Free CT-41-I (Instructions) - New York

New York State Department of Taxation and Finance

Instructions for Form CT-41
Claim for Credit for Employment of Persons with Disabilities
Definitions

CT-41-I

Important reminder to file a complete return: You must complete all required schedules and forms that make up your return, and include all pages of those forms and schedules when you file. Returns that are missing required pages or that have pages with missing entries are considered incomplete and cannot be processed, and may subject taxpayers to penalty and interest.

General information
The Tax Law allows a credit for employment of persons with disabilities. A taxpayer is allowed the credit for employing a qualified employee within New York State. For the employer to claim the credit, the qualified employee must be certified. For information on certification, call the New York State Department of Labor's Economic Development Services Unit at 1 800 4728612 (from New York State only) or, from areas outside New York State, (518) 4576823. For additional information about the credit, see TSBM98(3)C, Credit for Employment of Persons with Disabilities.

A qualified employee is an employee who: · qualifiesasavocationalrehabilitationreferralforpurposesofthe federal work opportunity credit under IRC section 51 (see federal Form 5884); · hasworkedfortheemployeronafull-timebasisforatleast180days or 400 hours (does not need to be continuous); and · iscertifiedbytheNewYorkStateEducationDepartment'sOfficeof Vocational and Educational Services for Individuals with Disabilities (VESID),orbytheStateofNewYorkOfficeofChildrenandFamily Services' Commission for the Blind and Visually Handicapped (CBVH), as a person with a disability that constitutes or results in a substantial handicap to employment and who has completed or is receiving services under an individualized written rehabilitation plan approved by VESID or by CBVH. In cooperation with VESID and CBVH, the New York State Department of Labor's Economic Development Services Unit administers the certification program. Qualified first-year wages are wages paid or incurred by the taxpayer during the tax year to a qualified employee (as described above) for services rendered during the oneyear period beginning with the day the employee begins work for the taxpayer. If the qualified employee did not work for the taxpayer for a full year, the oneyear period begins with the date the employee began work for the taxpayer and ends on the last date of employment with the taxpayer. Qualified second-year wages are wages paid or incurred by the taxpayer during the tax year to a qualified employee (as described above) for services rendered during the oneyear period beginning one year after the employee begins work for the taxpayer. If the qualified employee did not work for the taxpayer for a full year after the first year, the oneyear period begins with the date one year after the employee began work for the taxpayer and ends on the last date of employment with the taxpayer. Note: If the oneyear period covers two tax years, depending upon the amount of wages paid, part of your credit may be allowed in the current tax year and part may be allowed in the succeeding tax year. In addition, the following federal rules apply in determining qualified wages: · Wagesqualifyingforthecreditgenerallyhavethesamemeaning as wages subject to the Federal Unemployment Tax Act (FUTA). For agricultural employees, if the work performed by an employee during more than half of any pay period qualifies under FUTA as agricultural labor, the first $6,000 of that employee's wages subject to social security and Medicare taxes are taken into account. For a special rule that applies to railroad employees, see IRC section 51(h)(1)(B). · Morethanhalfthewagesreceivedfromyoumustbeforworkingin your trade or business. · Youmaynotclaimacreditonwagesthatwerepaidtoanyemployee during any period for which you received payment for the employee from a federally funded onthejob training program. · AnyworksupplementationpaymentsyoureceivedundertheSocial Security Act reduce the amount of wages qualifying for the credit. · Theemployeecannotbeashareholderwhoowns,directlyor indirectly, more than 50% in value of the outstanding stock of the taxpayer, nor can the employee be the dependent of such a shareholder. · Theemployeecannotbeyourrehiredemployeeifheorshewasnot a targeted group member when employed earlier. · Thewagescannotbeforservicesofreplacementworkersduringa strike or lockout. In addition to the above, any other provisions of IRC, sections 51 and 52(asthesesectionsappliedonOctober1,1996),thatapplytothe federal work opportunity credit for vocational rehabilitation referrals also

Eligibility
The following taxpayers are eligible to claim this credit: · transportationandtransmissioncorporationstaxableunderArticle9 sections 183 and 184; · cooperativeagriculturalcorporationstaxableunderArticle9 section 185; · utilitycorporationstaxableunderArticle9section186; · generalbusinesscorporationstaxableunderArticle9-A; · bankingcorporationstaxableunderArticle32;and · insurancecorporationstaxableunderArticle33.

Credit amount
The New York credit amount is 35% of the first $6,000 of qualified firstyear wages or qualified secondyear wages. A credit of up to $2,100 per employee is available. If the federal work opportunity credit for vocational rehabilitation referrals under Internal Revenue Code (IRC) section 51 (see federal Form 5884) is not in effect for an employee, the New York credit is 35% of the first $6,000 of the employee's qualified first-year wages (see Schedule A, Part 1). If the federal work opportunity credit for vocational rehabilitation referrals under IRC section 51 (see federal Form 5884) is in effect for an employee, the credit is 35% of the first $6,000 of the employee's qualified second-year wages (see Schedule A, Part 2). The credit cannot reduce the tax to less than the following statutory minimum taxes: · minimumtaxof$75underArticle9section183; · minimumtaxof$10underArticle9section185; · minimumtaxof$125underArticle9section186; · fixed-dollarminimumtaxcomputedunderArticle9-A; · fixedminimumtaxof$250underArticle32;and · fixedminimumtaxof$250underArticle33. The credit is not allowed against the metropolitan transportation business tax (MTA surcharge) under Article 9, 9A, 32, or 33. The credit is not refundable. However, any amount of the credit not used in the current tax year may be carried forward for an unlimited number of years. Furthermore, unlike the IRC, the New York State Tax Law allows a deduction for the portion of the wages and salaries that qualifies for the New York State credit (that is, the taxpayer receives both a deduction and a credit for the wages).

