New York · Manufacturing / Investment · NY-ITC-001
Investment Tax Credit
Publication revised September 24, 2026. Sourcebook page 204.
Credit amount / calculation
Credit percentage varies by taxpayer/investment amount; property generally must have a useful life of four years or more and be used in qualifying production.
Business fit and eligible activity
Broad statutory credit for manufacturers investing in qualifying New York depreciable property. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Eligibility and practical use
This is the kind of credit that can matter to a capital-intensive mill even when the project adds only a handful of jobs. Logging equipment deserves a separate eligibility check because mobile harvesting property may be treated differently from machinery used at a manufacturing site.
Illustrative business benefit
A sawmill is replacing a headrig and adding scanning, material handling, and electrical controls in a project of roughly $1.20 million. The credit calculation would be based only on the costs the program recognizes as qualified investment. Before issuing purchase orders, the mill should obtain a written view on whether installation, electrical work, used equipment, and software are included.
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Get a written answer on which property is qualified - especially buildings, installation, software, used equipment, vehicles, and mobile machinery.
Official sources
- tax.ny.gov — Investment tax credit (ITC) (tax.ny.gov)
Related programs
Brownfield Redevelopment Tax Credit
Multiple credit components based on qualified cleanup
Certified brownfield projects can receive substantial site-preparation and tangible- property credits.
Employment Incentive Credit
Additional credit tied to investment tax credit property
Businesses that qualify for investment tax credit and increase employment training; where the program also requires investment, satisfy both tests.
Excelsior Jobs Program Credits
Multiple refundable components under an Empire State
Large/strategic manufacturing expansions can receive refundable credits for jobs, investment and research and development.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.