Articles

QEZE benefits generally unaffected by SMLLC electing “S”-corp status

The New York Department of Taxation and Finance has issued a personal income tax advisory opinion regarding a single-member limited liability company (SMLLC) treated as a disregarded entity for tax purposes.  Specifically, the opinion addresses whether the calculation of the SMLLC’s empire zone tax benefits will be affected if it elects under federal treasury regulations to be taxed as an S corporation.  The opinion concludes that, in general, the calculation of the SMLLC’s empire zone wage tax credit, empire zone investment tax credit, empire zone employment incentive credit, qualified empire zone enterprise real property tax credit, and qualified empire zone enterprise tax reduction credit will not be affected.

NYS Tax Dept. TSB-A-09(14)I