousand\neighty-eight of this chapter notwithstanding, no interest will be paid\nthereon.\n * NB Repealed January 1, 2015\n * 44. New York youth works tax credit. (a) A taxpayer that has been\ncertified by the commissioner of labor as a qualified employer pursuant\nto section twenty-five-a of the labor law shall be allowed a credit\nagainst the tax imposed by this article equal to (i) five hundred\ndollars per month for up to six months for each qualified employee the\nemployer employs in a full-time job or two hundred fifty dollars per\nmonth for up to six months for each qualified employee the employer\nemploys in a part-time job of at least twenty hours per week or ten\nhours per week when the qualified employee is enrolled in high school\nfull-time, and (ii) one thousand dollars for each qualified employee who\nis employed for at least an additional six months by the qualified\nemployer in a full-time job or five hundred dollars for each qualified\nemployee who is employed for at least an additional six months by the\nqualified employer in a part-time job of at least twenty hours per week\nor ten hours per week when the qualified employee is enrolled in high\nschool full-time, and (iii) an additional one thousand dollars for each\nqualified employee who is employed for at least an additional year after\nthe first year of the employee's employment by the qualified employer in\na full-time job or five hundred dollars for each qualified employee who\nis employed for at least an additional year after the first year of the\nemployee's employment by the qualified employer in a part-time job of at\nleast twenty hours per week or ten hours per week when the qualified\nemployee is enrolled in high school full-time. For purposes of this\nsubdivision, the term "qualified employee" shall have the same meaning\nas set forth in subdivision (b) of section twenty-five-a of the labor\nlaw. The portion of the credit described in subparagraph (i) of this\nparagraph shall be allowed for the taxable year in which the wages are\npaid to the qualified employee, and the portion of the credit described\nin subparagraph (ii) of this paragraph shall be allowed in the taxable\nyear in which the additional six month period ends.\n (b) The credit allowed under this subdivision for any taxable year may\nnot reduce the tax due for that year to less than the amount prescribed\nin paragraph (d) of subdivision one of this section. However, if the\namount of the credit allowed under this subdivision for any taxable year\nreduces the tax to that amount, any amount of credit not deductible in\nthat taxable year will be treated as an overpayment of tax to be\ncredited or refunded in accordance with the provisions of section one\nthousand eighty-six of this chapter. Provided, however, no interest will\nbe paid thereon.\n (c) The taxpayer may be required to attach to its tax return its\ncertificate of eligibility issued by the commissioner of labor pursuant\nto section twenty-five-a of the labor law. In no event shall the\ntaxpayer be allowed a credit greater than the amount of the credit\nlisted on the certificate of eligibility. Notwithstanding any provision\nof this chapter to the contrary, the commissioner and the commissioner's\ndesignees may release the names and addresses of any taxpayer claiming\nthis credit and the amount of the credit earned by the taxpayer.\nProvided, however, if a taxpayer claims this credit because it is a\nmember of a limited liability company or a partner in a partnership,\nonly the amount of credit earned by the entity and not the amount of\ncredit claimed by the taxpayer may be released.\n * NB There are 3 sb 44's\n * NB Repealed January 1, 2015\n * 44. Empire state jobs retention program credit. (a) Allowance of\ncredit. A taxpayer will be allowed a credit, to be computed as provided\nin section thirty-six of this chapter, against the taxes imposed by this\narticle.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year will not reduce the tax due for such year to less\nthan the minimum tax fixed by this article. However, if the amount of\ncredit allowed under this subdivision for any taxable year reduces the\ntax to such amount, any amount of credit thus not deductible in such\ntaxable year will be treated as an overpayment of tax to be credited or\nrefunded in accordance with the provisions of section one thousand\neighty-six of this chapter. Provided, however, the provisions of\nsubsection (c) of section one thousand eighty-eight of this chapter\nnotwithstanding, no interest will be paid thereon.