§  606.  Credits  against  tax.
 
 
 (a) Investment tax credit (ITC). (1) A
  taxpayer shall be allowed  a  credit,  to  be  computed  as  hereinafter
  provided,  against  the  tax  imposed by this article. The amount of the
  credit shall be the per cent provided for hereinbelow of the  investment
  credit  base. The investment credit base is 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  two  of  this  subsection,  less  the
  amount  of  the  nonqualified nonrecourse financing with respect to such
  property to the extent such  financing  would  be  excludible  from  the
  credit  base  pursuant  to section 46(c)(8) of the internal revenue code
  (treating such property as section thirty-eight property irrespective of
  whether or not it in fact constitutes  section  thirty-eight  property).
  If,  at  the close of a taxable year following the taxable year in which
  such property was placed in service, there is  a  net  decrease  in  the
  amount  of  nonqualified  nonrecourse  financing  with  respect  to such
  property, such net decrease shall be treated as if it were the  cost  or
  other  basis  of  property described in paragraph two of this subsection
  acquired, constructed, reconstructed or erected during the year  of  the
  decrease  in  the  amount  of  nonqualified  nonrecourse  financing. The
  percentage to be used to compute the credit  allowed  pursuant  to  this
  subsection  shall  be  that  percentage appearing in column two which is
  opposite the appropriate period in column  one  in  which  the  tangible
  personal  property  was acquired, constructed, reconstructed or erected,
  as the case may be:
 
  Column 1                             Column 2
  After December 31, 1968 and
  prior to January 1, 1974             one per cent
  After December 31, 1973 and
  prior to January 1, 1978             two per cent
  After December 31, 1977 and
  prior to January 1, 1979             three per cent
  After December 31, 1978 and
  prior to June 1, 1981                four per cent
  After May 31, 1981 and
  prior to July 1, 1982                five per cent
  After June 30, 1982 and
  before January 1, 1987               six per cent
  After December 31, 1986              four per cent, except that  in  the
                                       case of  research  and  development
                                       property  the applicable percentage
                                       shall be seven
 
  Provided, however, that in the case  of  an  acquisition,  construction,
  reconstruction  or  erection  which  was commenced in any one period and
  continued or completed in any subsequent period the credit shall be  the
  sum  of  the portions of the investment credit base attributable to each
  such period, which portion with respect to each  such  period  shall  be
  ascertained by multiplying such investment credit base 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, multiplied  by  the  allowable
  percentage for each such period.
    (2)(A) A credit shall be allowed under this subsection 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 (i) 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, (ii)
  industrial  waste  treatment  facilities  or   air   pollution   control
  facilities, used in the taxpayer's trade or business, (iii) research and
  development  property,  (iv)  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 475(e) of the Internal Revenue Code,
  (v) 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, or (vi) 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  (iv)  and  (v)  of  this  subparagraph, property purchased by a
  taxpayer affiliated with  a  regulated  broker,  dealer,  or  registered
  investment  adviser  is  allowed  a  credit under this subsection if the
  property  is  used  by  its  affiliated  regulated  broker,  dealer   or
  registered  investment  adviser  in accordance with this subsection. For
  purposes  of  determining  if  the  property  is  principally  used   in
  qualifying  uses, the uses by the taxpayer described in clauses (iv) and
  (v) of this subparagraph may be aggregated. In addition, the uses by the
  taxpayer,  its  affiliated  regulated  broker,  dealer  and   registered
  investment  adviser  under  either  or  both  of  those  clauses  may be
  aggregated. Provided, however, a  taxpayer  shall  not  be  allowed  the
  credit  provided by clauses (iv) and (v) of this subparagraph 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. For
  the 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 this
  subsection, the term "goods" shall not include electricity.
    (B) For purposes of this paragraph, the  following  definitions  shall
  apply:
    (i) 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.
    (ii) 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.
    (iii)  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.
    (iv) 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 subsection 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.
    (v)  For  purposes  of  this  paragraph,  the  terms  "qualified  film
  production  facility" and "qualified film production company" shall have
  the same meaning as in section twenty-four of this chapter.
    (C) 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.
    (3) A taxpayer shall not be allowed a  credit  under  this  subsection
  with respect to any property described in clause (i) of subparagraph (B)
  of  paragraph two hereof if such property qualifies for the modification
  allowed under either paragraph three or paragraph four of subsection (g)
  of section six hundred twelve whether or not such amount shall have been
  subtracted. Provided, however, with respect to property which  qualifies
  for a modification under either clause (A), (B) or (C) of paragraph four
  of  subsection  (g)  because  such  property  was  ordered  on or before
  December thirty-first, nineteen hundred sixty-eight, but with respect to
  which no expenditure has  been  paid  or  incurred  at  such  date,  the
  taxpayer  may  elect to subtract the amount allowable under clauses (A),
  (B) or (C) or may take the credit provided by this subsection,  but  not
  both.
    (4)  A  taxpayer  shall  not be allowed a credit under this subsection
  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,  or  registered
  investment  adviser  that  uses  such property in accordance with clause
  (iv) or (v) of subparagraph (A) of paragraph two of this subsection. 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 subsection 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.
    (5)  If  the  amount of credit allowable under this subsection for any
  taxable year shall exceed the taxpayer's tax for such year,  the  excess
  allowed  for  a taxable year commencing prior to January first, nineteen
  hundred eighty-seven 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, nineteen hundred ninety-seven, 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 ten taxable years next following such
  taxable  year  and may be deducted from the taxpayer's tax for such year
  or years. In lieu of carrying over  any  such  excess,  a  taxpayer  who
  qualifies as an owner of a new business for purposes of paragraph ten of
  this subsection may, at his option, receive such excess as a refund. Any
  refund paid pursuant to this paragraph shall be deemed to be a refund of
  an  overpayment  of tax as provided in section six hundred eighty-six of
  this article, provided, however, that no interest shall be paid thereon.
    (6) At the option of the taxpayer for taxable years  commencing  prior
  to  January first, nineteen hundred eighty-seven, air or water pollution
  control  facilities  which  qualify  for  elective  modifications  under
  subsection   (h)   of  section  six  hundred  twelve,  or  research  and
  development facilities which qualify for  elective  modifications  under
  paragraphs  two and four of subsection (g) of section six hundred twelve
  may be treated as property 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,  provided  the  property otherwise
  qualifies under paragraph two of this  subsection,  in  which  event,  a
  modification  shall  not  be allowed under such subsection (h) and under
  such paragraphs two and four of subsection (g).
    (7) (A) 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 subsection 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.
    (B) Except with respect to that property to which subparagraph (D)  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  subsection 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.
    (C) Except with respect to that property to which subparagraph (D)  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 subsection 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.
    (D) 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 subsection 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.
    (E) For purposes of this paragraph, property (i) which is described in
  subparagraph  (B),  (C)  or  (D)  of  this  paragraph, and (ii) which is
  subject  to  paragraph  twenty-six  of  subsection  (c)  and   paragraph
  twenty-five  of  subsection  (b)  of  section six hundred twelve 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.
    (F) 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 (i) or (iii) of subparagraph
  (A) of paragraph two of this  subsection.  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 (i) or  (iii)  of  subparagraph  (A)  of
  paragraph two of this subsection.
    (G)  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  pursuant to subsection (j) of
  section six hundred ninety-seven, in effect  on  the  last  day  of  the
  taxable year.
    (H)  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  subsection  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.
    (10)  For purposes of paragraph five of this subsection, an individual
  who is either a sole proprietor or  a  member  of  a  partnership  shall
  qualify as an owner of a new business unless:
    (A)  the business of which the individual is an owner is substantially
  similar in operation and in ownership to a business entity  taxable,  or
  previously  taxable, under section one hundred eighty-three, one hundred
  eighty-four, one  hundred  eighty-five  or  one  hundred  eighty-six  of
  article  nine;  article  nine-A,  thirty-two  or  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
  five of this subsection with respect  to  refunding  of  credit  to  new
  business would be evaded; or
    (B) the individual has operated such new business entity in this state
  for  more  than  five  taxable  years  (excluding  short  years  of  the
  business).
    (11) Retail enterprise tax credit. A retail enterprise,  not  eligible
  to claim the credit under paragraph one of this subsection, but eligible
  to claim the credit allowable under section thirty-eight of the internal
  revenue  code  pursuant  solely to the provisions of subparagraph (E) of
  paragraph one of subsection (a) of section  forty-eight  of  such  code,
  shall  be  allowed  a  credit as hereinafter computed. The amount of the
  credit shall be the  percentage  appearing  in  paragraph  one  of  this
  subsection for the periods described therein for the amount of qualified
  rehabilitation  expenditures,  as  defined  in subsection (g) of section
  forty-eight of such code, paid or incurred with respect to  a  qualified
  rehabilitated  building,  as  defined in such subsection (g), located in
  this state and such expenditures shall be further limited  to  only  the
  portion  thereof  paid  or  incurred  with  respect  to  that  part of a
  qualified rehabilitated building employed by such taxpayer in the retail
  sales activity of such retail  enterprise.  For  the  purposes  of  this
  subsection,  the term "retail enterprise" means a taxpayer which is: (A)
  a registered vendor under article  twenty-eight  of  this  chapter,  (B)
  primarily  engaged  in  the  retail  sale,  as the term "retail sale" is
  defined in subparagraph (i) of paragraph  four  of  subdivision  (b)  of
  section  eleven  hundred  one  of  this  chapter,  of  tangible personal
  property, and (C) otherwise eligible for the credit allowed pursuant  to
  section thirty-eight of the internal revenue code.
    (12)  Rehabilitation  credit  for  historic barns. A taxpayer shall be
  allowed a credit, to be computed as hereinafter  provided,  against  the
  tax  imposed  by  this  article.  The  amount  of  the  credit  shall be
  twenty-five  percent  of   the   taxpayer's   qualified   rehabilitation
  expenditures,  as  defined in paragraph two of subsection (c) of section
  forty-seven of the internal revenue code, which qualify as the basis for
  the credit provided for under paragraph one of subsection (b) of section
  thirty-eight of such  code  by  reason  of  subsection  one  of  section
  forty-six  of  such  code,  paid  or  incurred  with respect to any barn
  located in this state which is a qualified  rehabilitated  building,  as
  such  term is defined in paragraph one of subsection (c) of such section
  forty-seven. For purposes of this paragraph, the  term  "barn"  means  a
  building  originally  designed  and  used  for storing farm equipment or
  agricultural products, or for housing livestock. Provided, however, such
  qualified  rehabilitation  expenditures  shall  not  include  any   such
  expenditures   which  are  included,  directly  or  indirectly,  in  the
  computation of a credit claimed by the taxpayer  pursuant  to  paragraph
  one  of  this subsection. Provided further that no rehabilitation credit
  shall be allowed for any rehabilitation of  a  barn  which,  immediately
  prior   to  the  commencement  of  such  rehabilitation,  was  used  for
  residential  purposes,  or  which  converts  a  barn  not  suitable  for
  residential  purposes  into  one  which  is  so  suitable,  nor  shall a
  rehabilitation credit be allowed for any rehabilitation that  materially
  alters the historic appearance of the barn.
    (13)(A)(i)  If  a  taxpayer  is  required  by  paragraph seven of this
  subsection to add back a portion of the credit  taken  because  property
  was destroyed or ceased to be in qualified use as a direct result of the
  September  eleventh,  two  thousand one terrorist attacks, such taxpayer
  may elect to defer the amount to be recaptured for all such property  to
  the  taxable  year  next  succeeding  the  taxable  year  in  which  the
  destruction or cessation of qualified use occurred. The taxable year  in
  which  the  destruction  or cessation of qualified use occurred shall be
  hereinafter referred to as the "recapture event taxable  year".  If  the
  taxpayer's  total  employment number in the state on the last day of the
  taxable year next succeeding the  recapture  event  taxable  year  is  a
  significant percentage of the taxpayer's average total employment number
  in the state for the taxpayer's recapture event taxable year and the two
  taxable  years  immediately  preceding the recapture event taxable year,
  then the taxpayer shall not be required to  recapture  any  credit  with
  respect  to  such property. If the taxpayer's total employment number in
  the state on the last day  of  the  taxable  year  next  succeeding  the
  recapture  event  taxable  year  is  not a significant percentage of the
  taxpayer's  average  total  employment  number  in  the  state  for  the
  taxpayer's  recapture  event  taxable  year  and  the  two taxable years
  immediately preceding the recapture event  taxable  year,  the  taxpayer
  shall  be  required  to  recapture the portion of the credit taken under
  this subsection, as required by paragraph seven of this subsection,  for
  all  of its property destroyed or which ceased to be in qualified use as
  a direct result of the September eleventh, two  thousand  one  terrorist
  attacks.  The  amount  required  to  be recaptured shall be augmented as
  required pursuant  to  subparagraph  (G)  of  paragraph  seven  of  this
  subsection  by  using  an  interest  rate equal to two times the rate of
  interest specified in such subparagraph seven applicable for the taxable
  year in which the recapture occurs.
    (ii)  The  taxpayer's  total  employment  number  shall  include   all
  employees  of  the  taxpayer  employed  full-time by the taxpayer in the
  state. The average total  employment  number  for  the  recapture  event
  taxable  year  and  the  two  taxable  years  immediately  preceding the
  recapture  event  taxable  year  shall  be  computed  by determining the
  taxpayer's total employment number on the thirty-first day of March, the
  thirtieth  day  of  June,  the  thirtieth  day  of  September  and   the
  thirty-first day of December during the applicable taxable years, adding
  together  the number of such individuals determined to be so employed on
  each of such dates and dividing the sum so obtained  by  the  number  of
  such  dates  occurring within such applicable taxable years. However, in
  the case of the taxable year  which  included  September  eleventh,  two
  thousand  one, the average total employment number for such taxable year
  shall be determined by using the total employment  number  on  September
  first, two thousand one in lieu of September thirtieth, two thousand one
  and,  if  such taxable year included December thirty-first, two thousand
  one, by excluding the total employment number on December  thirty-first,
  two thousand one.
    (B)  In  lieu  of  subparagraph  (A) of this paragraph, a taxpayer may
  elect  to  recapture  the  portion  of  the  credit  taken  under   this
  subsection,  as  required by paragraph seven of this subsection, for all
  of its property destroyed or which ceased to be in qualified  use  as  a
  direct  result  of  the  September  eleventh, two thousand one terrorist
  attacks, in the taxable year in which the destruction  or  cessation  of
  qualified use occurred. If the taxpayer makes such election and acquires
  property  (hereinafter referred to as "replacement property") to replace
  any property destroyed as a direct result of the September eleventh, two
  thousand one terrorist attacks (regardless of  when  such  property  was
  placed  in  service  and  whether  a credit was claimed on that property
  pursuant to this subsection), and such replacement property  is  similar
  or  related in service or use to such destroyed property, the investment
  credit base of the replacement  property  shall  be  determined  without
  regard  to  any basis reduction required pursuant to section 1033 of the
  internal revenue code.
    (C) The election made by the taxpayer under subparagraph (A) or (B) of
  this paragraph shall be made in the manner and form  prescribed  by  the
  commissioner.
    (D) A taxpayer, over fifty percent of whose employees died as a direct
  result  of  the  September eleventh, two thousand one terrorist attacks,
  may  make  the  election  provided  for  in  subparagraph  (A)  of  this
  paragraph,  and  shall  not  be  required  to  recapture any credit with
  respect to property which  was  destroyed  or  which  ceased  to  be  in
  qualified  use  as  a  direct  result of such attacks, whether or not it
  meets the employment test specified in clause (i) of subparagraph (A) of
  this paragraph.
    (a-1) Employment incentive credit (EIC). (1)(A) Where  a  taxpayer  is
  allowed a credit under subsection (a) 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 subsection
  (a) is allowed with respect to such property, whether or not  deductible
  in  such  taxable  year  or  in  subsequent  taxable  years  pursuant to
  paragraph five of subsection (a) of  this  section.  Provided,  however,
  that  the  credit  allowable  under this subsection 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 subsection (a) is allowed except that in the
  case of a new business, the employment base year shall  be  the  taxable
  year in which the credit under such subsection (a) is allowed.
    (B) The amount of the credit allowed under this subsection shall be as
  set forth in the following table:
 
  Average number of employees during      Credit allowed under this
  the taxable year expressed as a         subsection expressed as a
  percentage of average number of         percentage of the applicable
  employees in employment base year:      investment credit base:
    Less than 102%                                    1.5%
    at least 102% and less than 103%                  2%
    at least 103%                                     2.5%
 
    (2)  The  average  number  of  employees  in  a  taxable year shall be
  computed by ascertaining  the  number  of  employees  within  the  state
  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  abovementioned dates occurring within the taxable
  year. For the purposes of this subsection, the  term  "employees  within
  the state" shall not include, except with respect to the employment base
  year,  any  employee  with  respect  to whom a credit provided for under
  subsection (k) 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.
    (3)  If  the  amount of credit allowable under this subsection for any
  taxable year shall exceed the taxpayer's tax for such year,  the  excess
  allowed  for a taxable year may be carried over to the ten taxable years
  next following such taxable year and may be deducted from the taxpayer's
  tax for such year or years. In lieu of carrying over any such excess,  a
  taxpayer  who  qualifies  as  an owner of a new business for purposes of
  paragraph ten of subsection (a) of this  section  may,  at  his  or  her
  option,  receive  such  excess  as a refund. Any refund paid pursuant to
  this paragraph shall be deemed to be a refund of an overpayment  of  tax
  as provided in section six hundred eighty-six of this article, provided,
  however, that no interest shall be paid thereon.
    (b) Household credit.  (1) A household credit shall be allowed against
  the  tax  determined  under  subsections  (a) through (d) of section six
  hundred one of this  article.  The  credit,  computed  as  described  in
  paragraph  two  of  this subsection, shall not exceed the tax determined
  under subsections (a) through (d) of section six  hundred  one  for  the
  taxable  year,  reduced  by  the  credits  permitted  under sections six
  hundred twenty and six hundred twenty-one of this article.
    (2) (A) For any individual who is  not  married  nor  the  head  of  a
  household  nor  a  surviving  spouse,  the  amount of the credit allowed
  pursuant to this subsection for taxable  years  beginning  on  or  after
  January  first,  nineteen  hundred  eighty-six  shall  be  determined in
  accordance with the following table:
 
    If household gross income is               The credit shall be
  Not over $5,000                                     $75.00
  Over $5,000 but not over $6,000                      60.00
  Over $6,000 but not over $7,000                      50.00
  Over $7,000 but not over $20,000                     45.00
  Over $20,000 but not over $25,000                    40.00
  Over $25,000 but not over $28,000                    20.00
    (B) For any husband and  wife,  head  of  a  household,  or  surviving
  spouse, the amount of the credit allowed pursuant to this subsection for
  taxable  years  beginning  on  or  after January first, nineteen hundred
  eighty-six shall be determined in accordance with the following table:
 
    If household gross income is               The credit shall be
  Not over $5,000                     $90.00  plus  an  amount  equal   to
                                      $15.00  multiplied by a number which
                                      is  one  less  than  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
  Over $5,000 but not over $6,000     $75.00 plus such an amount
  Over $6,000 but not over $7,000     $65.00 plus such an amount
  Over $7,000 but not over $20,000    $60.00 plus such an amount
  Over $20,000 but not over $22,000   $60.00  plus  an  amount  equal   to
                                      $10.00 multiplied by a number  which
                                      is  one  less  than  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
  Over $22,000 but not over $25,000   $50.00 plus such an amount
  Over $25,000 but not over $28,000   $40.00 plus an amount equal to $5.00
                                      multiplied  by a number which is one
                                      less than 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
  Over $28,000 but not over $32,000   $20.00 plus such an amount
 
