New York Employment Incentive Credit for the Financial Services Industry (OBSOLETE)

Employment Incentive Credit for the Financial Services Industry (OBSOLETE)
Form IT-252-ATT:2017:Employment Incentive Credit for the Financial Services Industry:IT252att
IT-252-ATT

Department of Taxation and Finance

Employment Incentive Credit for the
Financial Services Industry
Tax Law – Article 22, Section 606(a-1)

Submit this form with Form IT-252, Investment Tax Credit for the Financial Services Industry.
	 Name(s) as shown on return	

Type of business	

Identifying number as shown on return

Use this form to claim an employment incentive credit for property that qualifies for the investment tax credit that is used in the ordinary
course of a taxpayer’s business as a broker or dealer in connection with the purchase or sale of stocks, bonds, or other securities,
or in providing investment advisory services for a regulated investment company. The property must be placed in service on or after
October 1, 1998, and before October 1, 2015.

Employment incentive credit
Part 1 – Eligibility for employment incentive credit (see Instructions on back)
	
A	
B	 C	D	 E	 F	
G	 H*
	
Year	
Mar. 31	 June 30	 Sept. 30	 Dec. 31	
Total	
Average	 Percent
(B + C + D + E)	 (see instructions)	
%
						
	 A.	 This section intentionally left blank
	1
	2
	B.	 Second succeeding year: Use with Part 2, line 6
	3	 Year	
	 Number of NY State employees in employment base year
	 4	 Year	
 	 Number of NY State employees in the credit year
* Divide the average number of employees in the credit year by the average number of employees in the base year (column G).
Round the result to the second decimal place. If the percentage in column H is less than 101% (1.01), stop; you do not qualify for the
employment incentive credit.

Part 2 – Computation of employment incentive credit (see Instructions on back)
	A	
	 Tax year in which	
	 investment tax	
	credit was allowed	
		

B	
Amount of investment credit	
base upon which original	
investment tax credit	
was allowed

	5	This line intentionally left blank
	6	 Information for second succeeding year: Use
		 percentage on line 4, column H, to determine rate	
	 7	 Enter the column C amount from line 6 (enter here and on Form IT-252, line 1)....................................	

	

	

C
Employment incentive
credit

(multiply column B by the
appropriate rate from Tax rate
schedule below)

.00	

.00

7	

.00

Tax rate schedule – Employment incentive credit rates to be used in Part 2 above
If the percentage in Part 1, column H is at least:	

The employment incentive credit rate is:

	
101% but less than 102%......................................................................	 1½% (.015) of investment credit base
	
102% but less than 103%......................................................................	 2% (.02) of investment credit base
	103%.....................................................................................................	 2½% (.025) of investment credit base

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IT-252-ATT (2017) (back)

Instructions

General information
If you placed property in service on or after October 1, 1998,
and before October 1, 2015, and that property qualified for the
investment tax credit, you may be entitled to the employment
incentive credit (EIC). If you qualify, the credit is allowed for each
of the two years immediately following the tax year in which the
investment credit was allowed. However, the EIC for the first
succeeding year has expired. You may only compute the EIC for the
second succeeding year.
Example: A partnership filed its partnership return using a
fiscal year of February 1, 2015, through January 31, 2016. The
partnership placed property in service on July 15, 2015, that
qualified for the investment tax credit. The partnership should
complete Form IT‑252‑ATT for tax year February 1, 2017, through
January 31, 2018, to determine if the partners of the partnership
are eligible to claim the employment incentive credit for the second
succeeding year.
The amount of the credit is a percentage of the original investment
credit base on which the investment tax credit was allowed. The
percentage used to compute the credit is based upon the level of
employment in the year during which the credit may be claimed
compared to the level of employment in the base year. However, the
credit will not be allowed for a year if the taxpayer’s average number
of employees in New York State during that year is not at least 101%
of the taxpayer’s average number of employees in New York State
during the base year. A taxpayer that has claimed an investment tax
credit for property it purchased that is principally used by an affiliate
of the taxpayer may also be eligible for an employment incentive
credit. In this case, the credit is allowed based on the taxpayer’s
average number of employees in New York State. The number of
the affiliate’s employees is not taken into consideration.
Generally, the base year is the tax year immediately preceding the
tax year for which the original investment tax credit was claimed.
However, if the business was not in operation in New York State
during that year, the base year is the tax year for which the original
investment tax credit was claimed.
If you cannot claim all of your employment incentive credit because
it is more than your New York State tax less other credits, you can
carry over the unused amount to the following ten tax years; or, if
you are the owner of a new business, you may qualify for a refund
(see Refundable unused credit on Form IT-252-I).

Specific instructions

See the instructions for your tax return for the Privacy notification or
if you need help contacting the Tax Department.

Part 1 – Eligibility for employment incentive credit

Lines 1 and 2 – The EIC for the first succeeding year has expired.
Therefore, these lines require no entry and have been shaded.
Lines 3 and 4 – Complete these lines to determine if you are
eligible for the credit. If you are eligible, complete Part 2, line 6.
Column A – Enter in column A the credit year (line 4) and the base
year (line 3). The credit year is the tax year you are claiming the
employment incentive credit. The base year is the year preceding
the year for which you claimed the original investment tax credit.
However, if your business was not in operation in New York State
during that year, the base year is the year for which you claimed the
investment tax credit.
Columns B through E – Enter the total number of employees
employed within New York State on each of the dates listed that
occur during your credit and base tax years.

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Example: A taxpayer filing for a fiscal year beginning September 1,
2017, and ending August 31, 2018, would enter on line 4 for the
second succeeding year the number of employees employed
in New York State on the following dates: September 30, 2017;
December 31, 2017; March 31, 2018; and June 30, 2018.
Caution: If you are also claiming the empire zone (EZ) wage credit
for the credit year, do not include on line 4 any employees for whom
you are claiming that wage credit.
Column G – Unless you have a short tax year, divide the amount in
column F by four. If you have a short tax year (a tax year of less than
12 months), divide the amount in column F by the number of dates
shown in columns B through E that occur during the short tax year.
Column H – If you are claiming the credit for the second succeeding
year, divide the amount on line 4, column G, by the amount on
line 3, column G, and round the result to the second decimal place.
If the percentage in column H, line 4, is at least 101% (1.01),
complete Part 2, line 6. If the percentage in column H, line 4, is less
than 101%, stop; you do not qualify for the employment incentive
credit for this year.

Part 2 – Computation of employment incentive credit
Line 5 – The EIC for the first succeeding year has expired.
Therefore, this line requires no entry and has been shaded.

Line 6
Column A – Enter in column A the tax year in which the original
investment tax credit was allowed.
Column B – Enter in column B the amount of the investment credit
base (not the amount of the investment tax credit) that was used
to compute the original investment tax credit. Do not include in
column B the investment credit base for any property for which you
are claiming the EZ employment incentive credit.
Column C – Multiply the column B amount by the appropriate rate
from the Tax rate schedule. However, if the property that qualified for
the investment tax credit was disposed of or was not in qualified use
at the end of the credit year, figure the amount of credit to claim as
follows:
– 	 For depreciable property under Internal Revenue Code (IRC)
section 167, multiply the credit by a fraction; the numerator is the
number of months of qualified use, and the denominator is the
number of months of useful life of the property.
– 	 For property subject to the provisions of IRC section 168, multiply
the credit by a fraction; the numerator is the number of months of
qualified use, and the denominator is:
• 	36 for three-year property,
• 	the number of months you chose for buildings or structural
components of buildings, or
• 	60 for all other classes of property.