IT-602: Claim for EZ Capital Tax Credit (2025)
New York · NY DTF · Used for tax years 2025
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 for use, the amount used for the current tax year, and the unused amount carried forward to future years.
Who files this form
Use Form IT-602 to claim an Empire Zone (EZ) capital tax credit carryover from previous years. The credit has expired, so you cannot claim a new credit.
If your business was required to obtain an EZ retention certificate from Empire State Development but was denied one, you cannot claim carryover credit attributable to investments in a certified EZ business. You do not need this certificate for carryover credit from contributions to community development projects.
What you'll need
Have these forms and amounts available:
- Last year’s Form IT-602, which provides the carryover credit for line 3.
- Your Form IT-201, IT-203, or IT-205, including the name and identifying number shown on that return.
- Any applicable attachments or worksheets referenced in the calculations: Form IT-230-I, Worksheet A; Form IT-201-ATT; Form IT-203-ATT; or the Addbacks worksheet in the Form IT-205 instructions.
- Amounts of any resident credit, accumulation distribution credit, and other tax credits applied before this credit.
How to file
Submit Form IT-602 with your Form IT-201, IT-203, or IT-205.
- Complete Schedule A to calculate the credit limit. Line 2 is 50% of line 1.
- Enter last year’s carryover on line 3. On line 4, enter the smaller of line 2 or line 3.
- Complete Schedule B to calculate the credit used and the amount carried forward. Line 8 is the smaller of line 4 or line 7. Line 9 is line 3 minus line 8.
- Report the line 8 amount and code 162 on Form IT-201-ATT, line 6, or Form IT-203-ATT, line 7. For Form IT-205, include the amount on line 10.
The supplied text does not specify a mailing address or e-filing instructions.
Common mistakes
- Claiming a new credit: The EZ capital tax credit has expired. Only carryovers from previous years may be claimed.
- 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.
- Requesting a refund of unused credit: Unused credit is not refundable. It may be carried forward indefinitely.
- Exceeding the credit limit: The credit cannot exceed the lesser of the tax due under Article 22 or 50% of the tax imposed by § 601, without regard to any credit.
- Applying credits out of order: The printed order is household credit; credits that cannot be carried over or refunded; credits with limited carryover periods; credits with unlimited carryover periods; then refundable credits.
Questions people ask
Can I claim a new EZ capital tax credit for 2025?
No. The credit has expired. You may only claim a carryover from previous years.
Can I get a refund for unused credit?
No. You may carry unused credit forward to future tax years indefinitely.
Do I need an EZ retention certificate for credit from community development contributions?
No. A retention certificate is not needed to claim carryover credit from contributions to community development projects.
Where do I find my carryover amount?
Enter the carryover credit from last year’s Form IT-602 on line 3.
Which return do I submit this claim with?
Submit Form IT-602 with Form IT-201, IT-203, or IT-205.