Form Ct-601.1 - Claim For Zea Wage Tax Credit

Instructions

Page 2 of 2 CT-601.1 (2012)

Temporary deferral of certain tax credits

For taxpayers who earned wage tax credits in multiple ZEAs

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

For tax years beginning on or after January 1, 2010, and before

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

January 1, 2013, if the total amount of certain credits that you

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

may use to reduce your tax or have refunded to you is greater

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

than $2 million, the excess over $2 million must be deferred

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

to, and used or refunded in, tax years beginning on or after

January 1, 2013. For more information about the credit deferral,

Example: Corporation A operates in two locations in New York

see Form CT-500, Corporation Tax Credit Deferral.

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

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

If you are subject to the credit deferral, you must complete all

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

credit forms without regard to the deferral. However, the credit

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

amount that is transferred to your tax return to be applied

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

against your tax due or to be refunded to you may be reduced.

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

Follow the instructions for Form CT-500 to determine the

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

amounts to enter on your tax return.

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

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

Schedule A – Application of ZEA wage tax credit for

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

the current tax year

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

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

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

following:

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

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

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

addition of the metropolitan transportation business tax (MTA

before your ZEA wage tax credit.

surcharge) or the deduction of any tax credit; or

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

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

addition of the MTA surcharge or the deduction of any tax

If your total credits from all sources are $2 million or less, enter

credit; or

the amount from line 10 on your franchise tax return.

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

If your total credits from all sources are more than $2 million,

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

you may be subject to the temporary credit deferral. Complete

line 10 but do not enter the amount from line 10 on your

• the greater of the sum of taxes imposed under

franchise tax return. See Form CT-500 to determine the proper

Article 33 sections 1501 and 1510, or the tax computed

amounts to enter on your franchise tax return.

under Article 33 section 1505(b),

before the addition of the MTA surcharge or the deduction of

Schedule B – Computation of 50% limitation for

any tax credit.

multiple wage tax credit claims

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

Part 2 – Unused ZEA wage tax credit 50% limitation

imposed under Article 33 section 1502-a before the addition

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

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

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

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

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

not be applied against the following taxes:

credits applied. Add amounts in column B.

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

Column C: Subtract column B total from the amount in

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

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

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

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

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

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

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).

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Form Ct-601.1 - Claim For Zea Wage Tax Credit - 2012 Page 2

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