(a-1) For a taxpayer that is an eligible farmer, as defined in
subdivision eleven of this section, the percentage to be used to compute
the credit allowed under this subdivision shall be twenty percent for
property described in subparagraph (i) of paragraph (b) of this
subdivision that is principally used by the taxpayer in the production
of goods by farming, agriculture, horticulture, floriculture or
viticulture.
(b) (i) A credit shall be allowed under this subdivision with respect
to tangible personal property and other tangible property, including
buildings and structural components of buildings, which are: depreciable
pursuant to section one hundred sixty-seven of the internal revenue
code, have a useful life of four years or more, are acquired by purchase
as defined in section one hundred seventy-nine (d) of the internal
revenue code, have a situs in this state and are (A) principally used by
the taxpayer in the production of goods by manufacturing, processing,
assembling, refining, mining, extracting, farming, agriculture,
horticulture, floriculture, viticulture or commercial fishing, (B)
industrial waste treatment facilities or air pollution control
facilities, used in the taxpayer's trade or business, (C) research and
development property, or (D) principally used in the ordinary course of
the taxpayer's trade or business as a broker or dealer in connection
with the purchase or sale (which shall include but not be limited to the
issuance, entering into, assumption, offset, assignment, termination, or
transfer) of stocks, bonds or other securities as defined in section
four hundred seventy-five (c)(2) of the Internal Revenue Code, or of
commodities as defined in section four hundred seventy-five (e) of the
Internal Revenue Code, (E) principally used in the ordinary course of
the taxpayer's trade or business of providing investment advisory
services for a regulated investment company as defined in section eight
hundred fifty-one of the Internal Revenue Code, or lending, loan
arrangement or loan origination services to customers in connection with
the purchase or sale (which shall include but not be limited to the
issuance, entering into, assumption, offset, assignment, termination, or
transfer) of securities as defined in section four hundred seventy-five
(c)(2) of the Internal Revenue Code, (F) principally used in the
ordinary course of the taxpayer's business as an exchange registered as
a national securities exchange within the meaning of sections 3(a)(1)
and 6(a) of the Securities Exchange Act of 1934 or a board of trade as
defined in subparagraph one of paragraph (a) of section fourteen hundred
ten of the not-for-profit corporation law or as an entity that is wholly
owned by one or more such national securities exchanges or boards of
trade and that provides automation or technical services thereto, or (G)
principally used as a qualified film production facility including
qualified film production facilities having a situs in an empire zone
designated as such pursuant to article eighteen-B of the general
municipal law, where the taxpayer is providing three or more services to
any qualified film production company using the facility, including such
services as a studio lighting grid, lighting and grip equipment,
multi-line phone service, broadband information technology access,
industrial scale electrical capacity, food services, security services,
and heating, ventilation and air conditioning. For purposes of clauses
(D), (E) and (F) of this subparagraph, property purchased by a taxpayer
affiliated with a regulated broker, dealer, registered investment
advisor, national securities exchange or board of trade, is allowed a
credit under this subdivision if the property is used by its affiliated
regulated broker, dealer, registered investment advisor, national
securities exchange or board of trade in accordance with this
subdivision. For purposes of determining if the property is principally
used in qualifying uses, the uses by the taxpayer described in clauses
(D) and (E) of this subparagraph may be aggregated. In addition, the
uses by the taxpayer, its affiliated regulated broker, dealer and
registered investment advisor under either or both of those clauses may
be aggregated. Provided, however, a taxpayer shall not be allowed the
credit provided by clauses (D), (E) and (F) of this subparagraph unless
the property is first placed in service before October first, two
thousand fifteen and (i) eighty percent or more of the employees
performing the administrative and support functions resulting from or
related to the qualifying uses of such equipment are located in this
state or (ii) the average number of employees that perform the
administrative and support functions resulting from or related to the
qualifying uses of such equipment and are located in this state during
the taxable year for which the credit is claimed is equal to or greater
than ninety-five percent of the average number of employees that perform
these functions and are located in this state during the thirty-six
months immediately preceding the year for which the credit is claimed,
or (iii) the number of employees located in this state during the
taxable year for which the credit is claimed is equal to or greater than
ninety percent of the number of employees located in this state on
December thirty-first, nineteen hundred ninety-eight or, if the taxpayer
was not a calendar year taxpayer in nineteen hundred ninety-eight, the
last day of its first taxable year ending after December thirty-first,
nineteen hundred ninety-eight. If the taxpayer becomes subject to tax in
this state after the taxable year beginning in nineteen hundred
ninety-eight, then the taxpayer is not required to satisfy the
employment test provided in the preceding sentence of this subparagraph
for its first taxable year. For purposes of clause (iii) of this
subparagraph the employment test will be based on the number of
employees located in this state on the last day of the first taxable
year the taxpayer is subject to tax in this state. If the uses of the
property must be aggregated to determine whether the property is
principally used in qualifying uses, then either each affiliate using
the property must satisfy this employment test or this employment test
must be satisfied through the aggregation of the employees of the
taxpayer, its affiliated regulated broker, dealer, and registered
investment adviser using the property. For purposes of clause (A) of
this subparagraph, tangible personal property and other tangible
property shall not include property principally used by the taxpayer in
the production or distribution of electricity, natural gas after
extraction from wells, steam, or water delivered through pipes and
mains.
(ii) For purposes of this paragraph, the following definitions shall
apply--
(A) Manufacturing shall mean the process of working raw materials into
wares suitable for use or which gives new shapes, new quality or new
combinations to matter which already has gone through some artificial
process by the use of machinery, tools, appliances and other similar
equipment. Property used in the production of goods shall include
machinery, equipment or other tangible property which is principally
used in the repair and service of other machinery, equipment or other
tangible property used principally in the production of goods and shall
include all facilities used in the production operation, including
storage of material to be used in production and of the products that
are produced.
(B) Research and development property shall mean property which is
used for purposes of research and development in the experimental or
laboratory sense. Such purposes shall not be deemed to include the
ordinary testing or inspection of materials or products for quality
control, efficiency surveys, management studies, consumer surveys,
advertising, promotions, or research in connection with literary,
historical or similar projects.
