Form Ct-46-I - Instructions For Form Ct-46 - Claim For Investment Tax Credit

Page 2 CT-46-I (1998)

Types of property that qualify for the investment tax credit in

Department of Environmental Conservation. Also included

lieu of other credits include eligible business facilities for

are ﬂue gas desulfurization equipment and attendant sludge

which a credit is allowable under section 210.11.

disposal facilities, ﬂuidized bed boilers, precombustion coal

cleaning facilities, or other facilities. Not included are

Deﬁnitions

facilities installed primarily to salvage materials usable in

the manufacturing process, or are marketable, or that rely

Nonqualiﬁed nonrecourse ﬁnancing is any amount for which

for their efﬁcacy on dilution, dispersion, or assimilation of air

the taxpayer is protected against loss and, generally, any

contaminants in the ambient air after emission. Attach the

amount borrowed from a person who has an interest (other

certiﬁcate of compliance concerning air pollution control

than as a creditor) in the activity in which the property is

facilities and air pollution controlled process facilities

used or from someone related to a person (other than the

(section 19-0309 of the Environmental Conservation Law).

taxpayer) who has an interest in the activity. Nonrecourse

ﬁnancing is nonqualiﬁed where it is not qualiﬁed

Research and development property is used for research

commercial ﬁnancing, as deﬁned in section 46(c)(8) of the

and development in the experimental or laboratory sense,

IRC. The reduction in computing the investment credit base,

but not for the ordinary testing or inspection of materials or

in the amount of nonqualiﬁed nonrecourse ﬁnancing, is

products for quality control, efﬁciency surveys, management

required only to the extent that such an exclusion would be

studies, consumer surveys, advertising, promotions, or

warranted under section 46(c)(8) of the IRC. Thus, the

research in connection with literary, historical, or similar

subtraction is required in the case of a corporation meeting

projects.

the personal holding company stock ownership criteria

Mergers and Acquisitions

contained in section 542(a)(2) of the IRC, with respect to

Section 210.12(e) provides that when an acquisition occurs,

property used in connection with an activity in which any

any carryover of investment tax credit will not be allowed to

loss is subject to limitation under section 465 of the IRC.

the acquired corporation ( target corporation ) in the tax year

in which it was a target corporation, or in any subsequent

Manufacturing is the process of working raw materials into

tax year if the credit was allowed for a tax year prior to the

wares suitable for use or giving new shapes, new qualities,

acquisition year. When a merger or consolidation occurs,

or new combinations to matter that already has gone

any carryover of investment tax credit will not be allowed to

through some artiﬁcial process by the use of machinery,

the corporation remaining after the merger (surviving

tools, appliances, and other similar equipment.

corporation) or consolidation (consolidated corporation) in

the tax year the corporate merger or corporate

Property used in the production of goods includes

consolidation occurred, or any subsequent tax year if the

machinery, equipment, or other tangible property principally

credit was allowed for a tax year prior to the merger or

used in the repair and service of other machinery,

consolidation year and the credit is attributable to a

equipment, or other tangible property used principally in the

corporation that is merged or consolidated into the

production of goods.

surviving corporation or consolidated corporation. However,

the investment tax credit may be carried over if the

Life or Useful Life (of property) means the depreciable life

surviving corporation or consolidated corporation can

provided by section 167 or 168 of the IRC.

demonstrate that the acquiring corporation originally

claimed and was allowed the investment tax credit.

Industrial waste treatment facilities means property

constituting facilities for the treatment, neutralization, or

Summary of Tax Credit(s)

stabilization of industrial waste and other wastes (as the

Complete Schedules A through D, as appropriate,

terms industrial wastes and other wastes are deﬁned in

before completing this section.

section 17-0105 of the Environmental Conservation Law)

from a point immediately preceding such treatment,

Line 10 — This is the net investment tax credit available for

neutralization, or stabilization, to the point of disposal. Such

use this period. If the amount on line 9 is greater than

property includes the necessary pumping and transmitting

line 8, you have a net recaptured tax credit. The recaptured

facilities, but excludes facilities installed for the primary

tax credit must be added back to the tax on Form CT-3,

purpose of salvaging materials that are usable in the

line 78, or Form CT-3-A, line 77 for this taxable year.

manufacturing process or are otherwise marketable. Attach

Line 12 — If you are claiming more than one credit, enter

the certiﬁcate of compliance concerning industrial waste

the amount of the credit(s) previously claimed before the

treatment facilities and industrial waste treatment controlled

investment tax credit. See next paragraph. Otherwise,

process facilities (section 17-0707 of the Environmental

enter ‘‘0.’’

Conservation Law).

Section 210.25 provides that the

Order of Credits —

Air pollution control facilities means property constituting

following credits must be applied in the order shown, before

facilities that remove, reduce, or render less noxious, air

the investment tax credit:

contaminants emitted from an air contamination source (as

1. Eligible business facility credit

the terms air contaminant and air contamination source are

2. Tax credit for servicing mortgages

deﬁned in section 19-0107 of the Environmental

3. Economic development zone wage tax credit

Conservation Law) from a point immediately preceding such

4. Zone equivalent area wage tax credit

removal, reduction, or rendering, to the point of discharge

5. Carryovers of the economic development zone wage tax

of air meeting emission standards as established by the

credit or zone equivalent area wage tax credit

Form Ct-46-I - Instructions For Form Ct-46 - Claim For Investment Tax Credit - 1998 Page 2

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