Free Form CT-40-I - New York

New York State Department of Taxation and Finance

Instructions for Form CT-40
Claim for Alternative Fuels Credit
Tax Law -- Article 9, Sections 183, 184, 185, 186, and Article 9-A
Important reminder to file a complete return: You must complete all required schedules and forms that make up your return, and include all pages of those forms and schedules when you file. Returns that are missing required pages or that have pages with missing entries are considered incomplete and cannot be processed, and may subject taxpayers to penalty and interest.

CT-40-I

Credit summary information (S corporations do not complete)
Before completing this section, complete Section 1 to compute the amount of credit allowed. Complete Section 2 to recapture credit previously allowed, and Section 3 if you are transferring any credit between affiliates. Line 1 ­ Enter your alternative fuels credit from preceding tax years. Utility and pipeline corporations enter any portion of the alternative fuels credit that was not applied against the tax due under Tax Law sections 183, 184, or 186intaxyearsendingonorbeforeDecember31,1999. Line 2 ­ Enter your alternative fuels credit from line 17. If you have an alternative fuels credit from a partnership, also include on line 2 your distributive share of that credit. Attach a statement showing the name and employer identification number (EIN) of the partnership. Line 3 ­ (Article9-Afilersonly) Enter the amount of alternative fuels credit that you elected to receive from an affiliated corporation from line 24. The affiliateyoureceivethecreditfrommustalsobeanArticle9-Ataxpayerand must consent to transferring the credit (see Section 3). Line 5 ­ Enter the amount of alternative fuels credit that you elect to transfer to an affiliated corporation from line 28. The affiliate you are transferring the credittomustbeanArticle9-Ataxpayerandmustconsenttoreceivingthe credit (see Section 3). Line 8 ­ Subtract line 7 from line 6. Enter the result; show any negative amount with a minus (-) sign. If the result is a negative amount, you have a net-recaptured credit. Enter this amount as a negative, using a minus sign, in the appropriate box of the tax credits section of your franchise tax return.

General information
The Tax Law provides a credit to taxpayers that purchase new alternative fuel vehicle refueling property and place it in service in New York State during the tax year. The credit applies to refueling property that is eligible for the federal alternative fuel vehicle refueling property credit under Internal Revenue Code (IRC) section 30C, but does not include alternative fuel refueling property related to a qualified hybrid vehicle as such vehicle is defined in Tax Law section 606(p)(3)(B). Any unused credit may be carried forward indefinitely. Taxpayers may use Form CT-40 to claim amounts of alternative fuels credit for alternative fuel vehicle refueling property, and to claim remaining carryforwards of unused amounts of credit for electric vehicles, clean-fuel vehicle property, clean-fuel vehicle refueling property, and qualified hybrid vehicles. Do not complete this form if the property is disposed of or ceases to qualify in the same year it is placed in service. No credit is available because the entire credit allowed must be recaptured. New York S corporations: Any amount of alternative fuels credit that originates in a New York S year flows through to the individual shareholders of the New York S corporation under Article 22, and cannot be applied against the New York State corporation franchise tax in a New York S year. Therefore, do not complete lines 1 through 15, the Credit summary information of Form CT-40. Complete Section 1 and transfer the line 17 amount to Form CT-34-SH, New York S Corporation Shareholders' Information Schedule. Provide shareholders with their share of the credit. Also, complete Section 2 if applicable and transfer the line 20 amount to Form CT-34-SH. Provide shareholders with their share of the recaptured credit. However, if you are recapturing a credit amount originated in a New York C year, include any of these amounts on the applicable line of your S corporation franchise tax return. No credit or carryover of credit allowed in a New York C year may be carried over to a New York S year, and no credit or carryover of credit allowed in a New York S year may be carried over to a New York C year.

Lines 9 and 12 entries table
If you filed Forms CT-183 and CT-184 Form CT-185 Form CT-186 Form CT-3 Form CT-3-A Enteronline9theamount from Line 4 of Form CT-183 plus the amount from line 3 or 4 of Form CT-184 Line 6 Line 5 Line 78 Line 77 Enter on line 12 the limitation tax below 75

