Section 1456. Credits

(a)  Credit for servicing certain mortgages. Every
  bank, as defined in section two thousand four hundred two of the  public
  authorities law, which shall have entered into a contract with the state
  of New York mortgage agency to service mortgages acquired by such agency
  pursuant  to  the  state  of  New  York  mortgage agency act, shall have
  credited to it annually to apply upon or in lieu of the payment  of  any
  tax to which it may be subject under this article an amount equal to two
  and  ninety-three  one  hundredths  percentum of the total principal and
  interest collected by the bank during its  taxable  year  on  each  such
  mortgage  secured  by  a lien on real estate improved by a one-family to
  four-family residential structure and an amount equal  to  the  interest
  collected  by  the  bank  during  its taxable year on each such mortgage
  secured by a lien on real property improved by a structure  occupied  as
  the  residence  of  five  or  more families living independently of each
  other, multiplied by a fraction the denominator of which  shall  be  the
  interest  rate payable on the mortgage (computed to five decimal places)
  and the numerator of which shall  be  .00125  in  the  case  of  such  a
  mortgage  acquired by such agency for less than one million dollars, and
  .00100 in the case of such a mortgage acquired by such  agency  for  one
  million  dollars or more; provided, however, that there shall in no case
  be credited to any such bank an amount in excess of the amount due  from
  such  bank  for  taxes  payable  to the state under this article for the
  taxable year for which such credit  is  given.  In  computing  such  tax
  credit  for  the  servicing  of  mortgages  on one-family to four-family
  residential structures, the bank shall be entitled to no credit for  the
  collection  of  curtailments  or  payments  in  discharge  of  any  such
  mortgage. For the purposes of this section, (a)  a  "curtailment"  shall
  mean  amounts  paid  by mortgagors (1) in excess of the monthly constant
  due during the month of collection and (2) in reduction  of  the  unpaid
  principal  balance  of the mortgage; in the absence of clear evidence to
  the contrary, amounts paid in excess of the monthly constant due  during
  the month of collection shall be deemed to be in reduction of the unpaid
  principal balance of the mortgage; and (b) "monthly constant" shall mean
  the  amount of principal and interest which is due and payable according
  to the mortgage documents on each periodic payment date.
    (b) Eligible business facility credit.
    (1) On or  after  April  first,  nineteen  hundred  eighty-three,  for
  taxable  years  beginning  before  January first, two thousand, a credit
  against the tax imposed by this article  shall  be  allowed  only  to  a
  taxpayer  owning  or operating an eligible business facility, where such
  taxpayer has received a certificate of eligibility for tax credits, or a
  renewal or extension thereof, for such facility from the New York  state
  job incentive board prior to April first, nineteen hundred eighty-three,
  or  has  received  a  certificate  of  eligibility for tax credits, or a
  renewal or extension thereof, for  such  facility  from  the  state  tax
  commission  subsequent  to such date pursuant to paragraph eight of this
  subsection, and only with respect to such facility, to  be  computed  as
  hereinafter provided.
    (2)  The  amount  of the credit allowable in any taxable year shall be
  the sum determined by multiplying the tax otherwise due by a  percentage
  to be determined by:
    (A)  ascertaining  the percentage which the total of eligible property
  values during the period covered by its return, as defined in  paragraph
  four  of  this  subsection,  bears  to  the  average  value  of  all the
  taxpayer's real and tangible  personal  property  except  for  inventory
  within   the  state  during  such  period.  For  the  purposes  of  this
  subparagraph only, the taxpayer's real and  tangible  personal  property
  shall  include  not  only  such  property owned by the taxpayer but also

  property rented to it, and the value of rented property shall be  deemed
  to be eight times the net annual rental rate, that is, the annual rental
  rate  paid  by  the taxpayer less any annual rental rate received by the
  taxpayer from subrentals;
    (B)  ascertaining  the  percentage which the total wages, salaries and
  other personal service compensation during such  period,  of  employees,
  except  general executive officers and that portion of employee's wages,
  salaries and other personal service compensation attributable,  directly
  or  indirectly,  to the production of adjusted eligible net income which
  is allowed as a deduction  from  entire  net  income  as  set  forth  in
  subsection  (f) of section fourteen hundred fifty-three of this article,
  serving in jobs created or retained in an eligible  area  (as  the  term
  "eligible  area"  was  defined  by  section  one  hundred fifteen of the
  commerce law as it  existed  on  March  thirty-first,  nineteen  hundred
  eighty-three)  by  such  business  facility,  bears  to the total wages,
  salaries and other personal service compensation, during such period, of
  all the taxpayer's employees within the state, except general  executive
  officers; and
    (C)  adding  together  the  percentages so determined and dividing the
  result by two; provided, however, that if no wages,  salaries  or  other
  personal  service  compensation  were  paid  or incurred by the taxpayer
  during such period to employees within  the  state  other  than  general
  executive   officers,  subparagraph  (B)  of  this  paragraph  shall  be
  disregarded and the amount of credit allowable shall  be  determined  by
  multiplying  the  tax  otherwise  due  by  the  percentage  specified in
  subparagraph (A) of this paragraph.
    (3) In no event shall the credit herein provided for be allowed in any
  amount which will reduce the tax payable to less than the dollar  amount
  fixed  as  a  minimum  tax by subsection (b) of section fourteen hundred
  fifty-five.
    (4) (A) Eligible property values, for the purposes of this subsection,
  shall include such part of the value of depreciable  real  and  tangible
  personal   property   included  in  an  eligible  business  facility  as
  represents:
    (i)  expenditures  paid  or  incurred  by  the  taxpayer  for  capital
  improvements consisting of the construction, reconstruction, erection or
  improvement  of  real  property  included in an eligible facility, which
  construction, reconstruction, erection or improvements were commenced on
  or after July first, nineteen hundred sixty-eight;
    (ii) in the case of real property leased by the taxpayer from  another
  party,   eight   times  the  portion  of  the  net  annual  rental  rate
  attributable  to  such   construction,   reconstruction,   erection   or
  improvement   commenced   on  or  after  July  first,  nineteen  hundred
  sixty-eight;
    (iii) expenditures paid or incurred by the taxpayer for  the  purchase
  of  tangible  personal  property,  other  than  vehicles, included in an
  eligible business facility, provided such property was purchased  on  or
  after July first, nineteen hundred sixty-eight; and
    (iv)  in  the case of tangible personal property, other than vehicles,
  leased by the taxpayer from another party and included  in  an  eligible
  business  facility, eight times the net annual rental rate, provided the
  period for which such property was leased by the taxpayer  began  on  or
  after July first, nineteen hundred sixty-eight.
    (B)  Provided,  however, eligible property values for purposes of this
  subdivision shall not include expenditures paid or  incurred  more  than
  one  year  prior  to  the  filing of an application for a certificate of
  eligibility pursuant to section one hundred  nineteen  of  the  commerce

