Free CT-611-I (Instructions) - New York


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New York State Department of Taxation and Finance

Instructions for Form CT-611

CT-611-I

Claim for Brownfield Redevelopment Tax Credit

For Qualified Sites Accepted into the Brownfield Cleanup Program Prior to June 23, 2008
the Brownfield Site Cleanup Agreement executed by the taxpayer and the DEC or on or after the COC was transferred to the taxpayer. You must reduce the costs used to compute any of the credit components by any amount of federal, state, or municipal grants you received and used for payment of qualified costs, unless you included those grants in your federal taxable income or federal adjusted gross income. The brownfield redevelopment tax credit is calculated by applying a percentage of the costs that qualify with respect to each credit component. The amount of the credit increases if at least 50% of the qualified site is located in an environmental zone (EN-Zone), as designated by the Commissioner of Economic Development, or if the site is remediated to the highest environmental standard track (track 1, see ECL section 27-1415). The amount of credit allowed cannot reduce the tax due to less than the minimum tax due under Article 9 (sections 183 and 185), 32, or 33 or the greater of the tax on the minimum taxable income base or the fixed dollar minimum under Article 9-A. Under Article 9, the credit must first be deducted from the tax imposed by section 183. Any credit remaining may then be deducted from the tax imposed by section 184. The credit is not allowed against the metropolitan transportation business tax (MTA surcharge) under Article 9, 9-A, 32, or 33. Any unused amount of credit in the current tax year will be treated as a refund or an overpayment of tax to be credited to next year's tax. Interest will not be paid on the refund or overpayment. A relocated vendor track may not receive more than $25 million in brownfield tax credits (including the brownfield redevelopment tax credit, remediated brownfield credit for real property taxes, and environmental remediation insurance credit) and other benefits of the brownfield program. If the COC is revoked, you must recapture the amount of credit previously allowed in the tax year in which the determination is final. Also, if qualified tangible property ceases to be in qualified use prior to the end of its useful life, compute a recapture of the tangible property credit component on Schedule E, Recapture of credit taken in previous tax years.

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 whenyoufile.Returnsthataremissingrequiredpagesorthat have pages with missing entries are considered incomplete and cannot be processed, and may subject taxpayers to penalty and interest.

Changes for 2008
Beginning in tax year 2008, only taxpayers claiming the brownfield redevelopment tax credit with respect to a qualified site for which a notice of acceptance into the Brownfield Cleanup Program was issued by the Department of Environmental Conservation (DEC) prior to June 23, 2008, can use Form CT-611, Claim for Brownfield Redevelopment Tax Credit, for Qualified Sites Accepted into the Brownfield Cleanup Program Prior to June 23, 2008. Taxpayers claiming the credit with respect to a qualified site for which a notice of acceptance into the Brownfield Cleanup Program was issued by the DEC on or after June 23, 2008, must use new Form CT-611.1, Claim for Brownfield Redevelopment Tax Credit, for Qualified Sites Accepted into the Brownfield Cleanup Program on or after June 23, 2008. Schedule A has been redesigned to include brownfield site identifying information. All taxpayers must complete Schedule A using information on the Certificate of Completion (COC) issued by the DEC. For tax years beginning on or after April 1, 2005, taxpayers who are transferred a COC pursuant to a transfer or sale of a qualified site cannot include any costs of acquiring an interest in the site and any amounts included in the cost or other basis for federal income tax purposes of qualified tangible property already claimed by the previous taxpayer when computing the tangible property credit component.

