CT-604: Claim for QEZE Tax Reduction Credit (2024)
New York · NY DTF · Used for tax years 2024
New York Form CT-604 is used to claim the QEZE tax reduction credit and is filed with Form CT-3, CT-3-A, or CT-3-S. It reports employment figures, property and payroll factors, and information used to calculate and apply the credit.
Who files this form
Corporations claiming the QEZE tax reduction credit use Form CT-604. File it with Form CT-3, CT-3-A, or CT-3-S.
The section you complete depends on your first certification date:
- Before April 1, 2005: Complete Section 1, pages 1 through 3.
- On or after April 1, 2005: Complete Section 2, pages 5 through 7.
New York S corporations do not complete the credit computation in Schedule E or Schedule L.
What you'll need
Have these documents and details ready:
- Your corporation’s legal name, EIN, tax period, empire zone names, and first certification date.
- Copies of all Certificates of Eligibility, including retention certificates, to attach.
- Full-time employee counts for the current tax year, the applicable base period, and the test year. The employment tables ask for counts on March 31, June 30, September 30, and December 31.
- Average property values and employee wages and other compensation for the empire zones and New York State. The compensation entries exclude general executive officers.
- Names and EINs of related business entities. Attach additional sheets if needed.
- Franchise tax before credits and credits claimed before this credit, if completing Schedule E or Schedule L.
If you are claiming a valid business purpose in Schedule G, attach a notarized statement explaining in detail how your QEZE meets that test.
How to file
File Form CT-604 with Form CT-3, CT-3-A, or CT-3-S.
Complete the information above Section 1 on page 1, then complete either Section 1 or Section 2 based on your first certification date. Do not complete both sections.
Submit all seven pages with your return, including the intentionally blank page 4. Attach copies of all Certificates of Eligibility, including retention certificates.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Leaving out pages: You must file all pages, 1 through 7, with your return.
- Completing both sections: Complete only Section 1 or Section 2, not both. All taxpayers must still complete the information above Section 1 on page 1.
- Rounding employment numbers: Do not round entries marked “do not round.”
- Missing employees in other empire zones: The all-EZ employment calculations include employees within all empire zones, even zones where you are not certified.
- Completing the wrong credit schedule as an S corporation: New York S corporations must not complete Schedule E or Schedule L.
- Omitting certification attachments: Attach all Certificates of Eligibility, including retention certificates.
Questions people ask
Which section should I complete?
Complete Section 1 if your QEZE was first certified before April 1, 2005. Complete Section 2 if it was first certified on or after April 1, 2005. Do not complete both.
Do I need to submit the blank page?
Yes. The form requires all seven pages to be filed with your return, including the intentionally blank page 4.
How long is the base period?
Section 1 uses a five-year base period. Section 2 uses a four-year base period.
What if there is not enough room to list related entities?
Attach additional sheets as needed. Schedules F and M ask for the names and EINs of related business entities.
What must I attach when claiming a valid business purpose?
For the claim in Schedule G, mark an X in the box and attach a notarized statement describing in detail how your QEZE meets the valid business purpose test. Schedule G is for QEZEs first certified before August 1, 2002.