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(g) Empire Zone Wage Tax Credit (WTC)

(1) A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article where the taxpayer has been certified pursuant to article eighteen-B of the general municipal law. The amount of the credit shall be as prescribed in paragraph four hereof.

(2) For purposes of this subdivision, the following terms shall have the following meanings:

(A) "Empire zone wages" means wages paid by the taxpayer for full-time employment, other than to general executive officers, during the taxable year, in an area designated or previously designated as an empire zone or zone equivalent area pursuant to article eighteen-B of the general municipal law, where such employment is in a job created in the area (i) during the period of its designation as an empire zone, (ii) within four years of the expiration of such designation, or (iii) during the ten year period immediately following the date of designation as a zone equivalent area, provided, however, that if the taxpayer's certification under article eighteen-B of the general municipal law is revoked with respect to an empire zone or zone equivalent area, any wages paid by the taxpayer, on or after the effective date of such decertification, for employment in such zone shall not constitute empire zone wages.

(B) "Targeted employee" means a New York resident who receives empire zone wages and who is (i) an eligible individual under the provision of the targeted jobs tax credit (section fifty-one of the internal revenue code), (ii) eligible for benefits under the provisions of the job training partnership act (P.L. 97-300, as amended), (iii) a recipient of public assistance benefits or (iv) an individual whose income is below the most recently established poverty rate promulgated by the United States department of commerce, or a member of a family whose family income is below the most recently established poverty rate promulgated by the appropriate federal agency. An individual who satisfies the criteria set forth in clause (i), (ii) or (iv) at the time of initial employment in the job with respect to which the credit is claimed, or who satisfies the criterion set forth in clause (iii) at such time or at any time within the previous two years, shall be a targeted employee so long as such individual continues to receive empire zone wages.

(C) "Average number of individuals, excluding general executive officers, employed full-time" shall be computed by ascertaining the number of such individuals employed by the taxpayer on the thirty-first day of March, the thirtieth day of June, the thirtieth day of September and the thirty-first day of December during each taxable year or other applicable period, by adding together the number of such individuals ascertained on each of such dates and dividing the sum so obtained by the number of such dates occurring within such taxable year or other applicable period.

(3) The credit provided for herein shall be allowed only where the average number of individuals, excluding general executive officers, employed full-time by the taxpayer in (i) the state and, (ii) the empire zone or area previously constituting such zone or zone equivalent area, during the taxable year exceeds the average number of such individuals employed full-time by the taxpayer in (i) the state and (ii) such zone or area subsequently or previously constituting such zone or such zone equivalent area, respectively, during the four years immediately preceding the first taxable year in which the credit is claimed with respect to such zone or area. Where the taxpayer provided full-time employment within (i) the state or (ii) such zone or area during only a portion of such four-year period, then for purposes of this paragraph the term "four years" shall be deemed to refer instead to such portion, if any. * The credit shall be allowed only with respect to the first taxable year during which payments of empire zone wages are made and the conditions set forth in this paragraph are satisfied, and with respect to each of the four taxable years next following (but only, with respect to each of such years, if such conditions are satisfied), in accordance with paragraph four of this subdivision. Provided, further, however, that no credit shall be allowed with respect to any taxable year beginning more than four years following the taxable year in which designation as an empire zone expired or more than ten years after the designation as a zone equivalent area.

* NB Applies to taxable years beginning on or after January 1, 2001

*(4) The amount of the credit shall equal the sum of (A) the product of three thousand dollars and the average number of individuals (excluding general executive officers) employed full-time by the taxpayer, computed pursuant to the provisions of subparagraph (C) of paragraph two of this subdivision, who (i) received empire zone wages for more than half of the taxable year, (ii) received, with respect to more than half of the period of employment by the taxpayer during the taxable year, an hourly wage which was at least one hundred thirty-five percent of the minimum wage specified in section six hundred fifty-two of the labor law, and (iii) are targeted employees; and (B) the product of fifteen hundred dollars and the average number of individuals (excluding general executive officers and individuals described in subparagraph (A) of this paragraph) employed full-time by the taxpayer, computed pursuant to the provisions of subparagraph (C) of paragraph two this subdivision, who received empire zone wages for more than half of the taxable year. Provided, further, however, that the credit provided for herein with respect to the taxable year, and carryovers of such credit to the taxable year, deducted from the tax otherwise due, may not, in the aggregate, exceed fifty percent of the sum of the taxes imposed under sections fifteen hundred one and fifteen hundred ten or the limitation on tax computed pursuant to section fifteen hundred five, whichever is less, computed without regard to any credit provided for under this article.

