N.Y. Tax Law § 1310 – Credits against tax

(a) Credit to trust beneficiary receiving accumulation distribution. A beneficiary of a trust who is subject to a city personal income tax imposed pursuant to the authority of this article and whose New York adjusted gross income under article twenty-two of this chapter includes all or part of an accumulation distribution by such trust, as defined in section six hundred sixty-five of the internal revenue code, shall be allowed a credit against the tax otherwise due under such city personal income tax for all or a proportionate part of any tax paid by the trust under such tax or under any prior local law of the city for any preceding taxable year which would not have been payable if the trust had in fact made distributions to its beneficiaries at the times and in the amounts specified in section six hundred sixty-six of the internal revenue code. The credit under this subsection shall not reduce the tax otherwise due from the beneficiary under such city personal income tax to an amount less than would have been due if the accumulation distribution or his part thereof were excluded from his New York adjusted gross income as defined in section six hundred twelve of this chapter.
(b) Credit for tax withheld. Wages upon which tax is required to be withheld shall be taxable under a city personal income tax as if no withholding were required, but any amount of tax actually deducted and withheld under such tax in any calendar year shall be deemed to have been paid to the state tax commission on behalf of the person from whom withheld, and such person shall be credited with having paid that amount of tax for the taxable year beginning in such calendar year. For a taxable year of less than twelve months, the credit shall be made under regulations of the state tax commission.
(c) Credit relating to net capital gain. For taxable years beginning in nineteen hundred eighty-seven, a credit against the city personal income tax determined in accordance with section thirteen hundred four shall be allowed. The amount of the credit shall be one-half of one percent of net capital gain includible in city adjusted gross income for the taxable year. The credit allowed by this section shall not exceed the tax determined in accordance with section thirteen hundred four, reduced by the credits permitted under subsections (a) and (d) of this section.
(d) Household credit. (1) For taxable years beginning after nineteen hundred eighty-six, a credit against the city personal income tax determined in accordance with section thirteen hundred four shall be allowed. The credit, computed as described in paragraph two of this subsection, shall not exceed the tax determined in accordance with section thirteen hundred four reduced by the credit permitted under subsection (a) of this section.
(2)
1. (A) For any individual who is not married nor the head of a household nor a surviving spouse, the amount of the credit shall be determined in accordance with the following table: If household gross The credit shall be: income is: For taxable years For taxable years beginning after 1986 beginning after and before 1996 1995 Not over $7,500 $15 $15 Over $7,500 but not over $10,000 $10 $15 Over $10,000 but not over $12,500 $ 0 $10
2. (B) For any husband and wife, head of household or surviving spouse, the amount of the credit shall be determined by multiplying 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 by the credit factor for the taxable year as specified in the following table: If household gross The credit factor is: income is: For taxable years beginning in For taxable years 1987 1988 1989 through 1995 beginning after 1995 Not over $12,500 $30 $50 $50 $30 Over $12,500 but not over $15,000 $20 $40 $50 $30 Over $15,000 but not over $17,500 $10 $20 $25 $25 Over $17,500 but not over $20,000 $ 0 $15 $15 $15 Over $20,000 but not over $22,500 $ 0 $ 0 $ 0 $10
(3) For purposes of this subsection:
1. (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.
2. (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.
3. (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 city income tax returns are filed. Provided, however, that a husband or wife who is required to file a separate city 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.
4. (D) "Household gross income" shall be computed in all cases as if each member of the household were a resident for the entire taxable year.
5. (E) If a taxpayer changes his status during his taxable year from resident to nonresident, or from nonresident to resident, the household credit shall be prorated according to the number of months in the period of residence. In the case of a husband and wife, if either or both changes his or her status from resident to nonresident or from nonresident to resident and separate returns are filed, the credit computed for the entire year shall be divided first as provided in subparagraph (C) of this paragraph and then prorated according to the number of months in the period of residence. * (e) State school tax reduction credit. (1) For taxable years beginning after nineteen hundred ninety-seven, and ending before two thousand sixteen, a state school tax reduction credit shall be allowed as provided in the following tables. The credit shall be allowed against the taxes authorized by this article 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. For purposes of this subsection, no credit shall be granted 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.
