Bill Text: NY S00303 | 2025-2026 | General Assembly | Introduced

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Bill Title: Enacts the "empire innovation act"; provides that a participant in the excelsior jobs program shall be eligible to claim a credit equal to the portion of the full cost of the participant's research and development expenses incurred that relates to the participant's research and development expenditures in New York state during the taxable year; provided however, if the participant receives a federal research and development tax credit calculated on the full cost of the participant's research and development expenses that relates to the participant's research and development expenditures in New York state during the taxable year, then said participant shall only be eligible to claim a credit equal to fifty percent of the portion of the participant's federal research and development tax credit that relates to the participant's research and development expenditures in New York state during the taxable year.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-01-08 - REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS [S00303 Detail]

Download: New_York-2025-S00303-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                           303

                               2025-2026 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 8, 2025
                                       ___________

        Introduced  by  Sen.  RHOADS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Commerce, Economic  Devel-
          opment and Small Business

        AN ACT to amend the economic development law, in relation to the excels-
          ior research and development tax credit

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. This act shall be known and may be  cited  as  the  "empire
     2  innovation act".
     3    §  2.  Subdivision 3 of section 355 of the economic development law as
     4  amended by chapter 494 of the laws  of  2022,  is  amended  to  read  as
     5  follows:
     6    3.  Excelsior research and development tax credit component. A partic-
     7  ipant in the excelsior jobs program shall be eligible to claim a  credit
     8  equal  to  [fifty  percent of] the portion of [the participant's federal
     9  research and development tax credit that relates  to  the  participant's
    10  research and development expenditures in New York state during the taxa-
    11  ble year; provided however,] the full cost of the participant's research
    12  and  development  expenses  incurred  that  relates to the participant's
    13  research and development expenditures in New York state during the taxa-
    14  ble year; provided  however,  if  the  participant  receives  a  federal
    15  research  and  development tax credit calculated on the full cost of the
    16  participant's research and development  expenses  that  relates  to  the
    17  participant's  research  and  development expenditures in New York state
    18  during the taxable year, then said participant shall only be eligible to
    19  claim a credit equal to fifty percent of  the  portion  of  the  partic-
    20  ipant's  federal research and development tax credit that relates to the
    21  participant's research and development expenditures in  New  York  state
    22  during  the taxable year; if not a green project, the excelsior research
    23  and development tax credit shall not exceed six percent of the qualified

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01204-01-5
        S. 303                              2

     1  research  and  development  expenditures  attributable   to   activities
     2  conducted  in  New  York  state, or, if a green project or a Green CHIPS
     3  project, the excelsior research and development  tax  credit  shall  not
     4  exceed  eight  percent  of  the  research  and  development expenditures
     5  attributable to activities conducted in New York state. If  the  federal
     6  research  and  development  credit  has  expired,  then the research and
     7  development expenditures relating to the federal research  and  develop-
     8  ment  credit shall be calculated as if the federal research and develop-
     9  ment credit structure and definition in effect in two thousand nine were
    10  still in effect. Notwithstanding any other provision of this chapter  to
    11  the  contrary,  research  and  development  expenditures  in this state,
    12  including salary or wage expenses  for  jobs  related  to  research  and
    13  development  activities  in this state, may be used as the basis for the
    14  excelsior research and development tax credit component and  the  quali-
    15  fied  emerging  technology  company  facilities, operations and training
    16  credit under the tax law.
    17    § 3. This act shall take effect immediately.