Sec. 106.7. Economic development zone investment tax credit

Tax Law, §§ 606(j), 683(c)(9)

A taxpayer, who has been certified or who has applied for certification pursuant to article 18-B of the General Municipal Law, is allowed, by section 606(j) of the Tax Law, to claim an economic development zone investment tax credit (EDZ-ITC) against the ordinary tax (see section 101.1 of this Title), after allowance of any of the other credits referred to in this Part and any credits referred to in Parts 120, 121 and 140 of this Title. The EDZ-ITC is allowed with respect to qualified tangible personal property and other qualified tangible property, including buildings and structural components of buildings, which is located within an economic development zone, designated as such pursuant to article 18-B of the General Municipal Law, provided the acquisition, construction, reconstruction or erection of such property occurred or was commenced on or after the date of such designation and prior to the expiration thereof. The provisions of Subpart 5-10 of this Title, dealing with the EDZ-ITC against the tax imposed by article 9-A of the Tax Law, are applicable to the credit allowed by section 606(j) of the Tax Law, except as may otherwise be required by such section. Included within those exceptions are provisions of section 606(j)(1) of the Tax Law which provide that the amount of the EDZ-ITC shall be eight percent of the cost or other basis for Federal income tax purposes, and section 606(j)(4) of the Tax Law which provide that the EDZ-ITC for any taxable year may not exceed the taxpayer's tax for such year.