New York City Department of Finance
  
 Instructions for Form CR-Q3
Commercial Rent Tax Quarterly Return    Applicable for the tax period December 1, 2022 to February 28, 2023, ONLY

  HIGHLIGHTS OF LEGISLATION

l As of June 1, 2018, a “Small Business tax credit” is  available for tenants with “small business tax credit base rents” 
  of less than $500,000, and a phase out applies for rents from $500,000 to $550,000.  A total income limitation and 
  phase-out applies from $5,000,000 to $10,000,000.  The “small business tax credit base rent” is the base rent before 
  the 35% rent  reduction allowed  pursuant to  Administrative Code Section 11-704(h)(2). See the Small Business Tax 
  Credit Worksheet and Instructions. 
 
l Effective August 30, 2005, the Commercial Rent Tax reduction program is expanded for those taxpayers who are el-
  igible for the Commercial Revitalization Program benefits to include more buildings and to provide a greater base 
  rent reduction as follows: 
 
  a. The program is expanded to include buildings south of Canal Street that received their certificate of occupancy 
   after 1975.  
   
  b. The law provides for a base rent reduction for the first five years of the lease equal to the lesser of the first year’s 
   rent or 100% of the rent paid for the period.   
   
  c. This expansion is available for leases, but not subleases, having a term of at least five years beginning between 
   7/1/2005 and 6/30/2023. 
   
  d. No base rent reduction is allowed under this program for tax periods beginning after 3/31/2030.  
   
  e. For purposes of applying such special reduction, the base rent for the base year shall, where necessary to deter-
   mine the amount of the special reduction allowable with respect to any number of months falling within a tax pe-
   riod, be prorated by dividing the base rent for the base year by twelve and multiplying the result by such number 
   of months. 
 
l Effective August 30, 2005, tenants located in the “World Trade Center Area”, as defined are exempt from the tax (see 
  Page 3 - Exemptions #5).  The World Trade Center is defined as:  the area in the borough of Manhattan bounded by 
  Church Street  on the east starting at the intersection of Liberty Street and Church Street; running northerly along the 
  center line of Church Street to the intersection of Church Street and Vesey Street; running westerly along the center 
  line of Vesey Street to the intersection of Vesey Street and West Broadway; running northerly along the center line 
  of West Broadway to the intersection of West Broadway and Barclay Street; running westerly along the center line 
  of Barclay Street to the intersection of Barclay Street and Washington Street; running southerly along the center line 
  of Washington Street to the intersection of Washington Street and Vesey Street; running westerly along the center line 
  of Vesey Street to the intersection of Vesey Street and West Street; running southerly along the center line of West 
  Street to the intersection of West Street and Liberty Street; running easterly along the center line of Liberty Street to 
  the intersection of Liberty Street and Washington Street; running southerly along the center line of Washington Street 
  to the intersection of Washington Street and Albany Street; running easterly along the center line of Albany Street to 
  the intersection of Albany Street and Greenwich Street; running northerly along the center line of Greenwich Street 
  to Liberty Street; and running easterly along the center line of Liberty Street to the intersection of Liberty Street and 
  Church Street. 
 
l As of December 1, 2005, the rent paid for  premises used for retail sales purposes is exempt from tax (see Page 3 - 
  Exemptions #6) where such premises are located in the Commercial Revitalization Program abatement zone, which 
  is the area in the borough of Manhattan bounded by Murray Street on the North starting at the intersection of West 
  Street and Murray Street; running easterly along the center line of Murray Street connecting through City Hall Park 
  with the center line of Frankfort Street and running easterly along the center lines of Frankfort and Dover Streets to 
  the intersection of Dover Street and South Street; running southerly along the center line of South Street to Peter Mi-
  nuit Plaza; connecting through Peter Minuit Plaza to the center line of State Street and running northwesterly along 
  the center line of State Street to the intersection of State Street and Battery Place; running westerly along the center 
  line of Battery Place to the intersection of Battery Place and West Street; and running northerly along the center line 
  of West Street to the intersection of West Street and Murray Street. Any tax lot partly located inside this area is 
  deemed to be entirely located inside the area. 

Instructions for Form CR-Q3 for the period of December 1, 2022 to February 28, 2023, ONLY                                                      Page 2 
IMPORTANT INFORMATION                           GENERAL INFORMATION                                     the due date until the earlier of (1) 20 days after the 
                                                                                                        end of the tax year, or (2) the date as of which the 
l Form CR-Q has been revised.  There is no      FORMS TO BE USED AND                                    tax paid for the tax year equals 75% of the full tax 
  longer a requirement to sign the form or at-  PERIODS  COVERED                                        required to be paid for the tax year.  The interest 
  tach the base rent computation schedules      Every tenant subject to tax for a period must file a    must only be paid with the annual return.   
  on page 2 or page 3.                          quarterly return (Form CR-Q).  Quarterly returns         
                                                                                                        WHO IS A TENANT 
                                                are due for the three-month periods ending on the 
l Taxpayers whose annualized base rent be-                                                              A tenant is a person who pays or is required to pay 
                                                last days of August, November and February of 
  fore the 35% rent reduction and the NYC                                                               rent for premises as a lessee, sublessee, licensee or 
                                                each tax year and must be filed within 20 days after 
  Commercial Revitalization Program spe-                                                                concessionaire.  No tax return need be filed if the 
                                                the end of the period they cover. 
  cial reduction is less than $250,000 are no                                                           individual or the business entity is the same indi-
                                                 
