Credits

§ 1511. Credits. (a) Credit for certain other premium taxes. In computing the tax imposed by this article there shall be allowed a credit for the amount of taxes paid or accrued by the taxpayer during the taxable year on premiums for any insurance against loss or damage by fire under section nine thousand one hundred four or section nine thousand one hundred five of the insurance law or under the charters of the cities of Buffalo or New York; provided, however, that any unused credit remaining may not be carried over to any other year.
(b) Credit against reciprocal taxes imposed by this state. In assessing taxes under the reciprocal provisions of section one thousand one hundred twelve of the insurance law, credit shall be allowed for any taxes paid under this article.
(c) Credit for certain taxes payable to other jurisdictions. (1) If, by the laws of any state other than this state, or by the action of any public official of such other state, any insurer organized or domiciled in this state, or the duly authorized agents thereof, shall be required to pay taxes for the privilege of doing business in such other state and such amounts are imposed or assessed because the taxes which are or would be imposed under this chapter and the insurance law upon insurers organized or domiciled in such other state are greater than those required of insurers organized or domiciled in this state by the laws of such other state for the privilege of doing business therein, then and in every case, to the extent such amounts are legally due to such other states, an insurer organized or domiciled in this state may claim a credit, as hereinafter provided, against the tax payable pursuant to this article of a sum not to exceed ninety per cent of such amount.
Provided, such credit shall in no event be greater than the tax payable pursuant to this article during the taxable year with respect to which such amount has been imposed or assessed by such other states. For purposes of this section, the term "taxes for the privilege of doing business" shall include, but shall not be limited to, a tax on or measured by income.
(2) A credit may be claimed for the amount computed as provided in paragraph one of this subdivision, on the return required pursuant to section fifteen hundred fifteen, against the tax imposed pursuant to this article for the taxable year in which such amount shall be paid. To the extent such credit shall exceed the amount payable pursuant to section fifteen hundred sixteen of this article for the taxable year against which the credit is allowed, the difference between the amount allowed as a credit and the tax payable pursuant to section fifteen hundred sixteen shall be credited or refunded by the tax commission, without interest.
(3) The credit allowed pursuant to this subdivision shall be in addition to the credits allowed pursuant to subdivisions (a) and (b) of this section.
(4) The superintendent of financial services and the tax commission shall examine claims for credit or refund made under this subdivision.
If the superintendent of financial services or the tax commission shall determine that any amount for which a credit shall have been claimed was not legally due to another state or that an error exists in the amount of credit shown on such return, or the amount claimed as a refund or refunded, the tax commission shall take appropriate action under this chapter for the assessment and collection of any tax resulting from the disallowance of a claim for credit made under this subdivision or to disallow any such claim for refund.
(5) Any taxpayer which commences an action or proceeding in any state or federal court to contest the validity of any assessment made against the taxpayer by another state pursuant to a statute similar to section one thousand one hundred twelve of the insurance law or any other statute or regulation of another state under which retaliatory taxes or other charges are imposed or assessed against such taxpayer shall give the state tax commission and the superintendent of financial services written notice of the commencement of such action or proceeding within five days after such commencement.
(d) Credit relating to eligible business facilities. (1) On or after April first, nineteen hundred eighty-three, for taxable years beginning before January first, two thousand, a credit against the tax imposed by this article shall be allowed only to an insurance corporation owning or operating an eligible business facility where such corporation has received a certificate of eligibility for tax credits, or a renewal or extension thereof, for such facility from the New York state job incentive board prior to April first, nineteen hundred eighty-three, or has received a certificate of eligibility for tax credits, or a renewal or extension thereof, for such facility from the state tax commission subsequent to such date pursuant to paragraph eight of this subdivision, and only with respect to such facility, to be computed as hereinafter provided.
(2) The amount of the credit allowable in any taxable year shall be the sum determined by multiplying the tax otherwise due by a percentage to be determined by:
(A) ascertaining the percentage which the total of eligible property values during the taxable year, as defined in paragraph four of this subdivision, bears to the average value of all real and tangible personal property connected with the insurance corporation and located within the state, during such year. For the purposes of this subparagraph only, real and tangible personal property connected with the insurance corporation shall include not only such property owned by the insurance corporation but also property rented to it, and the value of rented property shall be deemed to be eight times the net annual rental rate, that is, the annual rental rate paid by the insurance corporation less any annual rental rate received by it from subrentals.
(B) ascertaining the percentage which the total wages, salaries and other personal service compensation during the taxable year to employees, except general executive officers, serving in jobs created or retained in an eligible area (as the term "eligible area" was defined by section one hundred fifteen of the commerce law as it existed on March thirty-first, nineteen hundred eighty-three) by such business facility, bears to the total wages, salaries and other personal service compensation during such taxable year of such insurance corporation's employees within the state, except general executive officers.
(C) adding together the percentages so determined and dividing the result by two; provided, however, that if no wages, salaries or other personal service compensation was paid or incurred by the insurance corporation during such year to employees in this state, subparagraph

(B) of this paragraph shall be disregarded and the amount of credit allowable shall be determined by multiplying the tax otherwise due by the percentage specified in subparagraph (A) of this paragraph.
(3) In no event shall the credit herein provided for be allowed in an amount which will reduce the tax payable to less than the minimum fixed by paragraph four of subdivision (a) of section fifteen hundred two of such chapter.
(4) (A) Eligible property values, for the purposes of this subsection, shall include such part of the value of depreciable real and tangible personal property included in an eligible business facility as represents:
(i) expenditures paid or incurred by the taxpayer for capital improvements consisting of the construction, reconstruction, erection or improvement of real property included in an eligible business facility, which construction, reconstruction, erection or improvement was commenced on or after July first, nineteen hundred sixty-eight and expenditures paid or incurred by the taxpayer for the acquisition of real property, included in an eligible business facility, on or after January first, nineteen hundred seventy-seven.
(ii) in the case of real property leased by the taxpayer from another party, eight times the portion of the net annual rental rate attributable to such expenditures paid or incurred by the lessor for such construction, reconstruction, erection or improvement commenced on or after July first, nineteen hundred sixty-eight and, with respect to real property leased by the taxpayer from another party on or after January first, nineteen hundred seventy-seven, eight times any remaining portion of the net annual rental rate.
(iii) expenditures paid or incurred by the taxpayer for the purchase of tangible personal property, other than vehicles, included in an eligible business facility, provided such property was purchased on or after July first, nineteen hundred sixty-eight; and
(iv) in the case of tangible personal property, other than vehicles, leased by the taxpayer from another party and included in an eligible business facility, eight times the net annual rental rate, provided the period for which such property was leased by the taxpayer began on or after July first, nineteen hundred sixty-eight.
(B) Provided, however, eligible property values for purposes of this subsection shall not include expenditures paid or incurred more than one year prior to the filing of an application for a certificate of eligibility pursuant to section one hundred nineteen of the commerce law, as such section existed on March thirty-first, nineteen hundred eighty-three.
(5) The total of all credits allowed pursuant to this subdivision in any taxable year or years with reference to any eligible business facility shall not exceed the total eligible property values included in such facility.
(6) If a credit is allowed for any taxable year as herein provided on the basis of a certificate of eligibility, and if such certificate is revoked or modified, the taxpayer shall report such revocation or modification in its report for the taxable year during which it occurs and the tax commission shall recompute such credit and may assess any additional tax resulting from such recomputation within the time fixed by paragraph nine of subsection (c) of section ten hundred eighty-three of this chapter.
(7) If a business facility owned or operated by an insurance corporation shall be an eligible business facility for only part of a taxable year, the credit allowed by this subdivision shall be prorated according to the period such facility was an eligible business facility, and if the total of the eligible property values shall have changed during any taxable year, a pro-rata adjustment shall be made in computing such credit.