(C) Industrial waste treatment facilities shall mean property
constituting facilities for the treatment, neutralization or
stabilization of industrial waste and other wastes (as the terms
"industrial waste" and "other wastes" are defined in section 17-0105 of
the environmental conservation law) from a point immediately preceding
the point of such treatment, neutralization or stabilization to the
point of disposal, including the necessary pumping and transmitting
facilities, but excluding such facilities installed for the primary
purpose of salvaging materials which are usable in the manufacturing
process or are marketable.
(D) Air pollution control facilities shall mean property constituting
facilities which remove, reduce, or render less noxious air contaminants
emitted from an air contamination source (as the terms "air contaminant"
and "air contamination source" are defined in section 19-0107 of the
environmental conservation law) from a point immediately preceding the
point of such removal, reduction or rendering to the point of discharge
of air, meeting emission standards as established by the department of
environmental conservation, but excluding such facilities installed for
the primary purpose of salvaging materials which are usable in the
manufacturing process or are marketable and excluding those facilities
which rely for their efficacy on dilution, dispersion or assimilation of
air contaminants in the ambient air after emission. Such term shall
further include flue gas desulfurization equipment and attendant sludge
disposal facilities, fluidized bed boilers, precombustion coal cleaning
facilities or other facilities that conform with this subdivision and
which comply with the provisions of the state acid deposition control
act set forth in title nine of article nineteen of the environmental
conservation law.
(E) The terms "qualified film production facility" and "qualified film
production company" shall have the same meaning as in section
twenty-four of this chapter.
(iii) However, such credit shall be allowed with respect to industrial
waste treatment facilities and air pollution control facilities only on
condition that such facilities have been certified by the state
commissioner of environmental conservation or his designated
representative, pursuant to subdivision one of section 17-0707 or
subdivision one of section 19-0309 of the environmental conservation
law, as complying with applicable provisions of the environmental
conservation law, the public health law, the state sanitary code and
codes, rules, regulations, permits or orders issued pursuant thereto.
(c) A taxpayer shall not be allowed a credit under this subdivision
with respect to tangible personal property and other tangible property,
including buildings and structural components of buildings, which it
leases to any other person or corporation except where a taxpayer leases
property to an affiliated regulated broker, dealer, registered
investment adviser, national securities exchange or board of trade (or
other entity described in clause (F) of subparagraph (i) of paragraph
(b) of this subdivision) that uses such property in accordance with
clause (D), (E) or (F) of subparagraph (i) of paragraph (b) of this
subdivision. For purposes of the preceding sentence, any contract or
agreement to lease or rent or for a license to use such property shall
be considered a lease. Provided, however, in determining whether a
taxpayer shall be allowed a credit under this subdivision with respect
to such property, any election made with respect to such property
pursuant to the provisions of paragraph eight of subsection (f) of
section one hundred sixty-eight of the internal revenue code, as such
paragraph was in effect for agreements entered into prior to January
first, nineteen hundred eighty-four, shall be disregarded. For purposes
of this paragraph, the use of a qualified film production facility by a
qualified film production company shall not be considered a lease of
such facility to such company.
(d) Except as otherwise provided in this paragraph, the credit allowed
under this subdivision for any taxable year shall not reduce the tax due
for such year to less than the fixed dollar minimum amount prescribed in
paragraph (d) of subdivision one of section two hundred ten of this
article. However, if the amount of credit allowable under this
subdivision for any taxable year reduces the tax to such amount or if
the taxpayer otherwise pays tax based on the fixed dollar minimum
amount, any amount of credit allowed for a taxable year commencing prior
to January first, nineteen hundred eighty-seven and not deductible in
such taxable year may be carried over to the following year or years and
may be deducted from the taxpayer's tax for such year or years but in no
event shall such credit be carried over to taxable years commencing on
or after January first, two thousand two, and any amount of credit
allowed for a taxable year commencing on or after January first,
nineteen hundred eighty-seven and not deductible in such year may be
carried over to the fifteen taxable years next following such taxable
year and may be deducted from the taxpayer's tax for such year or years.
In lieu of such carryover, (i) any such taxpayer which qualifies as a
new business under paragraph (f) of this subdivision may elect to treat
the amount of such carryover as an overpayment of tax to be credited or
refunded in accordance with the provisions of section ten hundred
eighty-six of this chapter, and (ii) any such taxpayer that is an
eligible farmer, as defined in subdivision eleven of this section, may
for taxable years beginning before January first, two thousand
twenty-eight, elect to treat the amount of such carryover as an
overpayment of tax to be credited or refunded in accordance with the
provisions of section one thousand eighty-six of this chapter, provided,
however, the provisions of subsection (c) of section ten hundred
eighty-eight of this chapter notwithstanding, no interest shall be paid
thereon.
(e) (1) With respect to property which is depreciable pursuant to
section one hundred sixty-seven of the internal revenue code but is not
subject to the provisions of section one hundred sixty-eight of such
code and which is disposed of or ceases to be in qualified use prior to
the end of the taxable year in which the credit is to be taken, the
amount of the credit shall be that portion of the credit provided for in
this subdivision which represents the ratio which the months of
qualified use bear to the months of useful life. If property on which
credit has been taken is disposed of or ceases to be in qualified use
prior to the end of its useful life, the difference between the credit
taken and the credit allowed for actual use must be added back in the
year of disposition. Provided, however, if such property is disposed of
or ceases to be in qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not be necessary to add
back the credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to the months
of useful life. For purposes of this subparagraph, useful life of
property shall be the same as the taxpayer uses for depreciation
purposes when computing his federal income tax liability.
(2) Except with respect to that property to which subparagraph four of
this paragraph applies, with respect to three-year property, as defined
in subsection (e) of section one hundred sixty-eight of the internal
revenue code, which is disposed of or ceases to be in qualified use
prior to the end of the taxable year in which the credit is to be taken,
the amount of the credit shall be that portion of the credit provided
for in this subdivision which represents the ratio which the months of
qualified use bear to thirty-six. If property on which credit has been
taken is disposed of or ceases to be in qualified use prior to the end
of thirty-six months, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. The amount of credit allowed for actual use shall be
determined by multiplying the original credit by the ratio which the
months of qualified use bear to thirty-six.
