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:
- Have 100 full-time employees or less, with at least 75% of those employees employed in New York City;
- Have a ratio of research and development funds to net sales which equals or exceed six percent (6%);
- Have gross revenues which did not exceed twenty million dollars for the immediately preceding year.
- 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;
- 9% of qualified research expenses paid or incurred by the taxpayer;
- 100% of high-technology training expenses paid or incurred by the taxpayer, limited to $4,000 per employee per year.
The amount of the credit is the sum of the following amounts:
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.
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