IT-633: Economic Transformation and Facility Redevelopment Program Tax Credit (2024)
New York · NY DTF · Used for tax years 2024
Form IT-633 calculates New York’s Economic Transformation and Facility Redevelopment Program Tax Credit. It reports credit components for jobs, qualified investments, employee training, and real property taxes, including shares received from partnerships, S corporations, estates,
Who files this form
Use Form IT-633 to claim the Economic Transformation and Facility Redevelopment Program Tax Credit. The form covers individuals, including sole proprietors, partnerships, fiduciaries, and people claiming a share of the credit as a partner, New York S corporation shareholder, or estate or trust beneficiary.
Schedule A checks whether the business is either:
- A qualified new business; or
- At a closed facility within the Metropolitan Commuter Transportation District, but outside New York City, that was previously owned by New York State and operated as a psychiatric facility.
If both answers are no, the form says the business does not qualify. Schedule A also requires an average of at least five net new jobs for the current tax year. The form refers to instructions for definitions, but those instructions are not included in the supplied text.
What you'll need
You must submit copies of both documents issued by Empire State Development (ESD):
- Certificate of Eligibility.
- Preliminary Schedule of Benefits.
Have the information needed for the credit components you claim:
- Jobs: employee names, Social Security numbers, employment dates, gross wages, and net new job counts.
- Investment: property descriptions, dates placed in service, cost or other basis for federal income tax purposes, and the maximum closed-facility credit amount provided by ESD.
- Training: employee names and Social Security numbers, expense descriptions, payment dates, and expense amounts.
- Real property: eligible real property tax amounts and the applicable benefit-period year.
If you received a share of a credit or credit recapture from an entity, Schedule D asks for the entity's name, type, and employer identification number.
How to file
Submit Form IT-633 with Form IT-201, IT-203, IT-204, or IT-205. Include copies of your ESD Certificate of Eligibility and Preliminary Schedule of Benefits.
Mark the calendar-year box or enter the beginning and ending dates of your tax period. Also mark the benefit-period year, first through fifth, for which you are claiming the credit.
Complete the applicable credit schedules and follow the form's directions for your filer type. Complete Schedule D if you received a share of the credit or credit recapture from a partnership, S corporation, estate, or trust.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving out required attachments: The form says you must submit copies of both the ESD Certificate of Eligibility and Preliminary Schedule of Benefits.
- Continuing after failing Schedule A's business test: If you answer no to both questions 1a and 1b, the form says to stop because you do not qualify.
- Continuing after failing the jobs test: If the average number of net new jobs is less than five, the form says to stop because you do not qualify for the current tax year.
- Not identifying the benefit-period year: The form directs you to mark the year, first through fifth, for which you are claiming the credit.
Questions people ask
What credit components are listed on Form IT-633?
The form lists jobs, investment, training, and real property tax credit components.
How is the jobs tax credit component calculated?
Schedule B, Part 1, multiplies gross wages by 6.85% for each net new job created and maintained in the economic transformation area.
How is the training tax credit component calculated?
For each listed training expense, the form multiplies the expense by 50%, then uses the lesser of that result or $4,000 as the credit amount.
What if I received a share of the credit from another entity?
The form has separate lines for shares received from partnerships, S corporations, and estates or trusts. Complete Schedule D for each entity from which you received a share of the credit or credit recapture.
Does the form include a credit recapture section?
Yes. Schedule F summarizes credit recapture and is labeled for the final year of the benefit period. It directs individuals, fiduciaries, and partnerships where to report the total recapture amount.