Free CT-606 - New York

Please Note: Recent legislation requires all taxpayers filing this form to attach a retention certificate issued by Empire State Development. See TSB-M-09(5)C, (4)I, Legislative Changes to the Empire Zones Program, for details. Form CT-606, Claim for QEZE Credit for Real Property Taxes, continues below.

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CT-606

New York State Department of Taxation and Finance

Claim for QEZE Credit for Real Property Taxes
Tax Law - Section 15

Note: You must file all pages (1 through 8) with your return. All taxpayers must complete the information below and then complete either Section 1 (pages 1 through 3) or Section 2 (pages 5 through 8). Do not complete both sections.
All filers must enter tax period: beginning Name of corporation Name of empire zone(s) ending Employer identification number (EIN)

File this form with your corporation franchise tax return Form CT-3, CT-3-A, CT-3-S, CT-32, CT-32-A, CT-32-S, CT-33, CT-33-NL, CT-33-A, or CT-185. Mark an X in the appropriate box when answering Yes or No questions. Are you a clean energy enterprise (CEE)? ............................................................................................................. Yes No Are you a QEZE first certified between August 1, 2002 and March 31, 2005, that conducts its operations on real property it owns or leases that is located in an empire zone (EZ) and that is subject to a BCA executed prior to January 1, 2006? .... Yes No

Section 1 -- For QEZEs first certified prior to April 1, 2005 (see Important information in the instructions)
Date of first certification by Empire State Development (mm-dd-yy; attach copies of all Certificates of Eligibility)...........

Schedule A -- Employment test for QEZEs first certified prior to April 1, 2005
Part 1 -- EZ employment -- Computation of the employment number within all EZs for the current tax year and in the five-year base
period: Include employees within all EZs even if you are not certified in all of those zones (see instructions). Current tax year employment number March 31 June 30 September 30 December 31 Number of full-time employees within all EZs 1 Current tax year employment number within all EZs (do not round; see instructions) ............................ 1. Base period employment number Tax year ending March 31 June 30 September 30 December 31
(mm-yy)

Total

Total

a b c d e f 2

Number in base year 1 Number in base year 2 Number in base year 3 Number in base year 4 Number in base year 5 Total number of full-time employees within all EZs in the base period ........................................................ Base period employment number within all EZs (do not round; see instructions) .................................. 2. 3. Yes No

3 Does the amount on line 1 equal or exceed the amount on line 2? (see instructions) .........................

Part 2 -- New York State employment outside all EZs -- Computation of the employment number inside New York State and outside all EZs (whether or not you are certified in all of those EZs) for the current tax year and in the five-year base period (see instructions) Current tax year employment number March 31 June 30 September 30 December 31 Total
Number of full-time employees inside New York State and outside all EZs 4 Current tax year employment number inside New York State and outside all EZs (do not round) ....... 4. Base period employment number Tax year ending March 31 June 30 September 30 December 31
(mm-yy)

Total

a b c d e f 5

Number in base year 1 Number in base year 2 Number in base year 3 Number in base year 4 Number in base year 5 Total number of full-time employees inside New York State and outside all EZs in the base period ........... Base period employment number inside New York State and outside all EZs (do not round) ............. 5. 6. Yes No

6 Does the amount on line 4 equal or exceed the amount on line 5? (see instructions) .........................

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Schedule B -- Computation of test year employment number within the EZs in which you are certified
Test year
to (mm-yy)

March 31

June 30

September 30 December 31

Total

Number of full-time employees within the EZs 7 Test year employment number within the EZs in which you are certified (see instructions; also enter on line 9) 7.

Schedule C -- Employment increase factor (see instructions)
8 Current tax year employment number within the EZs in which you are certified (see instructions) .............................................................................................................................. 9 Test year employment number within the EZs in which you are certified (from line 7) ........................... 10 Subtract line 9 from line 8.................................................................................................................. 11 Divide line 10 by line 9 (carry result to four decimal places; if line 9 is zero and line 8 is greater than zero, enter 1.0 here) .... 12 Divide line 10 by 100 (carry result to four decimal places) ...................................................................... 13 Employment increase factor (enter the greater of line 11 or 12, but not more than 1.0; also enter on line 15) ... 8. 9. 10. 11. 12. 13.

