Form IT-650: Empire State Apprenticeship Tax Credit (Tax Year 2025) Explained

Form IT-650 is how New York State employers claim the Empire State Apprenticeship Tax Credit (ESATC), a state tax incentive designed to encourage businesses to hire and train apprentices in registered apprenticeship programs. If your company sponsors an apprentice through a program registered with the New York State Department of Labor, this form is what puts money back in your pocket at tax time.

The credit isn’t automatic. You have to apply for it, get certified, and then report the certified amount on Form IT-650 when you file your New York State tax return. The form is issued by the New York State Department of Taxation and Finance and comes as a fillable PDF (AcroForm), so you can type your entries directly into the document before printing or attaching it to your e-filed return.

Who Needs Form IT-650

This form applies to businesses, and in some cases individuals, that:

• Employ apprentices enrolled in a qualified registered apprenticeship program in New York State
• Have received a Certificate of Tax Credit from Empire State Development or the Department of Labor confirming eligibility for the credit
• Owe New York State franchise, income, or personal income tax and want to reduce that liability using the certified credit amount

Sole proprietors, partnerships, S corporations, and C corporations can all potentially claim this credit, though the exact mechanics of how the credit flows through depend on the entity type. Partners and shareholders in pass-through entities typically receive their share of the credit reported on a separate schedule and then use Form IT-650 to claim it on their own personal returns.

When You Use This Form

You file Form IT-650 with your New York State tax return for the year in which the credit was earned and certified. For tax year 2025, that means attaching it to whichever NYS return you normally file, whether that’s Form IT-201 for individuals, Form CT-3 for corporations, or another applicable return. The credit amount you enter on IT-650 must match what’s shown on the certification you received from the state agency overseeing the apprenticeship program, so don’t attempt to estimate or calculate your own figure. If you haven’t received your certificate yet, you generally can’t complete this form.

Keep in mind that apprenticeship tax credits like this one work similarly to other targeted state incentives, such as the California Form 3521 Low-Income Housing Credit, in that eligibility hinges entirely on a prior certification process rather than a simple self-assessment. The paperwork trail matters as much as the numbers you put on the return.

How to Get and Complete Form IT-650

The New York State Department of Taxation and Finance publishes the current fillable version of IT-650 directly on its website. Because it’s an AcroForm, you can open it in Adobe Reader or most modern browsers and type your information into the designated fields rather than printing a blank copy and filling it out by hand.

When completing the form, you’ll typically need:

• Your business or personal identifying information, including your Employer Identification Number or Social Security Number
• The certificate number and credit amount provided in your apprenticeship tax credit certification
• Details about the apprentice or apprentices for whom the credit was earned, if the form requests a breakdown
• Any carryover amounts if you’re applying unused credit from a previous tax year

Double-check that the figures on IT-650 line up exactly with your certification documents before submitting. Mismatches between what’s certified and what’s claimed are a common reason these credits get delayed or denied during processing. If your business works with an accountant familiar with New York State tax credits, this is a form worth reviewing together, especially since the underlying certification requirements can shift from year to year.

Once completed, Form IT-650 gets submitted along with your regular New York State tax filing, either through your tax software’s attachment feature if e-filing, or physically included if you’re mailing a paper return.