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2022
UBT PAID CREDIT
- 9.7 SUBCHAPTER S GENERAL CORPORATIONS
ATTACH TO FORM NYC-3L OR NYC-3A
For CALENDAR YEAR 2022 or FISCAL YEAR beginning _________________________ 2022 and ending ____________________________________
t Name as shown on NYC-3L or NYC-3A EMPLOYER IDENTIFICATION NUMBER

SCHEDULE A
1a. Add total of amounts from Schedule B, line 10, for all partnerships
with respect to which you are claiming a credit (see instructions) ...................... 1a.
1b. Enter amount from Schedule C, line 9.................................................................1b.
1c. Total of 1a and 1b. ...............................................................................................1c.
*31012291* t FOR TAXPAYERS LIABLE FOR GCT ON ENTIRE NET INCOME t
2. Tax from Form NYC-3L or NYC-3A, Schedule A, line 1 (see inst.) .................................... 2.
3. Multiply line 2 by 4/8.85 ........................................................................................................ 3.
4. UBT PAID CREDIT - Enter the lesser of line 1c and line 3 and transfer amount
to Form NYC-3L, Schedule A, line 7 or Form NYC-3A, Schedule A, line 9 .............. 4.
t FOR TAXPAYERS LIABLE FOR GCT ON ENTIRE NET INCOME PLUS SALARIES AND OTHER COMPENSATION t
5. Multiply line 1c by .3319 ....................................................................................................................5.
6. Tax from Form NYC-3L or NYC-3A, Schedule A, line 3 .................................................................. 6.
7. UBT PAID CREDIT - Enter the lesser of line 5 and line 6 and transfer amount to
Form NYC-3L, Schedule A, line 7 or Form NYC-3A, Schedule A, line 9 ......................................... 7.
SCHEDULE B
A separate Schedule B must be completed for each partnership with respect to which you are claiming this credit.
If more than one Schedule B is used, please state number of additional schedules attached: _________
t Name of partnership from which you received a distributive share or guaranteed payment (distributing partnership) EMPLOYER IDENTIFICATION NUMBER OF DISTRIBUTING PARTNERSHIP

1. Unincorporated business tax paid by distributing partnership (from Form NYC-204, Sch. A, line 23) .. 1.
2. Credits taken by distributing partnership on its own return (from Form NYC-204,
Schedule A, lines 20 and 22a through 22e) (see instructions) ....................................................... 2.
3. Total of lines 1 and 2 ..................................................................................................................... 3.
4. Your distributive share percentage with respect to the distributing partnership
(from distributing partnership’s Form NYC-204, Schedule C. Attach copy)...................................... 4.
5. Multiply line 3 by the percentage on line 4........................................................................................ 5.
6. Tax from Form NYC-3L or NYC-3A, Schedule A, line 1 (modified if necessary - see instr.) ............ 6.
7. Tax from pro forma Form NYC-3L or NYC-3A, Schedule A, line 1 (see instructions) ..................... 7.
8. Subtract line 7 from line 6 ................................................................................................................ 8.
9. Multiply line 8 by 4/8.85 (see instructions) ........................................................................................ 9.
10. Enter lesser of line 5 and line 9 ..................................................................................................... 10.
SCHEDULE C
COMPLETE SCHEDULE C IF YOU HAVE UBT PAID CREDITS FROM PRECEDING YEARS THAT YOU MAY CARRY FORWARD TO 2023
APPLICABLE YEAR COLUMN A COLUMN B COLUMN C
Credit Available in 2022 Credit Carryforward to 2023.
Column A Minus Column B
(if less than zero, enter “0”)
1. Current year
2. 7th preceding year
3. 6th preceding year
4. 5th preceding year
5. 4th preceding year
6. 3rd preceding year
7. 2nd preceding year
8. 1st preceding year
9. Total Column A, lines 2 through
8 (enter on Sch. A, line 1b)..........9.
NYC-9.7 2022
31012291

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Form NYC-9.7 - 2022 Page 2

INSTRUCTIONS LINE 2 without taking into account your distributive
If the distributing partnership has taken credits on share of income, gain, loss and deductions of, or
A corporation subject to the General Corporation its own Form NYC-204, line 20 and lines 22a guaranteed payments from, the distributing part-
Tax (GCT) that is a partner in a partnership that through 22e, enter on line 2 the sum of such cred- nership with regard to which you are claiming a
is subject to the Unincorporated Business Tax its but only to the extent that they do not reduce credit on this form. Enter on line 7 the amount
(UBT) may claim a credit against its GCT liabil- the distributing partnership’s unincorporated from the pro forma Form NYC-3L or 3A, Sched-
ity if the corporation is required to include its dis- business tax below zero. The amount entered on ule A, line 1. Attach pro forma Form NYC-3L or
tributive share of the income, gain, loss and line 2 may not exceed the amount on Schedule A, NYC-3A.
deductions of, or guaranteed payments from, the line 19, of the distributing partnership’s Form
partnership in its own tax base. NYC-204. If your answer to ANY of the three questions in
the instructions for line 6 is “yes”, fill out a mod-
SCHEDULE A LINE 4 ified pro forma Form NYC-3L or 3A, taking into
Taxpayers liable for the tax on entire net income Enter here the percentage of total distributive account the modifications required at a, b, and c
should fill out lines 1a through 4 of Schedule A. shares reported for you in column 4 of Schedule of the instructions for line 6 above and recalcu-
Taxpayers liable for the alternative tax on entire C of the distributing partnership's Form NYC- lating your modified GCT liability on the ENI
net income plus salaries and other compensation 204. Attach a copy of the distributing partner- base without taking into account your distribu-
should fill out lines 1a through 1c and lines 5 ship’s Form NYC-204, Schedule C. Attach tive share of income, gain, loss and deductions
through 7 of Schedule A. Taxpayers liable for the taxpayer’s K-1 from the distributing partnership. of, or guaranteed payments from, the distributing
tax on capital or for the minimum tax should fill partnership with regard to which you are claiming
out lines 1a through 1c of Schedule A. LINE 6 a credit on this form. Enter on line 7 the amount
If your answer to ALL of the following questions from the modified pro forma Form NYC-3L or
LINE 1a is “no”, enter on line 6 the amount from your 3A, Schedule A, line 1. Attach modified pro-
Enter on line 1a the amount from Schedule B, Form NYC-3L or 3A, Schedule A, line 1. forma form NYC-3L or 3A.
line 10. If you are claiming credits with respect
to more than one partnership, add the amounts on 1. Did you (or in the case of a combined re- LINE 9
line 10 on all attached Schedules B and enter the port, any of the corporations included in To account for the difference in tax rates between
sum on this line. the report) claim an NOL deduction on line the Unincorporated Business Tax and the General
11 of Schedule B of Form NYC-3L or Corporation Tax, multiply line 8 by a fraction, the
LINE 1b Form NYC-3A for this taxable year? numerator of which is 4 and the denominator of
Before completing Schedule A, line 1b, you must which is 8.85.
have completed Schedule C, Column A. 2. Was the sum of your distributive share of
income, gain, loss, and deductions of, and SCHEDULE C
LINE 2 guaranteed payments from, any unincor-
Enter the product of allocated net income and porated business less than zero (a “net loss COLUMN A, LINE 1
.0885. distributive share”)? Enter on Column A, line 1, the amount from
Schedule A, line 1a.
LINE 3 3. Was your entire net income less than zero
To account for the difference in tax rates between before taking into account any distributive COLUMN B, LINE 1
the Unincorporated Business Tax and the General share or guaranteed payments from any Taxpayers liable for GCT on the entire net in-
Corporation Tax, multiply line 2 by a fraction, the partnerships, or any NOL deduction (“sep- come base, enter on Column B, line 1, the amount
numerator of which is 4 and the denominator of arate ENI”)? from Schedule A, line 4. Taxpayers liable for
which is 8.85. GCT on the alternative income-plus-compensa-
If your answer to ANY of these questions is yes, tion base enter on Column B, line 1, the amount
SCHEDULE B you must fill out a modified NYC-3L or 3A on from Schedule A, line 7, divided by .3319. Tax-
The UBT Paid Credit may be “taken” only by a which you make the following adjustments: payers liable for GCT on the capital base or for
corporation in a year that it is actually liable for the minimum tax, enter zero on Column B, line 1.
GCT on either the entire net income or entire net a. Do not take into account any NOL carry-
income plus compensation bases. However, the forward or carryback; COLUMN A, LINE 2
UBT Paid Credit is “allowed” to corporations re- Enter amount from last year’s Form NYC-9.7,
gardless of the basis on which they are liable for b. treat all net loss distributive shares as zero Schedule C, column C, line 3.
general corporation tax. The credit that is “al- (see question 2); and
lowed” is always calculated as if the taxpayer COLUMN B, LINE 2
were on the entire net income basis. The differ- c. if your separate ENI is less than zero, treat Enter the excess if any, of the amount from Col-
ence between the credit that is “allowed” and the it as zero (see question 3). umn B, Line 1 over the amount from Column A,
credit that may be “taken” is eligible to be car- Line 1. If less than zero, enter “0”.
ried forward for up to seven years. (see instruc- Enter on line 6 the amount from the above de-
tions for Schedule C.) The UBT Paid Credit does scribed modified Form NYC-3L or 3A, Schedule COLUMN A, LINE 3
not alter the basis upon which a taxpayer must A, line 1 (“modified GCT liability.”). Attach Enter amount from last year’s Form NYC-9.7,
pay tax (e.g., on the basis of entire net income, modified form NYC-3L or 3A. Schedule C, Column C, line 4.
alternative income-plus-compensation, capital, or
minimum tax) even if the credit reduces the tax li- LINE 7 COLUMN B, LINE 3
ability below the liability calculated on another If your answer to ALL three questions in the in- Enter the excess if any, of the amount from Col-
basis. structions for line 6 is “no”, fill out a pro forma umn B, Line 2 over the amount from Column A,
Form NYC-3L or 3A in which you calculate your line 2. If less than zero, enter "0".
General Corporation Tax liability on the ENI base

