BILL NUMBER:S7462

TITLE OF BILL:

An act
to amend the tax law, in relation to extending the authorization for any
city having a population of one million or more to provide a
biotechnology credit against the general corporation tax, unincorporated
business tax, and banking corporation tax of such city

SUMMARY OF PROVISIONS:

The bill amends paragraph 5 of subdivision d of section 1201-a
of the tax law to allow the City of New York to extend its existing
Biotechnology Credit for another three years from January 1, 2013
through December 31, 2015.

JUSTIFICATION:

With 9 world-class research institutions, 26 medical centers, 175
hospitals, and an unparalleled talent pool, New York City has a
natural advantage in the bioscience industry. Yet it lags behind
other cities, such as Boston and San Diego, in the commercialization
of new technologies. The credit targets the first state of
commercialization, where the discoveries of basic science are
investigated for their commercial properties. The credit is part of a
              

policy to create an industry with sufficient size and density such
that it becomes a good place to make a career in biotech and to
locate the kind of ancillary services that the industry needs. This
credit works in conjunction with the recent development of laboratory
space at the East River Science Park, and BioBAT at the Brooklyn Army
Terminal. These spaces, along with other facilities, provides
approximately 2 million square feet of laboratory space in the City.
The credit is complementary to New York State's Qualified Emerging
Technology Companies Credit. For tax year 2010 the city received 23
applications for $2,050,565 in biotechnology credits.

A taxpayer is entitled to a credit if the company: 1) is a qualified
emerging technology company engaging in biotechnologies, 2) has no
more than one hundred full-time employees, of which at least
seventy-five percent are employed in the city, 3) has a ratio of
research and development funds to net sales of at least six percent,
4) has gross revenues not exceeding twenty million dollars, including
affiliates, and 5) has annual sales not exceeding ten million dollars.

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

Immediately.