Schedule D -- Computation of QEZE credit for real property taxes for QEZEs first certified prior to April 1, 2005
14 15 16 17 18 19 20 21 Tax year of the business tax benefit period ; benefit period factor (from table below) ........... Employment increase factor (from line 13) ............................................................................................ Eligible real property taxes (see instructions) ...................................................................................... QEZE credit for real property taxes (multiply line 14 by line 15 by line 16) ............................................. Recapture of QEZE credit for real property taxes (from Worksheet A on page 5 of instructions) ............ QEZE credit for real property taxes after recapture (subtract line 18 from line 17; see instructions) ........ QEZE credit for real property taxes limitation (see instructions, do not enter zero) ................................ QEZE credit for real property taxes allowed (see instructions) ............................................................ Benefit period factor table*
Tax year of benefit period Benefit period factor** Tax year of benefit period Benefit period factor**

14. 15. 16. 17. 18. 19. 20. 21.

* The QEZE credit for real property taxes is generally available for up to 14 years for taxpayers that continue to qualify. 0.4 0.2 0.0 ** For an owner of a qualified investment project or a significant capital investment project, the benefit period factor will be 1.0 during the entire business tax benefit period. Find the tax year of your business tax benefit period. Enter the benefit period factor for that year (from the table on the left) on line 14.
(continued)

1 - 10 11 12

1.0 0.8 0.6

13 14 15

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Schedule E -- Application of QEZE credit for real property taxes (New York S corporations do not complete Schedule E)
22 Enter your franchise tax from Form CT-3, line 78; Form CT-3-A, line 77; Form CT-32, line 5; Form CT-32-A, line 5; Form CT-33, line 11; Form CT-33-A, line 15; Form CT-33-NL, line 5; or Form CT-185, line 6 .......... 23 Tax credits claimed before the QEZE credit for real property taxes (if applying multiple credits on your franchise tax return, see instructions) ................................................................................................... 24 Subtract line 23 from line 22................................................................................................................ 25 Enter appropriate tax: Article 9, section 185 -- Enter 10 Article 9-A -- Enter the greater of the tax on the minimum taxable income base or the fixed dollar minimum tax Article 32 or 33 -- Enter 250 Article 33 combined -- Enter the sum of lines 4 and 12 from Form CT-33-A...................................... 26 Credit limitation (subtract line 25 from line 24; if less than zero, enter 0) ................................................... 27 QEZE credit for real property taxes to be used this period (enter the lesser of line 26 or line 21; transfer this amount to your franchise tax return) ................................................................................... 28 Unused QEZE credit for real property taxes (subtract line 27 from line 21) ........................................... 29 Amount of unused credit on line 28 to be refunded........................................................................... 30 Amount of unused, nonrefunded credit to be credited as an overpayment to next year's tax (subtract line 29 from line 28; see instructions) ..................................................................................... 22. 23. 24.

25. 26. 27. 28. 29. 30.

Schedule F -- Related entities
List the names and employer identification numbers of any related business entities. Attach additional sheets if necessary. See Related persons on page 2 of the instructions to determine if an entity is related. Name EIN

Schedule G -- Valid business purpose for QEZEs first certified prior to August 1, 2002 (see instructions)
If you are claiming that the QEZE was formed for a valid business purpose, mark an X in the box and attach a notarized statement describing in detail how your QEZE meets the valid business purpose test. ....................................................................

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Claim for QEZE Credit for Real Property Taxes Section 2 -- For QEZEs first certified on or after April 1, 2005 (see Important information in the instructions)
Note: You must file all pages (1 through 8) with your return. All taxpayers must complete the information above Section 1 on page 1 and then complete either Section 1 (pages 1 through 3) or Section 2 (pages 5 through 8). Do not complete both sections.
All filers must enter tax period: beginning Name of corporation ending Employer identification number (EIN)

Name of empire zone(s): Indicate whether each zone is a development zone (DZ) or investment zone (IZ) (attach additional sheets if necessary).

