Instructions For Supplement To Corporation Tax (Form Ct-1)

Page 2 of 5 CT-1 (2013)

year beginning on or after January 1, 2013. For more information,

The amendments expand the program by reducing the city

see TSB-M-13(5)C, (3)I, Credit for Alternative Fuel Vehicle

population threshold and administer a separate credit allocation

Refueling Property and Electric Vehicle Recharging Property, and

for each of the additional program years. It extends the program

Form CT 637, Alternative Fuels and Electric Vehicle Recharging

so a tax credit may now be claimed for a qualified employee hired

Property Credit, and its instructions.

before January 1, 2018.

Empire State film production and post-production tax credits —

Several changes were made to these credits as follows:

Article 13

• the extension and reallocation of credits;

Chapter 59, Laws of 2013

• amended the definition of a qualified film adding the term

relocated television production;

Amendments to the related members royalty expense

• an additional credit for both film production projects and

add-back and income exclusion provisions — Technical

post-production projects in upstate New York;

changes were made to the computation of net income that amend

the related members royalty expense add-back and income

• post-production credit eligibility changes; and

exclusion. The income exclusion for royalty payments paid to

• a post-production credit limitation.

related members was repealed and the related members’ royalty

expense add-back was amended.

For more information, see TSB-M-13(6)C. You may also visit the

New York State Governor’s Office for Motion Picture and Television

Under the new law, a taxpayer that is not included in a combined

Development Web site at

report with a related member must now add back royalty payments

directly or indirectly paid, accrued, or incurred in connection

New York State Business Incubator and Innovation Hot Spot

with one or more direct or indirect transactions with one or more

Support Act — This act was created to support companies

related members during the tax year, to the extent deductible in

in New York State that are in the early stages of development.

calculating federal taxable income unless the taxpayer meets one

New Tax Law section 38 was added to provide for New York

of four exceptions.

State innovation hot spot program tax benefits. Empire State

Development (ESD) is authorized to designate five qualified New

In addition, the definition of a related member is now a related

York State incubators as New York State innovation hot spots

person as defined by IRC section 465(b)(3)(C), except that 50%

in state fiscal year 2013-14 and an additional five in state fiscal

is substituted for the 10% ownership threshold. For additional

year 2014-15. These hot spots can certify certain clients as a

information, see TSB-M-13(6)C.

qualified entity eligible for tax benefits under Tax Law section 38.

These tax benefits are allowed for up to five tax years beginning

with the first tax year a qualified entity becomes a tenant in (or as

Articles 32 and 33

part of) a New York State innovation hot spot.

Chapter 59, Laws of 2013

You may also be required to file Form CT-223, Innovation Hot Spot

Deduction.

Rehabilitation of historic properties credit — This enhanced

credit, previously scheduled to expire December 31, 2014, was

Rehabilitation of historic properties credit — This enhanced

extended to tax years beginning before January 1, 2020. To be

credit, previously scheduled to expire December 31, 2014, was

eligible for the credit, all or part of a rehabilitation project must be

extended to tax years beginning before January 1, 2020. To be

located within a census tract that is identified as being at or below

eligible for the credit, all or part of a rehabilitation project must be

100% of the state median family income.

located within a census tract that is identified as being at or below

100% of the state median family income.

For additional information, see TSB-M-13(4)C, (2)I, Amendments to

the Rehabilitation of Historic Properties Credit, and Form CT-238,

For additional information, see TSB-M-13(4)C, (2)I, Amendments to

Claim for Rehabilitation of Historic Properties Credit, and its

the Rehabilitation of Historic Properties Credit, and Form CT-238,

instructions.