  law,  as  such  section  existed on March thirty-first, nineteen hundred
  eighty-three.
    (C)  Provided  further that, for purposes of this subsection, eligible
  property values shall not include that portion of the value of  property
  which is used in the production of adjusted eligible net income which is
  allowed as a deduction from entire net income as set forth in subsection
  (f) of section fourteen hundred fifty-three of this article.
    (5)  The  total  of all credits allowed pursuant to this subsection in
  any taxable year or  years  with  reference  to  any  eligible  business
  facility shall not exceed the total eligible property values included.
    (6)  If a credit is allowed for any taxable year as herein provided on
  the basis of a certificate of eligibility, and if  such  certificate  is
  revoked  or  modified,  the  taxpayer  shall  report  such revocation or
  modification in its return for the taxable year during which it  occurs,
  and  the  tax  commission shall recompute such credit and may assess any
  additional tax resulting from such recomputation within the  time  fixed
  by  paragraph nine of subsection (c) of section ten hundred eighty-three
  of this chapter.
    (7) If a business facility owned or operated by a taxpayer shall be an
  eligible business facility for only part of a taxable year,  the  credit
  allowed  by  this  subdivision shall be prorated according to the period
  such facility was an eligible business facility, and if the total of the
  eligible property values shall have changed during any taxable  year,  a
  pro-rata adjustment shall be made in computing such credit.
    (8)  The  state  tax  commission shall be empowered, on or after April
  first,  nineteen  hundred  eighty-three,  to  issue  a  certificate   of
  eligibility  for  tax  credits  to  a  taxpayer for an eligible business
  facility with regard to which such taxpayer has, prior  to  July  first,
  nineteen  hundred  eighty-three,  received  from  the New York state job
  incentive board initial approval of an application for such  certificate
  by such board as evidenced by the minutes of the meeting of the board at
  which such application was approved, or a letter of intent authorized by
  section  102.4 of part one hundred two of title five of the codes, rules
  and regulations of the state of New York regarding such  certificate  of
  eligibility  and  to  renew,  extend,  revoke or modify a certificate of
  eligibility for tax credits, pursuant to section one hundred  twenty  of
  the commerce law as such section existed on March thirty-first, nineteen
  hundred eighty-three.
    (9)  For  purposes  of  the requirement for eligibility for the credit
  allowed under this subdivision that a business facility create or retain
  not less than five jobs as provided in subdivision (c)  of  section  one
  hundred  eighteen  of  the commerce law as such section existed on March
  thirty-first, nineteen hundred eighty-three, a business  facility  shall
  have  (i) created not less than five jobs only if the number of jobs for
  the taxable year  exceeds  the  number  of  jobs  at  the  time  of  the
  commencement  of  the  project  as stated on its application for initial
  approval by five or more; or (ii) retained not less than five jobs  only
  if  initial approval was based on the retention of five or more jobs and
  (A) the number of jobs for the taxable year is at  least  equal  to  the
  number  of jobs at the time of the commencement of the project as stated
  on its application for initial approval or (B)  where  initial  approval
  was  based on the retention of fewer jobs than the number of jobs at the
  time of the commencement of the project as stated on its application for
  initial approval, the number of jobs for the taxable year  is  at  least
  equal  to  the  number  approved  for  retention.  For  purposes of this
  paragraph, the phrase "initial approval was based on  the  retention  of
  five  or  more  jobs" shall mean that such initial approval was given by
  the job incentive board to an applicant  that  had  not  stated  in  its

  application  for  initial  approval that it would increase the number of
  jobs at its facility by at least five.
    (c)  Mortgage  recording tax credit. (1) A taxpayer shall be allowed a
  credit, to be credited against the tax  imposed  by  this  article.  The
  amount  of  the  credit  shall  be  the amount of the special additional
  mortgage recording tax paid by the taxpayer pursuant to  the  provisions
  of  subdivision one-a of section two hundred fifty-three of this chapter
  on mortgages recorded on  and  after  January  first,  nineteen  hundred
  seventy-nine. Provided, however, no credit shall be allowed with respect
  to a mortgage of real property principally improved or to be improved by
  one  or  more  structures  containing in the aggregate not more than six
  residential dwelling units, each dwelling unit having its  own  separate
  cooking facilities, where the real property is located in one or more of
  the   counties   comprising  the  metropolitan  commuter  transportation
  district and where the mortgage is  recorded  on  or  after  May  first,
  nineteen  hundred  eighty-seven.  Provided,  however, no credit shall be
  allowed with respect to a mortgage of real property principally improved
  or to be improved by one or more structures containing in the  aggregate
  not  more than six residential dwelling units, each dwelling unit having
  its own separate cooking facilities, where the real property is  located
  in the county of Erie and where the mortgage is recorded on or after May
  first, nineteen hundred eighty-seven.
    (2)  In  no event shall the credit herein provided for, and carryovers
  of such credit, in the aggregate, be allowed in  an  amount  which  will
  reduce the tax payable to less than the dollar amount fixed as a minimum
  tax  by  subsection (b) of section fourteen hundred fifty-five. However,
  if the amount of credit or carryovers of such credit, or both, allowable
  under this subdivision for any taxable year  reduces  the  tax  to  such
  amount,  any  amount  of  credit  or  carryovers of such credit thus not
  deductible in such taxable year may be carried  over  to  the  following
  year  or years and may be deducted from the taxpayer's tax for such year
  or years.
    (d) Empire zone capital credit.
    (1) A taxpayer shall be allowed a credit against the  tax  imposed  by
  this  article.  The  amount  of the credit shall be equal to twenty-five
  percent of the sum of the following investments and  contributions  made
  during  the  taxable  year and certified by the commissioner of economic
  development: (A) for taxable years beginning before January  first,  two
  thousand  five,  qualified  investments made in, or contributions in the
  form of donations made to, one or more empire zone capital  corporations
  established  pursuant  to section nine hundred sixty-four of the general
  municipal law prior to January first, two thousand five,  (B)  qualified
  investments  in  certified zone businesses which during the twelve month
  period immediately preceding the month in which such investment is  made
  employed  full-time  within  the state an average number of individuals,
  excluding general executive officers, of two  hundred  fifty  or  fewer,
  computed pursuant to the provisions of subparagraph (C) of paragraph two
  of  subsection (e) of this section, except for investments made by or on
  behalf of an owner of the business, including, but  not  limited  to,  a
  stockholder,  partner  or  sole  proprietor,  or  any related person, as
  defined in subparagraph (C) of paragraph  three  of  subsection  (b)  of
  section  four  hundred  sixty-five of the internal revenue code, and (C)
  contributions of money to community development projects as  defined  in
  regulations  promulgated  by  the  commissioner of economic development.
  "Qualified  investments"  means  the  contribution  of  property  to   a
  corporation  in  exchange  for  original  issue  capital  stock or other
  ownership interest, the contribution of property  to  a  partnership  in
  exchange  for  an interest in the partnership, and similar contributions

  in the case of a business entity not in corporate or partnership form in
  exchange for an ownership interest in such entity. The total  amount  of
  credit allowable to a taxpayer under this provision for all years, taken
  in  the  aggregate, shall not exceed three hundred thousand dollars, and
  shall not exceed one  hundred  thousand  dollars  with  respect  to  the
  investments  and  contributions  described in each of subparagraphs (A),
  (B) and (C) of this paragraph.
    (2) The credit  and  carryover  of  such  credit  allowed  under  this
  subsection  for any taxable year shall not, in the aggregate, reduce the
  tax due for such year to less than the minimum tax fixed  by  subsection
  (b)  of section fourteen hundred fifty-five of this article. However, if
  the amount of credit or carryovers of  such  credit,  or  both,  allowed
  under  this  subsection  for  any  taxable  year reduces the tax to such
  amount, or if any part of the credit or carryovers of  such  credit  may
  not  be  deducted  from  the  tax  otherwise  due by reason of the final
  sentence of this paragraph, any amount of credit or carryovers  of  such
  credit  thus  not deductible in such taxable year may be carried over to
  the following year or years and may be deducted from the  tax  for  such
  year or years. In addition, the amount of such credit, and carryovers of
  such credit to the taxable year, deducted from the tax otherwise due may
  not,  in  the  aggregate,  exceed fifty percent of the tax imposed under
  section fourteen hundred  fifty-five  computed  without  regard  to  any
  credit provided for under this article.
    (2-a)  Any carry over of a credit from prior taxable years will not be
  allowed to an empire zone enterprise which is the basis of  the  credit,
  if  an  empire  zone  retention certificate is not issued to such entity
  pursuant to subdivision (w) of section nine hundred  fifty-nine  of  the
  general municipal law.
    (3)  Where the stock, partnership interest or other ownership interest
  arising from a qualified investment as described  in  subparagraphs  (A)
  and  (B)  of  paragraph  one  of  this  subsection  is  disposed of, the
  taxpayer's entire net income shall be computed, pursuant to  regulations
  promulgated  by  the commissioner, so as to properly reflect the reduced
  cost thereof arising from the application of  the  credit  provided  for
  herein.
    (4)(A)  Where  a  taxpayer  sells,  transfers or otherwise disposes of
  corporate stock, a partnership  interest  or  other  ownership  interest
  arising  from  the making of a qualified investment which was the basis,
  in whole or in part, for the allowance of the credit provided for  under
  this  subsection,  or  where  a contribution or investment which was the
  basis for such allowance  is  in  any  manner,  in  whole  or  in  part,
  recovered  by  such  taxpayer,  and  such disposition or recovery occurs
  during the taxable year or within thirty-six months from  the  close  of
  the  taxable  year  with  respect  to  which  such  credit  is  allowed,
  subparagraph (B) of this paragraph shall apply.
    (B) The taxpayer shall add back with respect to the  taxable  year  in
  which the disposition or recovery described in subparagraph (A) occurred
  the required portion of the credit originally allowed.
    (C) The required portion of the credit originally allowed shall be the
  product  of  (i) the portion of such credit attributable to the property
  disposed of or the  payment  or  contribution  recovered  and  (ii)  the
  applicable percentage.
    (D) The applicable percentage shall be:
    (i)  one hundred percent, if the disposition or recovery occurs within
  the taxable year with respect to which the credit is allowed  or  within
  twelve months of the end of such taxable year,