* NB Applies to taxable years beginning on or after January 1, 2001

(5) The credit or carryovers of such credit allowed under this subdivision for any taxable year shall not, in the aggregate, reduce the tax due for such year to less than the minimum tax fixed by paragraph four of subdivision (a) of section fifteen hundred two. However, if the amount of credit or carryovers of such credit, or both, allowed under this subdivision for any taxable year reduces the tax to such amount, or if any part of the credit or carryovers of such credit may not be deducted from the tax otherwise due by reason of the final sentence in paragraph four hereof, any amount of credit or carryovers of such credit thus not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.

* NB Applies to taxable years beginning on or after January 1, 2001

(h) Empire Zone Capital Credit (ZCC)

(1) A taxpayer shall be allowed a credit against the tax imposed by this article. The amount of the credit shall be equal to twenty-five percent of the sum of the following investments and contributions made during the taxable year and certified by the commissioner of economic development: (A) qualified investments made in, or contributions in the form of donations made to, one or more empire zone capital corporations established pursuant to section nine hundred sixty-four of the general municipal law, (B) qualified investments in certified zone businesses which during the twelve month period immediately preceding the month in which such investment is made employed full-time within the state an average number of individuals, excluding general executive officers, of two hundred fifty or fewer, computed pursuant to the provisions of subparagraph (C) of paragraph two of subsection (g) of this section, except for investments made by or on behalf of an owner of the business, including, but not limited to, a stockholder, partner or sole proprietor, or any related person, as defined in subparagraph (C) of paragraph three of subsection (b) of section four hundred sixty-five of the internal revenue code, and (C) contributions of money to community development projects as defined in regulations promulgated by the commissioner of economic development. "Qualified investments" means the contribution of property to a corporation in exchange for original issue capital stock or other ownership interest, the contribution of property to a partnership in exchange for an interest in the partnership, and similar contributions in the case of a business entity not in corporate or partnership form in exchange for an ownership interest in such entity. The total amount of credit allowable to a taxpayer under this provision for all years, taken in the aggregate, shall not exceed three hundred thousand dollars, and shall not exceed one hundred thousand dollars with respect to the investments and contributions described in each of subparagraphs (A), (B) and (C) of this paragraph.

(2) The credit and carryover of such credit allowed under this subdivision for any taxable year shall not, in the aggregate, reduce the tax due for such year to less than the minimum fixed by paragraph four of subdivision (a) of section fifteen hundred two. However, if the amount of credit or carryovers of such credit, or both, allowed under this subdivision for any taxable year reduces the tax to such amount, or ifany part of the credit or carryovers of such credit may not be deducted from the tax otherwise due by reason of the final sentence of this paragraph, any amount of credit or carryovers of such credit thus not deductible in such taxable year may be carried over to the following year or years and may be deducted from the tax for such year or years. In addition, the amount of such credit, and carryovers of such credit to the taxable year, deducted from the tax otherwise due may not, in the aggregate, exceed fifty percent of the sum of the taxes imposed under sections fifteen hundred one and fifteen hundred ten or the limitation on tax computed pursuant to section fifteen hundred five, whichever is less, computed without regard to any credit provided for under this article.

(3) Where the stock, partnership interest or other ownership interest arising from a qualified investment as described in subparagraphs (A) and (B) of paragraph one of this subdivision is disposed of, the taxpayer's entire net income shall be computed, pursuant to regulations promulgated by the commissioner, so as to properly reflect the reduced cost thereof arising from the application of the credit provided for herein.