6. (2) The amount of the credit under this paragraph shall be determined based upon the taxpayer's income as defined in subparagraph (ii) of paragraph (b) of subdivision four of section four hundred twenty-five of the real property tax law. For the purposes of this paragraph, any taxpayer under subparagraphs (A) and (B) of this paragraph with income of more than two hundred fifty thousand dollars shall not receive a credit. Beginning in the two thousand ten tax year and each tax year thereafter through two thousand fifteen, the "more than two hundred fifty thousand dollar" income limitation shall be adjusted by applying the inflation factor set forth herein, and rounding each result to the nearest multiple of one hundred dollars. The department shall establish the income limitation to be associated with each subsequent tax year by applying the inflation factor set forth herein to the figures that define the income limitation that were applicable to the preceding tax year, as determined pursuant to this subsection, and rounding each result to the nearest multiple of one hundred dollars. Such determination shall be made no later than March first, two thousand ten and each year thereafter.
  1. (A) Married individuals filing joint returns and surviving spouses. In the case of a husband and wife who make a single return jointly and of a surviving spouse: For taxable years beginning: The credit shall be: in 2001-2005 $125 in 2006 $230 in 2007-2008 $290 in 2009 - 2015 $125
  2. (B) All others. In the case of an unmarried individual, a head of a household or a married individual filing a separate return: For taxable years beginning: The credit shall be: in 2001-2005 $62.50 in 2006 $115 in 2007-2008 $145 in 2009 - 2015 $62.50
(4) Husband and wife who make a joint return. If a husband and wife make a single return jointly, the credit under this subsection shall be determined under paragraph two of this subsection, if either of them has attained the age of sixty-five on or before the close of the taxable year.
(5) Part-year residents. If a taxpayer changes status during the taxable year from resident to nonresident, or from nonresident to resident, the state school tax reduction credit shall be prorated according to the number of months in the period of residence. * NB There are 2 sub§ (e)'s * (e) Credit for city of New York unincorporated business tax paid.
(1) Notwithstanding any other provision of law to the contrary, any city imposing a tax under this article is hereby authorized and empowered to adopt and amend local laws for any taxable year beginning after nineteen hundred ninety-seven, as specified in such local laws, providing for a credit as provided in paragraph two of this subsection against the taxes imposed pursuant to the authority granted by section thirteen hundred one of this article on the city taxable income determined pursuant to sections thirteen hundred four, thirteen hundred four-A and thirteen hundred four-B of this article and on the ordinary income portion of a lump sum distribution determined pursuant to section thirteen hundred one-B of this article, to any city resident individual, estate or trust whose city adjusted gross income includes income, gain, loss or deductions from one or more unincorporated businesses conducted by such city resident individual, estate or trust on which a tax is imposed by chapter five of title eleven of the administrative code of the city of New York, or a distributive share of income, gain, loss and deductions of, or guaranteed payments from, one or more partnerships on which a tax is imposed by such chapter. Any such local laws may contain provisions to ensure that such credit shall not reduce the tax paid by a city resident below that which would be paid by such city resident if such city resident were a city nonresident.
(2)
1. (A) Subject to the limitation set forth in subparagraph (B) of this paragraph, the credit allowed to a taxpayer for a taxable year shall be equal to all or a portion of the amount determined in paragraph three of this subsection, provided, however, such portion shall not be less than:
2. (i) If the city taxable income is forty-two thousand dollars or less, sixty-five percent of the amount determined in paragraph three of this subsection.
3. (ii) If the city taxable income is greater than forty-two thousand dollars but not greater than one hundred forty-two thousand dollars, a percentage of the amount determined in paragraph three of this subsection to be determined by subtracting from sixty-five percent, one tenth of a percentage point (.001) for every increment of two hundred dollars, or fractional part thereof, of city taxable income in excess of forty-two thousand dollars.
4. (iii) If the city taxable income is greater than one hundred forty-two thousand dollars, fifteen percent of the amount determined in paragraph three of this subsection.
5. (B) Notwithstanding anything to the contrary in subparagraph (A) of this paragraph, the credit allowed to a taxpayer for a taxable year under this subsection shall not exceed the sum of the taxes that would otherwise be imposed on such taxpayer for such taxable year pursuant to the authority granted by section thirteen hundred one of this article on the city taxable income determined pursuant to sections thirteen hundred four, thirteen hundred four-A and thirteen hundred four-B of this article and on the ordinary income portion of a lump sum distribution determined pursuant to section thirteen hundred one-B of this article, reduced by the credits allowed to such taxpayer pursuant to subsections (a), (c) and (d) of this section.
