New York State Department of Taxation and Finance
Instructions for Form CT-612
For tax years beginning on or after April 1, 2005, the remediated brownfield credit for real property taxes is available to developers of qualified sites who are 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 be a developer. A developer is a taxpayer who has · executed a Brownfield Cleanup Agreement (BCA) under the Environmental Conservation Law (ECL) and has a Certificate of Completion (COC) issued by the Commissioner of Environmental Conservation, or · purchased or otherwise been conveyed all or any portion of a qualified site for which a COC has been issued. The purchase or conveyance must occur within seven years of the effective date of the COC. The taxpayer who is purchasing all or any portion of the qualified site and the taxpayer and any other party who has been issued the COC may not be related persons (as defined in Internal Revenue Code (IRC) section 465(b)(3)(C)). A developer may also be a partner in a partnership (including limited liability companies (LLCs)) or a shareholder in a New York S corporation if the partnership or New York S corporation has been issued a COC, or the partnership or New York S corporation has purchased or otherwise been conveyed all or any portion of a qualified site for which a COC was issued. A taxpayer will cease to be a developer on the first day of the tax year during which revocation of the COC by the Department of Environmental Conservation (DEC) is final and no longer subject to judicial review. For more information about the Brownfield Cleanup Program (BCP), visit the DEC Web site at www.dec.ny.gov. The amount of credit is 25% of the product of the benefit period factor, the employment number factor, and the eligible real property taxes paid or incurred by the developer of the qualified site during the tax year. For a qualified site that is located entirely within an environmental zone (EN-Zone), the credit is the product of the benefit period factor, the employment number factor, and the eligible real property taxes paid or incurred by the developer of the qualified site during the tax year. The amount of credit is limited to the product of $10,000 and the average number of full-time employees employed by the developer of a qualified site and a lessee during the tax year. 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 a qualified site is located entirely or partly within an empire zone (EZ), and a taxpayer meets the eligibility requirements for both the remediated brownfield real property tax credit and the qualified empire zone enterprise (QEZE) real property tax credit, the taxpayer may not claim both credits. The taxpayer must make an election as to which credit to take in the first year the taxpayer is eligible for the remediated brownfield credit for real property taxes. Once made, the election is irrevocable. The election is made by filing a tax return for the first tax year the qualified site is eligible for the brownfield real property tax credit and claiming either of the credits. Once the election is made, a taxpayer may not claim the
Claim for Remediated Brownfield Credit for Real Property Taxes
other tax credit in that year or any subsequent tax year for the same qualified site. A taxpayer that was previously allowed the QEZE real property tax credit is not prohibited from making the election to claim the brownfield real property tax credit. For more information on the QEZE credit for real property taxes, see Form CT-606, Claim for QEZE Credit for Real Property Taxes. 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 qualified site means a site for which the taxpayer has been issued a COC by the Commissioner of Environmental Conservation. 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 it 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 Brownfield Cleanup Agreement (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. The benefit period is a ten-consecutive-tax-year period beginning with the tax year in which the COC is issued for the qualified site or the first tax year beginning on or after April 1, 2005, whichever is later. The benefit period factor for each year of the benefit period is 1.0. The employment number factor is a numerical value assigned to the developer based on the average number of full-time employees (excluding general executive officers) employed by the developer and any lessees at the qualified site during the tax year. Refer to the Employment number factor table. Full-time employment 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. A seasonal business (a business that regularly operates for less than an entire tax year, such as a ski resort) that employs individuals full time for at least three months of continuous duration may include these individuals in the employment number if they are working in a job consisting of at least 35 hours per week. General executive officers are the chairman, president, vice president, secretary, assistant secretary, treasurer, assistant treasurer, comptroller, and any other officer charged with the general affairs of the corporation. A general executive officer is, therefore, an appointed or elected officer of the corporation having
Page 2 of 3 CT-612-I (2008) company-wide authority with respect to assigned functions or responsibility for an entire division of the company. Eligible real property taxes are taxes imposed on real property that is a qualified site owned by the developer. The taxes must become a lien on the real property in a period during which the real property is a qualified site. Eligible real property taxes also include payments in lieu of taxes (PILOT) made to the state, a municipal corporation, or a public benefit corporation for a qualified site owned by the developer provided the payments are made pursuant to a written agreement. However, the amount of PILOT payments that constitute eligible real property taxes is limited. Calculate the limitation as follows: 1. Determine the basis of the remediated brownfield real property (including buildings and structural components of buildings) on the following two dates: a. the date the taxpayer became a developer b. the last day of the current tax year Calculate the basis amount in the same manner as calculated for federal income tax purposes. 2. Multiply the greater of these two amounts by the rate applicable to the county in which the real property is located (see Full-value tax rates by county), and 3. Divide by 1000 The result is the maximum amount of PILOT payment that may be included in eligible real property taxes for purposes of calculating the remediated brownfield real property tax credit.
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.
Schedule B -- Computation of average number of full-time employees employed by a developer and a lessee
Partners in a partnership -- If you are only claiming a pass-through credit(s) from a partnership, skip Schedules B and C, lines 1 through 9. Complete Schedule D, if applicable, and complete Schedule E, Partnership information. Complete this entire form if your corporation has earned its own remediated brownfield credit for real property taxes in addition to receiving a pass-through credit. Line 1 -- For each date specified of the current tax year, enter the number of full-time employees (excluding general executive officers) employed by the developer of a qualified site and a lessee. Divide the total number of employees for the current tax year by the number of dates occurring during the current tax year (even if you had no employees on those dates). Enter the result on line 1. Note: If line 1 is less than 25, no credit is allowed.
