What's happening
This bill increases the Excelsior research and development tax credit cap from 6% to 20% of qualified expenditures in New York.
Why it matters
Makes New York’s R&D tax credit much more generous. by increasing the maximum credit from 6% to 20% of eligible in-state research expenditures, potentially making NY more attractive for high-tech and innovation-driven firms.
Could significantly lower the after-tax cost of research for companies. already in the Excelsior Jobs Program, possibly encouraging both retention and expansion of R&D activity within the state.
May shift the economic development landscape. , giving New York a competitive edge over other states in recruiting or retaining companies with heavy research operations, but also potentially increasing state tax expenditure on business incentives.
Impacts a broad range of research-related jobs and salaries. by allowing these expenses to count toward the higher credit, which could have downstream effects on employment, wages, and local economies in sectors reliant on R&D.
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Who cares
Headline styles
Increase R&D Tax Credit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to commerce, economic development and small business
- Referred to commerce, economic development and small business
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5220
2019-2020 Regular Sessions
IN SENATE
April 16, 2019
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business
AN ACT to amend the economic development law, in relation to increasing the excelsior research and development tax credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 3 of section 355 of the economic development law, as amended by section 1 of part YY of chapter 59 of the laws of 2017, is amended to read as follows:
3. Excelsior research and development tax credit component. A participant in the excelsior jobs program shall 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; provided however, the excelsior research and development tax credit shall not exceed [six] twenty percent of the qualified research and development expenditures attributable to activities conducted in New York state. If the federal research and development credit has expired, then the research and development expenditures relating to the federal research and development credit shall be calculated as if the federal research and development credit structure and definition in effect in two thousand nine were still in effect. Notwithstanding any other provision of this chapter to the contrary, research and development expenditures in this state, including salary or wage expenses for jobs related to research and development activities in this state, may be used as the basis for the excelsior research and development tax credit component and the qualified emerging technology company facilities, operations and training credit under the tax law.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04156-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the economic development law, in relation to increasing the excelsior research and development tax credit
Purpose
The purpose of this bill is to incentivize research and development expenditures in New York State by increasing the available tax credit from 6% to 20%.
Summary of specific provisions
Section 1 amends section 355 subsection 3 of the economic development law to increase the excelsior research and development tax credit.
Justification
In recent years it has become increasingly difficult for New York State to compete on a global scale in high-tech industry. The United States has faced a decline compared to other nations, including our neighbors to the north in Canada who provide generous incentives to attract high- tech industry and Research and Development. For example, in Ontario, a short drive from Western New York, there are federal and local tax cred- its, totaling more than 50%, for firms investing in research and devel- opment.
This type of incentive based economic policy is a central factor in innovation and technological change, the main byproduct of the research and development industry. In addition to new and improved products and services, higher productivity and lower prices, research and development fosters high levels of innovation, correlated to higher levels of growth. Devoting funding to research and development has lead to every- thing from small startups to large scale growth in high tech industries.
In order for New York State to become competitive again, we must fosters innovation and growth. This bill takes an already existing program, the Excelsior Research and Development tax credit, and further incentivizes firms to locate in New York by increasing this tax credit from 6% to 20%. Research and development is a driver of economic development and innovation all over the world. Economic growth is dependent on our capacity to innovate and build. Long-term investments in research and development plays an crucially important role in this process.
Prior legislative history
New Bill.
Fiscal implications
TBD
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.