Sec. 106.9. Economic development zone capital tax credit

Tax Law, § 606(1)

A taxpayer is allowed to claim an economic development zone capital tax credit (EDZ-capital tax credit) with respect to the sum of the investments and contributions, provided in section 606(l)(1) of the Tax Law, made during the taxable year and certified by the Commissioner of Economic Development. The provisions of Subpart 5-8 of this Title, dealing with the EDZ-capital tax credit against the tax imposed by article 9-A of the Tax Law, are applicable to the credit allowed by section 606(l) of the Tax Law, except as may otherwise be required by such section. Included within those exceptions are provisions of section 606(l)(2)(A) of the Tax Law, which provide that the amount of the EDZ-capital tax credit and carryovers of such credit for any taxable year may not exceed the taxpayer's tax for such year; section 606(l)(2)(B) and (C) of the Tax Law, which limit the total amount of the credit allowed, with respect to a husband or wife who is required to file a separate return, or with respect to an estate or trust, respectively; and provisions of section 606(l)(3), which require taxpayers to adjust their New York taxable income to reflect the reduced cost of qualified investments arising from the application of the EDZ-capital tax credit when such investments are disposed of. A taxpayer must submit a “Claim for Economic Development Zone Capital Tax Credit” (form DTF-602) when claiming the credit.