Free CT-243-I (Instructions) - New York

New York State Department of Taxation and Finance

Instructions for Form CT-243
Claim for Biofuel Production Credit
Definitions
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.

CT-243-I

Biofuel means a fuel which includes biodiesel and ethanol. Biofuel may also include any other fuel which meets the standard approved by the New York State Energy and Research Development Authority. Biodiesel means a fuel comprised exclusively of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats, designated B100, which meets the specifications of American Society of Testing and Materials designation D 6751-02. Ethanol means ethyl alcohol manufactured in the United States and its territories and sold · forfueluseandwhichhasbeenrenderedunfitforbeverageuse in a manner and which is produced at a facility approved by the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives for the production of ethanol for fuel, or · asdenaturedethanolusedbyblendersandrefinerswhichhas been rendered unfit for beverage use. Biofuel plant means a commercial facility located in New York State at which one or more biofuels are produced.

General information
For tax years beginning on or after January 1, 2006, and before January 1, 2013, a credit is allowed for biofuel produced on or after January 1, 2006 at a biofuel plant located in New York State. The first 40,000 gallons of biofuel per year presented to market by each biofuel plant are not eligible for the credit. The biofuel production credit is available to taxpayers subject to tax under Article 9 (corporation tax), Article 9-A (franchise tax on business corporations), and Article 22 (personal income tax). Those subject to tax under Article 9 or Article 9-A should complete Form CT-243. Form IT-243, Claim for Biofuel Production Credit, is for taxpayers subject to tax under Article 22.

Corporate partners
If you are a corporate partner whose only biofuel production credit is from a partnership, enter on line 2 your pro rata share of the biofuel production credit passed through to you from the partnership. Also enter the name, employer identification number (EIN), and the share of the credit for each partnership in Part 3.

Line instructions
New York S corporations: Complete only Part 1. Include the line 3 amount on Form CT-34-SH, New York S Corporation Shareholders' Information Schedule, which is filed with your New York State corporation franchise tax return. Attach a copy of Form CT-243 to your Form CT-3-S, New York S Corporation Franchise Tax Return. Provide all shareholders with the amount of their pro rata share of the biofuel production credit calculated. The shareholders will file their own Form IT-243 to claim the credit on their New York State personal income tax returns.

New York S corporations
New York S corporations that own a biofuel plant will calculate an amount of biofuel production credit. However, the S corporation may not use the biofuel production credit against its own tax liability; instead, the credit is passed through to the shareholders to use against their personal income tax liabilities on their New York State tax returns.

Part 1 -- Computation of biofuel production credit
Use a separate line for each biofuel plant. If you are claiming a credit for more than three biofuel plants, use additional sheets to report the information in the format used on the form. Include the name and employer identification number (EIN) on each sheet. Column A -- For each biofuel plant, enter the street number and name, and the city in New York State where the plant is physically located. Do not enter a PO box, or the mailing address of the company if it differs from the physical location of the plant. Column B -- The biofuel production credit can be claimed for four consecutive tax years for each biofuel plant. For each plant, mark an X in the appropriate box to indicate the tax year for which the biofuel production credit is being claimed. Column C -- Enter the total number of gallons of biofuel produced at each biofuel plant located in New York State for the tax year in which the biofuel was presented to market. Column D -- Subtract 40,000 from the amount in column C to compute the gallons of biofuel eligible for the biofuel production credit. The first 40,000 gallons of biofuel per year presented to market by each biofuel plant are not eligible for the credit. Column E -- Multiply the amount in column D by .15 (15 cents). Line 2 -- If you are a corporate partner receiving a biofuel production credit from a partnership, complete Part 3 and enter the amount from line 15.

Combined filers
A taxpayer filing a combined return as a member of a combined group is allowed to claim the biofuel production credit. The biofuel production credit is computed on a separate basis, but is applied against the combined tax.

Amount of credit
The credit amount is equal to fifteen cents per gallon of biofuel produced at a biofuel plant located in New York State, after the production of the first 40,000 gallons per year presented to market. The biofuel must be produced on or after January 1, 2006, to qualify for the credit. The credit is limited to $2.5 million per taxpayer per tax year, and can be claimed for four consecutive tax years per biofuel plant. If the amount of credit allowed for any tax year exceeds the tax for that year, the excess is treated as an overpayment of tax to be refunded or credited to next year's tax. Interest will not be paid on the refund or overpayment. The credit may not reduce the tax to less than the following: · TheapplicableminimumtaxfixedbyArticle9,section183or185 · Thehigherofthetaxonminimumtaxableincomebaseorfixed dollar minimum under Article 9-A. Under Article 9, the credit must first be deducted from the taxes imposedbysection183.Anycreditremainingmustthenbe deductedfromthetaxesimposedbysection184. The credit is not allowed against the metropolitan transportation business tax (MTA surcharge) under Article 9 or 9-A.

Page 2 of 2 CT-243-I(2008)

Part 2 -- Computation of credit used
Lines 6 and 9 entries table
Section 1 Franchise tax return filed FormsCT-183and CT-184 FormCT-185 FormCT-186 Form CT-3 Form CT-3-A Section 2 Tax return filed FormCT-186-E FormCT-186-EZ FormCT-186-P Enter on line 6 the amount from FormCT-183,line4plus FormCT-184,line3or4 Line 6 Line 5 Line78 Line 77 Enter on line 6 the amount from Lines39and88 Line 24 Line 4 Enter on line 9 the amount below 75 10 0 Line81amount Line80amount Enter on line 9 the amount below 0 0 0

Part 3 -- Partnership information
Only complete Part 3 if you were a partner in a partnership and received a pro rata share of the biofuel production credit from that entity. Enter the name, EIN, and credit amount passed through to you from each partnership.

Need help?
Internet access: www.nystax.gov (for information, forms, and publications) Fax-on-demand forms: Forms are available 24 hours a day, 7daysaweek. 1800748-3676 Telephone assistanceisavailablefrom8:00A.M.to 5:00 P.M. (eastern time), Monday through Friday. Toorderformsandpublications: 1800462-8100 Corporation TaxInformationCenter: 1888698-2908 From areas outside the U.S. and outsideCanada: (518)485-6800 Text Telephone (TTY) Hotline (for persons with hearing and speech disabilities using a TTY): If you haveaccesstoaTTY,contactusat1800634-2110. If you do not own a TTY, check with independent living centers or community action programs to find out where machines are available for public use. Persons with disabilities: In compliance with the Americans with Disabilities Act, we will ensure that our lobbies, offices, meeting rooms, and other facilities are accessible to persons with disabilities. If you have questions about special accommodations for persons withdisabilities,pleasecall1800972-1233.

Line 6 -- Enter your tax before credits using the Lines 6 and 9 entries table. The biofuel production credit can be applied to the taxes as computed on the forms listed in Lines 6 and 9 entries table. However, the credit cannot be applied against both a franchise tax return listed in Section 1 and a tax return listed in Section 2. Line 7 -- If you are claiming more than one tax credit for this year, enter the amount of credits claimed before applying this credit. Otherwise, enter 0. You must apply certain credits before the biofuel production credit. Refer to the instructions for your franchise tax return to determine the order of credits that applies. Article 9-A filers: Refer to Form CT-600-I, Instructions for Form CT-600, Ordering of Corporation Tax Credits, for the order of credits. 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 biofuel production credit, that you wish to apply before your biofuel production credit. Line 9 -- Enter the amount using the Lines 6 and 9 entries table.