General.

(1) Investment credit. A taxpayer is allowed an investment credit against the ordinary tax (see section 101.1 of this Article), after allowance of any of the other credits permitted under this Part and any credits permitted under Parts 120, 121 and 140 of this Title, with respect to qualified tangible personal property and other qualified tangible property, including buildings and structural components of buildings which were acquired, constructed, reconstructed or erected after December 31, 1968. A taxpayer entitled to claim an investment credit must claim such credit for the first taxable year in which the property becomes qualified property pursuant to paragraph (c)(1) of this section.

(2) Retail enterprise credit. A taxpayer who operates a retail enterprise (see paragraph [c][4] of this section) and who is not eligible to claim the investment credit allowed under paragraph (1) of this subdivision, but who is eligible to claim the Federal investment credit allowable pursuant to the provisions of section 48(a)(1)(E) of the Internal Revenue Code, is allowed a retail enterprise credit against the ordinary tax (see section 101.1 of this Article), after allowance of any of the other credits permitted under this Part and any credits permitted under Parts 120, 121 and 140 of this Title. The retail enterprise credit is allowed with respect to qualified rehabilitation expenditures paid or incurred on or after June 1, 1981 with respect to a qualified rehabilitated building located in New York State. A taxpayer entitled to claim a retail enterprise credit must claim such credit for the first taxable year in which the qualified rehabilitation expenditures are paid or incurred.

(3) Where credit is claimed under either paragraph (1) or (2) of this subdivision, a New York State Investment Credit Schedule (form IT-212) must be submitted with the taxpayer's New York State income tax return.