    (ii)  sixty-seven  percent, if the disposition or recovery occurs more
  than twelve but not more than twenty-four months after the  end  of  the
  taxable year with respect to which the credit is allowed, or
    (iii) thirty-three percent, if the disposition or recovery occurs more
  than  twenty-four  but  not more than thirty-six months after the end of
  the taxable year with respect to which the credit is allowed.
    (e) Empire zone wage tax credit. (1) A taxpayer  shall  be  allowed  a
  credit,  to be computed as hereinafter provided, against the tax imposed
  by this article where  the  taxpayer  has  been  certified  pursuant  to
  article  eighteen-B  of  the  general  municipal law. The amount of such
  credit shall be as prescribed in paragraph four hereof.
    (2) For purposes of this subsection, the following  terms  shall  have
  the  following meanings: (A) "Empire zone wages" means wages paid by the
  taxpayer for full-time  employment,  other  than  to  general  executive
  officers,  during  the  taxable year in an area designated or previously
  designated as an empire zone or zone equivalent area pursuant to article
  eighteen-B of the general municipal law where such employment  is  in  a
  job  created  in the area (i) during the period of its designation as an
  empire  zone,  (ii)  within  four  years  of  the  expiration  of   such
  designation,  or  (iii) during the ten year period immediately following
  the date of designation as a zone equivalent  area,  provided,  however,
  that  if  the  taxpayer's  certification under article eighteen-B of the
  general municipal law is revoked with respect to an empire zone or  zone
  equivalent  area,  any  wages  paid  by  the  taxpayer,  on or after the
  effective date of such decertification,  for  employment  in  such  zone
  shall not constitute empire zone wages.
    (B)  "Targeted employee" means a New York resident who receives empire
  zone wages and who is (i) an eligible individual under the provisions of
  the targeted jobs tax credit (section fifty-one of the internal  revenue
  code),  (ii) eligible for benefits under the provisions of the workforce
  investment act as a dislocated worker  or  low-income  individual  (P.L.
  105-220,  as  amended), (iii) a recipient of public assistance benefits,
  (iv) an individual whose income is below the most  recently  established
  poverty rate promulgated by the United States department of commerce, or
  a  member  of  a  family  whose family income is below the most recently
  established poverty rate promulgated by the appropriate  federal  agency
  or  (v) an honorably discharged member of any branch of the armed forces
  of the United States.
    An individual who satisfies the criteria  set  forth  in  clause  (i),
  (ii),  (iv)  or  (v)  at  the time of initial employment in the job with
  respect to which the credit is claimed, or who satisfies  the  criterion
  set  forth  in  clause  (iii)  at  such  time  or at any time within the
  previous two years, shall  be  a  targeted  employee  so  long  as  such
  individual continues to receive empire zone wages.
    (C)  "Average  number  of  individuals,  excluding  general  executive
  officers, employed full-time" shall  be  computed  by  ascertaining  the
  number  of such individuals employed by the taxpayer on the thirty-first
  day of March, the thirtieth day of June, the thirtieth day of  September
  and  the  thirty-first day of December during each taxable year or other
  applicable period, by adding together the  number  of  such  individuals
  ascertained  on  each  of such dates and dividing the sum so obtained by
  the number of such dates occurring within such  taxable  year  or  other
  applicable period.
    (3)  The  credit  provided  for herein shall be allowed only where the
  average number of individuals,  excluding  general  executive  officers,
  employed  full-time by the taxpayer in (i) the state and (ii) the empire
  zone or area previously constituting such zone or zone equivalent  area,
  during  the  taxable year exceeds the average number of such individuals

  employed full-time by the taxpayer in (i) the state and (ii)  such  zone
  or  area  subsequently or previously constituting such zone or such zone
  equivalent  area,  respectively,  during  the  four  years   immediately
  preceding  the  first  taxable  year in which the credit is claimed with
  respect to such zone or area.  Where  the  taxpayer  provided  full-time
  employment  within (i) the state or (ii) such zone or area during only a
  portion of such four-year period, then for purposes  of  this  paragraph
  the  term "four years" shall be deemed to refer instead to such portion,
  if any.
    The credit shall be allowed only with respect  to  the  first  taxable
  year  during  which  payments  of  empire  zone  wages  are made and the
  conditions set forth in this paragraph are satisfied, and  with  respect
  to each of the four taxable years next following (but only, with respect
  to  each of such years, if such conditions are satisfied), in accordance
  with paragraph four of this subsection. Subsequent certifications of the
  taxpayer pursuant to article eighteen-B of the general municipal law, at
  the same or a different  location  in  the  same  empire  zone  or  zone
  equivalent  area  or  at  a  location in a different empire zone or zone
  equivalent area, shall not extend the five taxable year time  limitation
  on  the  allowance  of  the  credit set forth in the preceding sentence.
  Provided, further, however, that no credit shall be allowed with respect
  to any taxable year beginning more than four years following the taxable
  year in which designation as an empire zone expired  or  more  than  ten
  years after the designation as a zone equivalent area.
    (4)  The  amount  of  the  credit  shall  equal the sum of (i) (A) the
  product of three thousand dollars and the average number of  individuals
  (excluding   general  executive  officers)  employed  full-time  by  the
  taxpayer, computed pursuant to the provisions  of  subparagraph  (C)  of
  paragraph two of this subsection, who (i) received empire zone wages for
  more  than half of the taxable year, (ii) received, with respect to more
  than half of the period of employment by the taxpayer during the taxable
  year, an hourly wage which was at least one hundred thirty-five  percent
  of  the  minimum  wage specified in section six hundred fifty-two of the
  labor law, and
    (iii) are targeted employees; and
    (B) the product of fifteen hundred dollars and the average  number  of
  individuals   (excluding  general  executive  officers  and  individuals
  described in subparagraph (A) of this paragraph) employed  full-time  by
  the taxpayer, computed pursuant to the provisions of subparagraph (C) of
  paragraph  two  of  this  subsection, who received empire zone wages for
  more than half of the taxable year.
    (C) For purposes of calculating the amount of the credit,  individuals
  employed  within  an  empire  zone  or  zone  equivalent area within the
  immediately preceding sixty months by a related person, as such term  is
  defined  in  subparagraph  (c)  of  paragraph three of subsection (b) of
  section four hundred sixty-five of the internal revenue code, shall  not
  be   included   in  the  average  number  of  individuals  described  in
  subparagraph (A) or subparagraph (B)  of  this  paragraph,  unless  such
  related  person  was  never  allowed a credit under this subsection with
  respect to such employees. For the  purposes  of  this  subparagraph,  a
  "related person" shall include an entity which would have qualified as a
  "related  person"  to  the  taxpayer  if  it  had  not  been  dissolved,
  liquidated, merged with another entity or otherwise ceased to  exist  or
  operate.
    (D)  If  a  taxpayer  is  certified in an empire zone designated under
  subdivision (a) or (d)  of  section  nine  hundred  fifty-eight  of  the
  general  municipal  law, the dollar amounts specified under subparagraph
  (A) or (B) of this paragraph shall be increased by five hundred  dollars