(3) Except with respect to that property to which subparagraph four of
this paragraph applies, with respect to property subject to the
provisions of section one hundred sixty-eight of the internal revenue
code, other than three-year property as defined in subsection (e) of
such section one hundred sixty-eight which is disposed of or ceases to
be in qualified use prior to the end of the taxable year in which the
credit is to be taken, the amount of the credit shall be that portion of
the credit provided for in this subdivision which represents the ratio
which the months of qualified use bear to sixty. If property on which
credit has been taken is disposed of or ceases to be in qualified use
prior to the end of sixty months, the difference between the credit
taken and the credit allowed for actual use must be added back in the
year of disposition. The amount of credit allowed for actual use shall
be determined by multiplying the original credit by the ratio which the
months of qualified use bear to sixty.
(4) With respect to any property to which section one hundred
sixty-eight of the internal revenue code applies, which is a building or
a structural component of a building and which is disposed of or ceases
to be in qualified use prior to the end of the taxable year in which the
credit is to be taken, the amount of the credit shall be that portion of
the credit provided for in this subdivision which represents the ratio
which the months of qualified use bear to the total number of months
over which the taxpayer chooses to deduct the property under the
internal revenue code. If property on which credit has been taken is
disposed of or ceases to be in qualified use prior to the end of the
period over which the taxpayer chooses to deduct the property under the
internal revenue code, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. Provided, however, if such property is disposed of or
ceases to be in qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not be necessary to add
back the credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to the total
number of months over which the taxpayer chooses to deduct the property
under the internal revenue code.
(5) For purposes of this paragraph, property (i) which is described in
subparagraph two, three or four of this paragraph, and (ii) which is
subject to subparagraph eleven of paragraph (a) of subdivision nine and
subparagraph ten of paragraph (b) of subdivision nine of section two
hundred eight of this chapter, shall be treated as property which is
depreciable pursuant to section one hundred sixty-seven of the internal
revenue code but is not subject to section one hundred sixty-eight of
such code.
(6) For purposes of this paragraph, where a credit is allowed with
respect to an air pollution control facility on the basis of a
certificate of compliance issued pursuant to the environmental
conservation law and the certificate is revoked pursuant to subdivision
three of section 19-0309 of the environmental conservation law, such
revocation shall constitute a disposal or cessation of qualified use,
unless such facility is described in clause (A) or (C) of subparagraph
(ii) of paragraph (b) of this subdivision. Also for purposes of this
subparagraph, the use of an air pollution control facility or an
industrial waste treatment facility for the primary purpose of salvaging
materials which are usable in the manufacturing process or are
marketable shall constitute a cessation of qualified use, unless such
facility is described in clause (A) or (C) of subparagraph (ii) of
paragraph (b) of this subdivision.
(7) For taxable years commencing on or after January first, nineteen
hundred eighty-seven, the amount required to be added back pursuant to
this paragraph shall be augmented by an amount equal to the product of
such amount and the underpayment rate of interest (without regard to
compounding), set by the commissioner of taxation and finance pursuant
to subsection (e) of section one thousand ninety-six, in effect on the
last day of the taxable year.
(8) If, as of the close of the taxable year, there is a net increase
with respect to the taxpayer in the amount of nonqualified nonrecourse
financing (within the meaning of section 46(c) (8) of the internal
revenue code) with respect to any property with respect to which the
credit under this subdivision was limited based on attributable
nonqualified nonrecourse financing, then an amount equal to the decrease
in such credit which would have resulted from reducing, by the amount of
such net increase, the cost or other basis taken into account with
respect to such property must be added back in such taxable year. The
amount of nonqualified nonrecourse financing shall not be treated as
increased by reason of a transfer of (or agreement to transfer) any
evidence of an indebtedness if such transfer occurs (or such agreement
is entered into) more than one year after the date such indebtedness was
incurred.
(f) For purposes of paragraph (d) of this subdivision, a new business
shall include any corporation, except a corporation which:
(1) over fifty percent of the number of shares of stock entitling the
holders thereof to vote for the election of directors or trustees is
owned or controlled, either directly or indirectly, by a taxpayer
subject to tax under this article; section one hundred eighty-three, one
hundred eighty-four or one hundred eighty-five of article nine; or
article thirty-three of this chapter; or
(2) is substantially similar in operation and in ownership to a
business entity (or entities) taxable, or previously taxable, under this
article; section one hundred eighty-three, one hundred eighty-four,
former section one hundred eighty-five or former section one hundred
eighty-six of article nine; article thirty-two of this chapter as such
article was in effect on December thirty-first, two thousand fourteen;
article thirty-three of this chapter; article twenty-three of this
chapter or which would have been subject to tax under such article
twenty-three (as such article was in effect on January first, nineteen
hundred eighty) or the income (or losses) of which is (or was)
includable under article twenty-two of this chapter whereby the intent
and purpose of this paragraph and paragraph (d) of this subdivision with
respect to refunding of credit to new business would be evaded; or
(3) has been subject to tax under this article or former article
thirty-two of this chapter for more than five taxable years (excluding
short taxable years).
2. Employment Incentive Credit (EIC). (a)(i) Application of credit.
Where a taxpayer is allowed a credit under subdivision one of this
section, other than at the optional rate applicable to research and
development property, the taxpayer shall be allowed a credit for each of
the two years next succeeding the taxable year for which the credit
under such subdivision one is allowed with respect to such property,
whether or not deductible in such taxable year or in subsequent taxable
years pursuant to paragraph (d) of such subdivision one. Provided,
however, that the credit allowable under this subdivision for any
taxable year shall be allowed only if the average number of employees
during such taxable year is at least one hundred one percent of the
average number of employees during the employment base year. The
employment base year shall be the taxable year immediately preceding the
taxable year for which the credit under such subdivision one is allowed
except that if the taxpayer was not subject to tax and did not have a
taxable year immediately preceding the taxable year for which the credit
under such subdivision one of this section is allowed, the employment
base year shall be the taxable year in which the credit under such
subdivision one is allowed.
(ii) Amount of credit. The amount of the credit allowed under this
subdivision shall be as set forth in the following table:
Average number of employees during the Credit allowed under this
taxable year expressed as a percentage subdivision expressed as a
of average employees in employment percentage of the applicable
base years investment credit basis
Less than 102% 1.5%
At least 102% and less than 103% 2%
At least 103% 2.5%
(b) Average number of employees. The average number of employees in a
taxable year shall be computed by ascertaining the number of employees
within the state, except general executive officers, employed by the
taxpayer on the thirty-first day of March, the thirtieth day of June,
the thirtieth day of September and the thirty-first day of December in
the taxable year, by adding together the number of employees ascertained
on each of such dates and dividing the sum so obtained by the number of
such above mentioned dates occurring within the taxable year. However,
with respect to the employment base year, there shall be excluded
therefrom any employee with respect to whom a credit provided for under
subdivision six of this section is claimed, for the taxable year, based
on employment within a zone equivalent area designated as such pursuant
to article eighteen-B of the general municipal law.
