Form DTF-621: Claim for QETC Employment Credit (New York, Tax Year 2025)

Form DTF-621, Claim for QETC Employment Credit, is issued by the New York State Department of Taxation and Finance for businesses that qualify as Qualified Emerging Technology Companies (QETCs). The form lets eligible employers claim a credit against their New York State tax liability based on growth in employment within the state. For tax year 2025, businesses use this specific version of the form to report their average number of full-time employees and calculate the credit they’re entitled to claim.

The QETC Employment Credit exists to reward technology-focused companies that expand their workforce in New York rather than moving jobs elsewhere. It’s part of a broader package of incentives the state offers to emerging tech firms, alongside credits for capital investment and R&D. If your company has already claimed other QETC-related credits, you may recognize the general structure of this form, since New York models several of its emerging technology credits on similar employment and investment thresholds.

Who Needs to File Form DTF-621

This form applies to corporations, partnerships, and sole proprietors that meet New York’s definition of a Qualified Emerging Technology Company. Generally, a QETC is a company with total annual product sales of $10 million or less that either has its primary products or services classified as emerging technologies, or dedicates a significant portion of its total expenses to R&D activities.

To claim the credit, the business must show it increased its average number of full-time employees in New York State during the tax year compared to the prior year, or compared to a base year established when the company first qualified as a QETC. Companies that had layoffs or stagnant headcount typically don’t qualify for the credit in that tax year, even if they otherwise meet the QETC definition.

When the Form Is Used

Form DTF-621 is filed alongside your New York State corporate or personal income tax return for the tax year in which you’re claiming the credit. Because the credit is tied to employment growth measured year over year, businesses need to track headcount data carefully before completing the form. The 2025 version reflects the tax year 2025 filing requirements, so businesses should confirm they’re using the correct year’s form rather than an older revision, since credit calculations and thresholds can be updated from year to year.

Some companies claim this credit for multiple consecutive years if they continue growing their New York-based workforce. Each year requires a new DTF-621 filing with updated employment figures, so past approval doesn’t carry over automatically.

How to Fill Out and Submit the Form

The form is a fillable PDF, meaning you can complete it directly on your computer before printing or attaching it to your electronic filing. You’ll need to provide your business identification details, confirm your QETC eligibility status, and enter employment figures for the current and prior years to calculate the credit amount.

Before filling it out, gather your payroll records showing full-time employee counts in New York State for both the claim year and the comparison year. The form walks through the math for determining the percentage increase in employment and applies that to the credit formula set by the Department of Taxation and Finance.

Once completed, attach Form DTF-621 to your relevant New York State tax return. Corporations typically attach it to their franchise tax return, while individuals or pass-through entity owners attach it to their personal income tax filing, depending on how the business is structured.

Businesses that operate across multiple states sometimes need to reconcile state-specific credits with federal filings or with credits claimed elsewhere. If your company also deals with California tax matters, resources like California Form 3540 on credit carryover and recapture or FTB Publication 1006 on California and federal tax form relationships can help clarify how credits interact across jurisdictions, even though the mechanics differ from New York’s QETC program.

Keep copies of your completed DTF-621 and supporting payroll documentation in case the Department of Taxation and Finance requests verification of your employment growth figures. Errors in the employee count calculation are one of the more common reasons claims get delayed or adjusted during review.