New York Claim for QEZE Credit for Real Property Taxes

Claim for QEZE Credit for Real Property Taxes
Form CT-606 Claim for QEZE Credit for Real Property Taxes Tax Year 2023
Department of Taxation and Finance

Claim for QEZE Credit for Real Property Taxes
Tax Law - Article 1, Section 15

CT-606

Note: You must file all pages (1 through 8) with your return. All taxpayers must complete the information below and then complete
either Section 1 (pages 1 through 3) or Section 2 (pages 5 through 8). Do not complete both sections.
	Legal name of corporation	

All filers must enter tax period: beginning

ending
Employer identification number (EIN)

	 Name of empire zone(s)

File this form with your corporation franchise tax return Form CT-3, CT-3-A, CT-3-S, CT-33, CT‑33‑NL, or CT-33-A.
Mark an X in the appropriate box when answering Yes or No questions.
Are you a clean energy enterprise (CEE)?.............................................................................................................. 	Yes	

No

Are you a QEZE first certified between August 1, 2002 and March 31, 2005, that conducts its operations on real property
it owns or leases that is located in an empire zone (EZ) and that is subject to a BCA executed prior to January 1, 2006?..... 	Yes	

No

Section 1 – For QEZEs first certified prior to April 1, 2005 (see Important information in the instructions)
Date of first certification by Empire State Development (mm-dd-yy; attach copies of all certificates of eligibility,
  including retention certificates)....................................................................................................................................

Schedule A­– Employment test for QEZEs first certified prior to April 1, 2005 (see instructions)

Part 1 – EZ employment – Computation of the employment number within all EZs for the current tax year and in the five-year base
period: Include employees within all EZs even if you are not certified in all of those zones (see instructions).
	Current tax year employment number	
March 31 	
June 30	 September 30	 December 31	
Total
	Number of full-time employees within all EZs
	 1	 Current tax year employment number within all EZs (do not round; see instructions)............................ 	1
	Base period employment number 	 Tax year ending	 March 31	
June 30	
September 30	 December 31	
Total
		
(mm-yy)
	a	 Number in base year 1
	b	 Number in base year 2
	 c	 Number in base year 3
	d	 Number in base year 4
	e	 Number in base year 5
	 f	 Total number of full-time employees within all EZs in the base period......................................................... 	
	 2	 Base period employment number within all EZs (do not round; see instructions)................................... 	
2	
	3	 Does the amount on line 1 equal or exceed the amount on line 2? (see instructions)..........................	

3	

Yes	No

Part 2 – New York State employment outside all EZs – Computation of the employment number inside New York State and

outside all EZs (whether or not you are certified in all of those EZs) for the current tax year and in the five-year base period (see instructions)
	Current tax year employment number	
March 31 	
June 30	 September 30	 December 31	
Total
	Number of full-time employees inside
	New York State and outside all EZs
	 4	 Current tax year employment number inside New York State and outside all EZs (do not round)....... 	
4
	Base period employment number 	Tax year ending	 March 31	
June 30	 September 30	 December 31	
		
(mm-yy)
	a	 Number in base year 1
	b	 Number in base year 2
	 c	 Number in base year 3
	d	 Number in base year 4
	e	 Number in base year 5
	 f	 Total number of full-time employees inside New York State and outside all EZs in the base period........... 	
	 5	 Base period employment number inside New York State and outside all EZs (do not round).............. 	
5
	 6	 Does the amount on line 4 equal or exceed the amount on line 5? (see instructions)..........................	
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Total

6	Yes	

No

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Schedule B – Computation of test year employment number within the EZs in which you are certified
	Test year	

to	(mm-yy)	

March 31	

June 30	

September 30	 December 31	

Total

	Number of full-time employees within the EZs
	7	 Test year employment number within the EZs in which you are certified (see instructions; also enter on line 9). 	7

Schedule C – Employment increase factor (see instructions)
	8	Current tax year employment number within the EZs in which you are certified
		  (see instructions)............................................................................................................................... 	
	9	Test year employment number within the EZs in which you are certified (from line 7)............................	
	10	 Subtract line 9 from line 8.................................................................................................................. 	
	11	 Divide line 10 by line 9 (carry result to four decimal places; if line 9 is zero and line 8 is greater than zero, enter 1.0 here).... 	
	12	 Divide line 10 by 100 (carry result to four decimal places)....................................................................... 	
	13	 Employment increase factor (enter the greater of line 11 or 12, but not more than 1.0; also enter on line 15)...... 	