File this form with your corporation franchise tax return Form CT-3, CT-3-A, CT-3-S, CT-32, CT-32-A, CT-32-S, CT-33, CT-33-NL, CT-33-A, or CT-185.

Date of first certification by Empire State Development (mm-dd-yy; attach copies of all Certificates of Eligibility) ......... Year of the business tax benefit period (enter a year between 1 and 10) ......................................................................................

Schedule H -- Employment test for QEZEs first certified on or after April 1, 2005
Part 1 -- EZ employment -- Computation of the employment number within all EZs for the current tax year and in the four-year base
period: Include employees within all EZs even if you are not certified in all of those zones (see instructions). Current tax year employment number March 31 June 30 September 30 December 31 Number of full-time employees within all EZs 31 Current tax year employment number within all EZs (do not round; see instructions) ............................ 31. Base period employment number Tax year ending March 31 June 30 September 30 December 31
(mm-yy)

Total

Total

a b c d e 32

Number in base year 1 Number in base year 2 Number in base year 3 Number in base year 4 Total number of full-time employees within all EZs in the base period ........................................................ Base period employment number within all EZs (do not round; see instructions) .................................. 32. Yes No

33 Does the amount on line 31 exceed the amount on line 32? (see instructions) .................................... 33.

Part 2 -- New York State employment -- Computation of the employment number inside New York State for the current tax year
and in the four-year base period (see instructions) Current tax year employment number March 31 June 30 September 30 December 31 Number of full-time employees in New York State 34 Current tax year employment number in New York State (do not round) ............................................. 34. Base period employment number Tax year ending March 31 June 30 September 30 December 31
(mm-yy)

Total

Total

a b c d e 35

Number in base year 1 Number in base year 2 Number in base year 3 Number in base year 4 Total number of full-time employees in New York State in the base period ................................................. Base period employment number in New York State (do not round) ................................................... 35. Yes No

36 Does the amount on line 34 exceed the amount on line 35? (see instructions) .................................... 36.

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Schedule I -- Computation of net new employment (see instructions)
37 Current year employment number in the EZs in which you are certified ........................................... 38 Base period employment number in the EZs in which you are certified............................................ 39 Net new employment number (subtract line 38 from 37) ....................................................................... 37. 38. 39.

Schedule J -- Development zone (DZ) employment increase factor (Complete Schedule J if you are certified in one or more zones and any of these zones is a DZ, and you are not a manufacturer.)
Net new employees (from line 39) 1 to 10 ................................................................... 11 to 49 ................................................................. 50 to 75 ................................................................. 76 and above ........................................................ DZ employment increase factor 0.25 0.50 0.75 New employees (from line 39) divided by 100. This number cannot exceed 1.0 40.

40 DZ employment increase factor from table above .............................................................................

Schedule K -- Employee information (see instructions)
Enter name, social security number, employee's zone location and wage and benefit information for all new employees included in the net new employment number on line 39 upon which this claim is based. Attach additional sheets if necessary.
A Employee's name B Employee's social security number C Employee's zone location
(see instructions)

D Total wages, health benefits, and retirement benefits

E Eligible wages, health benefits, and retirement benefits included in column D (enter no more than $40,000 per employee)

Total from column E of any additional sheet(s) ............................................................................................... 41 Total eligible wages, health benefits, and retirement benefits (add column E amounts) ....................... 41.

