IT-606: Claim for QEZE Credit for Real Property Taxes (2025)
New York · NY DTF · Used for tax years 2025
New York Form IT-606 is used to claim the qualified empire zone enterprise (QEZE) credit for real property taxes. It reports employment figures, eligible real property taxes, and calculations of the credit and any recapture.
Who files this form
Use Form IT-606 to claim the QEZE credit for real property taxes. QEZE stands for qualified empire zone enterprise. Submit it with Form IT-201, IT-203, IT-204, or IT-205.
The section you complete depends on when the business was first certified:
- Before April 1, 2005: Complete Section 1.
- On or after April 1, 2005: Complete Section 2.
The form includes employment tests. Section 1 requires current-year employment to equal or exceed base-period employment, both within all empire zones and within New York State outside all empire zones. Section 2 requires current-year employment to exceed base-period employment, both within all empire zones and throughout New York State. The form says to stop if you fail either applicable test.
What you'll need
Have the following information and attachments ready, as applicable:
- Certification documents: Submit copies of all certificates of eligibility and EZ retention certificates. Enter the date of first certification by Empire State Development.
- Business details: Taxpayer identification number, QEZE business name and EIN, empire zone names, and tax period. Section 2 also asks whether each zone is a development zone or investment zone.
- Employment information: Full-time employee counts for the current year and the applicable base period. Section 1 uses a five-year base period and also asks for test-year employment information. Section 2 uses a four-year base period.
- Real property tax information: Eligible real property tax amounts. Line 46 in Section 2 specifically requires supporting documentation.
- New employee details for Schedule K: Names, Social Security numbers, zone locations, wages, health benefits, and retirement benefits for the new employees on which the claim is based.
- Related entities: Names and EINs of related business entities, with additional sheets if needed.
- Capital investment information for Schedule Q: Property addresses, zone names if applicable, cost or other basis, and physical occupancy and use percentages.
- Valid business purpose statement, if applicable: For a QEZE first certified before August 1, 2002, Schedule G requires a notarized statement if you claim the business was formed for a valid business purpose.
- Beneficiary information, if applicable: Beneficiary names, identifying numbers, and shares of the credit and recapture.
How to file
Submit Form IT-606 with Form IT-201, IT-203, IT-204, or IT-205.
- Complete the information above Section 1 on page 1.
- Complete either Section 1 or Section 2, based on the date of first certification. Do not complete both.
- Attach the required certificates and any other applicable supporting documents.
- File all eight pages with your return, even though you complete only one section.
The supplied form does not provide a mailing address or e-filing directions. It refers filers to Form IT-606-I for assistance.
Common mistakes
- Leaving out unused pages: The form requires all eight pages to be filed with your return.
- Completing both sections: Complete only Section 1 or Section 2, based on the first certification date.
- Counting only employees in zones where you are certified: The employment tests for all empire zones include employees in every EZ, even zones where you are not certified.
- Rounding employment numbers: Do not round the current-year and base-period employment numbers where the form says not to round.
- Continuing after a failed employment test: The form says to stop because you are not eligible if you fail an applicable test.
- Entering zero on line 21: The form specifically says not to enter 0 for this credit limitation.
- Exceeding the Schedule K limit: Column E allows no more than $40,000 per employee in eligible wages, health benefits, and retirement benefits.
- Completing both parts of Schedule Q: Complete only Part 1 or Part 2.
Questions people ask
Which section should I complete?
Complete Section 1 if the QEZE was first certified before April 1, 2005. Complete Section 2 if it was first certified on or after that date. Do not complete both.
Do I need to submit all eight pages?
Yes. The form requires all pages, 1 through 8, to be filed with your return.
Can employment stay the same as in the base period?
For Section 1, the current-year employment numbers must equal or exceed the corresponding base-period numbers. For Section 2, they must exceed the base-period numbers. Each section has two employment tests, and the form says to stop if either applicable test is not met.
Do I need to attach my certification documents?
Yes. Submit copies of all certificates of eligibility and EZ retention certificates.
Does certification on or after April 1, 2009, affect the calculation?
Yes. In Section 2, line 47b requires businesses certified on or after April 1, 2009, to multiply line 47a by 75%. Businesses certified before that date enter the full line 47a amount on line 47b.