(a) Credit relating to net capital gain. For taxable years beginning in nineteen hundred eighty-seven, a credit against the tax imposed under section 11-1701 shall be allowed. The amount of the credit shall be one-half of one percent of net capital gain includible in city adjusted gross income for the taxable year. The credit allowed by this subdivision shall not exceed the tax imposed by section 11-1701 reduced by the credits permitted under section 11-1721 and subdivision (b) of this section.
(b) Household credit.
(1) For taxable years beginning after nineteen hundred eighty-six, a credit against the city personal income tax imposed by section 11-1701 shall be allowed. The credit, computed as described in paragraph two of this subdivision, shall not exceed the tax imposed by section 11-1701, reduced by the credit permitted under section 11-1721.
(2) (A) For any individual who is not married nor the head of a household nor a surviving spouse, the amount of the credit shall be determined in accordance with the following table:
If household gross income is: | The credit shall be: | |
For taxable years beginning after 1986 and before 1996 | For taxable years beginning after 1995 | |
Not over $7,500 | $15 | $15 |
Over $7,500 but not over $10,000 | $10 | $15 |
Over $10,000 but not over $12,500 | $0 | $10 |
(B) For any husband and wife, head of household or surviving spouse, the amount of the credit shall be determined by multiplying the number of exemptions for which the taxpayer (or in the case of a husband and wife, taxpayers) is entitled to a deduction for the taxable year for federal income tax purposes under subsections (b) and (c) of section one hundred fifty-one of the internal revenue code by the credit factor for the taxable year as specified in the following table:
If household gross income is: | The credit factor is: | |||
For taxable years beginning in | For taxable years beginning after 1995 | |||
1987 | 1988 | 1989 through 1995 | ||
Not over $12,500 | $30 | $50 | $50 | $30 |
Over $12,500 but not over $15,000 | $20 | $40 | $50 | $30 |
Over $15,000 but not over $17,500 | $10 | $20 | $25 | $25 |
Over $17,500 but not over $20,000 | $0 | $15 | $15 | $15 |
Over $20,000 but not over $22,500 | $0 | $0 | $0 | $10 |
(3) For purposes of this subsection:
(A) "Household gross income" shall mean the aggregate federal adjusted gross income of a household, as the term household is defined in subparagraph (B) of this paragraph, for the taxable year.
(B) "Household" means a husband and wife, a head of household, a surviving spouse, or an individual who is not married nor the head of a household nor a surviving spouse nor a taxpayer with respect to whom a deduction under subsection (c) of section one hundred fifty-one of the internal revenue code is allowable to another taxpayer for the taxable year.
(C) "Household gross income of a husband and wife" shall be the aggregate of their federal adjusted gross incomes for the taxable year irrespective of whether joint or separate city income tax returns are filed. Provided, however, that a husband or wife who is required to file a separate city income tax return shall be permitted one-half the credit otherwise allowed his or her household, except as limited by paragraph one of this subdivision.
(D) "Household gross income" shall be computed in all cases as if each member of the household were a resident for the entire taxable year.
(E) If a taxpayer changes his status during his taxable year from resident to nonresident, or from nonresident to resident, the household credit shall be prorated according to the number of months in the period of residence. In the case of a husband and wife, if either or both changes his or her status from resident to nonresident or from nonresident to resident and separate returns are filed, the credit computed for the entire year shall be divided first as provided in subparagraph (C) of this paragraph and then prorated according to the number of months in the period of residence.
(c)* State school tax reduction credit.
Editor's note: there are two divisions designated (c) in this section.
(1) For taxable years beginning after nineteen hundred ninety-seven and ending before two thousand sixteen, a state school tax reduction credit shall be allowed as provided in the following tables. The credit shall be allowed against the taxes authorized by this article reduced by the credits permitted by this article. If the credit exceeds the tax as so reduced, the taxpayer may receive, and the comptroller, subject to a certificate of the commissioner, shall pay as an overpayment, without interest, the amount of such excess. For purposes of this subsection, no credit shall be granted to an individual with respect to whom a deduction under subsection (c) of section one hundred fifty-one of the internal revenue code is allowable to another taxpayer for the taxable year.