(c) Carryover. In no event shall the credit herein provided for be
allowed in an amount which will reduce the tax payable to less than the
fixed dollar minimum amount prescribed in paragraph (d) of subdivision
one of section two hundred ten of this article. However, if the amount
of credit allowable under this subdivision for any taxable year reduces
the tax to such amount or if the taxpayer otherwise pays tax based on
the fixed dollar minimum amount, any amount of credit not deductible in
such taxable year may be carried over to the fifteen taxable years
immediately following such taxable year and may be deducted from the
taxpayer's tax for such year or years.
3. Empire zone investment tax credit (EZ-ITC). (a) A taxpayer shall be
allowed a credit, to be computed as herein provided, against the tax
imposed by this article if the taxpayer has been certified pursuant to
article eighteen-B of the general municipal law. The amount of the
credit shall be ten percent of the cost or other basis for federal
income tax purposes of tangible personal property and other tangible
property, including buildings and structural components of buildings,
described in paragraph (b) of this subdivision, which is located within
an empire zone designated as such pursuant to article eighteen-B of such
law, but only if 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. Provided,
however, that in the case of an acquisition, construction,
reconstruction or erection which was commenced during such period and
continued or completed subsequently, such credit shall be ten percent of
the portion of the cost or other basis for federal income tax purposes
attributable to such period, which portion shall be ascertained by
multiplying such cost or basis by a fraction the numerator of which
shall be the expenditures paid or incurred during such period for such
purposes and the denominator of which shall be the total of all
expenditures paid or incurred for such acquisition, construction,
reconstruction or erection.
(b) Qualified property. A credit shall be allowed under this
subdivision with respect to tangible personal property and other
tangible property, including buildings and structural components of
buildings, which
(i) are depreciable pursuant to section one hundred sixty-seven of the
internal revenue code,
(ii) have a useful life of four years or more,
(iii) are acquired by purchase as defined in section one hundred
seventy-nine (d) of the internal revenue code,
(iv) have a situs in an empire zone designated as such pursuant to
article eighteen-B of the general municipal law, and
(v) are (A) principally used by the taxpayer in the production of
goods by manufacturing, processing, assembling, refining, mining,
extracting, farming, agriculture, horticulture, floriculture,
viticulture or commercial fishing,
(B) industrial waste treatment facilities or air pollution control
facilities used in the taxpayer's trade or business,
(C) research and development property,
(D) principally used in the ordinary course of the taxpayer's trade or
business as a broker or dealer in connection with the purchase or sale
(which shall include but not be limited to the issuance, entering into,
assumption, offset, assignment, termination, or transfer) of stocks,
bonds or other securities as defined in section four hundred
seventy-five (c)(2) of the Internal Revenue Code, or of commodities as
defined in section four hundred seventy-five (e) of the Internal Revenue
Code,
(E) principally used in the ordinary course of the taxpayer's trade or
business of providing investment advisory services for a regulated
investment company as defined in section eight hundred fifty-one of the
Internal Revenue Code, or lending, loan arrangement, or loan origination
services to customers in connection with the purchase or sale (which
shall include but not be limited to the issuance, entering into,
assumption, offset, assignment, termination or transfer) of securities
as defined in section four hundred seventy-five (c)(2) of the Internal
Revenue Code,
(E-1) principally used in the ordinary course of the taxpayer's trade
or business of providing investment advisory services or the service of
managing investment portfolios to achieve specific investment objectives
for accounts over one million dollars of accredited investors (as that
term is defined in rule 501 of regulation D of the Securities Act of
1933), if the taxpayer satisfies the following criteria:
(I) the taxpayer is a regulated broker or dealer or an affiliate of a
regulated broker or dealer,
(II) the taxpayer is registered as an investment adviser under section
two hundred three of the Investment Advisers Act of 1940, as amended,
and
(III) at least one client of the taxpayer is a regulated investment
company as defined in section eight hundred fifty-one of the internal
revenue code that has assets of one hundred million dollars, or
(F) principally used in the ordinary course of the taxpayer's business
as an exchange registered as a national securities exchange within the
meaning of sections 3(a)(1) and 6(a) of the Securities Exchange Act of
1934 or a board of trade as defined in subdivision one of paragraph (a)
of section fourteen hundred ten of the not-for-profit corporation law or
as an entity that is wholly owned by one or more such national
securities exchanges or boards or trade and that provides automation or
technical services thereto.
(vi) For purposes of clauses (D), (E), (E-1) and (F) of subparagraph
(v) of this paragraph, property purchased by a taxpayer affiliated with
a regulated broker, dealer, registered investment adviser, national
securities exchange or board of trade is allowed a credit under this
subdivision if the property is used by its affiliated regulated broker,
dealer, registered investment adviser or national securities exchange or
board of trade in accordance with this subdivision. For purposes of
determining if the property is principally used in qualifying uses, the
uses by the taxpayer described in clauses (D), (E) and (E-1) of
subparagraph (v) of this paragraph may be aggregated. In addition, the
uses by the taxpayer, its affiliated regulated broker, dealer and
registered investment adviser under any of those clauses may be
aggregated. Provided, however, a taxpayer shall not be allowed the
credit provided by clauses (D), (E), (E-1) and (F) of subparagraph (v)
of this paragraph unless
(I) eighty percent or more of the employees performing the
administrative and support functions resulting from or related to the
qualifying uses of such equipment are located in this state, or
(II) the average number of employees that perform the administrative
and support functions resulting from or related to the qualifying uses
of such equipment and are located in this state during the taxable year
for which the credit is claimed is equal to or greater than ninety-five
percent of the average number of employees that perform these functions
and are located in this state during the thirty-six months immediately
preceding the year for which the credit is claimed, or
(III) the number of employees located in this state during the taxable
year for which the credit is claimed is equal to or greater than ninety
percent of the number of employees located in this state on December
thirty-first, nineteen hundred ninety-eight or, if the taxpayer was not
a calendar year taxpayer in nineteen hundred ninety-eight, the last day
of its first taxable year ending after December thirty-first, nineteen
hundred ninety-eight. If the taxpayer becomes subject to tax in this
state after the taxable year beginning in nineteen hundred ninety-eight,
then the taxpayer is not required to satisfy the employment test
provided in the preceding sentence of this subparagraph for its first
taxable year.
