IT-633: Economic Transformation and Facility Redevelopment Program Tax Credit (2025)
New York · NY DTF · Used for tax years 2025
New York Form IT-633 calculates the Economic Transformation and Facility Redevelopment Program Tax Credit. It reports credit components for jobs, qualified investments, training expenses, and real property taxes, including shares received from partnerships, S corporations, estate
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.
For a business claiming eligibility in Schedule A:
- Answer Yes to at least one of these questions: Is it a qualified new business? Is it at a closed facility within the Metropolitan Commuter Transportation District, outside New York City, that was previously owned by New York State and operated as a psychiatric facility?
- The average number of net new jobs must be five or greater for the current tax year.
The form refers to instructions for definitions and eligibility details. Those instructions were not provided.
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.
- Investments: 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 taxes: Eligible real property tax amounts and the benefit-period year.
If you received a share of a credit or credit recapture from another entity, you also need that entity’s name, type, employer identification number, and your share amounts.
How to file
Submit Form IT-633 with Form IT-201, IT-203, IT-204, or IT-205. Attach copies of the Certificate of Eligibility and Preliminary Schedule of Benefits issued by ESD.
- Enter your name and taxpayer identification number as shown on your return.
- Mark the calendar-year box or enter your tax period, as applicable.
- Mark the benefit-period year, from first through fifth, for which you are claiming the credit.
- Complete the applicable eligibility, credit calculation, allocation, and recapture schedules. Mark the appropriate box if claiming as a partner, New York S corporation shareholder, or beneficiary.
- Complete Schedule D for each partnership, S corporation, estate, or trust from which you received a share of the credit or credit recapture.
The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Continuing after failing the business eligibility questions: Schedule A says to stop if you answer No to both questions 1a and 1b. You do not qualify for the credit.
- Continuing with too few net new jobs: Schedule A says to stop if the average number of net new jobs is below five. You do not qualify for the credit for the current tax year.
- Leaving out required attachments: The form requires copies of both the ESD Certificate of Eligibility and Preliminary Schedule of Benefits.
- Omitting entity details: Schedule D requires information for each entity from which you received a share of the credit or credit recapture.
Questions people ask
What credit components are included?
Schedule B includes jobs, investment, training, and real property tax credit components.
How is the jobs credit component calculated?
For each net new job created and maintained in the economic transformation area, the form multiplies gross wages by 6.85%. It refers to the instructions for further details.
How is the training credit component calculated?
For each entry in the training table, multiply the expense amount by 50%, then enter the smaller of that result or $4,000.
Can I report a credit received through another entity?
Yes. The form has lines for shares received from partnerships, S corporations, and estates or trusts. Complete Schedule D with information about each entity that provided a share of the credit or credit recapture.
Where is credit recapture reported?
Schedule F summarizes credit recapture for the final year of the benefit period. Individuals report its line 43 amount with code 633 on Form IT-201-ATT, line 20, or Form IT-203-ATT, line 19. Fiduciaries include it on Form IT-205, line 12. Partnerships report it with code 633 on Form IT-204, line 148.