    (3) For the 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 New York  income  tax  returns
  are  filed. Provided, however, that a husband or wife who is required to
  file a separate New York income tax return shall be  permitted  one-half
  the  credit otherwise allowed his or her household, except as limited by
  paragraph one of this subsection.
    (c) Credit for certain household and dependent care services necessary
  for gainful employment.
    (1)  A  taxpayer shall be allowed a credit as provided herein equal to
  the  applicable  percentage  of  the  credit  allowable  under   section
  twenty-one  of  the  internal  revenue  code  for  the same taxable year
  (without regard to whether the taxpayer in fact claimed the credit under
  such  section  twenty-one  for  such  taxable  year).   The   applicable
  percentage  shall be the sum of (i) twenty percent and (ii) a multiplier
  multiplied by a  fraction.  For  taxable  years  beginning  in  nineteen
  hundred  ninety-six  and nineteen hundred ninety-seven, the numerator of
  such fraction shall be the lesser of (i) four thousand dollars  or  (ii)
  fourteen  thousand  dollars  less the New York adjusted gross income for
  the taxable year, provided, however, the numerator  shall  not  be  less
  than   zero.   For  the  taxable  year  beginning  in  nineteen  hundred
  ninety-eight, the numerator of such fraction shall be the lesser of  (i)
  thirteen  thousand  dollars or (ii) thirty thousand dollars less the New
  York adjusted gross income for the taxable year, provided, however,  the
  numerator  shall  not  be less than zero. For taxable years beginning in
  nineteen hundred ninety-nine, the numerator of such  fraction  shall  be
  the  lesser  of  (i)  fifteen  thousand  dollars  or (ii) fifty thousand
  dollars less the New York adjusted gross income for  the  taxable  year,
  provided,  however,  the  numerator  shall  not  be  less than zero. For
  taxable  years  beginning  after  nineteen  hundred   ninety-nine,   the
  numerator  of  such fraction shall be the lesser of (i) fifteen thousand
  dollars or (ii) sixty-five thousand dollars less the New  York  adjusted
  gross  income  for  the  taxable  year, provided, however, the numerator
  shall not be less than zero. The denominator of such fraction  shall  be
  four  thousand  dollars  for taxable years beginning in nineteen hundred
  ninety-six and nineteen hundred ninety-seven, thirteen thousand  dollars
  for  the  taxable  year  beginning in nineteen hundred ninety-eight, and
  fifteen thousand dollars for  taxable  years  beginning  after  nineteen
  hundred  ninety-eight.  The  multiplier shall be ten percent for taxable
  years beginning  in  nineteen  hundred  ninety-six,  forty  percent  for
  taxable  years  beginning  in  nineteen hundred ninety-seven, and eighty
  percent for taxable years beginning after nineteen hundred ninety-seven.
  Provided, however, for taxable years beginning  after  nineteen  hundred
  ninety-nine,  for  a person whose New York adjusted gross income is less
  than forty thousand dollars, such applicable percentage shall  be  equal
  to  (i)  one  hundred  percent,  plus  (ii)  ten percent multiplied by a
  fraction whose numerator shall be the lesser  of  (i)  fifteen  thousand
  dollars  or (ii) forty thousand dollars less the New York adjusted gross
  income for the taxable year, provided such numerator shall not  be  less
  than  zero,  and  whose  denominator  shall be fifteen thousand dollars.
  Provided, further, that if the  reversion  event,  as  defined  in  this
  paragraph,  occurs,  the  applicable percentage shall, for taxable years
  ending on or after the date on which the reversion  event  occurred,  be
  determined  using  the  rules  specified in this paragraph applicable to
  taxable years beginning in nineteen hundred ninety-nine.  The  reversion
  event  shall  be  deemed  to  have occurred on the date on which federal
  action, including but  not  limited  to,  administrative,  statutory  or
  regulatory  changes,  materially  reduces or eliminates New York state's
  allocation of the federal temporary assistance for needy families  block
  grant,  or  materially reduces the ability of the state to spend federal
  temporary assistance for needy families block grant funds for the credit
  for certain household and dependent care services necessary for  gainful
  employment  or  to  apply  state general fund spending on the credit for
  certain household and dependent  care  services  necessary  for  gainful
  employment  toward  the  temporary  assistance  for needy families block
  grant maintenance of effort requirement, and  the  commissioner  of  the
  office  of temporary and disability assistance shall certify the date of
  such event to the commissioner, the director  of  the  division  of  the
  budget,  the  speaker of the assembly and the temporary president of the
  senate.
    (2) Residents. In the case of a resident taxpayer,  the  credit  under
  this  subsection  shall  be  allowed  against  the taxes imposed by this
  article for the taxable year 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.
    (3) Nonresidents. In the case of a nonresident  taxpayer,  the  credit
  under  this subsection shall be allowed against the tax determined under
  subsections (a) through (d) of section six hundred one.  The  amount  of
  the  credit  shall  not exceed the tax determined under such subsections
  for the taxable year reduced by the credit  permitted  under  subsection
  (b) of this section.
    (4) Part-year residents. In the case of a part-year resident taxpayer,
  the  credit  under  this  subsection  shall  be  allowed against the tax
  determined under subsections (a) through (d) of section six hundred  one
  reduced  by  the  credit permitted under subsection (b) of this section,
  and any excess credit after such application shall  be  allowed  against
  the taxes imposed by sections six hundred two and six hundred three. Any
  remaining  excess, after such application, shall be refunded as provided
  in paragraph two hereof, provided, however, that any  overpayment  under
  such  paragraph  shall  be limited to the amount of the remaining 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.
    (5) In the case of a husband and wife who file a joint federal return,
  but  who  are required to determine their New York taxes separately, the
  credit allowed pursuant to this subsection may only be  applied  against
  the  tax  imposed  on the spouse with the lower taxable income, computed
  without regard to such credit. 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 New York income tax
  return.
    (c-1)  Empire  state  child credit.   (1) A resident taxpayer shall be
  allowed a credit as provided herein equal to the greater of one  hundred
  dollars  times  the number of qualifying children of the taxpayer or the
  applicable percentage of the child tax credit allowed the taxpayer under
  section twenty-four of the internal revenue code for  the  same  taxable
  year  for  each  qualifying  child.  Provided, however, in the case of a
  taxpayer whose federal adjusted  gross  income  exceeds  the  applicable
  threshold  amount  set forth by section 24(b)(2) of the Internal Revenue
  Code, the credit shall only be equal to the applicable percentage of the
  child tax credit allowed the taxpayer under section 24 of  the  Internal
  Revenue  Code  for  each  qualifying  child.  For  the  purposes of this
  subsection, a qualifying child shall be a child who meets the definition
  of qualified child under section 24(c) of the internal revenue code  and
  is  at  least  four  years  of  age.  The applicable percentage shall be
  thirty-three percent.
    (2)  If the amount of the credit allowed under this subsection for any
  taxable year shall exceed the taxpayer's tax for such year,  the  excess
  shall  be treated as an overpayment of tax to be credited or refunded in
  accordance with the provisions of section six hundred eighty-six of this
  article, provided, however, that no interest shall be paid thereon.
    (3) In the case of a husband and wife who file a joint federal return,
  but who are required to determine their New York taxes  separately,  the
  credit  allowed  pursuant  to this subsection may be applied against the
  tax imposed of either or divided between them as they may elect.
    (d) Earned income credit. (1) General. A taxpayer shall be  allowed  a
  credit  as provided herein equal to (i) the applicable percentage of the
  earned income credit allowed under section thirty-two  of  the  internal
  revenue  code  for  the  same  taxable  year, (ii) reduced by the credit
  permitted under subsection (b) of this section.
    The applicable percentage shall be (i) seven and one-half percent  for
  taxable  years  beginning  in  nineteen  hundred  ninety-four,  (ii) ten
  percent for taxable years beginning  in  nineteen  hundred  ninety-five,
  (iii)  twenty percent for taxable years beginning after nineteen hundred
  ninety-five and  before  two  thousand,  (iv)  twenty-two  and  one-half
  percent  for  taxable  years  beginning in two thousand, (v) twenty-five
  percent  for  taxable  years  beginning  in  two  thousand   one,   (vi)
  twenty-seven  and  one-half  percent  for taxable years beginning in two
  thousand two, and (vii) thirty percent for taxable  years  beginning  in
  two  thousand  three  and  thereafter.  Provided,  however,  that if the
  reversion event, as defined in this paragraph,  occurs,  the  applicable
  percentage  shall be twenty percent for taxable years ending on or after
  the date on which the reversion  event  occurred.  The  reversion  event
  shall  be  deemed  to have occurred on the date on which federal action,
  including but not limited to, administrative,  statutory  or  regulatory
  changes, materially reduces or eliminates New York state's allocation of
  the  federal  temporary  assistance  for  needy families block grant, or
  materially reduces the ability of the state to spend  federal  temporary
  assistance  for  needy  families block grant funds for the earned income
  credit or to apply state general fund  spending  on  the  earned  income
  credit  toward  the  temporary assistance for needy families block grant
  maintenance of effort requirement, and the commissioner of the office of
  temporary and disability assistance shall certify the date of such event
  to the commissioner  of  taxation  and  finance,  the  director  of  the
  division  of  the  budget, the speaker of the assembly and the temporary
  president of the senate.
    (2) Residents. In the case of a resident taxpayer,  the  credit  under
  this  subsection  shall  be  allowed  against  the taxes imposed by this
  article for the taxable year 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.
    (3) Nonresidents. In the case of a nonresident  taxpayer,  the  credit
  under  this subsection shall be allowed against the tax determined under
  subsections (a) through (d) of section six hundred one.  The  amount  of
  the  credit  shall  not exceed the tax determined under such subsections
  for the taxable year reduced by the credits permitted under  subsections
  (b), (c) and (m) of this section.
    (4) Part-year residents. In the case of a part-year resident taxpayer,
  the  credit  under  this  subsection  shall  be  allowed against the tax
  determined under subsections (a) through (d) of section six hundred  one
  reduced  by  the credits permitted under subsections (b), (c) and (m) of
  this section, and any excess credit  after  such  application  shall  be
  allowed  against  the  taxes imposed by sections six hundred two and six
  hundred  three.  Any  remaining excess, after such application, shall be
  refunded as provided in paragraph two hereof,  provided,  however,  that
  any  overpayment  under such paragraph shall be limited to the amount of
  the remaining 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.
    (5)  Husband  and  wife.  In the case of a husband and wife who file a
  joint federal return but who are required to determine  their  New  York
  taxes  separately, the credit allowed pursuant to this subsection may be
  applied against the tax of either or divided between them  as  they  may
  elect.
    (6)  Notification.  The  commissioner shall periodically, but not less
  than every three years, make efforts to  alert  taxpayers  that  may  be
  currently eligible to receive the credit provided under this subsection,
  and  the  credit  provided  under  any  local  law  enacted  pursuant to
  subsection (f) of section thirteen hundred ten of this  chapter,  as  to
  their  potential  eligibility.  In making the determination of whether a
  taxpayer may be eligible for such credit,  the  commissioner  shall  use
  such  data  as  may  be  appropriate  and  available, including, but not
  limited  to,  data  available  from  the  United  States  Department  of
  Treasury, Internal Revenue Service and New York state income tax returns
  for preceding tax years.
    (7)  Reports.  The  commissioner  shall  prepare a preliminary written
  report after July thirty-first and a final written report after December
  thirty-first of each calendar  year,  which  shall  contain  statistical
  information  regarding the credits granted on or before such dates under
  this subsection, and under any local law enacted pursuant to  subsection
  (f)  of  section  thirteen  hundred  ten  of  this  chapter, during such
  calendar year. Copies of  these  reports  shall  be  submitted  by  such
  commissioner to the governor, the temporary president of the senate, the
  speaker  of  the  assembly, the chairman of the senate finance committee
  and the chairman of the assembly ways and means committee  within  sixty
  days  of  July  thirty-first with respect to the preliminary report, and
  within forty-five days of December  thirty-first  with  respect  to  the
  final  report,  and copies of such reports with respect to credits under
  any local law enacted pursuant to subsection  (f)  of  section  thirteen
  hundred  ten of this chapter shall be submitted in addition to the mayor
  and the speaker of the council of the city where such a local law is  in
  effect.  Such  reports  shall  contain,  but need not be limited to, the
  number of credits and the average amount of such credits allowed; and of
  those, the number of credits and the  average  amount  of  such  credits
  allowed to taxpayers in each county; and of those, the number of credits
  and the average amount of such credits allowed to taxpayers whose earned
  income  falls within ranges, determined by the commissioner, of not more
  than four thousand dollars; and of those, the number of credits and  the
  average  amount  of such credits allowed to taxpayers who file under the
  different statuses set forth in subsections (a), (b) and (c) of  section
  six  hundred  one  of this part; and of those, the number of credits and
  the average amount of such credits allowed to taxpayers whose number  of
  qualifying  children  falls  within  the  categories  set  forth in such
  section thirty-two of the internal revenue code.
    (d-1) Enhanced earned income tax credit. (1) A taxpayer  described  in
  paragraph  two of this subsection shall be allowed a credit equal to the
  greater of:
    (A)  twenty percent of the amount of the earned income tax credit that
  would have been allowed to the taxpayer under section 32 of the internal
  revenue code, absent the application  of  section  32(b)(2)(B)  of  such
  code,  if  the  child  or  children  described  in  subparagraph  (C) of
  paragraph two of  this  subsection  satisfied  the  requirements  for  a
  qualifying  child  set  forth in section 32(c)(3) of such code, provided
  however, that the credit shall be calculated as if the taxpayer had only
  one child; or
    (B) the product of two and one-half  and  the  amount  of  the  earned
  income  tax  credit  that  would have been allowed to the taxpayer under
  section 32 of the internal revenue code, if the taxpayer  satisfied  the
  eligibility  requirements  set  forth in section 32(c)(1)(A)(ii) of such
  code.
    (2) To be allowed a credit under  this  subsection,  a  taxpayer  must
  satisfy all of the following qualifications.
    (A) The taxpayer must be a resident taxpayer.
    (B) The taxpayer must have attained the age of eighteen.
    (C)  The taxpayer must be the parent of a minor child or children with
  whom the taxpayer does not reside.
    (D) The taxpayer must have an order requiring him or her to make child
  support payments, which are payable through a  support  collection  unit
  established  pursuant  to  section  one  hundred  eleven-h of the social
  services law, which order must have been in effect for at least one-half
  of the taxable year.
    (E) The taxpayer must have paid an amount  in  child  support  in  the
  taxable  year  at least equal to the amount of current child support due
  during the taxable year for every order requiring him  or  her  to  make
  child support payments.
    (3)  If  the  amount of the credit allowed under this subsection shall
  exceed the taxpayer's tax for such year, the excess shall be treated  as
  an  overpayment of tax to be credited or refunded in accordance with the
  provisions of section six hundred eighty-six of this article,  provided,
  however, that no interest shall be paid thereon.
    (4)  No claim for credit under this subsection shall be allowed unless
  the department has verified, from information provided by the office  of
  temporary  and  disability assistance, that a taxpayer has satisfied the
  qualifications set forth in subparagraphs (C), (D) and (E) of  paragraph
  two   of  this  subsection.  The  office  of  temporary  and  disability
  assistance shall provide to the department by January fifteenth of  each
  year  information  applicable  for  the  immediately  preceding tax year
  necessary for the department to make such verification. Such information
  shall be provided in the manner and form agreed upon by  the  department
  and  such  office.  If  a  taxpayer's  claim  for  a  credit  under this
  subsection is disallowed because the  taxpayer  has  not  satisfied  the
  qualifications  set forth in subparagraphs (C), (D) and (E) of paragraph
  two of this subsection, the taxpayer  may  request  a  review  of  those
  qualifications  by  the  support collection unit established pursuant to
  section one hundred eleven-h of the social services  law  through  which
  the  child  support  payments  were payable. The support collection unit
  shall transmit the result of that review to the office of temporary  and
  disability  assistance  on  a form developed by such office. Such office
  shall then transmit such result to the department  in  a  manner  agreed
  upon by the department and such office.
    (5)  A  taxpayer  shall  not  be  allowed  multiple credits under this
  subsection for a taxable year even if such taxpayer has  more  than  one
  child  or  has  more  than  one order requiring him or her to make child
  support payments.
    (6)  If  a credit is allowed under this subsection and the taxpayer is
  also allowed a credit under subsection (d) of this section, the taxpayer
  shall only be allowed to claim one credit.
    (7) In the report prepared pursuant to paragraph seven  of  subsection
  (d)   of  this  section,  the  commissioner  shall  include  statistical
  information concerning the credit allowed pursuant to  this  subsection.
  Such  information  shall  be  limited  to  the number of credits and the
  average amount of such credits allowed; and  of  those,  the  number  of
  credits  and the average amounts of such credits allowed to taxpayers in
  each county.
    (e) Real property tax circuit breaker credit. (1) For purposes of this
  subsection:
    (A) "Qualified taxpayer" means a resident individual of the state  who
  has  occupied  the  same residence for six months or more of the taxable
  year, and is required or chooses to file a return under this article.
    (B) "Household" or  "members  of  the  household"  means  a  qualified
  taxpayer  and  all  other persons, not necessarily related, who have the
  same residence and share its furnishings, facilities and accommodations.
  Such terms shall not include a tenant, subtenant, roomer or boarder  who
  is  not  related  to  the  qualified taxpayer in any degree specified in
  paragraphs one through eight of subsection (a) of  section  one  hundred
  fifty-two of the internal revenue code. Provided, however, no person may
  be a member of more than one household at one time.
    (c) "Household gross income" means the aggregate adjusted gross income
  of  all  members  of  the household for the taxable year as reported for
  federal income tax purposes, or which  would  be  reported  as  adjusted
  gross  income  if a federal income tax return were required to be filed,
  with the modifications in subsection (b) of section six  hundred  twelve
  but  without  the  modifications in subsection (c) of such section, plus
  any portion of the gain from the sale or exchange of property  otherwise
  excluded from such amount; earned income from sources without the United
  States  excludable  from  federal  gross  income by section nine hundred
  eleven of the internal revenue  code;  support  money  not  included  in
  adjusted gross income; nontaxable strike benefits; supplemental security
  income  payments; the gross amount of any pension or annuity benefits to
  the extent not included in such adjusted gross  income  (including,  but
  not  limited  to, railroad retirement benefits and all payments received
  under  the  federal  social  security  act  and   veterans'   disability
  pensions);  nontaxable interest received from the state of New York, its
  agencies,   instrumentalities,   public   corporations,   or   political
  subdivisions   (including  a  public  corporation  created  pursuant  to
  agreement  or  compact  with  another   state   or   Canada);   workers'
  compensation;  the  gross  amount  of  "loss-of-time" insurance; and the
  amount  of  cash  public  assistance  and  relief,  other  than  medical
  assistance  for  the  needy, paid to or for the benefit of the qualified
  taxpayer or members of his household. Household gross income  shall  not
  include  surplus  foods  or  other  relief  in  kind or payments made to
  individuals because of their status as victims of  Nazi  persecution  as
  defined in P.L. 103-286. Provided, further, household gross income shall
  only  include  all  such income received by all members of the household
  while members of such household.
    (D) "Residence" means a dwelling  in  this  state,  whether  owned  or
  rented,  and so much of the land abutting it, not exceeding one acre, as
  is reasonably necessary for use of the  dwelling  as  a  home,  and  may
  consist  of  a  part  of  a  multi-dwelling  or  multi-purpose  building
  including a cooperative or condominium, and rental units within a single
  dwelling.  Residence includes a trailer or mobile home, used exclusively
  for residential purposes  and  defined  as  real  property  pursuant  to
  paragraph  (g)  of  subdivision twelve of section one hundred two of the
  real property tax law.
    (E)  "Qualifying  real  property taxes" means all real property taxes,
  special  ad  valorem  levies  and  special  assessments,  exclusive   of
  penalties  and interest, levied on the residence of a qualified taxpayer
  and  paid  during  the  taxable  year  less  the  credit  claimed  under
  subsection  (n-1)  of  this  section.  In  addition,  for  taxable years
  beginning after December thirty-first, nineteen hundred  eighty-four,  a
  qualified taxpayer may elect to include any additional amount that would
  have  been  levied  in  the  absence  of an exemption from real property
  taxation pursuant to  section  four  hundred  sixty-seven  of  the  real
  property  tax  law.  If  tenant-stockholders  in  a  cooperative housing
  corporation have met the requirements of section two hundred sixteen  of
  the internal revenue code by which they are allowed a deduction for real
  estate  taxes,  the  amount  of  taxes  so  allowable, or which would be
  allowable if the taxpayer had filed returns on a cash  basis,  shall  be
  qualifying  real  property taxes. If a residence is owned by two or more
  individuals as joint tenants or tenants in common, and one or more  than
  one  individual  is  not  a  member  of  the  household, qualifying real
  property taxes is that  part  of  such  taxes  on  the  residence  which
  reflects  the ownership percentage of the qualified taxpayer and members
  of his household. If a residence is an integral part of a  larger  unit,
  qualifying  real  property taxes shall be limited to that amount of such
  taxes paid as may be reasonably apportioned  to  such  residence.  If  a
  household  owns  and  occupies  two  or more residences during different
  periods in the same taxable year, qualifying real property  taxes  shall
  be  the  sum of the prorated qualifying real property taxes attributable
  to the household during the periods such household occupies each of such
  residences. If the household owns and occupies a residence for  part  of
  the  taxable  year  and  rents  a residence for part of the same taxable
  year, it may include both the  proration  of  qualifying  real  property
  taxes  on  the residence owned and the real property tax equivalent with
  respect to the months the residence is rented.  Provided,  however,  for
  purposes  of  the  credit allowed under this subsection, qualifying real
  property taxes may be included by  a  qualified  taxpayer  only  to  the
  extent  that such taxpayer or the spouse of such taxpayer occupying such
  residence for six months or more of the taxable year owns or  has  owned
  the residence and paid such taxes.
    (F)  "Real  property  tax equivalent" means twenty-five percent of the
  adjusted rent actually paid in the taxable year by  a  household  solely
  for  the  right  of  occupancy of its New York residence for the taxable
  year. If (i) a residence  is  rented  to  two  or  more  individuals  as
  cotenants, or such individuals share in the payment of a single rent for
  the  right  of  occupancy  of  such  residence,  and  (ii)  each of such
  individuals is a member of a different household, one or more  of  which
  individuals  shares such residence, real property tax equivalent is that
  portion of twenty-five percent of the adjusted rent paid in the  taxable
  year  which  reflects  that  portion  of  the  rent  attributable to the
  qualified taxpayer and the members of his household.
    (G) "Adjusted rent" means rental paid for the right of occupancy of  a
  residence, excluding charges for heat, gas, electricity, furnishings and
  board. Where charges for heat, gas, electricity, furnishing or board are
  included in rental but where such charges and the amount thereof are not
  separately  set  forth  in  a  written rental agreement, for purposes of
  determining adjusted rent the qualified  taxpayer  shall  reduce  rental
  paid as follows:
    (i) For heat, or heat and gas, deduct fifteen percent of rental paid.
    (ii)  For  heat,  gas and electricity, deduct twenty percent of rental
  paid.
    (iii) For heat, gas, electricity and furnishings,  deduct  twenty-five
  percent of rental paid.
    (iv)  For  heat, gas, electricity, furnishings and board, deduct fifty
  percent of rental paid.
  If the tax commission determines that the adjusted  rent  shown  on  the
  return  is  excessive,  the  tax  commission  may  reduce such rent, for
  purposes of the computation of the credit, to  an  amount  substantially
  equivalent to rent for a comparable accommodation.
    (2)  A  qualified  taxpayer  shall  be allowed a credit as provided in
  paragraph three hereof against the taxes imposed by this article reduced
  by the credits permitted by this article. If the credit exceeds the  tax
  as  so  reduced  for such year under this article the qualified taxpayer
  may receive, and the comptroller, subject to a certificate of the  state
  tax  commission,  shall  pay  as  an  overpayment, without interest, any
  excess between such tax as so reduced and the amount of the credit. If a
  qualified taxpayer is not required to file a return pursuant to  section
  six hundred fifty-one, a qualified taxpayer may nevertheless receive and
  the  comptroller,  subject to a certificate of the state tax commission,
  shall pay as an overpayment the  full  amount  of  the  credit,  without
  interest.
    (3)  Determination  of  credit.  (A)  For qualified taxpayers who have
  attained the age of sixty-five years before the beginning of  or  during
  the  taxable  year  the  amount  of  the  credit  allowable  under  this
  subsection shall be fifty  percent,  or  in  the  case  of  a  qualified
  taxpayer  who  has  elected  to include an additional amount pursuant to
  subparagraph (E)  of  paragraph  one  of  this  subsection,  twenty-five
  percent,  of  the  excess  of  real property taxes or the excess of real
  property tax equivalent determined as follows:
 
                                       Excess real property taxes are  the
                                       excess   of   real   property   tax
                                       equivalent   or   the   excess   of
                                       qualifying real property taxes over
                                       the  fol-
  If household gross income for the    lowing   percentage   of  household
  taxable year is:                     gross income:
  -----------------------------------  -----------------------------------
  $3,000 or less                                      3 1/2
  Over $3,000 but not over $5,000                     4
  Over $5,000 but not over $7,000                     4 1/2
  Over $7,000 but not over $9,000                     5
  Over $9,000 but not over $11,000                    5 1/2
  Over $11,000 but not over $14,000                   6
  Over $14,000 but not over $18,000                   6 1/2
 
    Notwithstanding   the   foregoing   provisions,   the  maximum  credit
  determined under this subparagraph may not exceed the amount  determined
  in accordance with the following table:
 
  If household gross income for the
  taxable year is:                     The maximum credit is:
  -----------------------------------  -----------------------------------
  $1,000 or less                                      $375
  Over $1,000 but not over $2,000                     $358
  Over $2,000 but not over $3,000                     $341
  Over $3,000 but not over $4,000                     $324
  Over $4,000 but not over $5,000                     $307
  Over $5,000 but not over $6,000                     $290
  Over $6,000 but not over $7,000                     $273
  Over $7,000 but not over $8,000                     $256
  Over $8,000 but not over $9,000                     $239
  Over $9,000 but not over $10,000                    $222
  Over $10,000 but not over $11,000                   $205
  Over $11,000 but not over $12,000                   $188
  Over $12,000 but not over $13,000                   $171
  Over $13,000 but not over $14,000                   $154
  Over $14,000 but not over $15,000                   $137
  Over $15,000 but not over $16,000                   $120
  Over $16,000 but not over $17,000                   $103
  Over $17,000 but not over $18,000                   $ 86
 