(vii) For the purposes of clause (III) of subparagraph (vi) of this
paragraph the employment test will be based on the number of employees
located in this state on the last day of the first taxable year the
taxpayer is subject to tax in this state. If the uses of the property
must be aggregated to determine whether the property is principally used
in qualifying uses, then either each affiliate using the property must
satisfy this employment test or this employment test must be satisfied
through the aggregation of the employees of the taxpayer, its affiliated
regulated broker, dealer, and registered investment adviser using the
property.
(viii) For the purpose of this subdivision, the term "goods" shall not
include electricity.
(ix) For purposes of this subdivision, "manufacturing" shall mean the
process of working raw materials into wares suitable for use or which
gives new shapes, new quality or new combinations to matter which
already has gone through some artificial process by the use of
machinery, tools, appliances and other similar equipment. Property used
in the production of goods shall include machinery, equipment or other
tangible property which is principally used in the repair and service of
other machinery, equipment or other tangible property used principally
in the production of goods and shall include all facilities used in the
production operation, including storage of material to be used in
production and of the products that are produced. For purposes of this
subdivision, the terms "research and development property", "industrial
waste treatment facilities", and "air pollution control facilities"
shall have the meanings ascribed thereto by clauses (B), (C) and (D),
respectively, of subparagraph (iv) of paragraph (b) of subdivision one
of this section, and the provisions of subparagraph (v) of such
paragraph (b) shall apply.
(c) Nonqualified property. A taxpayer shall not be allowed a credit
under this subdivision with respect to any tangible personal property
and other tangible property, including buildings and structural
components of buildings, which it leases to any other person or
corporation except where a taxpayer leases property to an affiliated
regulated broker, dealer, registered investment adviser, national
securities exchange or board of trade or other entity described in
clause (F) of subparagraph (v) of paragraph (b) of this subdivision that
uses such property in accordance with clause (D), (E), (E-1) or (F) of
subparagraph (v) of paragraph (b) of this subdivision. For purposes of
the preceding sentence, any contract or agreement to lease or rent or
for a license to use such property shall be considered a lease.
Provided, however, in determining whether a taxpayer shall be allowed a
credit under this subdivision with respect to such property, any
election made with respect to such property pursuant to the provisions
of paragraph eight of subsection (f) of section one hundred sixty-eight
of the internal revenue code, as such paragraph was in effect for
agreements entered into prior to January first, nineteen hundred
eighty-four, shall be disregarded.
(d) Carryover. The credit allowed under this subdivision for any
taxable year shall not reduce the tax due for such year to less than the
fixed dollar minimum amount prescribed in paragraph (d) of subdivision
one of section two hundred ten of this article. Provided, however, that
if the amount of credit allowed under this subdivision for any taxable
year reduces the tax to such amount or if the taxpayer otherwise pays
tax based on the fixed dollar minimum amount, any amount of credit not
deductible in such taxable year may be carried over to the following
year or years and may be deducted from the taxpayer's tax for such year
or years. In lieu of such carryover, any such taxpayer which qualifies
as a new business under paragraph (f) of subdivision one of this section
may elect, on its report for its taxable year with respect to which such
credit is allowed, to treat fifty percent of the amount of such
carryover as an overpayment of tax to be credited or refunded in
accordance with the provisions of section one thousand eighty-six of
this chapter. In addition, any taxpayer which is approved as the owner
of a qualified investment project or a significant capital investment
project pursuant to subdivision (w) of section nine hundred fifty-nine
of the general municipal law, on its report for its taxable year with
respect to which such credit is allowed, in lieu of such carryover, may
elect to treat fifty percent of the amount of such carryover which is
attributable to the credit allowed under this subdivision for property
which is part of such project as an overpayment of tax to be credited or
refunded in accordance with the provisions of section one thousand
eighty-six of this chapter. Provided, however, such owner shall be
allowed such refund for a maximum of ten taxable years with respect to
such qualified investment project and each significant capital
investment project, starting with the first taxable year in which
property comprising such project is placed in service. Provided,
further, however, the provisions of subsection (c) of section one
thousand eighty-eight of this chapter notwithstanding, no interest shall
be paid thereon.
(d-1) Any carryover of a credit from prior taxable years will not be
allowed if an empire zone retention certificate is not issued pursuant
to subdivision (w) of section nine hundred fifty-nine of the general
municipal law to the empire zone enterprise which is the basis of the
credit.
(e) At the option of the taxpayer, the taxpayer may choose to claim
the credit described in paragraph (a) of this subdivision for property
which also qualifies for the credit provided under subdivision one of
this section. A taxpayer shall not be allowed a credit under this
subdivision with respect to any property described in paragraph (a) of
this subdivision if a credit is taken pursuant to subdivision one of
this section.
(f) Recapture. (i) With respect to property which is depreciable
pursuant to section one hundred sixty-seven of the internal revenue code
but is not subject to the provisions of section one hundred sixty-eight
of such code and which is disposed of or ceases to be in qualified use
prior to the end of the taxable year in which the credit is to be taken,
the amount of the credit shall be that portion of the credit provided
for in this subdivision which represents the ratio which the months of
qualified use bear to the months of useful life. If property on which
credit has been taken is disposed of or ceases to be in qualified use
prior to the end of its useful life, the difference between the credit
taken and the credit allowed for actual use must be added back in the
year of disposition. Provided, however, if such property is disposed of
or ceases to be in qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not be necessary to add
back the credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to the months
of useful life. For purposes of this subparagraph, useful life of
property shall be the same as the taxpayer uses for depreciation
purposes when computing his federal income tax liability.