8
9
10
11
12
13

Schedule D – Computation of QEZE credit for real property taxes for QEZEs first certified prior to April 1, 2005
	14	
	15	
	16	
	17	
	18	
	19	
	20	
	21	

Tax year of the business tax benefit period	
; benefit period factor (from table below)............ 	 14
Employment increase factor (from line 13).............................................................................................	 15
Eligible real property taxes (see instructions)........................................................................................ 	 16
QEZE credit for real property taxes (multiply line 14 by line 15 by line 16).............................................. 	17
Recapture of QEZE credit for real property taxes (from Worksheet A on page 5 of instructions) ............. 	18
QEZE credit for real property taxes after recapture (subtract line 18 from line 17; see instructions)......... 	 19
QEZE credit for real property taxes limitation (see instructions, do not enter zero)................................. 	 20
QEZE credit for real property taxes allowed (see instructions)............................................................. 	 21
Benefit period factor table*

	 Tax year of 	
	 benefit period	
	
1 - 10	
	11	
	
12	

Benefit period	
factor**	

1.0	
0.8	
0.6	

Tax year of	
benefit period	

13	
14	
15	

Benefit period
factor**

0.4
0.2
0.0

	 *	The QEZE credit for real property taxes is generally available for up to 	
14 years for taxpayers that continue to qualify.
	**	For an owner of a qualified investment project or a significant capital 		
investment project, the benefit period factor will be 1.0 during the entire
business tax benefit period.
Find the tax year of your business tax benefit period (enter a number from
1 to 15 for your benefit period). Enter the benefit period factor for that
year (from Benefit period factor table) on line 14.
(continued)

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Schedule E – Application of QEZE credit for real property taxes (New York S corporations do not complete Schedule E)
	22	 Enter your franchise tax (see instructions)..............................................................................................	
	23	 Tax credits claimed before the QEZE credit for real property taxes (if applying multiple credits on your
		
  franchise tax return, see instructions).................................................................................................... 	
	24	 Subtract line 23 from line 22................................................................................................................ 	
	25	 Enter appropriate tax:
		 Article 9-A – Enter the fixed dollar minimum tax from Form CT-3 or the designated agent’s
		  fixed dollar minimum tax from Form CT-3-A
		 Article 33 – Enter 250
		 Article 33 combined – Enter the sum of lines 4 and 12 from Form CT-33-A........................................	
	26	 Credit limitation (subtract line 25 from line 24; if less than zero, enter 0).................................................... 	
	27	 QEZE credit for real property taxes to be used this period (see instructions)....................................... 	
	28	 Unused QEZE credit for real property taxes (subtract line 27 from line 21)............................................ 	
	29	 Amount of unused credit on line 28 to be refunded (see instructions).................................................. 	
	30	 Amount of unused, nonrefunded credit to be credited as an overpayment to next year’s tax
		  (subtract line 29 from line 28; see instructions)...................................................................................... 	

22

23
24

25
26
27
28
29
30

Schedule F – Related entities

List the names and EINs of any related business entities. Attach additional sheets if necessary.
See Related persons on page 1 of the instructions to determine if an entity is related.
	Name	

EIN

Schedule G – Valid business purpose for QEZEs first certified prior to August 1, 2002 (see instructions)
If you are claiming that the QEZE was formed for a valid business purpose, mark an X in the box and attach a notarized
  statement describing in detail how your QEZE meets the valid business purpose test. ....................................................................

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Section 2 begins on page 5.

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Claim for QEZE Credit for Real Property Taxes
Section 2 – For QEZEs first certified on or after April 1, 2005 (see Important information in the instructions)

Note: You must file all pages (1 through 8) with your return. All taxpayers must complete the information above Section 1 on page 1
and then complete either Section 1 (pages 1 through 3) or Section 2 (pages 5 through 8). Do not complete both sections.
	Legal name of corporation	

All filers must enter tax period: beginning
ending
Employer identification number (EIN)

	 Name of empire zone(s): Indicate whether each zone is a development zone (DZ) or investment zone (IZ) (attach additional sheets if necessary).