    (B)  For  all  other  qualified  taxpayers  the  amount  of the credit
  allowable under this subsection shall be fifty percent  of  excess  real
  property  taxes  or  the  excess  of  the  real  property tax equivalent
  determined as follows:
 
                                       Excess real property taxes are  the
                                       excess   of   real   property   tax
                                       equivalent   or   the   excess   of
                                       qualifying real property taxes over
                                       the  fol-
  If household gross income for the    lowing   percentage   of  household
  taxable year is:                     gross income:
  -----------------------------------  -----------------------------------
  $3,000 or less                                      3 1/2
  Over $3,000 but not over $5,000                     4
  Over $5,000 but not over $7,000                     4 1/2
  Over $7,000 but not over $9,000                     5
  Over $9,000 but not over $11,000                    5 1/2
  Over $11,000 but not over $14,000                   6
  Over $14,000 but not over $18,000                   6 1/2
 
    Notwithstanding   the   foregoing   provisions,   the  maximum  credit
  determined under this subparagraph may not exceed the amount  determined
  in accordance with the following table:
 
  If household gross income for the
  taxable year is:                     The maximum credit is:
  -----------------------------------  -----------------------------------
  $1,000 or less                                      $75
  Over $1,000 but not over $2,000                     $73
  Over $2,000 but not over $3,000                     $71
  Over $3,000 but not over $4,000                     $69
  Over $4,000 but not over $5,000                     $67
  Over $5,000 but not over $6,000                     $65
  Over $6,000 but not over $7,000                     $63
  Over $7,000 but not over $8,000                     $61
  Over $8,000 but not over $9,000                     $59
  Over $9,000 but not over $10,000                    $57
  Over $10,000 but not over $11,000                   $55
  Over $11,000 but not over $12,000                   $53
  Over $12,000 but not over $13,000                   $51
  Over $13,000 but not over $14,000                   $49
  Over $14,000 but not over $15,000                   $47
  Over $15,000 but not over $16,000                   $45
  Over $16,000 but not over $17,000                   $43
  Over $17,000 but not over $18,000                   $41
 
    (4)  If a qualified taxpayer occupies a residence for a period of less
  than twelve months during the taxable  year  or  occupies  two  or  more
  residences  during  different  periods  in such taxable year, the credit
  allowed pursuant to this subsection shall be computed in such manner  as
  the  tax  commission  may, by regulation, prescribe in order to properly
  reflect the credit or portion thereof attributable to such residence  or
  residences and such period or periods.
    (5)  The  tax  commission  may  prescribe  that  the credit under this
  subsection shall be determined in whole or in part by the use of  tables
  prescribed by such commission. Such tables shall set forth the credit to
  the nearest dollar.
    (6)  Only one credit per household and per qualified taxpayer shall be
  allowed per taxable year under this subsection. When two or more members
  of a household are able to  meet  the  qualifications  for  a  qualified
  taxpayer,  the  credit  shall  be  equally divided between or among such
  individuals unless such individuals  file  with  the  tax  commission  a
  written  agreement  among  such  individuals  setting  forth a different
  division. Where two or more members of a household are able to meet  the
  qualifications  of  a  qualified  taxpayer and one of them is sixty-five
  years of age or more, the credit which may be taken shall be the  credit
  applicable to individuals who have attained the age of sixty-five years.
    (A)  Provided, however, where a joint income tax return has been filed
  pursuant to the  provisions  of  section  six  hundred  fifty-one  by  a
  qualified  taxpayer  and his spouse (or where both spouses are qualified
  taxpayers and have filed such joint return), the credit, or the  portion
  of  the  credit  if  divided, to which the husband and wife are entitled
  shall be applied against the tax of both  spouses  and  any  overpayment
  shall be made to both spouses.
    (B)  Where  any return required to be filed pursuant to the provisions
  of section six hundred fifty-one is combined  with  any  return  of  tax
  imposed  pursuant  to  the authority of this chapter or any other law if
  such tax is administered by  the  tax  commission,  the  credit  or  the
  portion  of the credit if divided, allowed to the qualified taxpayer may
  be  applied  by  the  tax  commission  toward  any  liability  for   the
  aforementioned taxes.
    (7) No credit shall be granted under this subsection:
    (A)  If  household  gross income for the taxable year exceeds eighteen
  thousand dollars.
    (B) To  a  property  owner  unless:  (i)  the  property  is  used  for
  residential  purposes,  (ii)  not more than twenty percent of the rental
  income, if any, from the property  is  from  rental  for  nonresidential
  purposes  and  (iii) the property is occupied as a residence in whole or
  in part by one or more of the owners of the property.
    (C) To a property owner who owns real  property,  the  full  value  of
  which exceeds eighty-five thousand dollars.
    (D)  To  a  tenant if the adjusted rent for the residence exceeds four
  hundred fifty dollars per month on average.
    (E) 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.
    (F)  With  respect  to  a  residence that is wholly exempted from real
  property taxation.
    (G) To an individual who is not a resident individual of the state for
  the entire taxable year.
    (8) The right to claim a credit or the portion of a credit, where such
  credit  has been divided under this subsection, shall be personal to the
  qualified taxpayer and shall not survive his death, but such  right  may
  be  exercised  on behalf of a claimant by his legal guardian or attorney
  in fact during his lifetime.
    (9) Returns. If a qualified taxpayer is not required to file a  return
  pursuant  to  section six hundred fifty-one, a claim for a credit may be
  taken on a return filed with the tax commission within three years  from
  the  time it would have been required that a return be filed pursuant to
  such section had the qualified taxpayer had a  taxable  year  ending  on
  December  thirty-first.  Returns  under  this paragraph shall be in such
  form as shall be prescribed by the  tax  commission,  which  shall  make
  available such forms and instructions for filing such returns.
    (10)  Proof  of  claim.  The  tax  commission  may require a qualified
  taxpayer to furnish the following information in support  of  his  claim
  for  credit  under  this  subsection: household gross income, rent paid,
  name and address of owner or managing agent of the property rented, real
  property taxes levied or that would have been levied in the  absence  of
  an  exemption  from  real  property tax pursuant to section four hundred
  sixty-seven of the real property tax law, the names of  members  of  the
  household  and  other  qualifying taxpayers occupying the same residence
  and  their  identifying  numbers  including  social  security   numbers,
  household gross income, size and nature of property claimed as residence
  and all other information which may be required by the tax commission to
  determine the credit.
    (11)  Administration.  The  provisions  of this article, including the
  provisions of section six hundred fifty-three, six hundred  fifty-eight,
  and  six  hundred  fifty-nine  and  the  provisions  of part six of this
  article relating to procedure and administration, including the judicial
  review of the decisions of the tax commission, except so much of section
  six hundred eighty-seven which permits a claim for credit or  refund  to
  be  filed  after  the  period  provided  for  in  paragraph nine of this
  subsection and except sections  six  hundred  fifty-seven,  six  hundred
  eighty-eight  and  six hundred ninety-six, shall apply to the provisions
  of this subsection in the same manner and with the same force and effect
  as if the language of those provisions had  been  incorporated  in  full
  into this subsection and had expressly referred to the credit allowed or
  returns  filed under this subsection, except to the extent that any such
  provision is either inconsistent with a provision of this subsection  or
  is  not  relevant  to this subsection. As used in such sections and such
  part, the term "taxpayer" shall include a qualified taxpayer under  this
  subsection  and,  notwithstanding  the  provisions  of subsection (e) of
  section  six  hundred  ninety-seven,  where  a  qualified  taxpayer  has
  protested the denial of a claim for credit under this subsection and the
  time  to  file  a  petition  for  redetermination of a deficiency or for
  refund has not expired, he shall, subject to such conditions as  may  be
  set  by  the  tax  commission,  receive  such  information  (A) which is
  contained in any return filed under this article  by  a  member  of  his
  household  for the taxable year for which the credit is claimed, and (B)
  which the tax commission finds is relevant and material to the issue  of
  whether  such  claim  was properly denied. The tax commission shall have
  the authority to  promulgate  such  rules  and  regulations  as  may  be
  necessary  for the processing, determination and granting of credits and
  refunds under this subsection.
    (12) The commissioner may request the cooperation of the  state  board
  of  real  property  services  in  carrying  out  the  provisions of this
  subsection. Such  board  may  promulgate  such  rules  and  regulations,
  subject to prior consultation with the commissioner, as may be necessary
  to  provide  such  assistance  with respect to the determination of full
  value  of  real  property  for purposes of the credit allowed under this
  subsection.
    (13) Notwithstanding any other provision of this article,  the  credit
  allowed   under   this   subsection   shall   be  determined  after  the
  determination and application of any other credits permitted  under  the
  provisions of this article.
    (14)  The  commissioner  of  taxation  and  finance  shall  prepare  a
  preliminary written report after July thirty-first and a  final  written
  report  after  December  thirty-first of each calendar year, which shall
  contain statistical information regarding  the  credits  granted  on  or
  before  such  dates  under  this  subsection  during such calendar year.
  Copies of these reports shall be submitted by such commissioner  to  the
  governor,  the  temporary  president  of  the senate, the speaker of the
  assembly, the chairman of the senate finance committee and the  chairman
  of  the  assembly  ways  and  means  committee within sixty days of July
  thirty-first  with  respect  to  the  preliminary  report,  and   within
  forty-five  days  of  December  thirty-first  with  respect to the final
  report. Such reports shall contain, but need  not  be  limited  to,  the
  number of credits and the average amount of such credits allowed; and of
  those,  the  number  of  credits  and the average amount of such credits
  allowed to qualified taxpayers in each county; and of those, the  number
  of  credits  and the average amount of such credits allowed to qualified
  taxpayers  whose  household  gross  income  falls  within  each  of  the
  household  gross  income  ranges  set  forth  in paragraph three of this
  subsection; and of those, the number of credits and the  average  amount
  of such credits allowed to qualified taxpayers whose credit amount falls
  within credit amount ranges set forth in twenty-five dollar increments.
    (e-1)  Volunteer  firefighters' and ambulance workers' credit. (1) For
  taxable years beginning on and after January first, two thousand  seven,
  a  resident  taxpayer  who  serves as an active volunteer firefighter as
  defined in subdivision one of section two hundred fifteen of the general
  municipal  law  or  as  a  volunteer  ambulance  worker  as  defined  in
  subdivision  fourteen  of  section two hundred nineteen-k of the general
  municipal law shall be allowed a credit against the tax imposed by  this
  article  equal to two hundred dollars. In order to receive this credit a
  volunteer firefighter or  volunteer  ambulance  worker  must  have  been
  active for the entire taxable year for which the credit is sought.
    (2)  If  a taxpayer receives a real property tax exemption relating to
  such service under title two of article four of the  real  property  tax
  law,  such  taxpayer  shall  not  be eligible for this credit; provided,
  however (A) if the taxpayer receives such real property tax exemption in
  the two thousand seven taxable year as a result  of  making  application
  therefor  in  a  prior  year  or (B) if the taxpayer notifies his or her
  assessor in writing by December thirty-first, two thousand seven of  the
  taxpayer's intent to discontinue such real property tax exemption by not
  re-applying  for  such  real  property tax exemption by the next taxable
  status date, such taxpayer shall be eligible for this credit for the two
  thousand seven taxable year.
    (3) In the case of a husband and wife who file a joint return and  who
  both  individually  qualify  for  the  credit under this subsection, the
  amount of the credit allowed shall be four hundred dollars.
    (4) If the amount of the credit allowed under this subsection for  any
  taxable  year  shall exceed the taxpayer's tax for such year, the excess
  shall be treated as an overpayment of tax to be credited or refunded  in
  accordance with the provisions of section six hundred eighty-six of this
  article, provided, however, that no interest shall be paid thereon.
    (f) Credit for the special additional mortgage recording tax.  (1) For
  taxable years beginning before nineteen hundred eighty-eight, a taxpayer
  shall  be  allowed  a  credit, to be credited against the tax imposed by
  this article, after allowance of any other credit  provided  under  this
  section and any credits permitted under sections six hundred twenty, six
  hundred  twenty-one  and  six  hundred  thirty-five of this article. The
  amount of the credit shall be  the  amount  of  the  special  additional
  mortgage  recording  tax paid by the taxpayer pursuant to the provisions
  of subdivision one-a of section two hundred fifty-three of this  chapter
  on  mortgages  recorded  on  and  after  January first, nineteen hundred
  seventy-nine. Provided, however, no credit shall be allowed with respect
  to a mortgage of real property principally improved or to be improved by
  one or more structures containing in the aggregate  not  more  than  six
  residential  dwelling  units, each dwelling unit having its own separate
  cooking facilities, where the real property is located in one or more of
  the  counties  comprising  the  metropolitan   commuter   transportation
  district  and  where  the  mortgage  is  recorded on or after May first,
  nineteen hundred eighty-seven. Provided, however,  no  credit  shall  be
  allowed with respect to a mortgage of real property principally improved
  or  to be improved by one or more structures containing in the aggregate
  not more than six residential dwelling units, each dwelling unit  having
  its  own separate cooking facilities, where the real property is located
  in the county of Erie and where the mortgage is recorded on or after May
  first, nineteen hundred eighty-seven.
    (2) In no event shall the amount of the credit herein provided for  be
  allowed  in  excess of the taxpayer's tax for such year. However, if the
  amount of credit otherwise  allowable  under  this  subsection  for  any
  taxable  year  results  in  such excess 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.
    (3)(A) Notwithstanding the provisions of paragraphs  one  and  two  of
  this subsection, for taxable years beginning after two thousand three, a
  taxpayer  shall  be  allowed  a  credit,  to be credited against the tax
  imposed by this article, equal to the amount of the  special  additional
  mortgage  recording  tax  paid  by  the  taxpayer  or,  in the case of a
  taxpayer who is a partner in a partnership, the partner's pro rata share
  of the amount of the special additional mortgage recording tax  paid  by
  the  partnership,  pursuant  to  the  provisions of subdivision one-a of
  section two hundred fifty-three of this chapter on mortgages recorded on
  and after January first, two thousand four. Provided, however, no credit
  shall be allowed with respect to a mortgage of real property principally
  improved by one or more structures containing in the aggregate not  more
  than  six  residential dwelling units, each dwelling unit having its own
  separate cooking facilities, where the real property is located  in  one
  or   more   of   the   counties  comprising  the  metropolitan  commuter
  transportation district and where the mortgage is recorded on  or  after
  January  first,  two thousand four. Provided further, no credit shall be
  allowed with respect to a mortgage of real property principally improved
  by one or more structures containing in the aggregate not more than  six
  residential  dwelling  units, each dwelling unit having its own separate
  cooking facilities, where the real property is located  in  Erie  county
  and  where  the  mortgage  is  recorded  on  or after January first, two
  thousand four.
    (B) If the amount of credit allowable under  this  paragraph  for  any
  taxable  year  exceeds  the  taxpayer's tax for such year, any amount of
  credit exceeding such tax may be carried over to the following  year  or
  years  and  may  be  deducted  from  the taxpayer's tax for such year or
  years. Provided further, such taxpayer may elect to  treat  such  unused
  amount  of credit as an overpayment of tax to be credited or refunded in
  accordance with the provisions of section six hundred eighty-six of this
  article except that no interest shall be paid on such overpayment.
    (g) Credit for solar and wind energy systems. (1) A taxpayer shall  be
  allowed  a credit for taxable years beginning on or after January first,
  nineteen hundred eighty-one and  ending  before  December  thirty-first,
  nineteen  hundred eighty-six against the tax imposed by this article for
  the purchase and installation of a solar or  wind  energy  system  by  a
  taxpayer in his principal residence, if such residence is located within
  the  state.  The amount of the credit shall be fifty-five percent of the
  expenditure incurred in purchasing and installing  any  such  system  or
  combination  thereof,  but  not  to  exceed  the  maximum  credit of two
  thousand seven hundred fifty dollars.
    (2) A solar or wind system is a system whose original use begins  with
  the  taxpayer;  which meets the eligibility criteria, if any, prescribed
  by the department of taxation and finance; and which is:
    (A) an active solar energy system which shall mean an  arrangement  or
  combination  of  components  designed  to  provide heating, cooling, hot
  water or electricity through the process of collecting solar  radiation,
  converting  it  to another form of energy, storing the converted energy,
  protecting  against  unnecessary  dissipation   and   distributing   the
  converted  energy,  and  which  requires  external  mechanical power for
  operation. This term shall not include pipes,  controls,  insulation  or
  other  equipment  which  are  part of the conventional heating, cooling,
  insulation or electrical system of a building; nor shall it include  any
  expenditure allocable to a swimming pool used as a storage medium;
    (B)  a  passive  solar  energy system, which shall mean a system which
  relies upon the  original  or  retrofitted  design  and  elements  of  a
  building to enhance the use of natural forces including solar radiation,
  winds  and  night-time coolness to provide heating, cooling or hot water
  through the process of collecting  solar  radiation,  converting  it  to
  another form of energy, storing the converted energy, protecting against
  unnecessary dissipation and distributing the converted energy, and which
  is  not  primarily  dependent  upon mechanical power for operation. This
  term shall not include pipes, controls, insulation  or  other  equipment
  which are part of the conventional heating, cooling or insulation system
  of  the  building;  nor  shall it include any expenditure allocable to a
  swimming pool used as a storage medium; or
    (C)  a  wind  energy  system,  which  shall  mean  an  arrangement  or
  combination  of  components,  including  power  conditioning  equipment,
  designed to provide electricity or mechanical energy through the process
  of converting wind energy into mechanical and/or  electric  energy,  and
  storing or distributing such energy.
    (3)  Where a solar or wind energy system is purchased and installed by
  a  condominium  management  association   or   a   cooperative   housing
  corporation,  a  taxpayer  who is a member of the condominium management
  association or who is a tenant-stockholder in  the  cooperative  housing
  corportion  may for the purpose of this subsection claim a proportionate
  share of the total expense as the expenditure for the  purposes  of  the
  credit attributable to his principal residence.
    (4)  Where  a  solar  or  wind  system is purchased and installed in a
  principal residence shared by two or more taxpayers the  amount  of  the
  credit  allowable  under this subsection for each such taxpayer shall be
  prorated according to the percentage of the total expenditure  for  such
  system contributed by each taxpayer.
    (5)  To  the  extent  that  a federal income tax credit shall apply to
  expenditures eligible for a credit under  this  subsection,  the  credit
  provided in this subsection shall be reduced so that the combined credit
  shall not exceed fifty-five percent of such expenditures or six thousand
  seven hundred fifty dollars, whichever is less.
    (6)  If  the  amount  of  credit allowable under this subsection shall
  exceed the taxpayer's tax for such year, the excess may be carried  over
  to  the  following year or years and may be deducted from the taxpayer's
  tax for such year or years.
    (7) If all  or  any  part  of  the  credit  provided  for  under  this
  subsection  was  allowed  or  carried  over from a prior taxable year or
  years, a taxpayer shall  reduce  the  allowable  credit  for  additional
  qualifying  expenditures  in  a subsequent tax year by the amount of the
  credit previously allowed or  carried  over;  provided  however  that  a
  credit  previously  allowed or carried over from a prior taxable year or
  years shall not be taken  into  account  in  determining  the  allowable
  credit  for  the  purchase  and  installation  of a solar or wind energy
  system in a subsequent principal residence.
    (8)  For  the  purpose  of  determining  the  amount  of  the   actual
  expenditure incurred in purchasing and installing a solar or wind energy
  system,  the amount of any federal, state or local grant received by the
  taxpayer, which was used for the purchase and/or  installation  of  such
  system  and  which was not included in the gross income of the taxpayer,
  shall not be taken into account.
    (9) Notwithstanding any other provision of law, if a credit is allowed
  under this subsection for a renewable energy system with respect to  any
  property, the increase in the basis of such property which would but for
  this  subsection  result  from  such expenditure shall be reduced by the
  amount of the credit allowed. When the sale or other disposition of such
  property results  in  the  nonrecognition  of  gain  under  section  one
  thousand  thirty-four  of  the  internal  revenue code, a like reduction
  shall be made to the basis of the new residence, if  such  residence  is
  located within the state.
    (g-1) Solar energy system equipment credit. (1) General. An individual
  taxpayer  shall  be  allowed  a  credit  against the tax imposed by this
  article equal to twenty-five percent of qualified  solar  energy  system
  equipment  expenditures.  This  credit  shall  not exceed three thousand
  seven hundred fifty dollars for qualified solar energy equipment  placed
  in  service  before September first, two thousand six, and five thousand
  dollars for qualified solar energy equipment placed  in  service  on  or
  after September first, two thousand six.
    (2) Qualified solar energy system equipment expenditures. (A) The term
  "qualified   solar   energy   system   equipment   expenditures"   means
  expenditures for the purchase of solar energy system equipment which  is
  installed  in  connection with residential property which is (i) located
  in this state and (ii) which is used by  the  taxpayer  as  his  or  her
  principal  residence  at  the  time the solar energy system equipment is
  placed in service.
    (B)  Such  qualified  expenditures  shall  include  expenditures   for
  materials,  labor  costs  properly  allocable  to  on-site  preparation,
  assembly  and  original  installation,  architectural  and   engineering
  services,  and designs and plans directly related to the construction or
  installation of the solar energy system equipment.
    (C) Such qualified expenditures shall not include  interest  or  other
  finance charges.
    (3)  Solar  energy  system  equipment.  The  term "solar energy system
  equipment" shall  mean  an  arrangement  or  combination  of  components
  utilizing  solar  radiation,  which,  when  installed  in  a  residence,
  produces energy designed to  provide  heating,  cooling,  hot  water  or
  electricity  for  use  in such residence. Such arrangement or components
  shall not include equipment connected to solar energy  system  equipment
  that  is  a  component  of part or parts of a non-solar energy system or
  which uses any sort of recreational facility or equipment as  a  storage
  medium. Solar energy system equipment that generates electricity for use
  in  a  residence  must  conform  to applicable requirements set forth in
  section sixty-six-j of the public service law. Provided, however,  where
  solar   energy   system  equipment  is  purchased  and  installed  by  a
  condominium management association or a cooperative housing corporation,
  for purposes of this subsection only, the term "ten kilowatts"  in  such
  section sixty-six-j shall be read as "fifty kilowatts."
    (4)  Multiple  taxpayers.  Where  solar  energy  system  equipment  is
  purchased and installed in a principal residence shared by two  or  more
  taxpayers,  the amount of the credit allowable under this subsection for
  each such taxpayer shall be prorated according to the percentage of  the
  total  expenditure for such solar energy system equipment contributed by
  each taxpayer.
    (5) Proportionate  share.  Where  solar  energy  system  equipment  is
  purchased  and  installed  by  a condominium management association or a
  cooperative housing corporation, a taxpayer  who  is  a  member  of  the
  condominium management association or who is a tenant-stockholder in the
  cooperative  housing  corporation may for the purpose of this subsection
  claim a proportionate share of the total expense as the expenditure  for
  the purposes of the credit attributable to his principal residence.
    (6)  Grants. For purposes of determining the amount of the expenditure
  incurred in purchasing and installing solar energy system equipment, the
  amount of any federal, state or local grant received  by  the  taxpayer,
  which  was  used  for the purchase and/or installation of such equipment
  and which was not included in the federal gross income of the  taxpayer,
  shall not be included in the amount of such expenditures.
    (7)  When  credit  allowed.  The  credit  provided for herein shall be
  allowed with respect to the  taxable  year,  commencing  after  nineteen
  hundred  ninety-seven,  in  which  the  solar energy system equipment is
  placed in service.
    (8) Carryover of credit. If the amount of the credit,  and  carryovers
  of  such  credit,  allowable  under this subsection for any taxable year
  shall exceed the taxpayer's tax for such year, such excess amount may be
  carried over to the five taxable years next following the  taxable  year
  with respect to which the credit is allowed and may be deducted from the
  taxpayer's tax for such year or years.
    (g-2)  Fuel  cell  electric generating equipment credit.  (1) General.
  For taxable years beginning before January first, two thousand nine,  an
  individual taxpayer shall be allowed a credit against the tax imposed by
  this  article  equal  to  twenty percent of qualified fuel cell electric
  generating equipment expenditures. This  credit  shall  not  exceed  one
  thousand  five  hundred  dollars per generating unit with respect to any
  taxable year. The credit provided  for  herein  shall  be  allowed  with
  respect  to  the taxable year in which the fuel cell electric generating
  equipment is placed in service.
    (2) Qualified fuel cell electric  generating  equipment  expenditures.
  (A)  Qualified  fuel cell electric generating equipment expenditures are
  the  costs,  incurred  on  or  after  July  first,  two  thousand  five,
  associated  with  the purchase of on-site electricity generation systems
  utilizing  proton  exchange  membrane  fuel  cells,  providing  a  rated
  baseload  capacity  of  no  less  than one kilowatt and no more than one
  hundred kilowatts of electricity, which are located in this state at the
  time the qualified fuel cell electric generating equipment is placed  in
  service.
    (B)  Qualified  fuel  cell  electric generating equipment expenditures
  shall also include costs, incurred on or after July first, two  thousand
  five,  for  materials,  labor  for  on-site  preparation,  assembly  and
  original installation, engineering services, designs and plans  directly
  related to construction or installation and utility compliance costs.
    (C)  Such  qualified  expenditures shall not include interest or other
  finance charges.
    (3) Multiple taxpayers. Where fuel cell electric generating  equipment
  is  purchased  and  installed  in a principal residence shared by two or
  more taxpayers, the amount of the credit allowable under this subsection
  for each such taxpayer shall be prorated according to the percentage  of
  the  total  expenditure for such fuel cell electric generating equipment
  contributed by each taxpayer.
    (4) Grants. For purposes of determining the amount of the  expenditure
  incurred  in  purchasing  and  installing  fuel cell electric generating
  equipment, the amount of any federal, state or local grant  received  by
  the  taxpayer,  which  was  used for the purchase and/or installation of
  such equipment and which was not included in the federal gross income of
  the taxpayer, shall not be included in the amount of such expenditures.
    (5) Carryover of credit. If the amount of the credit,  and  carryovers
  of  such  credit,  allowable  under this subsection for any taxable year
  shall exceed the taxpayer's tax for such year, such excess amount may be
  carried over to the five taxable years next following the  taxable  year
  with respect to which the credit is allowed and may be deducted from the
  taxpayer's tax for such year or years.
    (h)  Research  and  development  tax  credit.    (1) For taxable years
  commencing prior to January  first,  nineteen  hundred  eighty-seven,  a
  taxpayer  shall  be  allowed  a  credit  against the tax imposed by this
  article after allowance of any other credit provided under this  section
  and any credits permitted under sections six hundred twenty, six hundred
  twenty-one  and  six  hundred thirty-five of this article. The amount of
  the credit shall be ten percent of the cost or other basis  for  federal
  income  tax  purposes of tangible personal property, including buildings
  and other structural components of buildings, described in paragraph two
  of this subsection acquired, constructed or  reconstructed,  or  erected
  after June thirtieth, nineteen hundred eighty-two.
    (2)  A  credit  shall  be  allowed  under this section 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 used or are to be  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.
    (3) A taxpayer shall not be allowed a  credit  under  this  subsection
  with respect to any property described in paragraphs one and two of this
  subsection,  if  such  property  qualifies  for the modification allowed
  under either paragraph three or paragraph  four  of  subsection  (g)  of
  section  six  hundred  twelve whether or not such amount shall have been
  subtracted, or if a credit is taken pursuant to subsection (a)  of  this
  section.  Provided,  however,  with  respect to property which qualifies
  under either clause (A), (B) or (C) of paragraph four of subsection  (g)
  because  such  property  was ordered on or before December thirty-first,
  nineteen hundred sixty-eight, but with respect to which  no  expenditure
  has  been  paid  or  incurred  at  such  date, the taxpayer may elect to
  subtract the amount allowable under clause (A), (B) or (C) or  may  take
  the credit provided by this subsection, but not both.
    (4)  A  taxpayer  shall  not be allowed a credit under this subsection
  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. 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
  subsection 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.
    (5) If the amount of credit allowable under this  subsection  for  any
  taxable  year  shall exceed the taxpayer's tax for such year, the excess
  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, nineteen hundred ninety-four.
    (6)  (A)  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 subsection 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.
    (B) Except with respect to that property to which subparagraph (D)  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  subsection 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.
    (C)  Except with respect to that property to which subparagraph (D) 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 subsection 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.
    (D) 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 subsection 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.
    (i) S corporation credits.
    (1)  For purposes of determining the application under this section of
  the credit provisions enumerated in the following table,  a  shareholder
  of a New York S corporation:
    (A)  shall  be  treated as the taxpayer with respect to his or her pro
  rata share  of  the  corresponding  credit  base  of  such  corporation,
  determined  for the corporation's taxable year ending with or within the
  shareholder's taxable year and
    (B) shall be treated as the owner of a new business  with  respect  to
  such  share  if  the corporation qualifies as a new business pursuant to
  paragraph (j) of subdivision twelve of section two hundred ten  of  this
  chapter.
 