  for  each  qualifying  individual  under such subparagraph who received,
  during the taxable year, wages in excess of forty thousand dollars.
    (E)  The  requirement  in this paragraph that an employee must receive
  empire zone wages for more than half the taxable year shall not apply in
  the first taxable year of a taxpayer satisfying the criteria  set  forth
  in  this  subparagraph.  In  such  a case, the credit allowed under this
  subsection shall be computed by  utilizing  the  number  of  individuals
  (excluding  general  executive  officers)  employed  full  time  by  the
  taxpayer on the last day of its first taxable  year.  A  taxpayer  shall
  satisfy  the  following  criteria:  (i)  such  taxpayer acquired real or
  tangible personal property during its first taxable year from an  entity
  which  is  not  a related person (as such term is defined in subdivision
  (g) of section fourteen of this chapter); (ii) the first taxable year of
  such taxpayer shall be a short taxable  year  of  not  more  than  seven
  months  in  duration;  and  (iii)  the  number  of  individuals employed
  full-time on the last day of such first taxable year shall be  at  least
  one  hundred  ninety and substantially all of such individuals must have
  been previously employed by the entity from whom such taxpayer purchased
  its assets.
    Provided, further, however, that the credit provided for  herein  with
  respect  to  the  taxable  year,  and  carryovers  of such credit to the
  taxable year, deducted from the tax  otherwise  due,  may  not,  in  the
  aggregate,  exceed  fifty  percent  of  the  tax  imposed  under section
  fourteen hundred  fifty-five  computed  without  regard  to  any  credit
  provided for under this article.
    (5)  The  credit  and  carryovers  of  such  credit allowed under this
  subsection for any taxable year shall not, in the aggregate, reduce  the
  tax  due  for such year to less than the minimum tax fixed by subsection
  (b) of section fourteen hundred fifty-five of this article. However,  if
  the  amount  of  credit  or  carryovers of such credit, or both, allowed
  under this subsection for any taxable  year  reduces  the  tax  to  such
  amount,  or  if  any part of the credit or carryovers of such credit may
  not be deducted from the tax  otherwise  due  by  reason  of  the  final
  sentence in paragraph four hereof, any amount of credit or carryovers of
  such credit thus not deductible in such taxable year may be carried over
  to  the  following year or years and may be deducted from the taxpayer's
  tax for such year or years.
    (5-a) Any carry over of a credit from prior taxable years will not  be
  allowed  if  an empire zone retention certificate is not issued pursuant
  to subdivision (w) of section nine hundred  fifty-nine  of  the  general
  municipal  law  to  the empire zone enterprise which is the basis of the
  credit.
    (f) Credit for employment of persons with disabilities. (1)  Allowance
  of  credit.  A  taxpayer  shall  be  allowed a credit, to be computed as
  hereinafter provided, against the  tax  imposed  by  this  article,  for
  employing within the state a qualified employee.
    (2) Qualified employee. A qualified employee is an individual:
    (A) who is certified by the education department, or in the case of an
  individual  who  is  blind  or visually handicapped, by the state agency
  responsible for provision of vocational rehabilitation services  to  the
  blind  and visually handicapped: (i) as a person with a disability which
  constitutes or results in a substantial handicap to employment and  (ii)
  as  having  completed  or  as receiving services under an individualized
  written rehabilitation plan approved  by  the  education  department  or
  other  state  agency responsible for providing vocational rehabilitation
  services to such individual; and

    (B) who has worked on a  full-time  basis  for  the  employer  who  is
  claiming the credit for at least one hundred eighty days or four hundred
  hours.
    (3)  Amount  of  credit.  Except as provided in paragraph four of this
  subsection, the amount of credit shall be  thirty-five  percent  of  the
  first  six thousand dollars in qualified first-year wages earned by each
  qualified employee. "Qualified first-year wages"  means  wages  paid  or
  incurred  by the taxpayer during the taxable year to qualified employees
  which are attributable, with respect to any such employee,  to  services
  rendered  during the one-year period beginning with the day the employee
  begins work for the taxpayer.
    (4) Credit where federal work opportunity  tax  credit  applies.  With
  respect to any qualified employee whose qualified first-year wages under
  paragraph  three of this subsection also constitute qualified first-year
  wages for purposes of the work opportunity  tax  credit  for  vocational
  rehabilitation referrals under section fifty-one of the internal revenue
  code,  the  amount  of credit under this subsection shall be thirty-five
  percent of the first six thousand dollars in qualified second-year wages
  earned by each such employee. "Qualified second-year wages" means  wages
  paid  or  incurred  by the taxpayer during the taxable year to qualified
  employees which are attributable, with respect to any such employees, to
  services rendered during the one-year period beginning  one  year  after
  the employee begins work for the taxpayer.
    (5)  Carryover. The credit and carryovers of such credit allowed under
  this subsection for any taxable year shall not, in the aggregate, reduce
  the tax due for such  year  to  less  than  the  minimum  tax  fixed  by
  subsection  (b)  of section fourteen hundred fifty-five of this article.
  However, if the amount of credit or carryovers of such credit, or  both,
  allowed  under  this subdivision for any taxable year reduces the tax to
  such amount, then any amount of credit or carryovers of such credit thus
  not deductible in such taxable year may be carried over to the following
  year or years and may be deducted from the taxpayer's tax for such  year
  or years.
    (6)  Coordination  with  federal  work  opportunity  tax  credit.  The
  provisions of sections fifty-one and fifty-two of the  internal  revenue
  code,  as  such  sections  applied  on  October  first, nineteen hundred
  ninety-six, that apply to the work opportunity tax credit for vocational
  rehabilitation referrals shall apply to the credit under this subsection
  to the extent that  such  sections  are  consistent  with  the  specific
  provisions  of this subsection, provided that in the event of a conflict
  the provisions of this subsection shall control.
    (g) Order of credits.  Credits  allowable  under  this  article  which
  cannot  be  carried  over and which are not refundable shall be deducted
  first.  Credits allowable under this article which can be carried  over,
  and  carryovers  of such credits, shall be deducted next, and among such
  credits, those whose carryover is of limited duration shall be  deducted
  before  those  whose  carryover  is  of  unlimited  duration;  provided,
  however, that the credit allowable under subsection (e) of this  section
  shall be deducted prior to all other credits described in this sentence.
  Credits  allowable  under  this  article  which  are refundable shall be
  deducted last.
    (h)  Credits  for  New  York  S  corporations.   Notwithstanding   the
  provisions  of  this  section, no carryover of credit allowable in a New
  York C year shall be deducted from the  tax  otherwise  due  under  this
  article  in  a  New York S year, and no credit allowable in a New York S
  year, or carryover of such  credit,  shall  be  deducted  from  the  tax
  imposed by this article.  However, a New York S year shall be treated as
  a  taxable  year for purposes of determining the number of taxable years

