CT-633: Economic Transformation and Facility Redevelopment Program Tax Credit (2024)

Who files this form

Corporations claiming the Economic Transformation and Facility Redevelopment Program Tax Credit use Form CT-633 with Form CT-3, CT-3-A, CT-3-S, CT-33, CT-33-A, or CT-33-NL. The form also asks whether you are claiming the credit as a corporate partner.

Schedule A requires you to answer yes to at least one of these questions:

• Is the business a qualified new business?
• Is the business at a closed facility within the Metropolitan Commuter Transportation District, but outside New York City, that was previously owned by New York State and operated as a psychiatric facility?

You must also have an average of at least five net new jobs for the current tax year. The form refers to instructions for the eligibility definitions, but those instructions are not included in the supplied text.

What you'll need

You must attach copies of both documents issued by Empire State Development (ESD):

• Certificate of Eligibility.
• Preliminary Schedule of Benefits.

Have the following information ready for the parts you complete:

• Corporation’s legal name, EIN, tax period, and benefit-period year.
• Net new job counts for the quarterly dates listed in Schedule A.
• Employee names, Social Security numbers, employment dates, and gross wages for the jobs credit.
• Property descriptions, dates placed in service, federal tax cost or other basis, and the maximum closed-facility investment credit amount provided by ESD.
• Employee and expense details for training, including dates paid and amounts.
• Eligible real property taxes and whether the property is entirely within or outside a closed facility.
• Partnership names, EINs, and allocated credit amounts, if applicable.

How to file

File Form CT-633 with Form CT-3, CT-3-A, CT-3-S, CT-33, CT-33-A, or CT-33-NL. Attach the ESD Certificate of Eligibility and Preliminary Schedule of Benefits.

Enter your tax period, mark the benefit-period year, and indicate whether you are claiming the credit as a corporate partner. Complete Schedule A to check eligibility, Schedule B for the credit components, and Schedule C for the credit summary. Schedule E collects partnership credit information.

Schedule D calculates the credit used, refunded, or applied to next year’s tax. S corporations must not complete Schedule D.

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

Common mistakes

• Continuing after failing the eligibility questions. If you answer no to both Schedule A questions 1a and 1b, the form says to stop because you do not qualify.
• Continuing with fewer than five average net new jobs. If the answer to line 3 is no, the form says you do not qualify for the current tax year.
• Omitting required attachments. Attach both the ESD Certificate of Eligibility and Preliminary Schedule of Benefits.
• Leaving out the tax period. All filers must enter it.
• Completing Schedule D as an S corporation. The form explicitly says S corporations must not complete this section.

Questions people ask

What credit components are on Form CT-633?

Schedule B includes jobs, investment, training, and real property tax credit components.

Which benefit-period year should I mark?

Mark the box for the year of the benefit period you are claiming: first, second, third, fourth, or fifth.

Where do I report credits allocated by a partnership?

Report the partnership’s name, EIN, and allocated credits in Schedule E. Line 35 totals flow to lines 5, 13, 16, and 21 for the corresponding credit components.

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

Schedule D provides for unused credit to be refunded or applied as an overpayment to next year’s tax. The refund on line 33 is limited to the unused credit on line 32. S corporations must not complete Schedule D.

Official sources

• https://www.tax.ny.gov/pdf/2024/corp/ct633_2024.pdf