New York Form IT-261, officially titled Claim for Empire State Film Post-Production Credit, is a tax form used by eligible taxpayers to calculate and claim a credit for qualifying film post-production activities under Sections 31 and 606(qq) of New York Tax Law. The form allows taxpayers to report the amount of Empire State Film Post-Production Credit available for the 2021 tax year, account for credit allocations received through partnerships, S corporations, estates, or trusts, include eligible credits carried forward from previous years, and determine the refundable and nonrefundable portions of the credit. It also provides sections for reporting credit allocations among business entities and beneficiaries. The form is relevant to individuals, partnerships, New York S corporations, estates, and trusts that qualify for or receive an allocation of the credit. It collects the taxpayer’s name, identification number, certified credit certificate information, prior-year credit amounts, applicable tax liability information, and details about allocated credits. The first part calculates the available credit and determines how much can be claimed or carried forward. The second part identifies partnerships, S corporations, estates, and trusts that allocate credit amounts to partners, shareholders, or beneficiaries. The third part records the distribution of credit among beneficiaries and the fiduciary. The fourth part identifies the amounts of credit designated for future tax years, specifically 2022 and 2023. Taxpayers claiming the credit must generally submit Form IT-261 with Form IT-201, IT-203, IT-204, or IT-205, depending on their filing status. A copy of the tax credit certificate issued by the Governor’s Office of Motion Picture & Television Development must also be submitted as required by the form. Completing Form IT-261 accurately is important because the credit is subject to allocation rules, tax liability limitations, refundable and nonrefundable calculations, and carryforward provisions. The completed form helps determine the total credit available, the amount allocated to other eligible parties, the credit that can be used during the current year, and the amount remaining for future tax years.
How To File Form IT-261
Form IT-261 must be submitted with the appropriate New York State tax return. The applicable return depends on whether the taxpayer is an individual, partnership, or fiduciary.
The form requires information from the tax credit certificate, previous credit records, the taxpayer’s income tax return, and any relevant partnership, shareholder, or beneficiary allocation information.
Where to File Form IT-261
Submit Form IT-261 with one of the following New York tax returns:
- Form IT-201: New York State Resident Income Tax Return.
- Form IT-203: New York State Nonresident and Part-Year Resident Income Tax Return.
- Form IT-204: Partnership Return.
- Form IT-205: Fiduciary Income Tax Return.
The appropriate return depends on the taxpayer’s filing status and the way the credit is being claimed or allocated.
What Information to Prepare Before Completing Form IT-261
Gather the following information before starting the form:
- Taxpayer’s name as shown on the applicable tax return.
- Taxpayer identification number.
- Empire State Film Post-Production Credit certificate issued by the Governor’s Office of Motion Picture & Television Development.
- Credit amount available for the 2021 tax year.
- Partner, shareholder, or beneficiary share of the credit, if applicable.
- Unused credits available from previous tax years.
- Relevant income tax information from Form IT-201, IT-203, or IT-205.
- Other credits claimed during the tax year.
- Nonrefundable and refundable credit information.
- Partnership, S corporation, estate, or trust names and identification numbers.
- Credit allocation information for partners, shareholders, and beneficiaries.
- Previous credit carryforward information.
- Amounts designated for the 2022 and 2023 tax years.
Having these records available will help ensure that the credit calculations and allocations are completed accurately.
How To Complete Form IT-261
Form IT-261 contains four main parts:
- Part 1: Computation of Credit.
- Part 2: Partnership, New York S Corporation, and Estate and Trust Information.
- Part 3: Beneficiary’s and Fiduciary’s Share of Empire State Film Post-Production Credit.
- Part 4: Amount of Credit to Be Claimed in Succeeding Tax Years.
Begin by entering the taxpayer’s identifying information, then complete each part according to the applicable credit and allocation circumstances.
Taxpayer Identification Information
The top section of Form IT-261 identifies the taxpayer claiming the Empire State Film Post-Production Credit.
Name(s) as Shown on Return
Enter the taxpayer’s full name exactly as it appears on the corresponding New York tax return.
For joint filers, use the names reported on the applicable return.
Taxpayer Identification Number
Enter the taxpayer identification number associated with the tax return.
Use the appropriate identification number shown on Form IT-201, IT-203, IT-204, or IT-205.
Part 1: Computation of Credit
Part 1 calculates the Empire State Film Post-Production Credit available for the 2021 tax year.
It includes the original credit certificate amount, allocated credits, prior-year credits, other credits, and calculations used to determine the refundable and nonrefundable portions.
