Form Ct-46-I - Instructions For Form Ct-46 - Claim For Investment Tax Credit

CT-46-I (1998) Page 3

Other credits may be applied before the investment tax

claimed at the optional 9% rate and computed in column G

credit at your election. See the instructions for Form CT-3 or

in this schedule). New York C corporations use appropriate

CT-3-A for a listing of the credits that may be applied.

rate from Schedule 1. New York S corporations must use a

4% rate.

Computation of Investment Tax Credit Used, Refunded,

Column G — Enter the amount of investment tax credit

Carried Forward

claimed on research and development property listed in this

schedule and claimed at the optional 9% rate. New York S

Line 16 — Enter the lesser of line 10 or line 15. This is the

corporations substitute 7% for 9%.

amount of investment tax credit to be used this period.

Schedule B — Eligibility for Employment Incentive

Line 18 — A corporation that is eligible to claim an

Credit

investment tax credit and is also a new business as deﬁned

When a corporation is allowed an investment tax credit,

in Article 9-A, section 210.12(j), may elect to receive a

other than at the optional rate applicable to research and

refund of its unused investment tax credit instead of

development property, the corporation may be eligible for

carrying the credit forward. Interest will not be paid on

an employment incentive credit for the two succeeding

refund of investment tax credit. Section 210.12(j) deﬁnes a

years. However, the credit is not allowed for those years if

new business as any corporation except:

the corporation’s average number of employees in New

— a corporation in which over 50% of the number of

York State is not at least 101% of the average number of

shares of stock entitling their holders to vote for the

employees in New York State during the employment base

election of directors or trustees is owned by a taxpayer

year. Complete Schedule B to see if the corporation

subject to the tax under Article 9-A; sections 183, 184,

qualiﬁes for the employment incentive credit.

185, or 186 of Article 9; or Article 32; or Article 33 of

Section 210.12-D(b) deﬁnes the average number of

the Tax Law;

employees as the total number of employees that are

— a corporation that is substantially similar in operation

employed within New York State on March 31, June 30,

and in ownership to a business entity or entities taxable

September 30, and December 31 (unless you have a short

or previously taxable under Article 9-A; section 183,

tax year and one or more of the dates do not occur),

184, 185, or 186 of Article 9; or Article 32; or Article 33;

divided by the number of these dates occurring during the

or that would have been subject to the tax under Article

tax period. Employees must be located in New York State.

23, as it was in effect on January 1, 1980; or the

Do not include general executive ofﬁcers.

income (or losses) of which is (or was) includable under

Example

Article 22 of the Tax Law;

A taxpayer ﬁling a report for a ﬁscal period beginning September 1, 1997,

— a corporation that has been subject to tax under Article

and ending August 31, 1998, would use the following dates to compute the

9-A for more than four tax years (excluding short

average number of New York State employees for that ﬁscal year:

periods) prior to the tax year during which the taxpayer

September 30, 1997, December 31, 1997, March 31, 1998, and

ﬁrst becomes eligible for the investment tax credit.

June 30, 1998.

Transfer the refund amount to Form CT-3, line 99, or

Complete Schedule B for each period listed in Schedule C

Form CT-3-A, line 100.

for which an employment incentive credit is claimed.

Exclude from lines 23 and 25, any employee for whom an

To avoid the unnecessary exchange of funds, we will apply

EDZ wage tax credit was claimed based on employment

this refund against the minimum tax due, and the balance,

within a zone equivalent area. However, include such

if any, will be refunded.

employees for the employment base year on lines 22

and 24.

Schedule A — Investment Tax Credit

For the purposes of these instructions, the term

Columns A and B — Describe qualiﬁed property placed in

employment base year means the calendar year or ﬁscal

service during this taxable period. Individual items of

year immediately preceding the investment tax credit year

machinery and equipment must be listed separately and

or, if the taxpayer was not taxable in New York State in

may not be shown as one general category such as

such preceding year, the year in which the investment tax

machinery. Describe the property in terms that a layman

credit was allowed.

will understand. Attach additional pages if necessary.

Column A - Enter the credit year and the base year. The

credit year is the ﬁrst or second tax year after the year in

Column D — Enter the useful life of each item claimed.

which you claimed the original investment credit.

The useful life is the number of years an item is expected

to be of service to the taxpayer. Do not use the recovery

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

period for depreciation under the Accelerated Cost

employees employed within New York State on each of the

Recovery System (ACRS) or the Modiﬁed Accelerated Cost

dates listed that occurred during your tax year.

Recovery System (MACRS).

Example

Column E — Enter the total investment credit base.

A taxpayer ﬁling for a ﬁscal year beginning September 1, 1998, and ending

August 31, 1999, would enter the number of employees employed in New

Column F — Enter the amount of investment tax credit on

York State on the following dates: September 30, 1998, December 31,

property (except research and development property

1998, March 31, 1998, and June 30, 1999.

Form Ct-46-I - Instructions For Form Ct-46 - Claim For Investment Tax Credit - 1998 Page 3

Related Articles

Related forms

Related Categories