Full-value tax rates by county
County Overall tax rate County Overall tax rate County Overall tax rate
Albany Allegany Broome Cattaraugus Cayuga Chautauqua Chemung Chenango Clinton Columbia Cortland Delaware Dutchess Erie Essex Franklin Fulton Genesee Greene Hamilton
26.00 49.50 43.00 36.30 33.80 34.20 36.60 41.20 31.20 20.40 41.10 24.80 19.60 34.10 20.40 24.50 31.10 40.30 21.90 16.60
Herkimer Jefferson Lewis Livingston Madison Monroe Montgomery Nassau* Niagara Oneida Onondaga Ontario Orange Orleans Oswego Otsego Putnam Rensselaer Rockland
28.10 24.10 32.60 34.90 32.70 39.90 42.50 23.60 39.50 33.30 37.00 29.70 23.90 42.60 39.40 25.80 22.10 33.70 24.90
St. Lawrence Saratoga Schenectady Schoharie Schuyler Seneca Steuben Suffolk Sullivan Tioga Tompkins Ulster Warren Washington Wayne Westchester Wyoming Yates Outside NYC
36.70 21.10 34.30 33.00 33.70 36.90 37.40 16.70 29.10 36.60 30.60 23.80 16.20 29.60 39.40 21.00 34.10 27.30 23.80
Schedule C -- Computation of remediated brownfield credit for real property taxes
Line 2 -- Find your employment number factor in the table below using the average number of full-time employees on line 1. Enter the result on line 2. Note: If line 1 is less than 25, no credit is allowed. Employment number factor table Average number of full-time employees is at least Factor 25 but less than 50.............................................. .25 50 but less than 75.............................................. .50 75 but less than 100............................................ .75 100 ...................................................................... 1.00 Line 3 -- Enter the total amount of eligible real property taxes. See definition of eligible real property taxes in Definitions. Attach copies of all real property tax bills (including school tax bills) that are the basis of your credit. If the real property taxes include PILOT payments, attach a copy of the PILOT agreement. Line 6 -- If the eligible real property taxes that were the basis for a remediated brownfield real property tax credit are subsequently reduced as a result of a final order in any proceeding under Real Property Tax Law Article 7 (or other provision of law), you must recapture a portion of the credit allowed in the tax year the final order is issued. Complete Line 6 worksheet, and enter the recapture amount on line 6.
New York City by class* 1................................................................. 6.23 2................................................................. 42.41 3................................................................. 54.03 4................................................................. 43.21 * New York City and Nassau County have a four-class property tax system (class 1: 1-3 family residential; class 2: apartment; class 3: utility equipment; and class 4: all other property). It was not possible to determine a countywide class-specific rate for Nassau County due to the complexity of taxing jurisdictions.
CT-612-I (2008) Page 3 of 3 Line 6 worksheet A. The amount of credit originally allowed ......... A B. The amount of credit calculated using the reduced tax amount ................................... B C. Recapture amount (subtract line B from line A; enter the result on line 6) ................................ C Note: Lines A and B enter the amount of credit after the application of the credit limitation. If property taxes are reduced for more than one tax year, you must determine how much of the reduction is attributable to each year and recapture the apportioned amount for each year. Line 7 -- If the amount on line 5 is greater than the amount on line 6, subtract line 6 from line 5 and continue to line 8. If the amount on line 6 is greater than the amount on line 5, you have a net recapture amount; subtract line 5 from line 6. Enter the result as a negative number with a minus sign (-). If line 7 is a net recapture, skip lines 8 and 9. If you are claiming a pass-through credit from a partnership, continue with line 10. All others, do not complete the rest of this form. New York C corporations: Transfer the negative number to the appropriate box in the tax credits section of your franchise tax return. New York S corporations: Transfer the net recapture as a positive number to Form CT-34-SH, New York S Corporation Shareholders' Information Schedule. Line 10 -- If you received a remediated brownfield credit for real property taxes from a partnership, enter the amount on line 10, and complete Schedule E, Partnership information. Line 11 -- New York S corporations: Transfer the result to Form CT-34-SH. Line 13 -- If you are claiming more than one tax credit for this year, enter the amount of credits claimed before applying this credit. Include any amount of remediated brownfield credit for real property taxes being claimed on another Form CT-612 that you wish to apply before the credit being claimed on this form. Otherwise, enter 0. You must apply certain credits before the remediated brownfield credit for real property taxes. 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 remediated brownfield real property tax credit, that you wish to apply before your remediated brownfield real property 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 15 -- Enter your minimum tax using the Lines 12 and 15 entries table.
Schedule E -- Partnership information
If you received a remediated brownfield credit for real property taxes from a partnership, enter the amount on line 10 and complete Schedule E, Partnership information.
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.
Schedule D -- Application of remediated brownfield credit for real property taxes (New York S corporations do not complete this section)
Lines 12 and 15 entries table
If you filed Forms CT-183 and CT-184 Enter on line 12 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 15 the minimum tax below 75
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 12 -- Enter your tax before credits using the Lines 12 and 15 entries table.
-- Notes --