IT-602: Claim for EZ Capital Tax Credit (2024)
New York · NY DTF · Used for tax years 2024
Form IT-602 is used to claim a carryover of New York's expired Empire Zone (EZ) capital tax credit. It calculates the credit available, the amount used for the current tax year, and the amount carried forward to next year.
Who files this form
Use Form IT-602 to claim an Empire Zone (EZ) capital tax credit carryover with Form IT-201, IT-203, or IT-205.
The EZ capital tax credit has expired. For tax years beginning on or after April 1, 2014, including 2024, you may claim only carryover credit from previous years.
If your business was required to obtain an EZ retention certificate but was denied one, you cannot claim carryover credit attributable to investments in a certified EZ business. No EZ retention certificate is needed for carryover credit from contributions to community development projects.
What you'll need
Have these forms and figures available to complete the claim:
- Last year’s Form IT-602, for the carryover credit entered on line 3.
- Your Form IT-201, IT-203, or IT-205, for your name, identifying number, and tax amounts.
- Amounts for any other credits you are applying before this credit.
- As applicable, Form IT-201-ATT, Form IT-203-ATT, Form IT-230-I Worksheet A, or the Addbacks worksheet in the Form IT-205 instructions. The line instructions identify which amounts to use for your return type.
How to file
Submit Form IT-602 with your Form IT-201, IT-203, or IT-205. Use the same name and identifying number shown on your return.
- Complete Schedule A to calculate the credit limitation. Follow the instructions for line 1 for your return type, then multiply that amount by 50% on line 2.
- Enter last year’s carryover on line 3. On line 4, enter the smaller of line 2 or line 3.
- Complete Schedule B using the line instructions for tax due and credits claimed before this credit. Subtract line 6 from line 5 to find net tax on line 7.
- Enter the smaller of line 4 or line 7 on line 8. Subtract line 8 from line 3 to calculate next year’s carryover on line 9.
- Report the line 8 credit and code 162 on Form IT-201-ATT, line 6, or Form IT-203-ATT, line 7. For Form IT-205, include the credit on line 10.
Common mistakes
- Claiming a new credit: The credit has expired. Only carryovers from previous years may be claimed for 2024.
- Overlooking a denied retention certificate: If a required EZ retention certificate was denied, carryover credit attributable to investments in a certified EZ business is not eligible.
- Applying credits in the wrong order: Apply household credit first, then credits that cannot be carried over or refunded, then credits with limited carryover periods, then credits with unlimited carryover periods. Apply refundable credits last.
- Leaving the claim out of your return: Submit IT-602 with Form IT-201, IT-203, or IT-205.
Questions people ask
Can I claim a new EZ capital tax credit for 2024?
No. The credit has expired. Only carryover credit from previous years may be claimed.
How much credit can I use?
The credit cannot exceed the lesser of the tax due under Article 22 or 50% of the tax imposed by Article 22 section 601, without regard to any credit. Form IT-602 calculates the amount available and the amount you can use.
What happens to unused carryover credit?
Any carryover credit not deductible in the current tax year may be carried over to succeeding tax years. Line 9 shows the amount available to carry forward.
Do I need an EZ retention certificate for community development project contributions?
No. A retention certificate is not needed to claim carryover credit from contributions to community development projects.