N.Y. Tax Law § 863 — Pass-through entity tax credit

§ 863. Pass-through entity tax credit. (a) Personal income tax credit.\n(1) A taxpayer subject to tax under article twenty-two of this chapter\nthat is a direct partner or member in an electing partnership or a\ndirect shareholder of an electing S corporation subject to tax under\nthis article shall be allowed a credit against the tax imposed pursuant\nto article twenty-two of this chapter, computed pursuant to the\nprovisions of subsection (kkk) of section six hundred six of this\nchapter. An entity that is disregarded for tax purposes will be\ndisregarded for purposes of determining if a taxpayer is a direct\npartner or member of an electing partnership or direct shareholder of an\nelecting S corporation.\n (2) Limitation on credit. No credit shall be allowed to a taxpayer\nunder paragraph one of this subsection unless the electing partnership\nor electing S corporation paid the tax imposed under this article and\nprovided sufficient information on the pass-through entity tax return as\nprescribed by the commissioner to identify that taxpayer. Such\ninformation shall include, but not be limited to, the social security\nnumber or taxpayer identification number of the article twenty-two\ntaxpayer who will claim the credit (even in the case of a disregarded\nentity owned by such taxpayer).\n (b) Limitation on credit. The aggregate amount of credits claimed by\nall partners, members or shareholders of an electing partnership or\nelecting S corporation pursuant to subsection (a) of this section shall\nnot exceed the tax due under subsection (a) of section eight hundred\nsixty-two of this article from such electing partnership or electing S\ncorporation for the taxable year.\n