Page 2 of 2 CT-41-I (2008)
apply to the New York credit, to the extent the federal credit provisions are consistent with the New York credit provisions. In the event of a conflict, the New York credit provisions shall control. Full-time basis means a job consisting of at least 35 hours per week, or two or more jobs that together constitute the equivalent of a job of at least 35 hours per week. If two or more jobs are combined to create one fulltime equivalent job, the credit may only be claimed for those employees who individually meet all the conditions described under qualified employee (see Definitions). For example, two employees share one fulltime job and individually meet all the conditions described under qualified employee, except that only one of those employees worked at least 180 days or 400 hours. The credit may only be claimed for the employee who has worked for the employer for at least 180 days or 400 hours.

Schedule B -- Computation of credit used and carried forward
New York S corporations: Do not complete Schedule B. Transfer the line 9 amount to Form CT34SH, New York S Corporation Shareholders' Information Schedule, and provide each shareholder with their pro rata share of the credit. Each shareholder of the New York S corporation will claim their share of the credit on Form IT251. See Form IT251 for further information. A credit that originates in a New York S year flows through to the individual shareholders of the New York S corporation under Article 22, and cannot be applied against the New York State corporation franchise tax in a New York S year. Line 10 -- Enter the amount of credit for employment of persons with disabilities carried forward from the tax year immediately preceding the current tax year. No credit or carryover of credit allowed in a New York C year may be carried forward to a New York S year, and no credit or carryover of credit allowed in a New York S year may be carried forward to a New York C year. Line 13 -- Enter your franchise tax before credits from the following forms: · FormCT-183,line4,plus Form CT184, line 3 or 4 · FormCT-185,line6 · FormCT-186,line5 · FormCT-3,line78 · FormCT-3-A,line77 · FormCT-32,line5 · FormCT-32-A,line5 · FormCT-33,line11 · FormCT-33-A,line15 · FormCT-33-NL,line5 Line 14 -- If you are claiming more than one tax credit for this year, enter the amount of credits claimed before applying this credit. You must apply certain credits before the credit for employment of persons with disabilities. Article 9A taxpayers refer to Form CT600I, Instructions for Form CT-600, Ordering of Corporation Tax Credits. All other taxpayers refer to the instructions of their franchise tax return to determine the order of credits that applies. If you are included in a combined return, include any amount of tax credit(s) being claimed by other members of the combined group, including the credit for employment of persons with disabilities, that you wish to apply before your credit for employment of persons with disabilities. Life insurance corporations: Do not enter on this line any amount of empire zone (EZ) wage tax credit, zone equivalent area (ZEA) wage tax credit, or EZ capital tax credit you may be claiming. If you are included in a combined return, do not include any amount of these credits being claimed by other members of the combined group. Line 18 -- Include this result on your franchise tax return. Under Article 9, the credit or carryover of credit is first applied against the franchise tax imposed by section 183. Any excess credit or carryover of credit is then applied against the franchise tax imposed by section 184.

Line instructions
Schedule A -- Computation of credit
Enter in Part 1 the requested information about qualified employees who began work after the expiration of the federal work opportunity credit for vocational rehabilitation referrals. Enter in Part 2 the requested information about qualified employees who began work before the expiration of the federal work opportunity credit for vocational rehabilitation referrals.

Part 1 -- Computation of credit on qualified first-year wages
Columns A and B -- Enter the name and social security number of each qualified employee. Do not include employees shown in Part 2. If you need additional space, attach a separate sheet of paper to the form listing the same information requested in columns A through D of this part. Column C -- Enter for each qualified employee the beginning date and ending date for the first year of employment. This oneyear period begins with the date the qualified employee began work for the taxpayer. If the qualified employee did not work for the taxpayer for a full year, the oneyear period begins with the date the qualified employee began work for the taxpayer and ends on the last date of employment with the taxpayer. Column D -- Enter the qualified firstyear wages (limited to $6,000) paid or incurred by the taxpayer during the tax year to the qualified employee for services rendered during the oneyear period shown in column C.

Part 2 -- Computation of credit on qualified second-year wages
Columns A and B -- Enter the name and social security number of each qualified employee. Do not include employees shown in Part 1. If you need additional space, attach a separate sheet of paper to the form listing the same information requested in columns A through D of this part. Column C -- Enter for each qualified employee the beginning date and ending date for the second year of employment. This oneyear period begins one year after the employee begins work for the taxpayer. If the qualified employee did not work for the taxpayer for a full year after the first year, the oneyear period begins with the date one year after the employee began work for the taxpayer and ends on the last date of employment with the taxpayer. Column D -- Enter the qualified secondyear wages (limited to $6,000) paid or incurred by the taxpayer during the tax year to the qualified employee for services rendered during the oneyear period shown in column C. Line 8 -- If you have a claim for credit for employment of persons with disabilities from a passthrough entity that is a partnership, enter on line 8 your pro rata share of the claim for credit for employment of persons with disabilities received from the partnership. The partnership completes Form IT251, Credit for Employment of Persons with Disabilities, and provides the corporate partner with their pro rata share of the credit for employment of persons with disabilities. If you have no credit for employment of persons with disabilities from a passthrough entity that is a partnership, enter 0 on line 8.

Need help?
Internet access: www.nystax.gov (for information, forms, and publications) Fax-on-demand forms: To order forms and publications: Corporation Tax Information Center: From areas outside the U.S. and outside Canada: Text Telephone (TTY) Hotline (for persons with hearing and speech disabilities using a TTY): 1 800 7483676 1 800 4628100 1 888 6982908 (518) 4856800

1 800 6342110