Bill Text: NY S07671 | 2023-2024 | 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) 2024-01-03 - REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS [S07671 Detail]

Download: New_York-2023-S07671-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7671

                               2023-2024 Regular Sessions

                    IN SENATE

                                   September 27, 2023
                                       ___________

        Introduced  by  Sen.  RHOADS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        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
    24  research   and   development  expenditures  attributable  to  activities
    25  conducted in New York state, or, if a green project  or  a  Green  CHIPS

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11906-02-3
        S. 7671                             2

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