                                       The corporation's credit base under
                                       section two hundred ten or section
  With respect to the following        fourteen hundred fifty-six of this
  credit under this section:           chapter is:
 
  (i) Investment tax credit under      Investment credit base or qualified
  subsection (a)                       rehabilitation expenditures under
                                       subdivision twelve of section two
                                       hundred ten
 
  (ii) Empire zone investment          Cost or other basis under
  tax credit under subsection (j)      subdivision twelve-B of section
                                       two hundred ten
 
  (iii) Empire zone wage tax credit    Eligible wages under subdivision
  under subsection (k)                 nineteen of section two hundred
                                       ten or subsection (e) of section
                                       fourteen hundred fifty-six
 
  (iv) Empire zone capital tax         Qualified investments and
  credit under subsection (l)          contributions under subdivision
                                       twenty of section two hundred ten
                                       or subsection (d) of section
                                       fourteen hundred fifty-six
 
  (v) Agricultural property tax        Allowable school district property
  credit under subsection (n)          taxes under subdivision twenty-two
                                       of section two hundred ten
 
  (vi) Credit for employment of        Qualified first-year wages or
  persons with disabilities            qualified second-year wages under
  under subsection (o)                 subdivision twenty-three of
                                       section two hundred ten or
                                       subsection (f) of section
                                       fourteen hundred fifty-six
 
  (vii) Employment incentive credit    Applicable investment credit base
  under subsection (a-1)               under subdivision twelve-D of
                                       section two hundred ten
 
  (viii) Empire zone employment        Applicable investment credit
  incentive credit under subsection    under subdivision twelve-C of
  (j-1)                                section two hundred ten
 
  (ix) Alternative fuels credit        Cost under subdivision twenty-four
  under subsection (p)                 of section two hundred ten
 
  (x) Qualified emerging technology    Applicable credit base under
  company employment credit under      subdivision twelve-E of section
  subsection (q)                       two hundred ten
 
  (xi) Qualified emerging technology   Qualified investments under
  company capital tax credit under     subdivision twelve-F of section
  subsection (r)                       two hundred ten
 
  (xii) Credit for purchase of an      Cost of an automated external
  automated external defibrillator     defibrillator under subdivision
  under subsection (s)                 twenty-five of section two hundred
                                       ten or subsection (j) of section
                                       fourteen hundred fifty-six
 
  (xiii) Low-income housing credit     Credit amount under subdivision
  under subsection (x)                 thirty of section two hundred ten
                                       or subsection (l) of section
                                       fourteen hundred fifty-six
  (xiv) Credit for transportation      For taxable years beginning
  improvement contributions under      before January first, two thousand
  subsection (z)                       nine, amount of credit under
                                       subdivision thirty-two of
                                       section two hundred ten
                                       or subsection (n) of section
                                       fourteen hundred fifty-six
 
  (xv) QEZE credit for real property   Amount of credit under subdivision
  taxes under subsection (bb)          twenty-seven of section two hundred
                                       ten or subsection (o) of section
                                       fourteen hundred fifty-six
 
  (xvi) QEZE tax reduction credit      Amount of benefit period factor,
  under subsection (cc)                employment increase factor and zone
                                       allocation factor (without regard
                                       to pro ration) under subdivision
                                       twenty-eight of section two hundred
                                       ten or subsection (p) of section
                                       fourteen hundred fifty-six and
                                       amount of tax factor as determined
                                       under subdivision (f) of section
                                       sixteen
 
  (xvii) Green building credit under   Amount of green building credit
  subsection (y)                       under subdivision thirty-one of
                                       section two hundred ten or
                                       subsection (m) of section fourteen
                                       hundred fifty-six
 
  (xviii) Credit for long-term care    Qualified costs under subdivision
  insurance premiums under subsection  twenty-five-a of section two
  (aa)                                 hundred ten or subsection (k) of
                                       section fourteen hundred fifty-six
 
  (xix) Brownfield redevelopment       Amount of credit under subdivision
  credit under subsection (dd)         thirty-three of section two hundred
                                       ten or subsection (q) of section
                                       fourteen hundred fifty-six
 
  (xx) Remediated brownfield credit    Amount of credit under subdivision
  for real property taxes for          thirty-four of section two hundred
  qualified sites under subsection     ten or subsection (r) of section
  (ee)                                 fourteen hundred fifty-six
 
  (xxi) Environmental remediation      Amount of credit under subdivision
  insurance credit under subsection    thirty-five of section two hundred
  (ff)                                 ten or subsection (s) of section
                                       fourteen hundred fifty-six
 
  *(xxii) Empire state film            Amount of credit for qualified
  production credit under              production costs in production of a
  subsection (gg)                      qualified film under subdivision
                                       thirty-six of section two hundred
                                       ten
  * NB Repealed January 1, 2014
 
  (xxiii) Qualified emerging           Qualifying expenditures and
  technology company facilities,       development activities under
  operations and training credit       subdivision twelve-G of section two
  under subsection (nn)                hundred ten
 
  (xxiv) Security training tax credit  Amount of credit under subdivision
  under subsection (ii)                thirty-seven of section two hundred
                                       ten or under subsection (t) of
                                       section fourteen hundred fifty-six
 
  (xxv) Credit for qualified fuel      For taxable years beginning before
  cell electric generating             January first, two thousand nine,
  equipment expenditures               amount of credit under subdivision
  under subsection (g-2)               thirty-seven of section two hundred
                                       ten or subsection (t) of section
                                       fourteen hundred fifty-six
 
  *(xxvi) Empire state commercial      Amount of credit for qualified
  production credit under subsection   production costs in production of
  (jj)                                 a qualified commercial under
                                       subdivision thirty-eight of
                                       section two hundred ten
  * NB Repealed December 31, 2011
 
  (xxvii) Biofuel production tax       Amount of credit under subdivision
  credit under subsection (jj)         thirty-eight of section two hundred
                                       ten
 
  (xxviii) Clean heating fuel credit   Amount of credit under subdivision
  under subsection (mm)                thirty-nine of section two hundred
                                       ten
 
  (xxix) Credit for rehabilitation     Amount of credit under subdivision
  of historic properties under         forty of section two hundred ten
  subsection (oo)
 
  *(xxx) Credit for companies who      Amount of credit under subdivision
  provide transportation to            forty of section two hundred ten
  individuals with disabilities
  under subsection (oo)
  * NB Repealed December 31, 2010
 
