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Sponsors
Senator · Senate District 61
1 Co-sponsor
History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 62–0
- Ordered to third reading cal.1762
- Committee discharged and committed to rules
- Print number 4138a
- Amend and recommit to investigations and government operations
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Creates a biotechnology research and development investment tax credit
In Assembly Committee · Ways And Means · Sponsor Robin Schimminger
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
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 2017 through 2020. 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. 70% of the funds from these tax credits go towards labor costs and support high-tech jobs. A targeted BiolMed 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 FISCAL IMPLICATIONS :
The credit is capped at $50 million per year through 2019 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.