NY State Senate Bill 2015-S4138A

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 15, 2016	referred to ways and means delivered to assembly passed senate ordered to third reading cal.1762 committee discharged and committed to rules
Jan 21, 2016	print number 4138a
Jan 21, 2016	amend and recommit to investigations and government operations
Jan 06, 2016	referred to investigations and government operations
Mar 03, 2015	referred to investigations and government operations

Votes

- Jun 15, 2016 - Floor Vote
  S4138A
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 15, 2016
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Avella
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Espaillat
      
      Farley
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Hassell-Thompson
      
      Hoylman-Sigal
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Martins
      
      Montgomery
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      Ortt
      
      Panepinto
      
      Parker
      
      Peralta
      
      Perkins
      
      Persaud
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Venditto
      
      Young
      
      excused (1)
      
      Diaz
  Jun 15, 2016 - Rules Committee Vote
  S4138A
  
  23
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 15, 2016
      
      aye (23)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Espaillat
      
      Farley
      
      Flanagan
      
      Gianaris
      
      Hannon
      
      Hassell-Thompson
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Nozzolio
      
      Parker
      
      Robach
      
      Seward
      
      Stewart-Cousins
      
      Valesky
      
      aye wr (2)
      
      Krueger
      
      Perkins

Bill Amendments

Original

A (Active)

co-Sponsors

2015-S4138 - Details

See Assembly Version of this Bill:: A7045
Current Committee:: Assembly Ways And Means
Law Section:: Tax Law
Laws Affected:: Add §24-b, amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S3237, A4420
2019-2020: S4904

2015-S4138 - Summary

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.

2015-S4138 - Sponsor Memo

                                BILL NUMBER:S4138

TITLE OF BILL:

An act to amend the tax law, in relation to the creation of a
biotechnology research and development investment tax credit

PURPOSE:

To incentivize the growth of the Bio/Med industry within New York
State by providing a tax credit for Bio/Med research and development
activities conducted within the state.

SUMMARY OF PROVISIONS:

Adds a new section to the Tax Law to create a tax credit for Bio/Med
research and development activities occurring within the state for
calendar years 2016 through 2019. The credit is capped annually at $50
million. An enhanced credit is provided for activities occurring in
upstate counties. The bill also adds conforming subsections to
sections 210 and 606 of the Tax Law.

EXISTING LAW:

The Tax Law includes a limited tax credit for investment activities.
Additionally, the Tax Law includes tax credits for certain economic

activity including brownfield remediation, film production and biofuel
production.

JUSTIFICATION:

The Bio/Med industry is revolutionizing health care allowing people to
live healthier and longer lives. Advances in science, engineering and
genetics are rapidly being translated into medicines, precise and
innovative diagnostic tests, devices and equipment. The field is also
rapidly expanding leading to significant increased economic activity
and job growth.

Many states have sought to capitalize on the growth of the industry by
establishing targeted programs and incentives to attract investment
and expansion from Bio/Med companies. These efforts include tax
credits, grants and specialized educational and training programs.
The programs have proved successful with those states with such
programs seeing significantly greater growth than states without.

While the Bio/Med industry has a significant presence in New York
(among the top 10 states in the size of its industry and scale and
reach of its research and ranked 8th in medical technology
specifically among states), the state has not sought to take advantage
of its strategic assets including higher educational institutions,
highly skilled employees and existing Bio/Med companies (in Upstate
New York alone the industry contributes 28,000 high-skilled jobs) to
grow the industry within the state. As a result, New York has fallen
further behind leading states.

A Bio/Med research and investment tax credit will reposition New York
as an attractive state for Bio/Med investment. Research & development


tax credits are proven to spur economic activity. Studies have found
that research and development tax credits increase private research
spending, employment and wages. 70% of the funds from these tax
credits go towards labor costs and support high-tech jobs. A targeted
Bio/Med research and development investment tax credit will attract
investment from the rapidly expanding and promising field.

LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

The credit is capped at $50 million per year through 2019 which will
spur economic activity and job growth which will significantly offset,
if not completely offset any loss of revenue to the state.

EFFECTIVE DATE:

This bill shall take effect immediately.