  to  which  a  credit  may  be   carried   over   under   this   section.
  Notwithstanding  the  first  sentence  of  this subsection, however, the
  credit for the  special  additional  mortgage  recording  tax  shall  be
  allowed as provided in subsection (c) of this section, and the carryover
  of  any  such  credit  shall be determined without regard to whether the
  credit is carried from a New York C  year  to  a  New  York  S  year  or
  vice-versa.
    (i)  Investment  tax  credit  (ITC). (1) A taxpayer shall be allowed a
  credit, to be computed as hereinafter provided, against the tax  imposed
  by this article. Provided, however, a taxpayer shall not be allowed such
  credit  provided  by this paragraph unless (i) eighty percent or more of
  the  employees  performing  the  administrative  and  support  functions
  resulting  from  or related to the qualifying uses of such equipment are
  located in this state, or (ii) the  average  number  of  employees  that
  perform  the  administrative  and  support  functions  resulting from or
  related to the qualifying uses of such equipment and are located in this
  state during the taxable year for which the credit is claimed  is  equal
  to  or  greater  than  ninety-five  percent  of  the  average  number of
  employees that perform these functions and are  located  in  this  state
  during  the  thirty-six  months immediately preceding the year for which
  the credit is claimed, or (iii) the number of employees located in  this
  state  during  the taxable year for which the credit is claimed is equal
  to or greater than ninety percent of the number of employees located  in
  this  state  on December thirty-first, nineteen hundred ninety-eight or,
  if the taxpayer was not a calendar year  taxpayer  in  nineteen  hundred
  ninety-eight,  the  last  day  of  its  first  taxable year ending after
  December thirty-first, nineteen hundred ninety-eight.  If  the  taxpayer
  becomes subject to tax in this state after the taxable year beginning in
  nineteen  hundred  ninety-eight,  then  the  taxpayer is not required to
  satisfy the employment test provided in the preceding sentence  of  this
  subparagraph   for   its   first  taxable  year.  For  the  purposes  of
  subparagraph (iii) of this paragraph the employment test will  be  based
  on  the number of employees located in this state on the last day of the
  first taxable year the taxpayer is subject to tax in this state. If  the
  uses  of  the  property  must  be  aggregated  to  determine whether the
  property is principally  used  in  qualifying  uses,  then  either  each
  affiliate  using  the property must satisfy this employment test or this
  employment test  must  be  satisfied  through  the  aggregation  of  the
  employees  of the taxpayer, its affiliated regulated broker, dealer, and
  registered investment adviser using the  property.  The  amount  of  the
  credit  shall be the percent provided for herein below of the investment
  credit base. The investment credit base is the cost or other  basis  for
  federal  income  tax  purposes  of  tangible personal property and other
  tangible property, including  buildings  and  structural  components  of
  buildings,  described  in  paragraph  two  of  this subsection, less the
  amount of the nonqualified nonrecourse financing with  respect  to  such
  property  to  the  extent  such  financing  would be excludible from the
  credit base pursuant to section 46(c)(8) of the  Internal  Revenue  Code
  (treating such property as section thirty-eight property irrespective of
  whether  or  not  it in fact constitutes section thirty-eight property).
  If, at the close of a taxable year following the taxable year  in  which
  such  property  was  placed  in  service, there is a net decrease in the
  amount of  nonqualified  nonrecourse  financing  with  respect  to  such
  property,  such  net decrease shall be treated as if it were the cost or
  other basis of property described in paragraph two  of  this  subsection
  acquired,  constructed,  reconstructed or erected during the year of the
  decrease in the amount of nonqualified  nonrecourse  financing.  In  the
  case of a combined report the term investment credit base shall mean the

  sum  of  the investment credit base of each corporation included on such
  report. The percentage to be used to compute the credit allowed pursuant
  to this subsection shall be
       For taxable years beginning after
       1997   ..................................  five  percent  with
       respect to the first three hundred fifty  million  dollars  of
       the  investment  credit base, and four percent with respect to
       the investment credit base in excess of  three  hundred  fifty
       million dollars.
    (2)  A  credit  shall be allowed under this subsection with respect to
  tangible  personal  property  and  other  tangible  property,  including
  buildings and structural components of buildings, which are: depreciable
  pursuant  to  section  one  hundred  sixty-seven of the Internal Revenue
  Code, have a useful life of four years or more, are acquired by purchase
  as defined in section one  hundred  seventy-nine  (d)  of  the  Internal
  Revenue Code, have a situs in this state and are (A) principally used in
  the  ordinary  course of the taxpayer's trade or business as a broker or
  dealer in connection with the purchase or sale (which shall include  but
  not  be  limited  to  the  issuance,  entering into, assumption, offset,
  assignment,  termination,  or  transfer)  of  stocks,  bonds  or   other
  securities  as  defined  in section four hundred seventy-five (c) (2) of
  the Internal Revenue Code, or of commodities as defined in section  four
  hundred   seventy-five   (e)  of  the  Internal  Revenue  Code,  or  (B)
  principally used in the ordinary  course  of  the  taxpayer's  trade  or
  business  of  providing  investment  advisory  services  for a regulated
  investment company as defined in section eight hundred fifty-one of  the
  Internal  Revenue Code, or lending, loan arrangement or loan origination
  services to customers in connection with the  purchase  or  sale  (which
  shall  include  but  not  be  limited  to  the  issuance, entering into,
  assumption, offset, assignment, termination, or transfer) of  securities
  as  defined in section four hundred seventy-five (c) (2) of the Internal
  Revenue Code.  For  purposes  of  subparagraphs  (A)  and  (B)  of  this
  paragraph,  property purchased by a taxpayer affiliated with a regulated
  broker, dealer, or registered investment adviser  is  allowed  a  credit
  under  this  subsection  if  the  property  is  used  by  its affiliated
  regulated broker, dealer, or registered investment adviser in accordance
  with this subsection. For purposes of determining  if  the  property  is
  principally  used in qualifying uses, the uses by the taxpayer described
  in subparagraphs (A) and (B) of this paragraph  may  be  aggregated.  In
  addition,  the  uses  by  the taxpayer, its affiliated regulated broker,
  dealer and registered investment adviser under either or  both  of  such
  subparagraphs may be aggregated.
    (3)  A  taxpayer  shall  not be allowed a credit under this subsection
  with respect  to  any  property  described  in  paragraph  two  of  this
  subsection  if  such  property qualifies for the deduction allowed under
  subsection (k) of section one thousand four hundred fifty-three of  this
  article whether or not such amount shall have been deducted.
    (4)  A  taxpayer  shall  not be allowed a credit under this subsection
  with respect to tangible personal property and other tangible  property,
  including  buildings  and  structural  components of buildings, which it
  leases to any other person or corporation except where a taxpayer leases
  property to an  affiliated  broker,  dealer,  or  registered  investment
  adviser  that  uses such property in accordance with subparagraph (A) or
  (B) of paragraph two of this subsection. For purposes of  the  preceding
  sentence, any contract or agreement to lease or rent or for a license to
  use such property shall be considered a lease.
    (5) Except as otherwise provided in this paragraph, the credit allowed
  under  this subsection for any taxable year shall not reduce the tax due

  for such year to less than the dollar amount fixed as a minimum  tax  by
  subsection  (b)  of section one thousand four hundred fifty-five of this
  article.  However,  if  the  amount  of  credit  allowable  under   this
  subsection  for  any  taxable  year  reduces the tax to such amount, any
  amount of credit allowed for a taxable year may be carried over  to  the
  fifteen  taxable  years  next  following  such  taxable  year and may be
  deducted from the taxpayer's tax for such year or years. In lieu of such
  carryover, any such taxpayer which qualifies as  a  new  business  under
  paragraph eight of this subsection may elect to treat the amount of such
  carryover  as  an  overpayment  of  tax  to  be  credited or refunded in
  accordance with the provisions of section  one  thousand  eighty-six  of
  this  chapter,  provided,  however,  the provisions of subsection (c) of
  section one thousand eighty-eight of  this  chapter  notwithstanding  no
  interest shall be paid thereon.
    (6)  At  the  option of the taxpayer an eligible business facility for
  which a credit is allowed under subsection (b) of this  section  may  be
  treated  as  property (A) principally used in the ordinary course of the
  taxpayer's trade or business as a broker or dealer  in  connection  with
  the  purchase  or  sale  (which  shall include but not be limited to the
  issuance, entering into, assumption, offset, assignment, termination, or
  transfer) of stocks, bonds or other securities  as  defined  in  section
  four  hundred  seventy-five  (c) (2) of the Internal Revenue Code, or of
  commodities as defined in section four hundred seventy-five (e)  of  the
  Internal Revenue Code, or (B) principally used in the ordinary course of
  the  taxpayer's  trade  or  business  of  providing  investment advisory
  services for a regulated investment company as defined in section  eight
  hundred  fifty-one  of  the  Internal  Revenue  Code,  or  lending, loan
  arrangement or loan origination services to customers in connection with
  the purchase or sale (which shall include but  not  be  limited  to  the
  issuance, entering into, assumption, offset, assignment, termination, or
  transfer)  of securities as defined in section four hundred seventy-five
  (c) (2) of the Internal Revenue Code  provided  the  property  otherwise
  qualifies  under  paragraph  two  of  this  subsection, in which event a
  credit shall not be allowed under subsection (b) of this section.
    (7)(A) With respect to  property  which  is  depreciable  pursuant  to
  section  one hundred sixty-seven of the Internal Revenue Code but is not
  subject to the provisions of section one  hundred  sixty-eight  of  such
  code  and which is disposed of or ceases to be in qualified use prior to
  the end of the taxable year in which the credit  is  to  be  taken,  the
  amount of the credit shall be that portion of the credit provided for in
  this subsection which represents the ratio which the months of qualified
  use  bear  to the months of useful life. If property on which credit has
  been taken is disposed of or ceases to be in qualified use prior to  the
  end  of its useful life, the difference between the credit taken and the
  credit allowed for actual  use  must  be  added  back  in  the  year  of
  disposition.  Provided,  however,  if  such  property  is disposed of or
  ceases to be in qualified use after it has been  in  qualified  use  for
  more  than  twelve  consecutive  years, it shall not be necessary to add
  back the credit as provided in this subparagraph. The amount  of  credit
  allowed  for  actual use shall be determined by multiplying the original
  credit by the ratio which the months of qualified use bear to the months
  of useful life. For  purposes  of  this  subparagraph,  useful  life  of
  property  shall  be  the  same  as  the  taxpayer  uses for depreciation
  purposes when computing his federal income tax liability.
    (B) Except with respect to that property to which subparagraph (D)  of
  this  paragraph applies, with respect to three-year property, as defined
  in subsection (e) of section one hundred  sixty-eight  of  the  Internal
  Revenue  Code,  which  is  disposed  of or ceases to be in qualified use