Line 1: Empire State Film Post-Production Credit
Enter the amount of Empire State Film Post-Production Credit supported by the tax credit certificate issued by the Governor’s Office of Motion Picture & Television Development.
A copy of the certificate must be submitted with the form as required.
Use the certified credit amount when completing this line.
Line 2: Amount of Credit From Line 1 Available for the 2021 Tax Year
Enter the portion of the credit reported on Line 1 that is available for the 2021 tax year.
The entire certificate amount may not necessarily be available for the current year.
Determine the applicable amount using the instructions for Form IT-261.
Line 3: Partner, Shareholder, Beneficiary Share of Credit From Part 2, Line 19
Enter the taxpayer’s allocated share of the Empire State Film Post-Production Credit reported on Part 2, Line 19.
This line applies when the taxpayer receives a credit allocation through a partnership, New York S corporation, estate, or trust.
Use the applicable allocation information to determine the amount belonging to the taxpayer.
Line 4: Credits Available From Prior Years
Enter any unused Empire State Film Post-Production Credits available from previous tax years.
Use the applicable prior-year credit records and the instructions for Form IT-261 to determine the amount eligible for the 2021 tax year.
Line 5: Add Lines 2, 3, and 4
Add the amounts reported on Lines 2, 3, and 4.
Enter the combined amount on Line 5.
Calculation:
Line 5 = Line 2 + Line 3 + Line 4.
This amount represents the total credit available before accounting for beneficiary allocations.
Line 6: Fiduciary – Amount of Credit Allocated to Beneficiaries
This line applies to fiduciaries.
Enter the amount of credit allocated to beneficiaries from Part 3, Column C.
Use the total credit amount distributed to beneficiaries as reported in the beneficiary allocation section.
Line 7: Total Empire State Film Post-Production Credit
Subtract the amount reported on Line 6 from the amount on Line 5.
Enter the resulting amount on Line 7.
Calculation:
Line 7 = Line 5 − Line 6.
For partnerships, enter the Line 7 amount and code 356 on Form IT-204, line 147.
All other taxpayers should continue to Line 8.
Line 8: Tax Amount From the Applicable Income Tax Return
Enter the amount from the appropriate line of the taxpayer’s New York income tax return.
Use the following instructions:
- Form IT-201 filers: Enter the amount from line 39.
- Form IT-203 filers: Enter the amount from line 46.
- Form IT-205 resident fiduciaries: Enter the amount from line 8.
- Form IT-205 nonresident or part-year resident fiduciaries: Enter the amount from line 9.
Select the applicable amount based on the taxpayer’s filing status.
Line 9: Other Specified Credits or Addbacks
Enter the applicable amount from the corresponding additional credit or addbacks information.
Use the following instructions:
- Form IT-201 filers: Enter the amount from Form IT-201-ATT, line 21.
- Form IT-203 filers: Enter the amount from Form IT-203-ATT, line 20.
- Form IT-205 filers: Enter any credits shown on line 1 of the Addbacks worksheet in the instructions for Form IT-205, line 12.
Use the amount applicable to the taxpayer’s return.
Line 10: Add Lines 8 and 9
Add the amounts reported on Lines 8 and 9.
Enter the combined amount on Line 10.
Calculation:
Line 10 = Line 8 + Line 9.
This amount is used in the subsequent credit calculation.
Line 11: Other Credits
Enter the amount of other credits applicable to the taxpayer under the instructions for Form IT-261.
This line accounts for other tax credits that must be considered when determining the available Empire State Film Post-Production Credit.
Consult the applicable instructions to identify which credits should be included.
Line 12: Subtract Line 11 From Line 10
Subtract the amount reported on Line 11 from the amount on Line 10.
Enter the resulting amount on Line 12.
Calculation:
Line 12 = Line 10 − Line 11.
This amount is used in determining the credit available for the current tax year.
Line 13: Nonrefundable Portion of Credit
Enter the nonrefundable portion of the Empire State Film Post-Production Credit.
Determine the applicable amount using the instructions for Form IT-261.
The nonrefundable portion represents the part of the credit treated as nonrefundable under the applicable credit calculation.
Line 14: Subtract Line 13 From Line 7
Subtract the amount on Line 13 from the amount on Line 7.
Enter the resulting amount on Line 14.
Calculation:
Line 14 = Line 7 − Line 13.
This amount is used in calculating the refundable portion and future credit carryforward.