(2) The amount of the credit under this paragraph shall be determined based upon the taxpayer's income as defined in subparagraph (ii) of paragraph (b) of subdivision four of section four hundred twenty-five of the real property tax law. For purposes of this paragraph, any taxpayer under subparagraphs (A) and (B) of this paragraph with income of more than two hundred fifty thousand dollars shall not receive a credit. Beginning in the two thousand ten tax year and each tax year thereafter through two thousand fifteen, the "more than two hundred fifty thousand dollar" income limitation shall be adjusted by applying the inflation factor set forth herein, and rounding each result to the nearest multiple of one hundred dollars. The department shall establish the income limitation to be associated with each subsequent tax year by applying the inflation factor set forth herein to the figures that define the income limitation that were applicable to the preceding tax year, as determined pursuant to this subsection, and rounding each result to the nearest multiple of one hundred dollars. Such determination shall be made no later than March first, two thousand ten and each year thereafter.
(A) Married individuals filing joint returns and surviving spouses. In the case of a husband and wife who make a single return jointly and of a surviving spouse:
For taxable years beginning: | The credit shall be: |
in 2001 - 2005 | $125 |
in 2006 | $230 |
in 2007 - 2008 | $290 |
in 2009 - 2015
| $125 |
(B) All others. In the case of an unmarried individual, a head of a household or a married individual filing a separate return:
For taxable years beginning: | The credit shall be: |
in 2001 - 2005 | $62.50 |
in 2006 | $115 |
in 2007 - 2008 | $145 |
in 2009 - 2015
| $62.50 |
(3) [Reserved.]
(4) Husband and wife who make a joint return. If a husband and wife make a single return jointly, the credit under this subdivision shall be determined under paragraph two of this subdivision, if either of them has attained the age of sixty-five on or before the close of the taxable year.
(5) Part-year residents. If a taxpayer changes status during the taxable year from resident to nonresident, or from nonresident to resident, the state school tax reduction credit shall be prorated according to the number of months in the period of residence.
(c)* Credit for unincorporated business taxes paid.
Editor's note: there are two divisions designated (c) in this section.
(1) A city resident individual, estate or trust whose city adjusted gross income includes income, gain, loss or deductions from one or more unincorporated businesses conducted by such city resident individual, estate or trust that are subject to the tax imposed by chapter five of this title, or a distributive share of income, gain, loss and deductions of, or guaranteed payments from, one or more partnerships that are subject to the tax imposed by such chapter, shall be allowed a credit as provided in paragraph two of this subdivision against the tax otherwise due under sections 11-1701, 11-1703, 11-1704 and 11-1704.1 of this chapter.
(2) (A) Subject to the limitation set forth in subparagraph (B) of this paragraph, the credit allowed to a taxpayer for a taxable year under this subdivision shall be determined as follows:
(i) For taxable years beginning on or after January first, nineteen hundred ninety-seven:
(I) If the city taxable income is forty-two thousand dollars or less, the credit shall be sixty-five percent of the amount determined in paragraph three of this subdivision.
(II) If the city taxable income is greater than forty-two thousand dollars but not greater than one hundred forty-two thousand dollars, the amount of the credit shall be a percentage of the amount determined in paragraph three of this subdivision, such percentage to be determined by subtracting from sixty-five percent, one-tenth of a percentage point (.001) for every increment of two hundred dollars, or fractional part thereof, of city taxable income in excess of forty-two thousand dollars.
(III) If the city taxable income is greater than one hundred forty-two thousand dollars, the credit shall be fifteen percent of the amount determined in paragraph three of this subdivision.
(B) Notwithstanding anything to the contrary in subparagraph (A) of this paragraph, the credit allowed to a taxpayer for a taxable year under this subdivision shall not exceed the sum of the taxes that would otherwise be imposed by sections 11-1701, 11-1703, 11-1704 and 11-1704.1 of this chapter on such taxpayer for such taxable year after the allowance of any other credits allowed by this section or section 11-1721 of this chapter.