  longer subject to the Commercial Rent                                                                 vidual or entity owning the premises.  The tax form 
                                                Every tenant subject to tax must file an annual re-
  Tax.  However, a tax return may be re-                                                                should be returned to the Department of Finance 
                                                turn on Form CR-A. Generally, no return is re-
  quired to be filed.                                                                                   stating the owner’s name and address, Employer 
                                                quired from taxpayers exempt from tax but  
l A tax credit is allowed for taxpayers whose   taxpayers meeting certain criteria must still file an   Identification Number or Social Security Number, 
  annualized base rent before the 35% rent      annual return even though not subject to tax.  An       the address of the property and the block and lot 
  reduction and the NYC Commercial Revi-        annual return is required even though the tenant is     number as shown on the real estate tax bill.  Share-
  talization Program special reduction is at    not subject to tax because its annualized base rent     holders in cooperative corporations are not consid-
  least $250,000, but is less than $300,000.    before the 35% rent reduction and the NYC Com-          ered “owners of record.”  
  The tax credit is calculated on page 2, line  mercial Revitalization program special reduction is      
  16.                                           less than $250,000 (Refer to Exemptions, below)         The following situations do not exempt the tenant 
                                                if, with respect to any premises: (i) its annual or     from tax: 
                                                                                                         
l As of June 1, 2018, an additional “Small      annualized gross rent ismore than $200,000  or(ii)      a) where a building is owned, not by a tenant but 
  Business tax credit” is also available for    it receives over $200,000 in rent from any sub-            by a spouse or parent of the tenant; 
  tenants with “small business tax credit base  tenant. However, an annual return is not required        
  rents” of less than $500,000, and a phase     if the tenant is not subject to tax because its annu-   b) where a building is owned by the tenant jointly 
  out applies for rents from $500,000 to        alized base rent before the 35% rent reduction and         or in common with another person, other than 
  $550,000.  A total income limitation and      the NYC Commercial Revitalization special re-              a spouse; 
  phase-out applies from $5,000,000 to          duction is less than $250,000 if , with respectanyto     
  $10,000,000.  The “small business tax credit  premises: (i) its annual or annualized gross rent  is   c) where a building is owned by a corporation of 
  base rent” is the base rent before the 35%    $200,00 or less, and (ii) it does  not receive over        which the tenant is an officer or holder of all or 
  rent reduction.                               $200,000 in rent from any subtenant.                       part of the corporate stock; 
                                                                                                         
 l A tax return is no longer required to be                                                             d) where the tenant is a corporation and the build-
  filed with respect to any premises if your    If a tenant ceases to do business, the tax is due im-      ing is owned by a subsidiary corporation or by 
  annual or annualized gross rent paid is       mediately, and the tenant must file a final return for     a parent corporation; 
  $200,000 or less and you do not receive       the entire year (Form CR-A) within 20 days from          
  over $200,000 in rent from any subtenant.     the date the tenant ceases to do business.  If the ten- e) where the tenant is a corporation and the build-
                                                ant nevertheless continues to pay rent for the tax-        ing is owned by an officer or stockholder of 
l A 35% rent reduction is allowed in com-       able premises, in which case the tenant must               the corporation. 
  puting base rent subject to Commercial        continue to file returns and pay the tax.                
  Rent Tax.                                                                                             WHAT CONSTITUTES 
                                                                                                        TAXABLE PREMISES 
l The applicable tax rate for each taxable      If a tax return or payment is delivered to the De-
  premises is based on the Base Rent Before     partment of Finance by U.S. mail after the due date,    Taxable premises are premises used or intended to 
  Rent Reduction and the NYC Commercial         the date of the U.S. Postal Service postmark            be used to carry on any trade, business, profes-
  Revitalization Program special reduction      stamped on the envelope will be considered the          sional, vocational or commercial activity, includ-
  (lines 7 and 5b, or line 12, if applicable).  date of delivery, provided the postmark date falls      ing premises used solely for the purpose of renting 
  However, that tax rate is applied to the      on or before the due date including any extension       the same in whole or in part to subtenants.  Taxable 
  Base Rent Subject to Tax (line 9) in deter-   and the return was deposited in the mail, postage       premises include a specific part of particular space 
  mining your tax for each taxable premises.    prepaid and properly addressed.  Non-U.S. Postal        in a warehouse rented for the storage of goods, or 
  If that amount is less than $62,500, no tax   Service postmarks will also be recognized, pro-         in a garage, parking lot or parking area rented for 
  is due.  If that amount is at least $62,500   vided delivery to the Department of Finance occurs      the parking of motor vehicles, in connection with 
  but less than $75,000, a tax credit is al-    within five days of the postmark date.  If the five-    the tenant’s conduct of business or professional ac-
  lowed.                                        day limit is exceeded, the taxpayer must establish:     tivity; also included is a safe deposit box or locker 
                                                a) the item was actually deposited in the mail by       or beach cabana if used for business purposes. 
l In computing base rent, rent received from    the due date; b) the delay in receipt was due to a       
  subtenants may be deducted by a prime         delay in the transmission of the mail; and c) the       WHAT CONSTITUTES RENT 
                                                cause of the delay.                                     Rent is the consideration paid or required to be paid 
  tenant, regardless of the amount.                                                                     by a tenant for the use or occupancy of premises, 
                                                 