2015-S4138 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4138

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              March 3, 2015
                               ___________

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:

  Section 1. The tax law is amended by adding a new section 24-b to read
as follows:
  S 24-B. BIOSCIENCE  AND  MEDICAL  TECHNOLOGY  (BIO/MED)  RESEARCH  AND
DEVELOPMENT  TAX CREDIT.   (A) DEFINITIONS. AS USED IN THIS SECTION, THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (1) "QUALIFIED BIO/MED RESEARCH AND DEVELOPMENT COSTS" MEANS QUALIFIED
RESEARCH EXPENSES AND BASIC RESEARCH PAYMENTS AS DEFINED IN SECTIONS  41
(B)  AND  (E)  OF  THE INTERNAL REVENUE CODE, EXCEPT IT DOES NOT INCLUDE
EXPENSES INCURRED FOR QUALIFIED RESEARCH  OR  BASIC  RESEARCH  CONDUCTED
OUTSIDE OF NEW YORK STATE, FOR PURPOSES OF DEVELOPING A PRODUCT OR PHAR-
MACEUTICAL,  INSTRUMENT,  APPARATUS,  MACHINE,  CONTRIVANCE,  IMPLANT OR
OTHER SIMILAR OR RELATED ARTICLE, INCLUDING A COMPONENT PART OR ACCESSO-
RY THAT ARE APPLICABLE TO THE PREVENTION, TREATMENT OR CURE OF A DISEASE
OR CONDITION OF HUMAN BEINGS.
  (2) "QUALIFIED BIO/MED COMPANY" IS A CORPORATION, PARTNERSHIP, LIMITED
PARTNERSHIP OR OTHER ENTITY WHICH IS ENGAGED  IN  THE  PRODUCTION  OF  A
PRODUCT  OR PHARMACEUTICAL, INSTRUMENT, APPARATUS, MACHINE, CONTRIVANCE,
IMPLANT OR OTHER SIMILAR OR RELATED ARTICLE, INCLUDING A COMPONENT  PART
OR ACCESSORY THAT ARE APPLICABLE TO THE PREVENTION, TREATMENT OR CURE OF
A DISEASE OR CONDITION OF HUMAN BEINGS.
  (B)  (1)  ALLOWANCE OF CREDIT. A TAXPAYER WHICH IS A QUALIFIED BIO/MED
COMPANY, SOLE PROPRIETOR OR A MEMBER OF  A  PARTNERSHIP,  AND  WHICH  IS
SUBJECT  TO  TAX  UNDER  ARTICLES  NINE-A OR TWENTY-TWO OF THIS CHAPTER,
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.
                                                           LBD09341-01-5

S. 4138                             2

REFERENCED IN SUBDIVISION (D) OF THIS SECTION, TO BE COMPUTED AS HEREIN-
AFTER PROVIDED.
  (2)  THE  AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO RATA SHARE
OF THE PRODUCT, IN THE CASE OF A MEMBER OF  A  PARTNERSHIP)  OF  FIFTEEN
PERCENT AND THE QUALIFIED BIO/MED RESEARCH AND DEVELOPMENT COSTS PAID OR
INCURRED  IN THE STATE. THE CREDIT SHALL BE ALLOWED FOR THE TAXABLE YEAR
IN WHICH THE QUALIFIED BIO/MED RESEARCH AND DEVELOPMENT ACTIVITY OCCURS.
IF THE AMOUNT OF THE CREDIT IS AT LEAST ONE  MILLION  DOLLARS  BUT  LESS
THAN  FIVE  MILLION DOLLARS, THE CREDIT SHALL BE CLAIMED OVER A TWO YEAR
PERIOD BEGINNING IN THE FIRST TAXABLE YEAR IN WHICH THE  CREDIT  MAY  BE
CLAIMED  AND  IN  THE NEXT SUCCEEDING TAXABLE YEAR, WITH ONE-HALF OF THE
AMOUNT OF CREDIT ALLOWED BEING CLAIMED IN EACH YEAR. IF  THE  AMOUNT  OF
THE CREDIT IS AT LEAST FIVE MILLION DOLLARS, THE CREDIT SHALL BE CLAIMED
OVER  A  THREE  YEAR PERIOD BEGINNING IN THE FIRST TAXABLE YEAR IN WHICH
THE CREDIT MAY BE CLAIMED AND IN THE NEXT TWO SUCCEEDING TAXABLE  YEARS,
WITH ONE-THIRD OF THE AMOUNT OF THE CREDIT ALLOWED BEING CLAIMED IN EACH
YEAR.
  (3)  NO  QUALIFIED  BIO/MED  RESEARCH  AND DEVELOPMENT COSTS USED BY A
TAXPAYER EITHER AS THE BASIS FOR THE ALLOWANCE OF  THE  CREDIT  PROVIDED
FOR UNDER THIS SECTION OR USED IN THE CALCULATION OF THE CREDIT PROVIDED
FOR UNDER THIS SECTION SHALL BE USED BY SUCH TAXPAYER TO CLAIM ANY OTHER
CREDIT ALLOWED PURSUANT TO THIS CHAPTER.
  (C)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 49.
  (2) ARTICLE 22: SECTION 606: SUBSECTION (CCC).
  (D) ALLOCATION OF CREDIT. (1) THE  AGGREGATE  AMOUNT  OF  TAX  CREDITS
ALLOWED  UNDER  THIS  SECTION,  SUBDIVISION  FORTY-NINE  OF  SECTION TWO
HUNDRED TEN-B AND SUBSECTION (CCC) OF SECTION SIX HUNDRED  SIX  OF  THIS
CHAPTER IN ANY CALENDAR YEAR SHALL BE FIFTY MILLION DOLLARS IN TWO THOU-
SAND  SIXTEEN, AND EACH SUCCEEDING YEAR UP TO AND INCLUDING TWO THOUSAND
NINETEEN.
  (2) FOR THE PERIOD TWO THOUSAND SIXTEEN THROUGH TWO THOUSAND NINETEEN,
IN ADDITION TO THE AMOUNT OF CREDIT ESTABLISHED IN PARAGRAPH ONE OF THIS
SUBDIVISION, A TAXPAYER SHALL BE ALLOWED A CREDIT EQUAL TO  THE  PRODUCT
(OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER OF A PARTNER-
SHIP)  OF  FIVE PERCENT AND THE AMOUNT OF THE QUALIFIED BIO/MED RESEARCH
AND DEVELOPMENT COSTS BY A QUALIFIED BIO/MED COMPANY IN ONE OF THE COUN-
TIES SPECIFIED IN THIS PARAGRAPH. FOR PURPOSES OF THIS ADDITIONAL  CRED-
IT,  THE  SERVICES  MUST  BE  PERFORMED OR THE PERSONAL PROPERTY MUST BE
INSTALLED IN ONE OR MORE OF THE FOLLOWING COUNTIES:   ALBANY,  ALLEGANY,
BROOME,  CATTARAUGUS,  CAYUGA,  CHAUTAUQUA,  CHEMUNG, CHENANGO, CLINTON,
COLUMBIA, CORTLAND, DELAWARE, DUTCHESS, ERIE, ESSEX,  FRANKLIN,  FULTON,
GENESEE, GREENE, HAMILTON, HERKIMER, JEFFERSON, LEWIS, LIVINGSTON, MADI-
SON,  MONROE,  MONTGOMERY,  NIAGARA, ONEIDA, ONONDAGA, ONTARIO, ORLEANS,
OSWEGO, OTSEGO, RENSSELAER, SARATOGA, SCHENECTADY, SCHOHARIE,  SCHUYLER,
SENECA,  ST.  LAWRENCE,  STEUBEN,  SULLIVAN,  TIOGA,  TOMPKINS,  ULSTER,
WARREN, WASHINGTON, WAYNE, WYOMING, OR YATES. THE  AGGREGATE  AMOUNT  OF
TAX CREDITS ALLOWED PURSUANT TO THE AUTHORITY OF THIS PARAGRAPH SHALL BE
TEN  MILLION  DOLLARS  EACH  YEAR DURING THE PERIOD TWO THOUSAND SIXTEEN
THROUGH TWO THOUSAND NINETEEN OF THE ANNUAL ALLOCATION MADE AVAILABLE TO
THE PROGRAM PURSUANT TO THIS SUBDIVISION. IF THE TOTAL AMOUNT  OF  ALLO-
CATED  CREDITS  APPLIED FOR UNDER THIS PARAGRAPH IN ANY YEAR EXCEEDS THE
AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER  THIS  PARA-
GRAPH,  SUCH  EXCESS  SHALL BE TREATED AS HAVING BEEN APPLIED FOR ON THE
FIRST DAY OF THE NEXT YEAR. IF THE TOTAL AMOUNT OF ALLOCATED TAX CREDITS

S. 4138                             3

APPLIED FOR UNDER THIS PARAGRAPH AT THE CONCLUSION OF ANY YEAR  IS  LESS
THAN  TEN MILLION DOLLARS, THE REMAINDER SHALL BE TREATED AS PART OF THE
ANNUAL ALLOCATION MADE AVAILABLE TO THE PROGRAM PURSUANT TO  SUBDIVISION
(D)  OF  THIS SECTION. HOWEVER, IN NO EVENT MAY THE TOTAL OF THE CREDITS
ALLOCATED UNDER THIS PARAGRAPH EXCEED TEN MILLION DOLLARS  IN  ANY  YEAR
DURING THE PERIOD TWO THOUSAND SIXTEEN THROUGH TWO THOUSAND NINETEEN.
  S  2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
  49. BIO/MED RESEARCH AND DEVELOPMENT  INVESTMENT  CREDIT.  A  TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION 24-B OF
THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. IN NO EVENT SHALL
THE  CREDIT  ALLOWED  UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCE
THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT  PRESCRIBED  IN  PARA-
GRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE.
HOWEVER,  IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY
TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER OTHERWISE
PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF  CREDIT
THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAY-
MENT  OF TAX TO BE CREDITED IN ACCORDANCE WITH THE PROVISIONS OF SECTION
ONE  THOUSAND  EIGHTY-SIX  OF  THIS  CHAPTER.  PROVIDED,  HOWEVER,   THE
PROVISIONS  OF  SUBSECTION  (C)  OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S 3. Section 606 of the tax law is amended by adding a new  subsection
(ccc) to read as follows:
  (CCC)  BIO/MED  RESEARCH AND DEVELOPMENT INVESTMENT CREDIT. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION 24-B OF
THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. IF THE AMOUNT  OF
THE  CREDIT  ALLOWED  UNDER  THIS  SUBSECTION FOR ANY TAXABLE YEAR SHALL
EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED  AS
AN  OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE,  PROVIDED,
HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 4. This act shall take effect immediately.

co-Sponsors

2015-S4138A (ACTIVE) - Details

See Assembly Version of this Bill:: A7045
Current Committee:: Assembly Ways And Means
Law Section:: Tax Law
Laws Affected:: Add §24-b, amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S3237, A4420
2019-2020: S4904

2015-S4138A (ACTIVE) - Summary

2015-S4138A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4138A

 TITLE OF BILL :  An act to amend the tax law, in relation to the
creation of a biotechnology research and development investment tax
credit

 PURPOSE :

To incentivize the growth of the Bio/Med industry within New York
State by providing a tax credit for Bio/Med research and development
activities conducted within the state.

 SUMMARY OF PROVISIONS :

Adds a new section to the Tax Law to create a tax credit for Bio/Med
research and development activities occurring within the state for
calendar years 2017 through 2020. The credit is capped annually at $50
million. An enhanced credit is provided for activities occurring in
upstate counties. The bill also adds conforming subsections to
sections 210 and 606 of the Tax Law.

 EXISTING LAW :

The Tax Law includes a limited tax credit for investment activities.
Additionally, the Tax Law includes tax credits for certain economic
activity including brownfield remediation, film production and biofuel

production.

 JUSTIFICATION :

The Bio/Med industry is revolutionizing health care allowing people to
live healthier and longer lives. Advances in science, engineering and
genetics are rapidly being translated into medicines, precise and
innovative diagnostic tests, devices and equipment. The field is also
rapidly expanding leading to significant increased economic activity
and job growth.

Many states have sought to capitalize on the growth of the industry by
establishing targeted programs and incentives to attract investment
and expansion from Bio/Med companies. These efforts include tax
credits, grants and specialized educational and training programs.
The programs have proved successful with those states with such
programs seeing significantly greater growth than states without.

While the Bio/Med industry has a significant presence in New York
(among the top 10 states in the size of its industry and scale and
reach of its research and ranked 8th in medical technology
specifically among states), the state has not sought to take advantage
of its strategic assets including higher educational institutions,
highly skilled employees and existing Bio/Med companies (in Upstate
New York alone the industry contributes 28,000 high-skilled jobs) to
grow the industry within the state. As a result, New York has fallen
further behind leading states.

