Form IT-640-I: Instructions for the START-UP NY Telecommunication Services Excise Tax Credit (Tax Year 2025)

Form IT-640-I contains the official instructions from the New York State Department of Taxation and Finance for completing Form IT-640, which is used to claim the START-UP NY Telecommunication Services Excise Tax Credit. This credit exists specifically for businesses participating in the START-UP NY program that incur excise tax charges on telecommunication services within a tax-free NY area.

If your business isn’t enrolled in START-UP NY, this form doesn’t apply to you. The credit was created to reduce the operating costs of companies that locate or expand in designated tax-free zones affiliated with New York colleges and universities, and telecommunication excise taxes are one of several cost categories the state agreed to offset as part of that incentive package.

Who Needs Form IT-640

This form is relevant to business entities and individuals who are approved participants in the START-UP NY program and who pay the state’s excise tax on telecommunication services as part of running their operations inside a tax-free NY area. That includes corporations, partnerships, and sole proprietors who hold an active business location agreement with a sponsoring campus, college, or university under the program.

If you’re a partner, member, or shareholder in a business that qualifies, you may also need this form to claim your share of the credit that flows through from the entity. The instructions in IT-640-I walk through how that pass-through calculation works and what documentation to keep in case the Tax Department requests it later.

When to Use This Form

Form IT-640 is filed alongside your New York State income tax return for the year in which you paid the telecommunication excise tax and want to claim the corresponding credit. Since this is an annual credit tied to actual tax paid during the year, you’ll need to complete a new IT-640 each tax year you remain eligible, using the version of the instructions that matches that filing year — in this case, tax year 2025.

Businesses that are new to START-UP NY, or those whose participation status changed during the year, should read the instructions carefully to confirm they meet the eligibility window described for partial-year participants. The credit amount is generally tied to the excise tax actually paid, not an estimate, so timing matters when you’re gathering your telecommunication service statements.

How to Fill Out and Submit Form IT-640

Form IT-640-I is a print-and-fill document — there’s no fillable digital version available directly from the state, so you’ll need to download the PDF, print it, and complete it by hand. The instructions guide you through:

• Confirming your business’s eligibility as a START-UP NY participant
• Calculating the excise tax paid on qualifying telecommunication services
• Determining the credit amount allowed for the tax year
• Reporting pass-through credit amounts if you’re a partner, member, or shareholder

Once completed, Form IT-640 gets attached to your applicable New York State personal or corporate income tax return. Keep your telecommunication service bills and any correspondence from your sponsoring START-UP NY institution on file, since the Tax Department may ask for supporting records during processing or in the event of an audit.

Businesses working through New York’s economic development tax credits often find themselves filling out several related forms in the same filing season. If your company also invests in employee development, it’s worth checking whether you qualify for the credit described in Form IT-646-I. Employers who’ve hired veterans should also look at the Hire a Veteran Credit instructions in Form IT-643-I, and agricultural businesses may benefit from reviewing the Farm Workforce Retention Credit guidance in Form IT-647-I, since New York offers a range of overlapping incentive credits depending on your industry and location.

As with most New York tax credit forms, accuracy on Form IT-640 matters more than speed. Double-check your excise tax figures against your telecommunication provider’s statements before submitting, since discrepancies here are one of the more common reasons these claims get delayed or flagged for review.