(continued)

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Schedule L -- Computation of credit for QEZEs certified in development zones (DZs) (see instructions)
42 43 44 45 Eligible wages, health benefits, and retirement benefits from line 41.................................................. 25% (.25) factor ................................................................................................................................... DZ employment increase factor from line 40 ....................................................................................... QEZE credit for real property taxes for QEZEs certified in DZs (multiply line 42 by line 43 by line 44) ......... 42. 43. 44. 45. .25

Schedule M -- Computation of QEZE credit for real property taxes for manufacturers and QEZEs certified only in an investment zone (IZ) (see instructions)
46 Eligible wages, health benefits, and retirement benefits from line 41.................................................. 46. 47 25% (.25) factor ................................................................................................................................... 47. 48 QEZE credit for real property taxes (multiply line 46 by line 47) ............................................................ 48. .25

Schedule N -- QEZE credit for real property taxes (see instructions)
49 50 51 52 53 54 55 QEZE credit from line 45 or line 48 ................................................................................................... Capital investment amount (from line 65 or 66) ..................................................................................... Enter the greater of line 49 or line 50 ................................................................................................ Eligible real property taxes (attach documentation) .............................................................................. Enter the lesser of line 51 or line 52 .................................................................................................. Recapture of QEZE credit for real property taxes (see instructions) ................................................... QEZE credit for real property taxes after recapture (subtract line 54 from line 53; see instructions) ......... 49. 50. 51. 52. 53. 54. 55.

Schedule O -- Application of QEZE credit for real property taxes (New York S corporations do not complete Schedule O)
56 Enter your franchise tax from Form CT-3, line 78; Form CT-3-A, line 77; Form CT-32, line 5; Form CT-32-A, line 5; Form CT-33, line 11; Form CT-33-A, line 15; Form CT-33-NL, line 5; or Form CT-185, line 6 .......... 57 Tax credits claimed before the QEZE credit for real property taxes (if applying multiple credits on your franchise tax return, see instructions) .................................................................................................. 58 Subtract line 57 from line 56................................................................................................................ 59 Enter appropriate tax: Article 9 section 185 -- Enter 10 Article 9-A -- Enter the greater of the tax on the minimum taxable income base or the fixed dollar minimum tax Article 32 or 33 -- Enter 250 Article 33 combined -- Enter the sum of lines 4 and 12 from Form CT-33-A ..................................... 60 Credit limitation (subtract line 59 from line 58; if less than zero, enter 0) ................................................... 61 QEZE credit for real property taxes to be used this period (enter the lesser of line 60 or line 55; transfer this amount to your franchise tax return) ................................................................................... 62 Unused QEZE credit for real property taxes (subtract line 61 from line 55) ........................................... 63 Amount of unused credit on line 62 to be refunded (transfer this amount to your franchise tax return) .... 64 Amount of unused, nonrefunded credit to be credited as an overpayment to next year's tax (subtract line 63 from line 62; transfer this amount to your franchise tax return) ......................................... 56. 57. 58.

59. 60. 61. 62. 63. 64.

(continued)

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Schedule P -- Related entities
List the names and employer identification numbers (EIN) of any related business entities. Attach additional sheets if necessary. See Related persons on page 2 of the instructions to determine if an entity is related. Name EIN

Schedule Q -- Capital investment amount (complete only Part 1 or Part 2)
Part 1 -- Capital investment amount for QEZEs certified in DZs (see instructions)
A Address of property B Name of zone
(if applicable)

C Cost or other basis attributable to construction, expansion, or rehabilitation of property

D Multiply column C by 10% (0.1)

E Percentage of physical occupancy and use
(see instructions)

F Multiply column D by column E

Total from column F of any additional schedules ........................................................................................................... 65 Total (add column F amounts; enter here and on line 50) ........................................................................................ 65.

Part 2 -- Capital investment amount for QEZEs certified only in IZs or for manufacturers (see instructions)
A Address of property B Name of zone
(if applicable)

C Cost or other basis

D Multiply column C by 10% (0.1)

E Percentage of physical occupancy and use

F G Percentage Multiply column D of column C by the greater of attributable to column E or column F construction, rehabilitation, or expansion of the building (if 50% or more enter 100%)

Total from column G of any additional schedules ........................................................................................................... 66 Total (add column G amounts; enter here and on line 50) ....................................................................................... 66.

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