General information
For tax years beginning on or after April 1, 2005, the brownfield redevelopment tax credit is available to taxpayers subject to tax under Tax Law Articles 9 (sections 183, 184, and 185), 9-A, 22, 32, and 33. Eligibility -- To qualify for the credit, you must execute a Brownfield Cleanup Agreement (BCA) under the Environmental Conservation Law (ECL) and have a Certificate of Completion (COC) issued by the Commissioner of Environmental Conservation. A person may also qualify if the person has received the COC pursuant to the transfer or sale of a qualified site. (See ECL section 27-1419 for a detailed description of the COC.) For more information about the Brownfield Cleanup Program (BCP), see ECL, Article 27, Title 14, or visit the Department of Environmental Conservation (DEC) Web site at www.dec.ny.gov. The brownfield redevelopment tax credit consists of the sum of three credit components, computed each tax year, for costs incurred in the remediation or redevelopment of a qualified site: · thesitepreparationcreditcomponent, ·thetangiblepropertycreditcomponent,and ·theon-sitegroundwaterremediationcreditcomponent. See the instructions for Schedules B, C, and D for more information on these components. The costs eligible for any of these components are those costs paid or incurred by the taxpayer either on or after the effective date of

Definitions
A qualified site means a site for which the taxpayer has been issued a COC by the Commissioner of Environmental Conservation. Site preparation costs are all costs properly chargeable to a capital account that are paid or incurred to: · prepareasitetoqualifyforaCOC;or · prepareasitefortheerectionofabuildingoracomponentof abuilding;or · establishasiteasusableforitsindustrial,commercial(including the commercial development of residential housing), recreational, or conservation purposes. Qualified tangible property is property that meets all of the conditions under either A or B below. A. The property · isdepreciableunderInternalRevenueCode(IRC) section167; · hasausefullifeoffouryearsormore; · isacquiredbypurchaseunderIRCsection179(d); · islocatedonaqualifiedsiteinthisstate;and

Page 2 of 4 CT-611-I (2008) · isprincipallyusedbythetaxpayerforindustrial,commercial, recreational, or environmental conservation purposes (including the commercial development of residential housing). The site preparation credit component includes the site preparation costs, properly charged to a capital account, paid or incurred by the taxpayer with respect to the qualified site. Site preparation costs include, but are not limited to, the costs of the following: · excavation · temporaryelectricwiring · scaffolding · demolition · fencingandsecurityfacilities Site preparation costs do not include the cost of acquiring the site or the amounts included in the cost or other basis for federal income tax purposes for qualified tangible property and costs that are included in the groundwater remediation credit component. Site preparation costs paid or incurred by the taxpayer with respect to a qualified site only include costs paid or incurred on or after the execution date of the BCA. Costs paid or incurred on or after the execution date of the BCA and up to the date in which the COC is issued are allowed in the tax year in which the COC is issued. However, if the date the COC was issued occurred in a tax year that began prior to April 1, 2005, the date of issuance of the COC is treated as if the date occurred in the first tax year beginning on or after April 1, 2005. Columns A, B, and C -- Describe site preparation costs paid or incurred during the tax year. List costs separately and in detail. Attach additional sheets if necessary. If the tax year is the tax year in which the effective date of the COC occurs (or is treated as having occurred), enter all costs paid or incurred to prepare the site to qualify for the COC. Corporate partners: Include your allocable share of the costs passed through from the partnership. Also, enter in the Partnership information area on Form CT-611 the name, the identifying number, and your allocable share of the costs for each partnership that passed the credit component through to you.
Articles 9, 9-A, 32, and 33 filers Articles 9, 9-A, 32, and 33 filers: for sites at least 50% located in an EN-Zone Articles 9, 9-A, 32, and 33 filers: for sites remediated to track 1 Articles 9, 9-A, 32, and 33 filers: for sites at least 50% located in an EN-Zone remediated to track 1 New York S corporations New York S corporations: for sites at least 50% located in an EN-Zone New York S corporations: for sites remediated to track 1 New York S corporations: for sites at least 50% located in an EN-Zone remediated to track 1