l The Commercial Rent Tax has been re-          If the due date falls on a Saturday, Sunday or legal    valued in money, whether received in money or 
  pealed with respect to rent paid for all      holiday, the due date is extended to the next suc-      otherwise, including all credits, property, or serv-
  premises located north of the center line of  ceeding business day.                                   ices of any kind, as well as any payment required to 
  96th Street in Manhattan and the boroughs                                                             be made by a tenant on behalf of the landlord for 
  of the Bronx, Brooklyn, Queens and Staten     For late filings of quarterly returns, interest must    real estate taxes, water and sewer charges, or any 
  Island.                                       be paid on the amount of the underpayment from          other expenses (including insurance) normally 

Instructions for Form CR-Q3 for the period of December 1, 2022 to February 28, 2023, ONLY                                                         Page 3 
payable by a landlord who owns the realty, other           to the Transit Authority;  or                      7. various governmental bodies, the U.N., and 
than expenses for the improvement, repair or main-         which is parking space subject to the additional      nonprofit religious, charitable and educational 
                                                        e)
tenance of the tenant’s premises.                          8% parking tax imposed under Administrative           organizations.   Other nonprofit organizations 
                                                           Code Section 11-2049.                                 may be exempt from the tax.  For more infor-
Where the rent paid by a tenant for the occupancy of                                                             mation, see Sections 7-04 through 7-06 of the 
taxable premises is measured in whole or in part by     NOTE:  Report these deductions on line 5a - Other        Commercial Rent Tax Rules. (Title 19, Rules of 
the gross receipts from the sales within the premises,  Deductions and attach a schedule.                        the City of New York, Chapter 7) 
the rent, for purposes of computing the Commercial                                                             
Rent Tax is the actual percentage of gross receipts due For a more detailed discussion of deductions in cal-  COMBINED BUSINESS/ 
the landlord, but not in excess of 15% of gross re-     culating base rent refer to Section 11-704 of the     RESIDENTIAL USE 
ceipts.                                                 NYC Administrative Code and Section 7-01 “Base        Where a tenant pays an undivided rent for a prem-
                                                        Rent” of the Commercial Rent Tax Rules.  (Title       ises used both for residential and business pur-
Tenant shareholders in cooperative buildings            19, Rules of the City of New York, Chapter 7.)        poses, the tax applies to that part of the rent that is 
should calculate the amount of rent subject to tax as                                                         attributable to the part of the premises used for 
provided in Section 7-01 “Rent” of the Commer-          EXEMPTIONS                                            business purposes. In such a case, the rent attribut-
cial Rent Tax Rules. (Title 19, Rules of the City of    The following are exempt from payment of the          able to business use is the amount which the tenant 
New York, Chapter 7)  If a tenant uses two or more      Commercial Rent Tax:                                  deducts as rent for the premises for federal income 
taxable locations in the same building at the same                                                            tax purposes. 
time, the total rent paid for all such locations con-   1.  a tenant whose annualized base rent before the     
stitutes rent paid for one taxable premises.               35% rent reduction and the NYC Commercial          WHEN AND WHERE TO FILE 
                                                           Revitalization Program special reduction (line     File your return within 20 days after the end of 
WHAT CONSTITUTES BASE RENT                                 5b) is less than $250,000 for a period begin-      the period covered by this return.  Interest will be 
Base rent is generally the rent paid for each taxable      ning on or after June 1, 2001.  The annualized     assessed after the filing of the annual return if this 
premises by a tenant to the landlord for a period,         base rent for a period of less than one year is    quarterly return is filed late.  The return should be 
less the amounts received by or due such tenant for        determined as if the rent had been paid on an      mailed to: 
the same period from any subtenant of any part of          equivalent basis for an entire year;                
                                                                                                               NYC Department of Finance 
the premises.  (See instructions to line 4, Rent from   2. a tenant who uses premises for 14 days or less      P.O. Box 3931 
Sub-tenant(s)).                                            (whether or not consecutive) in a tax year, and     New York, NY 10008-3931 
                                                           is not required to pay rent for a longer period;     
Where the base rent is for a period of less than one     
year it must be annualized.  Base rent is annualized    3. a tenant (other than the operator of a hotel,      ELECTRONIC FILING 
by assuming it was paid on an equivalent basis for         apartment hotel or lodging house) who uses         Note: Register for electronic filing.  It is an easy, 
the entire year.                                           premises for residential renting to others to the  secure and convenient way to file and pay taxes 
                                                           extent of 75% or more of the rentable floor        on-line.  For more information log on to 
In computing base rent, rent received from a sub-          space;                                             nyc.gov/eservices 
tenant subject to the tax or exempt from the tax be-                                                           
cause the subtenant's annualized base rent is less      4. a tenant who uses premises for certain dra-        HOW TO COMPLETE YOUR 
than $250,000 for a period beginning on or after           matic or musical arts performances for less        QUARTERLY FORM  
June 1, 2001,  and rent received from a subtenant          than 4 weeks where the performances are not        l  Complete this return by beginning on page 2.  
that is a governmental entity, the UN, or a nonprofit      intended to continue for less than 4 weeks.           Use worksheets on page 3, as applicable. 
religious, charitable or educational entity exempt         A tenant who uses taxable premises for the          
from the tax may be deducted by a prime tenant.            production and performance of a theatrical         l  Complete the entire schedule for each prem-
                                                           work is exempt from the tax with respect to           ises.  
                                                                                                               
