Form Ct-601.1 - Claim For Zea Wage Tax Credit

Instructions

Page 2 of 2 CT-601.1 (2011)

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

Temporary deferral of certain tax credits

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

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

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

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

Example: Corporation A operates in two locations in New

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

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

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

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

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

Corporation A has calculated its current year tax as $3,100

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

and calculates a 50% limitation of $1,550 (50% of $3,100).

see Form CT-500, Corporation Tax Credit Deferral.

Corporation A claims a ZEA wage tax credit of $1,500 from its

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

Buffalo location. Corporation A is limited to $50 of wage tax

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

credits earned in the Elmira location ($1,550 minus $1,500 of

amount that is transferred to your tax return to be applied

limitation already used) that may be applied against the current

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

year’s tax.

Follow the instructions for Form CT-500 to determine the

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

amounts to enter on your tax return.

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

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

General information

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

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

recaptured tax credits.

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

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

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

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

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

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

The taxpayer must attach a copy of the Certificate of Eligibility

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

issued by Empire State Development each year that the credit

on this form. Refer to your corporation franchise tax return

is carried forward. No retention certificate needs to be attached

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

to this form.

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

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

the addition of the metropolitan transportation business tax

(MTA surcharge) or the deduction of any tax credit; or

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

the amount from line 10 on your franchise tax return.

— 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 more than $2 million,

credit; or

you may be subject to the temporary credit deferral. Complete

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

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

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

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

amounts to enter on your franchise tax return.

• the greater of the sum of taxes imposed under Article 33

sections 1501 and 1510, or the tax computed under

Schedule B — Computation of 50% limitation for

Article 33 section 1505(b),

multiple wage tax credit claims

before the addition of the MTA surcharge or the deduction of

Part 2 — Unused ZEA wage tax credit 50% limitation

any tax credit.

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

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

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

imposed under Article 33 section 1502-a before the addition

claimed on this form. List the name of the zone and amounts of

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

wage tax credits applied. Add amounts in column B.

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

Column C: Subtract column B total from the amount in

not be applied against the following taxes:

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

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

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

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

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

— 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

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Form Ct-601.1 - Claim For Zea Wage Tax Credit - 2011 Page 2

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