(4)(A) Where a taxpayer sells, transfers or otherwise disposes of corporate stock, a partnership interest or other ownership interest arising from the making of a qualified investment which was the basis, in whole or in part, for the allowance of the credit provided for under this subdivision, or where a contribution or investment which was the basis for such allowance is in any manner, in whole or in part, recovered by such taxpayer, and such disposition or recovery occurs during the taxable year or within thirty-six months from the close of the taxable year with respect to which such credit is allowed, subparagraph (B) of this paragraph shall apply.

(B) The taxpayer shall add back with respect to the taxable year in which the disposition or recovery described in subparagraph (A) of this paragraph occurred the required portion of the credit originally allowed

(C) The required portion of the credit originally allowed shall be the product of (i) the portion of such credit attributable to the property disposed of or the payment or contribution recovered and (ii) the applicable percentage.

(D) The applicable percentage shall be: (i) one hundred percent, if the disposition or recovery occurs within the taxable year with respect to which the credit is allowed or within twelve months of the end of such taxable year, (ii) sixty-seven percent, if the disposition or recovery occurs more than twelve but not more than twenty-four months after the end of the taxable year with respect to which the credit is allowed, or (iii) thirty-three percent, if the disposition or recovery occurs more than twenty-four but not more than thirty-six months after the end of the taxable year with respect to which the credit is allowed.

(k) Credit for certain investments in certified capital companies

(1) A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article. The amount of the credit shall be equal to one hundred percent of an investment of certified capital in a certified capital company program made by the taxpayer pursuant to section eleven of this chapter.

(2) Ten percent of such credit shall be allowed in the taxable year to which such investment is allocated pursuant to subdivision (h) of section eleven of this chapter and in each of the nine following taxable years. In addition, in any taxable year subsequent to the taxable year for which such investment is so allocated, any amount carried forward under paragraphs three and four of this subdivision may be carried forward indefinitely until such credits are utilized.

(3) No credit allowable pursuant to this subdivision shall reduce the tax payable under this article to less than the minimum fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article. If, however, the amount of credit allowable under this subdivision for any taxable year reduces the tax to such amount, any amount of credit not taken in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.

(4) If for any taxable year the credit allowable under paragraph two of this subdivision exceeds such minimum tax for such taxable year, then the amount by which such credit exceeds such minimum tax liability shall be carried forward as a credit under paragraph two of this subdivision to the following year or years and may be deducted from the taxpayer's tax for such year or years.

(5) Decertification of a certified capital company from a certified capital company program shall cause the disallowance and the recapture of the credit allowed under paragraph one of this subdivision, as follows:

(A) Decertification of a certified capital company from a certified capital company program within two years of its starting date prior to meeting the requirements of subparagraph (A) of paragraph one of subdivision (c) of section eleven of this chapter shall cause disallowance of one hundred percent of the credit allowed under paragraph one of this subdivision with respect to such certified capital company program and the recapture of any portion of such credit that was previously taken.

(B) Decertification of a certified capital company from a certified capital company program which, having met all requirements of subparagraph (A) of paragraph one of subdivision (c) of section eleven of this chapter, subsequently fails to meet the requirements for continued certification under the provisions of subparagraph (B) of such paragraph one, shall cause the disallowance of eighty-five percent of the credit allowed under paragraph one of this subdivision with respect to such certified capital company program and recapture of any portion of such credit in excess of fifteen percent that was previously taken.

(C) Decertification of a certified capital company from a certified capital company program which, having met all requirements of subparagraphs (A) and (B) of paragraph one of subdivision (c) of section eleven of this chapter, subsequently fails to meet the requirements for continued certification under the provisions of subparagraph (C) of such paragraph one, shall cause the disallowance of seventy percent of the credit allowed under paragraph one of this subdivision with respect to such certified capital company program and the recapture of any portion of such credit in excess of thirty percent that was previously taken.

(D) Decertification of a certified capital company from a certified capital company program pursuant to paragraph two of subdivision (e) of section eleven of this chapter, other than on the grounds of the failure of such certified capital company to meet the requirements of subparagraphs (A), (B) or (C) of paragraph one of subdivision (c) of such section, shall not cause the disallowance of any of the credits allowed under paragraph one of this subdivision with respect to such certified capital company program, nor the recapture of any portion of such credits that was previously taken.