Line 15: Multiply Line 14 by 50% (.5)
Multiply the amount reported on Line 14 by 50%, or 0.5.
Enter the resulting amount on Line 15.
Calculation:
Line 15 = Line 14 × 0.50.
This amount is used in the subsequent refundable credit and carryforward calculations.
Line 16: Unused Credit From 2020 Carryover
Enter any unused Empire State Film Post-Production Credit carried forward from 2020, if applicable.
Use the previous year’s credit records and the instructions for Form IT-261 to determine the amount available.
If there is no applicable 2020 carryover, follow the form instructions for completing this line.
Line 17: Refundable Portion of Credit
Enter the refundable portion of the Empire State Film Post-Production Credit.
Determine the appropriate amount using the instructions for Form IT-261.
This line identifies the portion of the credit treated as refundable under the applicable calculation rules.
Line 18: Amount of Credit to Be Carried Forward to Next Year
Subtract the amount reported on Line 15 from the amount on Line 14.
Enter the resulting amount on Line 18.
Calculation:
Line 18 = Line 14 − Line 15.
The form identifies this amount as the credit available to be carried forward to the next tax year.
Part 2: Partnership, New York S Corporation, and Estate and Trust Information
Part 2 collects information about the partnerships, New York S corporations, estates, and trusts associated with the Empire State Film Post-Production Credit.
This section is used to identify the entities through which credit amounts are allocated to partners, shareholders, or beneficiaries.
The form provides four columns.
Column A: Name of Entity
Enter the full name of the partnership, New York S corporation, estate, or trust associated with the credit allocation.
Use the entity’s legal name so that the allocation can be correctly identified.
Column B: Type
Enter the appropriate entity classification using the codes specified on the form:
- P: Partnership.
- S: New York S corporation.
- ET: Estate or trust.
Use the correct code for each entity listed.
Column C: Employer Identification Number
Enter the Employer Identification Number (EIN) of the partnership, S corporation, estate, or trust.
Use the entity’s correct federal identification number.
Column D: Share of Current Year’s Credit
Enter the amount of the current year’s Empire State Film Post-Production Credit allocated to the applicable partner, shareholder, or beneficiary through the entity.
Report each allocation in its corresponding row.
If there are more entities than the available spaces, additional sheets may be used to provide the necessary information.
Line 19: Total Credit Amount for Current Year
Add together all amounts reported in Column D.
Include amounts reported on any additional sheets.
Enter the combined total on Line 19 and transfer the same amount to Line 3 in Part 1.
Calculation:
Line 19 = Total of all Column D amounts.
This amount represents the total current-year credit allocated through the entities listed in Part 2.
Part 3 is used to report the allocation of the Empire State Film Post-Production Credit between beneficiaries and the fiduciary.
This section is particularly relevant to estates and trusts that distribute credit amounts to beneficiaries.
The form provides three columns for identifying beneficiaries and reporting their allocated shares.
Column A: Beneficiary’s Name
Enter the beneficiary’s name exactly as shown on Form IT-205, Schedule C.
Use the same name reported on the fiduciary’s tax return to ensure that the allocation is properly identified.
Column B: Identifying Number
Enter the beneficiary’s identifying number.
Use the appropriate taxpayer identification number associated with the beneficiary.
Column C: Share of Current Year’s Credit
Enter the amount of the current year’s Empire State Film Post-Production Credit allocated to each beneficiary.
Report the credit share separately for each beneficiary.
The amounts should reflect the applicable allocation of the current-year credit.
Total Row
Add together the credit amounts reported in Column C for all beneficiaries.
Enter the combined amount in the Total row.
This amount represents the total credit allocated to beneficiaries and is used on Line 6 of Part 1.
Fiduciary Row
Enter the portion of the current year’s Empire State Film Post-Production Credit allocated to the fiduciary.
This identifies the credit amount remaining with the fiduciary rather than being allocated to beneficiaries.
Make sure the beneficiary and fiduciary allocations are properly recorded in the appropriate rows.
Part 4: Amount of Credit to Be Claimed in Succeeding Tax Years
Part 4 identifies the amounts of Empire State Film Post-Production Credit designated for future tax years.
The 2021 form provides separate lines for the 2022 and 2023 tax years.
Line 20: Amount of Credit to Be Claimed for 2022
Enter the amount of Empire State Film Post-Production Credit to be claimed for the 2022 tax year.
Use the applicable credit allocation and carryforward information to determine the amount.
Line 21: Amount of Credit to Be Claimed for 2023
Enter the amount of Empire State Film Post-Production Credit to be claimed for the 2023 tax year.
