The location of the merchant is presumed to be the address of the merchant shown on the invoice submitted to the taxpayer by the merchant. The term selling concession means the amount paid to the taxpayer for participating in the underwriting of a security where the taxpayer is not the lead underwriter. The term public offering price means the price agreed upon by the taxpayer and the issuer at which the securities are to be offered to the public.

Worksheet A: Gross proceeds factors and net gains: Form CT-3, Part 6, lines 10, 12, 21, and 24

When you have net gains from sales of more than one type of other financial instruments, use separate lines 30.1 to report sales of all other financial instruments of each such type. If you did not elect the 8% fixed percentage method, use the customer-based sourcing rule below to source all marked to market net gains for all financial instruments. When the 8% fixed percentage method is elected (the box on Part 6, line 8, is marked), and the QFI box on line 11 is marked, use that method for all financial instruments to be reported on this line. A marked qualified financial instrument (QFI) box does not indicate which method of sourcing (8% fixed percentage method or customer-based sourcing rule) is being used to apportion such instruments. If you do not mark the box but still apportion qualified financial instrument receipts by 8%, you will be considered to have made the election and to have marked the box.

For each line for which column C is not equal to zero, if the combined group did not have actual everywhere sales that generated a net gain for the same specific type of financial instrument described on that line (as determined in substep 6.1.2), leave column B, row b, subcolumn J(ii) blank for that line. However, for all lines 30, the combined group had actual everywhere sales that generated a net gain for that type of financial instrument if you reported an amount greater than zero on the Worksheet B, column D, line 30.1 used to report the same specific type of financial instrument. For each line for which column C is not equal to zero, determine if the combined group has actual everywhere sales that generated a net gain during the tax year for that type of financial instrument. In column C of lines 10, 12, 16, 18, 20, 21, 23, 24, 27, and all lines 30, enter the sum of all the amounts entered in each entity’s column A, row a (Everywhere), for each line; however, if the resulting combined total is less than or equal to zero for any such line, enter 0 for column C.

  • Form CT-223, Innovation Hot Spot Deduction, must be filed if you are a corporation that is a qualified entity located both inside and outside a hot spot, or you are a corporate partner of a qualified entity, or both.
  • If Form CT-3, Part 6, line 8 box is not marked, leave lines 30.3, 30.4, and 30.5 blank and continue with Totals of Parts 1 and 2 instructions below; otherwise, continue with Step 1 below.
  • Parts 4 and 6 provide a column A for the designated agent, and a column B to report the totals for all other combined members.
  • You may apply an overpayment to your next state franchise tax period, or to your MTA surcharge for this period, or you may have it refunded.

If you mark the box, you must attach a statement explaining why you have no receipts required to be included in the business apportionment factor. If you have no receipts required to be included in the denominator of the apportionment factor, you must mark the box at the beginning of Form CT-3, Part 6, Calculation of business apportionment factor. This part calculates the amount of investment capital that is excluded from, or added back to, the tax on the capital base and is reported on Part 4, lines 8 and 10. If you are not required to complete the balance sheet on your federal tax return, use the amount that would have been reported on the federal return.

Payment due, or overpayment to be credited or refunded

All business corporations that have elected to be treated as a New York S corporation by filing Form CT-6, Election by a Federal S Corporation to be Treated as a New York S Corporation, or are a mandated New York S corporation, must file Form CT-3-S, New York S Corporation Franchise Tax Return, instead of Form CT-3 or Form CT-3-A. It includes a variety of topics about how to fill out your form (for example, entry formats and third-party designee), filing and payment information (such as when CT-200-V is required), collection options that we may take, tax shelter information, and your rights under the Tax Law. Enter the amount of those tax credits being claimed on Part 2, line 3, against your current year’s franchise tax that are refund eligible. Do not include any amount of tax credit requested as a refund on Part 2, line 25, or requested as a tax credit to be credited as an overpayment to next year’s return on Part 2, line 26.

Report Fraud

In column B, enter in the J(ii) Total New York State line, the sum of the column B, row b, subcolumn J(ii) amounts. You will need the J(ii) totals (found directly below line 30-Partnership) to calculate the combined New York State aggregate marked to market factor in Part 2, column B of this worksheet, when applicable. If the column C amount you entered is equal to zero for any line, enter 0 in row b, subcolumns J(ii) and J(iii), and row c for that entity, for that line.

Enter 100% of the global intangible low-taxed income that is included in New York State business income in the Everywhere column. If the merchant has locations both within and outside of New York State, only receipts from merchant discounts attributable to sales made from locations within New York State are entered in the New York State column. Report all marked to market net gains on this line for all financial instruments. When a financial instrument type that falls under clause (H) has been marked to market, it does not necessarily cause all financial instruments under clause (H) to be qualified financial instruments.

For more information, see Section A, line 6 instructions. Use the worksheet below to determine the total capital contributions to enter on this line. If you mark the box on line 6, you must provide the information requested on this line. A full-time equivalent employee in New York State includes any employee regularly connected with or working out of an office or place of business of the taxpayer in New York State. For more information, see the instructions on Form TP-588. A taxpayer is principally engaged in the above listed activities if during the tax year more than 50% of its gross receipts are derived from receipts for the sale of goods produced by these activities.