(8) The state tax commission shall be empowered, on or after April first, nineteen hundred eighty-three, to issue a certificate of eligibility for tax credits to a taxpayer for an eligible business facility with regard to which such taxpayer has, prior to July first, nineteen hundred eighty-three, received from the New York state job incentive board initial approval of an application for such certificate by such board as evidenced by the minutes of the meeting of the board at which such application was approved, or a letter of intent authorized by section 102.4 of part one hundred two of title five of the codes, rules and regulations of the state of New York regarding such certificate of eligibility and to renew, extend, revoke or modify a certificate of eligibility for tax credits, pursuant to section one hundred twenty of the commerce law as such section existed on March thirty-first, nineteen hundred eighty-three.
(9) For purposes of the requirement for eligibility for the credit allowed under this subdivision that a business facility create or retain not less than five jobs as provided in subdivision (c) of section one hundred eighteen of the commerce law as such section existed on March thirty-first, nineteen hundred eighty-three, a business facility shall have (i) created not less than five jobs only if the number of jobs for the taxable year exceeds the number of jobs at the time of the commencement of the project as stated on its application for initial approval by five or more; or (ii) retained not less than five jobs only if initial approval was based on the retention of five or more jobs and

(A) the number of jobs for the taxable year is at least equal to the number of jobs at the time of the commencement of the project as stated on its application for initial approval or (B) where initial approval was based on the retention of fewer jobs than the number of jobs at the time of the commencement of the project as stated on its application for initial approval, the number of jobs for the taxable year is at least equal to the number approved for retention. For purposes of this paragraph, the phrase "initial approval was based on the retention of five or more jobs" shall mean that such initial approval was given by the job incentive board to an applicant that had not stated in its application for initial approval that it would increase the number of jobs at its facility by at least five.
(e) Mortgage recording tax credit. (1) A taxpayer shall be allowed a credit, to be credited against the tax imposed by this article. The amount of the credit shall be the amount of the special additional mortgage recording tax paid by the taxpayer pursuant to the provisions of subdivision one-a of section two hundred fifty-three of this chapter on mortgages recorded on and after January first, nineteen hundred seventy-nine. Provided, however, no credit shall be allowed with respect to a mortgage of real property principally improved or to be improved by one or more structures containing in the aggregate not more than six residential dwelling units, each dwelling unit having its own separate cooking facilities, where the real property is located in one or more of the counties comprising the metropolitan commuter transportation district and where the mortgage is recorded on or after May first, nineteen hundred eighty-seven. Provided, however, no credit shall be allowed with respect to a mortgage of real property principally improved or to be improved by one or more structures containing in the aggregate not more than six residential dwelling units, each dwelling unit having its own separate cooking facilities, where the real property is located in the county of Erie and where the mortgage is recorded on or after May first, nineteen hundred eighty-seven.
(2) In no event shall the credit herein provided for be allowed in an amount which will reduce the tax payable to less than the minimum tax fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article or section fifteen hundred two-a of this article, whichever is applicable. If, however, the amount of credit allowable under this subdivision for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
(f) Credit relating to life and health insurance guaranty corporation assessments. (1) Allowance of credit. For taxable years beginning on or after January first, two thousand twenty-four, a credit shall be allowed against the tax imposed pursuant to this article (other than section fifteen hundred five-a of this article) as hereinafter provided.
(2) Amount of credit. The amount of the credit for each taxpayer shall equal the amount shown on the certificate of tax credit, or the amounts shown on such certificates, issued to such taxpayer pursuant to section seven thousand seven hundred twelve of the insurance law. With respect to each such certificate, the amount of the credit must be claimed in the taxable year that begins in the calendar year that such certificate is issued.
(3) Carryover. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the minimum fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article or section fifteen hundred two-a of this article, whichever is applicable. However, if the amount of credit allowable under this subdivision for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
(4) Eligibility. To be eligible for the credit, the taxpayer shall have been issued a certificate, or certificates, of tax credit by the department of financial services pursuant to section seven thousand seven hundred twelve of the insurance law, each of which certificates shall set forth the amount of the credit that may be claimed and the certificate date. A taxpayer that is a partner in a partnership, member of a limited liability company or shareholder in a subchapter S corporation that has received a certificate, or certificates, of tax credit shall be allowed its pro rata share of the credit earned by the partnership, limited liability company or subchapter S corporation.
(5) Tax return requirement. The taxpayer is required to include with its tax return in the form prescribed by the commissioner, proof of receipt of its certificate, or certificates, of tax credit issued by the department of financial services.
(6) Information sharing. Notwithstanding any provision of this chapter, employees of the department of financial services and the department shall be allowed and are directed to share and exchange:
(A) information regarding the credit allowed or claimed pursuant to this subdivision and taxpayers that are claiming the credit; and
(B) information contained in or derived from credit claim forms submitted to the department. All information exchanged between the department of financial services and the department shall not be subject to public disclosure or inspection under article six of the public officers law.
(7) Credit recapture. If a certificate of tax credit issued by the department of financial services under section seven thousand seven hundred twelve of the insurance law is revoked by such department, the amount of credit described in this subdivision and claimed by the taxpayer prior to such revocation shall be added back to tax in the taxable year in which any such revocation becomes final. If an amount of credit on any such certificate of tax credit is modified by the department of financial services, the difference between the amount of credit described in this subdivision and claimed by the taxpayer prior to such modification and the modified amount shall be added back to tax in the taxable year in which any such modification becomes final.
(8) Net assessments. No amount of any net assessments paid by such taxpayer included as the basis for the calculation of the amount shown on any such certificate shall be the basis for any other tax credit under this chapter.
(g) Empire zone wage tax credit. (1) A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article where the taxpayer has been certified pursuant to article eighteen-B of the general municipal law. The amount of the credit shall be as prescribed in paragraph four hereof.
(2) For purposes of this subdivision, the following terms shall have the following meanings: (A) "Empire zone wages" means wages paid by the taxpayer for full-time employment, other than to general executive officers, during the taxable year, in an area designated or previously designated as an empire zone or zone equivalent area pursuant to article eighteen-B of the general municipal law, where such employment is in a job created in the area (i) during the period of its designation as an empire zone, (ii) within four years of the expiration of such designation, or (iii) during the ten year period immediately following the date of designation as a zone equivalent area, provided, however, that if the taxpayer's certification under article eighteen-B of the general municipal law is revoked with respect to an empire zone or zone equivalent area, any wages paid by the taxpayer, on or after the effective date of such decertification, for employment in such zone shall not constitute empire zone wages.
(B) "Targeted employee" means a New York resident who receives empire zone wages and who is (i) an eligible individual under the provision of the targeted jobs tax credit (section fifty-one of the internal revenue code), (ii) eligible for benefits under the provisions of the workforce investment act as a dislocated worker or a low-income individual (P.L.
105-220, as amended), (iii) a recipient of public assistance benefits,

(iv) an individual whose income is below the most recently established poverty rate promulgated by the United States department of commerce, or a member of a family whose family income is below the most recently established poverty rate promulgated by the appropriate federal agency or (v) an honorably discharged member of any branch of the armed forces of the United States.
An individual who satisfies the criteria set forth in clause (i), (ii), (iv) or (v) at the time of initial employment in the job with respect to which the credit is claimed, or who satisfies the criterion set forth in clause (iii) at such time or at any time within the previous two years, shall be a targeted employee so long as such individual continues to receive empire zone wages.
(C) "Average number of individuals, excluding general executive officers, employed full-time" shall be computed by ascertaining the number of such individuals employed by the taxpayer on the thirty-first day of March, the thirtieth day of June, the thirtieth day of September and the thirty-first day of December during each taxable year or other applicable period, by adding together the number of such individuals ascertained on each of such dates and dividing the sum so obtained by the number of such dates occurring within such taxable year or other applicable period.
