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Page 2 CT-40-I (8/98)

is at least 85 percent, singly or in combination, methanol,

Line 4 - For corporations taxable under sections 183 and

ethanol, any other alcohol, or ether.

184 of Article 9, the credit used is ﬁrst applied against the

tax imposed under section 183. It may not reduce the tax

Qualiﬁed clean-fuel vehicle property is deﬁned by section

under section 183 below the minimum tax of $75. Any

179A(c) of the IRC. This property includes the engine,

excess is then applied against the tax imposed by section

exhaust components, and fuel storage and delivery

184. For section 185 and 186 ﬁlers, the credit used may not

components that enable the vehicle to use clean-fuel (other

reduce the tax below the minimum tax of $10 or $125

than electricity) either in the retroﬁt of an existing vehicle or

respectively.

in a manufacturer’s original equipment vehicle. The original

For corporations taxable under Article 9-A, the credit used

use must commence with the taxpayer and the vehicle

may not reduce the tax below the alternative minimum tax

must be acquired for use by the taxpayer, and not for

or the ﬁxed dollar minimum tax, whichever is higher.

resale.

Worksheet for Line 4

In the case of a vehicle originally manufactured to use

Use this worksheet to compute the

clean fuel and any other fuel, only the cost of the clean-fuel

credit allowed for the current tax year.

vehicle property (engine, exhaust components, and fuel

(a)

Enter your franchise tax before credits from the following

storage and delivery components) that enables the vehicle

forms:

to use clean fuel is included in the cost.

Form CT-3 . . . . . . . . line 78

Form CT-3-A . . . . . . line 77

Qualiﬁed clean-fuel vehicle refueling property is deﬁned by

Form CT-183/184. . . CT-183, line 4 plus CT-184, line 3 or 4

section 179A(d) of the IRC. This includes property, other

Form CT-185 . . . . . . line 6

Form CT-186 . . . . . . line 5

(a)

than buildings and structural components of buildings, that

is used for storing or dispensing clean fuel into the tank of

(b)

Enter any other credits used this tax period

(b)

a motor vehicle powered by such fuel or for recharging

(c)

Subtract line (b) from line (a) (if line (b) is greater than line (a)

electric vehicles. The property must be located at the point

enter ‘‘0’’

(c)

where the vehicles are refueled or recharged. It must be

(d)

Enter the appropriate amount for the form you are ﬁling:

eligible for the depreciation deduction, and the original use

Form CT-3 . . . . . . .

amount from line 71 or line 74,

whichever is larger

must commence with the taxpayer.

Form CT-3-A . . . . .

amount from line 71 or line 74,

whichever is larger

Form CT-183/184. . . $75

Leased Property

Form CT-185 . . . . . . $10

Form CT-186 . . . . . . $125

Taxpayers that acquire vehicles or property for use in their

(d)

leasing business, and not for resale, may qualify for the

New York State credit if the vehicles or property qualify for

(e)

Subtract line (d) from line (c)

(e)

a federal credit or deduction. However, leases to public

(governmental) or tax-exempt (charitable) organizations

The amount of the credit used may not exceed the lesser of the amount on line (e)

generally do not qualify for a federal credit or deduction,

above, or the amount of line 3 of Form CT-40. Enter the amount of the credit used

and accordingly would not qualify for the New York State

on line 4.

credit.

Line 6 - Enter the amount of alternative fuels credit that

you elect to transfer to an afﬁliated corporation. The afﬁliate

you are transferring the credit to must be an Article 9-A

Speciﬁc Instructions

taxpayer and must consent to receiving the credit (see

If you are a calendar-year ﬁler, enter your calendar year in

section VI).

the box in the upper right corner on the front of the form.

Section I - Credit for Electric Vehicles

If you are a ﬁscal-year ﬁler, complete the beginning and

Line 10 - Enter the incremental cost of each qualiﬁed

ending tax period boxes in the upper right corner on the

electric vehicle which is placed in service during the taxable

front of the form.

year and registered in New York State, and for which a

federal credit is allowed under section 30 of the IRC. If you

Credit Summary Information

are eligible for the federal credit and elect not to claim it,

Before completing this section, complete Sections I through

you may still claim the New York State credit.

IV to compute the amount of credit allowed. Complete

The credit is computed on the entire incremental cost, even

Section V to recapture credit previously allowed and

if some or all of the cost was expensed under section 179

Section VI if you are transferring any credit between

of the IRC. The maximum credit is $5,000 per electric

afﬁliates.

vehicle.

Line 2 - (Article 9-A ﬁlers only) Enter the amount of

Section II - Credit for Clean-Fuel Vehicle

alternative fuels credit that you elected to receive from an

Property

afﬁliated corporation. The afﬁliate you receive the credit

from must also be an Article 9-A taxpayer and must

The credit for clean-fuel vehicle property is computed on

consent to transferring the credit (see Section VI).

the entire cost. The cost is not limited by the federal

Form Ct-40-I - Instructions For Form Ct-40 - New York State Department Of Taxation And Finance Page 2

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