NOTE: Base rent paid by a tenant for one taxable           the rent paid for the taxable premises for a       l  After completing page 2 and all applicable 
premise cannot be reduced by deducting rents re-           period not exceeding 52 weeks from the date           worksheets on page 3, complete page 1. 
ceived by that tenant for another taxable premise          production commenced.  For purposes of this         
of which he is also a tenant.                              exemption, production will be considered to         USE THIS PAGE IF YOU HAVE THREE OR LESS 
                                                           commence on the date public performances            PREMISES/SUBTENANTS   OR, MAKE COPIES 
A tenant is also entitled to deduct from the base rent     begin;                                              OF THIS PAGE TO REPORT ADDITIONAL 
                                                         
amounts paid by the tenant for the tenant’s own use     5. beginning  August 30, 2005, tenants in the          PREMISES/SUBTENANTS. IF YOU WISH TO 
of the premises:                                           World Trade Center Area, as defined in section      REPORT MORE THAN THREE PREMISES/              
                                                                                                               SUBTENANTS, AND CHOOSE TO USE A 
a) for railroad, air, or omnibus transportation pur-       11-704(6) of the NYC Ad. Code.  See “High-          SPREADSHEET, YOU MUST USE THE CRQ 
   poses;                                                  lights of Legislation”;                             FINANCE  SUPPLEMENTAL SPREADSHEET, 
                                                                                                               WHICH YOU CAN DOWNLOAD FROM OUR WEB-
b) for piers, insofar as they are used in interstate    6. beginning December 1, 2005, premises used for       SITE AT WWW.NYC.GOV/CRTINFO.
   or foreign commerce;                                    retail sales purposes in the Commercial Revi-       
                                                           talization Program abatement zone.  See “High-     Preparer Authorization:  If you want to allow the 
c) which are located in, on, above, or under a             lights of Legislation” and Administrative Code     Department of Finance to discuss your return with 
   public place and are defined by law as special          §11-704(c)(9).  Premises used for retail pur-      the paid preparer who signed it, you must check the 
 
   franchise property;                                     poses are premises used for the selling of tan-    "yes" box in the signature area of the return. This 
d) which are advertising space or signs, vending           gible goods directly to the ultimate consumer.     authorization applies only to the individual whose 
   machines, or newsstands in subway or elevated           Administrative Code §11-701(c)(20).  In gen-       signature appears in the "Preparer's Use Only" sec-
   railroad premises operated by the New York              eral, restaurants and bars do not qualify for this tion of your return.  It does not apply to the firm, if 
   City Transit Authority when the rent is payable         exemption; and                                     any, shown in that section.  By checking the "Yes" 
                                                         

Instructions for Form CR-Q3 for the period of December 1, 2022 to February 28, 2023, ONLY                                                Page 4 
box, you are authorizing the Department of Finance      entered.  If you pay a single rent to one lessor for   premises in the Title 4 abatement zone, defined 
to call the preparer to answer any questions that       two or more taxable premises, see section 7-01 “Al-    generally as the area in Manhattan bounded by 
may arise during the processing of your return.         location of single rent for two or more taxable        Murray Street and Frankfort Street on the north, 
Also, you are authorizing the preparer to:              premises” of the Commercial Rent Tax Rules (Title      and South Street, Battery Place and West Street on 
                                                        19, Rules of the City of New York, Chapter 7) for      the east, south and west, respectively.  Effective for 
l Give the Department any information missing           the method to be used to allocate rent among the       qualifying leases commencing between July 1, 
  from your return,                                     taxable premises.                                      2005 and June 30, 2023, the premises can be in el-
                                                                                                               igible buildings located south of Canal Street.  
l Call the Department for information about the         LINE 3 - RESIDENTIAL RENT                              Leases must be new, renewal or expansion leases 
  processing of your return or the status of your       If you use your home for business and residential      with lease commencement dates beginning on or 
  refund or payment(s), and                             purposes, enter here the amount of the rent attribut-  after April 1, 1997 and must meet minimum lease 
 
                                                        able to residential use only.  It is presumed that the term and expenditure requirements.  Expanded 
l Respond to certain    notices that you have 
                                                        amount you claimed as a business deduction for rent    benefits are available for qualifying leases com-
  shared with the preparer about math errors, 
                                                        on your federal income tax return is the amount of     mencing between July 1, 2005 and June 30, 2023.   
  offsets, and return preparation.  The notices                                                                 
                                                        rent attributable to business use of the premises. 
  will not be sent to the preparer.                                                                            Under the original program, for leases with an ini-
                                                                                                               tial lease term of at least three years but less than 
                                                        LINE 4 - RENT FROM SUBTENANT(S) 
You are not authorizing the preparer to receive                                                                five years, the special reduction is available for up 
                                                        Enter here amounts paid or due to you as rent from 
any refund check, bind you to anything (including                                                              to 36 months.  The reduction for the base year, i.e., 
                                                        any subtenant. In computing base rent, rent received 
any additional tax liability), or otherwise represent                                                          the twelve month period commencing on the rent 
                                                        from a subtenant subject to the tax or not subject to 
you before the Department.  The authorization can-                                                             commencement date, is equal to the base rent.  The 
                                                        tax because its annualized base rent is less than 
not be revoked, however, the authorization will au-                                                            special reduction for the two twelve month periods 
                                                        $250,000 for a period beginning on or after June 1, 
tomatically expire no later than the due date                                                                  following the base year is equal to 2/3 and 1/3, re-
                                                        2001, and rent received from a subtenant that is a 
(without regard to any extensions) for filing next                                                             spectively, of the lesser of the base rent for that 12 
                                                        governmental entity, the UN, or a nonprofit reli-
year's return.  Failure to check the box will be                                                               month period or the base rent for the base year.  
                                                        gious, charitable or educational entity exempt from 
deemed a denial of authority.                                                                                  Where the lease is at least five years long, the spe-
                                                        the tax, may be deducted by a prime tenant. 
                                                                                                               cial reduction is available for up to sixty months 
SPECIFIC INSTRUCTIONS                                   Also enter the subtenant’s name, Employer Identi-      with a similar decrease for the last two twelve 
                                                        fication Number (for corporations or partnerships)     month periods of that period.  See Administrative 
PAGE 2 - Computation of Base Rent                       or Social Security Number (if a sole proprietor-       Code §11-704.i.2.(b) and (b-1).  For qualifying 
 
                                                        ship).  Note that such rents may be deducted only 
For purposes of completing this form round off                                                                 leases (which do not include subleases) with an ini-
                                                        from the gross rent of the premises which the sub-
cents to the nearest whole dollar.                                                                             tial or renewal lease term of at least five years, 
                                                        tenant occupies and may not be applied against any     commencing between July 1, 2005 and June 30, 
LINE 1 - TAXABLE PREMISES                               other premises rented by the taxpayer.                 2023, the special reduction for the base year is 
                                                         
                                                                                                               equal to the base rent and for all other 12 month 
Enter address, zip code and block and lot number of     If you have more than one subtenant, make copies 
                                                                                                               periods is equal to the lesser of the base rent for 
each taxable premises where the annualized gross rent   of page 2 or attach the CRQ Finance Supplemental 
                                                                                                               such twelve-month period or the base rent for the 
exceeds $200,000.  To find the block and lot number     Spreadsheet. 
corresponding to the taxable premises, log on to the                                                           base year.  See Administrative Code §11-704.i.2.(b-
Department of Finance website at www.nyc.gov/fi-        In entering amounts paid by subtenants whose rent      2), as amended. 
                                                                                                                
nance and mouse over the Real Estate Tax (blue bar)     is based on a percentage of sales receipts, exclude    The application for the special reduction under Ad. 
drop down menu, click on “Assessment Roll” and          the amount in excess of 15% of those receipts.         Code §11-704.i.2.(b-2) must be filed with the De-
                                                         
click on “Search by Address”.  Alternatively, the block Amounts received by a garage or parking lot oper-      partment of Finance within 180 days from the rent 
and lot number can be obtained from your landlord or    ator for allowing the parking of a vehicle anywhere    commencement date. Administrative Code §11-
managing agent.  If you have more than three such       on his premises is not deductible unless:              704.i.5.(a)(iii). 
premises, make copies of page 2 or attach the CRQ Fi-                                                           
nance Supplemental Spreadsheet available on the De-     a) a particular space has been permanently as-         For more information concerning eligibility require-
partment’s website at www.nyc.gov/crtinfo.  Make           signed for the exclusive use of the tenant; and     ments under the NYC Commercial Revitalization 
                                                         