A Bio/Med research and investment tax credit will reposition New York
as an attractive state for Bio/Med investment. Research & development
tax credits are proven to spur economic activity. Studies have found
that research and development tax credits increase private research
spending, employment and wages. 70% of the funds from these tax
credits go towards labor costs and support high-tech jobs. A targeted
BiolMed research and development investment tax credit will attract
investment from the rapidly expanding and promising field.

 LEGISLATIVE HISTORY :

2015 - A.4138/A.7045 - INVESTIGATIONS/Ways & Means
 FISCAL IMPLICATIONS :

The credit is capped at $50 million per year through 2019 which will
spur economic activity and job growth which will significantly offset,
if not completely offset any loss of revenue to the state.

 EFFECTIVE DATE :
This bill shall take effect immediately.

2015-S4138A (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4138--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              March 3, 2015
                               ___________

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:

  Section 1. The tax law is amended by adding a new section 24-b to read
as follows:
  S  24-B.  BIOSCIENCE  AND  MEDICAL  TECHNOLOGY  (BIO/MED) RESEARCH AND
DEVELOPMENT TAX CREDIT.  (A) DEFINITIONS. AS USED IN THIS  SECTION,  THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (1) "QUALIFIED BIO/MED RESEARCH AND DEVELOPMENT COSTS" MEANS QUALIFIED
RESEARCH  EXPENSES AND BASIC RESEARCH PAYMENTS AS DEFINED IN SECTIONS 41
(B) AND (E) OF THE INTERNAL REVENUE CODE, EXCEPT  IT  DOES  NOT  INCLUDE
EXPENSES  INCURRED  FOR  QUALIFIED  RESEARCH OR BASIC RESEARCH CONDUCTED
OUTSIDE OF NEW YORK STATE, FOR PURPOSES OF DEVELOPING A PRODUCT OR PHAR-
MACEUTICAL, INSTRUMENT,  APPARATUS,  MACHINE,  CONTRIVANCE,  IMPLANT  OR
OTHER SIMILAR OR RELATED ARTICLE, INCLUDING A COMPONENT PART OR ACCESSO-
RY THAT ARE APPLICABLE TO THE PREVENTION, TREATMENT OR CURE OF A DISEASE
OR CONDITION OF HUMAN BEINGS.
  (2) "QUALIFIED BIO/MED COMPANY" IS A CORPORATION, PARTNERSHIP, LIMITED
PARTNERSHIP  OR  OTHER  ENTITY  WHICH  IS ENGAGED IN THE PRODUCTION OF A
PRODUCT OR PHARMACEUTICAL, INSTRUMENT, APPARATUS, MACHINE,  CONTRIVANCE,
IMPLANT  OR OTHER SIMILAR OR RELATED ARTICLE, INCLUDING A COMPONENT PART
OR ACCESSORY THAT ARE APPLICABLE TO THE PREVENTION, TREATMENT OR CURE OF
A DISEASE OR CONDITION OF HUMAN BEINGS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09341-02-6

