Sec. 5-8.2. Computing the economic development zone capital tax credit

Tax Law, § 210(20)(a)

(a) The amount of the economic development zone capital tax credit which a taxpayer is allowed is 25 percent of the sum of:

(1) qualified investments, as defined in subdivision (c) of this section, made in, or contributions in the form of donations made to, one or more economic development zone capital corporations established pursuant to section 964 of the General Municipal Law;

(2) contributions of money to community development projects as defined in section 10.2 of Part 10 of the Economic Development Zones regulations (5 NYCRR 10.2); and

(3) qualified investments in certified zone businesses which during the 12-month period immediately preceding the month in which such investment is made employed full-time within New York State and average number of individuals, excluding general executive officers, of 250 or fewer, computed pursuant to section 210(19)(b)(3) of the Tax Law, except for investments made by or on behalf of an owner of the business, as defined in subdivision (b) of this section, including, but not limited to, a stockholder, partner or sole proprietor, or any related person, as defined in section 465(b)(3)(C) of the Internal Revenue Code.

(b) For purposes of paragraph (a)(3) of this section, owner of the business means an entity or individual that owns more than a 10 percent interest in a certified zone business.

(c) For purposes of this section qualified investments, means the contribution of property, which includes money, to a corporation in exchange for original issue capital stock or other ownership interest, to a partnership in exchange for an interest in the partnership, and similar contributions in the case of a business entity not in corporate or partnership form in exchange for an ownership interest in the entity.