B. Or, the property · is,orwhenoccupiedbecomes,partofadwellingwhose primaryownershipstructureiscoveredunderReal PropertyLawArticle9-B,ormeetstherequirementofIRC section216(b)(1); · isacquiredbypurchaseunderIRCsection179(d);and · islocatedonaqualifiedsiteinthisstate. For purposes of this credit, property qualifying under B is deemed to be qualified tangible property and is deemed to have been placed in service when a certificate of occupancy is issued for the property. Note: Property used to qualify for this credit may not be used as qualifying property for the investment tax credit (ITC) or the empire zone investment tax credit (EZ-ITC). Principally used means more than 50%. Life or useful life (of property) means the depreciable life provided byInternalRevenueCode(IRC)section167or168. Cost or other basis means the basis of the property as determined for federal income tax purposes. On-site groundwater remediation costs include all amounts properly chargeable to a capital account that are paid or incurred in connection with a site's qualification for a COC, the remediation of on-site groundwater contamination, and the implementation of a requirement of the remedial work plan for a qualified site imposed under ECL. An environmental zone (EN-Zone) is an area designated by the Commissioner of Economic Development. An EN-Zone is a census tract and block-numbering area that, as of the year 2000 census, has a poverty rate of at least 20% and an unemployment rate of at least 1.25 times the statewide rate, or that has a poverty rate at least two times the poverty rate for the county in which the area is located. However, if you qualify because the site has a poverty rate that is at least twice the poverty rate for the county, the qualified site must be the subject of a BCA executed prior to September 1, 2010. To find out if a site is located in an EN-Zone, visit the Empire State Development Web site at www.nylovesbiz.com or call 1 800 782-8369.

Percentage table (for lines 2, 5, and 8)

12% 20% 14% 22% 10% 18% 12% 20%

Line instructions
Schedule A -- Brownfield site identifying information
All taxpayers must attach a copy of the COC. Complete the brownfield site identifying information relating to the qualified site from the COC issued by the DEC. Partners, shareholders, and beneficiaries should obtain this information, as well as a copy of the COC, from their partnership, New York S corporation, estate or trust. Failure to provide accurate identifying information may delay processing or result in denial of your claim.

Line 2 -- Enter your applicable percentage from the Percentage table (for lines 2, 5, and 8). Line 3 -- New York S corporations: Transfer this amount to Form CT-34-SH, New York S Corporation Shareholders' Information Schedule, and provide your shareholders with their pro-rata share of line 3. The shareholder will enter that amount on Form IT-611, Claim for Brownfield Redevelopment Tax Credit.

Schedule B -- Site preparation credit component
The site preparation credit component for site preparation costs which were paid or incurred to prepare a site to qualify for the COC is allowed for the tax year in which the effective date of the COC occurs. The site preparation credit component for all other qualifying site preparation costs is allowed for the tax year in which the improvement to which the costs apply is placed in service. The site preparation credit component is allowed for up to five tax years after the COC has been issued.

Schedule C -- Tangible property credit component
The tangible property credit component is allowed for the tax year in which the property is placed in service on a qualified site. However, if the property was placed in service on a qualified site in a tax year that began prior to April 1, 2005, the property will be treated as if it were placed in service in the first tax year beginning on or after

