Sec. 5-10.7. Limitation, carryover and refund of the economic development zone investment tax credit

Tax Law, § 210(12-B)(d)

(a) The economic development zone investment tax credit shall not reduce the tax due to less than the higher of the amounts prescribed in Subparts 3-4 and 3-5 of this Title. Except as provided in subdivision (b) or (c) of this section, a taxpayer which has an excess economic development zone investment tax credit after reducing the tax due to the higher of such amounts may carry over such excess credit to the following year or years and may deduct the excess credit from the taxpayer's tax for such year or years.

(b) A taxpayer which qualifies as a new business under section 210(12)(j) of the Tax Law may elect, but only on its report for the taxable year for which the credit is allowed (that is, the year the property is placed in service), to treat 50 percent of the amount of excess credit described in subdivision (a) of this section as an overpayment of tax to be credited or refunded in accordance with the provisions of section 1086 of the Tax Law. However, notwithstanding the provisions of section 1088(c) of the Tax Law, no interest shall be paid on such overpayment.

(c) A taxpayer that has been decertified pursuant to article 18-B of the General Municipal Law, which has an excess economic development zone investment tax credit after reducing the tax due to the higher of the amounts prescribed in Subparts 3-4 and 3-5 of this Title may carry over such excess credit to the seven taxable years next following the taxable year with respect to which such credit was allowed.

(d) No portion of the excess credit described in subdivision (a) of this section may be carried over to any following year or years and no portion of such excess credit may be credited or refunded as described in subdivision (b) of this section, unless the taxpayer claims such credit or refund by filing form DTF-603 with its report for the taxable year in which the property becomes qualified pursuant to section 5-10.2 of this Subpart.