(3) Subject to the provisions of subparagraph (C) of this paragraph, the amount determined in this paragraph is the sum of:
(A) for each unincorporated business conducted by the taxpayer, the tax imposed by chapter five of this title on such unincorporated business for its taxable year ending with the taxable year of the taxpayer and paid by the unincorporated business; and
(B) for each unincorporated business in which the taxpayer is a partner, the product of:
(i) the sum of (I) the tax imposed by chapter five of this title on such unincorporated business for its taxable year ending within or with the taxable year of the partner and paid by the unincorporated business and (II) the amount of any credit or credits taken by the unincorporated business under subdivision (j) of section 11-503 of this title for its taxable year ending within or with the taxable year of the partner; and
(ii) a fraction, the numerator of which is the net total of the partner's distributive share of income, gain, loss and deductions of, and guaranteed payments from, the unincorporated business for such taxable year, and the denominator of which is the sum, for such taxable year, of the net total distributive shares of income, gain, loss and deductions of, and guaranteed payments to, all partners in the unincorporated business for whom or which such net total (as separately determined for each partner) is greater than zero.
(C) For a taxpayer that changes its status from a city resident to a city nonresident or from a city nonresident to a city resident during the taxable year:
(i) the amount determined in subparagraph (A) of this paragraph shall be, with respect to each unincorporated business conducted by the taxpayer, the tax imposed by chapter five of this title on such unincorporated business for its taxable year ending with the taxable year of the taxpayer and paid by the unincorporated business, multiplied by a fraction, the numerator of which is that portion of the income, gain, loss and deductions of the unincorporated business included in the taxpayer's adjusted gross income for the portion of the taxable year during which the taxpayer was a city resident, and the denominator of which is the total, for such taxable year, of the income, gain, loss and deductions of the unincorporated business, and
(ii) the amount determined in clause (ii) of subparagraph (B) of this paragraph shall be a fraction, the numerator of which is that portion of the taxpayer's net total distributive share of income, gain, loss and deductions of, and that portion of guaranteed payments from, the unincorporated business included in the taxpayer's city adjusted gross income for the portion of the taxable year during which the taxpayer was a city resident, and the denominator of which is the sum, for such taxable year, of the net total distributive shares of income, gain, loss and deductions of, and guaranteed payments to, all partners in the unincorporated business, for whom or which such net total (as separately determined for each partner) is greater than zero.
(4) For purposes of subdivision (c) of section 11-1902 of this title, in determining the amount of tax that a nonresident would be required to pay if such nonresident were a resident of the city and subject to the tax on personal income of residents, the credit allowed by this subdivision shall be taken into account.
(d) Earned income tax credit.
(1) For taxable years beginning after two thousand three, a credit against the city personal income tax shall be allowed, equal to five percent of the earned income credit allowed under section thirty-two of the internal revenue code for the same taxable year, and, for taxable years beginning after two thousand twenty-one, a credit against the city personal income tax shall be allowed, equal to a percentage determined pursuant to subparagraphs (A) through (I) of this paragraph, of the earned income credit allowed under section thirty-two of the internal revenue code for the same taxable year. For purposes of this paragraph, "adjusted gross income" means New York adjusted gross income as determined pursuant to article twenty-two of the tax law. The percentage shall be:
(A) thirty percent, where the taxpayer's adjusted gross income for such taxable year is less than $5,000;
(B) thirty percent reduced by the product of two-tenths of a percentage point (0.002) and the amount of the taxpayer's adjusted gross income for such taxable year in excess of $4,999, where such taxpayer's adjusted gross income for such taxable year is equal to or greater than $5,000 and less than $7,500;
(C) twenty-five percent, where the taxpayer's adjusted gross income for such taxable year is equal to or greater than $7,500 and less than $15,000;
(D) twenty-five percent reduced by the product of two-tenths of a percentage point (0.002) and the amount of the taxpayer's adjusted gross income for such taxable year in excess of $14,999, where such taxpayer's adjusted gross income for such taxable year is equal to or greater than $15,000 and less than $17,500;
(E) twenty percent, where the taxpayer's adjusted gross income for such taxable year is equal to or greater than $17,500 and less than $20,000;
(F) twenty percent reduced by the product of two-tenths of a percentage point (0.002) and the amount of such taxpayer's adjusted gross income for such taxable year in excess of $19,999, where the taxpayer's adjusted gross income for such taxable year is equal to or greater than $20,000 and less than $22,500;
(G) fifteen percent, where the taxpayer's adjusted gross income for such taxable year is equal to or greater than $22,500 and less than $40,000;
(H) fifteen percent reduced by the product of two-tenths of a percentage point (0.002) and the amount of the taxpayer's adjusted gross income for such taxable year in excess of $39,999, where such taxpayer's adjusted gross income for such taxable year is equal to or greater than $40,000 and less than $42,500; and
(I) ten percent where the taxpayer's adjusted gross income for such taxable year is equal to or greater than $42,500.
