N.Y. Tax Law § 870 — City pass-through entity tax credit

§ 870. City pass-through entity tax credit. (a) Personal income tax\ncredit. (1) A city taxpayer who is a direct partner or member in an\nelecting city partnership or a direct shareholder of an electing city\nresident S corporation subject to tax under this article shall be\nallowed a credit against the tax imposed pursuant to the authority of\narticle thirty of this chapter, computed pursuant to the provisions of\nsubsection (g) of section thirteen hundred ten of this chapter. An\nentity that is disregarded for tax purposes will be disregarded for\npurposes of determining if a city taxpayer is a direct partner or member\nof an electing city partnership or a direct shareholder of an electing\ncity resident S corporation.\n (2) Limitation on credit. No credit shall be allowed to a city\ntaxpayer under paragraph one of this subsection unless the electing city\npartnership or electing city resident S corporation paid the tax imposed\nunder this article and provided sufficient information on the city\npass-through entity tax return as prescribed by the commissioner to\nidentify such city taxpayer. Such information shall include, but not be\nlimited to, the social security number or taxpayer identification number\nof the city taxpayer who will claim the credit (even in the case of a\ndisregarded entity owned by such city taxpayer).\n (b) Limitation on credit. The aggregate amount of credits claimed by\nall partners, members or shareholders of an electing city partnership or\nan electing city resident S corporation pursuant to subsection (a) of\nthis section shall not exceed the tax due under section eight hundred\nsixty-nine of this article from such electing city partnership or\nelecting city resident S corporation for the taxable year.\n