(6) Revocation of certification from a certified capital company program pursuant to subdivision (f) of section eleven of this chapter, before the later of (i) the third anniversary of the certification date of the certified capital company or (ii) the date on which the certified capital company satisfies the requirements of subparagraph (C) of paragraph one of subdivision (c) of section eleven of this chapter, shall cause disallowance of one hundred percent of the credit allowed under paragraph one of this subdivision with respect to such certified capital company program and the recapture of any portion of such credit that was previously taken.

(7) No credit shall be allowed in any tax year in which the taxpayer shall, individually or with or through one or more affiliates, be a managing general partner of or underwrite or control the direction of investments of a certified capital company for which the credit was allowed under paragraph one of this subdivision. This provision shall not preclude a certified investor, insurance company or any other party from exercising its legal rights and remedies (which may include interim management of a certified capital company) in the event that a certified capital company is in default of its statutory obligations or its contractual obligations to such certified investor, insurance company or other party. For purposes of this paragraph, affiliate shall mean a business entity in which the taxpayer holds at least a ten percent beneficial interest.

(8) A certified investor allowed a credit against its state tax liability earned through an investment in a certified capital company shall not be required to pay any additional retaliatory tax levied pursuant to section eleven hundred twelve of the insurance law as a result of claiming such credit.

* (m)

The credits provided for in subdivisions (g) and (h) of this section shall be deducted before any other credits allowable under this article, and the credit provided for in such subdivision (g) shall be deducted after the credit provided for in such subdivision (h). The remaining credits allowable under this section which can be carried over, and carryovers of such credits, shall be deducted after the remaining credits allowable under this section which cannot be carried over. The credits allowed pursuant to subdivisions (a), (c) and (i) of this section shall be deducted after the credit allowed pursuant to subdivision (d) of this section. Credits under subdivisions (g) and (h) of this section may not be deducted from the limitation on tax computed pursuant to section fifteen hundred five of this article.

* NB Effective until January 1, 2002

* (m)(1)

A taxpayer shall be allowed a credit against the tax imposed by this article equal to ten percent of the premium paid during the taxable year for long-term care insurance. In order to qualify for such credit, the taxpayer's premium payment must be for the purchase of a long-term care insurance policy approved by the superintendent of insurance pursuant to section one thousand one hundred seventeen of the insurance law.

(2) In no event shall the credit herein provided for be allowed in an amount which will reduce the tax payable to less than the minimum fixed by subdivision (a) of section fifteen hundred two of this article. If, however, the amount of credit allowable under this subdivision for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.

* NB Effective January 1, 2002

(q) Investment Tax Credit (ITC)

(1) A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article. Provided, however, a taxpayer shall not be allowed such credit provided by this subdivision unless all or a substantial portion of the employees performing the administrative and support functions resulting from or related to the qualifying uses of such equipment are located in this state. The amount of the credit shall be the percent provided for herein below of the investment credit base. The investment credit base is the cost or other basis for federal income tax purposes of tangible personal property and other tangible property, including buildings and structural components of buildings, described in paragraph two of this subdivision, less the amount of the nonqualified nonrecourse financing with respect to such property to the extent such financing would be excludible from the credit base pursuant to section 46(c)(8) of the Internal Revenue Code (treating such property as section thirty- eight property irrespective of whether or not it in fact constitutes section thirty-eight property). If, at the close of a taxable year following the taxable year in which such property was placed in service, there is a net decrease in the amount of nonqualified nonrecourse financing with respect to such property, such net decrease shall be treated as if it were the cost or other basis of property described in paragraph two of this subdivision acquired, constructed, reconstructed or erected during the year of the decrease in the amount of nonqualified nonrecourse financing. In the case of a combined return, the term investment credit base shall mean the sum of the investment credit base of each corporation included on such return. The percentage to be used to compute the credit allowed pursuant to this subdivision shall be five percent with respect to the first three hundred fifty million dollars of the investment credit base, and four percent with respect to the investment credit base in excess of three hundred fifty million dollars.