(2) In the case of a resident taxpayer, the credit provided by this subdivision shall be allowed against the taxes authorized by this chapter for the taxable year reduced by the credits permitted by this chapter. If the credit exceeds the tax as so reduced, the taxpayer may receive, and the state comptroller, subject to a certificate of the commissioner of the state department of taxation and finance, shall pay as an overpayment, without interest, the amount of such excess.
(3) If a taxpayer changes his or her status during the taxable year from city resident to city nonresident, or from city nonresident to city resident, the credit determined under this subdivision shall be limited to the amount determined by multiplying the amount of such credit by a fraction, the numerator of which is such taxpayer's city adjusted gross income, for the period of residence, and the denominator of which is such taxpayer's city adjusted gross income determined as if he or she were a city resident for the entire taxable year. City adjusted gross income shall be adjusted as provided in section 11-1754 of this chapter. The credit as so limited shall be applied as provided in paragraph two of this subdivision.
(4) Subject to the provisions of paragraph three of this subdivision, in the case of a husband and wife who file a joint return, but who are required to determine their city personal income taxes separately, the credit authorized pursuant to this subdivision may be applied against the tax of either or divided between them as they may elect. In the case of a husband and wife who are not required to file a federal return, the credit under this subsection shall be allowed only if such taxpayers file a joint city personal income tax return.
(5) If the state commissioner of taxation and finance determines that the taxpayer is eligible to receive the credit provided under this subdivision but has not claimed such credit on his or her return, the state commissioner of taxation and finance shall compute and issue any refund for the allowable credit amount provided under this subdivision. Any refund paid pursuant to this paragraph shall be deemed to be a refund of an overpayment of tax as provided in section 11-1786 of this title, provided, however, that no interest shall be paid thereon.
(e) Credit for certain household and dependent care services necessary for gainful employment.
(1) For taxable years beginning on or after January first, two thousand seven, a taxpayer shall be allowed a credit as provided herein equal to the applicable percentage of the credit allowed under subsection (c) of section six hundred six of the tax law with respect to qualifying individuals as defined in paragraph one of subsection (b) of section twenty-one of the internal revenue code (without regard to whether the taxpayer in fact claimed the credit under such section twenty-one for the taxable year) who are dependents of the taxpayer and who have not attained the age of four as of the end of the taxable year. The applicable percentage shall be determined as follows:
(A) If household gross income as defined in subparagraph (A) of paragraph three of subdivision (b) of this section is twenty-five thousand dollars or less, the applicable percentage shall be seventy-five percent.
(B) If such household gross income is greater than twenty-five thousand dollars but not greater than thirty thousand dollars, the applicable percentage shall be seventy-five percent multiplied by one minus a fraction, the numerator of which is such household gross income less twenty-five thousand dollars and the denominator of which is five thousand dollars.
(C) If such household gross income is greater than thirty thousand dollars, the applicable percentage shall be zero.
(2) The credit under this subdivision shall be allowed against the taxes imposed by this chapter reduced by the credits permitted by this chapter. If the credit exceeds the tax as so reduced, the taxpayer may receive, and the state comptroller, subject to the certificate of the state commissioner of taxation and finance, shall pay as an overpayment, without interest, the amount of such excess, provided, however, in the case of a taxpayer who is a part-year resident of New York city any such overpayment under this paragraph shall be limited to the amount of such excess multiplied by a fraction, the numerator of which is federal adjusted gross income for the period of residence, computed as if the taxable year for federal income tax purposes were limited to the period of residence, and the denominator of which is federal adjusted gross income for the taxable year.