S. 4138--A                          2

  (B) (1) ALLOWANCE OF CREDIT. A TAXPAYER WHICH IS A  QUALIFIED  BIO/MED
COMPANY,  SOLE  PROPRIETOR  OR  A  MEMBER OF A PARTNERSHIP, AND WHICH IS
SUBJECT TO TAX UNDER ARTICLES NINE-A  OR  TWENTY-TWO  OF  THIS  CHAPTER,
SHALL  BE  ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO THE PROVISIONS
REFERENCED IN SUBDIVISION (D) OF THIS SECTION, TO BE COMPUTED AS HEREIN-
AFTER PROVIDED.
  (2)  THE  AMOUNT OF THE CREDIT SHALL BE THE PRODUCT (OR PRO RATA SHARE
OF THE PRODUCT, IN THE CASE OF A MEMBER OF  A  PARTNERSHIP)  OF  FIFTEEN
PERCENT AND THE QUALIFIED BIO/MED RESEARCH AND DEVELOPMENT COSTS PAID OR
INCURRED  IN THE STATE. THE CREDIT SHALL BE ALLOWED FOR THE TAXABLE YEAR
IN WHICH THE QUALIFIED BIO/MED RESEARCH AND DEVELOPMENT ACTIVITY OCCURS.
IF THE AMOUNT OF THE CREDIT IS AT LEAST ONE  MILLION  DOLLARS  BUT  LESS
THAN  FIVE  MILLION DOLLARS, THE CREDIT SHALL BE CLAIMED OVER A TWO YEAR
PERIOD BEGINNING IN THE FIRST TAXABLE YEAR IN WHICH THE  CREDIT  MAY  BE
CLAIMED  AND  IN  THE NEXT SUCCEEDING TAXABLE YEAR, WITH ONE-HALF OF THE
AMOUNT OF CREDIT ALLOWED BEING CLAIMED IN EACH YEAR. IF  THE  AMOUNT  OF
THE CREDIT IS AT LEAST FIVE MILLION DOLLARS, THE CREDIT SHALL BE CLAIMED
OVER  A  THREE  YEAR PERIOD BEGINNING IN THE FIRST TAXABLE YEAR IN WHICH
THE CREDIT MAY BE CLAIMED AND IN THE NEXT TWO SUCCEEDING TAXABLE  YEARS,
WITH ONE-THIRD OF THE AMOUNT OF THE CREDIT ALLOWED BEING CLAIMED IN EACH
YEAR.
  (3)  NO  QUALIFIED  BIO/MED  RESEARCH  AND DEVELOPMENT COSTS USED BY A
TAXPAYER EITHER AS THE BASIS FOR THE ALLOWANCE OF  THE  CREDIT  PROVIDED
FOR UNDER THIS SECTION OR USED IN THE CALCULATION OF THE CREDIT PROVIDED
FOR UNDER THIS SECTION SHALL BE USED BY SUCH TAXPAYER TO CLAIM ANY OTHER
CREDIT ALLOWED PURSUANT TO THIS CHAPTER.
  (C)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
  (1) ARTICLE 9-A: SECTION 210-B: SUBDIVISION 49.
  (2) ARTICLE 22: SECTION 606: SUBSECTION (CCC).
  (D) ALLOCATION OF CREDIT. (1) THE  AGGREGATE  AMOUNT  OF  TAX  CREDITS
ALLOWED  UNDER  THIS  SECTION,  SUBDIVISION  FORTY-NINE  OF  SECTION TWO
HUNDRED TEN-B AND SUBSECTION (CCC) OF SECTION SIX HUNDRED  SIX  OF  THIS
CHAPTER IN ANY CALENDAR YEAR SHALL BE FIFTY MILLION DOLLARS IN TWO THOU-
SAND  SIXTEEN, AND EACH SUCCEEDING YEAR UP TO AND INCLUDING TWO THOUSAND
NINETEEN.
  (2) FOR THE PERIOD TWO THOUSAND SEVENTEEN THROUGH TWO THOUSAND TWENTY,
IN ADDITION TO THE AMOUNT OF CREDIT ESTABLISHED IN PARAGRAPH ONE OF THIS
SUBDIVISION, A TAXPAYER SHALL BE ALLOWED A CREDIT EQUAL TO  THE  PRODUCT
(OR PRO RATA SHARE OF THE PRODUCT, IN THE CASE OF A MEMBER OF A PARTNER-
SHIP)  OF  FIVE PERCENT AND THE AMOUNT OF THE QUALIFIED BIO/MED RESEARCH
AND DEVELOPMENT COSTS BY A QUALIFIED BIO/MED COMPANY IN ONE OF THE COUN-
TIES SPECIFIED IN THIS PARAGRAPH. FOR PURPOSES OF THIS ADDITIONAL  CRED-
IT,  THE  SERVICES  MUST  BE  PERFORMED OR THE PERSONAL PROPERTY MUST BE
INSTALLED IN ONE OR MORE OF THE FOLLOWING COUNTIES:   ALBANY,  ALLEGANY,
BROOME,  CATTARAUGUS,  CAYUGA,  CHAUTAUQUA,  CHEMUNG, CHENANGO, CLINTON,
COLUMBIA, CORTLAND, DELAWARE, DUTCHESS, ERIE, ESSEX,  FRANKLIN,  FULTON,
GENESEE, GREENE, HAMILTON, HERKIMER, JEFFERSON, LEWIS, LIVINGSTON, MADI-
SON,  MONROE,  MONTGOMERY,  NIAGARA, ONEIDA, ONONDAGA, ONTARIO, ORLEANS,
OSWEGO, OTSEGO, RENSSELAER, SARATOGA, SCHENECTADY, SCHOHARIE,  SCHUYLER,
SENECA,  ST.  LAWRENCE,  STEUBEN,  SULLIVAN,  TIOGA,  TOMPKINS,  ULSTER,
WARREN, WASHINGTON, WAYNE, WYOMING, OR YATES. THE  AGGREGATE  AMOUNT  OF
TAX CREDITS ALLOWED PURSUANT TO THE AUTHORITY OF THIS PARAGRAPH SHALL BE
TEN  MILLION  DOLLARS EACH YEAR DURING THE PERIOD TWO THOUSAND SEVENTEEN
THROUGH TWO THOUSAND TWENTY OF THE ANNUAL ALLOCATION MADE  AVAILABLE  TO
THE  PROGRAM  PURSUANT TO THIS SUBDIVISION. IF THE TOTAL AMOUNT OF ALLO-