Page 3 of 4 CT-611-I (2008) April 1, 2005. The tangible property credit component is allowed for up to 10 years after the COC is issued. The tangible property credit component includes the cost (or other basis of the property as computed for federal income tax purposes) of qualified tangible property. However, with respect to qualified tangible property as described under paragraph B (see definition of qualified tangible property in Definitions), the qualified tangible property credit component only includes costs incurred on or after July 26, 2006. If the COC was transferred to you from another taxpayer pursuant to the sale or transfer of all or any portion of the qualified site, the tangible property credit component does not include the costs of acquiring an interest in the site and any amounts included in the cost (or other basis for federal income tax purposes) of qualified tangible property already claimed by the previous taxpayer. Qualified tangible property costs paid or incurred by the taxpayer with respect to a qualified site only includes costs paid or incurred on or after the execution date of the BCA. Costs may include those incurred for leased property if the lessee was not the party legally responsible for the disposal of hazardous waste or the discharge of petroleum at the qualified site or if the lessee is legally responsible, but only because the lessee operated the site after the disposal of the hazardous waste or the discharge of petroleum. To qualify, the lessor must request and receive certification for the lessee from the Commissioner of Environmental Conservation. If the property ceases to be in qualified use, you may have to recapture the credit (see Schedule E, Recapture of credit taken in previous tax years). Column A -- Describe qualified property placed in service during the tax year. List individual items of machinery and equipment separately and in detail. Attach additional sheets if necessary. Corporate partners include your allocable share of the qualified property. Enter in the Partnership information area on Form CT-611 the name, the identifying number, and your allocable share of the costs for each partnership that passed the credit component through to you. Column D -- Enter the useful life of each item claimed. See the definition of life or useful life in Definitions. Do not use the recovery period for depreciation under the accelerated cost recovery system(ACRS)orthemodifiedacceleratedcostrecoverysystem (MACRS). Line 5 -- Enter your applicable percentage rate from the Percentage table (for lines 2, 5, and 8). Line 6 -- New York S corporations: Transfer this amount to Form CT-34-SH and provide your shareholders with their pro-rata share of line 6. The shareholder will enter that amount on Form IT-611. On-site groundwater remediation costs paid or incurred by the taxpayer with respect to a qualified site only include costs paid or incurred on or after the execution date of the BCA. Costs incurred and paid on or after the execution date of the BCA and up to the date on which the COC is issued are allowed in the tax year the COC is issued. However, if the date the COC was issued occurred in a tax year that began prior to April 1, 2005, the date of issuance of the COC is treated as if the date occurred in the first tax year beginning on or after April 1, 2005. Costs do not include those amounts that were included in the site preparation component or the tangible property component. Columns A, B, and C -- Describe on-site groundwater remediation costs paid or incurred during the tax year. List costs separately and in detail. Attach additional sheets if necessary. If this is the tax year in which the effective date of the COC occurs (or is treated as having occurred), enter all on-site groundwater costs incurred and paid to prepare the site to qualify for the COC. Corporate partners: Include your allocable share of the costs. Enter in the Partnership information area on Form CT-611 the name, the identifying number, and your allocable share of the costs for each partnership that passed the credit component through to you. Line 8 -- Enter your applicable percentage rate from the Percentage table (for lines 2, 5, and 8). Line 9 -- New York S corporations: Transfer this amount to Form CT-34-SH and provide your shareholders with their pro-rata share of line 9. The shareholder will enter that amount on Form IT-611.

Schedule E -- Recapture of credit taken in previous tax years
Recapture of tangible property credit component for property that ceases to be in qualified use If the tangible property that was used as the basis of this credit ceases to be in qualified use prior to the end of its useful life, you must add back the difference between the original credit allowed and the credit allowed for actual use to the tax otherwise due in the year the tangible property ceases to be in qualified use. Tax Law section 21 provides different formulas for computing the amountofrecapturedcreditforpropertydepreciatedunderIRC sections 167 and 168. · ForpropertydepreciatedsolelyunderIRCsection167,the formula is: months of useful life minus months of qualified use months of useful life

x tangible property credit component previously allowed

Schedule D -- On-site groundwater remediation credit component
For the tax year in which the effective date of the COC occurs, the on-site groundwater credit component is allowed for costs incurred and paid prior to the issuance of the COC. For up to five tax years after the COC was issued, the on-site groundwater remediation component is allowed in the tax year the qualified costs were both incurred and paid. The on-site groundwater remediation credit component includes all costs properly charged to a capital account that are paid or incurred in connection with: ·asite'squalificationforaCOC; ·theremediationofon-sitegroundwatercontamination;and ·theimplementationofarequirementintheremedialworkplan.

