Article: 50527
Overview
The Temporary Deferral Nonrefundable Payout Credit (TDNPC) was created to allow taxpayers to claim previously deferred tax credits that are now eligible to be used under the phased payout schedule adopted by New York State. If you have any nonrefundable tax credits that were deferred in earlier years (under the deferral rules), you may now be allowed to claim the payout portion on your 2024 New York return.
To claim this, you must complete Form IT-501 and attach it to your return (IT-201 or IT-203).
Who Should File Form IT-501?
You should complete Form IT-501 if:
- You are eligible to claim the allowed portion of previously deferred tax credits (from tax years such as 2021, 2022, or 2023),
- The credits were subject to the temporary deferral rules implemented under NYS legislation, and
- You want to apply the current year payout percentage of those credits to reduce your 2024 New York tax liability.
The deferral applies only to certain nonrefundable business tax credits. Examples include:
- Investment Tax Credit (ITC)
- Brownfield Redevelopment Credit
- Empire Zones credits
- Qualified Emerging Technology Credits
Refer to your previously filed Form IT-500 or relevant deferral statements to identify the amounts and types of deferred credits.
How to Report
- Navigate to the State Taxes section on the left-hand side of the screen.
- Click the link: I’d like to see the forms I’ve filled out or search for a form.
- In the dropdown menu, select New York.
- Click on the IT Credits 500 – 600 Series tab.
- Select IT- 501 – Temporary Deferral Nonrefundable Payout Credit to open the screen.
- Enter all applicable information.
- Click Save once complete.
Note: Many fields are override entries. If data flows in from prior forms (e.g., IT-500), only modify it if you are correcting or manually updating amounts.
Additional Resources
For further guidance, see: