New York Pass-Through Entity Tax Credit

Pass-Through Entity Tax Credit
Form IT-653 Pass-Through Entity Tax Credit Tax Year 2023
IT-653

Department of Taxation and Finance

Pass-Through Entity Tax Credit
New York State • New York City
Tax Law – Sections 606(kkk) and 1310(g)
Submit this form with Form IT-201, IT-203, or IT-205.
	Name(s) as shown on return	

Identifying number as shown on return

Schedule A – Pass-through entity tax (PTET) and NYC PTET paid on your behalf (see instructions)
A
Name of entity

B
Employer identification number

C
PTET credit amount

D
NYC PTET credit amount

	.00	

.00

	.00	

.00

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.00

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.00

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.00

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.00

	.00	

.00

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.00

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.00

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.00

	.00	.00
	.00	.00
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.00

	.00	

.00

	.00	

.00

	 Total of column C and D amounts from any additional Forms IT-653 .................. 	

.00	

.00

	1	 Add column C amounts..............................................................................	

.00

1	

	2	 Add column D amounts ........................................................................................................................	

2	

.00

	3	 Add lines 1 and 2 (see instructions) ........................................................................................................	

3	

.00

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Page 2 of 2 IT-653 (2023)

Instructions
General information
Pass-through entity tax (PTET)

For tax years beginning on or after January 1, 2021, a partner,
member, or shareholder of a partnership or S corporation that
elected to be subject to the PTET under Article 24-A, may be
eligible for a PTET credit.

NYC Pass-through entity tax (NYC PTET)

For tax years beginning on or after January 1, 2022, a partner,
member, or shareholder of a city partnership or city resident
S corporation that elected to be subject to the NYC PTET under
Article 24-B, may be eligible for a NYC PTET credit.

Eligibility
PTET

To be eligible for this credit, you must meet all of the following
requirements:
•	 you are subject to tax under Tax Law Article 22;
•	 you are a direct partner or member in a partnership or a direct
shareholder or member of an S corporation that has:
–	 elected to be taxed under Tax Law Article 24-A; and
–	 paid the PTET due;
•	 you have received documentation from the eligible, electing
entity that provides your specific PTET amount.

NYC PTET

To be eligible for this credit, you must meet all of the following
requirements:
•	 you are subject to tax under Tax Law Article 30;
•	 you are a direct partner or member in a city partnership or a
shareholder or member of a city resident S corporation that
has:
–	 elected to be taxed under Tax Law Article 24-B; and
–	 paid the NYC PTET due;
•	 you have received documentation from the eligible, electing
entity that provides your specific NYC PTET amount.
Generally, you are required to add back to adjusted gross
income an amount equal to the PTET and NYC PTET credits
claimed. For more information, see Form IT-225-I, Instructions
for Form IT-225.

Credit details
PTET

The PTET credit is equal to the partner’s, member’s, or
shareholder’s direct share of pass-through entity tax. This
amount should have been computed by the partnership or
S corporation and reported to you.
If you are a partner, member, or shareholder in multiple electing
partnerships or electing S corporations subject to PTET, your
credit will be the sum of the credits calculated for each entity in
which you have a direct ownership interest.

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No credit will be allowed unless the electing partnership or
electing S corporation paid the PTET imposed under Article 24-A
and provided sufficient information to identify you on its PTET
return.

NYC PTET

The NYC PTET credit is equal to the partner’s, member’s, or
shareholder’s direct share of NYC pass-through entity tax. This
amount should have been computed by the city partnership or
city resident S corporation and reported to you.
If you are a partner, member, or shareholder in multiple electing
city partnerships or city resident S corporations subject to NYC
PTET, your credit will be the sum of the credits calculated for
each entity in which you have a direct ownership interest.
No credit will be allowed unless the electing city partnership or
electing city resident S corporation paid the NYC PTET imposed
under Article 24-B and provided sufficient information to identify
you on its NYC PTET return.
Note: Any unused amount of the PTET or NYC PTET credits for
the current tax year will be treated as a refund or overpayment of
tax to be credited to the next year’s tax. Interest will not be paid
on the refund or overpayment.

Line instructions
Schedule A – Pass-through entity tax (PTET) and NYC
PTET paid on your behalf
In columns A through C, enter the information for each entity
that paid a PTET on your behalf and in which you held direct
ownership.

If an entity that you held direct ownership in also paid a NYC
PTET on your behalf, enter that amount in column D.
Additional forms – If you have more entries than will fit on the
lines provided in Schedule A, submit additional Forms IT-653.
Include your name and taxpayer identification number on
each form, and include the totals of columns C and D from
all additional Forms IT-653 on the indicated lines. Place the
additional forms behind the first Form IT-653 and submit them
with your return.
Line 3 – Enter the amount and code 653 on:
•	 Form IT-201-ATT, line 12; or
•	 Form IT-203-ATT, line 12.
For Form IT-205, include the amount on line 33.