Form DTF-622: Claim for QETC Capital Tax Credit (2026)
Last reviewed: 2025-10-29
Use the New York Tax Form Calculator Form DTF-622 — Claim for Qualified Emerging Technology Company (QETC) Capital Tax Credit as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 New York state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.
Form DTF-622 enables taxpayers (individuals, corporations, partnerships, trusts, estates) who make qualified investments in a certified Qualified Emerging Technology Company (QETC) Capital Tax Credit to claim a New York State tax credit under Tax Law §606(r) and §210.12-F. The credit is computed based on the amount of the investment and the length of time the investment is held: 10% if held at least 4 years, 20% if held at least 9 years.
Before claiming the credit, ensure the company is certified as a QETC by the New York State Department of Taxation and Finance using Form DTF-620; without certification no credit can be claimed.
- Eligible taxpayers: Corporations subject to Article 9-A, individuals subject to Article 22, partnerships, S-corporations, trusts, or estates that invest in a certified QETC and hold qualified investments for the minimum holding period.
- Qualified investments: A contribution of property (cash or other property) to a certified QETC in exchange for original issue stock, partnership interest, or an ownership interest in the entity. Investments by related persons (e.g., >10% owners) generally disqualify. The investor must certify that the investment will not be sold, transferred, or disposed of within the relevant holding period (4 or 9 years).
- Credit amount: The credit equals 10% of the qualified investment if held at least 4 years, or 20% of the qualified investment if held at least 9 years. The credit is claimed in the year the investment is made and the holding-period certification is included.
- Carry-forward and limitations: The credit can reduce tax liability, subject to entity-type limitations (for example, Article 9-A taxpayers cannot reduce below the fixed-dollar minimum tax). Unused portions may be carried forward according to the instructions of Form DTF-622.
- Documentation: Retain certification of QETC status, investment agreement, purchase/acquisition details, date of investment, and any certification that investment will be held the prescribed period. Consistent documentation is critical for audit defense.
| File this form with corporation franchise tax return Form CT-3, CT-3-A, CT-3-S, or personal income tax return Form IT-201, IT-203, IT-204, or IT-205. | ||||||
| A | ||||||
| Schedule A – Computation of credit | ||||||
| Part 1 – Computation of credit for qualified investments to be held four years (Attach additional sheets if necessary.) | ||||||
| A Name of certified QETC | B EIN | C Date of investment | D Amount of investment | |||
| 1 | 1 | |||||
| 2 | 2 | |||||
| 3 | 3 | |||||
| Part 2 – Computation of credit for qualified investments to be held nine years (Attach additional sheets if necessary.) | ||||||
| A Name of certified QETC | B EIN | C Date of investment | D Amount of investment | |||
| 4 | 4 | |||||
| 5 | 5 | |||||
| 6 | 6 | |||||
| Schedule B – Limitations of QETC capital tax credit | ||||||
| Part 1 – Fifty percent limitation | ||||||
| 7 | 7 | |||||
| 8 | 8 | |||||
| Part 2 – $/$ limitation | ||||||
| A – Qualified investments to be held at least 4 years | B – Qualified investments to be held at least 9 years | |||||
| 9 | Limitation per section 210-B.8 | 9 | 9 | |||
| 10 | Limitations per section 606(r) (see instructions) | 10 | 9 | |||
| 11 | QETC capital tax credit previously allowed, less any previous recapture | 11 | 9 | |||
| 12 | QETC capital tax credit still allowable (subtract line 11 from line 9 or line 10) | 12 | 9 | |||
| 13 | QETC capital tax credit allowable this year (see instructions) | 13 | 9 | |||
| 14 | Total QETC capital tax credit available this year (add line 13, columns A and B) | 14 | ||||
| Part 3 – Credit limitation | ||||||
| 15 | 15 | |||||
| 16 | 16 | |||||
| 17 | 17 | |||||
| 18 | 18 | |||||
| 19 | 19 | |||||
| Schedule C – Recapture of credit (see instructions) | ||||||
| Part 1 – Recapture of credit for qualified investments to be held four years (Attach additional sheets if necessary.) | ||||||