(3) Subject to the provisions of subparagraph (C) of this paragraph, the amount determined in this paragraph is the sum of:
1. (A) for each unincorporated business conducted by the taxpayer, the tax imposed by chapter five of title eleven of the administrative code of the city of New York on such unincorporated business for its taxable year ending with the taxable year of the taxpayer and paid by the unincorporated business; and
2. (B) for each unincorporated business in which the taxpayer is a partner, the product of:
3. (i) the sum of (I) the tax imposed by chapter five of title eleven of the administrative code of the city of New York on such unincorporated business for its taxable year ending within or with the taxable year of the partner and paid by the unincorporated business and (II) the amount of any credit or credits taken by the unincorporated business under subdivision (j) of section 11-503 of the administrative code of the city of New York for its taxable year ending within or with the taxable year of the partner; and
4. (ii) a fraction, the numerator of which is the net total of the partner's distributive share of income, gain, loss and deductions of, and guaranteed payments from, the unincorporated business for such taxable year, and the denominator of which is the sum, for such taxable year, of the net total distributive shares of income, gain, loss and deductions of, and guaranteed payments to, all partners in the unincorporated business for whom or which such net total (as separately determined for each partner) is greater than zero.
5. (C) For a taxpayer that changes its status from a city resident to a city nonresident or from a city nonresident to a city resident during the taxable year:
6. (i) the amount determined in subparagraph (A) of this paragraph shall be, with respect to each unincorporated business conducted by the taxpayer, the tax imposed by chapter five of title eleven of the administrative code of the city of New York on such unincorporated business for its taxable year ending with the taxable year of the taxpayer and paid by the unincorporated business, multiplied by a fraction, the numerator of which is that portion of the income, gain, loss and deductions of the unincorporated business included in the taxpayer's city adjusted gross income for the portion of the taxable year during which the taxpayer was a city resident, and the denominator of which is the total, for such taxable year, of the income, gain, loss and deductions of the unincorporated business, and
7. (ii) the amount determined in clause (ii) of subparagraph (B) of this paragraph shall be a fraction, the numerator of which is that portion of the taxpayer's net total distributive share of income, gain, loss and deductions of, and that portion of guaranteed payments from, the unincorporated business included in the taxpayer's city adjusted gross income for the portion of the taxable year during which the taxpayer was a city resident, and the denominator of which is the sum, for such taxable year, of the net total distributive shares of income, gain, loss and deductions of, and guaranteed payments to, all partners in the unincorporated business, for whom or which such net total (as separately determined for each partner) is greater than zero.
(4) No local law enacted pursuant to the authority of this subsection shall be effective unless a certified copy of such local law is mailed by registered mail to the state department of taxation and finance at its office in Albany at least fifteen days prior to the date it is to become effective. However, the state department of taxation and finance may waive and reduce such fifteen-day minimum notice requirement to a mailing of such certified copy by registered mail within such period if it deems such action to be consistent with its duties under this article. * NB There are 2 sub§ (e)'s
(f) Earned income tax credit. (1) Notwithstanding any other provision of law to the contrary, any city having a population of one million or more, acting through its local legislative body, is hereby authorized and empowered to adopt and amend local laws granting in any such city, for taxable years beginning after two thousand three, a credit against the city personal income tax equal to five percent of the earned income credit allowed under section thirty-two of the internal revenue code for the same taxable year, and, for taxable years beginning after two thousand twenty-one, a credit against the city personal income tax equal to a percentage, determined pursuant to subparagraphs (A) through (I) of this paragraph, of the earned income credit allowed under section thirty-two of the internal revenue code for the same taxable year. For purposes of this paragraph, "adjusted gross income" means New York adjusted gross income as determined pursuant to article twenty-two of this chapter. The percentage shall be:
1. (A) thirty percent, where the taxpayer's adjusted gross income for such taxable year is less than $5,000;
2. (B) thirty percent reduced by the product of two-tenths of a percentage point (0.002) and the amount of the taxpayer's adjusted gross income for such taxable year in excess of $4,999, where such taxpayer's adjusted gross income for such taxable year is equal to or greater than $5,000 and less than $7,500;
3. (C) twenty-five percent, where the taxpayer's adjusted gross income for such taxable year is equal to or greater than $7,500 and less than $15,000;
4. (D) twenty-five percent reduced by the product of two-tenths of a percentage point (0.002) and the amount of the taxpayer's adjusted gross income for such taxable year in excess of $14,999, where such taxpayer's adjusted gross income for such taxable year is equal to or greater than $15,000 and less than $17,500;
5. (E) twenty percent, where the taxpayer's adjusted gross income for such taxable year is equal to or greater than $17,500 and less than $20,000;
6. (F) twenty percent reduced by the product of two-tenths of a percentage point (0.002) and the amount of the taxpayer's adjusted gross income for such taxable year in excess of $19,999, where such taxpayer's adjusted gross income for such taxable year is equal to or greater than $20,000 and less than $22,500;
7. (G) fifteen percent, where the taxpayer's adjusted gross income for such taxable year is equal to or greater than $22,500 and less than $40,000;
8. (H) fifteen percent reduced by the product of two-tenths of a percentage point (0.002) and the amount of the taxpayer's adjusted gross income for such taxable year in excess of $39,999, where such taxpayer's adjusted gross income for such taxable year is equal to or greater than $40,000 and less than $42,500; and
9. (I) ten percent where the taxpayer's adjusted gross income for such taxable year is equal to or greater than $42,500.