(3) The credit provided for herein shall be allowed only where the average number of individuals, excluding general executive officers, employed full-time by the taxpayer in (i) the state and, (ii) the empire zone or area previously constituting such zone or zone equivalent area, during the taxable year exceeds the average number of such individuals employed full-time by the taxpayer in (i) the state and (ii) such zone or area subsequently or previously constituting such zone or such zone equivalent area, respectively, during the four years immediately preceding the first taxable year in which the credit is claimed with respect to such zone or area. Where the taxpayer provided full-time employment within (i) the state or (ii) such zone or area during only a portion of such four-year period, then for purposes of this paragraph the term "four years" shall be deemed to refer instead to such portion, if any.
The credit shall be allowed only with respect to the first taxable year during which payments of empire zone wages are made and the conditions set forth in this paragraph are satisfied, and with respect to each of the four taxable years next following (but only, with respect to each of such years, if such conditions are satisfied), in accordance with paragraph four of this subdivision. Subsequent certifications of the taxpayer pursuant to article eighteen-B of the general municipal law, at the same or a different location in the same empire zone or zone equivalent area or at a location in a different empire zone or zone equivalent area, shall not extend the five taxable year time limitation on the allowance of the credit set forth in the preceding sentence.
Provided, further, however, that no credit shall be allowed with respect to any taxable year beginning more than four years following the taxable year in which designation as an empire zone expired or more than ten years after the designation as a zone equivalent area.
(4) The amount of the credit shall equal the sum of
(A) the product of three thousand dollars and the average number of individuals (excluding general executive officers) employed full-time by the taxpayer, computed pursuant to the provisions of subparagraph (C) of paragraph two of this subdivision, who (i) received empire zone wages for more than half of the taxable year,
(ii) received, with respect to more than half of the period of employment by the taxpayer during the taxable year, an hourly wage which was at least one hundred thirty-five percent of the minimum wage specified in section six hundred fifty-two of the labor law, and
(iii) are targeted employees; and
(B) the product of fifteen hundred dollars and the average number of individuals (excluding general executive officers and individuals described in subparagraph (A) of this paragraph) employed full-time by the taxpayer, computed pursuant to the provisions of subparagraph (C) of paragraph two of this subdivision, who received empire zone wages for more than half of the taxable year.
(C) For purposes of calculating the amount of the credit, individuals employed within an empire zone or zone equivalent area within the immediately preceding sixty months by a related person, as such term is defined in subparagraph (c) of paragraph three of subsection (b) of section four hundred sixty-five of the internal revenue code, shall not be included in the average number of individuals described in subparagraph (A) or subparagraph (B) of this paragraph, unless such related person was never allowed a credit under this subdivision with respect to such employees. For the purposes of this subparagraph, a "related person" shall include an entity which would have qualified as a "related person" to the taxpayer if it had not been dissolved, liquidated, merged with another entity or otherwise ceased to exist or operate.
(D) If a taxpayer is certified in an empire zone designated under subdivision (a) or (d) of section nine hundred fifty-eight of the general municipal law, the dollar amounts specified under subparagraph

(A) or (B) of this paragraph shall be increased by five hundred dollars for each qualifying individual under such subparagraph who received, during the taxable year, wages in excess of forty thousand dollars.
(E) The requirement in this paragraph that an employee must receive empire zone wages for more than half the taxable year shall not apply in the first taxable year of a taxpayer satisfying the criteria set forth in this subparagraph. In such a case, the credit allowed under this subdivision shall be computed by utilizing the number of individuals (excluding general executive officers) employed full time by the taxpayer on the last day of its first taxable year. A taxpayer shall satisfy the following criteria: (i) such taxpayer acquired real or tangible personal property during its first taxable year from an entity which is not a related person (as such term is defined in subdivision

(g) of section fourteen of this chapter); (ii) the first taxable year of such taxpayer shall be a short taxable year of not more than seven months in duration; and (iii) the number of individuals employed full-time on the last day of such first taxable year shall be at least one hundred ninety and substantially all of such individuals must have been previously employed by the entity from whom such enterprise purchased its assets.
Provided, further, however, that the credit provided for herein with respect to the taxable year, and carryovers of such credit to the taxable year, deducted from the tax otherwise due, may not, in the aggregate, exceed fifty percent of (i) in the case of taxpayers subject to tax under subdivision (b) of section fifteen hundred ten of this article, the lesser of (I) the limitation on tax computed pursuant to subdivision (a) of section fifteen hundred five, or (II) the greater of the sum of the taxes imposed under sections fifteen hundred one and fifteen hundred ten or the amount of tax computed pursuant to subdivision (b) of section fifteen hundred five, or (ii) for all other insurance corporations, the tax imposed under section fifteen hundred two-a of this article, computed without regard to any credit provided for under this article.
(5) The credit or carryovers of such credit allowed under this subdivision for any taxable year shall not, in the aggregate, reduce the tax due for such year to less than the minimum tax fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article or by section fifteen hundred two-a of this article, whichever is applicable. However, if the amount of credit or carryovers of such credit, or both, allowed under this subdivision for any taxable year reduces the tax to such amount, or if any part of the credit or carryovers of such credit may not be deducted from the tax otherwise due by reason of the final sentence in paragraph four hereof, any amount of credit or carryovers of such credit thus not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
(5-a) Any carry over of a credit from prior taxable years will not be allowed if an empire zone retention certificate is not issued pursuant to subdivision (w) of section nine hundred fifty-nine of the general municipal law to the empire zone enterprise which is the basis of the credit.
(g-1) Hire a vet credit. (1) Allowance of credit. For taxable years beginning on or after January first, two thousand fifteen and before January first, two thousand twenty-nine, a taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, for hiring and employing, for not less than twelve continuous and uninterrupted months (hereinafter referred to as the twelve-month period) in a full-time or part-time position, a qualified veteran within the state. The taxpayer may claim the credit in the year in which the qualified veteran completes the twelve-month period of employment by the taxpayer. If the taxpayer claims the credit allowed under this subdivision, the taxpayer may not use the hiring of a qualified veteran that is the basis for this credit in the basis of any other credit allowed under this article.
(2) Qualified veteran. A qualified veteran is an individual:
(A) who served on active duty in the United States army, navy, air force, space force, marine corps, coast guard or the reserves thereof, or who served in active military service of the United States as a member of the army national guard, air national guard, New York guard or New York naval militia, or who served in the active uniformed services of the United States as a member of the commissioned corps of the national oceanic and atmospheric administration or the commissioned corps of the United States public health service; who (i) was released from active duty by general or honorable discharge, or (ii) has a qualifying condition, as defined in section one of the veterans' services law, and has received a discharge other than bad conduct or dishonorable from such service, or (iii) is a discharged LGBT veteran, as defined in section one of the veterans' services law, and has received a discharge other than bad conduct or dishonorable from such service;
(B) who commences employment by the qualified taxpayer on or after January first, two thousand fourteen, and before January first, two thousand twenty-eight; and
(C) who certifies by signed affidavit, under penalty of perjury, that he or she has not been employed for thirty-five or more hours during any week in the one hundred eighty day period immediately prior to his or her employment by the taxpayer.
(3) Employer prohibition. An employer shall not discharge an employee and hire a qualifying veteran solely for the purpose of qualifying for this credit.
