NY State Senate Bill 2017-S3237

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations 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
Feb 09, 2018	print number 3237a
Feb 09, 2018	amend and recommit to investigations and government operations
Jan 03, 2018	referred to investigations and government operations
May 02, 2017	reported and committed to finance
Jan 20, 2017	referred to investigations and government operations

Votes

- May 2, 2017 - Investigations And Government Operations Committee Vote
  S3237
  
  6
  
  Aye
  
  0
  
  Nay
  
  3
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Investigations And Government Operations Committee Vote: May 2, 2017
      
      aye (6)
      
      Carlucci
      
      Diaz
      
      Golden
      
      Lanza
      
      Murphy
      
      O'Mara
      
      aye wr (3)
      
      Hoylman-Sigal
      
      Phillips
      
      Squadron

Bill Amendments

Original

A (Active)

co-Sponsors

2017-S3237 - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §24-b, amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S4138
2019-2020: S4904

2017-S3237 - 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.

2017-S3237 - Sponsor Memo

                                 BILL NUMBER:  S3237

 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 2018 through 2021. 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. Seventy percent 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 :

2015 - A.4138/A.7045 - INVESTIGATIONS/Ways & Means
2015-16 - S.4138/A.7045 - PASSED SENATE/Ways & Means

 FISCAL IMPLICATIONS :

The credit is capped at $50 million per year through 2021 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.

2017-S3237 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3237
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2017
                                ___________
 
 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:
   § 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.

                                                            LBD06143-01-7

 S. 3237                             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  SEVENTEEN,  AND EACH SUCCEEDING YEAR UP TO AND INCLUDING TWO THOU-
 SAND TWENTY.
   (2) FOR THE PERIOD TWO THOUSAND EIGHTEEN THROUGH TWO THOUSAND  TWENTY-
 ONE, 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 EIGHTEEN THROUGH TWO THOUSAND TWENTY-ONE OF THE  ANNUAL  ALLOCATION
 MADE AVAILABLE TO THE PROGRAM PURSUANT TO THIS SUBDIVISION. IF THE TOTAL
 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

 S. 3237                             3

 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 EIGHTEEN  THROUGH  TWO  THOUSAND
 TWENTY-ONE.
   §  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.
   §  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.

co-Sponsors

2017-S3237A (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §24-b, amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S4138
2019-2020: S4904

2017-S3237A (ACTIVE) - Summary

2017-S3237A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3237A

SPONSOR: RANZENHOFER
 
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 activ-
ities 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 2019 through 2022. 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 inno-
vative diagnostic tests, devices and equipment. The field is also rapid-
ly 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 employ-
ees and existing Bio/Med companies (in Upstate New York alone the indus-
try 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. Seventy percent of the funds from these tax cred-
its 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:

2015 - A.4138/A.7045 - INVESTIGATIONS/Ways & Means
2016 - S.4138/A.7045 - PASSED SENATE/Ways & Means
2017 - s.3237/a.4420 - FINANCE/Ways & Means

 
FISCAL IMPLICATIONS:

The credit is capped at $50 million per year through 2022 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.

2017-S3237A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3237--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2017
                                ___________
 
 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:
   §  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.
                                                            LBD06143-02-8

 S. 3237--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

 S. 3237--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.

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Senate Bill S3237

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

May 2, 2017 - Investigations And Government Operations Committee Vote

Investigations And Government Operations Committee Vote: May 2, 2017

Bill Amendments

co-Sponsors

2017-S3237 - Details

2017-S3237 - Summary

2017-S3237 - Sponsor Memo

2017-S3237 - Bill Text download pdf

co-Sponsors

2017-S3237A (ACTIVE) - Details

2017-S3237A (ACTIVE) - Summary

2017-S3237A (ACTIVE) - Sponsor Memo

2017-S3237A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3237

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Sponsored By

Michael H. Ranzenhofer

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Bill Amendments

co-Sponsors

Robert G. Ortt

2017-S3237 - Details

2017-S3237 - Summary

2017-S3237 - Sponsor Memo

2017-S3237 - Bill Text download pdf

co-Sponsors

Robert G. Ortt

2017-S3237A (ACTIVE) - Details

2017-S3237A (ACTIVE) - Summary

2017-S3237A (ACTIVE) - Sponsor Memo

2017-S3237A (ACTIVE) - Bill Text download pdf

Comments