Form Ct-246 - Claim For Empire State Commercial Production Credit

Page 2 of 2 CT-246 (2014)

Instructions

commercial production credit is computed on a separate basis, but

General information

is applied against the combined tax.

For tax years beginning on or after January 1, 2007, Tax Law

sections 28 and 210.38 provide for tax credits for qualified

Line instructions

commercial production companies. The Empire State commercial

production credit (also referred to simply as the commercial

Part 1 – Computation of commercial production credit

production credit) is available to taxpayers subject to tax under

available for use

Article 9‑A (general business corporations) or Article 22 (personal

Line 1 – Obtain this amount from the New York State Governor’s

income tax). This form is for taxpayers subject to tax under

Article 9‑A. Those subject to tax under Article 22, complete

Office for Motion Picture and Television Development. Attach your

Form IT‑246, Claim for Empire State Commercial Production Credit.

certificate.

These credits have been extended and apply to tax years beginning

Line 2 – Obtain this amount from the partnership(s) allocating this

before January 1, 2017.

credit to you. Also complete Part 3, Partnership information.

The credit is allowed for qualified production costs paid or incurred

Line 3 – New York S corporations include this amount on

in the production of a qualified commercial in New York State. The

Form CT‑34‑SH.

credit is allowed for the tax year in which the production of the

qualified commercial is completed. The credit may not reduce the

Line 4 – Obtain this amount from the previous tax year’s

tax due below the fixed dollar minimum tax. Any amount not used in

Form CT‑246.

the current tax year may be refunded or credited as an overpayment

to next year’s tax. The refund is limited to 50% of the excess credit

Part 2 – Computation of commercial production

in the current year; the balance may be carried forward to the

credit used, refunded, and carried forward

(New York

following tax year and may be deducted from the tax in that year. All

S corporations do not complete this part)

remaining excess after application in the succeeding year may also

be refunded or credited as an overpayment to the succeeding tax

Line 6 – Enter the amount from Form CT‑3, line 78, or Form CT‑3‑A,

year. No interest will be paid on the refund. Production costs used

line 77, plus any net recaptured tax credits.

as the basis for allowance of this credit or used in the calculation of

Line 7 – You must apply certain credits before the commercial

this credit cannot be used to claim any other credit.

production credit. Refer to Form CT‑600‑I, Instructions for

The amount of credit allowed for the current tax year is allocated

Form CT-600, Ordering of Corporation Tax Credits, for the proper

by the New York State Governor’s Office for Motion Picture

ordering of your credits. If you are claiming more than one credit,

and Television Development. Attach a copy of your certificate

enter the total amount of credits applied against the current year’s

from that office for the credit allowed. For rules and regulations

corporation franchise tax before the commercial production credit.

regarding the credit, contact the New York State Governor’s

If the commercial production credit is the only credit that is being

Office for Motion Picture and Television Development at

applied against the current year’s corporation franchise tax, enter 0.

If filing as a member of a combined group, include any amount of

nyfilm@esd.ny.gov or call (212) 803‑2330.

tax credit(s), including the commercial production credit(s), being

Corporate partners

claimed by other members of the combined group that you want to

apply before the commercial production credit claimed on this form.

If you are a corporate partner who has commercial production

credits passed through to you from a partnership, enter your pro rata

Lines 11, 16, and 17 – On line 11, enter the lesser of line 5 or

share of the commercial production credits passed through to you

line 10. Transfer the amounts from lines 11, 16, and 17 to your

from the partnership in Part 1, line 2. Also, enter the name and

franchise tax return.

EIN of the partnership in Part 3. Enter on line 1 only the amount of

commercial production credit allocated to your corporation by the

Need help? and Privacy notification

New York State Governor’s Office for Motion Picture and Television

See Form CT-1, Supplement to Corporation Tax Instructions.

Development.

New York S corporations

New York S corporations will calculate an amount of commercial

production credit. However, the S corporation may not use the

commercial production credit against its own tax liability; instead,

the credit is passed through to the shareholders to use against their

personal income tax liabilities on their New York State tax returns.

New York S corporations complete only lines 1 through 3.

Include the line 3 amount on Form CT‑34‑SH, New York

S Corporation Shareholders’ Information Schedule, which is filed

with your New York State corporation tax return. Attach a copy

of Form CT‑246 to your Form CT‑3‑S, New York S Corporation

Franchise Tax Return.

Provide all shareholders with the amount of their pro rata share of

the commercial production credit calculated. The shareholders will

file their own Form IT‑246 to claim the credit on their New York State

personal income tax returns.

Combined filers

A taxpayer filing a combined return as a member of a combined

group is allowed to claim the commercial production credit. The

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Form Ct-246 - Claim For Empire State Commercial Production Credit - 2014 Page 2

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