New York State Department of Taxation and Finance
Instructions for Form CT-259
Claim for Fuel Cell Electric Generating Equipment Credit
Tax Law Article 9, Section 183, 184, 185; Articles 9-A, 32, and 33
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.
for an unlimited number of tax years. The credit may not be appliedagainstthemetropolitantransportationbusinesstax(MTA surcharge)underArticle9,9-A,32,or33.
Fuel cell electric generating equipmentmeansanon-siteelectricity generation system that utilizes proton exchange membrane fuel cells, providing a rated baseload capacity of at least one kilowatt (1,000 watts) but no more than 100 kilowatts (100,000 watts) of electricity operated in accordance with applicable industry standards. Qualified fuel cell electric generating equipment expenditures means qualified expenditures incurred on or after July 1, 2005, associated with the purchase of fuel cell electric generating equipment, which is installed and used in New York State. Qualified expenditures include expenditures incurred on or after July 1, 2005, for materials, labor costs properly allocated to on-sitepreparation,assemblyandoriginalinstallation,engineering services, designs and plans directly related to the construction or installation, and utility compliance costs of the fuel cell electric generating equipment. Qualified fuel cell electric generating equipment expenditures do not include the following: ·Interestorfinancecharges · Anyamountoffederal,state,orlocalgrantreceivedbythe taxpayer that was used for the purchase and/or installation of the equipment if the grant was not included in the federal gross income of the taxpayer
The Tax Law allows a credit for the purchase and installation of eligible fuel cell electric generating equipment in New York State for tax years beginning on or after January 1, 2005. The credit applies to qualified fuel cell electric generating expenditures incurred on or after July 1, 2005, and may be claimed for the tax year in which the fuel cell electric generating equipment is placed in service. To qualify for the credit, the rated capacity of the system must be at least one kilowatt (1,000 watts) but not more than one hundred kilowatts (100,000 watts) of electricity.
The following taxpayers are eligible to claim the credit: · Transportationandtransmissioncorporationsand cooperative agricultural corporations subject to tax under Article 9, sections 183, 184, and 185 that are not substantially engaged in the commercial generation, distribution, transmission, or servicing of energy or energy products · GeneralbusinesscorporationssubjecttotaxunderArticle9-A · BankingcorporationssubjecttotaxunderArticle32 · InsurancecorporationssubjecttotaxunderArticle33
Eligible transportation and transmission corporations and cooperative agricultural corporations taxable under Article 9, section 183, 184, or 185; general business corporations (other thanNewYorkScorporations)taxableunderArticle9-A;banking corporations taxable under Article 32; and insurance corporations taxable under Article 33 complete Part 1 and Part 2. New York S corporations:CompleteFormCT-259,Part1only, andincludetheline3amountonFormCT-34-SH,New York S Corporation Shareholders' Information Schedule.
The amount of the credit allowed for each fuel cell electric generating unit during the tax year is equal to the lesser of · thecostofthequalifiedfuelcellelectricgenerating equipment expenditures, or · $1,500. There is no limit on the number of fuel cell electric generating units purchased during the tax year. However, the credit cannot exceed$1,500foreachunitpurchased. The credit cannot reduce the tax to less than the following minimum taxes: · ThefixedminimumtaxunderArticle9,sections183and185 · Thelargerofthetaxonminimumtaxableincome(MTI)baseor fixeddollarminimumtaxascomputedunderArticle9-A · Thefixedminimumtaxof$250computedunderArticle32 · Thefixedminimumtaxof$250underArticle33 Under Article 9, the credit must first be deducted from the taxes imposed by section 183. Any credit remaining may then be deducted from the taxes imposed by section 184. The credit allowed is not refundable. However, any amount of credit not claimed in the current tax year may be carried forward
Part 1 -- Computation of credit
Column A -- Enter the physical address where the fuel cell is located(numberandstreet,city,ZIPcode). Column B -- Enter the date the fuel cell listed in column A was placed in service. Column C -- Enter the qualified fuel cell electric generating equipment expenditures for each fuel cell purchased. Do not include the following: ·Interestorfinancecharges · Anyamountoffederal,state,orlocalgrantreceivedbythe taxpayer that was used for the purchase and/or installation of the equipment if the grant was not included in the federal gross income of the taxpayer · AnyexpendituremadepriortoJuly1,2005
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CT-259-I (2008) wish to apply before your fuel cell electric generating equipment credit. Life insurance corporations: Do not enter on this line any amount of empire zone (EZ) wage tax credit, zone equivalent area (ZEA) wagetaxcredit,orEZcapitaltaxcredityoumaybeclaiming.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 7 -- Enter your minimum tax using the Lines 4 and 7 entries table.
