What's happening
This bill creates a tax credit of up to $1,500 for patent-related fees for New York taxpayers, starting in 2019.
Why it matters
This bill helps reduce the financial barrier to obtaining a patent by reimbursing 100% of application, search, and examination fees, up to $1,500, making it easier for inventors and small businesses to protect their ideas.
By allowing the credit to be refundable (excess credited or refunded), it ensures that even those with little or no tax liability can benefit, which is especially meaningful for startups and early-stage innovators.
The bill prohibits double dipping—if a taxpayer uses another tax credit for the same patent fees, they cannot use this one—preventing abuse and ensuring fair use of state funds.
The credit applies retroactively to tax years starting January 1, 2019, potentially allowing eligible taxpayers to claim refunds for fees paid in previous years, providing immediate relief for recent patent applicants.
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Who cares
Headline styles
Tax Credit for Patent Fees
Plain English, a few words. Used as the page title.
Sponsors
History
- Held for consideration in ways and means
- Referred to ways and means
- Referred to ways and means
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1012
2019-2020 Regular Sessions
IN ASSEMBLY
January 14, 2019
Introduced by M. of A. KOLB, PALMESANO, RAIA, HAWLEY, BARCLAY, BLANKEN- BUSH -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to patent-NY credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 606 of the tax law is amended by adding a new subsection (jjj) to read as follows:
(jjj) Patent-NY tax credit. (1) General. A taxpayer shall be allowed a credit against the tax imposed by this article equal to one hundred percent of patent fees, but not to exceed fifteen hundred dollars.
(2) Definitions. For the purposes of this subsection, the term "patent fee" shall mean patent application fees, patent search fees, and patent examination fees.
(3) 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 accordance with the provisions of section six hundred eighty-six of this article, provided, however, no interest shall be paid thereon.
(4) No credit shall be allowed under this subsection to a taxpayer for any patent fee if the taxpayer claims any other credit under this article for such patent.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2019.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04301-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.