10 125 Amount from line 81 Amount from line 80

Line 9 ­ Enter your franchise tax due before credits using the Lines 9 and 12 entries table. Line 10 ­ If you are claiming more than one tax credit for this year, enter the amount of credits claimed before applying this credit. Otherwise, enter 0. Tax credits must be applied in a certain order. Refer to the instructions of your franchisetaxreturntodeterminetheorderofcreditsthatapplies.Article9-A filers: refer to Form CT-600-I, Instructions for Form CT-600, for the order of credits. If filing as a member of a combined group, include any amount of tax credit(s), including alternative fuels credit(s) being claimed by other members of the combined group, that you wish to apply before your alternative fuels credit. Line 12 ­ Enter the appropriate limitation for the form you are filing using the Lines 9 and 12 entries table. Line 14 ­ Enter the lesser of line 13 or line 8. For corporations taxable underArticle9sections183and184,thecreditusedisfirstappliedagainst the tax imposed under section 183. The credit may not reduce the tax under section 183 below the minimum tax of $75. Any excess is then applied against the tax imposed by section 184. For section 185 and 186 filers, the credit used may not reduce the tax below the minimum tax of $10 or $125 respectively.ForcorporationstaxableunderArticle9-A,thecreditusedmay not reduce the tax below the tax on minimum taxable income or the fixed dollar minimum tax, whichever is higher. Enter the amount from line 14 in the appropriate box of the tax credits section of your franchise tax return.

Eligibility
The following taxpayers are eligible to claim the newly extended credit for alternative fuel vehicle refueling property: · GeneralbusinesscorporationstaxableunderArticle9-A. · TransportationandtransmissioncorporationstaxableunderArticle9 sections 183 and 184. · CooperativeagriculturalcorporationstaxableunderArticle9section185.

Leased property
Taxpayers that acquire property for use in their leasing business, and not for resale, may qualify for the New York State credit if the property qualifies for a federal credit.

Credit amount
You may claim 50% of the cost of qualified new alternative fuel vehicle refueling property as a credit. There is no credit limit on qualified alternative fuel vehicle refueling property. To qualify for the credit, the property must be placed in service during the tax year and used more than 50% of the time in a trade or business located in New York State.

Specific instructions
Complete the beginning and ending tax period boxes in the upper right corner on the front of the form.

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CT-40-I (2008)

Section 1 -- Credit for alternative fuel vehicle refueling property
Line 16 ­ Enter the cost of qualified alternative fuel vehicle refueling property placed in service in New York State during the tax year for which a credit is allowed under IRC section 30C.

Section 2 -- Computation of credit recapture on alternative fuel vehicle refueling property
If recapture is required, enter in column A the tax year the credit was originally allowed. Enter in column B the total recovery period (depreciable life) of the property. Enter in column C the number of years the property was in service prior to the recapture year. To compute the recapture percentage in column E, divide column D by columnB.TocomputethecreditrecaptureamountincolumnG,enterthe original credit allowed in column F and multiply it by the column E recapture percentage. Recapture is required if alternative fuel vehicle refueling property ceases to qualify at any time before the end of its recovery period (depreciable life). Alternative fuel vehicle refueling property ceases to qualify if: (1) The property no longer qualifies as property described in IRC section 30C; or (2) 50% or more of the use of the property in a tax year is other than in a trade or business in New York State; or (3) The taxpayer receiving the credit sells or disposes of the property and knows or has reason to know that the property will be used in a manner described in (1) or (2). Line 19 ­ You must obtain this information from your partnership. Attach a statement showing the name and employer ID number (EIN) of the partnership.

Section 3 -- Election to transfer credits (Article 9-A taxpayers only)
Article9-Ataxpayersmayelecttotransfertheiralternativefuelscredittoan Article9-Aaffiliate.Forpurposesofthiscredit,anaffiliatemeans: · Aparentcorporation,wheretheparentownsorcontrols,directlyor indirectly, 80% or more of the taxpayer's capital stock; · Asubsidiarycorporation,wherethetaxpayerownsorcontrols,directlyor indirectly, 80% or more of the subsidiary's capital stock; or · Abrother-sistercorporation,wherethesameinterestsownorcontrol, directly or indirectly, 80% or more of both the corporation's and the taxpayer's capital stock. Both the transferor (affiliate transferring the credit) and the transferee (affiliate receiving the credit) must consent to the election. Once the election is made, the credit becomes a credit of the transferee. The transferee is responsible for any credit recapture if the transferor disposes of the property, or if the transferor's property on which the credit was allowed ceases to qualify. All credit transfers must be made on a vehicle-by-vehicle (or refueling property) basis. Taxpayers must keep adequate records of all vehicles and property that are the basis for any transferred credit(s).

Part A -- Alternative fuels credits received from affiliates
Enter the amount of alternative fuels credits received from affiliated Article9-Ataxpayers.Includethetransferoraffiliate'staxyearinwhichthe credit arose, the name and EIN of the transferor, and the total amount of credits you are receiving.

Part B -- Alternative fuels credits transferred to affiliates
Enter the amount of alternative fuels credits transferred to affiliated Article9-Ataxpayers.Includeyourtaxyearinwhichthecreditarose,the name and EIN of the transferee, and the total amount of credits you are transferring.