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(i) A taxpayer who qualifies as an owner of a new business (see subparagraph [ii] of this paragraph) may, in lieu of carrying over the unused investment credit or the retail enterprise credit as provided for in paragraph (1) of this subdivision, receive the investment credit or the retail enterprise credit not used as a refund. Any refund of unused investment credit or retail enterprise credit pursuant to this paragraph shall be deemed to be a refund of an overpayment of New York State personal income tax as provided in section 686 of the Tax Law; however, no interest may be paid on such refund of unused investment credit or retail enterprise credit.
(a) With respect to qualified property which is depreciable pursuant to section 167 of the Internal Revenue Code and which is disposed of or ceases to be in qualified use prior to the end of its useful life, the difference between the investment credit taken and the investment credit allowed for actual use must be added back to the ordinary tax otherwise due in the year of disposition or disqualification.
(b) The amount of investment credit to be added back pursuant to clause ( a ) of this subparagraph is computed as follows:
(1) divide the total number of months of qualified use of the property by the total number of months of useful life;
(2) multiply the amount computed in subclause ( 1 ) of this clause by the amount of the investment credit claimed on the property to ascertain the investment credit allowed for actual use;
(3) subtract the investment credit allowed for actual use from the investment credit claimed on the property to determine the amount of investment credit to be added back; and
(4) add the amount of investment credit to be added back to the ordinary tax due for the year the property was disposed of or ceased to qualify.
(1) divide the total number of months of qualified use of the property by the total number of months of useful life;
(2) multiply the amount computed in subclause ( 1 ) of this clause by the amount of the investment credit claimed on the property to ascertain the investment credit allowed for actual use;
(3) subtract the investment credit allowed for actual use from the investment credit claimed on the property to determine the amount of investment credit to be added back; and
(4) add the amount of investment credit to be added back to the ordinary tax due for the year the property was disposed of or ceased to qualify.
(c) An add-back, pursuant to clause ( a ) of this subparagraph of the investment credit taken will not be required if the property is disposed of or ceases to be in qualified use after such property has been in qualified use for more than 12 consecutive years or after the end of such property's useful life.
(d) As used in this subparagraph, the useful life of property is the same number of years as the taxpayer uses for Federal depreciation purposes pursuant to section 167 of the Internal Revenue Code.