                                                                                                               Program, please e-mail:  
sure the copies or the schedule bear the taxpayer’s     b) the vehicle is used for commercial purposes 
name, address, period covered by the return, Account       by the tenant; and                                    nyc.gov/contactfinance 
ID Number, and Employer Identification Number or                                                                                         
Social Security Number.                                 c) a completed Certificate of Assigned Space           SPECIAL NOTE FOR 
                                                           Use has been taken from the tenant.                 ELIGIBLE TAXPAYERS 
LINE 2 - GROSS RENT PAID                                                                                       The amount of the special reduction available 
Determine amount of gross rent paid for each prem-      LINE 5a - OTHER DEDUCTIONS                             to eligible taxpayers under the NYC Com-
ises and enter on this line (Refer to “What Consti-     Enter here any amounts included in gross rent al-      mercial Revitalization Program (line 5b) IS 
tutes Rent”, page 2.)  If you occupy more than one      lowable as deductions for eligible taxpayers and       NOT taken into account and must be added to 
location within the same premises, the gross rent       detail such deductions on an attached schedule.        the line 7 amount for the following purposes:  
paid is considered the total of all rents paid in those                                                         
premises.  If your gross rent is based on a percent-    LINE 5b - COMMERCIAL REVITALIZATION                    l annualizing the base rent (lines 10-12), 
                                                                                                                
age of sales receipts, exclude the excess of 15% of     PROGRAM SPECIAL REDUCTION (SEE                         l determining whether the taxpayer is ex-
those receipts.  If you rent an entire apartment, hotel HIGHLIGHTS OF LEGISLATION)                               empt because its annualized base rent is 
suite, or other accommodation that you use or oc-       The NYC Commercial Revitalization Program pro-           below $250,000 for periods beginning on 
cupy for commercial activities and claim as a busi-     vides both Real Estate Tax and Commercial Rent           or after June 1, 2001 (see "EXEMP-
ness deduction, the full amount of the rent must be     Tax benefits with respect to qualifying leases of        TIONS" on page 2 of these instructions),  
                                                                                                                

Instructions for Form CR-Q3 for the period of December 1, 2022 to February 28, 2023, ONLY                                                              Page 5 
l determining the amount of credit avail-                  rive at the average monthly base rent, before rent      gible with respect to others.   
  able (line 16), and                                      reduction.                                               
l determining the applicable tax rate.  How-                                                                       “Base Rent Before Rent Reduction” means the base 
  ever, once the applicable rate is deter-                 LINE 12 - QUARTERLY BASE RENT                           rent before the 35% rent reduction on Page 2, line 7.      
  mined, enter the amount on line 9 (after                 Multiply line 11 by 3 (months).  This is your quar-      
  the special reduction) on line 13 or 14,                 terly base rent, before rent reduction.                 LINE INSTRUCTIONS 
  whichever is applicable.                                                                                          
                                                           LINES 13 AND 14 - RATE CLASS                            Line A. 
LINE 6 - TOTAL DEDUCTIONS                                    If lines 10a through 12 are not applicable, and       To qualify for the credit, you must check “Yes” to 
                                                           l
Add lines 3 through 5b and enter the total deduc-            if the sum of lines 7 and 5b is $62,499 or less       both questions A and B on the Small Business Tax 
tions in line 6.                                             and represents rent for the full three-month pe-      Credit worksheet. 
                                                             riod, transfer the amount on line 9   (not the         
LINE 7 - BASE RENT BEFORE THE 35%                            amount on line 7) to line 13.  If the sum of          “Total income” is defined by section 11-704.4 of 
RENT REDUCTION                                               lines 7 and 5b is $62,500 or more and repre-          the Administrative Code to mean the amount re-
Subtract line 6 from line 2 to obtain the amount of          sents rent for the full three-month period, trans-    ported to the Internal Revenue Service for  federal 
your base rent before the 35% rent reduction.                fer the amount on line 9 (not the amount on           income tax purposes in the tax year immediately 
                                                             line 7) to line 14.                                   preceding the period for which the tenant is apply-
                                                                                                                   ing for this credit that is equal to the gross receipts 
LINE 8 - 35% RENT REDUCTION                                l If lines 10a through 12 are applicable, and if        or sales of the individual, trust, estate, partnership, 
Multiply line 7 by 35% and enter here.                       the line 12 amount is $62,499 or less, transfer       association, company or corporation minus returns 
                                                             the amount on line 9 (not the amount on line          and allowances, minus the cost of goods plus the 
LINE 9 - BASE RENT SUBJECT TO TAX                            12) to line 13.  If the line 12 amount is $62,500     amount of any dividends, interest, gross rents , 
Subtract line 8 from line 7 to obtain the amount of          or more, transfer the amount on line 9 (not the       gross royalties, capital gain net income, net gain or 
your base rent subject to tax.                               amount on line 12) to line 14.                        loss from the sale of business property, net farm 
                                                                                                                   profit or loss, ordinary income or loss from other 
Note:   See highlighted NOTE under line 9,                 l Transfer the totals of lines 13 and 14 to lines 1     partnerships, estates or trusts or other income or 
        Page 2 of the tax form.                              and 2 respectively, page 1 of the form.               loss.  
                                                                                                                    