· Forthree-yearpropertydepreciatedunderIRCsection168,the formula is: 36 minus the number of months of qualified use 36 x tangible property credit component previously allowed

Recapturethecreditonlyifthepropertyceasestobeinqualified use prior to the end of 36 months. · ForpropertydepreciatedunderIRCsection168,otherthan three-year property or buildings or structural components of buildings, the formula is: 60 minus the number of months of qualified use 60 x tangible property credit component previously allowed

Recapturethecreditonlyifthepropertyceasestobeinqualified use prior to the end of 60 months.

Page 4 of 4 CT-611-I (2008) · Forabuildingorstructuralcomponentofabuildingthatis depreciatedunderIRCsection168,theformulais: number of months allowed bytheIRCandusedby the taxpayer minus the months of qualified use x tangible property credit number of months component previously allowed allowedbytheIRCand used by the taxpayer Line 20 -- If you are claiming more than one tax credit for this year, enter the total amount of credits claimed before applying this credit. Include any amount of brownfield redevelopment tax credit being claimed on another Form CT-611 or CT-611.1 that you wish to apply before the credit being claimed on this form. Otherwise, enter 0. You must apply certain credits before the brownfield redevelopment taxcredit.Refertotheinstructionsforyourfranchisetaxreturnto determine the order of credits that applies. Article9-Afilers:RefertoFormCT-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 brownfield redevelopment tax credit, that you wish to apply before your brownfield redevelopment tax credit. 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 22 -- Enter your minimum tax using the Lines 19 and 22 entries table.

If qualified property has a useful life of more than 12 years and has been in qualified use for more than 12 consecutive years, recapture is not necessary. Recapture if COC is revoked If your COC is revoked by the DEC, the amount of all brownfield credits previously allowed under Tax Law section 21 must be added back to your tax in the tax year in which the determination is final and no longer subject to judicial review. Line 11a -- Enter the total tangible property credit component amounts allowed in previous tax years less any prior recapture amount of the tangible property credit component with respect to the qualified site. Line 12 -- New York S corporations: Transfer this amount to the applicable line of Form CT-34-SH.

Credit summary (New York S corporations do not complete this
section) Line 18 -- New York C corporations: If the amount on line 16 is greater than the amount on line 17, subtract line 17 from line 16. This is the amount of your credit. If the amount on line 17 is greater than the amount on line 16, you have a net recapture amount;subtractline16fromline17andentertheresultwitha minus sign (-). Transfer the line 18 amount (with the minus sign if a recapture) to the appropriate line of the tax credits section on your franchise tax return.

Need help?
Internet access: www.nystax.gov (for information, forms, and publications) Fax-on-demand forms: Forms are available 24 hours a day, 7 days a week. 1 800 748-3676 Telephone assistance is available from 8:00 A.M. to 5:00 P.M. (eastern time), Monday through Friday. To order forms and publications: 1 800 462-8100 Corporation Tax Information Center: 1 888 698-2908 From areas outside the U.S. and outside Canada: (518) 485-6800 Text Telephone (TTY) Hotline (for persons with hearing and speech disabilities using a TTY): If you have access to a TTY, contact us at 1 800 634-2110. 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 with disabilities, please call 1 800 972-1233.

Computation of brownfield redevelopment tax credit used, refunded, or credited as an overpayment in the next tax year (New York S corporations do not complete this
section)

Lines 19 and 22 entries table
Enter on line 19 the amount from Line 4 of Form CT-183 plus the amount from line 3 or 4 of Form CT-184 Line 6 Line 78 Line 77 Line 5 Line 5 Line 11 Line 15 Line 5 Enter on line 22 the minimum tax below 75

If you filed Forms CT-183 and CT-184

Form CT-185 Form CT-3 Form CT-3-A Form CT-32 Form CT-32-A Form CT-33 Form CT-33-A Form CT-33-NL

10 Line 81 amount Line 80 amount 250 250 250 The result of adding line 4 and line 12 250

Line 19 -- Enter your tax due before credits using the Lines 19 and 22 entries table.