  prior to the end of the taxable year in which the credit is to be taken,
  the amount of the credit shall be that portion of  the  credit  provided
  for  in  this  subsection which represents the ratio which the months of
  qualified  use  bear to thirty-six. If property on which credit has been
  taken is disposed of or ceases to be in qualified use prior to  the  end
  of  thirty-six  months,  the difference between the credit taken and the
  credit allowed for actual  use  must  be  added  back  in  the  year  of
  disposition.  The  amount  of  credit  allowed  for  actual use shall be
  determined by multiplying the original credit by  the  ratio  which  the
  months of qualified use bear to thirty-six.
    (C)  Except with respect to that property to which subparagraph (D) of
  this  paragraph  applies,  with  respect  to  property  subject  to  the
  provisions  of  section  one hundred sixty-eight of the Internal Revenue
  Code, other than three-year property as defined  in  subsection  (e)  of
  such  section  one hundred sixty-eight which is disposed of or ceases to
  be in qualified use prior to the end of the taxable year  in  which  the
  credit is to be taken, the amount of the credit shall be that portion of
  the  credit  provided  for in this subsection which represents the ratio
  which the months of qualified use bear to sixty. If  property  on  which
  credit  has  been  taken is disposed of or ceases to be in qualified use
  prior to the end of sixty months,  the  difference  between  the  credit
  taken  and  the  credit allowed for actual use must be added back in the
  year of disposition. The amount of credit allowed for actual  use  shall
  be  determined by multiplying the original credit by the ratio which the
  months of qualified use bear to sixty.
    (D) With  respect  to  any  property  to  which  section  one  hundred
  sixty-eight of the Internal Revenue Code applies, which is a building or
  a  structural component of a building and which is disposed of or ceases
  to be in a qualified use prior to the end of the taxable year  in  which
  the  credit  is  to  be  taken,  the  amount of the credit shall be that
  portion of the credit provided for in this subsection  which  represents
  the  ratio which the months of qualified use bear to the total number of
  months over which the taxpayer chooses to deduct the property under  the
  Internal  Revenue  Code.  If  property on which credit has been taken is
  disposed of or ceases to be in qualified use prior to  the  end  of  the
  period  over which the taxpayer chooses to deduct the property under the
  Internal Revenue Code, the difference between the credit taken  and  the
  credit  allowed  for  actual  use  must  be  added  back  in the year of
  disposition. Provided, however, if  such  property  is  disposed  of  or
  ceases  to  be  in  qualified use after it has been in qualified use for
  more than twelve consecutive years, it shall not  be  necessary  to  add
  back  the  credit as provided in this subparagraph. The amount of credit
  allowed for actual use shall be determined by multiplying  the  original
  credit  by the ratio which the months of qualified use bear to the total
  number of months over which the taxpayer chooses to deduct the  property
  under the Internal Revenue Code.
    (E)  For  taxable years commencing on or after January first, nineteen
  hundred ninety-eight the amount required to be added  back  pursuant  to
  this  paragraph  shall be augmented by an amount equal to the product of
  such amount and the underpayment rate of  interest  (without  regard  to
  compounding),  set  by  the  commissioner  pursuant to subsection (e) of
  section one thousand ninety-six of this chapter, in effect on  the  last
  day of the taxable year.
    (F)  If,  as of the close of the taxable year, there is a net increase
  with respect to the taxpayer in the amount of  nonqualified  nonrecourse
  financing  (within  the  meaning  of  section  46(c)(8)  of the Internal
  Revenue Code) with respect to any property with  respect  to  which  the
  credit   under   this  subsection  was  limited  based  on  attributable

  nonqualified nonrecourse financing, then an amount equal to the decrease
  in such credit which would have resulted from reducing, by the amount of
  such net increase, the cost or  other  basis  taken  into  account  with
  respect  to  such  property must be added back in such taxable year. The
  amount of nonqualified nonrecourse financing shall  not  be  treated  as
  increased  by  reason  of  a  transfer of (or agreement to transfer) any
  evidence of an indebtedness if such transfer occurs (or  such  agreement
  is entered into) more than one year after the date such indebtedness was
  incurred.
    (8)  For purposes of paragraph five of this subsection, a new business
  shall include any corporation, except a corporation which:
    (A) over fifty percent of the number of shares of stock entitling  the
  holders  thereof  to  vote  for the election of directors or trustees is
  owned or controlled,  either  directly  or  indirectly,  by  a  taxpayer
  subject to tax under this article; section one hundred eighty-three, one
  hundred  eighty-four,  one hundred eighty-five or one hundred eighty-six
  of article nine; article nine-A or article thirty-three of this chapter;
  or
    (B) is substantially similar  in  operation  and  in  ownership  to  a
  business entity (or entities) taxable, or previously taxable, under this
  article;  section one hundred eighty-three, one hundred eighty-four, one
  hundred eighty-five or one hundred eighty-six of article  nine;  article
  nine-A  or article thirty-three of this chapter; article twenty-three of
  this chapter or which would have been subject to tax under such  article
  twenty-three  (as  such article was in effect on January first, nineteen
  hundred eighty)  or  the  income  (or  losses)  of  which  is  (or  was)
  includable  under  article twenty-two of this chapter whereby the intent
  and purpose of this paragraph and paragraph five of this subsection with
  respect to refunding of credit to new business would be evaded; or
    (C) has been subject to tax under this  article  for  more  than  five
  taxable years (excluding short taxable years).
    (9)(A)(i)  If  a  taxpayer  is  required  by  paragraph  seven of this
  subsection to add back a portion of the credit  taken  because  property
  was destroyed or ceased to be in qualified use as a direct result of the
  September  eleventh,  two  thousand one terrorist attacks, such taxpayer
  may elect to defer the amount to be recaptured for all such property  to
  the  taxable  year  next  succeeding  the  taxable  year  in  which  the
  destruction or cessation of qualified use occurred. The taxable year  in
  which  the  destruction  or cessation of qualified use occurred shall be
  hereinafter referred to as the "recapture event taxable  year".  If  the
  taxpayer's  total  employment number in the state on the last day of the
  taxable year next succeeding the  recapture  event  taxable  year  is  a
  significant percentage of the taxpayer's average total employment number
  in the state for the taxpayer's recapture event taxable year and the two
  taxable  years  immediately  preceding the recapture event taxable year,
  then the taxpayer shall not be required to  recapture  any  credit  with
  respect  to  such property. If the taxpayer's total employment number in
  the state on the last day  of  the  taxable  year  next  succeeding  the
  recapture  event  taxable  year  is  not a significant percentage of the
  taxpayer's  average  total  employment  number  in  the  state  for  the
  taxpayer's  recapture  event  taxable  year  and  the  two taxable years
  immediately preceding the recapture event  taxable  year,  the  taxpayer
  shall  be  required  to  recapture the portion of the credit taken under
  this subsection, as required by paragraph seven of this subsection,  for
  all  of its property destroyed or which ceased to be in qualified use as
  a direct result of the September eleventh, two  thousand  one  terrorist
  attacks.  The  amount  required  to  be recaptured shall be augmented as
  required pursuant  to  subparagraph  (E)  of  paragraph  seven  of  this