(2) A credit shall be allowed under this subdivision with respect to tangible personal property and other tangible property, including buildings and structural components of buildings, which are: depreciable pursuant to section one hundred sixty-seven of the Internal Revenue Code, have a useful life of four years or more, are acquired by purchase as defined in section one hundred seventy-nine (d) of the Internal Revenue Code, have a site in this state and are (A) principally used in the ordinary course of the taxpayer's trade or business as a broker or dealer in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of stocks, bonds or other securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, or of commodities as defined in section four hundred seventy-five (e) of the Internal Revenue Code, or (B) principally used in the ordinary course of the taxpayer's trade or business of providing investment advisory services for a regulated investment company as defined in section eight hundred fifty-one of the Internal Revenue Code, or lending, loan arrangement or loan origination services to customers in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code. For purposes of subparagraphs (A) and (B) of this paragraph, property purchased by a taxpayer affiliated with a regulated broker or dealer is allowed a credit under this subdivision if the property is used by its affiliated regulated broker or dealer in accordance with this subdivision.

(3) A taxpayer shall not be allowed a credit under this subdivision with respect to tangible personal property and other tangible property, including buildings and structural components of buildings, which it leases to any other person or corporation except where a taxpayer leases property to an affiliated broker or dealer that uses such property in accordance with subparagraph (A) or (B) of paragraph two of this subdivision. For purposes of the preceding sentence, any contract or agreement to lease or rent or for a license to use such property shall be considered a lease.

(4) Except as otherwise provided in this paragraph, the credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the dollar amount fixed as a minimum tax by subdivision (a) of section one thousand five hundred two of this article. However, if the amount of credit allowable under this subdivision for any taxable year reduces the tax to such amount, any amount of credit allowed for a taxable year may be carried over to the fifteen taxable years next following such taxable year and may be deducted from the taxpayer's tax for such year or years. In lieu of such carryover, any such taxpayer which qualifies as a new business under paragraph seven of this subdivision may elect to treat the amount of such carryover as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding no interest shall be paid there-on.

(5) At the option of the taxpayer an eligible business facility for which a credit is allowed under subdivision (d) of this section may be treated as property (A) principally used in the ordinary course of the taxpayer's trade or business as a broker or dealer in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of stocks, bonds or other securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code, or of commodities as defined in section four hundred seventy-five (e) of the Internal Revenue Code, or (B) principally used in the ordinary course of the taxpayer's trade or business of providing investment advisory services for a regulated investment company as defined in section eight hundred fifty-one of the Internal Revenue Code, or lending, loan arrangement or loan origination services to customers in connection with the purchase or sale (which shall include but not be limited to the issuance, entering into, assumption, offset, assignment, termination, or transfer) of securities as defined in section four hundred seventy-five (c)(2) of the Internal Revenue Code provided the property otherwise qualifies under paragraph two of this subdivision, in which event a credit shall not be allowed under subdivision (d) of this section.

(6) (A) With respect to property which is depreciable pursuant to section one hundred sixty-seven of the Internal Revenue Code but is not subject to the provisions of section one hundred sixty-eight of such code and which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in this subdivision which represents the ratio which the months of qualified use bear to the months of useful life. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of its useful life, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. Provided, however, if such property is disposed of or ceases to be in qualified use after it has been in qualified use for more than twelve consecutive years, it shall not be necessary to add back the credit as provided in this subparagraph. The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio which the months of qualified use bear to the months of useful life. For purposes of this subparagraph, useful life of property shall be the same as the taxpayer uses for depreciation purposes when computing his federal income tax liability.

(B) Except with respect to that property to which subparagraph (D) of this paragraph applies, with respect to three-year property, as defined in subsection (e) of section one hundred sixty-eight of the Internal Revenue Code, which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in this subdivision which represents the ratio which the months of qualified use bear to thirty-six. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of thirty-six months, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio which the months of qualified use bear to thirty-six.

(C) Except with respect to that property to which subparagraph (D) of this paragraph applies, with respect to property subject to the provisions of section one hundred sixty-eight of the Internal Revenue Code, other than three-year property as defined in subsection (e) of such section one hundred sixty-eight which is disposed of or ceases to be in qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in this subdivision which represents the ratio which the months of qualified use bear to sixty. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of sixty months, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio which the months of qualified use bear to sixty.

