Sec. 5-11.1. General

Tax Law, § 210(12-C)(a)

(a) Where a taxpayer qualifies for an economic development zone investment tax credit with respect to qualified property pursuant to Subpart 5-10 of this Part, the taxpayer is allowed to claim an economic development zone employment incentive tax credit for each of the three years next succeeding the taxable year for which the credit pursuant to Subpart 5-10 of this Part was allowable, of 30 percent of the credit allowable pursuant to Subpart 5-10 of this Part. Provided, however, that the economic development zone employment incentive tax credit for any taxable year will only be allowed if a taxpayer has at least one employee during that taxable year, and if:

(1) the average number of employees employed by the taxpayer in the economic development zone, designated pursuant to article 18-B of the General Municipal Law, in which such property is located during such taxable year is at least 101 percent of the average number of employees employed by the taxpayer in such economic development zone or, where applicable, in the geographic area subsequently constituting such zone, during the taxable year immediately preceding the taxable year for which the credit pursuant to Subpart 5-10 of this Part was allowable; or

(2) in the case of a taxpayer which was not subject to the tax imposed by article 9-A of the Tax Law and did not have a taxable year immediately preceding the taxable year for which the credit pursuant to Subpart 5-10 of this Part was allowable, the average number of employees employed in such economic development zone in the taxable year for which the credit under this Subpart is allowable is at least 101 percent of the average number of such employees during the taxable year in which the credit pursuant to Subpart 5-10 of this Part was allowable.

(b) A taxpayer entitled to claim the economic development zone employment incentive tax credit must submit a copy of its certificate of eligibility together with a “Claim for Economic Development Zone Investment Tax Credit” (form DTF-603) when claiming the economic development zone employment incentive tax credit.

(c) Where a taxpayer's certification pursuant to article 18-B of the General Municipal Law has been revoked subsequent to claiming an economic development zone employment incentive tax credit, such credit must be recomputed in accordance with section 5-11.4 of this Subpart.

(d) For a special provision with respect to the assessment of tax due to a taxpayer's decertification pursuant to article 18-B of the General Municipal Law, see section 38.1 of this Title.