CT-604: Claim for QEZE Tax Reduction Credit (2025)
New York · NY DTF · Used for tax years 2025
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, zone allocation 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.
Which section you complete depends on your first certification date:
- Before April 1, 2005: Complete Section 1.
- On or after April 1, 2005: Complete Section 2.
New York S corporations do not complete Schedule E or Schedule L, the credit computation and application schedules.
What you'll need
Have the following ready to complete Form CT-604:
- 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 to the form.
- Full-time employee counts for March 31, June 30, September 30, and December 31 for the current tax year and applicable base-period years. Section 1 uses a five-year base period; Section 2 uses a four-year base period.
- Test-year employee counts within the empire zones where you are certified.
- Average property values and employee wages and other compensation for the empire zones and New York State. The compensation lines exclude general executive officers.
- Names and EINs of related business entities. Attach additional sheets if needed.
- For Schedule E or L, the business tax benefit period year, tax factor, franchise tax before credits, and credits claimed before this credit.
If you claim in Schedule G that the QEZE was formed for a valid business purpose, attach a notarized statement explaining in detail how it meets the valid business purpose test.
How to file
File Form CT-604 with Form CT-3, CT-3-A, or CT-3-S. Include all seven pages, including the intentionally blank page 4.
Complete the information above Section 1 on page 1, then complete only the section that applies to your first certification date. Attach copies of all Certificates of Eligibility, including retention certificates.
The form does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving out pages: The form says to file all pages, 1 through 7, with your return.
- Completing both sections: Complete either Section 1 or Section 2, not both.
- Skipping the identifying information: All taxpayers must complete the information above Section 1 on page 1, and all filers must enter their tax period.
- Rounding employment numbers: Do not round the current-year and base-period employment numbers where the form says not to round.
- Omitting employees from other empire zones: The employment tests require employees within all empire zones, even zones where you are not certified.
- Completing the credit schedules as a New York S corporation: New York S corporations must not complete Schedule E or Schedule L.
- Answering without marking a box: Mark an X in the appropriate box for Yes or No questions.
Questions people ask
Which section should I complete?
Complete Section 1 if you were first certified before April 1, 2005. Complete Section 2 if you were first certified on or after April 1, 2005. Do not complete both.
Must I include the blank page?
Yes. The form requires all seven pages to be filed with your return, including the intentionally blank page 4.
Do I need to attach my certification documents?
Yes. Attach copies of all Certificates of Eligibility, including retention certificates.
Do New York S corporations complete the credit calculation schedules?
No. The form says New York S corporations do not complete Schedule E or Schedule L.
What must I attach for a valid business purpose claim?
Schedule G, for QEZEs first certified before August 1, 2002, says to mark the box and attach a notarized statement describing in detail how the QEZE meets the valid business purpose test.