CT-606: Claim for QEZE Credit for Real Property Taxes (2024)

Who files this form

Form CT-606 is for corporations claiming the QEZE credit for real property taxes. File it with Form CT-3, CT-3-A, or CT-3-S.

The section you complete depends on your date of first certification:

• Before April 1, 2005: Complete Section 1.
• On or after April 1, 2005: Complete Section 2.

All filers must complete the information above Section 1 on page 1. Do not complete both sections.

What you'll need

Have the following information and attachments ready for the parts that apply to your claim:

• Your corporation’s legal name, EIN, tax period, empire zone names, and date of first certification by Empire State Development.
• Copies of all certificates of eligibility, including retention certificates. These must be attached.
• Full-time employee counts for March 31, June 30, September 30, and December 31 for the current year and the applicable base period. Section 1 uses a five-year base period; Section 2 uses a four-year base period.
• Test-year employment information for Section 1.
• Eligible real property tax amounts. Section 2, line 52, requires attached documentation.
• Names and EINs of related business entities, with additional sheets if needed.
• For Schedule K, new employees’ names, Social Security numbers, zone locations, wages, health benefits, and retirement benefits.
• For Schedule Q, property addresses, zone names if applicable, cost or other basis, and occupancy and use information.
• For Schedule G, a notarized statement explaining how the QEZE meets the valid business purpose test, if you are claiming that it was formed for a valid business purpose.

How to file

File Form CT-606 with Form CT-3, CT-3-A, or CT-3-S. Include all eight pages, even though page 4 is intentionally blank.

Complete the information above Section 1 on page 1, then complete either Section 1 or Section 2 based on your first certification date. Attach all certificates of eligibility, including retention certificates, and any other attachments required by the schedules you complete.

The supplied form does not give a mailing address or e-filing directions.

Common mistakes

• Leaving out pages: The form requires all pages, 1 through 8, with your return.
• Completing both sections: Complete either Section 1 or Section 2, not both.
• Skipping page 1 information: All filers must complete the information above Section 1.
• Rounding employment numbers: Do not round the employment numbers where the form says not to.
• Omitting employees in other empire zones: The employment tests require employees within all EZs, even zones where you are not certified.
• Completing the wrong credit application schedule: New York S corporations must not complete Schedule E or Schedule O.
• Entering zero on line 20: The form specifically says not to enter zero.
• Exceeding the Schedule K limit: Column E allows no more than $40,000 per employee.
• Completing both parts of Schedule Q: Complete only Part 1 or Part 2.

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 that date. Do not complete both.

Do I need to submit the blank page?

Yes. Page 4 is intentionally blank, but the form requires you to file all eight pages with your return.

Do I need to attach my certification documents?

Yes. Attach copies of all certificates of eligibility, including retention certificates.

Can unused credit be refunded or applied to next year’s tax?

Schedules E and O provide lines for unused credit to be refunded and for unused, nonrefunded credit to be credited as an overpayment to next year’s tax. Those lines refer to instructions that were not supplied here.

Do New York S corporations complete Schedule E or Schedule O?

No. The form says New York S corporations do not complete either schedule.

Official sources

• https://www.tax.ny.gov/pdf/2024/corp/ct606_2024.pdf