•  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video/Transcript 

SB3237 Text:



 
                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.
                                                                   LBD06143-02-8

        S. 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 total

        S. 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.
Go to top