ANNUALIZATION OF BASE RENT                                 LINE 15 - TAX DUE BEFORE CREDIT                         Example: Corporation A which is engaged in run-
Complete lines 10 through 12   only if the amount          Multiply line 14 amounts by 6% and enter the re-        ning a hardware store rents premises for which it 
shown on line 7 does not represent rent paid for the       sult on line 15.  This is your tax due before the tax   would like to claim a small business tax credit for 
full three-month period.                                   credit.  The total of line 15 should equal the amount   the tax period beginning June 1, 2021 and ending 
                                                           calculated as tax due on page 1, line 2 of the form.    May 31, 2022.  It files its federal tax return on 
SPECIAL INSTRUCTIONS FOR  TENANTS                                                                                  Form 1120 on a fiscal year basis ending  on June 
WHO PAY RENT FOR  A PERIOD OTHER                           LINE 16 - TAX CREDIT                                    30th. In order to be eligible for the small business 
THAN ONE MONTH.                                            Compute your tax credit using the Tax Credit Com-       tax credit, the amount of its total income on line 11 
If you do not pay rent on a monthly basis, check the       putation Worksheet provided at the bottom of page       of its Federal Tax return filed on Form 1120 for 
box on line 10 on page 2.  If filing using the Finance     2 of the form and enter the result on line 16. Trans-   2019 must be less than $10 million. 
supplemental spreadsheet, select “Yes’ from the drop-      fer the total of line 16 to page 1, line 3 of the form.  
down box on line 10 if your rent is not paid on a                                                                  Income Factor Calculations 
monthly basis.  Do not complete lines 10a and 11 onLINE 17 - SMALL BUSINESS TAX CREDIT                             Complete either lines 1a and 1b ORlines 2a and             2b.
page 2.  To determine the Quarterly Base Rent before       Use the worksheet on page 3 of the form to calcu-        
reduction, use the worksheet on the bottom of Page 3.      late the Small Business Tax Credit.  Transfer the       l  Line 1a:  If your total income is $5,000,000 or 
Enter the Premises Number from Page 2 for which            total of line 17 to page 1, line 4 of the form.            less, enter the amount here. 
                                                                                                                    
rent is not paid on a monthly basis at the top of the                                                              l  Line 1b:  Your Income Factor is 1. 
column.   Complete the worksheet and enter the result      SMALL BUSINESS TAX CREDIT WORK-                          
from line 5 of this worksheet on line 12 of Page 2 in      SHEET INSTRUCTIONS                                      l  Line 2a:  If your total income is more than 
the appropriate column.  If the amount on line 12 is                                                                  $5,000,000 but less than $10,000,000, enter 
$62,499 or less transfer the amount on line 9 to line 13.  Beginning on June 1, 2018, taxpayers may claim             the amount here. 
If the amount on line 12 is $62,500 or more, transfer      the Small Business Tax Credit.  The credit effec-        
the amount on line 9 to line 14.  Include these amounts    tively exempts tenants with “Total Income” as de-       l  Line 2b:  Calculate your Income Factor by 
in the totals on page 1, lines 1 and 2, respectively.      fined below of $5,000,000 or less AND annual               subtracting the amount you have entered on 
Skip to the instructions for line 15.  For those premises  “Base Rent Before Rent Reduction” of less than             line 2a from $10,000,000 and dividing the dif-
for which you pay rent on a monthly basis, continue        $500,000 from the Commercial Rent Tax. Other               ference by 5,000,000. Your Income Factor will 
with the instructions below.                               taxpayers with “Total Income” of more than                 be a decimal value greater than zero and less 
                                                           $5,000,000 but less than $10,000,000 and annual            than one. Calculate the Income Factor to two 
LINE 10a - MONTHS AT PREMISES                              “Base Rent Before Rent Reduction” of less than             decimal places. 
                                                                                                                    
Enter the dates (month and year) that occupancy or         $550,000 receive a sliding scale credit against the     Example: 
use of such premises began and ended.  Compute             tax. Taxpayers with “Total Income” equal to or            Total income = $8,000,000 
the number of months occupied or used to the near-         more than $10,000,000 OR annual “Base Rent Be-            (10,000,000 – 8,000,000) = 2,000,000 
est full month and enter.                                  fore Rent Reduction” equal to or more than                2,000,000 / 5,000,000 
                                                           $550,000 are not eligible for this credit. Taxpayers      Income Factor = 0.40 
LINE 11 - MONTHLY BASE RENT                                with multiple premises and “Total Income” of less          
BEFORE RENT REDUCTION                                      than $10,000,000 may be eligible for this credit        l  Enter your Income Factor on line 2b 
Divide the sum of lines 7 and 5b by line 10a to ar-        with respect to some of their premises while ineli-      

