CT-223: Innovation Hot Spot Deduction (2025)

Who files this form

Complete Form CT-223 if you are:

• A qualified entity located both inside and outside an innovation hot spot.
• A corporate partner of a qualified entity.
• Both of the above.

If you are a qualified entity located entirely within a hot spot, do not complete this form unless you are a New York S corporation.

What you'll need

The form says to file CT-223 with Form CT-225 or CT-225-A and to review Form CT-223-I, Instructions for Form CT-223, before completing it.

Have the following information ready:

• The corporation’s legal name and employer identification number (EIN).
• The innovation hot spot name, code, and business participation number.
• The EIN of the qualified entity located in the hot spot.
• Whether the entity is subject to the MTA surcharge.
• The tax year being claimed, entered as 1, 2, 3, 4, or 5.
• Income or gain attributable to the hot spot.

How to file

File Form CT-223 with Form CT-225 or CT-225-A. Before completing it, see Form CT-223-I, Instructions for Form CT-223.

The supplied form text does not give a mailing address or e-filing directions.

Common mistakes

• Do not complete CT-223 for a qualified entity located entirely within a hot spot unless it is a New York S corporation.
• Do not overlook the direction to file CT-223 with Form CT-225 or CT-225-A.
• Review Form CT-223-I before completing the form, as directed.

Questions people ask

Which form should I file CT-223 with?

File it with Form CT-225 or CT-225-A.

What should I enter for the tax year being claimed?

Column F asks you to enter 1, 2, 3, 4, or 5.

How do I indicate that the entity is subject to the MTA surcharge?

Mark an X in column E if the entity is subject to the MTA surcharge.

What income or gain does the form ask for?

Column G asks for income or gain attributable to the hot spot.

Official sources

• https://www.tax.ny.gov/pdf/current_forms/ct/ct223.pdf