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CT-603-I (2002) Page 3 of 4

directors or trustees is owned or controlled either directly

New York C corporations: the EZ employment incentive

or indirectly by a taxpayer subject to tax under Article 9-A;

credit can reduce the corporate tax liability to the fixed dollar

Article 9, section 183, 184, 185 or 186; Article 32; or

minimum. Carry over any EZ employment incentive credit

Article 33 of the Tax Law; or

that cannot be used to reduce the current year’s tax liability to

the following year or years.

— a corporation that is substantially similar in operation and

in ownership to a business entity taxable, or previously

A corporation may not claim a refund of the EZ employment

taxable, under Article 9-A; Article 9, section 183, 184, 185

incentive credit.

or 186; Article 32; Article 33; or Article 23 of the Tax Law,

Schedule D, Part I – Eligibility for EZ employment

or that would have been subject to tax under Article 23, as

incentive credit

such article was in effect on January 1, 1980; or the

income or losses are or were includable under Article 22

Complete Part I to determine if you are eligible for the credit.

of the Tax Law, whereby the intent and purpose of

If you are eligible, complete Part II.

section 210.12-B concerning refunding of credit to new

Column A - Enter in column A the credit year and the base

businesses would be evaded; or

year. The credit year is the first tax year after the year in

— a corporation that has been subject to tax under

which you claimed the original EZ investment tax credit. The

Article 9-A for more than five tax years (excluding short

base year is the year preceding the year you claimed the

periods).

original EZ investment tax credit. However, if your business

was not in operation in New York State during that year, the

Enter the lesser of 50% of line 1, or 50% of line 19; transfer

base year is the year in which you claimed the EZ investment

the line 20 amount to Form CT-3, line 99 or Form CT-3-A,

tax credit.

line 100.

Columns B, C, D and E - Enter the total number of

Lines 21 and 24 — Keep these amounts in your records. You

employees employed within the EZ on each of the dates

will need to refer to these figures when completing your 2003

listed that occur during your tax year.

Form CT-603.

Example: A taxpayer filing for a fiscal year beginning

September 1, 2002, and ending August 31, 2003, would

Schedule C

enter the number of employees employed in the EZ on

EZ investment tax credit

the following dates: September 30, 2002, December 31,

Columns A and B - List in these columns a clear description

2002, March 31, 2003, and June 30, 2003.

of qualified property placed in service during this tax period

Column G - Unless you have a short tax year, divide the

and the principal manufacturing or productive use of each

amount in column F by four. If you have a short tax year (a

item of property. List individual items of machinery and

tax year of less than 12 months), divide the amount in

equipment separately and do not show them as one general

column F by the number of dates shown in columns B-E that

category such as machinery . Describe the property in terms

occur during the short tax year.

a layman can understand. Attach additional pages if

necessary.

Column H - Divide the average number of employees

covered by this claim by the average number of employees in

Schedule D

the base year (column G), and carry the result to two decimal

places. If the percentage in column H is at least 101% (1.01),

EZ employment incentive credit

complete Part II below. If the percentage in column H is less

If you acquire, construct, reconstruct or erect property for

than 101%, stop, you do not qualify for the employment

which an EZ investment tax credit is allowed, an EZ

incentive tax credit for this year.

employment incentive credit may be allowed in the following

Schedule D, Part II – EZ employment incentive credit

three years.

Use Schedule D, Part II to determine the amount of the EZ

The amount of the EZ employment incentive credit allowed is

employment incentive credit allowed for each year of eligibility

30% of the original tax credit for each of the three years

listed in Schedule D, Part I.

following the year for which the original EZ investment tax

credit was allowed. However, the credit is allowed only for

those years during which your average number of employees

Example

(except general executive officers) in the EZ, is at least 101%

A corporation acquired qualified property in 2001 at a cost of

of the average number of employees (except general

$100,000.

executive officers) in the EZ, during the tax year immediately

preceding the tax year for which the original EZ investment

Average number of

EZ employment incentive

tax credit was allowed.

Year

EZ employees

tax credit available for use

If you did not have a tax year for New York State immediately

2000

200

XXX

preceding the year in which the EZ investment tax credit is

2001

not required

XXX

originally allowed, your average number of employees in the

2002

202

$ 3,000 (30% of $ 10,000)

2003

199

-0-*

EZ in the tax year in which the EZ employment incentive

2004

205

$ 3,000 (30% of $ 10,000)

credit is claimed must be at least 101% of your average

number of employees in the EZ in the tax year in which the

* In 2003, the average number of EZ employees was less than 101% of the

EZ investment tax credit was originally allowed.

number employed in 2000.

Instructions For Form Ct-603 - Claim For Ez Investment Tax Credit And Ez Employment Incentive Credit - New York State Department Of Taxation And Finance - 2002 Page 3

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