Sec. 5-10.3. Leased property

Tax Law, § 210(12-B)(c)

Tangible personal property and other tangible property, including buildings and structural components of buildings, which a taxpayer leases to any other person or corporation do not qualify for the economic development zone investment tax credit. For purposes of the preceding sentence, any contract or agreement to lease or rent or for a license to use such property will be considered a lease. However, in cases where such property is leased in form and the lessee is in fact the beneficial owner entitled to take Federal depreciation on such property and the property qualifies pursuant to section 5-10.2 of this Subpart, the lessee may be entitled to take the economic development zone investment tax credit provided such lessee has been certified pursuant to article 18-B of the General Municipal Law. Any election made with respect to such property pursuant to the provisions of section 168(f)(8) of the Internal Revenue Code, as such section was in effect for safe harbor lease agreements entered into prior to January 1, 1984, must be disregarded in determining whether a taxpayer shall be allowed a credit pursuant to this Subpart.