CT-645: Recapture of START-UP NY Tax Benefits (2024)
New York · NY DTF · Used for tax years 2024
Form CT-645 calculates the recapture of New York START-UP NY tax benefits through proportional recovery or recapture due to fraud. It also reports recapture allocated from partnerships and is attached to Form CT-3, CT-3-A, or CT-3-S.
Who files this form
Form CT-645 is for reporting recapture of START-UP NY tax benefits. It includes sections for proportional recovery, recapture due to fraud, and recapture allocated from partnerships.
The form is attached to Form CT-3, CT-3-A, or CT-3-S. The supplied form does not explain the full rules for when recapture is required.
What you'll need
Have the following information ready, as applicable:
- The corporation’s legal name, EIN, and tax period beginning and ending dates.
- Form DTF-74, Certificate of Eligibility, for the approved START-UP NY business’s certificate number.
- The certified business’s EIN, the dates of the year subject to proportional recovery, and the year of its tax benefit period, from 1 to 10.
- The benchmark number of net new jobs and the number actually created.
- Records of the credits, refunds, exemptions, excluded payroll expenses, or fees involved in the recapture.
- For recapture due to fraud, the wage exclusion claimed by employees, if applicable.
- For partnership recapture, each partnership’s name, EIN, certificate number, year of the business tax benefit period, and your share of recapture.
How to file
Attach Form CT-645 to Form CT-3, CT-3-A, or CT-3-S.
- Use Schedule A for proportional recovery of tax benefits.
- Use Schedule B for recapture due to fraud.
- Report partnership recapture information in Schedule C.
- Compute total recapture in Schedule D. Enter line 23 or line 31 on line 33, enter line 32 on line 34, and add lines 33 and 34 on line 35.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Leaving the tax period blank. The form states that all filers must enter the beginning and ending dates of their tax period.
- Omitting the required attachment. The form directs filers to attach CT-645 to Form CT-3, CT-3-A, or CT-3-S.
Questions people ask
Where do I find the certificate number for Schedule A?
Use the certificate number from Form DTF-74, Certificate of Eligibility, issued to the approved START-UP NY business.
How do I calculate the proportional recovery percentage?
Subtract the number of net new jobs actually created on line 2 from the benchmark number on line 1. Enter the difference on line 3. Divide line 3 by line 1 and round to four decimal places for line 4.
Where do I report recapture allocated from a partnership?
Use Schedule C. Enter the total allocated recapture on line 32 and carry it to line 34.
How is total recapture calculated?
In Schedule D, enter the amount from line 23 or line 31 on line 33. Add the partnership recapture on line 34 to get total recapture on line 35.