N.Y.
Tax Law Section 863
Pass-through entity tax credit
(a)
Personal income tax credit.(1)
A taxpayer subject to tax under article 22 (Personal Income Tax)article twenty-two of this chapter that is a direct partner or member in an electing partnership or a direct shareholder of an electing S corporation subject to tax under this article shall be allowed a credit against the tax imposed pursuant to article twenty-two of this chapter, computed pursuant to the provisions of subsection (kkk) of § 606 (Credits against tax)section six hundred six of this chapter. An entity that is disregarded for tax purposes will be disregarded for purposes of determining if a taxpayer is a direct partner or member of an electing partnership or direct shareholder of an electing S corporation.(2)
Limitation on credit. No credit shall be allowed to a taxpayer under paragraph one of this subsection unless the electing partnership or electing S corporation paid the tax imposed under this article and provided sufficient information on the pass-through entity tax return as prescribed by the commissioner to identify that taxpayer. Such information shall include, but not be limited to, the social security number or taxpayer identification number of the article twenty-two taxpayer who will claim the credit (even in the case of a disregarded entity owned by such taxpayer).(b)
Limitation on credit. The aggregate amount of credits claimed by all partners, members or shareholders of an electing partnership or electing S corporation pursuant to subsection (a) of this section shall not exceed the tax due under subsection (a) of § 862 (Imposition and rate of tax)section eight hundred sixty-two of this article from such electing partnership or electing S corporation for the taxable year.
Source:
Section 863 — Pass-through entity tax credit, https://www.nysenate.gov/legislation/laws/TAX/863 (updated Apr. 23, 2021; accessed Oct. 26, 2024).
