CT-640: START-UP NY Telecommunication Services Excise Tax Credit (2025)
New York · NY DTF · Used for tax years 2025
Form CT-640 calculates the New York START-UP NY Telecommunication Services Excise Tax Credit for corporations, including credit allocated from partnerships. It reports the total credit and, for C corporations, the amount used, refunded, or applied as an overpayment to the next ta
Who files this form
Form CT-640 is for corporations claiming the START-UP NY Telecommunication Services Excise Tax Credit. The form covers C corporations and New York S corporations, including corporate partners claiming a share of the credit received from a partnership.
What you'll need
Have the following information available to complete the form:
- Your corporation’s legal name, employer identification number (EIN), and tax period beginning and ending dates.
- The certificate number from Form DTF-74, Certificate of Eligibility, issued to the approved START-UP NY business.
- The year of the START-UP NY business tax benefit period, entered as a number from 1 to 10.
- For Schedule A, the average value of property and employee wages and other compensation for the tax-free NY area and New York State.
- For Schedule B, the telecommunication services excise tax paid and any credit received from partnerships.
- For Schedule C, if applicable, tax due before credits, credits claimed before this credit, and the tax limitation.
- For Schedule D, if applicable, each partnership’s name, EIN, certificate number, year of business tax benefit period, and allocated credit amount.
How to file
File Form CT-640 with Form CT-3, CT-3-A, or CT-3-S.
All filers must enter their tax period and complete line A. Mark Yes if the corporation earned the credit itself, rather than receiving a share as a corporate partner. Mark No if claiming the credit as a corporate partner.
Complete lines B and C and the schedules that apply:
- C corporation that earned the credit: Schedules A, B, and C.
- C corporation claiming as a corporate partner: Schedules B, C, and D.
- New York S corporation that earned the credit: Schedules A and B.
- New York S corporation claiming as a corporate partner: Schedules B and D.
For Schedule D, submit additional forms as necessary. Enter the total partnership credit on line 19 and line 8.
If completing Schedule C, also enter the amounts from lines 15, 17, and 18 on your franchise tax return.
Common mistakes
- Do not leave the tax period or line A blank. Both are required for all filers.
- Do not complete Schedule C if you are a New York S corporation.
- Carry the results on lines 2, 4, and 6 to four decimal places.
- On line C, enter a business tax benefit period year from 1 to 10.
- On line 14, enter 0 if line 13 is more than line 12.
- Do not enter a refund amount on line 17 that exceeds the unused credit on line 16.
- File CT-640 with Form CT-3, CT-3-A, or CT-3-S.
Questions people ask
Can a corporate partner claim a share of the credit?
Yes. The form includes a path for corporate partners receiving a share of the credit from a partnership. Report partnership information in Schedule D and carry the total from line 19 to line 8.
Where do I find the certificate number for line B?
Use the certificate number from Form DTF-74, Certificate of Eligibility, issued to the approved START-UP NY business.
How much credit can I use for the current period?
For filers completing Schedule C, line 15 is the lesser of the total credit on line 9 or the credit limitation on line 14. Enter that amount on both CT-640 and your franchise tax return.
What does the form provide for unused credit?
Schedule C calculates unused credit on line 16. Line 17 allows an amount to be refunded, limited to line 16. The remainder goes on line 18 as an overpayment to the next period. New York S corporations do not complete Schedule C.