Form Ct-601.1 - Claim For Zea Wage Tax Credit

Instructions

Page 2 of 2 CT-601.1 (2014)

Line 4 – Form CT-33 filers: enter tax shown on Form CT-33,

General information

line 9a plus any net recaptured tax credits. Form CT-33-A filers:

The ZEA wage tax credit for all zone equivalent areas (ZEAs)

enter tax shown on CT-33-A, line 10 plus any net recaptured tax

expired on June 13, 2004. ZEA wage tax credit carryforwards

credits. All other filers, enter the amount from line 2 plus any net

may still be utilized; however, no additional ZEA wage tax credit

recaptured tax credits.

can be earned in any tax year beginning after June 13, 2004.

Line 5 – If you are claiming more than one tax credit for this

The taxpayer must attach a copy of the Certificate of Eligibility

tax year, enter the amount of the tax credit(s) claimed before

issued by Empire State Development each year that the credit is

the ZEA wage tax credit. Include in this amount any ZEA or EZ

carried forward. No retention certificate needs to be attached to

wage tax credit applied to the tax prior to the credit claimed

this form.

on this form. Refer to your corporation franchise tax return

for the order of credit that applies. Article 9-A taxpayers, refer

Line instructions

to Form CT-600-I, Instructions for Form CT-600, Ordering of

Corporation Tax Credits; otherwise, enter 0 on line 5.

Schedule A – Application of ZEA wage tax credit for

If you are included in a combined return, include any amount of

the current tax year

tax credit(s) being claimed by other members of the combined

The ZEA wage tax credit allowed in Schedule A is limited to the

group, including the ZEA wage tax credit, that you wish to apply

following:

before your ZEA wage tax credit.

– 50% of the tax imposed under Tax Law Article 9-A, before the

Line 10 – Enter the lesser of line 1 or line 9. Transfer this

addition of the metropolitan transportation business tax (MTA

amount to your franchise tax return.

surcharge) or the deduction of any tax credit; or

– 50% of the tax imposed under Tax Law Article 32, before the

Schedule B – Computation of 50% limitation for

addition of the MTA surcharge or the deduction of any tax

multiple wage tax credit claims

credit; or

Part 2 – Unused ZEA wage tax credit 50% limitation

– for life insurance corporations, 50% of the lesser of:

Column B: List only the ZEA and EZ wage tax credits claimed

• the tax computed under Article 33 section 1505(a); or

for this tax year that you wish to apply prior to the credit claimed

• the greater of the sum of taxes imposed under

on this form. List the name of the zone and amounts of wage tax

Article 33 sections 1501 and 1510, or the tax computed

credits applied. Add amounts in column B.

under Article 33 section 1505(b),

Column C: Subtract column B total from the amount in

before the addition of the MTA surcharge or the deduction of

column A. Enter the result on line 14 and on line 3.

any tax credit.

– for non-life insurance corporations, 50% of the taxes

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imposed under Article 33 section 1502-a before the addition

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

of the MTA surcharge or the deduction of any tax credit.

In addition, the ZEA wage tax credit allowed in Schedule A may

not be applied against the following taxes:

– the greater of the tax on the minimum taxable income base or

fixed dollar minimum tax as computed under Article 9-A; or

– the fixed minimum tax of $250 computed under Article 32; or

– the minimum tax of $250 under Article 33; or

– the MTA surcharge under Articles 9-A, 32, or 33.

Any portion of the ZEA wage tax credit disallowed in Schedule A

as a result of the above limitations may be carried forward to

subsequent tax returns.

Line 2 – Enter the current year’s tax after the addition of the tax

on subsidiary capital and before the deduction of any tax credit

or addition of the MTA surcharge.

Line 3 – For taxpayers claiming ZEA wage tax credit in only one

ZEA, multiply line 2 by 50% (.5).

For taxpayers who earned wage tax credits in multiple ZEAs

or empire zones (EZs), or are claiming ZEA and EZ wage tax

credits from more than one entity, the aggregate amount of all

of the wage tax credits used in the current year cannot exceed

50% of the current year’s tax. To compute your limitation,

complete Schedule B and enter the line 14 result on line 3.

Example: Corporation A operates in two locations in New York

State, one in Buffalo and one in Elmira. Both locations are in

ZEAs, and Corporation A is certified in both ZEAs. Corporation A

has calculated its current year tax as $3,100 and calculates a

50% limitation of $1,550 (50% of $3,100). Corporation A claims

a ZEA wage tax credit of $1,500 from its Buffalo location.

Corporation A is limited to $50 of wage tax credits earned in the

Elmira location ($1,550 minus $1,500 of limitation already used)

that may be applied against the current year’s tax.

461002140094

Form Ct-601.1 - Claim For Zea Wage Tax Credit - 2014 Page 2

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