(4) Amount of credit. The amount of the credit shall be fifteen percent of the total amount of wages paid to the qualified veteran during the veteran's first twelve-month period of employment. Provided, however, that, if the qualified veteran is a disabled veteran, as defined in paragraph (b) of subdivision one of section eighty-five of the civil service law, the amount of the credit shall be twenty percent of the total amount of wages paid to the qualified veteran during the veteran's first twelve-month period of employment. The credit allowed pursuant to this subdivision shall not exceed in any taxable year: (i) fifteen thousand dollars for any qualified veteran, other than a disabled veteran, employed in a full-time position for one thousand eight hundred twenty or more hours in one twelve-month period, (ii) twenty thousand dollars for any qualified veteran who is a disabled veteran employed in a full-time position for one thousand eight hundred twenty or more hours in one twelve-month period, (iii) seven thousand five hundred dollars for any qualified veteran, other than a disabled veteran, employed in a part-time position for at least one thousand forty hours but not more than one thousand eight hundred nineteen hours in one twelve-month period, and (iv) ten thousand dollars for any qualified veteran who is a disabled veteran employed in a part-time position for at least one thousand forty hours but not more than one thousand eight hundred nineteen hours in one twelve-month period.
(5) Carryover. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the amount prescribed in paragraph four of subdivision (a) of section fifteen hundred two of this article or the minimum tax prescribed in section fifteen hundred two-a of this article, whichever is applicable.
However, if the amount of credit allowable under this subdivision for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year may be carried over to the following three years and may be deducted from the taxpayer's tax for such year or years.
(h) Empire zone capital credit. (1) A taxpayer shall be allowed a credit against the tax imposed by this article. The amount of the credit shall be equal to twenty-five percent of the sum of the following investments and contributions made during the taxable year and certified by the commissioner of economic development: (A) for taxable years beginning before January first, two thousand five, qualified investments made in, or contributions in the form of donations made to, one or more empire zone capital corporations established pursuant to section nine hundred sixty-four of the general municipal law prior to January first, two thousand five, (B) qualified investments in certified zone businesses which during the twelve month period immediately preceding the month in which such investment is made employed full-time within the state an average number of individuals, excluding general executive officers, of two hundred fifty or fewer, computed pursuant to the provisions of subparagraph (C) of paragraph two of subsection (g) of this section, except for investments made by or on behalf of an owner of the business, including, but not limited to, a stockholder, partner or sole proprietor, or any related person, as defined in subparagraph (C) of paragraph three of subsection (b) of section four hundred sixty-five of the internal revenue code, and (C) contributions of money to community development projects as defined in regulations promulgated by the commissioner of economic development. "Qualified investments" means the contribution of property to a corporation in exchange for original issue capital stock or other ownership interest, the contribution of property to a partnership in exchange for an interest in the partnership, and similar contributions in the case of a business entity not in corporate or partnership form in exchange for an ownership interest in such entity. The total amount of credit allowable to a taxpayer under this provision for all years, taken in the aggregate, shall not exceed three hundred thousand dollars, and shall not exceed one hundred thousand dollars with respect to the investments and contributions described in each of subparagraphs (A), (B) and (C) of this paragraph.
(2) The credit and carryover of such credit allowed under this subdivision for any taxable year shall not, in the aggregate, reduce the tax due for such year to less than the minimum fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article or by section fifteen hundred two-a of this article, whichever is applicable.
However, if the amount of credit or carryovers of such credit, or both, allowed under this subdivision for any taxable year reduces the tax to such amount, or if any part of the credit or carryovers of such credit may not be deducted from the tax otherwise due by reason of the final sentence of this paragraph, any amount of credit or carryovers of such credit thus not deductible in such taxable year may be carried over to the following year or years and may be deducted from the tax for such year or years. In addition, the amount of such credit, and carryovers of such credit to the taxable year, deducted from the tax otherwise due may not, in the aggregate, exceed fifty percent of (i) in the case of taxpayers subject to tax under subdivision (b) of section fifteen hundred ten of this article, the lesser of (I) the limitation on tax computed pursuant to subdivision (a) of section fifteen hundred five, or

(II) the greater of the sum of the taxes imposed under sections fifteen hundred one and fifteen hundred ten or the amount of tax computed pursuant to subdivision (b) of section fifteen hundred five, or (ii) for all other insurance corporations, the tax imposed under section fifteen hundred two-a of this article, computed without regard to any credit provided for under this article.
(2-a) Any carry over of a credit from prior taxable years will not be allowed to an empire zone enterprise which is the basis of the credit, if an empire zone retention certificate is not issued to such entity pursuant to subdivision (w) of section nine hundred fifty-nine of the general municipal law.
(3) Where the stock, partnership interest or other ownership interest arising from a qualified investment as described in subparagraphs (A) and (B) of paragraph one of this subdivision is disposed of, the taxpayer's entire net income shall be computed, pursuant to regulations promulgated by the commissioner, so as to properly reflect the reduced cost thereof arising from the application of the credit provided for herein.
(4)(A) Where a taxpayer sells, transfers or otherwise disposes of corporate stock, a partnership interest or other ownership interest arising from the making of a qualified investment which was the basis, in whole or in part, for the allowance of the credit provided for under this subdivision, or where a contribution or investment which was the basis for such allowance is in any manner, in whole or in part, recovered by such taxpayer, and such disposition or recovery occurs during the taxable year or within thirty-six months from the close of the taxable year with respect to which such credit is allowed, subparagraph (B) of this paragraph shall apply.
(B) The taxpayer shall add back with respect to the taxable year in which the disposition or recovery described in subparagraph (A) of this paragraph occurred the required portion of the credit originally allowed.
(C) The required portion of the credit originally allowed shall be the product of (i) the portion of such credit attributable to the property disposed of or the payment or contribution recovered and (ii) the applicable percentage.
(D) The applicable percentage shall be:
(i) one hundred percent, if the disposition or recovery occurs within the taxable year with respect to which the credit is allowed or within twelve months of the end of such taxable year,
(ii) sixty-seven percent, if the disposition or recovery occurs more than twelve but not more than twenty-four months after the end of the taxable year with respect to which the credit is allowed, or
(iii) thirty-three percent, if the disposition or recovery occurs more than twenty-four but not more than thirty-six months after the end of the taxable year with respect to which the credit is allowed.
(5) If the designation of an area as an empire zone is no longer in effect because the designations of all empire zones pursuant to article eighteen-B of the general municipal law have expired, a taxpayer that has made a contribution of money on or before the day immediately preceding the day the empire zones expired to a community development project approved by the commissioner of economic development shall be deemed eligible to claim the empire zone capital credit under subparagraph (C) of paragraph one of this subdivision for additional contributions made prior to April first, two thousand fourteen and certified by the commissioner of economic development to that community development project as payment of a commitment made by the taxpayer to that community development project before the empire zones expired.
(i) Credit for certain other taxes payable to other jurisdictions. (1) If, by the laws of any state other than this state, or by the action of any public official of such other state, an insurer organized or domiciled in this state, or the duly authorized agents thereof, shall be required to pay taxes for the privilege of doing business in such other state, which taxes are imposed or assessed because of amounts imposed upon and required to be paid by insurers organized or domiciled in such other state pursuant to section twenty-eight hundred seven-t of the public health law, then and in every case, to the extent such taxes are legally due to such other state, such insurer organized or domiciled in this state may claim a credit, as hereinafter provided, against the tax payable pursuant to this article of a sum not to exceed ninety per cent of such amount. Provided, such credit shall in no event be greater than the tax payable pursuant to this article during the taxable year with respect to which such taxes have been imposed or assessed by such other state. For purposes of this section, the term "taxes for the privilege of doing business" shall include, but shall not be limited to, a tax on or measured by income.
(2) A credit may be claimed for the amount computed as provided in paragraph one of this subdivision, on the return required pursuant to section fifteen hundred fifteen, against the tax imposed pursuant to this article for the taxable year in which such amount shall be paid. To the extent such credit shall exceed the amount payable pursuant to section fifteen hundred sixteen for the taxable year against which the credit is allowed, the difference between the amount allowed as a credit and the tax payable pursuant to section fifteen hundred sixteen shall be credited or refunded by the commissioner, without interest.
