CT-651: Recovery Tax Credit (2024)
New York · NY DTF · Used for tax years 2024
Form CT-651 is used by corporations to claim New York’s Recovery Tax Credit. It reports credit earned by the corporation or allocated from partnerships and, for C corporations, calculates the credit used, refunded, or applied to the next year’s tax.
Who files this form
Form CT-651 is for corporations claiming the recovery tax credit, either as a corporation that earned the credit or as a corporate partner that received a share of the credit from a partnership. The form includes directions for C corporations and New York S corporations.
File it with Form CT-3, CT-3-A, CT-3-S, CT-33, CT-33-A, or CT-33-NL.
What you'll need
- The franchise tax return you are filing with Form CT-651: CT-3, CT-3-A, CT-3-S, CT-33, CT-33-A, or CT-33-NL.
- A copy of the certificate of tax credit issued by the New York State Office of Addiction Services and Supports (NYS OASAS). The form requires you to submit this copy.
- Your corporation’s legal name, employer identification number (EIN), and tax period beginning and ending dates.
- If your corporation earned the credit, certificate details for lines B through D: the certified business’s name and EIN, certificate number, and number of eligible employees for which the credit is claimed.
- If you received credit from a partnership, the partnership’s name, EIN, certificate number, and credit amount allocated to you for Schedule B.
- If you complete Schedule C, the tax due before credits, credits claimed before this credit, and fixed dollar minimum tax.
How to file
File Form CT-651 with Form CT-3, CT-3-A, CT-3-S, CT-33, CT-33-A, or CT-33-NL. Submit a copy of the NYS OASAS certificate of tax credit with it. The provided form does not give a mailing address or e-file directions.
Enter your tax period, corporation’s legal name, and EIN. All filers must answer line A to indicate whether the corporation earned the credit itself rather than receiving it through a partnership.
Complete the sections that apply:
- C corporation that earned the credit: Lines B through D and Schedules A, B, and C.
- C corporation claiming credit as a corporate partner: Schedules B and C.
- New York S corporation that earned the credit: Lines B through D and Schedules A and B.
- New York S corporation claiming credit as a corporate partner: Schedule B.
Schedule C calculates the credit used, refunded, or applied as an overpayment to the next tax year. Enter the amounts from lines 9, 11, and 12 on your franchise tax return as directed.
Common mistakes
- Leaving the tax period or line A blank. All filers must enter the tax period and complete line A.
- Omitting the certificate copy. You must submit a copy of the certificate of tax credit issued by NYS OASAS.
- Completing Schedule C as a New York S corporation. The form explicitly says New York S corporations must not complete this schedule.
- Entering a negative credit limitation on line 8. If line 7 is more than line 6, enter 0.
- Using more credit than allowed on line 9. Enter the lesser of line 3 or line 8.
- Requesting too large a refund on line 11. The refund is limited to the unused credit on line 10.
Questions people ask
Do I need to attach my credit certificate?
Yes. You must submit a copy of the certificate of tax credit issued by NYS OASAS.
Can a corporate partner claim a share of the credit?
Yes. The form provides for corporate partners claiming credit received from a partnership. Report partnership information and the allocated credit in Schedule B.
Does a New York S corporation complete Schedule C?
No. New York S corporations must not complete Schedule C.
What happens to unused credit shown in Schedule C?
Line 10 calculates the unused credit available as a refund or an overpayment. Enter the amount to be refunded on line 11 and the amount to apply to the next year’s tax on line 12. Report both amounts on your franchise tax return.
How much credit can I use for this tax year in Schedule C?
Line 9 is the lesser of your total credit on line 3 or the credit limitation on line 8. Enter that amount on both Form CT-651 and your franchise tax return.