Instructions For Form Ct-604-Cp - Claim For Qeze Credit For Real Property Taxes And Qeze Tax Reduction Credit For Corporate Partners - New York State Department Of Taxation And Finance - 2004
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2New York State Department of Taxation and Finance
CT-604-CP-I
Instructions for Form CT-604-CP
Claim for QEZE Credit for Real Property Taxes and
QEZE Tax Reduction Credit for Corporate Partners
The QEZE tax reduction credit is not refundable. Any amount not
General information
deductible in the current tax year may not be refunded, carried over, or
For tax years beginning on or after January 1, 2001, the Empire Zones
applied as an overpayment against next year’s tax.
Program Act provides tax credits for a qualified empire zone enterprise
(QEZE): the QEZE credit for real property taxes and the QEZE tax
Definitions
reduction credit.
For additional definitions, see Form CT-604-I, Instructions for
This form has been provided for corporate partners of a QEZE to
Form CT-604.
claim the QEZE tax credits. All other corporations should complete
A qualified empire zone enterprise (QEZE) is a business enterprise that
Form CT-604, Claim for QEZE Credit for Real Property Taxes and
is certified as eligible to receive benefits under the General Municipal
QEZE Tax Reduction Credit .
Law, Article 18-B prior to July 1, 2005, and that annually meets the
New York S corporations that are corporate partners do not complete
employment test.
this form. However, the S corporation must provide all shareholders
Employment increase factor is an amount which cannot exceed one.
with their pro rata share of the real property tax credit that the
Obtain this factor from the partnership.
S corporation derived from the partnership. It also must provide all
Benefit period factor is a number from zero to one, based on the tax year
shareholders with the benefit period factor, the employment increase
of the benefit period. Obtain this factor from the partnership.
factor, and the zone allocation factor of the partnership, so that the
individual shareholder can compute the tax reduction credit on
Zone allocation factor is a percentage that represents the economic
Form IT-604, Claim for QEZE Credit for Real Property Taxes and QEZE
presence of the partnership in the EZ in which it is certified. Obtain this
Tax Reduction Credit, for personal income taxpayers.
factor from the partnership.
Note: If you are a partner in more than one partnership, complete a
Tax factor is the tax calculated under each applicable article of the Tax
separate Form CT-604-CP for each partnership.
Law that is based on income. If an article provides for two tax measures
based on income, the higher of the two is the tax factor. Corporate
QEZE credit for real property taxes
partners compute this factor on line 14.
The QEZE credit for real property taxes is a credit against New York
Specific instructions
State corporate franchise and personal income taxes. The QEZE credit
for real property taxes is available for taxpayers subject to tax under
Enter on the front of Form CT-604-CP the name and the employer
Article 9, section 185 only for tax years beginning on or after January 1,
identification number of the QEZE partnership.
2004. The credit is computed on eligible real property taxes paid or
Line 3 — If you are applying multiple credits, refer to Form CT-600,
incurred on real property owned by the QEZE that is located in the
Ordering of Corporation Tax Credits, or your franchise tax return
empire zone (EZ) in which the QEZE is certified. The amount of the
instructions to determine the order of credits that applies. If filing
credit is the product of (1) the benefit period factor, (2) the employment
Form CT-604, and/or more than one Form CT-604-CP, include any
increase factor, and (3) the eligible real property taxes paid or incurred
amount of QEZE credit for real property taxes and QEZE tax reduction
by the QEZE during the current tax year.
credit that you are claiming that you wish to apply before the QEZE
For any QEZE certified on or after August 1, 2002, the real property tax
credit for real property taxes being claimed on this form. Life insurance
credit may not exceed the credit limitation, which is the greater of the
corporations do not include EZ wage tax credit, EZ capital tax credit, or
employment increase limitation or the capital increase limitation. The
zone equivalent area (ZEA) wage tax credit on this line.
limitation will be computed by the partnership. The corporate partner
will report its share of the credit after limitation on Form CT-604-CP,
Line 7
line 1.
Article 9 filers — Include this amount on Form CT-185, Cooperative
Agricultural Corporation Franchise Tax Return, line 7.
If the QEZE’s eligible real property taxes, which were the basis for a
QEZE credit for real property taxes, are subsequently reduced as a
Article 9-A filers — Include this amount on your franchise tax return.
result of a final order in any proceeding under the Real Property Tax
For Form CT-3, General Business Corporation Franchise Tax Return,
Law, Article 7 or other provision of law, the QEZE must recapture a
use the box labeled Form CT-604, line 33 under Summary of credits
portion of the credit allowed in the year the final order is issued. The
claimed on line 79 against current year’s franchise tax. If you are filing
recapture will be computed by the partnership. The corporate partner
Form CT-3-A, General Business Corporation Combined Franchise Tax
will report its share of the credit after recapture on Form CT-604-CP,
Return, use the box labeled Form CT-604, line 33 , under Summary of
line 1.
credits claimed on line 78 against current year’s franchise tax.
The QEZE credit for real property taxes may not reduce the tax to less
Article 32 filers — Include this amount on your franchise tax return.
than
For Form CT-32, Banking Corporation Franchise Tax Return, or
• zero for Article 9, section 185 filers,
CT-32-A, Banking Corporation Combined Franchise Tax Return, use the
• the larger of the tax on minimum taxable income or the fixed dollar
box labeled Form CT-604 QEZE credit for real property taxes under
Summary of tax credits claimed on line 6 against current year’s
minimum tax as computed under Article 9-A, or
franchise tax.
• $250 for Article 32 or 33 filers.
Article 33 filers — Include this amount on your franchise tax return.
Any amount of the QEZE credit for real property taxes not deductible in
the current tax year may be refunded without interest or applied as an
Use the box labeled Form CT-604 QEZE credit for real property taxes,
overpayment against the MTA surcharge or the tax liability for next year.
under Summary of tax credits claimed against current year’s franchise
tax return .
QEZE tax reduction credit
Line 9 — Enter the amount of unused credit on line 8 that you wish
The QEZE tax reduction credit is allowed against the New York State
refunded, and transfer this amount to the appropriate line of your
corporate franchise tax under Article 9-A, 32, or 33, and is the product
franchise tax return.
of (1) the benefit period factor, (2) the employment increase factor,
(3) the zone allocation factor, and (4) the tax factor.
The QEZE tax reduction credit may not reduce the tax to less than
• the fixed dollar minimum tax under Article 9-A (however, a partner in
a QEZE that has a zone allocation factor of 100% is not subject to
this limitation and may reduce the tax to zero); or
• $250 for Article 32 or 33 filers.
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