CT-606: Claim for QEZE Credit for Real Property Taxes (2025)
New York · NY DTF · Used for tax years 2025
New York Form CT-606 is used by corporations to claim the QEZE credit for real property taxes. It reports certification and employment information, eligible real property taxes, and the calculation of the credit, including any recapture.
Who files this form
Corporations claiming the QEZE credit for real property taxes use Form CT-606 and file it with Form CT-3, CT-3-A, or CT-3-S.
The form has two sections based on the QEZE’s first certification date:
- Section 1: First certified before April 1, 2005.
- Section 2: First certified on or after April 1, 2005.
Complete only the applicable section. New York S corporations do not complete Schedule E or Schedule O, which apply the credit against tax.
What you'll need
Have the following information and attachments ready, as applicable:
- Corporation and certification information: Legal name, EIN, tax period, empire zone names, and date of first certification by Empire State Development. Attach copies of all certificates of eligibility, including retention certificates.
- Employment records: Full-time employee counts for March 31, June 30, September 30, and December 31 for the periods required by your section. Section 1 uses a five-year base period; Section 2 uses a four-year base period.
- Real property tax information: Eligible real property tax amounts. Line 52 specifically requires supporting documentation.
- New employee information for Schedule K: Names, Social Security numbers, zone locations, wages, health benefits, and retirement benefits.
- Related business information: Names and EINs of related business entities. Attach additional sheets if needed.
- Capital investment information for Schedule Q: Property addresses, zone names if applicable, cost or other basis, and physical occupancy and use percentages.
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 that test.
How to file
File Form CT-606 with Form CT-3, CT-3-A, or CT-3-S.
- Complete the identifying information above Section 1 on page 1, including your tax period and certification information.
- Complete either Section 1, pages 1 through 3, or Section 2, pages 5 through 8, based on your first certification date. Do not complete both.
- Include the required attachments.
- File all eight pages with your return, including page 4, which is intentionally blank.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving out pages: The form requires all eight pages with your return.
- Completing both sections: Complete only Section 1 or Section 2, not both.
- Rounding employment numbers: Do not round amounts on lines marked “do not round.”
- Omitting employees in other empire zones: The employment tests in Schedules A and H say to include employees within all EZs, even zones where you are not certified.
- Entering zero on line 20: The form specifically says not to enter zero for this credit limitation.
- 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
Do I need to submit the blank page?
Yes. Page 4 is intentionally blank, but the form requires you to file all pages, 1 through 8, with your return.
Which section should I complete?
Use Section 1 if your QEZE was first certified before April 1, 2005. Use Section 2 if it was first certified on or after April 1, 2005. All taxpayers must also complete the information above Section 1 on page 1.
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 include lines for an unused credit refund and for unused, nonrefunded credit to be credited as an overpayment to next year’s tax. Those lines refer to the instructions for details. New York S corporations do not complete these schedules.