| A Tax year QETC capital tax credit originally allowed | B Amount of QETC capital tax credit originally allowed | C Recapture percentage (see instructions) | D Recapture of credit (column B × column C) | |||
| % | ||||||
| % | ||||||
| 20 | 20 | |||||
| Part 2 – Recapture of credit for qualified investments to be held nine years (Attach additional sheets if necessary.) | ||||||
| A Tax year QETC capital tax credit originally allowed | B Amount of QETC capital tax credit originally allowed | C Recapture percentage (see instructions) | D Recapture of credit (column B × column C) | |||
| % | ||||||
| % | ||||||
| 21 | 21 | |||||
| 22 | 22 | |||||
| Schedule D – Computation of QETC capital tax credit and carryover | ||||||
| 23 | 23 | |||||
| 24 | 24 | |||||
| 25 | 25 | |||||
| 26 | 26 | |||||
| 27 | 27 | |||||
| 28 | 28 | |||||
| 29 | 29 | |||||
| 30 | 30 | |||||
How to Compute the QETC Capital Credit
Step 1 – Verify the entity is certified as a QETC using Form DTF-620 before the investment date. Step 2 – Determine your qualified investment amount (cash or property contributed). Step 3 – Choose the holding period election: 4-year election (10 % rate) or 9-year election (20 % rate). Enter the amount on Form DTF-622, along with the certification statement that you will retain the investment for the elected period.
Example: You invest $50,000 in a certified QETC on 15 March of the tax year. You elect the 9-year holding period. Your credit = $50,000 × 20% = $10,000. You complete Form DTF-622 and file it with your return, attaching the certification and investment documentation.
Step 4 – Transfer the credit amount to the applicable tax return form: IT-201, IT-203, CT-3 or CT-3-S, etc., per instructions. If you are a shareholder or partner, the pass-through entity must allocate the credit and you must report your share on your individual return.
Audit risk areas include: investor’s related-person status, failure to hold the investment for the elected period, claiming a credit when the QETC certification was not valid at investment date, or mis-reporting basis or holding period. Ensure your file supports these items.
Last reviewed: 2025-10-29: If you believe this form requires an update, please contact us.
Planning & Compliance Strategy
If you anticipate heavy tax liability in future years, align your investment timing to coincide with a QETC certification and election of the higher 20% rate. Make the holding-period election early and document it contemporaneously.
Strategically coordinate the investment with other tax-credit planning (for example, employ the QETC employment credit under Form DTF-621 in early growth years). Maintain separate ledgers for each investment, track holding-period deadlines, and monitor any changes in shareholder/partner ownership that could trigger forfeiture or recapture.
Before disposition of the investment (even if held the full period), consult your tax adviser to assess tax impact. Sale or conversion before the holding period ends typically results in recapture of the credit and interest/penalties. Early exit planning or transfers should be assessed against credit recapture risk.
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Frequently Asked Questions
Does IT-203-ATT replace IT-112-R or IT-112-C?
No. Those forms calculate credits for taxes paid to other jurisdictions, and their totals are then entered onto IT-203-ATT where indicated.
How much income can be excluded on IT-221?
You may exclude up to $5,000 ($10,000 for joint filers) of qualifying disability income, reduced by any NY pension or annuity exclusion previously claimed.
Can part-owners of a property claim IT-119?
Yes — if the notice issued reflects the property key and entity ownership, each owner must enter their share of the underpayment on IT-119 and may attach separate forms as required.
Can I use IT-203-B to claim the NY College Tuition Deduction?
Yes. Part 2 of IT-203-B calculates the allowable college tuition itemized deduction or credit, depending on your AGI and tuition amounts paid.
Are HSA contributions deductible for New York tax?
No—unlike the federal system, New York does not allow an HSA deduction.
Important Notes
All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.