Instructions For Form Ct-605 - Claim For Ez Investment Tax Credit And Ez Employment Incentive Credit For The Financial Services Industry - New York State Department Of Taxation And Finance - 2004 Page 2
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4Page 2 of 4 CT-605-I (2004)
Purchase or sale of stocks, bonds, commodities, or other securities
date specified for the current tax year. Add the number of these
includes, but is not limited to, the issuance, entering into,
employees on each date (include 0 dates) occurring during the
assumption, offset, assignment, termination, or transfer of stocks,
current tax year to obtain the total number of employees in
bonds, commodities, or other securities.
New York State for the current tax year. Divide the total by four to
obtain the average number of employees in New York State for the
A security is defined in IRC section 475(c)(2).
current tax year.
Line instructions
Line 2 — Enter the number of employees who perform
administrative and support functions everywhere for each date
New York C corporations complete all applicable schedules.
specified for the current tax year. Add the number of these
New York S corporations complete schedules A through D.
employees on each date (include 0 dates) occurring during the
current tax year to obtain the total number of employees
Schedule A — Eligibility and investment tax credit
everywhere for the current tax year. Divide the total by four to
obtain the average number of employees everywhere for the
To claim this credit, all or a substantial portion of the employees
current tax year.
performing the administrative and support functions resulting from
or related to the qualifying uses of such property must be located
Line 3 — Divide line 1 by line 2 to obtain the percentage of
in New York State. All or a substantial portion means at least 80%.
employees who perform administrative and support functions in
For example, if you have a quarterly average of 1,000 employees
New York State for the current tax year. If your result equals or
performing the administrative and support functions during your
exceeds 80%, continue with Schedule A, Part III. You qualify for the
tax year, then a quarterly average of at least 800 (1,000 x 80%) of
EZ-ITC.
them must be located in New York State. If you are claiming credit
Schedule A — Part II — 95% Back-office test
based on having met the 80% test, complete Schedule A, Part I.
For more information on this eligibility test, see TSB-A-03(10)C.
Use Schedule A, Part II, if you wish to claim the credit using the
Another method to meet this requirement is to maintain the
95% back-office test eligibility method.
requisite number of employees performing administrative and
All references to current tax year mean the tax year covered by this
support functions in New York State during the tax year in which
claim.
the property is placed in service and the credit claimed (the 95%
Line 4 — Enter the number of employees who perform
back-office test) . A taxpayer is presumed to have maintained the
administrative and support functions in New York State for each
requisite number of employees if the average number of
date specified for the current tax year. Add the number of these
employees performing administrative and support functions is at
employees on each date (include 0 dates) occurring during the
least 95% of the average number of employees performing these
current tax year to obtain the total number of employees for the
functions during the 36 months immediately preceding the year in
current tax year. Divide the total by four to obtain the average
which the credit is claimed. You must compute the average number
number of employees for the current tax year.
of employees on a quarterly basis. If you are claiming credit based
on having met the 95% back-office test, complete Schedule A,
Example 1:
Part II. For more information on this eligibility test, see
TSB-M-98(8)C, Tax Credits for the Financial Services Industry .
Current tax year
March 31
June 30
Sept. 30
Dec. 31
Total
If the property is used by an affiliate in qualifying activities, it is the
Number of
affiliate that must meet either the 80% test or the 95% back-office
administrative and
100
100
125
175
500
test.
support employees
in New York State
Employees performing administrative and support functions
include all employees other than brokers, dealers, or investment
4. Average number of employees in New York State
advisors to regulated investment companies. Generally, any
for current tax year (500 divided by four) .............................. 125
employee whose compensation for the taxable year is based more
than 50% on commissions is presumed to be a broker, dealer, or
Line 5 — Enter the number of employees who perform
investment advisor. However, if you do not compensate those
administrative and support functions in New York State on each of
employees who are employed as brokers, dealers, or investment
the dates listed for the 36 months immediately preceding the year
advisors on a commission basis, you must specifically identify the
in which the EZ-ITC is claimed. Add the number of employees for
employees performing those functions and must exclude those
the 36-month period, and divide by the number of such dates
employees from the employment percentage calculation.
(include 0 dates) occurring during the 36-month period, to obtain
the average number of employees for the 36-month test period.
A national securities exchange, board of trade, or their wholly
owned entity should identify those employees who are performing
Example 2:
the administrative and support functions resulting from or related to
the activities of the securities exchange, board of trade, or other
Number of
entity, and calculate the employment percentage using those
administrative and
employees.
support employees in
Combined filers under Article 9-A apply the appropriate method
New York State during
on an individual entity basis for each company claiming a credit,
March 31 June 30
Sept. 30
Dec. 31
Total
the 36-month test period
to determine if each company has maintained the requisite
number of employees performing administrative and support
First year
100
100
100
100
400
functions in New York State in the tax year for which the credit is
claimed.
Second year
50
75
75
100
300
If your corporation does not meet either of the eligibility
Third year
0
0
40
50
90
requirements as stated above, do not complete Schedule A,
Part III. You are not eligible for the EZ-ITC. However, you may
Total number of administrative and support employees in
need to complete Schedule B if you are eligible for the EZ-EIC, and
New York State for 36-month test period .................................. 790
Schedule C if you need to recapture a credit previously taken.
5. Average number of administrative and support employees in
Complete Schedule E, Parts I and II, to compute an EZ-EIC, or to
New York State for 36-month test period (790 divided by 12) 66
use a carryforward earned in a prior period.
Line 6 — Divide line 4 by line 5. If the result equals or exceeds
Schedule A — Part I — 80% test
95%, continue with Schedule A, Part III. You qualify for the EZ-ITC.
Use Schedule A, Part I, if you wish to claim the credit using the
Schedule A — Part III — EZ-ITC
80% test eligibility method.
Columns A and B: List in these columns a clear description of
All references to current tax year mean the tax year covered by this
qualified property placed in service during this tax period and the
claim.
principal use of each item of property. Describe the property in
Line 1 — Enter the number of employees who perform
terms that a layperson could understand. Attach additional pages if
administrative and support functions in New York State for each
necessary.
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