    (2)  The  reduction  of  a shareholder's proportionate interest in the
  corporation shall be treated as a disposition of property  for  which  a
  redetermination of credit is required under subsections (a), (j) and (l)
  of this section.
    (3)  Transition  provisions  relating to S corporation credits allowed
  for taxable years beginning before  nineteen  hundred  ninety-four.  (A)
  Credit  carryover. Any excess credit under subparagraph (A) of paragraph
  one of this subsection, as it was in effect for taxable years  beginning
  before  nineteen  hundred  ninety-four,  may  be  carried  over  to  the
  shareholder's following year or years and  may  be  deducted  from  such
  shareholder's  tax for such year or years, except that any excess credit
  attributable to subdivision twelve of section two hundred  ten  of  this
  chapter  shall  in no event be carried over beyond the ten taxable years
  next following the taxable year of origin.
    (B) Credit recapture. Any redetermination of credit required  by  this
  subsection  as  it  was  in  effect  for  taxable years beginning before
  nineteen hundred ninety-four, upon disposition or cessation of qualified
  use of  property  pursuant  to  paragraph  (g)  of  subdivision  twelve,
  paragraph  (f)  of  subdivision twelve-B or paragraph (f) of subdivision
  eighteen of section two hundred ten of this chapter shall be  attributed
  in  pro  rata  shares  to the shareholders who were allowed credit under
  this subsection with respect to such property, and the  reduction  of  a
  shareholder's  proportionate  stock  interest  shall  be  treated  as  a
  disposition of property for which a redetermination of credit under such
  paragraphs is required with respect to such shareholder.
    (4) Transition provisions relating to credit  for  special  additional
  mortgage  recording  tax. In the case of the special additional mortgage
  recording tax  credit,  in  addition  to  any  carryover  thereof  under
  paragraph  three  of this subsection (relating to carryover from taxable
  years of the shareholder beginning before nineteen hundred ninety-four),
  there also shall be allowed a credit for such tax which is due and  paid
  by  an  S  corporation in a taxable year of the corporation beginning in
  nineteen hundred ninety-three, which year ends within the  shareholder's
  taxable year beginning in nineteen hundred ninety-four. Any such credit,
  and   carryover  thereof,  shall  be  allowed  as  provided  under  this
  subsection as it was  in  effect  for  taxable  years  beginning  before
  nineteen hundred ninety-four.
    (j)  Empire  zone investment tax credit (EZ-ITC). (1) A taxpayer shall
  be allowed a credit, to be computed as hereinafter provided, against the
  tax imposed by this  article  where  the  taxpayer  has  been  certified
  pursuant  to article eighteen-B of the general municipal law. The amount
  of such credit shall be eight 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  two  of  this subsection, 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,  the  credit  shall  be
  eight  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.
    (2)  A  credit  shall be allowed under this subsection with respect to
  tangible  personal  property  and  other  tangible  property,  including
  buildings   and  structural  components  of  buildings  which:  (A)  are
  depreciable pursuant to section one hundred sixty-seven of the  internal
  revenue  code,  (B)  have  a  useful life of four years or more, (C) are
  acquired by purchase as defined in section one hundred seventy-nine  (d)
  of  the  internal  revenue  code,  (D)  have  a  situs in an empire zone
  designated as  such  pursuant  to  article  eighteen-B  of  the  general
  municipal  law,  and (E) are (i) 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,  (ii)  industrial  waste  treatment
  facilities  or  air  pollution control facilities used in the taxpayer's
  trade  or  business,  (iii)  research  and  development  property,  (iv)
  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, or (v) 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. For purposes of clauses (iv) and (v) of this
  subparagraph,  property  purchased  by  a  taxpayer  affiliated  with  a
  regulated  broker,  dealer or registered investment adviser is allowed a
  credit under this subsection if the property is used by  its  affiliated
  regulated  broker, dealer or registered investment adviser in accordance
  with this subsection. For purposes of determining  if  the  property  is
  principally  used in qualifying uses, the uses by the taxpayer described
  in clauses (iv) and (v) of  this  subparagraph  may  be  aggregated.  In
  addition,  the  uses  by  the taxpayer, its affiliated regulated broker,
  dealer, and registered investment adviser under either or both of  those
  clauses  may  be  aggregated. Provided, however, a taxpayer shall not be
  allowed the credit provided by clauses (iv) and (v) of this subparagraph
  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.  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  this
  subsection, the term "goods" shall not include electricity. For purposes
  of  this  paragraph, manufacturing shall mean the process of working raw
  materials into wares suitable for use or which  gives  new  shapes,  new
  quality or new combination 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  paragraph,  the  terms
  "research   and   development  property",  "industrial  waste  treatment
  facilities", and "air  pollution  control  facilities"  shall  have  the
  meanings ascribed thereto by clauses (ii), (iii) and (iv), respectively,
  of  subparagraph (B) of paragraph two of subsection (a) of this section,
  and the provisions of subparagraph  (C)  of  such  paragraph  two  shall
  apply.
    (3)  A  taxpayer  shall  not be allowed a credit under this subsection
  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, or
  registered investment adviser that uses such property in accordance with
  clause (iv) or  (v)  of  subparagraph  (E)  of  paragraph  two  of  this
  subsection.  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 subsection 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.
    (4) If the amount of credit allowed  under  this  subsection  for  any
  taxable  year  shall exceed the taxpayer's tax for such year, the excess
  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 carrying over
  any  such excess, a taxpayer who qualifies as an owner of a new business
  for purposes of paragraph ten of subsection (a) of this section may,  at
  his option, receive fifty percent of such excess as a refund. Any refund
  paid  pursuant  to  this  paragraph shall be deemed to be a refund of an
  overpayment of tax as provided in section six hundred eighty-six of this
  article, provided, however, that no interest shall be paid thereon.
    (4-a) Any carry over 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.
    (5) At the option of the taxpayer,  air  or  water  pollution  control
  facilities which qualify for elective modifications under subsection (h)
  of  section  six  hundred twelve, or research and development facilities
  which qualify for elective modification under paragraphs three and  four
  of  subsection  (g)  of  section  six  hundred twelve, or property which
  qualifies for the credit provided under subsection (a) or  (h)  of  this
  section  may  be treated as property principally used by the taxpayer in
  the  production  of  goods  by  manufacturing,  processing,  assembling,
  mining,   refining,   extracting,  farming,  agriculture,  horticulture,
  floriculture, viticulture, or commercial fishing, provided the  property
  otherwise  qualifies  under  paragraph  two of this subsection, in which
  event a deduction shall not be allowed under such subsection (h) or such
  paragraphs three and four of subsection (g) and a credit  shall  not  be
  allowed under such subsection (a) or (h).
    (6)  (A)  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 section which represents the ratio which the  months  of  qualified
  use  bear  to the months of useful life. If the 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 subsection.  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 subsection, useful life of property
  shall be the same as the taxpayer uses for  depreciation  purposes  when
  computing his federal income tax liability.
    (B)  Except with respect to that property to which subparagraph (D) 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 subsection 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.
    (C)  Except with respect to that property to which subparagraph (D) 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 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
  subsection 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.
    (D)  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 subsection 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.
    (E) 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.
    (F)(i) 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.
    (ii) 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 augmented
  by an amount equal to the product of the amount of credit, with  respect
  to 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 (subject to the  limit  set  forth  in  this
  subparagraph)  and  the underpayment rate of interest (without regard to
  compounding) set by the commissioner of taxation and finance pursuant to
  subdivision (j) of section six hundred ninety-seven of this chapter,  in
  effect  on  the last day of the taxable year. The limit 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  amount  deducted from tax shall be established in accordance
  with the date of placement in service of such  property  in  the  empire
  zone.
    (iii)  In  no event shall the amount of the credit allowed pursuant to
  this subsection be rendered, solely by reason  of  clause  (i)  of  this
  subparagraph,  less  than the amount of the credit to which the taxpayer
  would otherwise be entitled under subsection (a) of this section.
    (iv) Notwithstanding any other provision of this  subsection,  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 four of this subsection 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  subsection
  was allowed.
    (G)  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 (i), (ii) or (iii) of subparagraph (E) of
  paragraph two of this subsection 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
  (i) or (iii) of subparagraph (E) of paragraph two of this subsection.
    (H)  Except as provided in this subparagraph, this paragraph shall not
  apply to a credit allowed by this subsection 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
  of such property (or a project that includes such property)  equaled  or
  exceeded three hundred million dollars and such partner owned his or her
  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.
    (j-1) Empire zone employment incentive credit. (1) Where a taxpayer is
  allowed  a  credit  under  subsection  (j) 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 subsection (j) is
  allowed, with respect to such property, whether  or  not  deductible  in
  such  taxable  year or in subsequent taxable years pursuant to paragraph
  four of subsection (j) of this section, of thirty percent of the  credit
  allowable  under such subsection (j); provided, however, that the credit
  allowable under this subsection 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 or, where
  applicable, in the geographic area subsequently constituting such  zone,
  during the taxable year immediately preceding the taxable year for which
  the  credit  under such subsection (j) is allowed and provided, further,
  that in the case of a new business,  the  credit  allowable  under  this
  subsection  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 subsection (j) is
  allowed.
    (2) The average number of employees employed in an  empire  zone,  or,
  where  applicable, in the geographic area subsequently constituting such
  zone, in a taxable year shall be computed by ascertaining the number  of
  such employees within such zone, or, where applicable, in the geographic
  area  subsequently  constituting  such zone, 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 in each  of
  such  dates  and  dividing  the  sum  so  obtained by the number of such
  abovementioned dates occurring within the taxable year.
    (3) If the amount of credit allowed  under  this  subsection  for  any
  taxable  year  shall exceed the taxpayer's tax for such year, the excess
  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 carrying over
  any  such excess, a taxpayer who qualified as an owner of a new business
  for purposes of paragraph ten of subsection (a) of this section may,  at
  his option, receive fifty percent of such excess as a refund. Any refund
  paid  pursuant  to  this  paragraph shall be deemed to be a refund of an
  overpayment of tax as provided in section six hundred eighty-six of this
  article, provided, however, that no interest shall be paid thereon.
    (3-a) Any carry over of a credit from prior taxable years will not  be
  allowed  to  an empire zone enterprise which is the basis of the credit,
  if an empire zone retention certificate is not  issued  to  such  entity
  pursuant  to  subdivision  (w) of section nine hundred fifty-nine of the
  general municipal law.
    (k) Empire zone wage tax credit. (1) A taxpayer  shall  be  allowed  a
  credit,  to be computed as hereinafter provided, against the tax imposed
  by this article, where the  taxpayer  has  been  certified  pursuant  to
  article  eighteen-B  of  the  general  municipal law. The amount of such
  credit shall be as prescribed in paragraph four of this subsection.
    (2) For the purposes of this subsection,  the  following  terms  shall
  have the following meanings: (A) "Empire zone wages" means wages paid by
  the  taxpayer  for  full-time  employment during the taxable year, in an
  area designated or previously designated  as  an  empire  zone  or  zone
  equivalent  area pursuant to article eighteen-B of the general municipal
  law, where such employment is in a job created in the  area  (i)  during
  the  period of its designation as an empire zone, (ii) within four years
  of the expiration of such designation, or  (iii)  during  the  ten  year
  period   immediately  following  the  date  of  designation  as  a  zone
  equivalent area, provided, however, that if the taxpayer's certification
  under article eighteen-B of the general municipal law  is  revoked  with
  respect to an empire zone or zone equivalent area, any wages paid by the
  taxpayer,  on  or  after the effective date of such decertification, for
  employment in such zone shall not constitute empire zone wages.
    (B) "Targeted employee" means a New York resident who receives  empire
  zone wages and who is (i) an eligible individual under the provisions of
  the  targeted jobs tax credit (section fifty-one of the internal revenue
  code), (ii) eligible for benefits under the provisions of the  workforce
  investment  act  as  a  dislocated worker or low-income individual (P.L.
  105-220, as amended), (iii) a recipient of public  assistance  benefits,
  (iv)  an  individual whose income is below the most recently established
  poverty rate promulgated by the United States department of commerce, or
  a member of a family whose family income  is  below  the  most  recently
  established  poverty  rate promulgated by the appropriate federal agency
  or (v) an honorably discharged member of any branch of the armed  forces
  of the United States.
    An  individual  who  satisfies  the  criteria set forth in clause (i),
  (ii), (iv) or (v) at the time of initial  employment  in  the  job  with
  respect  to  which the credit is claimed, or who satisfies the criterion
  set forth in clause (iii) at  such  time  or  at  any  time  within  the
  previous  two  years,  shall  be  a  targeted  employee  so long as such
  individual continues to receive empire zone wages.
    (C) "Average  number  of  individuals  employed  full-time"  shall  be
  computed  by ascertaining the number of such individuals 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
  during each taxable year or other applicable period, by adding  together
  the  number  of  such  individuals ascertained on each of such dates and
  dividing the sum so obtained by  the  number  of  such  dates  occurring
  within such taxable year or other applicable period.
    (3)  The  credit  provided  for herein shall be allowed only where the
  average number of individuals employed full-time by the taxpayer in  (i)
  the  state and (ii) the empire zone or area previously constituting such
  zone or zone equivalent  area,  during  the  taxable  year  exceeds  the
  average number of such individuals employed full-time by the taxpayer in
  (i)  the  state  and  (ii)  such zone or area subsequently or previously
  constituting such zone  or  such  zone  equivalent  area,  respectively,
  during  the  four  years immediately preceding the first taxable year in
  which the credit is claimed with respect to such zone or area. Where the
  taxpayer provided full-time employment within (i) the state or (ii) such
  zone or area during only a portion of such four-year  period,  then  for
  purposes  of  this  paragraph  the  term "four years" shall be deemed to
  refer instead to such portion, if any.
    The credit shall be allowed only with respect  to  the  first  taxable
  year  during  which  payments  of  empire  zone  wages  are made and the
  conditions set forth in this paragraph are satisfied, and  with  respect
  to each of the four taxable years next following (but only, with respect
  to  each of such years, if such conditions are satisfied), in accordance
  with paragraph four of this subsection. Subsequent certifications of the
  taxpayer pursuant to article eighteen-B of the general municipal law, at
  the same or a different  location  in  the  same  empire  zone  or  zone
  equivalent  area  or  at  a  location in a different empire zone or zone
  equivalent area, shall not extend the five taxable year time  limitation
  on  the  allowance  of  the  credit set forth in the preceding sentence.
  Provided, further, however, that no credit shall be allowed with respect
  to any taxable year beginning more than four years following the taxable
  year in which designation as an empire zone expired  or  more  than  ten
  years after the designation as a zone equivalent area.
    (4) The amount of the credit shall equal the sum of
    (i)  the  product  of three thousand dollars and the average number of
  individuals employed full-time by the taxpayer, computed pursuant to the
  provisions of subparagraph (C) of paragraph two of this subsection, who
    (I) received empire zone wages for more than half of the taxable year,
    (II) received with  respect  to  more  than  half  of  the  period  of
  employment by the taxpayer during the taxable year, an hourly wage which
  was  at  least  one  hundred  thirty-five  percent  of  the minimum wage
  specified in section six hundred fifty-two of the labor law, and
    (III) are targeted employees; and
    (ii) the product of fifteen hundred dollars and the average number  of
  individuals (excluding individuals described in subparagraph (i) of this
  paragraph)  employed full-time by the taxpayer, computed pursuant to the
  provisions of subparagraph (C) of paragraph two of this subsection,  who
  received empire zone wages for more than half of the taxable year.
    Provided,  further,  however, that the credit provided for herein with
  respect to the taxable year,  and  carryovers  of  such  credit  to  the
  taxable  year,  deducted  from  the  tax  otherwise due, may not, in the
  aggregate, exceed fifty percent of the tax  imposed  under  section  six
  hundred  one  computed  without  regard to any credit provided for under
  this article.
    (iii)  For  purposes  of  calculating  the  amount  of   the   credit,
  individuals  employed  within  an  empire  zone  or zone equivalent area
  within the immediately preceding sixty months by a  related  person,  as
  such  term  is  defined  in  subparagraph  (c)  of  paragraph  three  of
  subsection (b) of  section  four  hundred  sixty-five  of  the  internal
  revenue code, shall not be included in the average number of individuals
  described  in  subparagraph  (i) or subparagraph (ii) of this paragraph,
  unless such related  person  was  never  allowed  a  credit  under  this
  subsection  with  respect  to  such  employees.  For  purposes  of  this
  subparagraph, a "related person" shall include  an  entity  which  would
  have  qualified as a "related person" to the taxpayer if it had not been
  dissolved, liquidated, merged with another entity or otherwise ceased to
  exist or operate.
    (iv) If a taxpayer is certified in an  empire  zone  designated  under
  subdivision  (a)  or  (d)  of  section  nine  hundred fifty-eight of the
  general municipal law, the dollar amounts specified  under  subparagraph
  (i) or (ii) of this paragraph shall be increased by five hundred dollars
  for  each  qualifying  individual  under such subparagraph who received,
  during the taxable year, wages in excess of forty thousand dollars.
    (v) The requirement in this paragraph that an  employee  must  receive
  empire zone wages for more than half the taxable year shall not apply in
  the  first  taxable year of a taxpayer satisfying the criteria set forth
  in this subparagraph. In such a case,  the  credit  allowed  under  this
  subsection  shall  be  computed  by  utilizing the number of individuals
  (excluding  general  executive  officers)  employed  full  time  by  the
  taxpayer  on  the  last  day of its first taxable year. A taxpayer shall
  satisfy the following criteria:  (I)  such  taxpayer  acquired  real  or
  tangible  personal property during its first taxable year from an entity
  which is not a related person (as such term is  defined  in  subdivision
  (g) of section fourteen of this chapter); (II) the first taxable year of
  such  taxpayer  shall  be  a  short  taxable year of not more than seven
  months in  duration;  and  (III)  the  number  of  individuals  employed
  full-time  on  the last day of such first taxable year shall be at least
  one hundred ninety and substantially all of such individuals  must  have
  been previously employed by the entity from whom such taxpayer purchased
  its assets.
    (5)  If the amount of the credit and carryovers of such credit allowed
  under this subsection for any taxable year shall exceed  the  taxpayer's
  tax  for  such  year,  the  excess, as well as any part of the credit or
  carryovers of such credit, or both, which may not be deducted  from  the
  tax  otherwise  due  by  reason  of the final sentence in paragraph four
  hereof, 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
  carrying over any such excess, a taxpayer who qualifies as an owner of a
  new business for purposes of paragraph ten of  subsection  (a)  of  this
  section  may,  at  his option, receive fifty percent of such excess as a
  refund. Any refund paid pursuant to this paragraph shall be deemed to be
  a refund of an overpayment of tax as provided  in  section  six  hundred
  eighty-six of this article, provided, however, that no interest shall be
  paid thereon.
    (5-a)  Any carry over 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.
    (l) Empire zone capital tax credit.  (1) A taxpayer shall be allowed a
  credit against the tax imposed by this article. The amount of the credit
  shall  be  equal  to  twenty-five  percent  of  the sum of the following
  investments and contributions made during the taxable year and certified
  by the commissioner of  economic  development:  (A)  for  taxable  years
  beginning before January first, two thousand five, qualified investments
  made  in, or contributions in the form of donations made to, one or more
  empire zone capital corporations established pursuant  to  section  nine
  hundred  sixty-four of the general municipal law prior to January first,
  two  thousand  five,  (B)  qualified  investments  in   certified   zone
  businesses  which  during  the twelve month period immediately preceding
  the month in which such investment is made employed full-time within the
  state an average number of individuals of two hundred  fifty  or  fewer,
  computed pursuant to the provisions of subparagraph (C) of paragraph two
  of  subsection (k) of this section, 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 (C)
  contributions of money to community development projects as  defined  in
  regulations  promulgated  by  the  commissioner of economic development.
  "Qualified  investments"  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 three hundred thousand dollars, and
  shall not exceed one  hundred  thousand  dollars  with  respect  to  the
  investments  and  contributions  described in each of subparagraphs (A),
  (B) and (C) of this paragraph.
    (1-a) Any carry over of a credit from prior taxable years will not  be
  allowed  to  an empire zone enterprise which is the basis of the credit,
  if an empire zone retention certificate is not  issued  to  such  entity
  pursuant  to  subdivision  (w) of section nine hundred fifty-nine of the
  general municipal law.
    (2) (A) If the amount of the credit  and  carryovers  of  such  credit
  allowed  under  this  subsection  for  any taxable year shall exceed the
  taxpayer's tax for such year, 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 subparagraph, 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 from the tax
  otherwise due may not, in the aggregate, exceed fifty percent of the tax
  imposed  under  section  six  hundred one computed without regard to any
  credit provided for by this section.
    (B) In the case of a husband  or  wife  who  is  required  to  file  a
  separate  return,  the  limitation provided for in paragraph one of this
  subsection shall be fifty  thousand  dollars  in  lieu  of  one  hundred
  thousand dollars and one hundred fifty thousand dollars in lieu of three
  hundred  thousand  dollars,  unless  the  spouse  of the taxpayer has no
  credit allowable under this subsection for  the  taxable  year  of  such
  spouse which ends within or with the taxpayer's taxable year.
    (C)  In the case of an estate or trust, the limitation provided for in
  paragraph one of this subsection shall be reduced  to  an  amount  which
  bears the same ratio to one hundred thousand dollars and an amount which
  bears the same ratio to three hundred thousand dollars as the portion of
  the   income   of  the  estate  or  trust  which  is  not  allocated  to
  beneficiaries bears to the total income of the estate or trust.
    (3) Where the stock, partnership interest or other ownership  interest
  arising  from  a  qualified investment as described in subparagraphs (A)
  and (B) of  paragraph  one  of  this  subsection  is  disposed  of,  the
  taxpayer's  New  York  taxable  income  shall  be  computed, pursuant to
  regulations promulgated by the commissioner, so as to  properly  reflect
  the  reduced  cost  thereof  arising  from the application of the credit
  provided for herein.
    (4)  (A)  Where  a  taxpayer sells, transfers or otherwise disposes of
  corporate stock, a partnership  interest  or  other  ownership  interest
  arising  from  the making of a qualified investment which was the basis,
  in whole or in part, for the allowance of the credit provided for  under
  this  subsection,  or  where  a contribution or investment which was the
  basis for such allowance  is  in  any  manner,  in  whole  or  in  part,
  recovered  by  such  taxpayer,  and  such disposition or recovery occurs
  during the taxable year or within thirty-six months from  the  close  of
  the  taxable  year  with  respect  to  which  such  credit  is  allowed,
  subparagraph (B) of this paragraph shall apply.
    (B) The taxpayer shall add back with respect to the  taxable  year  in
  which  the disposition or recovery described in subparagraph (A) of this
  paragraph  occurred  the  required  portion  of  the  credit  originally
  allowed.
    (C) The required portion of the credit originally allowed shall be the
  product  of  (i) the portion of such credit attributable to the property
  disposed of or the  payment  or  contribution  recovered  and  (ii)  the
  applicable percentage.
    (D) The applicable percentage shall be:
    (i)  one hundred percent, if the disposition or recovery occurs within
  the taxable year with respect to which the credit is allowed  or  within
  twelve months of the end of such taxable year,
    (ii)  sixty-seven  percent, if the disposition or recovery occurs more
  than twelve but not more than twenty-four months after the  end  of  the
  taxable year with respect to which the credit is allowed, or
    (iii) thirty-three percent, if the disposition or recovery occurs more
  than  twenty-four  but  not more than thirty-six months after the end of
  the taxable year with respect to which the credit is allowed.
    (m) Excess deductions credit. (1) General. For taxable years beginning
  in nineteen hundred ninety-five, an excess deductions  credit  shall  be
  allowed  against the tax determined under subsections (a) through (d) of
  section six hundred one of this article. The credit shall be allowed  to
  an  individual  taxpayer  whose  New  York itemized deduction determined
  under section six hundred fifteen (whether or not  the  taxpayer  elects
  the  New  York itemized deduction for the taxable year) exceeds the base
  amount determined under paragraph  two  hereof.  The  credit  shall  not
  exceed  the  tax determined under subsections (a) through (d) of section
  six hundred one for the taxable year, reduced by the  credits  permitted
  under subsection (c) of this section and sections six hundred twenty and
  six hundred twenty-one of this article.
    (2) Base amount. The base amount shall be determined by the taxpayer's
  standard deduction status under section six hundred fourteen (whether or
  not the taxpayer employs the standard deduction for the taxable year) as
  follows:
 
  If the taxpayer's standard                   The base amount is:
      deduction status is:
 
    Unmarried individual who is
    not a head of household nor a
    surviving spouse nor an
    individual whose federal
    exemption amount is zero                         $6,000
    Husband and wife whose New York
    taxable income is determined
    jointly, or a surviving spouse                   $9,500
 
    Head of household                                $7,000
 
    Married individual filing a
    separate New York return                         $4,750
 
    (3) Credit amount.
    (A)  Married  individuals  filing joint returns and surviving spouses.
  The amount of the credit allowed pursuant to this subsection for married
  individuals filing jointly under subsection (b) of section  six  hundred
  fifty-one and for a surviving spouse shall be:
 
  If New York taxable income is:           The credit is the following
                                             percentage of New York
                                                 taxable income:
    Not over $11,500                                  0.57%
    Over $11,500 but not over $17,500                 0.51%
    Over $17,500 but not over $24,100                 0.36%
    Over $24,100 but not over $31,500                 0.26%
    Over $31,500 but not over $35,500                 0.16%
    Over $35,500 but not over $42,000                 0.11%
    Over $42,000 but not over $49,000                 0.06%
    Over $49,000                                      0.00%
 
    (B)  Heads of households. The amount of the credit allowed pursuant to
  this subsection for a head of household shall be:
 
  If New York taxable income is:           The credit is the following
                                             percentage of New York
                                                 taxable income:
    Not over $7,600                                   0.57%
    Over $7,600 but not over $11,700                  0.51%
    Over $11,700 but not over $16,400                 0.36%
    Over $16,400 but not over $20,500                 0.26%
    Over $20,500 but not over $23,800                 0.16%
    Over $23,800 but not over $28,650                 0.11%
    Over $28,650 but not over $33,400                 0.06%
    Over $33,400                                      0.00%
 
    (C) Unmarried individuals  and  married  individuals  filing  separate
  returns.  The  amount  of the credit allowed pursuant to this subsection
  for an individual who is not a married individual filing  jointly  under
  subsection  (b)  of  section  six  hundred  fifty-one  nor  a  head of a
  household nor a surviving spouse shall be:
 
  If New York taxable income is:           The credit is the following
                                             percentage of New York
                                                 taxable income:
    Not over $5,600                                   0.57%
    Over $5,600 but not over $8,600                   0.51%
    Over $8,600 but not over $12,000                  0.36%
    Over $12,000 but not over $15,700                 0.26%
    Over $15,700 but not over $17,600                 0.16%
    Over $17,600 but not over $21,000                 0.11%
    Over $21,000 but not over $24,500                 0.06%
    Over $24,500                                      0.00%
 
    (n)  Agricultural  property  tax credit. (1) General. In the case of a
  taxpayer who is an eligible farmer or an eligible farmer  who  has  paid
  taxes  pursuant  to a land contract, there shall be allowed a credit for
  the allowable school district property taxes. The term "allowable school
  district property taxes" means the school district property  taxes  paid
  during  the  taxable year on qualified agricultural property, subject to
  the acreage limitation provided in paragraph five of this subsection and
  the income limitation provided in paragraph six of this subsection. Such
  credit shall be allowed against the taxes imposed by  this  article  for
  the  taxable  year  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.
    (2)  Eligible  farmer.  For  purposes  of  this  subsection,  the term
  "eligible farmer" means a  taxpayer  whose  federal  gross  income  from
  farming  for  the  taxable year is at least two-thirds of excess federal
  gross income. The term "eligible farmer"  also  includes  an  individual
  other  than  the  taxpayer of record for qualified agricultural land who
  has paid the school district property taxes on such land pursuant  to  a
  contract  for  the  future  purchase  of  such  land; provided that such
  individual has a federal gross income from farming for the taxable  year
  which  is  at  least  two-thirds  of  excess  federal  gross income; and
  provided  further  that,  in  determining  such  income  eligibility,  a
  taxpayer  may,  for  any  taxable  year, use the average of such federal
  gross income from farming for that taxable year and such income for  the
  two  consecutive  taxable years immediately preceding such taxable year.
  Excess federal gross income means the amount  of  federal  gross  income
  from  all sources for the taxable year reduced by the sum (not to exceed
  thirty thousand dollars) of those items included in federal gross income
  which consist of (i) earned income,  (ii)  pension  payments,  including
  social  security  payments,  (iii)  interest,  and  (iv)  dividends. For
  purposes of this paragraph, the term "earned income" shall  mean  wages,
  salaries, tips and other employee compensation, and those items of gross
  income  which  are  includible  in  the computation of net earnings from
  self-employment.
    (3) School district property taxes. For purposes of  this  subsection,
  the  term  "school  district  property  taxes" means all property taxes,
  special  ad  valorem  levies  and  special  assessments,  exclusive   of
  penalties  and  interest,  levied  for  school  district purposes on the
  qualified agricultural property (A) owned by the taxpayer or  (B)  owned
  by  the  father,  mother, grandfather, grandmother, brother or sister of
  the taxpayer and a written agreement  expressing  intent  to  eventually
  purchase the land has been entered into.
    (4)  Qualified agricultural property. For purposes of this subsection,
  the term "qualified agricultural property" means land  located  in  this
  state  which  is used in agricultural production, and land improvements,
  structures and buildings (excluding buildings used  for  the  taxpayer's
  residential  purpose) located on such land which are used or occupied to
  carry out such production. Qualified agricultural property also includes
  land set aside or retired under a  federal  supply  management  or  soil
  conservation  program  or  land that at the time it becomes subject to a
  conservation easement, as defined under subsection (kk) of this section,
  met the requirements under this paragraph.
    (5) Acreage limitation. (A) Eligible taxes.  In  the  event  that  the
  qualified  agricultural  property owned by the taxpayer includes land in
  excess of the base acreage as provided in this paragraph, the amount  of
  school district property taxes eligible for credit under this subsection
  shall  be that portion of the school district property taxes which bears
  the  same  ratio to the total school district property taxes paid during
  the taxable year, as the acreage allowable under this paragraph bears to
  the entire acreage of such land.
    (B) Allowable acreage. The allowable acreage is the sum  of  the  base
  acreage  set  forth  below and fifty percent of the incremental acreage.
  The incremental acreage is the excess of the entire acreage of qualified
  agricultural land owned by the taxpayer over the base acreage. Except as
  provided in subparagraph (C) of this paragraph:
 
    For taxable years beginning:              The base acreage is:
      in 1997                                          100
      after 1997 but before 2006                       250
      2006 and thereafter                              350
 