(3) The credit allowed pursuant to this subdivision shall be in addition to the credits allowed pursuant to subdivisions (a), (b) and

(c) of this section.
(4) The superintendent of financial services and the commissioner shall examine claims for credit or refund made under this subdivision.
If the superintendent of financial services or the commissioner shall determine that any tax for which a credit shall have been claimed was not legally due to another state or that an error exists in the amount of credit shown on such return or in the amount claimed as a refund or refunded, the commissioner shall take appropriate action under this chapter for the assessment and collection of any tax resulting from the disallowance of a claim for credit made under this subdivision or to disallow any such claim for refund.
(5) Any taxpayer which commences an action or proceeding in any state or federal court to contest the validity of any assessment made against the taxpayer by another state pursuant to a statute similar to section one thousand one hundred twelve of the insurance law or any other statute or regulation of another state under which retaliatory taxes or other charges are imposed or assessed against such taxpayer shall give the commissioner and the superintendent of financial services written notice of the commencement of such action or proceeding within five days after such commencement.
(6) The commissioner shall report annually, on or before the first day of March, on the amount of credits claimed pursuant to this subdivision on returns filed during the preceding calendar year. Such report shall be provided to the director of the budget, the commissioner of health and the superintendent of financial services.
(7) In addition to any other requirements of this article, an insurer claiming a credit under this subdivision shall attach to the returns required pursuant to section fifteen hundred fifteen a computation identifying the credit attributable to taxes paid to other states because of the amounts imposed and required to be paid pursuant to section twenty-eight hundred seven-t of the public health law, which credit shall be further broken down to reflect amounts and taxable years to which the retaliatory taxes giving rise to the credit relate.
(j) Credit for employment of persons with disabilities. (1) Allowance of credit. A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article, for employing within the state a qualified employee.
(2) Qualified employee. A qualified employee is an individual:
(A) who is certified by the education department, or in the case of an individual who is blind or visually handicapped, by the state agency responsible for provision of vocational rehabilitation services to the blind and visually handicapped: (i) as a person with a disability which constitutes or results in a substantial handicap to employment and (ii) as having completed or as receiving services under an individualized written rehabilitation plan approved by the education department or other state agency responsible for providing vocational rehabilitation services to such individual; and
(B) who has worked on a full-time basis for the employer who is claiming the credit for at least one hundred eighty days or four hundred hours.
(3) Amount of credit. Except as provided in paragraph four of this subdivision, the amount of credit shall be thirty-five percent of the first six thousand dollars in qualified first-year wages earned by each qualified employee. "Qualified first-year wages" means wages paid or incurred by the taxpayer during the taxable year to qualified employees which are attributable, with respect to any such employee, to services rendered during the one-year period beginning with the day the employee begins work for the taxpayer.
(4) Credit where federal work opportunity tax credit applies. With respect to any qualified employee whose qualified first-year wages under paragraph three of this subdivision also constitute qualified first-year wages for purposes of the work opportunity tax credit for vocational rehabilitation referrals under section fifty-one of the internal revenue code, the amount of credit under this subdivision shall be thirty-five percent of the first six thousand dollars in qualified second-year wages earned by each such employee. "Qualified second-year wages" means wages paid or incurred by the taxpayer during the taxable year to qualified employees which are attributable, with respect to any such employee, to services rendered during the one-year period beginning one year after the employee begins work for the taxpayer.
(5) Carryover. The credit and carryovers of such credit allowed under this subdivision for any taxable year shall not, in the aggregate, reduce the tax due for such year to less than the minimum tax fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article or by section fifteen hundred two-a of this article, whichever is applicable. However, if the amount of credit or carryovers of such credit, or both, allowed under this subdivision for any taxable year reduces the tax to such amount, then any amount of credit or carryovers of such credit thus not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
(6) Coordination with federal work opportunity tax credit. The provisions of sections fifty-one and fifty-two of the internal revenue code, as such sections applied on October first, nineteen hundred ninety-six, that apply to the work opportunity tax credit for vocational rehabilitation referrals shall apply to the credit under this subdivision to the extent that such sections are consistent with the specific provisions of this subdivision, provided that in the event of a conflict the provisions of this subdivision shall control.
(k) Credit for certain investments in certified capital companies. (1) A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article. The amount of the credit shall be equal to one hundred percent of an investment of certified capital in a certified capital company program made by the taxpayer pursuant to section eleven of this chapter.
(2) Ten percent of such credit shall be allowed in the taxable year to which such investment is allocated pursuant to subdivision (h) of section eleven of this chapter and in each of the nine following taxable years. In addition, in any taxable year subsequent to the taxable year for which such investment is so allocated, any amount carried forward under paragraphs three and four of this subdivision may be carried forward indefinitely until such credits are utilized.
(3) No credit allowable pursuant to this subdivision shall reduce the tax payable under this article to less than the minimum tax fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article or by section fifteen hundred two-a of this article, whichever is applicable. If, however, the amount of credit allowable under this subdivision for any taxable year reduces the tax to such amount, any amount of credit not taken in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
(4) If for any taxable year the credit allowable under paragraph two of this subdivision exceeds such minimum tax for such taxable year, then the amount by which such credit exceeds such minimum tax liability shall be carried forward as a credit under paragraph two of this subdivision to the following year or years and may be deducted from the taxpayer's tax for such year or years.
(5) Decertification of a certified capital company from a certified capital company program shall cause the disallowance and the recapture of the credit allowed under paragraph one of this subdivision, as follows:
(A) Decertification of a certified capital company from a certified capital company program within two years of its starting date prior to meeting the requirements of subparagraph (A) of paragraph one of subdivision (c) of section eleven of this chapter shall cause disallowance of one hundred percent of the credit allowed under paragraph one of this subdivision with respect to such certified capital company program and the recapture of any portion of such credit that was previously taken.
(B) Decertification of a certified capital company from a certified capital company program which, having met all requirements of subparagraph (A) of paragraph one of subdivision (c) of section eleven of this chapter, subsequently fails to meet the requirements for continued certification under the provisions of subparagraph (B) of such paragraph one, shall cause the disallowance of eighty-five percent of the credit allowed under paragraph one of this subdivision with respect to such certified capital company program and recapture of any portion of such credit in excess of fifteen percent that was previously taken.
(C) Decertification of a certified capital company from a certified capital company program which, having met all requirements of subparagraphs (A) and (B) of paragraph one of subdivision (c) of section eleven of this chapter, subsequently fails to meet the requirements for continued certification under the provisions of subparagraph (C) of such paragraph one, shall cause the disallowance of seventy percent of the credit allowed under paragraph one of this subdivision with respect to such certified capital company program and the recapture of any portion of such credit in excess of thirty percent that was previously taken.
(D) Decertification of a certified capital company from a certified capital company program pursuant to paragraph two of subdivision (e) of section eleven of this chapter, other than on the grounds of the failure of such certified capital company to meet the requirements of subparagraphs (A), (B) or (C) of paragraph one of subdivision (c) of such section, shall not cause the disallowance of any of the credits allowed under paragraph one of this subdivision with respect to such certified capital company program, nor the recapture of any portion of such credits that was previously taken.
(E) If, after twelve years after a certified capital company receives an investment of certified capital under certified capital company program four and any subsequent program, such certified capital company has failed to invest one hundred percent of its certified capital allocable to such certified capital company program in qualified investments, such certified capital company shall be required to pay to the department, for deposit in the general fund, an amount equal to two times the amount of net profits on qualified investments as required under paragraph five of subdivision (d) of section eleven of this chapter at such subsequent time when it has fully invested one hundred percent and has begun to make a distribution of its net profits;
provided that such requirement shall not apply to a certified capital company in which at least fifty percent of the voting stock, capital, membership interests, or other beneficial ownership interests, as the case may be, are owned by an entity that is managed, directly or indirectly, by a non-profit corporation. This amount of payment to the department shall not be reduced by the amount set forth in paragraph six of subdivision (d) of section eleven of this chapter, and a certified capital company making a payment under this paragraph shall not be eligible to create a fund pursuant to such paragraph six of subdivision

(d) of section eleven of this chapter for that particular certified capital company program.
