New York Claim for Empire State Commercial Production Credit

Claim for Empire State Commercial Production Credit
Form CT-246 Claim for Empire State Commercial Production Credit Tax Year 2023
	

CT-246

Department of Taxation and Finance

	
	

Claim for Empire State Commercial
Production Credit

	

Tax Law – Article 1, Section 28 and Article 9-A, Section 210-B.23

All filers must enter tax period:
beginning
	Legal name of corporation	

ending
Employer identification number (EIN)

Attach to Form CT-3, CT-3-A, or CT-3-S.
Part 1 – Computation of commercial production credit available for use (see instructions)
	 1	 Enter the amount of commercial production credit (see instructions) .................................................... 	
	2	 Commercial production credit from partnership(s) (from line 18).......................................................... 	
	 3	 Add lines 1 and 2 (New York S corporations see instructions) .................................................................. 	
	4	 Unused commercial production credit carried over from the previous tax year ................................. 	
	5	 Total commercial production credit available in the current tax year (add lines 3 and 4) ....................... 	

1
2
3
4
5

Part 2 – Computation of commercial production credit used, refunded, and carried forward (see instructions;

	
New York S corporations do not complete this part)
	 6	 Tax due before credits (see instructions) .................................................................................................	
	7	 Tax credits claimed before the commercial production credit (if none, enter 0; see instructions) ............. 	
	 8	 Tax after application of all other credits (subtract line 7 from line 6) ..........................................................	
	 9	 Fixed dollar minimum tax (see instructions) .............................................................................................	
	10	 Limitation on commercial production credit to be used this period (subtract line 9 from line 8; if line 8
		  is less than line 9, enter 0) ................................................................................................................... . 	
	11	 Commercial production credit to be used this year (see instructions) ................................................... 	
	12	 Subtract line 11 from line 3; if line 11 is greater than line 3, enter 0 .................................................... 	
	13	 Subtract line 11 from line 5 ................................................................................................................. 	
	14	 Amount available for carryforward (multiply line 12 by 50% (.5)) ............................................................. 	
	15	 Amount of commercial production credit available for refund (subtract line 14 from line 13) ................... 	
	16	 Amount of commercial production credit you want to be refunded (limited to the amount on line 15;
		  see instructions) .................................................................................................................................. 	
	17	 Amount of refundable commercial production credit you want to be applied to next year’s tax
		  (subtract line 16 from line 15; see instructions) .......................................................................................... 	

6
7
8
9
10
11
12
13
14
15
16
17

Part 3 – Partnership information (attach additional sheets as necessary)
	

Name of partnership	

Partnership’s EIN	

Credit amount allocated

Total from additional sheet(s), if any ..............................................................................................................
	18	 Total credit amount allocated from partnerships (enter here and on line 2) ............................................ 	 18

A	 If you are claiming this credit as a corporate partner, mark an X in the box .................................................................................... 	

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Page 2 of 2  CT-246 (2023)

Instructions

General information

For tax years beginning on or after January 1, 2007, Tax Law
sections 28 and 210-B.23 provide for tax credits for qualified
commercial production companies. The Empire State commercial
production credit (also referred to simply as the commercial
production credit) is available to taxpayers subject to tax under
Article 9‑A or Article 22. This form is for taxpayers subject to tax
under Article 9‑A. Those subject to tax under Article 22, complete
Form IT‑246, Claim for Empire State Commercial Production Credit.
The credit is allowed for qualified production costs paid or incurred
in the production of a qualified commercial in New York State. The
credit is allowed for the tax year in which the production of the
qualified commercial is completed. The credit may not reduce the
tax due below the fixed dollar minimum tax. Any amount not used in
the current tax year may be refunded or credited as an overpayment
to next year’s tax. The refund is limited to 50% of the excess credit
in the current year; the balance may be carried forward to the
following tax year and may be deducted from the tax in that year. All
remaining excess after application in the succeeding year may also
be refunded or credited as an overpayment to the succeeding tax
year. No interest will be paid on the refund. Production costs used
as the basis for allowance of this credit or used in the calculation of
this credit cannot be used to claim any other credit.
The credit is not allowed against the metropolitan transportation
business tax (MTA surcharge) under Article 9-A.
The amount of credit allowed for the current tax year is allocated by
the New York State Governor’s Office of Motion Picture & Television
Development. Attach a copy of your certificate from that office for the
credit allowed. For rules and regulations regarding the credit, contact
the New York State Governor’s Office of Motion Picture & Television
Development at [email protected] or call 212-803-2328.

Corporate partners

If you are a corporate partner who has commercial production
credits passed through to you from a partnership, enter your pro rata
share of the commercial production credits passed through to you
from the partnership in Part 1, line 2. Also, enter the name and
EIN of the partnership in Part 3. Enter on line 1 only the amount of
commercial production credit allocated to your corporation by the
New York State Governor’s Office of Motion Picture & Television
Development.

New York S corporations

New York S corporations will calculate an amount of commercial
production credit. However, the S corporation may not use the
commercial production credit against its own tax liability; instead,
the credit is passed through to the shareholders to use against their
personal income tax liabilities on their New York State tax returns.
New York S corporations complete lines 1 through 3. You must
also complete Part 3 if you are receiving the credit, or a portion
of the credit from a partnership. Include the line 3 amount on
Form CT‑34‑SH, New York S Corporation Shareholders’ Information
Schedule, which is filed with your New York State corporation
tax return. Attach Form CT‑246 to your Form CT‑3‑S, New York
S Corporation Franchise Tax Return.
Provide all shareholders with the amount of their pro rata share of
the commercial production credit calculated. The shareholders will
file their own Form IT‑246 to claim the credit on their New York State
personal income tax returns.

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Combined filers

A taxpayer filing a combined return as a member of a combined
group is allowed to claim the commercial production credit. The
commercial production credit is computed on a separate basis, but
is applied against the combined tax.

Line instructions
Part 1 – Computation of commercial production credit
available for use
Line 1 – Obtain this amount from the New York State Governor’s
Office of Motion Picture & Television Development. Attach your
certificate.

Line 2 – Obtain this amount from the partnership(s) allocating this
credit to you. Complete Part 3, Partnership information, and mark an
X in box A at the bottom of the form.
Line 3 – New York S corporations: Include this amount on
Form CT‑34‑SH.
Line 4 – Obtain this amount from the previous tax year’s
Form CT‑246.

Part 2 – Computation of commercial production
credit used, refunded, and carried forward (New York

S corporations do not complete this part)

Line 6 – Enter the amount from Form CT-3 or CT-3-A, Part 2, line 2,
plus any net recaptured tax credits.
Line 7 – You must apply certain credits before the commercial
production credit. Refer to Form CT‑600‑I, Instructions for
Form CT-600, Ordering of Corporation Tax Credits, for the proper
ordering of your credits. If you are claiming more than one credit,
enter the total amount of credits applied against the current year’s
corporation franchise tax before the commercial production credit.
If the commercial production credit is the only credit that is being
applied against the current year’s corporation franchise tax, enter 0.
If filing as a member of a combined group, include any amount of
tax credit(s), including the commercial production credit(s), being
claimed by other members of the combined group that you want to
apply before the commercial production credit claimed on this form.
Line 9 – Enter the fixed dollar minimum tax from Form CT-3 or the
designated agent’s fixed dollar minimum tax from Form CT-3-A.
Lines 11, 16, and 17 – On line 11, enter the lesser of line 5 or
line 10. Transfer the amounts from lines 11, 16, and 17 to your
franchise tax return.

Need help? and Privacy notification

See Form CT-1, Supplement to Corporation Tax Instructions.