|SAME AS||SAME AS A04420-A|
|Add §24-b, amd §§210-B & 606, Tax L|
|Creates a biotechnology research and development investment tax credit; provides that such credit shall be the product of fifteen percent and the qualified Bio/Med research and development costs paid or incurred in the state; allows credit for the taxable year in which the qualified Bio/Med research and development activity occurs.|
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STATE OF NEW YORK ________________________________________________________________________ 3237--A 2017-2018 Regular Sessions IN SENATE January 20, 2017 ___________ Introduced by Sens. RANZENHOFER, ORTT -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investi- gations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to the creation of a biotech- nology research and development investment tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 24-b to read 2 as follows: 3 § 24-b. Bioscience and medical technology (Bio/Med) research and 4 development tax credit. (a) Definitions. As used in this section, the 5 following terms shall have the following meanings: 6 (1) "Qualified Bio/Med research and development costs" means qualified 7 research expenses and basic research payments as defined in sections 41 8 (b) and (e) of the internal revenue code, except it does not include 9 expenses incurred for qualified research or basic research conducted 10 outside of New York state, for purposes of developing a product or phar- 11 maceutical, instrument, apparatus, machine, contrivance, implant or 12 other similar or related article, including a component part or accesso- 13 ry that are applicable to the prevention, treatment or cure of a disease 14 or condition of human beings. 15 (2) "Qualified Bio/Med company" is a corporation, partnership, limited 16 partnership or other entity which is engaged in the production of a 17 product or pharmaceutical, instrument, apparatus, machine, contrivance, 18 implant or other similar or related article, including a component part 19 or accessory that are applicable to the prevention, treatment or cure of 20 a disease or condition of human beings. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06143-02-8S. 3237--A 2 1 (b) (1) Allowance of credit. A taxpayer which is a qualified Bio/Med 2 company, sole proprietor or a member of a partnership, and which is 3 subject to tax under articles nine-A or twenty-two of this chapter, 4 shall be allowed a credit against such tax, pursuant to the provisions 5 referenced in subdivision (d) of this section, to be computed as herein- 6 after provided. 7 (2) The amount of the credit shall be the product (or pro rata share 8 of the product, in the case of a member of a partnership) of fifteen 9 percent and the qualified Bio/Med research and development costs paid or 10 incurred in the state. The credit shall be allowed for the taxable year 11 in which the qualified Bio/Med research and development activity occurs. 12 If the amount of the credit is at least one million dollars but less 13 than five million dollars, the credit shall be claimed over a two year 14 period beginning in the first taxable year in which the credit may be 15 claimed and in the next succeeding taxable year, with one-half of the 16 amount of credit allowed being claimed in each year. If the amount of 17 the credit is at least five million dollars, the credit shall be claimed 18 over a three year period beginning in the first taxable year in which 19 the credit may be claimed and in the next two succeeding taxable years, 20 with one-third of the amount of the credit allowed being claimed in each 21 year. 22 (3) No qualified Bio/Med research and development costs used by a 23 taxpayer either as the basis for the allowance of the credit provided 24 for under this section or used in the calculation of the credit provided 25 for under this section shall be used by such taxpayer to claim any other 26 credit allowed pursuant to this chapter. 27 (c) Cross-references. For application of the credit provided for in 28 this section, see the following provisions of this chapter: 29 (1) article 9-A: section 210-B: subdivision 53. 30 (2) article 22: section 606: subsection (ccc). 31 (d) Allocation of credit. (1) The aggregate amount of tax credits 32 allowed under this section, subdivision fifty-three of section two 33 hundred ten-B and subsection (ccc) of section six hundred six of this 34 chapter in any calendar year shall be fifty million dollars in two thou- 35 sand eighteen, and each succeeding year up to and including two thousand 36 twenty-one. 37 (2) For the period two thousand nineteen through two thousand twenty- 38 two, in addition to the amount of credit established in paragraph one of 39 this subdivision, a taxpayer shall be allowed a credit equal to the 40 product (or pro rata share of the product, in the case of a member of a 41 partnership) of five percent and the amount of the qualified Bio/Med 42 research and development costs by a qualified Bio/Med company in one of 43 the counties specified in this paragraph. For purposes of this addi- 44 tional credit, the services must be performed or the personal property 45 must be installed in one or more of the following counties: Albany, 46 Allegany, Broome, Cattaraugus, Cayuga, Chautauqua, Chemung, Chenango, 47 Clinton, Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin, 48 Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson, Lewis, Living- 49 ston, Madison, Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario, 50 Orleans, Oswego, Otsego, Rensselaer, Saratoga, Schenectady, Schoharie, 51 Schuyler, Seneca, St. Lawrence, Steuben, Sullivan, Tioga, Tompkins, 52 Ulster, Warren, Washington, Wayne, Wyoming, or Yates. The aggregate 53 amount of tax credits allowed pursuant to the authority of this para- 54 graph shall be ten million dollars each year during the period two thou- 55 sand nineteen through two thousand twenty-two of the annual allocation 56 made available to the program pursuant to this subdivision. If the totalS. 3237--A 3 1 amount of allocated credits applied for under this paragraph in any year 2 exceeds the aggregate amount of tax credits allowed for such year under 3 this paragraph, such excess shall be treated as having been applied for 4 on the first day of the next year. If the total amount of allocated tax 5 credits applied for under this paragraph at the conclusion of any year 6 is less than ten million dollars, the remainder shall be treated as part 7 of the annual allocation made available to the program pursuant to 8 subdivision (d) of this section. However, in no event may the total of 9 the credits allocated under this paragraph exceed ten million dollars in 10 any year during the period two thousand nineteen through two thousand 11 twenty-two. 12 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 13 sion 53 to read as follows: 14 53. Bio/Med research and development investment credit. A taxpayer 15 shall be allowed a credit, to be computed as provided in section twen- 16 ty-four-b of this chapter, against the tax imposed by this article. In 17 no event shall the credit allowed under this subdivision for any taxable 18 year reduce the tax due for such year to less than the amount prescribed 19 in paragraph (d) of subdivision one of section two hundred ten of this 20 article. However, if the amount of credit allowed under this subdivision 21 for any taxable year reduces the tax to such amount or if the taxpayer 22 otherwise pays tax based on the fixed dollar minimum amount, any amount 23 of credit thus not deductible in such taxable year shall be treated as 24 an overpayment of tax to be credited in accordance with the provisions 25 of section one thousand eighty-six of this chapter. Provided, however, 26 the provisions of subsection (c) of section one thousand eighty-eight of 27 this chapter notwithstanding, no interest shall be paid thereon. 28 § 3. Section 606 of the tax law is amended by adding a new subsection 29 (ccc) to read as follows: 30 (ccc) Bio/Med research and development investment credit. A taxpayer 31 shall be allowed a credit, to be computed as provided in section twen- 32 ty-four-b of this chapter, against the tax imposed by this article. If 33 the amount of the credit allowed under this subsection for any taxable 34 year shall exceed the taxpayer's tax for such year, the excess shall be 35 treated as an overpayment of tax to be credited or refunded in accord- 36 ance with the provisions of section six hundred eighty-six of this arti- 37 cle, provided, however, that no interest shall be paid thereon. 38 § 4. This act shall take effect immediately.