(6) Revocation of certification from a certified capital company program pursuant to subdivision (f) of section eleven of this chapter, before the later of (i) the third anniversary of the certification date of the certified capital company or (ii) the date on which the certified capital company satisfies the requirements of subparagraph (C) of paragraph one of subdivision (c) of section eleven of this chapter, shall cause disallowance of one hundred percent of the credit allowed under paragraph one of this subdivision with respect to such certified capital company program and the recapture of any portion of such credit that was previously taken.
(7) No credit shall be allowed in any tax year in which the taxpayer shall, individually or with or through one or more affiliates, be a managing general partner of or underwrite or control the direction of investments of a certified capital company for which the credit was allowed under paragraph one of this subdivision. This provision shall not preclude a certified investor, insurance company or any other party from exercising its legal rights and remedies (which may include interim management of a certified capital company) in the event that a certified capital company is in default of its statutory obligations or its contractual obligations to such certified investor, insurance company or other party or from monitoring the certified capital company to ensure its compliance with section eleven of this chapter or disallowing any investments that have not been approved by the superintendent pursuant to subparagraph (D) of paragraph one of subdivision (c) of such section eleven. For purposes of this paragraph, affiliate shall mean a business entity in which the taxpayer holds at least a ten percent beneficial interest.
(8) A certified investor allowed a credit against its state tax liability earned through an investment in a certified capital company shall not be required to pay any additional retaliatory tax levied pursuant to section eleven hundred twelve of the insurance law as a result of claiming such credit.
(9) A taxpayer is permitted to transfer or sell tax credits allowed under this subdivision, in whole or in part, to any affiliate within an affiliated group of taxpayers, who are subject to tax in this state under this article. Such transfer or sale shall not affect the time schedule for claiming the credit transferred or sold. Any credit recaptured shall be the liability of the taxpayer who actually claimed the credit. The claim of a transferee shall be permitted in the same manner and subject to the same provisions and limitations of section eleven of this chapter as applied to the taxpayer to whom the credit was originally allowed. For purposes of this paragraph, the term "affiliated group" shall have the same meaning as described in section fifteen hundred four of the internal revenue code, without exclusion for a company listed under paragraph two of subsection (b) of section fifteen hundred four of the internal revenue code, except that the references to "at least eighty percent" in such section fifteen hundred four shall be read as "more than fifty percent". Whenever a taxpayer transfers or sells a tax credit pursuant to this paragraph, such taxpayer shall notify the department and the department of financial services of such transfer or sale within forty-five days.
(l) Credit for purchase of an automated external defibrillator. A taxpayer shall be allowed a credit as hereinafter provided, against the tax imposed by this article for the purchase, other than for resale, of an automated external defibrillator, as such term is defined in section three thousand-b of the public health law. The amount of the credit shall be the cost to the taxpayer of automated external defibrillators purchased during the taxable year, such credit not to exceed five hundred dollars with respect to each unit purchased. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the minimum tax fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article or by section fifteen hundred two-a of this article, whichever is applicable.
(m) (1) A taxpayer shall be allowed a credit against the tax imposed by this article equal to twenty percent of the premium paid during the taxable year for long-term care insurance. In order to qualify for such credit, the taxpayer's premium payment must be for the purchase of or for continuing coverage under a long-term care insurance policy that qualifies for such credit pursuant to section one thousand one hundred seventeen of the insurance law.
(2) In no event shall the credit herein provided for be allowed in an amount which will reduce the tax payable to less than the minimum tax fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article or by section fifteen hundred two-a of this article, whichever is applicable. If, however, the amount of credit allowable under this subdivision for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
(n) Low-income housing credit. (1) Allowance of credit. A taxpayer shall be allowed a credit against the tax imposed by this article with respect to the ownership of eligible low-income buildings, computed as provided in section eighteen of this chapter.
(2) Application of credit. The credit and carryovers of such credit allowed under this subdivision for any taxable year shall not, in the aggregate, reduce the tax due for such year to less than the minimum tax fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article or by section fifteen hundred two-a of this article, whichever is applicable. However, if the amount of credit or carryovers of such credit, or both, allowed under this subdivision for any taxable year reduces the tax to such amount, then any amount of credit or carryovers of such credit thus not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
(3) Credit recapture. For provisions requiring recapture of credit, see subdivision (b) of section eighteen of this chapter.
(o) Green building credit. (1) Allowance of credit. A taxpayer shall be allowed a credit, to be computed as provided in section nineteen of this chapter, against the taxes imposed by this article.
(2) Carryover. The credit and carryovers of such credit allowed under this subdivision for any taxable year shall not, in the aggregate, reduce the tax due for such year to less than the minimum tax fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article or by section fifteen hundred two-a of this article, whichever is applicable. However, if the amount of credit or carryovers of such credit, or both, allowed under this subdivision for any taxable year reduces the tax to such amount, then any amount of credit or carryovers of such credit thus not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
(p) Credit for transportation improvement contributions. (1) Allowance of credit. A taxpayer shall be allowed a credit, to be computed as provided in section twenty of this chapter, against the taxes imposed by this article.
(2) Application of credit. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the minimum tax fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article or by section fifteen hundred two-a of this article, whichever is applicable. However, if the amount of credit allowed under this subdivision for any taxable year reduces the tax to such amount, then any amount of credit thus not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section ten hundred eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section ten hundred eighty-eight of this chapter notwithstanding, no interest shall be paid thereon.
(3) Credit recapture. For provisions requiring recapture of credit, see subdivision (c) of section twenty of this chapter.
(q) Investment tax credit (ITC). (1) A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article. Provided, however, a taxpayer shall not be allowed such credit provided by this subdivision unless (A) eighty percent or more of the employees performing the administrative and support functions resulting from or related to the qualifying uses of such equipment are located in this state, or (B) the average number of employees that perform the administrative and support functions resulting from or related to the qualifying uses of such equipment and are located in this state during the taxable year for which the credit is claimed is equal to or greater than ninety-five percent of the average number of employees that perform these functions and are located in this state during the thirty-six months immediately preceding the year for which the credit is claimed, or (C) the number of employees located in this state during the taxable year for which the credit is claimed is equal to or greater than ninety percent of the number of employees located in this state on December thirty-first, nineteen hundred ninety-eight or, if the taxpayer was not a calendar year taxpayer in nineteen hundred ninety-eight, the last day of its first taxable year ending after December thirty-first, nineteen hundred ninety-eight. If the taxpayer becomes subject to tax in this state after the taxable year beginning in nineteen hundred ninety-eight, then the taxpayer is not required to satisfy the employment test provided in the preceding sentence of this subparagraph for its first taxable year. For purposes of subparagraph

(C) of this paragraph the employment test will be based on the number of employees located in this state on the last day of the first taxable year the taxpayer is subject to tax in this state. If the uses of the property must be aggregated to determine whether the property is principally used in qualifying uses, then either each affiliate using the property must satisfy this employment test or this employment test must be satisfied through the aggregation of the employees of the taxpayer, its affiliated regulated broker, dealer, and registered investment adviser using the property. The amount of the credit shall be the percent provided for herein below of the investment credit base. The investment credit base is the cost or other basis for federal income tax purposes of tangible personal property and other tangible property, including buildings and structural components of buildings, described in paragraph two of this subdivision, less the amount of the nonqualified nonrecourse financing with respect to such property to the extent such financing would be excludible from the credit base pursuant to section 46(c)(8) of the Internal Revenue Code (treating such property as section thirty-eight property irrespective of whether or not it in fact constitutes section thirty-eight property). If, at the close of a taxable year following the taxable year in which such property was placed in service, there is a net decrease in the amount of nonqualified nonrecourse financing with respect to such property, such net decrease shall be treated as if it were the cost or other basis of property described in paragraph two of this subdivision acquired, constructed, reconstructed or erected during the year of the decrease in the amount of nonqualified nonrecourse financing. In the case of a combined return, the term investment credit base shall mean the sum of the investment credit base of each corporation included on such return. The percentage to be used to compute the credit allowed pursuant to this subdivision shall be five percent with respect to the first three hundred fifty million dollars of the investment credit base, and four percent with respect to the investment credit base in excess of three hundred fifty million dollars.