\n * NB There are 3 sb 44's\n * NB Repealed January 1, 2015\n * 44. Credit for companies who provide transportation to individuals\nwith disabilities. (a) Allowance and amount of credit. A taxpayer, who\nprovides a taxicab service as defined in section one hundred\nforty-eight-a of the vehicle and traffic law, or a livery service as\ndefined in section one hundred twenty-one-e of the vehicle and traffic\nlaw, shall be allowed a credit, to be computed as provided in this\nsubdivision, against the tax imposed by this article. The amount of the\ncredit shall be equal to the incremental cost associated with upgrading\na vehicle so that it is accessible by individuals with disabilities as\ndefined in paragraph (b) of this subdivision. Provided, however, that\nsuch credit shall not exceed ten thousand dollars per vehicle. For\npurposes of this subdivision, purchases of new vehicles that are\ninitially manufactured to be accessible for individuals with\ndisabilities and for which there is no comparable make and model that\ndoes not include the equipment necessary to provide accessibility to\nindividuals with disabilities, the credit shall be ten thousand dollars\nper vehicle.\n (b) Definition. The term "accessible by individuals with disabilities"\nshall, for the purposes of this subdivision, refer to a vehicle that\ncomplies with federal regulations promulgated pursuant to the Americans\nwith Disabilities Act applicable to vans under twenty-two feet in\nlength, by the federal Department of Transportation, in Code of Federal\nRegulations, title 49, parts 37 and 38, and by the federal Architecture\nand Transportation Barriers Compliance Board, in Code of Federal\nRegulations, title 36, section 1192.23, and the Federal Motor Vehicle\nSafety Standards, Code of Federal Regulations, title 49, part 57.\n (c) Application of credit. If the amount of the credit shall exceed\nthe taxpayer's tax for such year the excess shall be carried over to the\nfollowing year or years, and may be deducted from the taxpayer's tax for\nsuch year or years.\n * NB There are 3 sb 44's\n * NB Repealed January 1, 2015\n * 45. Beer production credit. A taxpayer shall be allowed a credit, to\nbe computed as provided in section thirty-seven of this chapter, against\nthe tax imposed by this article. In no event shall the credit allowed\nunder this subdivision for any taxable year reduce the tax due for such\nyear to less than the amount prescribed in paragraph (d) of subdivision\none of this section. However, if the amount of credit allowed under this\nsubdivision for any taxable year reduces the tax to such amount, any\namount of credit thus not deductible in such taxable year shall be\ntreated as an overpayment of tax to be credited or refunded in\naccordance with the provisions of section one thousand eighty-six of\nthis chapter. Provided, however, the provisions of subsection (c) of\nsection one thousand eighty-eight of this chapter notwithstanding, no\ninterest shall be paid thereon.\n * NB Repealed January 1, 2015\n * 46. Minimum wage reimbursement credit. (a) Allowance of credit. A\ntaxpayer shall be allowed a credit, to be computed as provided in\nsection thirty-eight of this chapter, against the tax imposed by this\narticle.\n (b) Application of credit. The credit allowed under this subdivision\nfor any taxable year may not reduce the tax due for such year to less\nthan the amount prescribed in paragraph (d) of subdivision one of this\nsection. However, if the amount of credit allowed under this subdivision\nfor any taxable year reduces the tax to such amount, any amount of\ncredit thus not deductible in such taxable year will be treated as an\noverpayment of tax to be credited or refunded in accordance with the\nprovisions of section one thousand eighty-six of this chapter. Provided,\nhowever, the provisions of subsection (c) of section one thousand\neighty-eight of this chapter notwithstanding, no interest will be paid\nthereon.\n * NB Repealed January 1, 2015\n * 47. The tax-free NY area tax elimination credit. A taxpayer shall be\nallowed a credit to be computed as provided in section forty of this\nchapter, against the tax imposed by this article. Unless the taxpayer\nhas a tax-free NY area allocation factor of one hundred percent, the\ncredit allowed under this subdivision for any taxable year shall not\nreduce the tax due for such year to less than the amount prescribed in\nparagraph (d) of subdivision one of this section. However, any amount of\ncredit not deductible in such taxable year shall be treated as an\noverpayment of tax to be credited or refunded in accordance with the\nprovisions of section one thousand eighty-six of this chapter. Provided,\nhowever, the provisions of subsection (c) of section one thousand\neighty-eight of this chapter notwithstanding, no interest shall be paid\nthereon.\n * NB Repealed January 1, 2015\n * 48. Real property tax credit for manufacturers. (a) A qualified New\nYork manufacturer, as defined in subparagraph (vi) of paragraph (a) of\nsubdivision one of this section, will be allowed a credit equal to\ntwenty percent of the real property tax it paid during the taxable year\nfor real property owned by such manufacturer in New York which was\nprincipally used during the taxable year for manufacturing to the extent\nnot deducted in determining entire net income. This credit will not be\nallowed if the real property taxes that are the basis for this credit\nare included in the calculation of another credit claimed by the\ntaxpayer.