Worksheet B: Net gains and other income: Form CT-3-A and Form CT-3-A/BC, Part 6, line 30 and Worksheet D, line 30

Visit our Corporation tax resource center for the tools you need to manage and maintain your business. This document contains official instructions for Form CT-3 , General Franchise Tax Return – a form released and collected by the New York State Department of Taxation and Finance. If the business is less than three years old, base the average yearly gross receipts on the period the entity has existed.

Sec. 196 also applies general business corporation tax forms current year when an individual taxpayer dies or a corporate taxpayer ceases to exist before the unexpired general business tax credits can be fully utilized. For example, consider a corporation in the restaurant industry that undergoes significant growth over a sustained period of years. It is not uncommon for taxpayers to build up a surplus of general business credits. Under Sec. 39(a)(1), general business credits generated in the current tax year that cannot be utilized due to tax liability limitations are first carried back one year and then forward 20 years, subject to the same limitations in the prior and subsequent years.

Quick guide to completing Form CT-3, General Business Corporation Franchise Tax Return

Attach a statement to your return explaining how you meet each requirement for the exception. Enter the number of the applicable exception (see above) and the amount of royalty payments excluded from entire net income. Enter the number of full-time employees at the end of the tax year. The amount taken into account with respect to any property other than money is the amount equal to the adjusted basis to the taxpayer of such property for determining gain, reduced by any liability to which the property was subject or was assumed by the taxpayer.

Qualified subchapter S subsidiary

  • Complete columns B, C, and D only once on a combined group basis.
  • Form CT-3-M, General Business Corporation MTA Surcharge Return, must be filed by any corporation taxable under Article 9-A that does business, employs capital, owns or leases property, maintains an office, or derives receipts from activity, in the Metropolitan Commuter Transportation District (MCTD).
  • If you are a qualified New York manufacturer based on the significant employment and property test and eligible for the 0% business income base tax rate, the 0% capital base tax rate, and the lower fixed dollar minimum tax amounts, you must mark an X in the box.

For more information, see TSB-M-15(3)C, TSB-M-15(3.1)C, and TSB-M-19(5)C. For more information, see TSB-M-12(9)C, Clarification of Qualifications for Qualified Emerging Technology Company (QETC) Tax Credits. A taxpayer that is a partner in a partnership (a corporate partner) computes its tax for its interest in the partnership using either the aggregate method or entity method, whichever applies. Corporations subject to tax under Tax Law Article 9-A generally must compute three distinct taxes and pay the tax that results in the largest amount owed.

Form DTF-686, Tax Shelter Reportable Transactions Attachment to New York State Return, must be filed to assist taxpayers and persons in complying with New York State’s disclosure requirements. For information about the threshold amount, see Form CT-400-I, Instructions for Form CT-400. Form CT-400, Estimated Tax for Corporations, must be filed if your New York State franchise tax liability can reasonably be expected to exceed a certain threshold. For information about the threshold amount, see Form CT-300-I, Instructions for Form CT-300. Form CT-300, Mandatory First Installment (MFI) of Estimated Tax for Corporations, must be filed to pay the mandatory first installment if your second preceding year’s franchise tax after credits exceeds a certain threshold. Form CT-225, New York State Modifications, must be filed if you are entering an amount on Form CT-3, Part 3, line 2, 4 or both.

Use a separate line 30.1 for net gains from sales of all other financial instruments of each certain type, and use a separate line 30.2 for other income from all other financial instruments of each certain type. For such lines 30.1 and 30.2, row b, follow the applicable line 30 instructions to determine the amount of New York State receipts, except that if the amount is less than zero, enter the negative amount with a minus (-) sign. The amounts entered or calculated in columns B, C, D, and E and in rows a, b, and c, for all lines, are only used for Worksheet A calculations and do not get transferred to any other form or worksheet. In each entity’s column A, for all lines, row d, enter the entity’s Everywhere net gains being reported on each such line.

See 20 NYCRR 1-2.9(b) for exceptions to taxability for alien corporations. See 20 NYCRR 1-2.2 for what subjects foreign corporations to tax. In this case, you must show your 2025 tax year on the 2024 return and take into account any tax law changes that are effective for tax years beginning after December 31, 2024.

Worksheet B: Net gains and other income for line 30 (see instructions)

The entity’s average annual gross receipts during the prior three tax years can’t exceed $50 million. According to the IRS, an eligible small business can be a non-publicly traded corporation, partnership, or sole proprietorship. Taxpayers should add their net income tax and alternative minimum tax.

Form CT-186-E, Telecommunications Tax Return and Utility Services Tax Return, must be filed by a corporation that provides telecommunication services. An exception applies to a qualified entity of a New York State innovation hot spot when the qualified entity is located solely within a hot spot. This form is also used to elect to waive the carryback of a loss in the year a loss is incurred.

In addition, you must mark an X in the Other box on Part 1, Section C, line 1. The amount taken into account with respect to any property other than money is the amount equal to the adjusted basis for the combined group of such property for determining gain, reduced by any liability to which the property was subject or was assumed by the combined group. The corporation must file Form CT-3-S for the New York S short year and Form CT-3 for the New York C short year.