N.Y.
Tax Law Section 870
City pass-through entity tax credit
(a)
Personal income tax credit.(1)
A city taxpayer who is a direct partner or member in an electing city partnership or a direct shareholder of an electing city resident S corporation subject to tax under this article shall be allowed a credit against the tax imposed pursuant to the authority of article thirty of this chapter, computed pursuant to the provisions of subsection (g) of § 1310 (Credits against tax)section thirteen hundred ten of this chapter. An entity that is disregarded for tax purposes will be disregarded for purposes of determining if a city taxpayer is a direct partner or member of an electing city partnership or a direct shareholder of an electing city resident S corporation.(2)
Limitation on credit. No credit shall be allowed to a city taxpayer under paragraph one of this subsection unless the electing city partnership or electing city resident S corporation paid the tax imposed under this article and provided sufficient information on the city pass-through entity tax return as prescribed by the commissioner to identify such city taxpayer. Such information shall include, but not be limited to, the social security number or taxpayer identification number of the city taxpayer who will claim the credit (even in the case of a disregarded entity owned by such city taxpayer).(b)
Limitation on credit. The aggregate amount of credits claimed by all partners, members or shareholders of an electing city partnership or an electing city resident S corporation pursuant to subsection (a) of this section shall not exceed the tax due under section eight hundred sixty-nine of this article from such electing city partnership or electing city resident S corporation for the taxable year.
Source:
Section 870 — City pass-through entity tax credit, https://www.nysenate.gov/legislation/laws/TAX/870 (updated Apr. 29, 2022; accessed May 11, 2024).
