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SB3237 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3237
 
                               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
 
        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.
    21    (b)  (1)  Allowance of credit. A taxpayer which is a qualified Bio/Med
    22  company, sole proprietor or a member of  a  partnership,  and  which  is
    23  subject  to  tax  under  articles  nine-A or twenty-two of this chapter,
    24  shall be allowed a credit against such tax, pursuant to  the  provisions
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06143-01-7

        S. 3237                             2
 
     1  referenced in subdivision (d) of this section, to be computed as herein-
     2  after provided.
     3    (2)  The  amount of the credit shall be the product (or pro rata share
     4  of the product, in the case of a member of  a  partnership)  of  fifteen
     5  percent and the qualified Bio/Med research and development costs paid or
     6  incurred  in the state. The credit shall be allowed for the taxable year
     7  in which the qualified Bio/Med research and development activity occurs.
     8  If the amount of the credit is at least one  million  dollars  but  less
     9  than  five  million dollars, the credit shall be claimed over a two year
    10  period beginning in the first taxable year in which the  credit  may  be
    11  claimed  and  in  the next succeeding taxable year, with one-half of the
    12  amount of credit allowed being claimed in each year. If  the  amount  of
    13  the credit is at least five million dollars, the credit shall be claimed
    14  over  a  three  year period beginning in the first taxable year in which
    15  the credit may be claimed and in the next two succeeding taxable  years,
    16  with one-third of the amount of the credit allowed being claimed in each
    17  year.
    18    (3)  No  qualified  Bio/Med  research  and development costs used by a
    19  taxpayer either as the basis for the allowance of  the  credit  provided
    20  for under this section or used in the calculation of the credit provided
    21  for under this section shall be used by such taxpayer to claim any other
    22  credit allowed pursuant to this chapter.
    23    (c)  Cross-references.  For  application of the credit provided for in
    24  this section, see the following provisions of this chapter:
    25    (1) article 9-A: section 210-B: subdivision 49.
    26    (2) article 22: section 606: subsection (ccc).
    27    (d) Allocation of credit. (1) The  aggregate  amount  of  tax  credits
    28  allowed  under  this  section,  subdivision  forty-nine  of  section two
    29  hundred ten-B and subsection (ccc) of section six hundred  six  of  this
    30  chapter in any calendar year shall be fifty million dollars in two thou-
    31  sand  seventeen,  and each succeeding year up to and including two thou-
    32  sand twenty.
    33    (2) For the period two thousand eighteen through two thousand  twenty-
    34  one, in addition to the amount of credit established in paragraph one of
    35  this  subdivision,  a  taxpayer  shall  be allowed a credit equal to the
    36  product (or pro rata share of the product, in the case of a member of  a
    37  partnership)  of  five  percent  and the amount of the qualified Bio/Med
    38  research and development costs by a qualified Bio/Med company in one  of
    39  the  counties  specified  in  this paragraph. For purposes of this addi-
    40  tional credit, the services must be performed or the  personal  property
    41  must  be  installed  in  one or more of the following counties:  Albany,
    42  Allegany, Broome, Cattaraugus, Cayuga,  Chautauqua,  Chemung,  Chenango,
    43  Clinton,  Columbia, Cortland, Delaware, Dutchess, Erie, Essex, Franklin,
    44  Fulton, Genesee, Greene, Hamilton, Herkimer, Jefferson,  Lewis,  Living-
    45  ston,  Madison,  Monroe, Montgomery, Niagara, Oneida, Onondaga, Ontario,
    46  Orleans, Oswego, Otsego, Rensselaer, Saratoga,  Schenectady,  Schoharie,
    47  Schuyler,  Seneca,  St.  Lawrence,  Steuben,  Sullivan, Tioga, Tompkins,
    48  Ulster, Warren, Washington, Wayne,  Wyoming,  or  Yates.  The  aggregate
    49  amount  of  tax  credits allowed pursuant to the authority of this para-
    50  graph shall be ten million dollars each year during the period two thou-
    51  sand eighteen through two thousand twenty-one of the  annual  allocation
    52  made available to the program pursuant to this subdivision. If the total
    53  amount of allocated credits applied for under this paragraph in any year
    54  exceeds  the aggregate amount of tax credits allowed for such year under
    55  this paragraph, such excess shall be treated as having been applied  for
    56  on  the first day of the next year. If the total amount of allocated tax

        S. 3237                             3

     1  credits applied for under this paragraph at the conclusion of  any  year
     2  is less than ten million dollars, the remainder shall be treated as part
     3  of  the  annual  allocation  made  available  to the program pursuant to
     4  subdivision  (d)  of this section. However, in no event may the total of
     5  the credits allocated under this paragraph exceed ten million dollars in
     6  any year during the period two thousand eighteen  through  two  thousand
     7  twenty-one.
     8    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
     9  sion 49 to read as follows:
    10    49. Bio/Med research and development  investment  credit.  A  taxpayer
    11  shall  be  allowed a credit, to be computed as provided in section twen-
    12  ty-four-b of this chapter, against the tax imposed by this  article.  In
    13  no event shall the credit allowed under this subdivision for any taxable
    14  year reduce the tax due for such year to less than the amount prescribed
    15  in  paragraph  (d) of subdivision one of section two hundred ten of this
    16  article. However, if the amount of credit allowed under this subdivision
    17  for any taxable year reduces the tax to such amount or if  the  taxpayer
    18  otherwise  pays tax based on the fixed dollar minimum amount, any amount
    19  of credit thus not deductible in such taxable year shall be  treated  as
    20  an  overpayment  of tax to be credited in accordance with the provisions
    21  of section one thousand eighty-six of this chapter.  Provided,  however,
    22  the provisions of subsection (c) of section one thousand eighty-eight of
    23  this chapter notwithstanding, no interest shall be paid thereon.
    24    §  3. Section 606 of the tax law is amended by adding a new subsection
    25  (ccc) to read as follows:
    26    (ccc) Bio/Med research and development investment credit.  A  taxpayer
    27  shall  be  allowed a credit, to be computed as provided in section twen-
    28  ty-four-b of this chapter, against the tax imposed by this  article.  If
    29  the  amount  of the credit allowed under this subsection for any taxable
    30  year shall exceed the taxpayer's tax for such year, the excess shall  be
    31  treated  as  an overpayment of tax to be credited or refunded in accord-
    32  ance with the provisions of section six hundred eighty-six of this arti-
    33  cle, provided, however, that no interest shall be paid thereon.
    34    § 4. This act shall take effect immediately.
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