DTF-621: Claim for QETC Employment Credit (2025)
New York · NY DTF · Used for tax years 2025
Form DTF-621 is used to claim New York’s qualified emerging technology company (QETC) employment credit. It documents eligibility, compares average full-time employment in New York State with a three-year base period, and calculates the current-year credit.
Who files this form
Use Form DTF-621 to claim the qualified emerging technology company (QETC) employment credit. The form also provides for partners, S corporation shareholders, and beneficiaries of estates or trusts to report their share of the credit.
To qualify under Schedule A, the company must:
- Be located in New York State.
- Have total annual product sales of $10,000,000 or less.
- Meet the form’s QETC business-activity requirements.
The business-activity tests cover New York State research and development (R&D) activities or the development or creation of emerging technology products or services. The R&D test compares the company’s R&D funds percentage with the most recently published average ratio. For the emerging technology products or services test, qualifying receipts or sales must be greater than 50% of total receipts or sales. If total receipts or sales are zero, the form instead tests whether qualifying expenditures are greater than 50% of total expenditures.
To continue to Schedule B, the current-year average number of full-time employees in New York State must be at least 101% of the three-year base-period average.
What you'll need
Have the information needed for the parts of the form that apply to you:
- Your name as shown on your return, taxpayer identification number, and tax-period beginning and ending dates.
- Company location and total annual product sales.
- R&D funds and net sales, if using the R&D test.
- A description of emerging technology products or services, plus the relevant receipts, sales, or expenditures reported on your federal return, if using that test.
- Full-time New York State employee counts for March 31, June 30, September 30, and December 31 for the current tax year and each year of the three-year base period.
- Names and Social Security numbers of employees used to calculate the current-year average on line 17.
- Your share of the credit and the business name and taxpayer identification number of the partnership, S corporation, estate, or trust, if applicable.
- Current-year tax, other credits used, and fixed dollar minimum tax for Schedule D, if applicable.
How to file
File Form DTF-621 with Form CT-3, CT-3-A, CT-3-S, IT-201, IT-203, IT-204, or IT-205, as applicable.
Enter your tax period and mark whether you are claiming the credit for the first, second, or third tax year. Follow Schedule A’s eligibility questions and skip instructions, then complete the applicable credit calculations. Schedule D applies only to Article 9-A filers.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Do not continue as eligible if the company is outside New York State or has total annual product sales above $10,000,000.
- If the company has R&D funds but zero net sales, skip lines 6a and 6b and mark Yes on line 7.
- If line 10 is zero, skip to line 13 rather than calculating the receipts or sales percentage.
- For the emerging technology receipts or expenditures tests, the percentage must be greater than 50%, not merely equal to 50%.
- If line 19 is less than 101%, do not complete Schedule B. The form directs you to the instructions.
- On line 20, include only employees listed on page 3.
- If the credit limitation calculation on line 32 is negative, enter 0.
Questions people ask
How is the credit calculated in Schedule B?
Subtract the three-year base-period average on line 21 from the current-year average on line 20. Multiply the difference by $1,000 on line 23 to calculate the current-year credit on line 24.
Where do I report a credit passed through to me?
Partners, S corporation shareholders, and beneficiaries of estates or trusts enter their share on line A. The form directs these filers to the instructions.
Is there a special box for corporate partners?
Yes. If you are claiming the credit as a corporate partner, mark an X in box B.
What does the form provide for unused credit?
Line 35 reports the amount of unused credit to be refunded. Line 36 reports unused, nonrefunded credit to be applied as an overpayment to the next year’s tax return. Both lines refer to instructions, which were not supplied, so the form alone does not explain the conditions for these amounts.