CT-37: Servicing Mortgages Credit (2024)
New York · NY DTF · Used for tax years 2024
Form CT-37 calculates the New York Servicing Mortgages Credit using the amount allocated in a State of New York Mortgage Agency (SONYMA) letter. It determines how much credit can be applied against corporation franchise tax and is filed with Form CT-3 or CT-3-A.
Who files this form
Use Form CT-37 to claim the servicing mortgages credit if your corporation has entered into a contract with the State of New York Mortgage Agency (SONYMA) to service mortgages SONYMA acquired under the State of New York Mortgage Agency Act. File it with Form CT-3 or CT-3-A.
A member of a combined group may claim the credit. The credit is calculated separately but applied against the combined tax.
Corporate partners may not receive this credit as a pass-through from a partnership.
What you'll need
Have these records ready:
- Your SONYMA letter stating the credit amount allowed for the current year.
- Form CT-3 or CT-3-A, including Part 2, line 2 for tax due before credits and Part 2, line 1c for the fixed dollar minimum tax.
- Amounts for any net recapture of other tax credits and any credits claimed before this credit.
- Form CT-600-I, Instructions for Form CT-600, Ordering of Corporation Tax Credits, if you are claiming more than one credit.
- Your corporation’s legal name, employer identification number (EIN), and tax period beginning and ending dates.
How to file
File Form CT-37 with Form CT-3 or CT-3-A.
- Enter your tax period, corporation’s legal name, and EIN.
- On line 1, enter the credit amount from your SONYMA letter.
- On line 2, enter Form CT-3 or CT-3-A, Part 2, line 2, plus any net recapture of other tax credits.
- On line 3, enter credits claimed before this credit, or 0 if none. Follow the credit order in Form CT-600-I.
- Subtract line 3 from line 2 and enter the result on line 4.
- On line 5, enter the fixed dollar minimum tax from Form CT-3 or CT-3-A, Part 2, line 1c.
- Subtract line 5 from line 4 for line 6. If line 4 is less than line 5, enter 0.
- On line 7, enter the smaller of line 1 or line 6. Transfer that amount to your franchise tax return.
Common mistakes
- Do not leave out the tax period. All filers must enter beginning and ending dates.
- Do not use the credit to reduce tax below the fixed dollar minimum tax.
- Do not request a refund, claim an overpayment credit, or carry forward an unused amount. None of these options is allowed.
- Do not apply this credit against the metropolitan transportation business tax (MTA surcharge).
- Apply tax credits in the required order. See Form CT-600-I.
- Combined filers must include on line 3 the credits claimed by all group members that they want to apply before this credit, including any servicing mortgages credit applied first.
Questions people ask
Who determines my credit amount?
SONYMA allocates the credit for the current year and supplies a letter stating the allowable amount. Enter that amount on line 1.
Can I use the entire amount in my SONYMA letter?
Only if it fits within the credit limit. Line 7 is the smaller of the SONYMA amount on line 1 or the limit on line 6. The credit cannot reduce tax below the fixed dollar minimum tax.
What happens to credit I cannot use this year?
Unused credit cannot be refunded, credited as an overpayment, or carried forward.
Can a combined group member claim the credit?
Yes. The credit is calculated separately for the member and applied against the combined tax.
Can a corporate partner claim this credit through a partnership?
No. Corporate partners may not receive the credit as a pass-through from a partnership.