Statutes, codes, and regulations
New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCEChapter I - Franchise and Certain Business TaxesSubchapter A - Business Corporation Franchise TaxPart 5 - CREDITS AGAINST TAX
Subpart 5-1 - INVESTMENT TAX CREDIT
Section 5-1.3 - Meaning of other terms

N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 5-1.3

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Current through Register Vol. 46, No. 45, November 2, 2024
Section 5-1.3 - Meaning of other terms

(Tax Law, section 210-B(1)(b)(ii))

For purposes of the investment tax credit, the following terms have these meanings:

(a) The term "manufacturing" means the process of working raw materials into wares suitable for use or that gives new shapes, new quality or new combinations to matter that already has gone through some artificial process by the use of machinery, tools, appliances and other similar equipment.
(b) The term "property" used in the production of goods includes machinery, equipment or other tangible property that is principally used in the repair and service of other machinery, equipment or other tangible property used principally in the production of goods and includes all facilities used in the production operation, including storage of material to be used in production and of the products that are produced. Since property and equipment used to store raw materials and finished goods are included in the meaning of manufacturing, property and equipment at the raw material warehouse and at the finished goods warehouse of a manufacturer qualify, provided that the property and equipment are principally used in storing the raw materials or finished goods. Property used for transportation of goods during the manufacturing process qualifies.
(c) The term "principally used" means more than 50%. A building or addition to a building is principally used in production where more than 50% of its usable business floor space is used in storage and production. Floor space used for bathrooms, cafeterias and lounges is not usable business floor space. Space used for offices, accounting, sales and distribution is not used in production. Dual purpose machinery is principally used in production when it is used in production more than 50% of its operating time.

N.Y. Comp. Codes R. & Regs. Tit. 20 §§ 5-1.3

Adopted New York State Register December 27, 2023/Volume XLV, Issue 52, eff. 12/27/2023