Creates the qualified emerging technology commercialization tax credit; provides that an eligible taxpayer shall receive a credit for 15 percent of qualified commercialization expenses.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8901
SPONSOR: Peoples-Stokes TITLE OF BILL: An act to amend the tax law, in relation to creating
the qualified emerging technology commercialization tax credit
PURPOSE OR GENERAL IDEA OF BILL: This legislation would allow a
commercialization tax credit for small companies engaged in high-tech-
nology fields.
SUMMARY OF SPECIFIC PROVISIONS: The New York State tax law is amended
by adding a new subdivision 12-H to section 210. Additionally section
606 of the New York State tax law is amended by adding a new subsection
(qq), and by adding a new clause (xxxi)to subparagraph (B) of paragraph
1 of subsection (i) of this section.
This legislation provides a commercialization tax credit for qualified
emerging technology companies meeting certain eligibility conditions.
The commercialization tax credit allowed is for fifteen percent of qual-
ified commercialization expenses paid or incurred in the taxable year.
The tax credit may be claimed for four consecutive taxable years, up to
$100,000 per company per year.
The act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2010.
JUSTIFICATION: The recent report of the Governor's Taskforce on Indus-
try-Higher Education Partnerships notes that New York universities rank
second nationally in total research spending with nearly $45 spent annu-
ally. Further, New York has consistently ranked in the top tier of
states in regard to receipt of federal R&D funds by the state's research
institutions.
Over the past decade, the state has spent hundreds of millions to assure
that New York's research institutions can offer state-of-the art facili-
ties to attract federal research dollars. Where the state falls down is
in the area of providing support for commercialization and start-up
capital for companies that "spin-out" of research and development activ-
ities. According to the National Association for Seed and Venture Funds,
New York ranks 25th in providing this type of assistance. The Governor's
recent report also states that New York's colleges incubate fewer new
companies and our state is home to fewer fast-growing technology compa-
nies than our competitor states; California and Massachusetts.
A credit for commercialization expenses will directly aid companies
seeking to bring products to market, and fills a needed niche in the
array of incentives available to small technology companies. At this
juncture, it is appropriate to focus on how the State can capitalize on
public research investments so that innovations developed in our
research institutions are brought to the marketplace within the State,
creating jobs for New Yorkers.
PRIOR LEGISLATIVE HISTORY: A 10115 of 2010. A2683 of 2012. A2742 of
2013.
FISCAL IMPLICATIONS: Estimated tax implications are $6 million in
fiscal year 2014-2015.
EFFECTIVE DATE: This act shall take effect immediately and shall apply
to taxable years beginning on or after January 1, 2015.
