CT-652: Employer-Provided Childcare Credit (2024)
New York · NY DTF · Used for tax years 2024
Form CT-652 is used by corporations to calculate New York’s Employer-Provided Childcare Credit for qualified childcare facility and resource and referral expenditures. It also reports credit amounts allocated from partnerships, credit used or refunded, amounts applied to next yea
Who files this form
Form CT-652 is for corporations claiming the Employer-Provided Childcare Credit, including corporations that earned the credit directly and corporate partners receiving a share of the credit from a partnership.
The form provides separate completion directions for C corporations and New York S corporations. All filers must enter their tax period and complete line A to identify how they received the credit.
What you'll need
Have the information needed for the schedules that apply to your claim:
- The corporation’s legal name, employer identification number (EIN), and tax period beginning and ending dates.
- For childcare facility expenditures: each qualified facility’s physical address and the qualified expenditures paid or incurred.
- For childcare resource and referral expenditures: each employee’s first and last name, work location ZIP code, Social Security number, and qualified expenditures paid or incurred.
- For partnership credits: the partnership’s name, EIN, allocated credit, and share of recapture.
- For Schedule C: tax due before credits, credits claimed before this credit, and minimum tax.
- For Schedule D: federal recapture on New York property, the federal credit originally allowed on that property, and the New York credit originally allowed.
How to file
File CT-652 with Form CT-3, CT-3-A, CT-3-S, CT-33, CT-33-A, or CT-33-NL.
Complete line A, then follow the schedule directions:
- C corporations: If you earned the credit directly, complete Schedules A and C. If you are claiming only as a corporate partner, complete Schedules B and C. Complete Schedule D if applicable.
- New York S corporations: If you earned the credit directly, complete Schedule A. If you are claiming only as a corporate partner, complete Schedule B. Complete Schedule D if applicable. Do not complete Schedule C.
The supplied form does not provide a mailing address or e-file directions.
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.
- Enter only the first five digits of an employee’s work location ZIP code in Schedule A, Part 2.
- On line 21, enter 0 if line 19 minus line 20 is zero or less.
- When calculating recapture on line 28, carry the division result to four decimal places.
Questions people ask
What credit rates appear on the form?
Schedule A applies a 50% rate to qualified childcare facility expenditures and a 20% rate to qualified childcare resource and referral expenditures.
Is there a limit on the credit calculated in Schedule A?
Yes. Line 9 is the lesser of the combined credit on line 7 or the $500,000 limitation on line 8.
Can unused credit be refunded or applied to next year’s tax?
Schedule C provides for unused credit to be refunded or applied as an overpayment to the next tax year. The refund on line 24 cannot exceed the unused credit on line 23. New York S corporations do not complete Schedule C.
Where do I report a credit allocated by a partnership?
Use Schedule B to list the partnership’s name, EIN, allocated credit, and share of recapture. Line 10 totals the allocated credits, and line 11 totals the allocated recapture. The form directs New York S corporations to see the instructions for those totals.