(3) In the case of a husband and wife who filed a joint federal return, but who are required to determine their New York city taxes separately, the credit allowed pursuant to this subdivision may only be applied against the tax imposed on the spouse with the lower taxable income, computed without regard to such credit, provided, however, if the spouse with the lower taxable income is a nonresident of the city, no credit shall be allowed under this subdivision. In the case of a husband and wife who are not required to file a federal return, the credit under this subdivision shall be allowed only if such taxpayers file a joint New York city income tax return.
(f) Credit for general corporation tax paid.
(1) A city resident individual, estate or trust whose city adjusted gross income includes a pro rata share of income, loss and deductions described in paragraph one of subsection (a) of section thirteen hundred sixty-six of the internal revenue code, from one or more New York S corporations as defined in subdivision one-A of section two hundred eight of the tax law, or from one or more QSSSs as defined in subdivision one-B of section two hundred eight of the tax law, that are exempt QSSSs by reason of clause (A) of subparagraph one of paragraph (k) of subdivision nine of section two hundred eight of the tax law, on which a tax is imposed by subchapter two of chapter six of this title, shall be allowed a credit as provided in paragraph two of this subdivision against the tax otherwise due under sections 11-1701, 11-1703, 11-1704 and 11-1704.1 of this chapter.
(2) (A) Subject to the limitations set forth in subparagraphs (B) and (C) of this paragraph, the credit allowed to a taxpayer for a taxable year under this subdivision shall be determined as follows:
(i) For taxable years beginning on or after January first, two thousand fourteen and before July first, two thousand nineteen:
(I) If the city taxable income is thirty-five thousand dollars or less, the amount of the credit shall be one hundred percent of the amount determined in paragraph three of this subdivision.
(II) If the city taxable income is greater than thirty-five thousand dollars but less than one hundred thousand dollars, the amount of the credit shall be a percentage of the amount determined in paragraph three of this subdivision, such percentage to be determined by subtracting from one hundred percent, a percentage determined by subtracting thirty-five thousand dollars from city taxable income, dividing the result by sixty-five thousand dollars and multiplying by one hundred percent.
(III) If the city taxable income is one hundred thousand dollars or greater, no credit shall be allowed.
(IV) Provided further that for any taxable year of a taxpayer for which this credit is effective that encompasses days occurring after June thirtieth, two thousand nineteen, the amount of the credit determined in item (I) or (II) of this clause shall be multiplied by a fraction, the numerator of which is the number of days in the taxpayer's taxable year occurring on or before June thirtieth, two thousand nineteen, and the denominator of which is the number of days in the taxpayer's taxable year.
(B) Notwithstanding anything to the contrary in subparagraph (A) of this paragraph, the credit allowed to a taxpayer for a taxable year under this subdivision shall not exceed the sum of the taxes that would otherwise be imposed by sections 11-1701, 11-1703, 11-1704 and 11-1704.1 of this chapter on such taxpayer for such taxable year after the allowance of any other credits allowed by subdivisions (a) and (b) of this section, and subdivision (c) of this section, as added by chapter four hundred eighty-one of the laws of nineteen hundred ninety-seven and subsequently amended, and section 11-1721 of this chapter.
(C) Notwithstanding anything to the contrary in subparagraph (A) of this paragraph, no credit shall be allowed for any amount of tax imposed, or credit allowed, by subchapter two of chapter six of this title on, or to, a combined group of corporations including a New York S corporation or an exempt QSSS, except where the combined group consists exclusively of one or more New York S corporations and one or more exempt QSSSs of such corporations as described in paragraph one of this subdivision, provided that each of the New York S corporations included in the group is wholly owned by the same interests and in the same proportions as each other New York S corporation included in the group.
