CT-186: Utility Corporation Franchise Tax Return (2024)
New York · NY DTF · Used for tax years 2024
Form CT-186 is New York’s Utility Corporation Franchise Tax Return for calendar year 2024, for continuing section 186 taxpayers only, identified as certain independent power producers. It reports gross earnings and allocated dividends, calculates franchise tax, and accounts for t
Who files this form
Form CT-186 is for continuing taxpayers under New York Tax Law Article 9, section 186 only, described on the form as certain independent power producers. This version covers calendar year 2024.
If you do business or exercise a corporate franchise in the Metropolitan Commuter Transportation District (MCTD), the form says you must also file Form CT-186-M.
What you'll need
- A copy of the federal return filed, either Form 1120 or another federal return, to attach.
- The corporation’s EIN, file number, incorporation information, NAICS business code, and contact information.
- Records of gross earnings from operating revenue, interest, dividends, and other revenues, for New York State and everywhere.
- Records of stock issued, paid-in capital, dividends paid, and retained earnings.
- Prepayment amounts and payment dates, including applicable Form CT-400 installments, payments with Form CT-5.6, and overpayments credited from prior years or Form CT-186-M.
- Any tax credit forms being filed. Line 6b says to identify and attach them.
How to file
The form says to see the instructions for where to file. The supplied text does not provide a mailing address or e-filing directions.
For payment, enter the balance due from line 15 on line A. Make the payment payable to New York State Corporation Tax, attach it in the designated area, and detach all check stubs.
Attach a copy of the federal return and any tax credit forms being filed. Complete the authorized person’s certification and signature fields.
Common mistakes
- Forgetting to mark the overpayment box when claiming an overpayment.
- Leaving out the required copy of the federal return.
- Claiming tax credits without marking the applicable boxes and attaching the credit forms.
- Leaving check stubs attached to the payment. The form says to detach all check stubs.
- Omitting prepayment details when more space is needed. The form says to put all relevant information on a separate sheet, write “see attached” in the prepayment section, and transfer the total to line 10.
Questions people ask
What is the minimum tax shown on the form?
Line 4 shows a minimum tax of $125. Line 5 uses the larger of that minimum or the total gross earnings and dividends tax on line 3, before the tax credits on line 6b.
How is the gross earnings tax calculated?
Schedule A adds gross earnings from operating revenue, interest, dividends, and other revenues. Line 26 multiplies the New York State total on line 25, column A, by 0.0075.
When does the form require a first installment for the next period?
If you filed an extension request, line 8a asks for the amount from Form CT-5.6, line 2. If you did not file Form CT-5.6 and line 7 is over $1,000, line 8b says to enter 25% of line 7 and refers you to the instructions.
What can I do with an overpayment?
The form provides lines to credit an overpayment to the next period, credit it to Form CT-186-M, or request a refund of the remaining amount.