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Page 2 of 2 CT-247 (8/11)

General information

Certain not‑for‑profit and religious corporations are

Refund of franchise taxes

exempt from the New York State (NYS) corporation

If the organization paid franchise taxes in error, request

franchise tax imposed by Tax Law Article 9‑A

a refund by filing an amended return. A housing

(Article 9‑A regulations, section 1‑3.4(b)(6)). You must file

development fund company must submit proof that

Form CT‑247 to apply for exemption.

it was organized under Private Housing Finance

Law Article 11.

Generally, a corporation or an organization treated as a

corporation must meet all of the following requirements

Mail this application to:

to be tax exempt:

NYS TAX DEPARTMENT

• It must be organized and operated as a not‑for‑profit

CORPORATION TAX

organization.

W A HARRIMAN CAMPUS

ALBANY NY 12227

• It must not have stock, shares, or certificates for

Private delivery services

stock or for shares. Not‑for‑profit corporations that

issue stock are taxable under Article 9‑A. However,

If you choose, you may use a private delivery service,

for tax years beginning on or after January 1, 1987,

instead of the U.S. Postal Service, to mail in your form

title holding companies as described in IRC section

and tax payment. However, if, at a later date, you need

501(c)(2), and collective investment entities as

to establish the date you filed or paid your tax, you

described in IRC section 501(c)(25), are exempt from

cannot use the date recorded by a private delivery

tax under Article 9‑A. For additional information, see

service unless you used a delivery service that has

TSB‑M‑87(9)C, Exemption for Title Holding Companies

been designated by the U.S. Secretary of the Treasury

(THC) and Collective Investment Entities (CIE).

or the Commissioner of Taxation and Finance. (Currently

designated delivery services are listed in Publication 55,

• No part of its net earnings may benefit any officer,

Designated Private Delivery Services. See Need help? for

director, or member.

information on obtaining forms and publications.) If you

• It must be exempt from federal income taxation under

have used a designated private delivery service and need

IRC section 501, subsection (a).

to establish the date you filed your form, contact that

private delivery service for instructions on how to obtain

If the organization meets all of the above requirements,

written proof of the date your form was given to the

it will be presumed to be exempt from tax under Tax

delivery service for delivery.

Law Article 9‑A. An organization denied exemption from

taxation under the IRC will be presumed to be subject to

Signature

tax under Article 9‑A.

The application must be certified by the president, vice

president, treasurer, assistant treasurer, chief accounting

An organization whose tax exempt status has been

officer, or other officer authorized by the taxpayer

revoked and later restored by the Internal Revenue

corporation.

Service (IRS), must file a new application on Form CT‑247.

The new application must be approved before any

The application of an association, publicly traded

tax‑exempt status under Article 9‑A is restored.

partnership, or business conducted by a trustee or

trustees must be signed by a person authorized to act for

Not‑for‑profit, nonstock organizations that are subject to

the association, publicly traded partnership, or business.

the federal tax on unrelated business income are taxable

under New York State Tax Law Article 13, if they pursue

If an outside individual or firm prepared the application,

those unrelated business activities in New York State. File

all applicable entries in the paid preparer section must

Form CT‑13, Unrelated Business Income Tax Return, to

be completed, including identification numbers (see Paid

report those activities.

preparer identification numbers in Form CT‑1). Failure

to sign the application will delay the processing of any

Organizations required to file federal Form 1120 may be

refunds and may result in penalties.

taxable under Article 9‑A and may be required to file

Form CT‑3, General Business Corporation Franchise Tax

Need help? and Privacy notification

Return, or Form CT‑4, General Business Corporation

See Form CT‑1, Supplement to Corporation Tax

Franchise Tax Return Short Form.

Instructions.

When filing Form CT‑247, submit all documents

granting or denying exemption from tax by the IRS, the

corporation’s articles of incorporation, and its bylaws.

Promptly report any changes in the corporation’s federal

tax status to the NYS Tax Department.

Any exemption granted by the filing of Form CT‑247 is

strictly for New York State corporation franchise tax. For

federal exemption, contact the IRS.

Any inquiry on the taxable status of an organization must

be in writing, signed by an officer of the organization, and

mailed to the address below.

Form Ct-247 - Application For Exemption From Corporation Franchise Taxes By A Not-For-Profit Organization Page 2

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