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NYC BioTech Tax Credit

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Finance, Department of City
The Biotechnology Tax Credit allows investors and owners of qualified emerging technology companies (QETCs) focused on biotechnology, to claim a tax credit against the General Corporation Tax and Unincorporated Business Tax for amounts paid or incurred for certain facilities, operations, and employee training in New York City.

A QETC is a company located in New York City that has total annual product sales of $10 million or less, and meets either of the following criteria: Its primary products or services are classified as emerging technologies; or It has research and development (R&D) activities in New York City, and its ratio of R&D funds to net sales equals or exceeds the average ratio for all surveyed companies classified (as determined by the National Science Foundation).

Eligibility: To Claim the Biotechnology Tax Credit the taxpayer must also meet the following criteria:
  1. Have 100 full-time employees or less, with at least 75% of those employees employed in New York City;
  2. Have a ratio of research and development funds to net sales which equals or exceed six percent (6%);
  3. Have gross revenues which did not exceed twenty million dollars for the immediately preceding year.

  4. The amount of the credit is the sum of the following amounts:
    1. 18% of the cost or other basis of research and development property, and certain other costs and fees incurred in connection with emerging technology activities;
    2. 9% of qualified research expenses paid or incurred by the taxpayer;
    3. 100% of high-technology training expenses paid or incurred by the taxpayer, limited to $4,000 per employee per year.

    4. The total amount of credit allowable to a taxpayer cannot be more than $250,000 per year. Additional details on emerging technology definitions and eligibility requirements are available in the NYC Department of Finance Biotechnology Tax Credit Application Definitions and Instructions, linked below.
Next: Apply

NYC Department of Finance (DOF)
Biotechnology Credit Application Section
59 Maiden Lane, 20th Floor
New York, NY 10038
For further assistance, please call 311 and ask for: NYC Biotechnology Credit
Website: http://www.nyc.gov/dof

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