(D) With respect to any property to which section one hundred sixty- eight of the Internal Revenue Code applies, which is a building or a structural component of a building and which is disposed of or ceases to be in a qualified use prior to the end of the taxable year in which the credit is to be taken, the amount of the credit shall be that portion of the credit provided for in this subdivision which represents the ratio which the months of qualified use bear to the total number of months over which the taxpayer chooses to deduct the property under the Internal Revenue Code. If property on which credit has been taken is disposed of or ceases to be in qualified use prior to the end of the period over which the taxpayer chooses to deduct the property under the Internal Revenue Code, the difference between the credit taken and the credit allowed for actual use must be added back in the year of disposition. Provided, however, if such property is disposed of or ceases to be in qualified use after it has been in qualified use for more than twelve consecutive years, it shall not be necessary to add back the credit as provided in this subparagraph. The amount of credit allowed for actual use shall be determined by multiplying the original credit by the ratio which the months of qualified use bear to the total number of months over which the taxpayer chooses to deduct the property under the Internal Revenue Code.

(E) The amount required to be added back pursuant to this paragraph shall be augmented by an amount equal to the product of such amount and the underpayment rate of interest (without regard to compounding), set by the commissioner pursuant to subsection (e) of section one thousand ninety-six of this chapter, in effect on the last day of the taxable year.

(F) If, as of the close of the taxable year, there is a net increase with respect to the taxpayer in the amount of nonqualified nonrecourse financing (within the meaning of section 46(c)(8) of the Internal Revenue Code) with respect to any property with respect to which the credit under this subdivision was limited based on attributable nonqualified nonrecourse financing, then an amount equal to the decrease in such credit which would have resulted from reducing, by the amount of such net increase, the cost or other basis taken into account with respect to such property must be added back in such taxable year. The amount of nonqualified nonrecourse financing shall not be treated as increased by reason of a transfer of (or agreement to transfer) any evidence of an indebtedness if such transfer occurs (or such agreement is entered into) more than one year after the date such indebtedness was incurred.

(7) For purposes of paragraph four of this subdivision, a new business shall include any corporation, except a corporation which: (A) over fifty percent of the number of shares of stock entitling the holders thereof to vote for the election of directors or trustees is owned or controlled, either directly or indirectly, by a taxpayer subject to tax under this article; section one hundred eighty-three, one hundred eighty-four, one hundred eighty-five or one hundred eighty-six of article nine; article nine-A or article thirty-two of this chapter; or (B) is substantially similar in operation and in ownership to a business entity (or entities) taxable, or previously taxable, under this article; section one hundred eighty-three, one hundred eighty-four, one hundred eight-five or one hundred eighty-six of article nine; article nine-A or article thirty-two of this chapter; article twenty-three of this chapter or which would have been subject to tax under such article twenty-three (as such article was in effect of January first, nineteen hundred eighty) or the income (or losses) of which is (or was) includable under article twenty-two of this chapter whereby the intent and purpose of this paragraph and paragraph four of this subdivision with respect to refunding of credit to new business would be evaded; or (C) has been subject to tax under this article for more than four taxable years (excluding short taxable years) prior to the taxable year during which the taxpayer first becomes eligible for the investment tax credit.

(r) QEZE Credit For Real Property Taxes

(1) Allowance of credit. A taxpayer which is a qualified empire zone enterprise shall be allowed credit for eligible real property taxes, to be computed as provided in section fifteen of this chapter, against the tax imposed by this article.

(2) Application of credit. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the minimum fixed by paragraph four of subdivision (a) of section fifteen hundred two of this article. However, if the amount of credit allowed under this subdivision for any taxable year reduces the tax to such amount, then any amount of credit thus not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section ten hundred eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section ten hundred eighty-eight of this chapter notwithstanding, no interest shall be paid thereon.

(s) QEZE Tax Reduction Credit

(1) Allowance of credit. A taxpayer which is a qualified empire zone enterprise shall be allowed a QEZE tax reduction credit, to be computed as provided in section sixteen of this chapter, against the tax imposed by this article.

* (t)

* NB Effective January 1, 2002