Sec. 5-11.4. Recomputation of the economic development zone employment incentive tax credit on property disposed of or property that ceases to qualify

Tax Law, § 210(12-B)(f), (12-C)

(a) If property on which the economic development zone employment incentive tax credit has been claimed is disposed of or ceases to be in qualified use prior to the end of its useful life, the difference between the credit claimed and the credit allowed must be added back to the tax otherwise due in the year of disposition or disqualification. (See: section 5-10.8 of this Part—Recomputation of the economic development zone investment tax credit on property that is disposed of or ceases to qualify and section 5-10.9 of this Part—Recomputation of the economic development zone investment tax credit on property that is disposed of or ceases to qualify due to certain decertifications.)

(b) The amount of the economic development zone employment incentive tax credit to be added back is computed as follows:

(1) 30 percent of the amount of economic development zone investment tax credit to be added back as determined pursuant to section 5-10.8(b) of this Part or section 5-10.9(b) of this Part, as applicable;

(2) multiply the applicable amount computed in paragraph (1) of this subdivision by the number of years the economic development zone employment incentive tax credit was allowable; and

(3) add the amount computed in paragraph (2) of this subdivision to the tax due for the year the property was disposed of or ceases to be in qualified use.