Bill Text: NY S04904 | 2019-2020 | General Assembly | Introduced


Bill Title: 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.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2019-03-29 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S04904 Detail]

Download: New_York-2019-S04904-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4904
                               2019-2020 Regular Sessions
                    IN SENATE
                                     March 29, 2019
                                       ___________
        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.
                                                                   LBD10854-01-9

        S. 4904                             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 53.
    26    (2) article 22: section 606: subsection (jjj).
    27    (d) Allocation of credit. (1) The  aggregate  amount  of  tax  credits
    28  allowed  under  this  section,  subdivision  fifty-three  of section two
    29  hundred ten-B and subsection (jjj) of section six hundred  six  of  this
    30  chapter in any calendar year shall be fifty million dollars in two thou-
    31  sand nineteen, and each succeeding year up to and including two thousand
    32  twenty-two.
    33    (2)  For  the  period two thousand twenty through two thousand twenty-
    34  three, in addition to the amount of credit established in paragraph  one
    35  of  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 twenty through two thousand twenty-three 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. 4904                             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 this
     4  subdivision. However, in no event may the total of the credits allocated
     5  under  this  paragraph exceed ten million dollars in any year during the
     6  period two thousand twenty through two thousand twenty-three.
     7    § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
     8  sion 53 to read as follows:
     9    53.  Bio/Med  research  and  development investment credit. A taxpayer
    10  shall be allowed a credit, to be computed as provided in  section  twen-
    11  ty-four-b  of  this chapter, against the tax imposed by this article. In
    12  no event shall the credit allowed under this subdivision for any taxable
    13  year reduce the tax due for such year to less than the amount prescribed
    14  in paragraph (d) of subdivision one of section two hundred ten  of  this
    15  article. However, if the amount of credit allowed under this subdivision
    16  for  any  taxable year reduces the tax to such amount or if the taxpayer
    17  otherwise pays tax based on the fixed dollar minimum amount, any  amount
    18  of  credit  thus not deductible in such taxable year shall be treated as
    19  an overpayment of tax to be credited in accordance with  the  provisions
    20  of  section  one thousand eighty-six of this chapter. Provided, however,
    21  the provisions of subsection (c) of section one thousand eighty-eight of
    22  this chapter notwithstanding, no interest shall be paid thereon.
    23    § 3. Section 606 of the tax law is amended by adding a new  subsection
    24  (jjj) to read as follows:
    25    (jjj)  Bio/Med  research and development investment credit. A taxpayer
    26  shall be allowed a credit, to be computed as provided in  section  twen-
    27  ty-four-b  of  this chapter, against the tax imposed by this article. If
    28  the amount of the credit allowed under this subsection for  any  taxable
    29  year  shall exceed the taxpayer's tax for such year, the excess shall be
    30  treated as an overpayment of tax to be credited or refunded  in  accord-
    31  ance with the provisions of section six hundred eighty-six of this arti-
    32  cle, provided, however, that no interest shall be paid thereon.
    33    § 4. This act shall take effect immediately.
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