New York R&D Tax Credits

New York provides two separate research and development tax credits:

• ‍The Excelsior Research and Development Tax credit is refundable and equal to 50% of a qualifying entity's corresponding federal research and development tax credit, subject to a limit of up to 8% of QREs attributable to New York activity (e.g. If the federal credit is $100,000, then the Excelsior credit is $50,000 maximum. If the taxpayer only has $75,000 in New York QREs => Excelsior R&D credit is capped at $75K*.08 = $6,000). Applicants must operate predominately in specific industries that create a minimum number of new jobs for the strategic industry, or retain jobs and make significant capital investments.

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• ‍The Life Sciences R&D Tax Credit is equal to either 15% or 20% of the life science company’s QREs in New York State for a company that employs more than, or less than, 10 persons, respectively. The credit is allowed for up to three consecutive years and is limited to $500,000 per year ($1.5 million lifetime cap). The state will issue a Certificate of Tax Credit showing the amount of tax credit allowed and the tax year the credit may be claimed.  A qualified life sciences company must be a new business.

Learn more about New York's R&D Tax Credit law here, here, and here.

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R&D Tax Credit Available:

Yes

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Eligible Entities:

C-Corporation, S-Corporations, LLCs, Partnerships

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Deadline for Tax Filing:

Due with New York Tax Return

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Data Required to Compute Credit:

Claim Period New York Qualified R&D Expenses (QREs)

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Specific Items to Note:

• The Life Sciences tax credit does NOT include Contract Research expenses in the quantification of QREs.

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