  subsection  by  using  an  interest  rate equal to two times the rate of
  interest specified in such subparagraph seven applicable for the taxable
  year in which the recapture occurs.
    (ii)   The  taxpayer's  total  employment  number  shall  include  all
  employees of the taxpayer employed full-time  by  the  taxpayer  in  the
  state.  The  average  total  employment  number  for the recapture event
  taxable year  and  the  two  taxable  years  immediately  preceding  the
  recapture  event  taxable  year  shall  be  computed  by determining the
  taxpayer's total employment number on the thirty-first day of March, the
  thirtieth  day  of  June,  the  thirtieth  day  of  September  and   the
  thirty-first day of December during the applicable taxable years, adding
  together  the number of such individuals determined to be so employed on
  each of such dates and dividing the sum so obtained  by  the  number  of
  such  dates  occurring within such applicable taxable years. However, in
  the case of the taxable year  which  included  September  eleventh,  two
  thousand  one, the average total employment number for such taxable year
  shall be determined by using the total employment  number  on  September
  first, two thousand one in lieu of September thirtieth, two thousand one
  and,  if  such taxable year included December thirty-first, two thousand
  one, by excluding the total employment number on December  thirty-first,
  two thousand one.
    (B)  In  lieu  of  subparagraph  (A) of this paragraph, a taxpayer may
  elect  to  recapture  the  portion  of  the  credit  taken  under   this
  subsection,  as  required by paragraph seven of this subsection, for all
  of its property destroyed or which ceased to be in qualified  use  as  a
  direct  result  of  the  September  eleventh, two thousand one terrorist
  attacks, in the taxable year in which the destruction  or  cessation  of
  qualified use occurred. If the taxpayer makes such election and acquires
  property  (hereinafter referred to as "replacement property") to replace
  any property destroyed as a direct result of the September eleventh, two
  thousand one terrorist attacks (regardless of  when  such  property  was
  placed  in  service  and  whether  a credit was claimed on that property
  pursuant to this subsection), and such replacement property  is  similar
  or  related in service or use to such destroyed property, the investment
  credit base of the replacement  property  shall  be  determined  without
  regard  to  any basis reduction required pursuant to section 1033 of the
  internal revenue code.
    (C) The election made by the taxpayer under subparagraph (A) or (B) of
  this paragraph shall be made in the manner and form  prescribed  by  the
  commissioner.
    (D) A taxpayer, over fifty percent of whose employees died as a direct
  result  of  the  September eleventh, two thousand one terrorist attacks,
  may  make  the  election  provided  for  in  subparagraph  (A)  of  this
  paragraph,  and  shall  not  be  required  to  recapture any credit with
  respect to property which  was  destroyed  or  which  ceased  to  be  in
  qualified  use  as  a  direct  result of such attacks, whether or not it
  meets the employment test specified in clause (i) of subparagraph (A) of
  this paragraph.
    (j) Credit for purchase of  an  automated  external  defibrillator.  A
  taxpayer  shall be allowed a credit as hereinafter provided, against the
  tax imposed by this article for the purchase, other than for resale,  of
  an  automated external defibrillator, as such term is defined in section
  three thousand-b of the public health law.  The  amount  of  the  credit
  shall  be  the cost to the taxpayer of automated external defibrillators
  purchased during the taxable  year,  such  credit  not  to  exceed  five
  hundred  dollars with respect to each unit purchased. The credit allowed
  under this subsection for any taxable year shall not reduce the tax  due

  for  such  year  to less than the minimum tax fixed by subsection (b) of
  section fourteen hundred fifty-five of this article.
    (k)  (1)  A taxpayer shall be allowed a credit against the tax imposed
  by this article equal to twenty percent of the premium paid  during  the
  taxable  year for long-term care insurance. In order to qualify for such
  credit, the taxpayer's premium payment must be for the  purchase  of  or
  for  continuing  coverage  under  a long-term care insurance policy that
  qualifies for such credit pursuant to section one thousand  one  hundred
  seventeen of the insurance law.
    (2)  In  no event shall the credit herein provided for, and carryovers
  of such credit, be allowed in  an  amount  which  will  reduce  the  tax
  payable  to  less  than  the  dollar  amount  fixed  as a minimum tax by
  subsection (b) of section fourteen hundred fifty-five of  this  article.
  If, however, the amount of credit or carryovers of such credit, or both,
  allowable  under this subsection for any taxable year reduces the tax to
  such amount, any amount of credit or carryovers of such credit thus  not
  deductible  in  such  taxable  year may be carried over to the following
  year or years and may be deducted from the taxpayer's tax for such  year
  or years.
    (l)  Low-income  housing  credit.  (1) Allowance of credit. A taxpayer
  shall be allowed a credit against the tax imposed by this  article  with
  respect  to  the ownership of eligible low-income buildings, computed as
  provided in section eighteen of this chapter.
    (2) Application of credit. The credit and carryovers  of  such  credit
  allowed  under  this  subsection  for any taxable year shall not, in the
  aggregate, reduce the tax due for such year to less than the minimum tax
  fixed by subsection (b) of section fourteen hundred fifty-five  of  this
  article.  However, if the amount of credit or carryovers of such credit,
  or both, allowed under this subsection for any taxable year reduces  the
  tax  to  such  amount,  then  any amount of credit or carryovers of such
  credit thus not deductible in such taxable year may be carried  over  to
  the  following year or years and may be deducted from the taxpayer's tax
  for such year or years.
    (3) Credit recapture. For provisions requiring  recapture  of  credit,
  see subdivision (b) of section eighteen of this chapter.
    (m)  Green  building credit. (1) Allowance of credit. A taxpayer shall
  be allowed a credit, to be computed as provided in section  nineteen  of
  this chapter, against the tax imposed by this article.
    (2)  Carryover. The credit and carryovers of such credit allowed under
  this subsection for any taxable year shall not, in the aggregate, reduce
  the tax due for such  year  to  less  than  the  minimum  tax  fixed  by
  subsection  (b)  of section fourteen hundred fifty-five of this article.
  However, if the amount of credit or carryovers of such credit, or  both,
  allowed  under  this  subsection for any taxable year reduces the tax to
  such amount, then any amount of credit or carryovers of such credit thus
  not deductible in such taxable year may be carried over to the following
  year or years and may be deducted from the taxpayer's tax for such  year
  or years.
    (n) Credit for transportation improvement contributions. (1) Allowance
  of  credit.  A  taxpayer  shall  be  allowed a credit, to be computed as
  provided in section twenty of this chapter, against the tax  imposed  by
  this article.
    (2)  Application  of  credit. The credit allowed under this subsection
  for any taxable year shall not reduce the tax due for such year to  less
  than the minimum tax fixed by subsection (b) of section fourteen hundred
  fifty-five  of  this  article.  However, if the amount of credit allowed
  under this subsection for any taxable  year  reduces  the  tax  to  such
  amount,  then  any  amount of credit thus not deductible in such taxable