10. (2) In the case of a resident taxpayer, the credit provided by local law adopted pursuant to this subsection shall be allowed against the taxes authorized 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.
11. (3) If a taxpayer changes his or her status during the taxable year from city resident to city nonresident, or from city nonresident to city resident, the credit determined under this subsection shall be limited to the amount determined by multiplying the amount of such credit by a fraction, the numerator of which is such taxpayer's city adjusted gross income, as defined in chapter seventeen of title eleven of the administrative code of the city of New York, for the period of residence, and the denominator of which is such taxpayer's city adjusted gross income determined as if he or she were a city resident for the entire taxable year. City adjusted gross income shall be adjusted as provided in section 11-1754 of the administrative code of the city of New York. The credit as so limited shall be applied as provided in paragraph two of this subsection.
12. (4) Subject to the provisions of paragraph three of this subsection, in the case of a husband and wife who file a joint return, but who are required to determine their city personal income taxes separately, the credit authorized pursuant to this subsection may be applied against the tax of either or divided between them as they may elect. 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 city personal income tax return.
13. (5) A local law enacted pursuant to this subsection shall be applicable with respect to any taxable year only if it has been enacted on or before the date that is forty-five days after the effective date of this subsection and for taxable years subsequent to taxable year two thousand four, on or before July thirty-first of such taxable year. A certified copy of such local law shall be mailed by registered mail to the state department of taxation and finance at its office in Albany within fifteen days of its enactment. However, the state department of taxation and finance may allow additional time for such certified copy to be mailed if it deems such action to be consistent with its duties under this article.
14. (6) If the department determines that the taxpayer is eligible to receive the credit provided under this subsection but has not claimed such credit on his or her return, the department shall compute and issue any refund for the allowable credit amount provided under this subsection. 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 chapter, provided, however, that no interest shall be paid thereon.
(g) Credit for city pass-through entity tax. (1) A taxpayer who is a partner or member of an electing city partnership and a taxpayer shareholder of an electing city resident S corporation subject to tax under article twenty-four-B of this chapter shall be entitled to a credit against the tax imposed pursuant to the authority of this article as provided in this subsection. For purposes of this subsection, the terms "electing city partnership," "electing city resident S corporation," "city pass-through entity tax," and "direct share of city pass-through entity tax" shall have the same meanings provided in article twenty-four-B of this chapter.
(2) The amount of the credit shall be equal to the partner's, member's or shareholder's direct share of the city pass-through entity tax.
(3) If a taxpayer is a partner, member or shareholder in more than one electing city partnership and/or electing city resident S corporation that is subject to tax pursuant to article twenty-four-B of this chapter, the amount of the credit of such taxpayer shall be equal to the sum of the amounts of such credits calculated pursuant to paragraph two of this subsection with regard to each entity in which such taxpayer has a direct ownership interest.
(4) If the amount of the credit allowable pursuant to this subsection for any taxable year exceeds the tax due for such year pursuant to this article, the excess amount shall be treated as an overpayment, to be credited or refunded, without interest.
(5) Limitation on credit. No credit shall be allowed to a taxpayer under this subsection unless the electing city partnership or electing city resident S corporation provided sufficient information to identify such taxpayer on its city pass-through entity tax return as required under paragraph two of subsection (c) of section eight hundred seventy-two of this chapter for an electing city partnership or paragraph two of subsection (d) of section eight hundred seventy-two of this chapter for an electing city resident S corporation. The credit allowed to a taxpayer under this subsection shall not exceed the direct share of city pass-through entity tax reported by such electing city partnership or electing city resident S corporation attributable to such taxpayer on such electing city partnership or electing city resident S corporation's return filed pursuant to section eight hundred seventy-two of this chapter.