senate Bill S2408

Expands the availability of tax credit refunds for start-up high technology companies

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 20 / Jan / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Relates to tax credits for start-up high technology companies to allow such companies in existence for 8 or less taxable years to receive refunds of unused investment tax credit carry forwards.

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Bill Details

See Assembly Version of this Bill:
A7636
Versions:
S2408
Legislative Cycle:
2011-2012
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง210, Tax L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S1229, A3707
2007-2008: A7095

Sponsor Memo

BILL NUMBER:S2408

TITLE OF BILL:
An act
to amend the tax law, in relation to start-up high technology companies

PURPOSE OR GENERAL IDEA OF BILL:
This legislation expands the availability of tax credit refunds for
start-up technology companies to help them overcome certain barriers
to the commercialization within New York State of scientific and
technological discoveries from nonprofit research entities located in
the State.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Amends subparagraph 3 of paragraph (j) of subdivision 12 of
section 210 of the tax law, as amended by section 1 of part CC of
chapter 85 of the laws of 2002 to include that if a taxpayer is a
start-up high technology company or a small high technology company
as defined in section 3102 of the public authorities law, then they
shall be allowed a credit for eight taxable years. current law would
only allow these companies to obtain a refund of ITC carry forwards
if they had been in business for five or less taxable years.

Section 2: Establishes the effective date.

JUSTIFICATION:
One of the cornerstones of economic growth in New York State is
research and development in science and technology at nonprofit
research institutions in the State that may have commercial potential
and that can result in the formation of knowledge-based industries.
Such industries generate products and processes with significant
national and international markets which lead to increased State
exports and the creation of long-term jobs with good wages and
benefits. However, the economic benefits of R&D at nonprofit research
institutions can be lost to the State if the intellectual property
rights resulting from the R&D are licensed to companies that use such
rights to produce products or services outside of New York State.
This bill would encourage the development and growth of companies
that commercialize on R&D discoveries from nonprofit research
institutions in the State.
A small high-technology company is a company that produces new and
innovative emerging technology products or services; has 100 or fewer
employees, at least 80% of whom work in New York state; has, together
with its affiliates, gross revenues of $5 million or less on a
consolidated basis; and, has an agreement or contract to purchase
intellectual property rights created or developed at a nonprofit
research institution in New York State for the purpose of
commercializing such property in facilities located in the State.

PRIOR LEGISLATIVE HISTORY:
Passed Senate in 2010 - S.1229

FISCAL IMPLICATIONS:
No fiscal impact in
the current year, two million dollars when fully implemented.


EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become law and shall apply to taxable
years beginning on or after such date.

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

                                  2408

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 20, 2011
                               ___________

Introduced  by Sen. GRISANTI -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation  to  start-up  high  technology
  companies

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.   Subparagraph 3 of paragraph  (j)  of  subdivision  12  of
section  210 of the tax law, as amended by section 1 of part CC of chap-
ter 85 of the laws of 2002, is amended to read as follows:
  (3) has been subject to tax under this  article  for  more  than  five
taxable  years (excluding short taxable years) PROVIDED, HOWEVER, IF THE
TAXPAYER IS A START-UP HIGH TECHNOLOGY COMPANY OR A SMALL HIGH TECHNOLO-
GY COMPANY PURSUANT TO THE  PROVISIONS  OF  SECTION  THIRTY-ONE  HUNDRED
TWO-E  OF  THE  PUBLIC  AUTHORITIES  LAW, THE REFERENCE TO "FIVE TAXABLE
YEARS" IN THE PRECEDING SENTENCE SHALL BE READ AS "EIGHT TAXABLE YEARS".
  S 2. This act shall take effect on the first of January next  succeed-
ing  the  date  on  which  it shall have become a law and shall apply to
taxable years beginning on or after such date.





 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07931-01-1

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