S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4420--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 2, 2017
                                ___________
 
 Introduced  by  M. of A. SCHIMMINGER, JAFFEE, MAGNARELLI, BLAKE, STIRPE,
   RIVERA, ENGLEBRIGHT, SKARTADOS, VANEL -- Multi-Sponsored by --  M.  of
   A.  ABBATE,  COOK,  SOLAGES,  THIELE  -- read once and referred to the
   Committee on Ways and Means -- recommitted to the  Committee  on  Ways
   and  Means  in  accordance  with  Assembly Rule 3, sec. 2 -- 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:
   § 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.
              

                                                            LBD06143-03-8

 A. 4420--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 53.
   (2) ARTICLE 22: SECTION 606: SUBSECTION (CCC).
   (D) ALLOCATION OF CREDIT. (1) THE  AGGREGATE  AMOUNT  OF  TAX  CREDITS
 ALLOWED  UNDER  THIS  SECTION,  SUBDIVISION  FIFTY-THREE  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 EIGHTEEN, AND EACH SUCCEEDING YEAR UP TO AND INCLUDING TWO THOUSAND
 TWENTY-ONE.
   (2)  FOR THE PERIOD TWO THOUSAND NINETEEN THROUGH TWO THOUSAND TWENTY-
 TWO, 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
 PARTNERSHIP) 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 COUNTIES SPECIFIED IN THIS PARAGRAPH. FOR  PURPOSES  OF  THIS  ADDI-
 TIONAL  CREDIT,  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, LIVING-
 STON, MADISON, 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  PARA-
 GRAPH SHALL BE TEN MILLION DOLLARS EACH YEAR DURING THE PERIOD TWO THOU-
 SAND  NINETEEN  THROUGH TWO THOUSAND TWENTY-TWO OF THE ANNUAL ALLOCATION
 MADE AVAILABLE TO THE PROGRAM PURSUANT TO THIS SUBDIVISION. IF THE TOTAL

 A. 4420--A                          3

 AMOUNT OF ALLOCATED CREDITS APPLIED FOR UNDER THIS PARAGRAPH IN ANY YEAR
 EXCEEDS THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED FOR SUCH YEAR  UNDER
 THIS  PARAGRAPH, 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 NINETEEN THROUGH TWO THOUSAND
 TWENTY-TWO.
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 53 to read as follows:
   53.  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.
   § 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.
   § 4. This act shall take effect immediately.