CT-646: Employee Training Incentive Program Tax Credit (2024)
New York · NY DTF · Used for tax years 2024
Form CT-646 is used by corporations to claim New York’s Employee Training Incentive Program (E-TIP) tax credit. It reports the credit amount, including credits allocated from partnerships, and calculates amounts used, refunded, or applied to next year’s tax, except that New York
Who files this form
Corporations claiming the Employee Training Incentive Program (E-TIP) tax credit use Form CT-646. The form also covers corporations claiming the credit as corporate partners.
File it with Form CT-3, CT-3-A, or CT-3-S.
What you'll need
Have these documents and details ready:
- A copy of the certificate of tax credit issued by Empire State Development (ESD). You must submit this with the form.
- Your corporation’s legal name, employer identification number (EIN), and tax period beginning and ending dates.
- The E-TIP project number from the certificate and the certificate number.
- The total numbers of employees and interns included in the claim.
- If claiming credits allocated by partnerships, each partnership’s name, EIN, and allocated credit amount.
- If completing Schedule C, your tax due before credits, credits claimed before this credit, and fixed dollar minimum tax.
How to file
File Form CT-646 with Form CT-3, CT-3-A, or CT-3-S, and submit a copy of your ESD certificate of tax credit.
- Enter your tax period and identifying information. If claiming the credit as a corporate partner, mark an X in box A.
- Enter the E-TIP tax credit in Schedule A and any partnership credit allocations in Schedule B.
- Complete Schedule C to calculate the credit used, refunded, or applied to next year’s tax. New York S corporations must not complete Schedule C.
- Enter the Schedule C amounts on your franchise tax return where the form directs.
Common mistakes
- Leaving the tax period blank. All filers must enter it.
- Missing the corporate partner checkbox when claiming the credit as a corporate partner.
- Forgetting to submit a copy of the ESD certificate of tax credit.
- Completing Schedule C for a New York S corporation. The form explicitly says not to complete it.
- Entering a negative credit limitation on line 8. If line 7 is more than line 6, enter 0.
Questions people ask
Can a corporate partner claim the credit on this form?
Yes. Mark an X in box A and report the partnership’s name, EIN, and allocated credit amount in Schedule B.
How is the credit used for the year calculated in Schedule C?
Line 9 is the smaller of the total credit on line 3 or the credit limitation on line 8. Enter that amount on your franchise tax return as well.
What happens to unused credit?
Schedule C calculates unused credit on line 10 by subtracting line 9 from line 3. You may enter an amount to be refunded on line 11, up to the amount on line 10. The remainder goes on line 12 as an overpayment applied to next year’s tax.
Do New York S corporations complete Schedule C?
No. The form tells New York S corporations not to complete that schedule.