File this form with your corporation franchise tax return Form CT-3, CT-3-A, CT-3-S, CT-33, CT‑33‑NL, or CT-33-A.
Date of first certification by Empire State Development (mm-dd-yy; attach copies of all certificates of eligibility,
  including retention certificates)...................................................................................................................................
Year of the business tax benefit period (see instructions)..........................................................................................................

Schedule H­– Employment test for QEZEs first certified on or after April 1, 2005 (see instructions)
Part 1 – EZ employment – Computation of the employment number within all EZs for the current tax year and in the four-year base
period: Include employees within all EZs even if you are not certified in all of those zones (see instructions).
	Current tax year employment number	
March 31 	
June 30	 September 30	 December 31	
Total
	Number of full-time employees within all EZs
	31	 Current tax year employment number within all EZs (do not round; see instructions)............................ 	31
	Base period employment number 	Tax year ending	 March 31	
June 30	 September 30	 December 31	
Total
		
(mm-yy)
	a	 Number in base year 1
	b	 Number in base year 2
	 c	 Number in base year 3
	d	 Number in base year 4
	e	 Total number of full-time employees within all EZs in the base period......................................................... 	
	32	 Base period employment number within all EZs (do not round; see instructions)................................... 	 32	
	33	 Does the amount on line 31 exceed the amount on line 32? (see instructions).....................................	 33	

Yes	No

Part 2 – New York State employment – Computation of the employment number inside New York State for the current tax year
and in the four-year base period (see instructions)
	Current tax year employment number	
March 31 	
June 30	
September 30	 December 31	
Total
	Number of full-time employees in New York State
	34	 Current tax year employment number in New York State (do not round)............................................. 	34
	Base period employment number 	Tax year ending	 March 31	
June 30	 September 30	 December 31	
Total
		
(mm-yy)
	a	 Number in base year 1
	b	 Number in base year 2
	 c	 Number in base year 3
	d	 Number in base year 4
	e	 Total number of full-time employees in New York State in the base period.................................................. 	
	35	 Base period employment number in New York State (do not round)....................................................	 35
	36	 Does the amount on line 34 exceed the amount on line 35? (see instructions).....................................	 36	Yes	
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No

Page 6 of 8  CT-606 (2023)

Schedule I – Computation of net new employment
37		 Current year employment number in the EZs in which you are certified (see instructions).................. 	
38		 Base period employment number in the EZs in which you are certified (see instructions)................... 	
39		 Net new employment number (subtract line 38 from 37)........................................................................ 	

37
38
39

Schedule J – DZ employment increase factor (Complete Schedule J if you are certified in one or more zones and
any of these zones is a DZ, and you are not a manufacturer.)
	

Net new employees (from line 39)	

DZ employment increase factor

	 1 to 10.....................................................................	0.25
	 11 to 49...................................................................	0.50
	 50 to 75...................................................................	0.75
	 76 and above..........................................................	 New employees (from line 39) divided by 100.
		
This number cannot exceed 1.0
40		 DZ employment increase factor from table above............................................................................. 	

40

Schedule K – Employee information
Enter name, Social Security number, employee’s zone location and wage and benefit information for all new employees included in the
net new employment number on line 39 upon which this claim is based. Attach additional sheets if necessary.
A
Employee’s name

B
Employee’s Social
Security number

C
Employee’s zone
location
(see instructions)

D
Total wages, health benefits,
and retirement benefits

E
Eligible wages, health benefits,
and retirement benefits
included in column D
(enter no more than $40,000
per employee)

Total from column E of any additional sheet(s)..................................................................................................
41		 Total eligible wages, health benefits, and retirement benefits (add column E amounts; see instructions)....	 41
(continued)

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Schedule L – Computation of credit for QEZEs certified in DZs (see instructions)
	 42	 Eligible wages, health benefits, and retirement benefits from line 41.................................................	
	43	 25% (.25) factor..................................................................................................................................	
	44	 DZ employment increase factor from line 40......................................................................................	
	 45	 QEZE credit for real property taxes for QEZEs certified in DZs (multiply line 42 by line 43 by line 44)......... 	