(3) Subject to the provisions of subparagraph (B) of this paragraph and subparagraph (C) of paragraph two of this subdivision, the amount determined in this paragraph is the sum of the taxpayer's pro rata share of the amounts determined in subparagraph (A) of this paragraph for each New York S corporation, or exempt QSSS, described in paragraph one of this subsection, a pro rata share of whose income, loss and deductions described in paragraph one of subsection (a) of section thirteen hundred sixty-six of the internal revenue code, is included in the taxpayer's city adjusted gross income.
(A) The amount determined in this subparagraph is the sum of:
(i) the taxes imposed by subchapter two of chapter six of this title on such corporation, or a combined group including such corporation, for its taxable year ending within or with the taxable year of the taxpayer and paid by such corporation, or combined group; and
(ii) the amount of any credit or credits taken by such corporation, or a combined group including such corporation, under subdivision eighteen of section 11-604 of this title for its taxable year ending within or with the taxable year of the taxpayer.
(B) For purposes of this subdivision, the taxpayer's pro rata share of the amount in subparagraph (A) of this paragraph for the taxable year shall be the amount determined with respect to the taxpayer:
(i) by assigning an equal portion of the amount in subparagraph (A) of this paragraph to each day of the corporation's taxable year on which the corporation has shares outstanding,
(ii) then by dividing that portion pro rata among the shares outstanding on that day; provided, however,
(iii) if the taxable year of such corporation for purposes of chapter six of this title is different from its New York S year or S short year as defined in subdivision one-A of section two hundred eight of the tax law, or subsection (f) of section fourteen hundred fifty of the tax law, only those portions that are assigned to days of the taxable year that are also days of the New York S year or S short year shall be taken into account in determining the shareholder's pro rata share of the amount determined in subparagraph (A) of this paragraph.
(g) Credit for city pass-through entity tax.
(1) A taxpayer who is a partner or member of an electing city partnership and a taxpayer shareholder of an electing city resident S corporation subject to tax under article twenty-four-B of the tax law shall be entitled to a credit against the tax imposed by such article. For purposes of this subdivision, the terms "electing city partnership," "electing city resident S corporation," "city pass-through entity tax," and "direct share of city pass-through entity tax" shall have the same meanings as used in article twenty-four-B of the tax law.
(2) The amount of the credit shall be equal to the partner's, member's or shareholder's direct share of the city pass-through entity tax.
(3) If a taxpayer is a partner, member or shareholder in more than one electing city partnership and/or electing city resident S corporation that is subject to tax pursuant to article twenty-four-B of the tax law, the amount of the credit of such taxpayer shall be equal to the sum of the amounts of such credits calculated pursuant to paragraph two of this subdivision with regard to each entity in which such taxpayer has a direct ownership interest.
(4) If the amount of the credit allowable pursuant to this subdivision for any taxable year exceeds the tax due for such year pursuant to article twenty-four-B of the tax law, the excess amount shall be treated as an overpayment, to be credited or refunded, without interest.
(5) Limitation on credit. No credit shall be allowed to a taxpayer under this subdivision unless the electing city partnership or electing city resident S corporation provided sufficient information to identify such taxpayer on its city pass-through entity tax return as required under paragraph two of subsection (c) of section eight hundred seventy-two of the tax law for an electing city partnership or paragraph two of subsection (d) of section eight hundred seventy-two of the tax law for an electing city resident S corporation. The credit allowed to a taxpayer under this subdivision shall not exceed the direct share of city pass-through entity tax reported by such electing city partnership or electing city resident S corporation attributable to such taxpayer on such electing city partnership's or such electing city resident S corporation's return filed pursuant to section eight hundred seventy-two of the tax law.
(Am. 2015 N.Y. Laws Ch. 20, 6/26/2015, eff. 6/26/2015; Am. 2016 N.Y. Laws Ch. 60, 4/13/2016, eff. 4/13/2016; Am. 2020 N.Y. Laws Ch. 59, 4/3/2020, eff. 4/3/2020; Am. 2022 N.Y. Laws Ch. 59, 4/9/2022, eff. 4/9/2022)
Editor's note: For related unconsolidated provisions, see Appendix A at L.L. 2005/002.