IT-226: Employer Compensation Expense Program Wage Credit (2025)
New York · NY DTF · Used for tax years 2025
Form IT-226 calculates the New York Employer Compensation Expense Program (ECEP) wage credit and is submitted with Form IT-201 or Form IT-203. It reports covered employee wages, the credit applied against this year’s tax, and any unused credit available to carry forward.
Who files this form
You may qualify for the ECEP wage credit if you worked for an employer that elected to participate in the Employer Compensation Expense Program and your wages and compensation for the year exceeded $40,000.
You must submit Form IT-226 for every year you claim either:
- A credit on current-year wages and compensation.
- A credit carried forward from a prior tax year.
If you are claiming only a carryforward, go directly to Schedule C, line 8.
What you'll need
Have these forms and details available:
- Your New York personal income tax return: Form IT-201 or Form IT-203.
- Your name and Social Security number, and your spouse’s information if applicable, as shown on your return.
- Each covered employee’s Social Security number, each electing employer’s name and identification number, and wages and compensation from each electing employer.
- Last year’s Form IT-226 if you are claiming a carryforward. The carryforward comes from line 14.
- Form IT-201-ATT or IT-203-ATT, as applicable, to report the credit and account for any amounts required in the tax calculation.
- Amounts of any credits applied before this credit.
Your electing employer should tell you that it opted into ECEP and provide information about the program.
How to file
Complete Form IT-226 using information from your New York personal income tax return, and submit it with Form IT-201 or Form IT-203.
- Schedule A: List each covered employee and electing employer combination separately. IT-201 filers use wages from line 1 received from each electing employer. IT-203 filers use line 1 of the New York State amount column. Subtract $40,000 from each column D amount to calculate column E.
- Schedule B: Follow lines 1 through 7 to calculate the current-year credit.
- Schedule C: Add any carryforward and calculate how much credit can be used this year and carried forward.
- Report the credit: Enter the amount from line 13 and code 226 on Form IT-201-ATT, line 6, or Form IT-203-ATT, line 7.
If Schedule A does not have enough room, complete additional Forms IT-226 using only the necessary schedules. Put your name and Social Security number on each form, include their totals on the indicated lines of the first form, and place the extra forms behind it.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Including wages from other employers: Do not include wages received from an employer that did not elect to participate in ECEP.
- Combining employee and employer entries: Use a separate line for each covered employee and electing employer combination, even if both spouses worked for the same employer.
- Leaving out Form IT-226 for a carryforward: Submit the form even when you claim only a credit carried forward from a prior year. Start at Schedule C, line 8.
- Requesting a refund of unused credit: The unused portion is not refundable. It may be carried forward indefinitely.
- Submitting incomplete extra forms: Include your name and Social Security number on each additional Form IT-226, transfer the totals to the first form, and place extra forms behind it.
Questions people ask
Can I get a refund for credit I cannot use?
No. You cannot request a refund for the unused portion, but you may carry it forward to future tax years indefinitely.
What if I am claiming only a credit from a prior year?
You must still submit Form IT-226 with your return. Go directly to Schedule C, line 8, and enter the carryover from last year’s Form IT-226, line 14.
What if my spouse and I worked for the same electing employer?
Use a separate Schedule A line for each covered employee and electing employer combination, even when both spouses worked for the same employer.
How much credit can I apply against this year’s tax?
Line 13 uses the smaller of your total credit on line 9 or your net tax on line 12. Line 14 shows the remaining credit available to carry forward.
Where do I report the credit on my return?
Enter the amount from Form IT-226, line 13, and code 226 on Form IT-201-ATT, line 6, or Form IT-203-ATT, line 7.