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Form NYC-9.7 - 2022 Page 3

COLUMN A, LINE 4 the modifications and completing the pro forma
Enter amount from last year’s Form NYC-9.7, forms required by the instructions for Schedule
Schedule C, Column C, line 5. B. The following example illustrates how such a
corporation should complete Schedule B:
COLUMN B, LINE 4
Enter the excess, if any, of the amount from Col- Professional corporation X is a partner in law
umn B, line 3 over the amount from Column A, partnership P. Both X and P are on a calendar
line 3. If less than zero, enter “0”. year for tax purposes and both X and P allocate
100 percent of their income to New York City. X
COLUMN A, LINE 5 receives a distributive share from P of $100,000
Enter amount from last year’s Form NYC-9.7, in 1996 and pays a salary of $100,000 to its Pres-
Schedule C, Column C, line 6. ident, A. X has no other source of income in
1996. X computes its General Corporation Tax
COLUMN B, LINE 5 liability for 1996 on the alternative income-plus-
Enter the excess, if any, of the amount from Col- compensation base. However, in determining its
umn B, line 4, over the amount from Column A, amount of UBT paid credit allowed, and the
line 4. If less than zero, enter “0”. amount of any credit carryforward, X must use
the entire net income base.
COLUMN A, LINE 6
Enter amount from last year’s Form NYC-9.7 In calculating its entire net income before taking
Schedule C, Column C, line 7. into account its distributive share from P, X
should reflect the $100,000 deduction taken for
COLUMN B, LINE 6 the salary paid to A. Thus, X's separate ENI for
Enter the excess, if any, of the amount from Col- purposes of answering question 3 in the instruc-
umn B, line 5, over the amount from Column A, tions to line 6 of Schedule B is a net loss of
line 5. If less than zero, enter “0”. ($100,000) and, therefore, the answer to question
3 would be "yes". In completing its modified
COLUMN A, LINE 7 NYC-3L, X's separate ENI would be treated as
Enter amount from last year’s Form NYC-9.7 zero, as directed by adjustment 3 under the in-
Schedule C, Column C, line 8. structions to line 6 of Schedule B, and its ENI
would be $100,000 (separate ENI of $0 plus the
COLUMN B, LINE 7 $100,000 distributive share from P). Line 1 of
Enter the excess, if any, of the amount from Col- the modified NYC-3L would be $8,850 to be en-
umn B, line 6, over the amount from Column A, tered on line 6 of Schedule B of Form NYC-9.7.
line 6. If less than zero, enter “0”.
In completing the pro forma NYC-3L as required
COLUMN A, LINE 8 by the instructions to line 7 of Schedule B, X's
Enter amount from last year’s Form NYC-9.7 separate ENI is treated as zero and the amount on
Schedule C, Column C, line 1. line 1 of the pro forma NYC-3L, calculated with-
out the distributive share from P, would be zero.
COLUMN B, LINE 8 That amount is entered on line 7 of Schedule B.
Enter the excess, if any, of the amount from Col-
umn B, line 7, over the amount from Column A,
line 7. If less than zero, enter “0”.

COLUMN C
For each of lines 1, 3, 4, 5, 6, 7 and 8, enter the
excess, if any, of the amount in Column A over
the amount in Column B. If less than zero, enter
“0”. This is the amount available as a carryfor-
ward to next year.

EXAMPLE - INCOME PLUS COMPENSA-
TION TAXPAYERS
Corporations paying tax on the alternative in-
come-plus-compensation base should pay partic-
ular attention to the general instructions for
Schedule B and the specific instructions for lines
6 and 7 of Schedule B. Although such a corpo-
ration calculates its actual General Corporation
Tax on the alternative tax base, the UBT paid
credit allowed is determined as if the corporation
were on the entire net income base. Moreover,
deductions for officers' and shareholders' com-
pensation should not be disregarded in making

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