(ii) Except with respect to that property to which subparagraph (iv)
of this paragraph applies, with respect to three-year property, as
defined in subsection (e) of section one hundred sixty-eight of the
internal revenue code, which is disposed of or ceases to be in qualified
use prior to the end of the taxable year in which the credit is to be
taken, the amount of the credit shall be that portion of the credit
provided for in this subdivision which represents the ratio which the
months of qualified use bear to thirty-six. If property on which credit
has been taken is disposed of or ceases to be in qualified use prior to
the end of thirty-six months, the difference between the credit taken
and the credit allowed for actual use must be added back in the year of
disposition. The amount of credit allowed for actual use shall be
determined by multiplying the original credit by the ratio which the
months of qualified use bear to thirty-six.
(iii) Except with respect to that property to which subparagraph (iv)
of this paragraph applies, with respect to property subject to the
provisions of section one hundred sixty-eight of the internal revenue
code other than three-year property as defined in subsection (e) of such
section one hundred sixty-eight which is disposed of or ceases to be in
qualified use prior to the end of the taxable year in which the credit
is to be taken, the amount of the credit shall be that portion of the
credit provided for in this subdivision which represents the ratio which
the months of qualified use bear to sixty. If property on which credit
has been taken is disposed of or ceases to be in qualified use prior to
the end of sixty months, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. The amount of credit allowed for actual use shall be
determined by multiplying the original credit by the ratio which the
months of qualified use bear to sixty.
(iv) With respect to any property to which section one hundred
sixty-eight of the internal revenue code applies, which is a building or
a structural component of a building and which is disposed of or ceases
to be in qualified use prior to the end of the taxable year in which the
credit is to be taken, the amount of the credit shall be that portion of
the credit provided for in this subdivision which represents the ratio
which the months of qualified use bear to the total number of months
over which the taxpayer chooses to deduct the property under the
internal revenue code. If property on which credit has been taken is
disposed of or ceases to be in qualified use prior to the end of the
period over which the taxpayer chooses to deduct the property under the
internal revenue code, the difference between the credit taken and the
credit allowed for actual use must be added back in the year of
disposition. Provided, however, if such property is disposed of or
ceases to be in qualified use after it has been in qualified use for
more than twelve consecutive years, it shall not be necessary to add
back the credit as provided in this subparagraph. The amount of credit
allowed for actual use shall be determined by multiplying the original
credit by the ratio which the months of qualified use bear to the total
number of months over which the taxpayer chooses to deduct the property
under the internal revenue code.
(v) For purposes of this paragraph, disposal or cessation of qualified
use shall not be deemed to have occurred solely by reason of the
termination or expiration of an empire zone's designation as such.
(vi)(A) For purposes of this paragraph, the decertification of a
business enterprise with respect to an empire zone shall constitute a
disposal or cessation of qualified use of the property on which the
credit was taken which is located in the zone to which the
decertification applies, on the effective date of such decertification.
(B) Where a business enterprise has been decertified based on a
finding pursuant to clause one, two, or five of subdivision (a) of
section nine hundred fifty-nine of the general municipal law, the amount
required to be added back by reason of this paragraph shall be (I) the
amount of credit, with respect to the property which is disposed of or
ceases to be in qualified use, which was deducted from the taxpayer's
tax otherwise due under this article for all prior taxable years,
reduced (but not below zero) by (II) the credit allowed for actual use.
For purposes of this subparagraph, the attribution to specific property
of credit amounts deducted from tax shall be established in accordance
with the date of placement in service of such property in the empire
zone.
(C) In no event shall the amount of the credit allowed pursuant to
this subdivision be rendered, solely by reason of clause (A) of this
subparagraph, less than the amount of the credit to which the taxpayer
would otherwise be entitled under subdivision one of this section.
(D) Notwithstanding any other provision of this subdivision, in the
case of a business enterprise which has been decertified, any amount of
credit allowed with respect to the property of such business enterprise
located in the zone to which the decertification applies which is
carried over pursuant to paragraph (d) of this subdivision shall not be
carried over beyond the seventh taxable year next following the taxable
year with respect to which the credit provided for in this subdivision
was allowed.
(vii) For purposes of this paragraph, where a credit is allowed with
respect to an air pollution control facility on the basis of a
certificate of compliance issued pursuant to the environmental
conservation law and the certificate is revoked pursuant to subdivision
three of section 19-0309 of the environmental conservation law, such
revocation shall constitute a disposal or cessation of qualified use,
except with respect to property contained in or comprising such facility
which is described in clause (A), (B), or (C) of subparagraph (v) of
paragraph (b) of this subdivision other than as part of or comprising an
air pollution control facility. Also for purposes of this paragraph, the
use of an air pollution control facility or an industrial waste
treatment facility for the primary purpose of salvaging materials which
are usable in the manufacturing process or are marketable shall
constitute a cessation of qualified use, except with respect to property
contained in or comprising such facility which is described in clause
(A) or (C) of subparagraph (v) of paragraph (b) of this subdivision.
(viii) Except as provided in this subparagraph, this paragraph shall
not apply to a credit allowed by this subdivision to a taxpayer that is
a partner in a partnership in the case of manufacturing property;
provided, at the time such property was placed in service by such
partnership in an empire zone the basis for federal income tax purposes
for such property (or a project that includes such property) equaled or
exceeded three hundred million dollars and such partner owned its
partnership interest for at least three years from the date such
property was placed in service. If such property ceases to be in
qualified use after it is placed in service, this paragraph shall apply
to such partner in the year such property ceases to be in qualifying
use.
(ix) If a taxpayer, which is approved by the commissioner of economic
development as the owner of a qualified investment project or a
significant capital investment project pursuant to subdivision (w) of
section nine hundred fifty-nine of the general municipal law, fails to
(A) create at least the minimum number of jobs at such project as
required by the provisions of subdivision (s) or (t) of section nine
hundred fifty-seven and subdivision (w) of section nine hundred
fifty-nine of the general municipal law or (B) place in service property
comprising such qualified investment project or significant capital
investment project with a basis for federal income tax purposes equaling
or exceeding the applicable minimum required basis as provided in such
subdivision (s) or (t), whichever is relevant, by the last day of the
fifth taxable year following the taxable year in which a credit is first
allowed under this subdivision for the property which comprises such
qualified investment project or such significant capital investment
project, the total amount of the credit allowed under this subdivision
for all taxable years with respect to the property which comprises such
project which has been refunded to such taxpayer shall be added back in
such taxable year.