  year shall be treated as  an  overpayment  of  tax  to  be  credited  or
  refunded  in  accordance  with  the  provisions  of  section ten hundred
  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
  subsection  (c)  of  section  ten  hundred  eighty-eight of this chapter
  notwithstanding, no interest shall be paid thereon.
    (3) Credit recapture. For provisions requiring  recapture  of  credit,
  see subdivision (c) of section twenty of this chapter.
    (o)  QEZE  credit  for real property taxes. (1) Allowance of credit. A
  taxpayer which is a qualified empire zone enterprise shall be allowed  a
  credit  for  eligible real property taxes, to be computed as provided in
  section fifteen of  this  chapter,  against  the  tax  imposed  by  this
  article.
    (2)  Application  of  credit. The credit allowed under this subsection
  for any taxable year shall not reduce the tax due for such year to  less
  than the minimum tax fixed by subsection (b) of section fourteen hundred
  fifty-five  of  this  article.  However, if the amount of credit allowed
  under this subsection for any taxable  year  reduces  the  tax  to  such
  amount,  then  any  amount of credit thus not deductible in such taxable
  year shall be treated as  an  overpayment  of  tax  to  be  credited  or
  refunded  in  accordance  with  the  provisions  of  section ten hundred
  eighty-six  of  this  chapter.  Provided,  however,  the  provisions  of
  subsection  (c)  of  section  ten  hundred  eighty-eight of this chapter
  notwithstanding, no interest shall be paid thereon.
    (p) QEZE tax reduction credit. (1) Allowance  of  credit.  A  taxpayer
  which  is a qualified empire zone enterprise shall be allowed a QEZE tax
  reduction credit, to be computed as provided in section sixteen of  this
  chapter, against the tax imposed by this article.
    (2)  Application  of  credit. The credit allowed under this subsection
  for any taxable year shall not reduce the tax due for such year to  less
  than  the  minimum  tax  fixed  by  paragraph three of subsection (b) of
  section fourteen hundred fifty-five of this article.
    (q) Brownfield redevelopment tax credit. (1) Allowance  of  credit.  A
  taxpayer  shall  be  allowed  a  credit,  to  be computed as provided in
  section twenty-one of this chapter, against  the  tax  imposed  by  this
  article.
    (2)  Application  of  credit. The credit allowed under this subsection
  for any taxable year shall not reduce the tax due for such year to  less
  than  the  minimum  tax  fixed  by  paragraph three of subsection (b) of
  section fourteen hundred fifty-five of this  article.  However,  if  the
  amount  of  credits  allowed  under this subsection for any taxable year
  reduces the tax to such amount, any amount of credit thus not deductible
  in such taxable year shall be treated as an overpayment  of  tax  to  be
  credited  or  refunded  in accordance with the provisions of section ten
  hundred eighty-six of this chapter. Provided, however, the provisions of
  subsection (c) of section  ten  hundred  eighty-eight  of  this  chapter
  notwithstanding, no interest shall be paid thereon.
    (r) Remediated brownfield credit for real property taxes for qualified
  sites.    (1)  Allowance of credit. A taxpayer which is a developer of a
  qualified site shall be allowed a  credit  for  eligible  real  property
  taxes,  to  be  computed  as  provided  in  subdivision  (b)  of section
  twenty-two of this chapter, against the tax imposed by this article. For
  purposes of this subsection, the terms "qualified site" and  "developer"
  shall  have  the  same meaning as set forth in paragraphs two and three,
  respectively, of subdivision (a) of section twenty-two of this chapter.
    (2) Application of credit. The credit allowed  under  this  subsection
  for  any taxable year shall not reduce the tax due for such year to less
  than the minimum tax fixed by  paragraph  three  of  subsection  (b)  of
  section  fourteen  hundred  fifty-five  of this article. However, if the

  amount of credit allowed under this  subsection  for  any  taxable  year
  reduces the tax to such amount, any amount of credit thus not deductible
  in  such  taxable  year  shall be treated as an overpayment of tax to be
  credited  or  refunded  in accordance with the provisions of section ten
  hundred eighty-six of this chapter. Provided, however, the provisions of
  subsection (c) of section  ten  hundred  eighty-eight  of  this  chapter
  notwithstanding, no interest shall be paid thereon.
    (s)  Environmental  remediation  insurance  credit.  (1)  Allowance of
  credit. A taxpayer shall be allowed a credit, to be computed as provided
  in section twenty-three of this chapter, against the tax imposed by this
  article.
    (2) Application of credit. The credit allowed under  this  subdivision
  for  any taxable year shall not reduce the tax due for such year to less
  than the minimum tax fixed by  paragraph  three  of  subsection  (b)  of
  section  fourteen  hundred  fifty-five  of this article. However, if the
  amount of credits allowed under this subdivision for  any  taxable  year
  reduces the tax to such amount, any amount of credit thus not deductible
  in  such  taxable  year  shall be treated as an overpayment of tax to be
  credited or refunded in accordance with the provisions  of  section  one
  thousand  eighty-six  of this chapter. Provided, however, the provisions
  of subsection (c) of section one thousand eighty-eight of  this  chapter
  notwithstanding, no interest shall be paid thereon.
    * (t)  Security  training  tax  credit.  (1)  Allowance  of  credit. A
  taxpayer shall be allowed a  credit,  to  be  computed  as  provided  in
  section  twenty-six  of  this  chapter,  against the tax imposed by this
  article.
    (2) Application of credit. The credit allowed  under  this  subsection
  for  any taxable year shall not reduce the tax due for such year to less
  than the minimum tax fixed by  paragraph  three  of  subsection  (b)  of
  section  fourteen  hundred  fifty-five  of this article. However, if the
  amount of credits allowed under this subsection  for  any  taxable  year
  reduces the tax to such amount, any amount of credit thus not deductible
  in  such  taxable  year  shall be treated as an overpayment of tax to be
  credited or refunded in accordance with the provisions  of  section  one
  thousand  eighty-six  of this chapter. Provided, however, the provisions
  of subsection (c) of section one thousand eighty-eight of  this  chapter
  notwithstanding, no interest shall be paid thereon.
    * NB There are 2 sb§(t)'s
    * (t) Credit for fuel cell electric generating equipment expenditures.
  (1)  Allowance  of  credit.  For  taxable years beginning before January
  first, two thousand nine, a taxpayer shall be allowed a  credit  against
  the  tax  imposed  by  this  article,  equal  to its qualified fuel cell
  electric generating equipment expenditures. This credit shall not exceed
  one thousand five hundred dollars per generating unit  with  respect  to
  any  taxable  year.  The credit provided for in this subsection shall be
  allowed with respect to the taxable year in which the fuel cell electric
  generating equipment is placed in service.
    (2) Qualified fuel cell electric  generating  equipment  expenditures.
  (A)  Qualified  fuel cell electric generating equipment expenditures are
  the  costs,  incurred  on  or  after  July  first,  two  thousand  five,
  associated  with  the  purchase  of on-site electricity generation units
  utilizing  proton  exchange  membrane  fuel  cells,  providing  a  rated
  baseload  capacity  of  no  less  than one kilowatt and no more than one
  hundred kilowatts of electricity, which are located in this state at the
  time the qualified fuel cell electric generating equipment is placed  in
  service.
    (B)  Qualified  fuel  cell  electric generating equipment expenditures
  shall also include costs, incurred on or after July first, two  thousand

  five,  for  materials,  labor  for  on-site  preparation,  assembly  and
  original installation, engineering services, designs and plans  directly
  related to construction or installation and utility compliance costs.
    (C)  Such  qualified  expenditures shall not include interest or other
  finance charges.
    (D) The amount of any federal, state or local grant  received  by  the
  taxpayer,  which  was  used  for the purpose and/or installation of such
  equipment and which was not included in the federal gross income of  the
  taxpayer,  shall  not  be  included  in  the  amount  of  such qualified
  expenditures.
    (3) Application of credit. The credit allowed  under  this  subsection
  for  any taxable year shall not reduce the tax due for such year to less
  than the minimum tax fixed by  paragraph  three  of  subsection  (b)  of
  section  fourteen  hundred  fifty-five  of this article. However, if the
  amount of credit allowed under this  subsection  for  any  taxable  year
  reduces the tax to such amount, any amount of credit thus not deductible
  in  such taxable year may be carried over to the following year or years
  and may be deducted from the taxpayer's tax for such year or years.
    * NB There are 2 sb§(t)'s