(2) A credit shall be allowed under this subdivision with respect to tangible personal property and other tangible property, including buildings and structural components of buildings, which are: depreciable pursuant to section one hundred sixty-seven of the Internal Revenue Code, have a useful life of four years or more, are acquired by purchase as defined in section one hundred seventy-nine (d) of the Internal Revenue Code, have a situs in this state and are (A) principally used in the ordinary course of the taxpayer's trade or business as a broker or dealer in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of stocks, bonds or other securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, or of commodities as defined in section four hundred seventy-five (e) of the Internal Revenue Code, or (B) principally used in the ordinary course of the taxpayer's trade or business of providing investment advisory services for a regulated investment company as defined in section eight hundred fifty-one of the Internal Revenue Code, or lending, loan arrangement or loan origination services to customers in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code. For purposes of subparagraphs (A) and (B) of this paragraph, property purchased by a taxpayer affiliated with a regulated broker, dealer or registered investment adviser is allowed a credit under this subdivision if the property is used by its affiliated regulated broker, dealer or registered investment adviser in accordance with this subdivision. For purposes of determining if the property is principally used in qualifying uses, the uses by the taxpayer described in subparagraphs (A) and (B) of this paragraph may be aggregated. In addition, the uses by the taxpayer, its affiliated regulated broker, dealer and registered investment adviser under either or both of such subparagraphs may be aggregated.
(3) A taxpayer shall not be allowed a credit under this subdivision with respect to tangible personal property and other tangible property, including buildings and structural components of buildings, which it leases to any other person or corporation except where a taxpayer leases property to an affiliated broker, dealer, or registered investment adviser that uses such property in accordance with subparagraph (A) or

(B) of paragraph two of this subdivision. For purposes of the preceding sentence, any contract or agreement to lease or rent or for a license to use such property shall be considered a lease.
(4) Except as otherwise provided in this paragraph, the credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the amount fixed as a minimum tax by paragraph four of subdivision (a) of section fifteen hundred two of this article or by section fifteen hundred two-a of this article, whichever is applicable. However, if the amount of credit allowable under this subdivision for any taxable year reduces the tax to such amount, any amount of credit allowed for a taxable year may be carried over to the fifteen taxable years next following such taxable year and may be deducted from the taxpayer's tax for such year or years. In lieu of such carryover, any such taxpayer which qualifies as a new business under paragraph seven of this subdivision may elect to treat the amount of such carryover as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter, provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding no interest shall be paid thereon.
(5) At the option of the taxpayer an eligible business facility for which a credit is allowed under subdivision (d) of this section may be treated as property (A) principally used in the ordinary course of the taxpayer's trade or business as a broker or dealer in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of stocks, bonds or other securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, or of commodities as defined in section four hundred seventy-five (e) of the Internal Revenue Code, or (B) principally used in the ordinary course of the taxpayer's trade or business of providing investment advisory services for a regulated investment company as defined in section eight hundred fifty-one of the Internal Revenue Code, or lending, loan arrangement or loan origination services to customers in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code provided the property otherwise qualifies under paragraph two of this subdivision, in which event a credit shall not be allowed under subdivision (d) of this section.
(6) (A) With respect to property which is depreciable pursuant to section one hundred sixty-seven of the Internal Revenue Code but is not subject to the provisions of section one hundred sixty-eight of such code and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in this subdivision which represents the ratio which the months of qualified use bear to the months of useful life. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of its useful life, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. Provided, however, if such property is disposed of or ceases to be in qualified use after it has been in qualified use for more than twelve consecutive years, it shall not be necessary to add back the credit as provided in this subparagraph. The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio which the months of qualified use bear to the months of useful life. For purposes of this subparagraph, useful life of property shall be the same as the taxpayer uses for depreciation purposes when computing his federal income tax liability.
(B) Except with respect to that property to which subparagraph (D) of this paragraph applies, with respect to three-year property, as defined in subsection (e) of section one hundred sixty-eight of the Internal Revenue Code, which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in this subdivision which represents the ratio which the months of qualified use bear to thirty-six. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of thirty-six months, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio which the months of qualified use bear to thirty-six.
(C) Except with respect to that property to which subparagraph (D) of this paragraph applies, with respect to property subject to the provisions of section one hundred sixty-eight of the Internal Revenue Code, other than three-year property as defined in subsection (e) of such section one hundred sixty-eight which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in this subdivision which represents the ratio which the months of qualified use bear to sixty. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of sixty months, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio which the months of qualified use bear to sixty.
(D) With respect to any property to which section one hundred sixty-eight of the Internal Revenue Code applies, which is a building or a structural component of a building and which is disposed of or ceases to be in a qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in this subdivision which represents the ratio which the months of qualified use bear to the total number of months over which the taxpayer chooses to deduct the property under the Internal Revenue Code. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of the period over which the taxpayer chooses to deduct the property under the Internal Revenue Code, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. Provided, however, if such property is disposed of or ceases to be in qualified use after it has been in qualified use for more than twelve consecutive years, it shall not be necessary to add back the credit as provided in this subparagraph. The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio which the months of qualified use bear to the total number of months over which the taxpayer chooses to deduct the property under the Internal Revenue Code.
(E) The amount required to be added back pursuant to this paragraph shall be augmented by an amount equal to the product of such amount and the underpayment rate of interest (without regard to compounding), set by the commissioner pursuant to subsection (e) of section one thousand ninety-six of this chapter, in effect on the last day of the taxable year.
(F) If, as of the close of the taxable year, there is a net increase with respect to the taxpayer in the amount of nonqualified nonrecourse financing (within the meaning of section 46(c)(8) of the Internal Revenue Code) with respect to any property with respect to which the credit under this subdivision was limited based on attributable nonqualified nonrecourse financing, then an amount equal to the decrease in such credit which would have resulted from reducing, by the amount of such net increase, the cost or other basis taken into account with respect to such property must be added back in such taxable year. The amount of nonqualified nonrecourse financing shall not be treated as increased by reason of a transfer of (or agreement to transfer) any evidence of an indebtedness if such transfer occurs (or such agreement is entered into) more than one year after the date such indebtedness was incurred.
(7) For purposes of paragraph four of this subdivision, a new business shall include any corporation, except a corporation which:
(A) over fifty percent of the number of shares of stock entitling the holders thereof to vote for the election of directors or trustees is owned or controlled, either directly or indirectly, by a taxpayer subject to tax under this article; section one hundred eighty-three, one hundred eighty-four, former section one hundred eighty-five or former section one hundred eighty-six of article nine; article nine-A or article thirty-two of this chapter; or
(B) is substantially similar in operation and in ownership to a business entity (or entities) taxable, or previously taxable, under this article; section one hundred eighty-three, one hundred eighty-four, one hundred eight-five or one hundred eighty-six of article nine; article nine-A or article thirty-two of this chapter; article twenty-three of this chapter or which would have been subject to tax under such article twenty-three (as such article was in effect of January first, nineteen hundred eighty) or the income (or losses) of which is (or was) includable under article twenty-two of this chapter whereby the intent and purpose of this paragraph and paragraph four of this subdivision with respect to refunding of credit to new business would be evaded; or
(C) has been subject to tax under this article for more than five taxable years (excluding short taxable years).
