Form Tsb-M-06(3)c - Supplemental Summary Of Corporation Tax Legislative Changes Enacted In 2005 - Office Of Tax Policy Analysis Technical Services Division Page 4
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TSB-M-06(3)C
Corporation Tax
April 19, 2006
As a result of the amendment, the EZ-ITC recapture provisions do not apply with respect
to manufacturing property, where a partner disposes of its partnership interest, or the partnership
disposes of the manufacturing property, if:
• the basis of the manufacturing property (or a project that includes such property) was
$300 million or more for federal income tax purposes at the time it was placed in service
by the partnership in the empire zone, and
• the partner owned the partnership interest for at least 3 years from the date such property
was placed in service by the partnership in the empire zone.
However, if the property ceases to be in qualified use by the partnership after it is placed
in service, the recapture provisions do apply to such partner in the year the property ceases to be
in qualifying use.
This provision applies to tax years beginning on or after December 20, 2005.
(Tax Law, section 210.12-B)
Alternative fuels credit for clean-fuel vehicle refueling property (Articles 9 and 9-A)
The Tax Law has been amended to renew the alternative fuels credit for clean-fuel
vehicle refueling property for corporations subject to tax under section 183, 184, or 185 of
Article 9, or under Article 9-A. The credit applies to clean-fuel vehicle refueling property placed
in service in New York in tax years beginning on or after January 1, 2005.
The alternative fuels credit previously available for electric vehicles, clean-fuel vehicle
property, and qualified hybrid vehicles has expired for any property placed in service in tax years
beginning on or after January 1, 2005. Unused alternative fuels credits previously earned may be
carried forward until used. Article 9-A taxpayers may elect to transfer these unused credits to
their affiliates.
The renewed alternative fuels credit for clean-fuel vehicle refueling property is equal to
50% of the cost of clean-fuel vehicle refueling property placed in service in New York State for
which a deduction under Internal Revenue Code (IRC) section 179A is allowed. The cost is not
limited by the federal expense limits of IRC section 179(b)(2), and the credit may be allowed
even if some or all of the cost is expensed under IRC section 179.
Clean-fuel vehicle refueling property is defined by IRC section 179A(d). It includes
property, other than buildings and structural components of buildings, that is used for storing or
dispensing clean-fuel into the fuel tank of a motor vehicle powered by such fuel or for recharging
electric vehicles. The property must be located at the point where the vehicles are refueled or
recharged, it must be eligible for the depreciation deduction, and the original use must
commence with the taxpayer. Clean-fuel vehicle refueling property does not include qualified
hybrid vehicle refueling property.
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