§ 870. City pass-through entity tax credit. (a) Personal income tax
credit. (1) A city taxpayer who is a direct partner or member in an
electing city partnership or a direct shareholder of an electing city
resident S corporation subject to tax under this article shall be
allowed a credit against the tax imposed pursuant to the authority of
article thirty of this chapter, computed pursuant to the provisions of
subsection (g) of section thirteen hundred ten of this chapter. An
entity that is disregarded for tax purposes will be disregarded for
purposes of determining if a city taxpayer is a direct partner or member
of an electing city partnership or a direct shareholder of an electing
city resident S corporation.

(2) Limitation on credit. No credit shall be allowed to a city
taxpayer under paragraph one of this subsection unless the electing city
partnership or electing city resident S corporation paid the tax imposed
under this article and provided sufficient information on the city
pass-through entity tax return as prescribed by the commissioner to
identify such city taxpayer. Such information shall include, but not be
limited to, the social security number or taxpayer identification number
of the city taxpayer who will claim the credit (even in the case of a
disregarded entity owned by such city taxpayer).

(b) Limitation on credit. The aggregate amount of credits claimed by
all partners, members or shareholders of an electing city partnership or
an electing city resident S corporation pursuant to subsection (a) of
this section shall not exceed the tax due under section eight hundred
sixty-nine of this article from such electing city partnership or
electing city resident S corporation for the taxable year.