S. 4138--A                          3

CATED CREDITS APPLIED FOR UNDER THIS PARAGRAPH IN ANY YEAR  EXCEEDS  THE
AGGREGATE  AMOUNT  OF TAX CREDITS ALLOWED FOR SUCH YEAR UNDER THIS PARA-
GRAPH, SUCH EXCESS SHALL BE TREATED AS HAVING BEEN APPLIED  FOR  ON  THE
FIRST DAY OF THE NEXT YEAR. IF THE TOTAL AMOUNT OF ALLOCATED TAX CREDITS
APPLIED  FOR  UNDER THIS PARAGRAPH AT THE CONCLUSION OF ANY YEAR IS LESS
THAN TEN MILLION DOLLARS, THE REMAINDER SHALL BE TREATED AS PART OF  THE
ANNUAL  ALLOCATION MADE AVAILABLE TO THE PROGRAM PURSUANT TO SUBDIVISION
(D) OF THIS SECTION. HOWEVER, IN NO EVENT MAY THE TOTAL OF  THE  CREDITS
ALLOCATED  UNDER  THIS  PARAGRAPH EXCEED TEN MILLION DOLLARS IN ANY YEAR
DURING THE PERIOD TWO THOUSAND SEVENTEEN THROUGH TWO THOUSAND TWENTY.
  S 2. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 49 to read as follows:
  49.  BIO/MED  RESEARCH  AND  DEVELOPMENT INVESTMENT CREDIT. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  SECTION  TWEN-
TY-FOUR-B  OF  THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. IN
NO EVENT SHALL THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE
YEAR REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED
IN PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN  OF  THIS
ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT OR IF THE TAXPAYER
OTHERWISE PAYS TAX BASED ON THE FIXED DOLLAR MINIMUM AMOUNT, ANY  AMOUNT
OF  CREDIT  THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS
AN OVERPAYMENT OF TAX TO BE CREDITED IN ACCORDANCE WITH  THE  PROVISIONS
OF  SECTION  ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,
THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S 3. Section 606 of the tax law is amended by adding a new  subsection
(ccc) to read as follows:
  (CCC)  BIO/MED  RESEARCH AND DEVELOPMENT INVESTMENT CREDIT. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  SECTION  TWEN-
TY-FOUR-B  OF  THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. IF
THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR  ANY  TAXABLE
YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE
TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORD-
ANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTI-
CLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
  S 4. This act shall take effect immediately.

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Senate Bill S4138A

Sponsored By

Archive: Last Bill Status - In Assembly Committee

Jun 15, 2016 - Floor Vote

Floor Vote: Jun 15, 2016

Jun 15, 2016 - Rules Committee Vote

Rules Committee Vote: Jun 15, 2016

Bill Amendments

co-Sponsors

2015-S4138 - Details

2015-S4138 - Summary

2015-S4138 - Sponsor Memo

2015-S4138 - Bill Text download pdf

co-Sponsors

2015-S4138A (ACTIVE) - Details

2015-S4138A (ACTIVE) - Summary

2015-S4138A (ACTIVE) - Sponsor Memo

2015-S4138A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4138A

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Sponsored By

Michael H. Ranzenhofer

Archive: Last Bill Status - In Assembly Committee

Bill Amendments

co-Sponsors

Robert G. Ortt

2015-S4138 - Details

2015-S4138 - Summary

2015-S4138 - Sponsor Memo

2015-S4138 - Bill Text download pdf

co-Sponsors

Robert G. Ortt

2015-S4138A (ACTIVE) - Details

2015-S4138A (ACTIVE) - Summary

2015-S4138A (ACTIVE) - Sponsor Memo

2015-S4138A (ACTIVE) - Bill Text download pdf

Comments