  For taxable years beginning after two thousand, total base  acreage  may
  be increased by any acreage enrolled or participating during the taxable
  year  in  a  federal  environmental conservation acreage reserve program
  pursuant to title three  of  the  federal  agriculture  improvement  and
  reform act of nineteen hundred ninety-six.
    (C)  Base  acreage  of  related persons. Where the taxpayer and one or
  more related persons each own qualified  agricultural  property  on  the
  first  day of March of any year, the base acreage under subparagraph (B)
  of this paragraph shall  be  divided  equally  and  allotted  among  the
  taxpayer  and  such related persons, and the taxpayer's base acreage for
  the taxable year which includes such March first shall be limited to its
  allotted share. Provided, however, if the taxpayer and all such  related
  persons consent (at such time and in such manner as the commissioner may
  prescribe)  to an unequal division, the taxpayer's base acreage for such
  taxable year shall be limited to its allotted share under  such  unequal
  division.
    (D)  Related  persons.  (i)  For  purposes of subparagraph (C) of this
  paragraph, the term "related person" means:
    (I) a spouse;
    (II) a corporation  subject  to  tax  under  article  nine-A  of  this
  chapter, where more than fifty percent in value of the outstanding stock
  of  the  corporation  is  owned,  directly  or indirectly, by or for the
  taxpayer, or, where the taxpayer is a trust, where such stock  is  owned
  directly or indirectly by or for the grantor of such trust;
    (III)  a  partnership,  estate  or  trust  of which the taxpayer owns,
  directly or indirectly, more than fifty percent of the capital,  profits
  or beneficial interest.
    (ii)  For  purposes  of  subparagraph (C) of this paragraph, where the
  taxpayer is an estate or trust, the term  "related  person"  shall  also
  mean  a corporation subject to tax under article nine-A of this chapter,
  a partnership, an estate or trust:
    (I) where more than fifty percent of the beneficial  interest  in  the
  taxpayer  is  owned, directly or indirectly, by or for such corporation,
  partnership, estate or trust or by or for the grantor of such trust; or
    (II) if the same person owns more than fifty percent of the beneficial
  interest in the taxpayer and more than fifty percent  in  value  of  the
  outstanding  stock of the corporation, or more than fifty percent of the
  capital or profits interest in  the  partnership,  or  more  than  fifty
  percent of the beneficial interest in the estate or trust.
    (iii)  In  determining whether a person is a related person within the
  meaning of this subparagraph:
    (I) stock owned, directly or indirectly,  by  or  for  a  corporation,
  partnership,  estate  or  trust  shall  be  considered  as  being  owned
  proportionately by or for its shareholders, partners or beneficiaries;
    (II)  an  individual  shall  be  considered as owning the stock owned,
  directly or indirectly, by or for his spouse;
    (III) stock  constructively  owned  by  a  person  by  reason  of  the
  application  of  item  (I)  of  this  clause  shall,  for the purpose of
  applying item (I) or (II) of this clause, be treated as  actually  owned
  by such person.
    (6)  Income  limitation.  (A)  In the event that the modified New York
  adjusted gross income of  the  taxpayer  exceeds  one  hundred  thousand
  dollars  for  taxable  years  beginning  before  two thousand six or two
  hundred  thousand  dollars  for  taxable  year  two  thousand  six   and
  thereafter, the allowable school district property taxes under paragraph
  one  of  this  subsection shall be the eligible taxes under subparagraph
  (A) of paragraph five of this subsection reduced by the product  of  the
  amount  of  such  eligible taxes and a percentage, such percentage to be
  determined by  multiplying  one  hundred  percent  by  a  fraction,  the
  numerator  of  which is the lesser of fifty thousand dollars for taxable
  years beginning before two thousand six or one hundred thousand  dollars
  for  taxable  year  two thousand six and thereafter or the excess of the
  taxpayer's modified New York adjusted  gross  income  over  one  hundred
  thousand  dollars for taxable years beginning before two thousand six or
  two hundred thousand dollars for  taxable  year  two  thousand  six  and
  thereafter  and  the  denominator of which is fifty thousand dollars for
  taxable years beginning before two thousand six or one hundred  thousand
  dollars  for  taxable year two thousand six and thereafter. For purposes
  of the preceding sentence, the term "eligible taxes", where the  acreage
  limitation  of  paragraph  five of this subsection does not apply, shall
  mean the total school district property taxes paid  during  the  taxable
  year.
    (B)  The  term "modified New York adjusted gross income" means the New
  York adjusted gross income for the taxable year reduced by the amount of
  principal paid on farm indebtedness during the taxable  year.  The  term
  "farm  indebtedness"  means debt incurred or refinanced which is secured
  by farm property, where the proceeds  of  the  debt  are  disbursed  for
  expenditures incurred in the business of farming.
    (7)  Nonqualified  use. (A) No credit in conversion year. In the event
  that qualified agricultural property is converted  by  the  taxpayer  to
  nonqualified use, credit under this subsection shall not be allowed with
  respect  to  such  property  for  the  taxable  year  of conversion (the
  conversion year).
    (B) Credit recapture. If the conversion by the taxpayer  of  qualified
  agricultural  property  to  nonqualified use occurs during the period of
  the two taxable years following the taxable year for  which  the  credit
  under  this  subsection was first claimed with respect to such property,
  the credit allowed with respect to such property for the  taxable  years
  prior  to the conversion year must be added back in the conversion year.
  Where the property converted includes land, and where the conversion  is
  of  only  a portion of such land, the credit allowed with respect to the
  property converted shall be determined by multiplying the entire  credit
  under this subsection for the taxable years prior to the conversion year
  by  a  fraction, the numerator of which is the acreage converted and the
  denominator of which is the entire acreage of such  land  owned  by  the
  taxpayer immediately prior to the conversion.
    (C)  Exception  to recapture. Subparagraph (B) of this paragraph shall
  not apply to the conversion of  property  where  the  conversion  is  by
  reason  of  involuntary  conversion,  within  the meaning of section one
  thousand thirty-three of the internal revenue code.
    (D)  Conversion to nonqualified use. For purposes of this paragraph, a
  sale or other disposition of qualified agricultural property alone shall
  not constitute a conversion to a nonqualified use.
    (8) Special rules. For purposes of this subsection, the term  "federal
  gross   income  from  farming"  shall  include  gross  income  from  the
  production of maple syrup, cider, Christmas trees derived from a managed
  Christmas tree operation whether dug for transplanting or cut  from  the
  stump,  or  from  a  commercial  horse  boarding operation as defined in
  subdivision thirteen of section three hundred one of the agriculture and
  markets law, or from the sale of wine from a  licensed  farm  winery  as
  provided for in article six of the alcoholic beverage control law.
    (9)  Election  to  deem  gross  income  of  New  York C corporation to
  shareholders. (A)  General.  For  purposes  of  the  credit  under  this
  subsection,  the  shareholders  of  an eligible corporation may elect to
  take into account their pro rata shares of the corporation's income  and
  principal  payments on farm indebtedness as provided in subparagraph (B)
  of this paragraph, for the taxable year of the corporation  ending  with
  or  within  the taxable year of each shareholder. No election under this
  paragraph shall be  effective  unless  shareholders  holding  more  than
  one-half,  by  vote and value, of the shares of stock of the corporation
  on the day on which the election is made have so elected.
    (B) Inclusion in gross and adjusted gross income. (i) For any  taxable
  year  of  the corporation for which the election under this paragraph is
  in effect, the shareholders of the corporation shall include:
    (I) in gross income, for purposes of paragraph two of this subsection,
  their pro rata shares of the corporation's gross  income,  which  income
  shall have the same character as in the hands of the corporation, and
    (II)  in  adjusted gross income, for purposes of paragraph six of this
  subsection, their pro  rata  shares  of  the  corporation's  entire  net
  income, and
    (III)  in  principal  payments  on  farm indebtedness, for purposes of
  paragraph six of this subsection, their pro rata shares of such payments
  made by the corporation.
    (ii) Tiered New York C and New York S corporation. In the event that a
  shareholder of the corporation is a New York S corporation, the New York
  S corporation shall make the inclusions prescribed by clause (i) of this
  subparagraph (except that the inclusion prescribed by subclause (II)  of
  such  clause  shall  be  in  the  entire  net  income  of the New York S
  corporation), and the New York S corporation  shall  pass  through  such
  inclusions  in pro rata shares to its shareholders for purposes of their
  calculation of credit under this subsection.
    (C) Eligible corporation. The  term  "eligible  corporation"  means  a
  corporation subject to tax under article nine-A of this chapter which is
  a New York C corporation for federal income tax purposes.
    (D) Pro rata share. For purposes of this paragraph, the pro rata share
  of  any  item  of  income  or farm indebtedness principal payments for a
  taxable year of the corporation shall be determined with  respect  to  a
  shareholder  by  assigning  an  equal portion of the item to each day of
  such taxable year, and then by dividing that portion pro rata among  the
  shares outstanding on such day.
    (E) Election. (i) An election under subparagraph (A) of this paragraph
  shall  be  made  on such form and in such manner as the commissioner may
  prescribe.
    (ii) When made. Such election shall be made no later than the due date
  of the corporation tax return (determined without regard to  extensions)
  for  the  corporation's  taxable  year  for  which the election is to be
  effective.
    (iii) When effective. Such election shall be effective for the taxable
  year  of  the  corporation  for  which it is made and for all succeeding
  taxable years of the corporation,  until  such  election  is  terminated
  under subparagraph (F) of this paragraph.
    (F) Termination. (i) Revocation. An election under subparagraph (A) of
  this  paragraph  shall  be  terminated if shareholders holding more than
  one-half, by vote and value, of the shares of stock of  the  corporation
  on  the  day  on  which the revocation is made revoke the election. Such
  revocation shall be made  on  such  form  and  in  such  manner  as  the
  commissioner  may  prescribe, and shall be effective on the first day of
  the  corporation's  taxable  year  following  the  date  on  which   the
  revocation is made.
    (ii)  Ineligible  corporation.  An  election under subparagraph (A) of
  this paragraph shall be terminated on the first day of the corporation's
  taxable year with respect to which  the  corporation  ceases  to  be  an
  eligible corporation.
    (G)  Election  after  termination.  If an election is terminated under
  subparagraph  (F)  of  this  paragraph,  no   further   election   under
  subparagraph  (A)  of  this  paragraph  shall  be  made before the fifth
  taxable year of the corporation following the taxable year during  which
  the  termination  occurred,  unless  the  commissioner  consents to such
  election.
    (H) Waiver of secrecy. The commissioner shall have authority to reveal
  to shareholders of the  corporation  any  information  with  respect  to
  income  or  farm indebtedness principal payments of the corporation, for
  any taxable year of the corporation for which the  election  under  this
  paragraph  is  in  effect,  which is the basis for denial in whole or in
  part of the credit claimed by such shareholders.
    (o) Credit for employment of persons with disabilities. (1)  Allowance
  of  credit.  A  taxpayer  shall  be  allowed a credit, to be computed as
  hereinafter provided, against the  tax  imposed  by  this  article,  for
  employing within the state a qualified employee.
    (2) Qualified employee. A qualified employee is an individual:
    (A) who is certified by the education department, or in the case of an
  individual  who  is  blind  or visually handicapped, by the state agency
  responsible for provision of vocation  rehabilitation  services  to  the
  blind  and visually handicapped: (i) as a person with a disability which
  constitutes or results in a substantial handicap to employment and  (ii)
  as  having  completed  or  as receiving services under an individualized
  written rehabilitation plan approved  by  the  education  department  or
  other  state  agency responsible for providing vocational rehabilitation
  services to such individual; and
    (B) who has worked on a  full-time  basis  for  the  employer  who  is
  claiming the credit for at least one hundred eighty days or four hundred
  hours.
    (3)  Amount  of  credit.  Except as provided in paragraph four of this
  subsection, the amount of credit shall be  thirty-five  percent  of  the
  first  six thousand dollars in qualified first-year wages earned by each
  qualified employee. "Qualified first-year wages"  means  wages  paid  or
  incurred  by the taxpayer during the taxable year to qualified employees
  which are attributable, with respect to any such employee,  to  services
  rendered  during the one-year period beginning with the day the employee
  begins work for the taxpayer.
    (4) Credit where federal work opportunity  tax  credit  applies.  With
  respect to any qualified employee whose qualified first-year wages under
  paragraph  three of this subsection also constitute qualified first-year
  wages for purposes of the work opportunity  tax  credit  for  vocational
  rehabilitation referrals under section fifty-one of the internal revenue
  code,  the  amount  of credit under this subsection shall be thirty-five
  percent of the first six thousand dollars in qualified second-year wages
  earned  by each such employee. "Qualified second-year wages" means wages
  paid or incurred by the taxpayer during the taxable  year  to  qualified
  employees  which are attributable, with respect to any such employee, to
  services rendered during the one-year period beginning  one  year  after
  the employee begins work for the taxpayer.
    (5) Carryover. If the amount of credit allowable under this subsection
  for  any taxable year shall exceed the taxpayer's tax for such year, the
  excess may be carried over to the following year or years,  and  may  be
  deducted from the taxpayer's tax for such year or years.
    (6)  Coordination  with  federal  work  opportunity  tax  credit.  The
  provisions of sections fifty-one and fifty-two of the  internal  revenue
  code,  as  such  sections  applied  on  October  first, nineteen hundred
  ninety-six, that apply to the work opportunity tax credit for vocational
  rehabilitation referrals shall apply to the credit under this subsection
  to the extent that  such  sections  are  consistent  with  the  specific
  provisions  of this subsection, provided that in the event of a conflict
  the provisions of this subsection shall control.
    (p) Alternative fuels credit. (1) General. A taxpayer shall be allowed
  a credit, to be  computed  as  hereinafter  provided,  against  the  tax
  imposed by this article, for alternative fuel vehicle refueling property
  placed in service during the taxable year.
    (2) Alternative fuel vehicle refueling property. The credit under this
  subsection  for  clean-fuel vehicle refueling property shall equal fifty
  percent of the cost of any such property
    (A) which is located in this state and
    (B) for which a credit is  allowed  under  section  thirty  C  of  the
  internal  revenue  code  but  not  including  alternative  fuel  vehicle
  refueling property relating  to  a  qualified  hybrid  vehicle  as  such
  vehicle  is  defined  in  subparagraph  (B)  of  paragraph three of this
  subsection.
    (3) Definitions. (A) The  term  "alternative  fuel  vehicle  refueling
  property"  means any such property which is qualified within the meaning
  of section thirty C of the internal revenue code, but  such  term  shall
  not  include  alternative  fuel vehicle refueling property relating to a
  qualified hybrid vehicle as such vehicle is defined in subparagraph  (B)
  of this paragraph.
    (B)  The  term  "qualified  hybrid  vehicle" means a motor vehicle, as
  defined in section one hundred twenty-five of the  vehicle  and  traffic
  law,, that:
    (i) draws propulsion energy from both
    (a)   an   internal  combustion  engine  (or  heat  engine  that  uses
  combustible fuel); and
    (b) an energy storage device; and
    (ii) employs a regenerative vehicle braking system that recovers waste
  energy to charge such energy storage device.
    (4)  Carryovers.  If  the  amount  of  credit  allowable  under   this
  subsection shall exceed the taxpayer's tax for such year, the excess may
  be  carried over to the following year or years and may be deducted from
  the taxpayer's tax for such year or years.
    (5) Credit recapture. (A) Vehicles.
    (i) If, within three full years  from  the  date  a  qualified  hybrid
  vehicle  or  a  vehicle  of which alternative fuel vehicle property is a
  part is placed in service, such qualified hybrid vehicle or  vehicle  of
  which  alternative  fuel  vehicle  property  is  a  part  ceases  to  be
  qualified, a recapture amount must be added back  in  the  tax  year  in
  which such cessation occurs.
    (ii) Cessation of qualification. (I) A qualified hybrid vehicle ceases
  to be qualified if
    (a)  it  is  modified  by  the taxpayer so that it no longer meets the
  requirements of a qualified hybrid vehicle as  defined  in  subparagraph
  (B) of paragraph three of this subsection.
    (b)  the  taxpayer receiving the credit under this subsection sells or
  disposes of the vehicle and knows or has reason to know that the vehicle
  will be so modified.
    (B) Alternative fuel vehicle refueling property. (i) If, at  any  time
  before  the  end  of  its  recovery  period,  alternative  fuel  vehicle
  refueling property ceases to be qualified, a recapture  amount  must  be
  added back in the year in which such cessation occurs.
    (ii) Cessation of qualification. Clean-fuel vehicle refueling property
  ceases to be qualified if
    (I)  the property no longer qualifies as property described in section
  thirty C of the internal revenue code, or
    (II) fifty percent or more of the use of the  property  in  a  taxable
  year is other than in a trade or business in this state, or
    (III) the taxpayer receiving the credit under this subsection sells or
  disposes  of  the  property  and  knows  or  has reason to know that the
  property will be used in a manner described in item (I) or (II) of  this
  clause.
    (iii)  Recapture  amount.  The recapture amount is equal to the credit
  allowable under this subsection multiplied by a fraction, the  numerator
  of  which is the total recovery period for the property minus the number
  of recovery years prior to, but not including, the recapture  year,  and
  the denominator of which is the total recovery period.
    (6)   Termination.  The  credit  allowed  by  paragraph  two  of  this
  subsection shall not apply in taxable  years  beginning  after  December
  thirty-first, two thousand ten.
    (q)  Qualified  emerging  technology  company employment credit. (1) A
  taxpayer shall be allowed  a  credit,  to  be  computed  as  hereinafter
  provided, against the tax imposed by this article, provided:
    (A)  the  taxpayer  is  a  sole  proprietor  of  a  qualified emerging
  technology company, a member of  a  partnership  which  is  a  qualified
  emerging   technology  company,  or  a  shareholder  of  a  New  York  S
  corporation which is a qualified emerging technology company, as defined
  in section thirty-one hundred two-e of the public authorities law; and
    (B) the average number  of  individuals  employed  full-time  by  such
  company  in  New  York  state  during  the  taxable year is at least one
  hundred one percent of such company's  base  year  employment.  For  the
  purposes  of  this  subsection, "base year employment" means the average
  number of individuals employed full-time by such company  in  the  state
  during  the  three taxable years immediately preceding the first taxable
  year in which  the  credit  is  claimed.  Where  such  company  provided
  full-time  employment  within  the  state  during only a portion of such
  three-year period, then for purposes of this subsection, the term "three
  years" shall be deemed to  refer  instead  to  such  portion,  provided,
  however,  the first taxable year for which this credit may be taken with
  respect to such company shall be the next year following the first  full
  taxable  year  that  such  company  had full-time employment in New York
  state.
    (2) 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 one  of  this  subsection  are
  satisfied in each taxable year.
    (3) For the purposes of this subsection, average number of individuals
  employed  full-time  shall  be  computed  by  adding  the number of such
  individuals employed by such company 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,  that  in  computing
  base year employment there shall be excluded therefrom any employee with
  respect  to  whom  a  credit  provided  for under subsection (k) of this
  section is claimed for the taxable year.
    (4) The amount of the credit shall equal the product of  one  thousand
  dollars  multiplied  by  the number of individuals employed full-time by
  such company in the taxable year that  are  in  excess  of  one  hundred
  percent of such company's base year employment.
    (5)  If  the  amount  of  credit allowed under this subsection for any
  taxable year shall exceed the taxpayer's tax for such year,  the  excess
  shall  be treated as an overpayment of tax to be credited or refunded in
  accordance with the provisions of section six hundred eighty-six of this
  article, provided, however, that no interest shall be paid thereon.
    (r) Qualified emerging technology company capital tax  credit.  (1)  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:
    (A)  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
    (B)  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.
    (C)  "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  (A)  of  this
  paragraph  and  shall  not  exceed three hundred thousand dollars in the
  case of investments made pursuant to subparagraph (B) of this paragraph.
    (2) (A) If the amount of the credit  and  carryovers  of  such  credit
  allowed  under  this  subsection  for  any taxable year shall exceed the
  taxpayer's tax for such year, 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 from the tax otherwise due may
  not,  in  the  aggregate,  exceed fifty percent of the tax imposed under
  section six hundred one computed without regard to any  credit  provided
  for by this section.
    (B)  In  the  case  of  a  husband  or  wife who is required to file a
  separate return, the limitations provided for  in  subparagraph  (c)  of
  paragraph  one of this subsection shall be seventy-five thousand dollars
  in lieu of one hundred fifty thousand dollars,  and  one  hundred  fifty
  thousand  dollars  in lieu of three hundred thousand dollars, unless the
  spouse of the taxpayer has no credit allowable under this subsection for
  the taxable year of such spouse which ends within or with the taxpayer's
  taxable year.
    (C) In the case of an estate or trust, the limitations provided for in
  paragraph one of this subsection shall be reduced  to  an  amount  which
  bears the same ratio to one hundred fifty thousand dollars and an amount
  which  bears  the  same  ratio  to three hundred thousand dollars as the
  portion of the income of the estate or trust which is not  allocated  to
  beneficiaries bears to the total income of the estate or trust.
    (3)  (A)  Where  a  taxpayer sells, transfers or otherwise disposes of
  corporate stock, a partnership  interest  or  other  ownership  interest
  arising  from  the making of a qualified investment which was the basis,
  in whole or in part, for the allowance of the credit provided for  under
  subparagraph  (A)  of  paragraph  one  of  this  subsection, or where an
  investment which was the basis for such allowance is,  in  whole  or  in
  part,  recovered  by  such  taxpayer,  and  such disposition or recovery
  occurs during the taxable year or within  forty-eight  months  from  the
  close  of the taxable year with respect to which such credit is allowed,
  the taxpayer shall add back, with respect to the taxable year  in  which
  the  disposition  or  recovery  described  above  occurred, the required
  portion of the credit originally allowed.
    (B) Where  a  taxpayer  sells,  transfers  or  otherwise  disposes  of
  corporate  stock,  a  partnership  interest  or other ownership interest
  arising from the making of a qualified investment which was  the  basis,
  in  whole or in part, for the allowance of the credit provided for under
  subparagraph (B) of paragraph  one  of  this  subsection,  or  where  an
  investment  which  was the basis for such allowance is in any manner, in
  whole or in part, recovered by such taxpayer, and  such  disposition  or
  recovery  occurs  during  the  taxable  year or within one hundred eight
  months from the close of the taxable year with  respect  to  which  such
  credit  is  allowed,  the  taxpayer  shall add back, with respect to the
  taxable  year  in  which  the  disposition  or  recovery  described   in
  subparagraph  one of this paragraph occurred the required portion of the
  credit originally allowed.
    (C) The required portion of the credit originally allowed shall be the
  product of (i) the portion of such credit attributable to  the  property
  disposed of and (ii) the applicable percentage.
    (D) The applicable percentage shall be:
    (i)  for credits allowed pursuant to subparagraph (A) of paragraph one
  of this subsection:
    (I) one hundred percent, if the disposition or recovery occurs  within
  the  taxable  year with respect to which the credit is allowed or within
  twelve months of the end of such taxable year,
    (II) seventy-five percent, if the disposition or recovery occurs  more
  than  twelve  but  not more than twenty-four months after the end of the
  taxable year with respect to which the credit is allowed,
    (III) fifty percent, if the disposition or recovery occurs  more  than
  twenty-four  months but not more than thirty-six months after the end of
  the taxable year with respect to which the credit is allowed, or
    (IV)  twenty-five  percent, if the disposition or recovery occurs more
  than thirty-six months but not more than forty-eight  months  after  the
  end of the taxable year with respect to which the credit is allowed; or
    (ii) for credits allowed pursuant to subparagraph (B) of paragraph one
  of this subsection:
    (I)  one hundred percent, if the disposition or recovery occurs within
  the taxable year with respect to which the credit is allowed  or  within
  twelve months of the end of such taxable year,
    (II)  eighty  percent, if the disposition or recovery occurs more than
  twelve but not more than forty-eight months after the end of the taxable
