CT-668: Semiconductor Research and Development Credit (2025)
New York · NY DTF · Used for tax years 2025
Form CT-668 reports the New York Semiconductor Research and Development Credit earned by a corporation or received as a share from a partnership, including any credit recapture. It also calculates the credit used, refunded, or applied to the next tax year, though New York S corpo
Who files this form
Form CT-668 is for corporations claiming the Semiconductor Research and Development Credit, either as the corporation that earned the credit or as a corporate partner receiving a share of the credit from a partnership.
File it with Form CT-3, CT-3-A, or CT-3-S. All filers must complete line A to identify whether they earned the credit directly.
What you'll need
- A copy of each credit certificate issued by Empire State Development. Submit the certificate copy with your return.
- Certificate details: the certified entity’s name and EIN, year of eligibility from 1 to 10, certificate number, and credit amount.
- Your corporation’s legal name, EIN, and tax period beginning and ending dates.
- If you received the credit through a partnership other than the entity listed on the certificate, that partnership’s name and EIN.
- For Schedule B, the tax due before credits, credits claimed before this credit, and minimum tax. New York S corporations do not complete Schedule B.
How to file
File Form CT-668 with Form CT-3, CT-3-A, or CT-3-S.
- Enter your tax period and corporation identification information, and complete line A.
- Complete the certificate information section. File a separate Form CT-668 for each certificate issued by Empire State Development, and submit a copy of the certificate with your return.
- Use Schedule A to report the credit amounts, total credit, credit recapture, and total available credit. Lines 2 and 4 collect the applicable totals from additional Forms CT-668.
- Complete Schedule B unless you are a New York S corporation. Report the amounts from lines 13, 15, and 16 on your franchise tax return as directed.
The form does not specify a mailing address or an e-file method.
Common mistakes
- Leaving line A blank. All filers must complete it.
- Omitting the tax period beginning and ending dates, which all filers must enter.
- Failing to complete the certificate information section, file a separate CT-668 for each certificate, or submit a certificate copy with the return.
- Leaving out the partnership’s name and EIN when you marked No on line A and received the credit from a partnership other than the entity listed on the certificate.
- Completing Schedule B as a New York S corporation. The form specifically says not to complete that schedule.
Questions people ask
Can a corporate partner report a share of the credit?
Yes. Line 3 is for a share of the Semiconductor Research and Development Credit received from a partnership. Line A distinguishes corporations that earned the credit from corporate partners that received a share.
What if I have more than one certificate?
File a separate Form CT-668 for each certificate issued by Empire State Development. Submit a copy of each certificate with your return.
Do New York S corporations complete Schedule B?
No. The form directs New York S corporations not to complete Schedule B.
How much credit can I use for the current tax year?
On Schedule B, line 13 is the smaller of the total available credit on line 7 or the credit limitation on line 12. Enter that amount on your franchise tax return as well.
What happens to unused credit on Schedule B?
Line 14 calculates unused credit available as a refund or an overpayment. Enter the amount to be refunded on line 15, limited to line 14. The remainder goes on line 16 as an overpayment toward the next year’s tax. Report both amounts on your franchise tax return.