Instructions for Form CR-Q3 for the period of December 1, 2022 to February 28, 2023, ONLY                       Page 6 
Rent Factor Calculations                               of all the premises of line 15 from page 2. 
                                                        
l Enter the Premises Number from Page 2 at the         LINE 3 -  TAX CREDIT 
  top of the column for Premises for which you         Enter the total amount of tax credit of all the prem-
  are claiming the credit.                             ises from page 2, line 16. 
 
l Complete either lines 3a and 3b OR 4a and 4b.        LINE 4 -  SMALL BUSINESS TAX CREDIT 
                                                       Enter the total amount of tax credit of all the prem-
l Line 3a:  If your  “Base Rent Before Rent Re-        ises from page 2, line 17. 
  duction” is less than $125,000, enter the             
  amount here.                                         LINE 6 - TOTAL REMITTANCE DUE 
 
l Line 3b:  Your Rent Factor is 1.                     Deduct line 5 from line 4.  The result will be the 
                                                       total remittance due for the period.  Make your 
l Line 4a:  If your  “Base Rent Before Rent Re-        check payable to the order of:  
  duction” is at least $125,000 but  less than           NYC Department of Finance   
  $137,500, enter the amount here.                      
 
l Line 4b:   Calculate your rent factor by sub-        Enter the amount of payment remitted with this re-
  tracting the amount you have entered on line         turn on Line A in the space provided. 
  4a from $137,500 and dividing the difference          
  by 12,500. Your Rent Factor will be a decimal          l  Be sure that your name, EIN or SSN, 
  value greater than zero and less than one.  Cal-          and Account ID Number appear on 
  culate your Rent Factor to two decimal places.            the face of the check.
 
Example:                                                
  Base Rent = 130,000                                  CUSTOMER ASSISTANCE 
  ($137,500 – 130,000) = $7,500                        If you have a Commercial Rent Tax-related ques-
  7,500 / 12,500                                       tion or concern, please call 311.       
  Rent Factor = 0.60                                    
                                                       You can receive information or contact us by visit-
l Enter your Rent Factor on line 4b                    ing the Department of Finance’s Internet web site at 
                                                       nyc.gov/finance   
Small Business Tax Credit Calculation                   
 
l Line 5a:  Enter  the tax due from page 2, line 15.   DID YOUR MAILING ADDRESS CHANGE? 
                                                       If so, please visit us at nyc.gov/finance and click 
l Line 5b:  Enter your Tax Credit from the Tax         “Update Name and Address” in the blue “Business 
  Credit Computation Worksheet on page 2.              Taxes” box.  This will bring you to the “Business 
 
                                                       Taxes Change of Name, Address or Account Infor-
l Line 5c:  Subtract line 5b from line 5a and 
                                                       mation”.  Update as required. 
  multiply the difference by your Income Fac-           
  tor from line 1b or 2b and by your Rent Fac-         PRIVACY ACT NOTIFICATION 
  tor from line 3b or 4b. Enter the value here, on     The Federal Privacy Act of 1974, as amended, requires 
  page 2, line 17 and include on page 1, line 4.       agencies requesting Social Security Numbers to inform 
                                                       individuals from whom they seek this information as to 
Note: If you are using the WEB-based spread-           whether compliance with the request is voluntary or 
  sheet, all calculated fields are automati-           mandatory, why the request is being made and how the 
  cally completed.                                     information will be used. The disclosure of Social Se-
                                                       curity Numbers by taxpayers is mandatory and is re-
PAGE 1                                                 quired by section 11-102.1 of the Administrative Code 
                                                       of the City of New York. Disclosure by subtenants is 
Computation of Tax                                     voluntary. Such numbers disclosed on any report or re-
                                                       turn are requested for tax administration purposes and 
LINE A - PAYMENT                                       will be used to facilitate the processing of tax returns 
Enter the amount of payment remitted with this re-     and to establish and maintain a uniform system for 
turn in the space provided.                            identifying taxpayers who are or may be subject to 
                                                       taxes administered and collected by the Department of 
LINES 1 AND 2  -                                       Finance. Such numbers may also be disclosed as part 
COMPUTATION OF TAX DUE                                 of information contained in the taxpayer’s return to an-
                                                       other department, person, agency or entity as may be 
Enter the number of taxable premises you have oc-      required by law, or if the taxpayer gives written au-
cupied or used during the tax period in the appro-     thorization to the Department of Finance.
priate columns on lines 1 and 2. 
 
Enter on lines 1 and 2, whichever applies, your 
base rent totals for all premises in each class cal-
culated on lines 13 and 14 from page 2.  Multiply 
“total base rent”  on line 2 by the tax rate of 6% and 
enter the result in the column under “tax due.”  This 
amount should equal the total tax due before credit  
                                                                                                                CR-3Q Instructions 2022/2023