\n (b) (1) For purposes of this subdivision, the term real property tax\nmeans a charge imposed upon real property by or on behalf of a county,\ncity, town, village or school district for municipal or school district\npurposes, provided that the charge is levied for the general public\nwelfare by the proper taxing authorities at a like rate against all\nproperty over which such authorities have jurisdiction, and provided\nthat where taxes are levied pursuant to article eighteen or nineteen of\nthe real property tax law, the property must have been taxed at the rate\ndetermined for the class in which it is contained, as provided by such\narticle eighteen or nineteen, whichever is applicable. The term real\nproperty tax does not include a charge for local benefits, including any\nportion of that charge that is properly allocated to the costs\nattributable to maintenance or interest, when (i) the property subject\nto the charge is limited to the property that benefits from the charge,\nor (ii) the amount of the charge is determined by the benefit to the\nproperty assessed, or (iii) the improvement for which the charge is\nassessed tends to increase the property value.\n (2) In addition, the term real property tax includes taxes paid by the\ntaxpayer upon real property principally used during the taxable year by\nthe taxpayer in manufacturing where the taxpayer leases such real\nproperty from an unrelated third party if the following conditions are\nsatisfied: (i) the tax must be paid by the taxpayer as lessee pursuant\nto explicit requirements in a written lease, and (ii) the taxpayer as\nlessee has paid such taxes directly to the taxing authority and has\nreceived a written receipt for payment of taxes from the taxing\nauthority. In the case of a combined group that constitutes a qualified\nNew York manufacturer, the conditions in the preceding sentence are\nsatisfied if one corporation in the combined group is the lessee and\nanother corporation in the combined group makes the payments to the\ntaxing authority.\n (3) The term real property tax does not include a payment made by the\ntaxpayer in connection with an agreement for the payment in lieu of\ntaxes on real property, whether such property is owned or leased by the\ntaxpayer.\n (4) The real property taxes must be paid by the taxpayer in the year\nsuch taxes become a lien on the real property.\n (c) Credit recapture. Where a qualified New York manufacturer's real\nproperty taxes which were the basis for the allowance of the credit\nprovided for under this subdivision are subsequently reduced as a result\nof a final order in any proceeding under article seven of the real\nproperty tax law or other provision of law, the taxpayer shall add back,\nin the taxable year in which such final order is issued, the excess of\n(1) the amount of credit originally allowed for a taxable year over (2)\nthe amount of credit determined based upon the reduced real property\ntaxes. If such final order reduces real property taxes for more than one\nyear, the taxpayer must determine how much of such reduction is\nattributable to each year covered by such final order and calculate the\namount of credit which is required by this subdivision to be recaptured\nfor each year based on such reduction.\n (d) The credit allowed under this subdivision for any taxable year\nshall not reduce the tax due for such year to less than twenty-five\ndollars.\n * NB Repealed December 31, 2014\n * 49. The tax-free NY area excise tax on telecommunication services\ncredit. A taxpayer that is a business or owner of a business that is\nlocated in a tax-free NY area approved pursuant to article twenty-one of\nthe economic development law shall be allowed a credit equal to the\nexcise tax on telecommunication services imposed by section one hundred\neighty-six-e of this chapter and passed through to such business during\nthe taxable year to the extent not otherwise deducted in computing\nentire net income. However, any amount of credit not deductible in such\ntaxable year shall be treated as an overpayment of tax to be credited or\nrefunded in accordance with the provisions of section one thousand\neighty-six of this chapter. This credit may be claimed only where any\ntax imposed by such section one hundred eighty-six-e has been separately\nstated on a bill from the provider of telecommunication services and\npaid by such business with respect to such services rendered within a\ntax-free NY area during the taxable year. Unless the taxpayer has a\ntax-free NY area allocation factor of one hundred percent, the credit\nallowed under this subdivision for any taxable year shall not reduce the\ntax due for such year to less than the amount prescribed in paragraph\n(d) of subdivision one of this section. Provided, however, the\nprovisions of subsection (c) of section one thousand eighty-eight of\nthis chapter notwithstanding, no interest shall be paid thereon.\n * NB Repealed December 31, 2014\n