(g) Notwithstanding the expiration of the empire zones program under
article eighteen-B of the general municipal law, a taxpayer that is
certified as a qualified investment project pursuant to such article
eight-B on the day immediately preceding the day the empire zones
program expired shall continue to be deemed certified under such article
eighteen-B for purposes of this subdivision for the remainder of the
taxable year in which the expiration occurred and for the next
succeeding nine taxable years. In addition, the areas designated as
empire zones in which the taxpayer is certified as a qualified
investment project on the day immediately preceding the day the empire
zones program expired shall continue to be deemed empire zones for
purposes of this subdivision for the remainder of the taxable year in
which the expiration occurred and for the next succeeding nine taxable
years.
(h) Notwithstanding the expiration of the empire zones program under
article eighteen-B of the general municipal law and except as provided
in paragraph (g) of this subdivision, a taxpayer that is certified as an
empire zone business pursuant to such article eighteen-B on the day
immediately preceding the day the empire zone program expired shall
continue to be deemed certified under such article eighteen-B for
purposes of this subdivision until April first, two thousand fourteen.
In addition, the areas designated as empire zones in which the taxpayer
is certified as an empire zone business on the day immediately preceding
the day the empire zones program expired shall continue to be deemed
empire zones for purposes of this subdivisions until April first, two
thousand fourteen.
4. Empire zone employment incentive credit (EZ-EIC). (a) Application
of credit. Where a taxpayer is allowed a credit under subdivision three
of this section, the taxpayer shall be allowed a credit for each of the
three years next succeeding the taxable year for which the credit under
such subdivision three is allowed, with respect to such property,
whether or not deductible in such taxable year or in subsequent taxable
years pursuant to paragraph (d) of such subdivision three, of thirty
percent of the credit allowable under such subdivision three; provided,
however, that the credit allowable under this subdivision for any
taxable year shall only be allowed if the average number of employees
employed by the taxpayer in the empire zone, designated pursuant to
article eighteen-B of the general municipal law, in which such property
is located during such taxable year is at least one hundred one percent
of the average number of employees employed by the taxpayer in such
empire zone, during the taxable year immediately preceding the taxable
year for which the credit under such subdivision three is allowed and
provided, further, that if the taxpayer was not subject to tax and did
not have a taxable year immediately preceding the taxable year for which
the credit under subdivision three of this section is allowed, the
credit allowable under this subdivision for any taxable year shall be
allowed if the average number of employees employed in such empire zone
in such taxable year is at least one hundred one percent of the average
number of such employees during the taxable year in which the credit
under such subdivision three is allowed.
(b) Average number of employees. The average number of employees
employed in an empire zone in a taxable year shall be computed by
ascertaining the number of such employees within such zone except
general executive officers, employed by the taxpayer on the thirty-first
day of March, the thirtieth day of June, the thirtieth day of September
and the thirty-first day of December in the taxable year, by adding
together the number of employees ascertained on each of such dates and
dividing the sum so obtained by the number of such above-mentioned dates
occurring within the taxable year.
(c) Carryover. In no event shall the credit herein provided for be
allowed in an amount which will reduce the tax payable to less than the
fixed dollar minimum amount prescribed in paragraph (d) of subdivision
one of section two hundred ten of this article. Provided, however, that
if the amount of credit allowable under this subdivision for any taxable
year reduces the tax to such amount or if the taxpayer otherwise pays
tax based on the fixed dollar minimum amount, any amount of credit not
deductible in such taxable year may be carried over to the following
year or years and may be deducted from the taxpayer's tax for such year
or years. In lieu of such carryover, any such taxpayer, which is
approved as the owner of a qualified investment project or a significant
capital investment project pursuant to subdivision (v) of section nine
hundred fifty-nine of the general municipal law, may elect, on its
report for its taxable year with respect to which such credit is
allowed, to treat fifty percent of the amount of such carryover as an
overpayment of tax to be credited or refunded in accordance with the
provisions of section one thousand eighty-six of this chapter. Provided,
however, in the case of such owner of a qualified investment project or
a significant capital investment project, only fifty percent of the
amount of such carryover which is attributable to the credit allowed
under this subdivision with respect to property which is part of such
project shall be allowed to be credited or refunded and such owner shall
be allowed such credit or refund only for those taxable years in which
such owner would be allowed a credit or refund of the empire zone
investment tax credit pursuant to paragraph (d) of subdivision three of
this section. Provided, further, however, the provisions of subsection
(c) of section one thousand eighty-eight of this chapter
notwithstanding, no interest shall be paid thereon.
(c-1) Any carryover of a credit from prior taxable years will not be
allowed if an empire zone retention certificate is not issued pursuant
to subdivision (w) of section nine hundred fifty-nine of the general
municipal law to the empire zone enterprise which is the basis of the
credit.
(d) Notwithstanding the expiration of the empire zones program under
article eighteen-B of the general municipal law, a taxpayer that is
certified as a qualified investment project pursuant to such article
eighteen-B on the day immediately preceding the day the empire zones
program expired shall continue to be deemed certified under such article
eighteen-B for purposes of this subdivision for the remainder of the
taxable year in which the expiration occurred and for the next
succeeding nine taxable years. In addition, the areas designated as
empire zones in which the taxpayer is certified as a qualified
investment project on the day immediately preceding the day the empire
zones program expired shall continue to be deemed empire zones for
purposes of this subdivision for the remainder of the taxable year in
which the expiration occurred and for the next succeeding nine taxable
years.
(e) Notwithstanding the expiration of the empire zones program under
article eighteen-B of the general municipal law and except as provided
in paragraph (d) of this subdivision, a taxpayer that is certified as an
empire zone business pursuant to such article eighteen-B on the day
immediately preceding the day the empire zones program expired shall
continue to be deemed in the empire zone in which the taxpayer was
certified as an empire zone business on the day immediately preceding
the day the empire zones program expired for each of the three years
next succeeding the taxable year for which the credit under subdivision
three of this section is allowed.
5. QEZE credit for real property taxes. (a) Allowance of credit. A
taxpayer which is a qualified empire zone enterprise shall be allowed a
credit for eligible real property taxes, to be computed as provided in
section fifteen of this chapter, against the tax imposed by this
article.
