Sec. 5-2.3. Leased property

Tax Law, § 210, 12(d)

Tangible personal property and other tangible property, including buildings, and structural components of buildings, which a taxpayer leases to any other person or corporation does not qualify for the 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 production property is leased in form and the lessee is in fact the beneficial owner and entitled to take Federal depreciation on the property and the property qualifies pursuant to section 5-2.2 of this Subpart, the lessee may be entitled to take the investment tax credit.