  year with respect to which the credit is allowed,
    (III) sixty percent, if the disposition or recovery occurs  more  than
  forty-eight months but not more than seventy-two months after the end of
  the taxable year with respect to which the credit is allowed,
    (IV)  forty  percent,  if the disposition or recovery occurs more than
  seventy-two months but not more than ninety-six months after the end  of
  the taxable year with respect to which the credit is allowed, or
    (V)  twenty  percent,  if the disposition or recovery occurs more than
  ninety-six months but not more than one hundred eight months  after  the
  end of the taxable year with respect to which the credit is allowed.
    (s)  Credit  for  purchase  of  an automated external defibrillator. A
  taxpayer shall be allowed a credit as hereinafter provided, against  the
  tax  imposed by this article for the purchase, other than for resale, of
  an automated external defibrillator, as such term is defined in  section
  three thousand-b of the public health law. The amount of credit shall be
  the  cost to the taxpayer of automated external defibrillators purchased
  during the taxable year, such credit not to exceed five hundred  dollars
  with respect to each unit purchased.
    (t) College tuition credit.  (1) General. A resident taxpayer shall be
  allowed  the  option of claiming a credit, to be computed as provided in
  paragraph four of this subsection,  against  the  tax  imposed  by  this
  article,  or  an  itemized  deduction,  to  be  computed  as provided in
  paragraph four of subsection (d) of section six hundred fifteen of  this
  article, for allowable college tuition expenses.
    (2) Allowable and qualified college tuition expenses. For the purposes
  of  this credit and the itemized deduction provided by paragraph four of
  subsection (d) of section six hundred fifteen of this article:
    (A) The term "allowable  college  tuition  expenses"  shall  mean  the
  amount  of  qualified college tuition expenses of eligible students paid
  by the taxpayer during the taxable year, limited to ten thousand dollars
  for each such student;
    (B)  The  term  "eligible  student"  shall  mean  the  taxpayer,   the
  taxpayer's  spouse,  and  any  dependent of the taxpayer with respect to
  whom the taxpayer is allowed an  exemption  under  section  six  hundred
  sixteen of this article for the taxable year;
    (C)  The  term  "qualified  college  tuition  expenses" shall mean the
  tuition required for the enrollment or attendance of an eligible student
  at an  institution  of  higher  education.  Provided,  however,  tuition
  payments  made  pursuant to the receipt of any scholarships or financial
  aid, or tuition required for enrollment or attendance  in  a  course  of
  study  leading to the granting of a post baccalaureate or other graduate
  degree, shall be excluded from  the  definition  of  "qualified  college
  tuition expenses".
    (D)  Expenses  paid  by  dependent.  If an exemption under section six
  hundred sixteen of this article with respect to an individual is allowed
  to another taxpayer for a taxable year beginning in the calendar year in
  which such individual's taxable year begins,
    (i)  no credit under this subsection or deduction under paragraph four
  of subsection (d) of section six hundred fifteen of this  article  shall
  be allowed to such individual for such individual's taxable year, and
    (ii)  for  purposes  of  such  credit  or deduction, qualified college
  tuition expenses  paid  by  such  individual  during  such  individual's
  taxable year shall be treated as paid by such other taxpayer.
    (3)  Institution  of higher education. For the purposes of this credit
  and the itemized deduction provided by paragraph four of subdivision (d)
  of section six hundred fifteen of this article, the term "institution of
  higher education" shall mean any  institution  of  higher  education  or
  business,  trade, technical or other occupational school, recognized and
  approved  by  the  regents,  or  any  successor  organization,  of   the
  university  of  the  state  of  New  York  or accredited by a nationally
  recognized accrediting agency or association accepted  as  such  by  the
  regents,  or  any successor organization, of the university of the state
  of New York, which provides a course of study leading to the granting of
  a post-secondary degree, certificate or diploma.
    (4) Amount of credit. If allowable college tuition expenses  are  less
  than five thousand dollars, the amount of the credit provided under this
  subsection  shall be equal to the applicable percentage of the lesser of
  allowable college tuition expenses or two hundred dollars. If  allowable
  college  tuition  expenses are five thousand dollars or more, the amount
  of the credit provided under this  subsection  shall  be  equal  to  the
  applicable   percentage   of  the  allowable  college  tuition  expenses
  multiplied  by  four  percent.  Such  applicable  percentage  shall   be
  twenty-five  percent  for  taxable  years beginning in two thousand one,
  fifty  percent  for  taxable  years  beginning  in  two  thousand   two,
  seventy-five  percent  for taxable years beginning in two thousand three
  and one hundred percent for taxable years beginning after  two  thousand
  three.
    (5)  Refundability.  The credit under this subsection shall be allowed
  against the taxes imposed by this article for the taxable  year  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.
    (6)  Limitation. No credit shall be allowed under this subsection to a
  taxpayer who claims the itemized deduction provided under paragraph four
  of subdivision (d) of section six hundred fifteen of this article.
    * (t-1) IMB credit for  energy  taxes.  (1)  Allowance  of  credit.  A
  taxpayer  which  is  a sole proprietor of an industrial or manufacturing
  business (IMB), or a member of a partnership which is an IMB,  shall  be
  allowed a credit for energy taxes, to be computed as provided in section
  fourteen-a of this chapter, against the tax imposed by this article.
    (2)  Application  of credit. If the amount of the credit allowed under
  this subsection for any taxable year shall exceed the taxpayer's tax for
  such year, the excess shall be treated as an overpayment of  tax  to  be
  credited  or  refunded  in accordance with the provisions of section six
  hundred eighty-six of this article, provided, however, that no  interest
  shall be paid thereon.
    * NB Expired for taxable years ending on and after January 1, 2007
    (x)  Low-income  housing  credit.  (1) Allowance of credit. A taxpayer
  shall be allowed a credit against the tax imposed by this  article  with
  respect  to  the ownership of eligible low-income buildings, computed as
  provided in section eighteen of this chapter.
    (2) Application of credit. If the amount  of  credit  allowable  under
  this subsection for any taxable year shall exceed the taxpayer's tax for
  such  year,  the  excess  may  be  carried over to the following year or
  years, and may be deducted from the taxpayer's  tax  for  such  year  or
  years.
    (3)  Credit  recapture.  For provisions requiring recapture of credit,
  see subdivision (b) of section eighteen of this chapter.
    (y) Green building credit. (1) Allowance of credit. A  taxpayer  shall
  be  allowed  a credit, to be computed as provided in section nineteen of
  this chapter, against the tax imposed by this article.
    (2) Carryovers. If the amount of the credit  and  carryovers  of  such
  credit  allowed  under this subsection for any taxable year shall exceed
  the taxpayer's tax for such year, the excess, as well as any part of the
  credit or carryovers of such credit, or both, may be carried over to the
  following year or years and may be deducted from the taxpayer's tax  for
  such year or years.
    (z) Credit for transportation improvement contributions. (1) Allowance
  of  credit.  A  taxpayer  shall  be  allowed a credit, to be computed as
  provided in section twenty of this chapter, against the tax  imposed  by
  this article.
    (2)  Application  of credit. If the amount of the credit allowed under
  this subsection for any taxable year shall exceed the taxpayer's tax for
  such year, the excess shall be treated as an overpayment of  tax  to  be
  credited  or  refunded  in accordance with the provisions of section six
  hundred eighty-six of this article, provided, however, that no  interest
  shall be paid thereon.
    (3)  Credit  recapture.  For provisions requiring recapture of credit,
  see subdivision (c) of section twenty of this chapter.
    (aa) Long-term care insurance credit. (1) Residents. A taxpayer  shall
  be  allowed  a  credit  against the tax imposed by this article equal to
  twenty percent of the premium paid during the taxable year for long-term
  care insurance. In order to qualify  for  such  credit,  the  taxpayer's
  premium  payment  must be for the purchase of or for continuing coverage
  under a long-term care insurance policy that qualifies for  such  credit
  pursuant  to section one thousand one hundred seventeen of the insurance
  law. If the amount of the credit allowable under this subsection for any
  taxable year shall exceed the taxpayer's tax for such year,  the  excess
  may  be  carried over to the following year or years and may be deducted
  from the taxpayer's tax for such year or years.
    (2) Nonresidents and part-year residents. In the case of a nonresident
  taxpayer or a part-year resident taxpayer, the credit  determined  under
  this subsection shall be limited to the amount determined by multiplying
  the  amount  of such credit by the New York source fraction as set forth
  in paragraph three of subsection (e) of section six hundred one of  this
  article.  The  credit  as  so  limited  shall  be applied as provided in
  paragraph one of this subsection.
    (bb) QEZE credit for real property taxes. (1) Allowance of  credit.  A
  taxpayer  which  is  a  sole  proprietor  of  a  qualified  empire  zone
  enterprise (QEZE), or a member of a partnership which is a  QEZE,  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.
    (2)  Application  of credit. If the amount of the credit allowed under
  this subsection for any taxable year shall exceed the taxpayer's tax for
  such year, the excess shall be treated as an overpayment of  tax  to  be
  credited  or  refunded  in accordance with the provisions of section six
  hundred eighty-six of this article, provided, however, that no  interest
  shall be paid thereon.
    (cc)  QEZE tax reduction credit. Allowance of credit. A taxpayer which
  is a sole proprietor of a qualified empire zone enterprise (QEZE), or  a
  member  of  a  partnership  which is a QEZE, shall be allowed a QEZE tax
  reduction credit against the tax imposed by subsections (a) through  (e)
  of section six hundred one of this part.
    (dd)  Brownfield  redevelopment tax credit. (1) Allowance of credit. A
  taxpayer shall be allowed a  credit,  to  be  computed  as  provided  in
  section  twenty-one  of  this  chapter,  against the tax imposed by this
  article.
    (2) Application of credit. If the amount of the credit  allowed  under
  this subsection for any taxable year shall exceed the taxpayer's tax for
  such  year,  the  excess shall be treated as an overpayment of tax to be
  credited or refunded in accordance with the provisions  of  section  six
  hundred  eighty-six of this article, provided, however, that no interest
  shall be paid thereon.
    (ee)  Remediated  brownfield  credit  for  real  property  taxes   for
  qualified  sites.    (1)  Allowance  of  credit.  A  taxpayer which is a
  developer of a qualified site shall be allowed  a  credit  for  eligible
  real  property  taxes,  to be computed as provided in subdivision (b) of
  section twenty-two of this chapter, against  the  tax  imposed  by  this
  article. For purposes of this subsection, the terms "qualified site" and
  "developer"  shall  have the same meaning as set forth in paragraphs two
  and three, respectively, of subdivision (a)  of  section  twenty-two  of
  this chapter.
    (2)  Application  of credit. If the amount of the credit allowed under
  this subsection for any taxable year shall exceed the taxpayer's tax for
  such year, the excess shall be treated as an overpayment of  tax  to  be
  credited  or  refunded  in accordance with the provisions of section six
  hundred eighty-six of this article, provided, however, that no  interest
  shall be paid thereon.
    (ff)  Environmental  remediation  insurance  credit.  (1) Allowance of
  credit. A taxpayer shall be allowed a credit, to be computed as provided
  in section twenty-three of this chapter, against the tax imposed by this
  article.
    (2) Application of credit. If the amount of the credit  allowed  under
  this subsection for any taxable year shall exceed the taxpayer's tax for
  such  year,  the  excess shall be treated as an overpayment of tax to be
  credited or refunded in accordance with the provisions  of  section  six
  hundred  eighty-six of this article, provided, however, that no interest
  shall be paid thereon.
    * (gg) Empire state film production credit. (1) Allowance of credit. A
  taxpayer who is eligible pursuant to section twenty-four of this chapter
  shall be allowed a credit to be computed as  provided  in  such  section
  twenty-four against the tax imposed by this article.
    (2) Application of credit. If the amount of the credit allowable under
  this subsection for any taxable year exceeds the taxpayer's tax for such
  year,  the  excess  shall  be  treated  as  an  overpayment of tax to be
  credited or refunded as provided in section six  hundred  eighty-six  of
  this article, provided, however, that no interest shall be paid thereon.
    * NB Repealed January 1, 2014
    (hh)  Nursing  home  assessment  credit.  (1)  Allowance  of credit. A
  taxpayer shall be allowed a credit  against  the  tax  imposed  by  this
  article  equal  to  the  amount  that directly relates to the assessment
  imposed on a residential health care facility pursuant to paragraph  (b)
  of subdivision two of section twenty-eight hundred seven-d of the public
  health  law  which is separately stated and accounted for on the billing
  statement of a resident of a residential health  care  facility  and  is
  paid directly by the individual taxpayer.
    (2)  Application  of credit. If the amount of the credit allowed under
  this subsection for any taxable year shall exceed the taxpayer's tax for
  such year, the excess shall be treated as an overpayment of  tax  to  be
  credited  or  refunded  in accordance with the provisions of section six
  hundred  eighty-six of this article, provided, however, that no interest
  shall be paid thereon.
    (ii) Security training tax credit. (1) Allowance of credit. A taxpayer
  shall be allowed a  credit,  to  be  computed  as  provided  in  section
  twenty-six of this chapter, against the tax imposed by this article.
    (2)  Application  of credit. If the amount of the credit allowed under
  this subsection for any taxable year shall exceed the taxpayer's tax for
  such year, the excess shall be treated as an overpayment of  tax  to  be
  credited  or  refunded  in accordance with the provisions of section six
  hundred eighty-six of this article, provided, however, that no  interest
  shall be paid thereon.
    * (jj)  Empire  state  commercial  production credit. (1) Allowance of
  credit. A taxpayer that  is  eligible  pursuant  to  the  provisions  of
  section  twenty-eight  of  this  chapter shall be allowed a credit to be
  computed as provided in such section against the  tax  imposed  by  this
  article.
    (2) Application of credit. If the amount of the credit allowable under
  this subsection for any taxable year exceeds the taxpayer's tax for such
  year,  fifty percent of the excess shall be treated as an overpayment of
  tax to be credited or  refunded  as  provided  in  section  six  hundred
  eighty-six  of  this article, provided, however, that no interests shall
  be paid thereon. The balance of such credit not credited or refunded  in
  such  taxable  year  may  be  carried over to the immediately succeeding
  taxable year and may be deducted from the taxpayer's tax for such  year.
  The  excess,  if  any, of the amount of the credit over the tax for such
  succeeding year shall be treated as an overpayment of tax to be credited
  or refunded as provided  in  section  six  hundred  eighty-six  of  this
  article, provided, however, that no interest shall be paid thereon.
    * NB Repealed December 31, 2011
    * NB There are 2 sb (jj)'s
    * (jj) Biofuel production credit. A taxpayer shall be allowed a credit
  to  be  computed  as  provided  in section twenty-eight of this chapter,
  against the tax imposed by this article. If the  amount  of  the  credit
  allowed  under  this  subsection  for  any taxable year shall exceed the
  taxpayer's tax for  such  year,  the  excess  shall  be  treated  as  an
  overpayment  of  tax  to  be credited or refunded in accordance with the
  provisions of section six hundred eighty-six of this article,  provided,
  however, that no interest shall be paid thereon.
    * NB There are 2 sb (jj)'s
    (kk) Conservation easement tax credit. (1) Credit allowed. In the case
  of  a  taxpayer who owns land that is subject to a conservation easement
  held by a public or private conservation agency, there shall be  allowed
  a  credit  for  twenty-five  percent  of  the allowable school district,
  county and town real property taxes on such land. In no event shall  the
  credit  allowed  under  this  subsection  in  combination with any other
  credit for such school district, county and  town  real  property  taxes
  under this section exceed such taxes.
    (2)  Conservation  easement. For purposes of this subsection, the term
  "conservation easement" means a  perpetual  and  permanent  conservation
  easement   as   defined  in  article  forty-nine  of  the  environmental
  conservation law that serves to  protect  open  space,  scenic,  natural
  resources,   biodiversity,   agricultural,   watershed  and/or  historic
  preservation resources. Any conservation easement for which a tax credit
  is claimed under this subsection shall be filed with the  department  of
  environmental conservation, as provided for in article forty-nine of the
  environmental  conservation  law  and  such  conservation easement shall
  comply with the provisions of title  three  of  such  article,  and  the
  provisions  of  subdivision  (h)  of section 170 of the internal revenue
  code. Dedications of land  for  open  space  through  the  execution  of
  conservation   easements   for   the   purpose   of  fulfilling  density
  requirements to obtain subdivision or  building  permits  shall  not  be
  considered a conservation easement under this subsection.
    (3) Land. For purposes of this subsection, the term "land" means a fee
  simple  title  to  real  property located in this state, with or without
  improvements  thereon;  rights  of  way;  water  and  riparian   rights;
  easements;  privileges  and all other rights or interests of any land or
  description in, relating to or connected with real  property,  excluding
  buildings, structures, or improvements.
    (4)  Public  or  private  conservation  agency.  For  purposes of this
  subsection, the term "public or private conservation agency"  means  any
  state,   local,   or   federal   governmental   body;   or  any  private
  not-for-profit charitable corporation or trust which is authorized to do
  business in the state of New York, is organized and operated to  protect
  land  for  natural  resources,  conservation  or  historic  preservation
  purposes, is exempt from federal income taxation under section 501(c)(3)
  of the internal revenue code, and has the power  to  acquire,  hold  and
  maintain land and/or interests in land for such purposes.
    (5) Credit limitation. The amount of the credit that may be claimed by
  a  taxpayer  pursuant  to this subsection shall not exceed five thousand
  dollars in any given year.
    (6) Application of the credit. If the amount of the credit under  this
  subsection for any taxable year shall exceed the taxpayer's tax for such
  year,  the  excess  shall  be  treated  as  an  overpayment of tax to be
  credited or refunded in accordance with the provisions  of  section  six
  hundred  eighty-six of this article, provided, however, that no interest
  shall be paid therein.
    (ll)  Home  heating  system  credit.  (1)  Allowance  of  credit   for
  replacement.  A  taxpayer  shall  be  allowed  a  credit against the tax
  imposed by this article for costs incurred on or after July  first,  two
  thousand  six  and  before  July first, two thousand seven by a taxpayer
  which are directly associated with the replacement of an  existing  home
  heating  system, in his or her principal residence, if such residence is
  located in this state, provided such  home  heating  system  after  such
  replacement  qualifies for, and is labeled with, an Energy Star label by
  the manufacturer, pursuant to an agreement among the  manufacturer,  the
  United  States  environmental  protection  agency  and the United States
  department of energy. The amount of the credit shall be equal  to  fifty
  percent of the cost of such replacement but such credit shall not exceed
  five hundred dollars.
    (2) Multiple taxpayers. If the principal residence is shared by two or
  more taxpayers, the amount of the credit allowable under this subsection
  for  each  such  eligible  taxpayer  shall  be prorated according to the
  percentage of the total expenditure for  such  replacement  incurred  by
  each taxpayer.
    (3)  Application  of credit. If the amount of the credit allowed under
  this subsection for any taxable year shall exceed the taxpayer's tax for
  such year, the excess shall be treated as an overpayment of  tax  to  be
  credited  or  refunded  in accordance with the provisions of section six
  hundred eighty-six of this article, provided, however, that no  interest
  shall be paid thereon.
    (mm)  Clean  heating  fuel credit.   (1) A taxpayer shall be allowed a
  credit against the tax imposed by  this  article.  Such  credit,  to  be
  computed as hereinafter provided, shall be allowed for bioheat, used for
  space  heating  or  hot water production for residential purposes within
  this state and purchased on or after July first, two  thousand  six  and
  before July first, two thousand seven and on or after January first, two
  thousand  eight  and  before  January  first,  two thousand twelve. Such
  credit shall be $0.01 per percent of biodiesel per  gallon  of  bioheat,
  not to exceed twenty cents per gallon, purchased by such taxpayer.
    (2)  For  purposes of this subsection, the following definitions shall
  apply:
    (a) "Biodiesel" shall mean a fuel comprised exclusively of  mono-alkyl
  esters  of  long chain fatty acids derived from vegetable oils or animal
  fats, designated  B100,  which  meets  the  specifications  of  American
  Society of Testing and Materials designation D 6751.
    (b)  "Bioheat"  shall  mean a fuel comprised of biodiesel blended with
  conventional home heating oil, which meets  the  specifications  of  the
  American Society of Testing and Materials designation D 396 or D 975.
    (3)  If the amount of the credit allowed under this subsection for any
  taxable year shall exceed the taxpayer's tax for such year,  the  excess
  shall  be treated as an overpayment of tax to be credited or refunded in
  accordance with the provisions of section six hundred eighty-six of this
  article, provided, however, that no interest shall be paid thereon.
    (nn) Qualified emerging technology company facilities, operations  and
  training  credit. (1) A taxpayer that is a qualified emerging technology
  company pursuant to the provisions of section thirty-one  hundred  two-e
  (and  specifically  for  the  activities  referenced in paragraph (b) of
  subdivision one of such section thirty-one hundred two-e) of the  public
  authorities   law,  and  that  meets  the  eligibility  requirements  in
  paragraph two of this subsection, shall be allowed a credit against  the
  tax  imposed by this article. The amount of credit shall be equal to the
  sum (or pro rata share of the sum in the case of a partnership)  of  the
  amounts   specified   in  paragraphs  three,  four,  and  five  of  this
  subsection,  subject  to  the  limitations  in  paragraph  six  of  this
  subsection.
    (2)  An  eligible  taxpayer  shall  (i)  have no more than one hundred
  full-time employees, of which at least seventy-five percent are employed
  in New York state,
    (ii) have a ratio of research and development funds to net  sales,  as
  referred   to   in  section  thirty-one  hundred  two-e  of  the  public
  authorities law, which equals or exceeds six percent during its  taxable
  year, and
    (iii)  have  gross  revenues,  along  with  the  gross revenues of its
  affiliates and related members, not exceeding twenty million dollars for
  the taxable year immediately preceding the year the taxpayer is  allowed
  a credit under this subsection. For purposes of this paragraph, the term
  "related member" shall have the same meaning as set forth in clauses (A)
  and (B) of subparagraph one of paragraph (o) of subdivision 9 of section
  two  hundred eight of this chapter, and the term "affiliates" shall mean
  those corporations that are members of the  same  affiliated  group  (as
  defined in section fifteen hundred four of the internal revenue code) as
  the taxpayer.
    (3)  An  eligible  taxpayer shall be allowed a credit for eighteen per
  centum of the cost or other basis for federal  income  tax  purposes  of
  research  and  development  property  as  defined in subparagraph (B) of
  paragraph two of subsection (a) of this section that is acquired by  the
  taxpayer  by  purchase  as  defined  in  section  179(d) of the internal
  revenue code and is placed in service during the taxable year. Provided,
  however, for the purposes of this paragraph only, an  eligible  taxpayer
  shall  be  allowed a credit for such percentage of the (i) cost or other
  basis for federal income purposes for property used in  the  testing  or
  inspection of materials and products,
    (ii)  the  costs  or  expenses  associated with quality control of the
  research and development,
    (iii)  fees  for  use  of  sophisticated  technology  facilities   and
  processes, and
    (iv)  fees  for  production  or  eventual  commercial  distribution of
  materials and products resulting from  the  activities  of  an  eligible
  taxpayer  as long as such activities fall under the activities listed in
  paragraph (b) of subdivision one of section thirty-one hundred two-e  of
  the  public  authorities  law. The costs, expenses and other amounts for
  which a credit is allowed and claimed under this paragraph shall not  be
  used in the calculation of any other credit allowed under this article.
    (4)  An eligible taxpayer shall be allowed a credit for nine percentum
  of "qualified research expenses", paid or incurred by  the  taxpayer  in
  the  taxable  year.  "Qualified  research  expenses" shall mean expenses
  associated with  in-house  research,  use  of  sophisticated  technology
  facilities and processes, and costs associated with the dissemination of
  the  results of the products that directly result from such research and
  development activities; provided, however, that  such  costs  shall  not
  include  advertising  or  promotion  through  media.  In addition, costs
  associated  with  the  preparation  of   patent   applications,   patent
  application filing fees, patent research fees, patent examinations fees,
  patent   post   allowance  fees,  patent  maintenance  fees,  and  grant
  application expenses and fees shall be eligible for such credit.  In  no
  case  shall  the  credit allowed by this paragraph apply to expenses for
