CT-46: Claim for Investment Tax Credit (2024)
New York · NY DTF · Used for tax years 2024
Form CT-46 is used by corporations to claim New York’s investment tax credit and employment incentive credit. It reports credit calculations, amounts used, refunded or carried forward, and recapture of credits taken in previous periods.
Who files this form
Form CT-46 is used by corporations to claim the investment tax credit, including the employment incentive credit. File it with Form CT-3, CT-3-A, or CT-3-S.
The form includes entries for research and development property and qualified property of eligible farmers. If you are claiming the credit as a corporate partner, mark box A.
The supplied form does not explain the full eligibility rules.
What you'll need
Have the following information ready to complete the form:
- The corporation’s legal name, employer identification number, and tax period beginning and ending dates.
- For each property claimed in Schedule A: its description, principal use, acquisition date, useful life in years, and investment credit base.
- If claiming the employment incentive credit: New York State employee counts for the employment base year and current tax year, plus the original investment credit information requested in Schedule C.
- If reporting recapture: the property description, acquisition or rehabilitation date, date it stopped qualifying, life and unused life in months, and original investment tax credit allowed.
- For the credit-use calculation, if applicable: unused credits from the preceding period, expired credits, tax due before credits, credits claimed before this credit, and fixed dollar minimum tax.
How to file
File Form CT-46 with Form CT-3, CT-3-A, or CT-3-S.
Enter the corporation’s identifying information and tax period. Complete the applicable schedules for investment tax credit, employment incentive credit, and credit recapture, then transfer the totals to the summary lines as directed.
The supplied form does not provide a mailing address or e-file directions.
Common mistakes
- Do not leave the tax period blank. All filers must enter beginning and ending dates.
- In Schedule A, list property items separately. Complete columns A through D and columns E through H on corresponding lines.
- New York S corporations must enter 0 on lines 5 and 6 and must not complete the section for computing credit used, refunded, or carried forward.
- If the line 15 calculation is less than zero, enter 0.
- In Schedule C, exclude research and development property claimed at the optional rate from the investment credit base.
Questions people ask
Does CT-46 include the employment incentive credit?
Yes. Schedule B covers eligibility information, and Schedule C computes the employment incentive credit. Transfer the total from line 28 to line 4.
Where do eligible farmers report their investment tax credit?
Schedule A, column H, provides for a credit equal to the investment credit base multiplied by 20% for qualified property. Add column H amounts on line 21a and enter that total on line 2a.
How does the form handle a credit available for refund?
Line 18a reports the credit available for refund. The form directs qualified new businesses and eligible farmers to mark the appropriate box on line 18b or 18c. Line 18d shows the amount to be refunded, and line 18e shows the amount to apply as an overpayment to next year’s tax. These lines refer to instructions that were not supplied.
Where is credit recapture reported?
Use Schedule D to calculate recapture. Add lines 30 and 31 on line 32, then enter the line 32 total on line 9.