CT-602: Claim for EZ Capital Tax Credit. (2025)
New York · NY DTF · Used for tax years 2025
Form CT-602 is used by C corporations to claim a carryover of the expired New York empire zone (EZ) capital tax credit. It calculates the credit limitations, the amount used this year, and the unused amount carried forward to future years.
Who files this form
C corporations claiming an unused Empire Zone (EZ) capital tax credit from previous years complete Form CT-602, Schedules A and B, and file it with Form CT-3 or CT-3-A. The credit has expired, so only carryovers from previous years may be claimed.
If your business was required to obtain an EZ retention certificate but was denied one, you cannot claim a carryover attributable to investments in a certified EZ business. A retention certificate is not needed for carryovers from contributions to community development projects.
New York S corporations do not complete Form CT-602. Their shareholders use Form IT-602 to claim a carryover on their New York State personal income tax returns.
What you'll need
Have these forms and details available:
- Form CT-3 or CT-3-A, including Part 2, lines 2 and 1c.
- Your corporation’s legal name and EIN as shown on page 1 of your tax return, and the beginning and ending dates of your tax period.
- The amount of unused EZ capital tax credit from previous periods.
- Any net recapture of other tax credits and the amounts of credits being applied before this credit.
- Form CT-600-I, Instructions for Form CT-600, Ordering of Corporation Tax Credits, if you need the required order for applying credits.
How to file
File Form CT-602 with Form CT-3 or CT-3-A. The supplied text does not give a mailing address or e-file directions.
- Enter your tax period, corporation’s legal name, and EIN. Mark box A if you are claiming the credit as a corporate partner.
- Complete Schedule A to calculate the 50% limitation and the tax limitation. For line 3, include any net recapture of other tax credits plus Part 2, line 2 of Form CT-3 or CT-3-A. For line 6, use Part 2, line 1c of that return.
- Complete Schedule B. Enter unused credit from previous periods on line 8. On line 9, enter the smallest of lines 2, 7, and 8, and transfer that amount to your franchise tax return.
- Subtract line 9 from line 8 to determine the credit available for carryforward on line 10.
Common mistakes
- Claiming a new EZ capital tax credit. The credit has expired; only prior-year carryovers may be claimed.
- Using the credit to reduce tax below the fixed dollar minimum tax or to offset the MTA surcharge. Neither is allowed.
- Exceeding the 50% limit on tax imposed under Tax Law § 209, calculated without regard to any credit.
- Requesting a refund of unused credit. Unused amounts may be carried forward indefinitely, but cannot be refunded.
- Applying credits in the wrong order. Use Form CT-600-I for the required order. Enter 0 on line 4 if no credits are being claimed before this credit.
- Completing CT-602 for a New York S corporation. Shareholders use Form IT-602 instead.
Questions people ask
Can I claim a new EZ capital tax credit for 2025?
No. The credit has expired. You may only claim an unused credit carried over from previous years.
Can unused credit be refunded?
No. You may carry unused credit forward to future tax years indefinitely.
How much credit can I use this year?
Line 9 uses the smallest of the 50% limitation on line 2, the tax limitation on line 7, or the unused credit on line 8. The credit cannot reduce tax below the fixed dollar minimum tax or offset the MTA surcharge.
Do I need an EZ retention certificate?
If your business was required to obtain one but was denied it, you cannot claim carryover credit attributable to investments in a certified EZ business. You do not need a retention certificate for carryovers from contributions to community development projects.
What if I am claiming the credit as a corporate partner?
Mark an X in box A on Form CT-602.