Column E -- For each fuel cell listed in column A, enter the column C amount or 1,500, whichever is less. The credit amount cannotexceed$1,500foreachunitpurchased. Ifadditionalspaceisnecessary,attachadditionalsheetsfollowing the same format as columns A through E. Enter the total of column E from all sheets on the line above line 1. Line 1 -- Use line 1 if you own the fuel cell electric generating equipment and you are claiming credit for the purchase. Do not include on line 1 a credit for purchase of the fuel cell electric generatingequipmentreceivedfromapass-throughentity;reportit on line 2a. Line 2a --Ifyouhaveacreditforthepurchaseoffuelcellelectric generatingequipmentfromapass-throughentitythatisa partnership, enter on line 2a the pro rata share of the credit of the fuel cell electric generating equipment received from the partnership. This information should be provided to you by the partnership.ThepartnershipcompletesFormIT-259,Claim for Fuel Cell Electric Generating Equipment Credit, and provides each partner with their pro rata share of the credit for the purchase of fuel cell electric generating equipment. Enter in the Partnership information area of this form the name, identifying number, and credit amount for each partnership that passed the credit through to you. Ifyouhavepass-throughcreditsfrommorethanonepartnership, add them together and enter the total on line 2a. Ifyoudonothavecreditforthepurchaseoffuelcellelectric generatingequipmentfromapass-throughentitythatisa partnership, enter 0 on line 2a. Line 2b -- New York C corporations enter the amount of credit carried forward from the tax year immediately preceding the current tax year. New York S corporations enter 0. 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 3 -- New York S Corporations: Transfer the line 3 amount to FormCT-34-SH,andprovideeachshareholderwithhisorherpro rata share of the credit. Do not complete Part 2. Each shareholder of the New York S corporation will claim his or her share of the creditonFormIT-259,ScheduleC.Forfurtherinformation,see FormIT-259-I,Instructions for Form IT-259. A credit that originates in a New York S corporation year flows through to the individual shareholders of the New York S corporation under Article 22, and the credit cannot be applied against the New York State corporation franchise tax.
Lines 4 and 7 entries table
Ifyoufiled FormsCT-183andCT-184 Enter on line 4 the amount from Line 4 of FormCT-183 plus the amount from line 3 or 4 of FormCT-184 Line6 Line 78 Line 77 Line 5 Line 5 Line 11 Line 15 Line 5 Enter on line 7 the minimum tax below 75
FormCT-185 FormCT-3 FormCT-3-A FormCT-32 FormCT-32-A FormCT-33 FormCT-33-A FormCT-33-NL
10 Line 81 amount Line 80 amount 250 250 250 The result of adding line 4 and line 12 250
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 5:00P.M.(easterntime),MondaythroughFriday. 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 hearingandspeechdisabilitiesusingaTTY):Ifyou haveaccesstoaTTY,contactusat1800634-2110. IfyoudonotownaTTY,checkwithindependent living centers or community action programs to find out where machines are available for public use. Persons with disabilities: Incompliancewiththe Americans with Disabilities Act, we will ensure that our lobbies, offices, meeting rooms, and other facilities areaccessibletopersonswithdisabilities.Ifyouhave questions about special accommodations for persons withdisabilities,pleasecall1800972-1233.
Part 2 -- Computation of credit used and carried forward
Line 4 -- Enter your tax before credits using the Lines 4 and 7 entries table. Line 5 --Ifyouareclaimingmorethanonetaxcreditforthisyear, enter the amount of credits claimed before applying this tax credit. Refer to the instructions of your franchise tax return to determine the order of credits. Otherwise, enter 0. Article 9-A taxpayers:RefertoFormCT-600-I,Instructions for Form CT-600, Ordering of Corporation Tax Credits. Ifyouareincludedinacombinedreturn,includeanyamountoftax credit(s) being claimed by other members of the combined group, including the fuel cell electric generating equipment credit, that you