(8)(A)(i) If a taxpayer is required by paragraph six of this subdivision to add back a portion of the credit taken because property was destroyed or ceased to be in qualified use as a direct result of the September eleventh, two thousand one terrorist attacks, such taxpayer may elect to defer the amount to be recaptured for all such property to the taxable year next succeeding the taxable year in which the destruction or cessation of qualified use occurred. The taxable year in which the destruction or cessation of qualified use occurred shall be hereinafter referred to as the "recapture event taxable year". If the taxpayer's total employment number in the state on the last day of taxable year next succeeding the recapture event taxable year is a significant percentage of the taxpayer's average total employment number in the state for the taxpayer's recapture event taxable year and the two taxable years immediately preceding the recapture event taxable year, then the taxpayer shall not be required to recapture any credit with respect to such property. If the taxpayer's total employment number in the state on the last day of the taxable year next succeeding the recapture event taxable year is not a significant percentage of the taxpayer's average total employment number in the state for the taxpayer's recapture event taxable year and the two taxable years immediately preceding the recapture event taxable year, the taxpayer shall be required to recapture the portion of the credit taken under this subdivision, as required by paragraph six of this subdivision, for all of its property destroyed or which ceased to be in qualified use as a direct result of the September eleventh, two thousand one terrorist attacks. The amount required to be recaptured shall be augmented as required pursuant to subparagraph (E) of paragraph six of this subdivision by using an interest rate equal to two times the rate of interest specified in such subparagraph (E) applicable for the taxable year in which the recapture occurs.
(ii) The taxpayer's total employment number shall include all employees of the taxpayer employed full-time by the taxpayer in the state. The average total employment number for the taxpayer's recapture event taxable year and the two taxable years immediately preceding the recapture event taxable year shall be computed by determining the taxpayer's total employment number on the thirty-first day of March, the thirtieth day of June, the thirtieth day of September and the thirty-first day of December during the applicable taxable years, adding together the number of such individuals determined to be so employed on each of such dates and dividing the sum so obtained by the number of such dates occurring within such applicable taxable years. However, in the case of the taxable year which included September eleventh, two thousand one, the average total employment number for such taxable year shall be determined by using the total employment number on September first, two thousand one in lieu of September thirtieth, two thousand one and, if such taxable year included December thirty-first, two thousand one, by excluding the total employment number on December thirty-first, two thousand one.
(B) In lieu of subparagraph (A) of this paragraph, a taxpayer may elect to recapture the portion of the credit taken under this subdivision, as required by paragraph six of this subdivision, for all of its property destroyed or which ceased to be in qualified use as a direct result of the September eleventh, two thousand one terrorist attacks, in the taxable year in which the destruction or cessation of qualified use occurred. If the taxpayer makes such election and acquires property (hereinafter referred to as "replacement property") to replace any property destroyed as a direct result of the September eleventh, two thousand one terrorist attacks (regardless of when such property was placed in service and whether a credit was claimed on that property pursuant to this subdivision), and such replacement property is similar or related in service or use to such destroyed property, the investment credit base of the replacement property shall be determined without regard to any basis reduction required pursuant to section 1033 of the internal revenue code.
(C) The election made by the taxpayer under subparagraph (A) or (B) of this paragraph shall be made in the manner and form prescribed by the commissioner.
(D) A taxpayer, over fifty percent of whose employees died as a direct result of the September eleventh, two thousand one terrorist attacks, may make the election provided for in subparagraph (A) of this paragraph, and shall not be required to recapture any credit with respect to property which was destroyed or which ceased to be in qualified use as a direct result of such attacks, whether or not it meets the employment test specified in clause (i) of subparagraph (A) of this paragraph.
(r) QEZE credit for real property taxes. (1) Allowance of credit. A taxpayer which is a qualified empire zone enterprise shall be allowed a credit for eligible real property taxes, to be computed as provided in section fifteen of this chapter, against the tax imposed by this article.
(2) Application of credit. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the minimum tax fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article or by section fifteen hundred two-a of this article, whichever is applicable. However, if the amount of credit allowed under this subdivision for any taxable year reduces the tax to such amount, then any amount of credit thus not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section ten hundred eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section ten hundred eighty-eight of this chapter notwithstanding, no interest shall be paid thereon.
(s) QEZE tax reduction credit. (1) Allowance of credit. A taxpayer which is a qualified empire zone enterprise shall be allowed a QEZE tax reduction credit, to be computed as provided in section sixteen of this chapter, against the tax imposed by this article.
(2) Application of credit. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the minimum tax fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article or by section fifteen hundred two-a of this article, whichever is applicable.
(t) Order of credits. Notwithstanding the succeeding sentences of this subdivision, the credits provided for in subdivisions (g) and (h) of this section shall be deducted before any other credits allowable under this article, and the credit provided for in such subdivision (g) shall be deducted after the credit provided for in such subdivision (h). After application of the first sentence of this subdivision, the credits allowable under this article which cannot be carried over and which are not refundable shall be deducted first. Credits allowable under this article which can be carried over, and carryovers of such credits, shall be deducted next, and among such credits, those whose carryover is of limited duration shall be deducted before those whose carryover is of unlimited duration. Credits allowable under this article which are refundable shall be deducted last. Credits under subdivisions (g) and

(h) of this section may not be deducted from the limitation on tax computed pursuant to subdivision (a) of section fifteen hundred five of this article.
(u) Brownfield redevelopment tax credit. (1) Allowance of credit. A taxpayer shall be allowed a credit, to be computed as provided in section twenty-one of this chapter, against the taxes imposed by this article.
(2) Application of credit. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the minimum fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article. However, if the amount of credits allowed under this subdivision for any taxable year reduces the tax to such amount, any amount of credit thus not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section ten hundred eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section ten hundred eighty-eight of this chapter notwithstanding, no interest shall be paid thereon.
(v) Remediated brownfield credit for real property taxes for qualified sites. (1) Allowance of credit. A taxpayer which is a developer of a qualified site shall be allowed a credit for eligible real property taxes, to be computed as provided in subdivision (b) of section twenty-two of this chapter, against the tax imposed by this article. For purposes of this subdivision, the terms "qualified site" and "developer"
shall have the same meaning as set forth in paragraphs two and three, respectively, of subdivision (a) of section twenty-two of this chapter.
(2) Application of credit. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the minimum tax fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article. However, if the amount of credit allowed under this subdivision for any taxable year reduces the tax to such amount, any amount of credit thus not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section ten hundred eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section ten hundred eighty-eight of this chapter notwithstanding, no interest shall be paid thereon.
(w) Environmental remediation insurance credit. (1) Allowance of credit. A taxpayer shall be allowed a credit, to be computed as provided in section twenty-three of this chapter, against the taxes imposed by this article.
(2) Application of credit. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the minimum fixed by paragraph four of subdivision (a) of section fifteen hundred two or section fifteen hundred two-a of this article.
However, if the amount of credits allowed under this subdivision for any taxable year reduces the tax to such amount, any amount of credit thus not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon.
* (x) Security training tax credit. (1) Allowance of credit. A taxpayer shall be allowed a credit, to be computed as provided in section twenty-six of this chapter, against the tax imposed by this article.
(2) Application of credit. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the minimum fixed by paragraph four of subdivision (a) of section fifteen hundred two or section fifteen hundred two-a of this article.
However, if the amount of credits allowed under this subdivision for any taxable year reduces the tax to such amount, any amount of credit thus not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon.
* NB There are 2 sb (x)'s
* (x) Credit for fuel cell electric generating equipment expenditures.