The PTET is an optional tax that partnerships or New York S corporations may annually elect to pay on certain income for tax years beginning on or after January 1, 2021.

If an eligible partnership or eligible New York S corporation (electing entity) elects to pay the PTET, its partners, members, or shareholders subject to tax under Article 22 (personal income tax) may be eligible for a PTET credit on their New York State income tax returns. The tax is imposed under Tax Law Article 24-A, which was enacted in 2021.

If you need assistance with 2021 tax filings to take full advantage of the annual election please do not hesitate to contact our practice.