42
43	
44
45

.25

Schedule M – Computation of QEZE credit for real property taxes for manufacturers and QEZEs
certified only in an IZ (see instructions)
	 46	 Eligible wages, health benefits, and retirement benefits from line 41.................................................	 46
	47	 25% (.25) factor..................................................................................................................................	 47	
	48	 QEZE credit for real property taxes (multiply line 46 by line 47)............................................................ 	 48

.25

Schedule N – QEZE credit for real property taxes
	49	 QEZE credit from line 45 or line 48................................................................................................... 	 49
	 50	 Capital investment amount (from line 65 or 66) .................................................................................... 	 50
	 51	 Enter the greater of line 49 or line 50................................................................................................ 	 51
	 52	 Eligible real property taxes (attach documentation).............................................................................. 	 52
	53a	 Enter the lesser of line 51 or line 52................................................................................................. 	 53a
	53b	 If certified on or after April 1, 2009, multiply line 53a by 75% (.75) and enter the result. If certified
		  prior to April 1, 2009, make no entry............................................................................................. 	 53b	
	 54	 Recapture of QEZE credit for real property taxes (see instructions) ................................................... 	 54
	 55	 QEZE credit for real property taxes after recapture (subtract line 54 from line 53a or 53b; see instructions)	 	 55

Schedule O – Application of QEZE credit for real property taxes (New York S corporations do not complete Schedule O)
	 56	 Enter your franchise tax (see instructions).............................................................................................	
	 57	 Tax credits claimed before the QEZE credit for real property taxes (if applying multiple credits on your
		  franchise tax return, see instructions).................................................................................................. 	
	 58	 Subtract line 57 from line 56	
	
	 59	 Enter appropriate tax:
		 Article 9-A – Enter the fixed dollar minimum tax from Form CT-3 or the designated agent’s
		  fixed dollar minimum tax from Form CT-3-A
		 Article 33 – Enter 250
		 Article 33 combined – Enter the sum of lines 4 and 12 from Form CT-33-A	
	
	 60	 Credit limitation (subtract line 59 from line 58; if less than zero, enter 0)................................................... 	
	 61	 QEZE credit for real property taxes to be used this period (see instructions)...................................... 	
	 62	 Unused QEZE credit for real property taxes (subtract line 61 from line 55)........................................... 	
	 63	 Amount of unused credit on line 62 to be refunded (see instructions)................................................. 	
	 64	 Amount of unused, nonrefunded credit to be credited as an overpayment to next year’s tax
		  (subtract line 63 from line 62; see instructions)..................................................................................... 	

56
57
58

59
60
61
62
63
64

(continued)

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Schedule P – Related entities
List the names and EINs of any related business entities. Attach additional sheets if necessary.
See Related persons on page 1 of the instructions to determine if an entity is related.
	Name	

EIN

Schedule Q – Capital investment amount (complete only Part 1 or Part 2; see instructions)
Part 1 –
­ Capital investment amount for QEZEs certified in DZs
A
Address of property

B
Name of zone
(if applicable)

C
Cost or other basis
attributable to construction,
expansion, or rehabilitation
of property (see instructions)

D
Multiply column C
by 10% (0.1)

E
Percentage of physical
occupancy and use
(see instructions)

F
Multiply column D
by column E

Total from column F of any additional schedules..............................................................................................................
	65	Total (add column F amounts; enter here and on line 50; see instructions)................................................................. 	 65

Part 2 –
­ Capital investment amount for QEZEs certified only in IZs or for manufacturers (see instructions)
A
Address of property

B
Name of zone
(if applicable)

C
Cost or other
basis

(see instructions)

D
Multiply column C
by 10% (0.1)

E
Percentage of physical
occupancy and use
(see instructions)

F
G
Percentage
Multiply column D
of column C
by the greater of
attributable to
column E or column F
construction,
rehabilitation, or
expansion of the
building (if 50% or
more enter 100%)

Total from column G of any additional schedules..............................................................................................................
	66	Total (add column G amounts; enter here and on line 50; see instructions)................................................................ 	 66

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