  litigation or the challenge of another  entity's  intellectual  property
  rights, or for contract expenses involving outside paid consultants.
    (5)  An  eligible  taxpayer  shall  be  allowed a credit for qualified
  high-technology training expenditures as  described  in  this  paragraph
  paid or incurred by the taxpayer.
    (a)  The amount of credit shall be one hundred percent of the training
  expenses described in subparagraph (c) of this paragraph, subject  to  a
  limitation  of  no more than four thousand dollars per employee per year
  for such training expenses.
    (b) Qualified high-technology  training  shall  include  a  course  or
  courses  taken  and  satisfactorily  completed  by  an  employee  of the
  taxpayer at an accredited, degree  granting  post-secondary  college  or
  university in New York state that
    (i) directly relates to the activities referred to in paragraph (b) of
  subdivision  one  of  section  thirty-one  hundred  two-e  of the public
  authorities law, and
    (ii) is intended to upgrade, retrain or improve  the  productivity  or
  theoretical  awareness  of  the  employee.  Such  course  or courses may
  include, but are not limited to, instruction  or  research  relating  to
  techniques,  meta,  macro,  or  micro-theoretical or practical knowledge
  bases or frontiers, or ethical concerns related to such activities. Such
  course or courses shall  not  include  classes  in  the  disciplines  of
  management,  accounting  or the law or any class designed to fulfill the
  discipline specific requirements of a degree program at  the  associate,
  baccalaureate,  graduate  or  professional  level  of these disciplines.
  Satisfactory completion of a course or courses shall  mean  the  earning
  and  granting  of  credit  or  equivalent unit, with the attainment of a
  grade of "B" or higher in a graduate level course or courses, a grade of
  "C" or higher in an undergraduate level course or courses, or a  similar
  measure  of  competency for a course that is not measured according to a
  standard grade formula.
    (c) Qualified  high-technology  training  expenditures  shall  include
  expenses  for  tuition  and mandatory fees, and software required by the
  institution, fees for textbooks or  other  literature  required  by  the
  institution   offering   the   course   or   courses,  minus  applicable
  scholarships  and  tuition or fee waivers not granted by the taxpayer or
  any affiliate of the taxpayer,  paid  or  reimbursed  by  the  taxpayer.
  Qualified  high  technology  expenditures do not include room and board,
  computer hardware or software not specifically assigned for such  course
  or courses, late-charges, fines or membership dues and similar expenses.
  Such qualified expenditures shall not be eligible for the credit allowed
  by  this  subsection  unless  the employee for whom the expenditures are
  disbursed is continuously employed  by  the  taxpayer  in  a  full-time,
  full-year  position  primarily  located  at  a qualified site during the
  period of such coursework and lasting through at least one  hundred  and
  eighty   days  after  the  satisfactory  completion  of  the  qualifying
  course-work. Qualified high-technology training expenditures  shall  not
  include  expenses  for in house or shared training outside of a New York
  state higher education institution or the use of consultants outside  of
  credit granting courses whether such consultants function inside of such
  higher education institution or not.
    (d)  If  a  taxpayer  relocates  from  an  academic business incubator
  facility  partnered  with   an   accredited   post-secondary   education
  institution  located  within  New  York  state, which provides space and
  business support services to taxpayers,  to  another  site,  the  credit
  provided  in  this  subsection  shall  be  allowed  for all expenditures
  referenced in subparagraph (c) of this paragraph paid or incurred in the
  two preceding taxable years that the taxpayer was  located  in  such  an
  incubator  facility for employees of the taxpayer who also relocate from
  said incubator facility to such New  York  site  and  are  employed  and
  primarily  located by the taxpayer in New York. Such expenditures in the
  two preceding years shall be added to the amounts  otherwise  qualifying
  for the credit provided by this subsection that were paid or incurred in
  the  taxable year that the taxpayer relocated from such a facility. Such
  expenditures shall include expenses paid or  incurred  for  an  eligible
  employee  who is a full-time, full-year employee of said taxpayer during
  the taxable year that the taxpayer relocated from an incubator  facility
  notwithstanding (i) that such employee was employed full or part-time as
  an  officer,  staff-person  or  paid  intern  of  the taxpayer when such
  taxpayer was located at  such  incubator  facility  or  (ii)  that  such
  employee was not continuously employed when such taxpayer was located at
  the  incubator  facility  during  the  one  hundred  eighty  day  period
  referenced in subparagraph (c) of this paragraph, provided such employee
  received wages or equivalent income for at  least  seven  hundred  fifty
  hours  during any twenty-four month period when the taxpayer was located
  at the incubator facility. Such expenditures shall include payments made
  to such an employee after the taxpayer has relocated from the  incubator
  facility  for  qualified  expenditures  if  such  payments  are  made to
  reimburse such an  employee  for  qualified  expenditures  paid  by  the
  employee during such two preceding years. The credit provided under this
  subparagraph  shall be allowed, in any year that said taxpayer qualifies
  as an eligible taxpayer.
    (e) For purposes of this subsection the  term  "academic  year"  shall
  mean  the  annual  period  of  sessions  of  a post-secondary college or
  university.
    (f) For the purposes of this subsection the term  "academic  incubator
  facility"  shall  mean  a  facility  providing low-cost space, technical
  assistance, support services and  educational  opportunities,  including
  but  not  limited  to  central  services  provided by the manager of the
  facility to the tenants of the facility, to an  entity  located  in  New
  York state. Such entity's primary activity must be an activity described
  in  paragraph (b) of subdivision one of section thirty-one hundred two-e
  of  the public authorities law, and such entity must be in the formative
  stage of development. The academic incubator  facility  and  the  entity
  must  act  in  partnership  with an accredited post-secondary college or
  university located in New York state. An academic  incubator  facility's
  mission  shall  be to promote job creation, entrepreneurship, technology
  transfer, and provide support services to incubator tenants,  including,
  but   not   limited   to,   business  planning,  management  assistance,
  financial-packaging, linkages to financing  services,  and  coordinating
  with other sources of assistance.
    (6)  An  eligible taxpayer may claim credits under this subsection for
  four consecutive taxable years, except, if a taxpayer is located  in  an
  academic  incubator  facility  and  relocates within New York state to a
  nonacademic incubator site, then the taxpayer (i) may make  a  revocable
  election to defer the credit provided under this subsection to the first
  taxable  year  beginning  after  the taxpayer relocates from an academic
  incubator facility, and (ii) shall be eligible for such credit for  five
  consecutive  years.  In  no  case  shall  the  credit  allowed  by  this
  subsection to a taxpayer exceed two hundred fifty thousand  dollars  per
  year.
    (7)  If  the  amount  of  credit allowed under this subsection for any
  taxable year shall exceed the taxpayer's tax for such year,  the  excess
  shall  be treated as an overpayment of tax to be credited or refunded in
  accordance with the provisions of section six hundred eighty-six of this
  article, provided, however, that no interest shall be paid thereon.
    (8) The credit allowed under this subsection shall not  be  applicable
  for  taxable  years  beginning  on  or after January first, two thousand
  twelve.
    * (oo) Credit for  rehabilitation  of  historic  properties.  (1)  For
  taxable years beginning on or after January first, two thousand ten, any
  person,  firm,  partnership,  limited  liability company, corporation or
  other business entity shall be allowed a credit as hereinafter provided,
  against the tax imposed by this article,  in  an  amount  equal  to  one
  hundred  percent  of  the  amount of credit allowed the taxpayer for the
  same taxable year with respect to a certified historic  structure  under
  subsection  (c)  (2)  of section 47 of the federal internal revenue code
  with respect to a certified historic structure located within the state.
  Provided, however, the credit shall not exceed five million dollars.
    (2) Tax credits allowed pursuant to this subsection shall  be  allowed
  in  the  taxable  year  that  the  qualified rehabilitation is placed in
  service under section 167 of the federal internal revenue code.
    (3) If the credit allowed the taxpayer pursuant to section 47  of  the
  internal  revenue  code  with  respect  to a qualified rehabilitation is
  recaptured pursuant to subsection (a) of  section  50  of  the  internal
  revenue code, a portion of the credit allowed under this subsection must
  be added back in the same taxable year and in the same proportion as the
  federal recapture.
    (4)  If  the  amount of the credit allowable under this subsection for
  any taxable year shall exceed the taxpayer's  tax  for  such  year,  the
  excess  may  be  carried over to the following year or years, and may be
  applied against the taxpayer's tax for such year or years.
    (5) To be eligible for the credit allowable under this subsection  the
  rehabilitation  project  shall  be  in  whole or in part a targeted area
  residence within the meaning of section 143(j) of the  internal  revenue
  code or located within a census tract which is identified as being at or
  below  one hundred percent of the state median family income in the most
  recent federal census.
    * NB Effective until December 31, 2014
    * (oo)  Credit  for  rehabilitation  of  historic  properties. (1) For
  taxable years beginning on or after January first, two thousand seven, a
  taxpayer shall be allowed a credit as hereinafter provided, against  the
  tax imposed by this article, in an amount equal to thirty percent of the
  amount  of  credit  allowed  the taxpayer for the same taxable year with
  respect to a certified historic structure  under  subsection  (c)(3)  of
  section  47  of  the  federal  internal  revenue  code with respect to a
  certified  historic  structure  located  within  the  state.   Provided,
  however, the credit shall not exceed one hundred thousand dollars.
    (2)  If  the credit allowed the taxpayer pursuant to subsection (c)(3)
  of section 47 of the internal revenue code  is  recaptured  pursuant  to
  subsection  (a) of section 50 of the internal revenue code, a portion of
  the credit allowed under this subsection must be added back in the  same
  taxable  year as such recapture equal to thirty percent times the amount
  of the federal recapture.
    (3) If the amount of the credit allowable under  this  subsection  for
  any  taxable  year  shall  exceed  the taxpayer's tax for such year, the
  excess may be carried over to the following year or years,  and  may  be
  deducted from the taxpayer's tax for such year or years.
    * NB Effective December 31, 2014
    * NB There are 2 sb§(oo)'s
    * (oo)  Credit for companies who provide transportation to individuals
  with disabilities. (a) Allowance and amount of credit. A  taxpayer,  who
  provides   a   taxicab   service  as  defined  in  section  one  hundred
  forty-eight-a of the vehicle and traffic law, or  a  livery  service  as
  defined  in  section one hundred twenty-one-e of the vehicle and traffic
  law, shall be allowed a credit, to  be  computed  as  provided  in  this
  subsection,  against  the tax imposed by this article. The amount of the
  credit shall be equal to the incremental cost associated with  upgrading
  a  vehicle  so that it is accessible by individuals with disabilities as
  defined in paragraph (b) of this  subsection.  Provided,  however,  that
  such credit shall not exceed $10,000 per vehicle.
    (b) Definition. The term "accessible by individuals with disabilities"
  shall,  for  the  purposes  of  this subsection, refer to a vehicle that
  complies with federal regulations promulgated pursuant to the  Americans
  with Disabilities Act applicable to vans under 22 feet in length, by the
  federal  Department  of  Transportation, in Code of Federal Regulations,
  title 49,  parts  37  and  38,  and  by  the  federal  Architecture  and
  Transportation   Barriers   Compliance   Board,   In   Code  of  Federal
  Regulations, title 36, sections 1192.23, and the Federal  Motor  Vehicle
  Safety Standards, Code of Federal Regulations, title 49, part 57.
    (c)  Application  of  credit. If the amount of the credit shall exceed
  the taxpayer's tax for such year the excess shall be carried over to the
  following year or years, and may be deducted from the taxpayer's tax for
  such year or years.
    * NB Repealed December 31, 2010
    * NB There are 2 sb§(oo)'s
    (pp) Historic homeownership rehabilitation  credit.  (1)  For  taxable
  years  beginning  on  or  after  January  first,  two  thousand seven, a
  taxpayer shall be allowed  a  credit,  to  be  computed  as  hereinafter
  provided,  against  the  tax  imposed by this article. The amount of the
  credit shall be equal to twenty percent of the qualified  rehabilitation
  expenditures  made  by the taxpayer with respect to a qualified historic
  home and may  be  allowed  in  the  taxable  year  in  which  the  final
  certification step of the certified rehabilitation is completed.
    (A)  If  such  expenditures  relate  only to exterior work, the credit
  shall be  allowed  for  qualified  rehabilitation  expenditures  if  the
  exterior   work  has  been  approved  by  a  local  landmark  commission
  established pursuant to section ninety-six-a or one hundred  nineteen-dd
  of  the  general municipal law or by the office of parks, recreation and
  historic preservation.
    (B) If such expenditures relate to both exterior  and  interior  work,
  the  credit  shall  be allowed for qualified rehabilitation expenditures
  that have been approved by the office of parks, recreation and  historic
  preservation  or  by  a  local  government certified pursuant to section
  101(c)(1)  of  the  national  historic  preservation  act.  Under   this
  subparagraph,  approval  is  necessary  for the qualified rehabilitation
  expenditures related to both the exterior work on the qualified historic
  home and interior work affecting primary significant historic spaces  of
  the qualified historic home.
    (2)  * (A) With respect to any particular residence of a taxpayer, the
  credit allowed under paragraph one of this subsection shall  not  exceed
  fifty thousand dollars. In the case of a husband and wife, the amount of
  the credit shall be divided between them equally or in such other manner
  as  they  may  both elect. If a taxpayer incurs qualified rehabilitation
  expenditures in relation to more than one residence in  the  same  year,
  the  total  amount  of  credit  allowed  under  paragraph  one  of  this
  subsection for  all  such  expenditures  shall  not  exceed  twenty-five
  thousand dollars.
    * NB Effective until December 31, 2014
    * (A)  With  respect  to  any  particular residence of a taxpayer, the
  credit allowed under paragraph one of this subsection shall  not  exceed
  twenty-five  thousand  dollars.  In  the case of a husband and wife, the
  amount of the credit shall be divided between them equally  or  in  such
  other  manner  as  they  may  both elect. If a taxpayer incurs qualified
  rehabilitation expenditures in relation to more than  one  residence  in
  the same year, the total amount of credit allowed under paragraph one of
  this  subsection  for all such expenditures shall not exceed twenty-five
  thousand dollars.
    * NB Effective December 31, 2014
    * (B) If the amount of credit allowable under  this  subsection  shall
  exceed  the  taxpayer's  tax  for such year, and the taxpayer's New York
  adjusted gross income for such  year  does  not  exceed  sixty  thousand
  dollars,  the  excess  shall  be  treated as an overpayment of tax to be
  credited or refunded in accordance with the provisions  of  section  six
  hundred  eighty-six of this article, provided, however, that no interest
  shall be paid thereon. If the taxpayer's New York adjusted gross  income
  for such year exceeds sixty thousand dollars, the excess credit that may
  be  carried over to the following year or years and may be deducted from
  the taxpayer's tax for such year or years.
    * NB Effective until December 31, 2014
    * (B) If the amount of credit allowable under  this  subsection  shall
  exceed  the taxpayer's tax for such year, the excess may be carried over
  to the following year or years and may be deducted from  the  taxpayer's
  tax for such year or years.
    * NB Effective December 31, 2014
    (3)(A)  The  term  "qualified  rehabilitation  expenditure" means, for
  purposes of this subsection, any amount properly chargeable to a capital
  account:
    (i) in connection with the certified  rehabilitation  of  a  qualified
  historic home, and
    (ii)  for  property  for  which  depreciation would be allowable under
  section 168 of the internal revenue code if the qualified historic  home
  were used in a trade or business.
    (B) Such term shall not include (i) the cost of acquiring any building
  or   interest   therein,   (ii)  any  expenditure  attributable  to  the
  enlargement of an existing building, or (iii) any expenditure made prior
  to January first, two thousand seven.
    (C) Such term shall not include any expenditure in connection with the
  rehabilitation of a qualified historic home unless at least five percent
  of the  total  expenditures  made  in  the  rehabilitation  process  are
  allocable to the rehabilitation of the exterior of such building.
    (D)  If  only  a  portion  of a building is used as a residence of the
  taxpayer, only qualified rehabilitation expenditures which are  properly
  allocable  to such residential portion shall be taken into account under
  this subsection.
    (4)(A) The term "certified rehabilitation" means, for purposes of this
  subsection, any rehabilitation of a certified historic  structure  which
  has  been  approved and certified as being consistent with the standards
  established by  the  commissioner  of  parks,  recreation  and  historic
  preservation  for  rehabilitation by the office of parks, recreation and
  historic preservation, a local government certified pursuant to  section
  101(c)(1)  of the national historic preservation act or a local landmark
  commission established pursuant to section ninety-six-a or  one  hundred
  nineteen-dd of the general municipal law.
    (B) A certified rehabilitation shall require:
    (i)  an  initial certification that the structure meets the definition
  of the term "certified historic structure";
    (ii) a second certification,  to  be  issued  prior  to  construction,
  certifying  that  the  proposed  rehabilitation  work is consistent with
  standards established by  the  commissioner  of  parks,  recreation  and
  historic preservation for rehabilitation; and
    (iii)  a  final  certification  issued when construction is completed,
  certifying that the work was completed as proposed and  that  the  costs
  are  consistent  with the work completed. Such final certification shall
  be  acceptable  as  proof  that  the  expenditures   related   to   such
  construction   qualify  as  qualified  rehabilitation  expenditures  for
  purposes of the credit allowed under either subparagraph (A) or  (B)  of
  paragraph one of this subsection.
    (5)(A)  The term "qualified historic home" means, for purposes of this
  subsection, a certified  historic  structure  located  within  New  York
  state:
    (i) which has been substantially rehabilitated,
    (ii)  which,  or  any portion of which, is owned, in whole or part, by
  the taxpayer,
    (iii) in which the taxpayer resides during the taxable year  in  which
  the taxpayer is allowed a credit under this subsection, and
    * (iv)  which  is in whole or in part a targeted area residence within
  the meaning of section 143(j) of the internal revenue code or is located
  within a census tract which is identified  as  being  at  or  below  one
  hundred  percent  of  the  state median family income in the most recent
  federal census.
    * NB Effective until December 31, 2014
    * (iv) which is in whole or in part a targeted area  residence  within
  the  meaning  of section 143(j) of the internal revenue code and located
  within an area of a city, town  or  village  whose  governing  body  has
  identified  by resolution that such area is in need of community renewal
  because of deteriorated and/or vacant buildings and, by local  law,  has
  adopted  a  historic  preservation  and  community  renewal  program  to
  preserve and/or  revitalize  such  area.  A  historic  preservation  and
  community  renewal  program is a program that coordinates all applicable
  governmental benefits and programs with the aims  of  preserving  and/or
  revitalizing  neighborhoods,  encouraging  property  owners  to complete
  substantial rehabilitation projects and promoting smart growth  economic
  development.  Such  local  laws shall be filed with the office of parks,
  recreation and historic preservation. The office  of  parks,  recreation
  and  historic  preservation shall assist local governments in developing
  historic preservation and community renewal programs.
    * NB Effective December 31, 2014
    (B)  A  building  shall  be  treated  as  having  been  "substantially
  rehabilitated"  if the qualified rehabilitation expenditures in relation
  to such building total five thousand dollars or more.
    (6) The term "certified historic structure"  means,  for  purposes  of
  this subsection, any building (and its structural components) which:
    (i) is listed in the state or national register of historic places, or
    (ii)  is  located  in a state or national registered historic district
  and is certified as being of historic significance to the district.
    (7)  If  the  taxpayer  holds  stock  as  a  tenant-shareholder  in  a
  cooperative  housing  corporation,  such  taxpayer  shall  be treated as
  owning the house or apartment which the taxpayer is entitled  to  occupy
  as such shareholder.
    (8)(A)   A   percentage   of   the  total  expenditures  made  in  the
  rehabilitation of the exterior of a building containing  cooperative  or
  condominium  dwelling units shall be attributed to each such unit within
  the building based on the percentage of space each  such  unit  occupies
  within the building.
    (B)  In  the case of a building where less than the entire building is
  used as a residence of the taxpayer,  only  the  portion  of  the  total
  expenditures  made  in  the  rehabilitation  of  the  building  that  is
  attributable to the residence  of  the  taxpayer  shall  be  treated  as
  qualified   rehabilitation   expenditures   for  the  purposes  of  this
  subsection.
    (C) In the case of a building that is owned by and is a  residence  of
  two  or  more persons, other than a husband and wife, the portion of the
  total expenditures made in the rehabilitation of the  building  that  is
  attributable  to each taxpayer shall be equal to the taxpayer's share of
  ownership in such building.
    (9) In the case of a building other than a building to which paragraph
  ten of this subsection applies,  qualified  rehabilitation  expenditures
  shall  be treated for purposes of this subsection as made on the date of
  the final certification referred to in clause (iii) of subparagraph  (B)
  of paragraph four of this subsection.
    (10)(A)  In  the  case  of  a  purchased  qualified historic home, the
  taxpayer shall be treated as having made, on the date of  purchase,  the
  qualified  rehabilitation  expenditures made by the seller of such home.
  For purposes of this subsection, expenditures made by the  seller  shall
  be deemed qualified rehabilitation expenditures if such expenditures, if
  made by the purchaser, would have so qualified.
    (B)  The  term "purchased qualified historic home" means any qualified
  historic home purchased by the taxpayer if:
    (i) the taxpayer is the first purchaser of such home after the date of
  the final certification referred to in clause (iii) of subparagraph  (B)
  of  paragraph  four  of  this subsection, and the purchase occurs within
  five years after such date,
    (ii) the taxpayer, during the taxable year in which  the  taxpayer  is
  allowed a credit under this subsection, resides in such home,
    (iii)  no  credit was allowed to the seller under this subsection with
  respect to such rehabilitation, and
    (iv)   the   taxpayer  is  furnished  with  such  information  as  the
  commissioner determines is necessary to determine any credit under  this
  subsection.
    (11)(A)  If, before the end of the two-year period beginning either on
  the date of the final certification  referred  to  in  clause  (iii)  of
  subparagraph  (B)  of paragraph four of this subsection or, if paragraph
  ten of this subsection applies, on the date of purchase of such building
  by the taxpayer, the taxpayer disposes of such  taxpayer's  interest  in
  such  building, or such building ceases to be used as a residence of the
  taxpayer, the taxpayer's tax imposed by this  article  for  the  taxable
  year in which such disposition or cessation occurs shall be increased by
  the  recapture  portion  of the credit allowed under this subsection for
  all prior taxable years with respect to such rehabilitation.
    (B) For purposes of subparagraph (A) of this paragraph, the  recapture
  portion  shall  be  the  product  of the amount of credit claimed by the
  taxpayer multiplied by a ratio, the  numerator  of  which  is  equal  to
  twenty-four  less  the  number  of  months  the  building is used as the
  taxpayer's residence and the denominator of which is twenty-four.
    (12) Nothing contained in this subsection shall be construed to impose
  a duty upon a local landmark commission established pursuant to  section
  ninety-six-a  or one hundred nineteen-dd of the general municipal law or
  a local government  certified  pursuant  to  section  101(c)(1)  of  the
  national  historic  preservation act to undertake any review or approval
  of an  application  for  the  certification  of  the  rehabilitation  of
  historic  structures  and of rehabilitation expenditures provided for in
  this subsection.
    (yy) Order of credits. Credits  allowable  under  this  article  which
  cannot  be  carried  over and which are not refundable shall be deducted
  first.  Credits allowable under this article which can be carried  over,
  and  carryovers  of such credits, shall be deducted next, and among such
  credits, those whose carryover is of limited duration shall be  deducted
  before those whose carryover is of unlimited duration. Credits allowable
  under this article which are refundable shall be deducted last.
    (zz) Cross references.--For credit in respect of:
    (1) taxes withheld on wages, see section six hundred seventy-three,
    (2)  taxes  imposed  on  a  resident  by other states, see section six
  hundred twenty,
    (3) taxes overpaid for a prior taxable year, see section  six  hundred
  eighty-six,
    (4)  taxes  paid  by  a  trust  for  a  prior  taxable  year on income
  subsequently distributed, see sections six hundred  twenty-one  and  six
  hundred thirty-five.