(b) Application of credit. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for such year to less
than the fixed dollar minimum amount prescribed in paragraph (d) of
subdivision one of section two hundred ten of this article. However, if
the amount of credit allowed under this subdivision for any taxable year
reduces the tax to such amount or if the taxpayer otherwise pays tax
based on the fixed dollar minimum amount, any amount of credit thus not
deductible in such taxable year shall be treated as an overpayment of
tax to be credited or refunded in accordance with the provisions of
section one thousand eighty-six of this chapter. Provided, however, the
provisions of subsection (c) of section one thousand eighty-eight of
this chapter notwithstanding, no interest shall be paid thereon.
6. QEZE tax reduction credit. (a) Allowance of credit. A taxpayer
which is a qualified empire zone enterprise shall be allowed a QEZE tax
reduction credit, to be computed as provided in section sixteen of this
chapter, against the tax imposed by this article.
(b) Application of credit. The credit allowed under this subdivision
for any taxable year shall not reduce the tax due for such year to less
than the fixed dollar minimum amount prescribed in paragraph (d) of
subdivision one of section two hundred ten of this article. Provided,
however, this paragraph shall not apply to a taxpayer with a zone
allocation factor of one hundred percent.
7. Qualified emerging technology company employment credit. (a)
Application of credit. A taxpayer shall be allowed a credit, to be
computed as hereinafter provided, against the tax imposed by this
article, provided:
(i) the taxpayer is a qualified emerging technology company pursuant
to the provisions of section thirty-one hundred two-e of the public
authorities law; and
(ii) the average number of individuals employed full time by the
taxpayer in New York state during the taxable year is at least one
hundred one percent of the taxpayer's base year employment. For the
purposes of this subdivision, "base year employment" means the average
number of individuals employed full-time by the taxpayer in the state
during the three taxable years immediately preceding the first taxable
year in which the credit is claimed. Where the taxpayer provided
full-time employment within the state during only a portion of such
three-year period, then the first effective date for the company to take
advantage of this credit shall be the next year following the first full
taxable year that the company had full-time employment in New York
state. For the purposes of this paragraph the term "three years" shall
be deemed to refer instead to the prior year's full-time employment
after the first year and the average of the first eight quarters of
employment after the first two taxable years in New York state.
(b) Credit limitation. The credit shall be allowed only in the first
taxable year in which the credit is claimed and in each of the next two
taxable years, provided that the conditions of paragraph (a) of this
subdivision are satisfied in each taxable year.
(c) Average number of individuals employed full-time. For the purposes
of this subdivision, average number of individuals employed full-time
shall be computed by adding the number of such individuals employed by
the taxpayer at the end of each quarter during each taxable year or
other applicable period and dividing the sum so obtained by the number
of such quarters occurring within such taxable year or other applicable
period; provided however, except that in computing base year employment,
there shall be excluded therefrom any employee with respect to whom a
credit provided for under subdivision nineteen of section two hundred
ten of this article, as such subdivision was in effect on December
thirty-first, two thousand fourteen, was claimed for the taxable year.
(d) Amount of credit. The amount of the credit shall equal the product
of one thousand dollars times the number of individuals employed
full-time by the taxpayer in the taxable year that are in excess of one
hundred percent of the taxpayer's base year employment.
(e) Carryover. The credit allowed under this subdivision for any
taxable year shall not reduce the tax due for such year to less than the
fixed dollar minimum amount prescribed in paragraph (d) of subdivision
one of section two hundred ten of this article. However, if the amount
of credit allowed under this subdivision for any taxable year reduces
the tax to such amount or if the taxpayer otherwise pays tax based on
the fixed dollar minimum amount, any amount of credit thus not
deductible in such taxable year shall be treated as an overpayment of
tax to be credited or refunded in accordance with the provisions of
section one thousand eighty-six of this chapter. Provided, however, the
provisions of subsection (c) of section one thousand eighty-eight of
this chapter notwithstanding, no interest shall be paid thereon.
8. Qualified emerging technology company capital tax credit. (a)
Amount of credit. A taxpayer shall be allowed a credit against the tax
imposed by this article. The amount of the credit shall be equal to one
of the following percentages, per each qualified investment in a
qualified emerging technology company as defined in section thirty-one
hundred two-e of the public authorities law, made during the taxable
year, and certified by the commissioner, either:
(1) ten percent of qualified investments in qualified emerging
technology companies, except for investments made by or on behalf of an
owner of the business, including, but not limited to, a stockholder,
partner or sole proprietor, or any related person, as defined in
subparagraph (C) of paragraph three of subsection (b) of section four
hundred sixty-five of the internal revenue code, and provided, however,
that the taxpayer certifies to the commissioner that the qualified
investment will not be sold, transferred, traded, or disposed of during
the four years following the year in which the credit is first claimed;
or
(2) twenty percent of qualified investments in qualified emerging
technology companies, except for investments made by or on behalf of an
owner of the business, including, but not limited to, a stockholder,
partner or sole proprietor, or any related person, as defined in
subparagraph (C) of paragraph three of subsection (b) of section four
hundred sixty-five of the internal revenue code, and provided, however,
that the taxpayer certifies to the commissioner that the qualified
investment will not be sold, transferred, traded, or disposed of during
the nine years following the year in which the credit is first claimed.
(b) Qualified investment. "Qualified investment" means the
contribution of property to a corporation in exchange for original issue
capital stock or other ownership interest, the contribution of property
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 such
entity. The total amount of credit allowable to a taxpayer under this
provision for all years, taken in the aggregate, shall not exceed one
hundred fifty thousand dollars in the case of investments made pursuant
to subparagraph one of paragraph (a) of this subdivision and shall not
exceed three hundred thousand dollars in the case of investments made
pursuant to subparagraph two of paragraph (a) of this subdivision.
(c) Carryover. In no event shall the credit and carryover of such
credit allowed under this subdivision for any taxable year, in the
aggregate, reduce the tax due for such year to less than the fixed
dollar minimum amount prescribed in paragraph (d) of subdivision one of
section two hundred ten of this chapter. However, if the amount of
credit or carryovers of such credit, or both, allowed under this
subdivision for any taxable year reduces the tax to such amount or if
the taxpayer otherwise pays tax based on the fixed dollar minimum
amount, or if any part of the credit or carryovers of such credit may
not be deducted from the tax otherwise due by reason of the final
sentence of this paragraph, any amount of credit or carryovers of such
credit thus not deductible in such taxable year may be carried over to
the following year or years and may be deducted from the tax for such
year or years. In addition, the amount of such credit, and carryovers of
such credit to the taxable year, deducted