Report the amount designated for that future tax year based on the applicable credit information and instructions.
Additional Filing Considerations
Before submitting Form IT-261, taxpayers should understand several important requirements involving the credit certificate, entity allocations, beneficiary distributions, and future-year credit amounts.
Credit Certificate Requirement
Line 1 requires information from the Empire State Film Post-Production Credit certificate issued by the Governor’s Office of Motion Picture & Television Development.
A copy of the certificate must be submitted with the form as required.
Make sure the credit amount reported on the form is consistent with the certificate and the applicable tax-year allocation.
Partnership and S Corporation Credit Allocations
Part 2 identifies partnerships, New York S corporations, and estates or trusts associated with the credit.
The form requires each entity’s name, entity classification, EIN, and share of the current year’s credit.
The total allocated amount on Line 19 must also be entered on Line 3 in Part 1.
Partnerships must report the Line 7 amount and code 356 on Form IT-204, line 147.
Estate and Trust Beneficiary Allocations
Part 3 provides a separate reporting section for beneficiaries and the fiduciary.
Beneficiary names must match the information shown on Form IT-205, Schedule C.
The total beneficiary allocation is transferred to Line 6 in Part 1.
Credit Carryforward
Line 18 calculates the amount of credit to be carried forward to the next year.
Line 16 separately accounts for unused credit carried forward from 2020, when applicable.
Part 4 identifies the amounts of credit to be claimed in 2022 and 2023.
Ensure that the amounts reported for different tax years are consistent with the applicable credit records and instructions.
Final Review Before Filing
Before submitting Form IT-261 with the applicable New York tax return, review all taxpayer information, credit calculations, entity allocations, and carryforward amounts.
Use the following checklist:
- Enter the taxpayer’s name exactly as shown on the tax return.
- Enter the correct taxpayer identification number.
- Obtain the Empire State Film Post-Production Credit certificate.
- Attach a copy of the certificate as required.
- Enter the certified credit amount on Line 1.
- Determine the amount available for the 2021 tax year on Line 2.
- Enter any applicable partner, shareholder, or beneficiary credit allocation on Line 3.
- Enter eligible prior-year credits on Line 4.
- Calculate the combined credit on Line 5.
- Enter the beneficiary allocation from Part 3, Column C, on Line 6 when applicable.
- Calculate the total credit on Line 7.
- Transfer the Line 7 amount and code 356 to Form IT-204, line 147, for partnerships.
- Complete Line 8 using the appropriate tax return amount.
- Complete Line 9 using the applicable additional credit or addbacks information.
- Add Lines 8 and 9 on Line 10.
- Enter applicable other credits on Line 11.
- Calculate Line 12.
- Determine the nonrefundable portion of the credit on Line 13.
- Calculate Line 14.
- Multiply Line 14 by 50% on Line 15.
- Enter unused 2020 carryover credit on Line 16, if applicable.
- Determine the refundable portion on Line 17.
- Calculate the carryforward amount on Line 18.
- Complete Part 2 with the correct entity names and classifications.
- Enter the EIN for each partnership, S corporation, estate, or trust.
- Report each entity’s current-year credit allocation in Column D.
- Add the Column D amounts and report the total on Line 19.
- Transfer the Line 19 amount to Line 3 in Part 1.
- Complete Part 3 with beneficiary names matching Form IT-205, Schedule C.
- Enter the correct beneficiary identification numbers.
- Report each beneficiary’s share of the current-year credit.
- Verify the total beneficiary allocation.
- Enter the fiduciary’s allocated credit in the appropriate row.
- Complete Line 20 with the amount designated for 2022.
- Complete Line 21 with the amount designated for 2023.
- Verify that all credit allocations and carryforward amounts are consistent.
- Attach Form IT-261 to the appropriate New York tax return.
- Confirm that the required tax credit certificate is included.
Completing Form IT-261 carefully helps ensure that the Empire State Film Post-Production Credit is properly calculated, allocated, and reported for the 2021 tax year. Review the credit certificate, applicable tax return amounts, entity allocations, beneficiary distributions, and future-year credit information before submitting the completed form.
Important: Several calculations on Form IT-261 refer to separate instructions, including the amount of credit available for 2021, other credits, nonrefundable and refundable portions, and future-year allocations. The detailed calculation rules are not reproduced on the form itself. Consult the applicable Form IT-261 instructions for these amounts rather than assuming additional formulas or eligibility rules.