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

Page 6 CT-46-I (1998)

For tax years beginning on or after January 1, 1987,

merger, property of a target corporation that was the basis

property that is depreciated under IRC section 168 for

for the allowance of the investment tax credit shall be

federal tax, but that is required to be depreciated pursuant

deemed disposed of on the day immediately preceding the

to IRC section 167 alone for New York State tax (decoupled

corporate consolidation or corporate merger.

property), is subject to the ﬁrst recapture formula set out

above.

Recapture of investment tax credit (but not additional

investment tax credit) will be augmented by an additional

recapture amount equal to the original recapture amount

For tax years beginning in 1987, property that is disposed

multiplied by the interest rate in effect (without

of, or ceases to be in qualiﬁed use, will be recaptured as

compounding) on the last day of the tax year. For

follows:

applicable rates see Regulations, Part 603, or call the

(i) If the property was depreciated for New York State

Business Tax Information Center at 1 800 972-1233.

franchise tax under IRC section 167, use the life of the

property as depreciated under IRC section 167;

If, at the end of any tax year, there is a net increase in

nonqualiﬁed nonrecourse ﬁnancing, recapture the decrease

(ii) If the property was depreciated for New York State

in the investment tax credit that would have resulted from

franchise tax under IRC section 168, use the life of the

the net increase in nonqualiﬁed nonrecourse ﬁnancing.

property as depreciated under IRC section 168.

If the property qualiﬁed for the additional investment tax

If qualiﬁed property has a useful life of more than 12 years,

credit, 50% of the amount of recaptured investment tax

no credit need be added back if it has been in use for more

credit must be added back for each year the additional

than 12 consecutive years.

investment tax credit was allowed.

Column I —To recapture an additional investment tax

If an air pollution control facility was allowed an investment

credit, multiply 50% of the amount in Column H by the

tax credit on the basis of a certiﬁcate of compliance, issued

number of years the additional investment tax credit was

under the Environmental Conservation Law, and that

allowed.

certiﬁcate is revoked under subdivision 3 of section 19-0309

of the Environmental Conservation Law, the revocation will

constitute a disposal or cessation of qualiﬁed use, and a

Line 31 — The additional recapture required to be added

recapture of investment tax credit is required (unless the

back is an amount equal to the recaptured investment tax

property otherwise qualiﬁes).

credit (but not additional investment tax credit) multiplied by

the interest rate in effect on the last day of the tax year.

Call 1 800 972-1233 for the applicable rate.

If the taxpayer is a target corporation in a subdivision 17

corporate acquisition, property that was the basis for the

Example

investment tax credit shall be deemed disposed of and the

investment tax credit must be recaptured in the tax year in

which the acquisition occurred. If a taxpayer is a

$1000 recaptured investment tax credit x 9% interest rate

consolidated corporation in a subdivision 18 corporate

for 1995

$90 additional recapture.

Form Ct-46-I - Instructions For Form Ct-46 - Claim For Investment Tax Credit - 1998 Page 6

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