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The Life Sciences Research and Development Tax Credit Program, administered by Empire State Development (ESD), incentivizes new life sciences businesses to locate, invent, commercialize, and produce in New York State by providing fully refundable credits for qualified research expenditures (QREs) conducted within the state. Enacted to bolster innovation in biotechnology, pharmaceuticals, and related fields, although inspired by federal R&D concepts, New York’s Life Sciences R&D credit uses its own definitions and excludes categories such as contract research.
Eligibility centers on new life sciences businesses performing qualified research in New York, with credits tied to employee count and QREs. Businesses must obtain ESD certification and meet federal-style innovation criteria under IRC §41, adapted for state activities.
QREs must be incurred in New York State on or after January 1, 2018, and align with federal definitions excluding contract research payments.
New York's program uses a straightforward fixed-rate method on total NY QREs—no incremental base or alternative simplified credit (ASC) is required. The credit is calculated annually and claimed for up to three consecutive years upon ESD approval.
New York's Life Sciences R&D credit features tailored provisions for emerging biotech and pharma firms, emphasizing immediate refunds and sector focus to drive innovation.
A New York-based medical device startup secured $1.2 million in state credits over three years to fuel prototype development.
The Life Sciences Research and Development Tax Credit Program offers a fully refundable credit of 15% (10+ employees) or 20% (less than 10 employees) on NY QREs for new life sciences businesses, capped at $500,000 annually and $1.5M lifetime, administered by Empire State Development.
Qualified activities include developing or improving life sciences products/processes (e.g., biopharma trials, genomics tools) meeting IRC §41's four-part test, performed in NY. Strike Tax identifies and documents eligible projects.
For $3 million in NY QREs with less than 10 employees, you could save up to $500,000 (capped), plus federal credits. Use Strike Tax’s R&D Credit Calculator for personalized estimates.
Yes, fully refundable immediately if exceeding liability - perfect for cash-strapped innovators. No carryforward required, unlike nonrefundable programs. Strike Tax maximizes refund timing.
Submit ESD application (PDF + Excel) with QRE details; receive certificate for tax return filing. Applications processed first-come until $10M cap. Strike Tax handles certification and compliance.
Yes, stack the 15-20% state credit with federal R&D credits often range from 14% to 20% of qualified expenses depending on method on the same NY QREs for amplified savings. Strike Tax optimizes dual claims.
Fewer than 10 full-time NY employees qualifies for 20%; 10 or more gets 15%. Employee count is based on total full-time employees of the business, verified by ESD.
No, contract payments to third parties are excluded - focus on in-house wages and supplies for maximum credit. Strike Tax reallocates expenses strategically.
No major changes; businesses may claim the credit for up to three consecutive years once certified. Federal Form 6765 updates (Section G for components greater than $10K) impact documentation - Strike Tax ensures compliance.
High refund rates and caps support early-stage funding in a hub like NYC, with $10M annual pool driving $100M+ in sector investment since inception. Strike Tax tailors claims for biotech.
Use our calculator to estimate your potential federal and state benefits.
Schedule a consultation to structure your life sciences research activities.
Connect with us to find out how R&D tax credits can boost your organization’s bottom line.
To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.
Download our R&D Tax Credit Calculator for Android to see how much you can receive from your qualified R&D tax credit expenses.
The Life Sciences Research and Development Tax Credit Program offers a fully refundable credit of 15% (10+ employees) or 20% (less than 10 employees) on NY QREs for new life sciences businesses, capped at $500,000 annually and $1.5M lifetime, administered by Empire State Development.
Qualified activities include developing or improving life sciences products/processes (e.g., biopharma trials, genomics tools) meeting IRC §41's four-part test, performed in NY. Strike Tax identifies and documents eligible projects.
For $3 million in NY QREs with less than 10 employees, you could save up to $500,000 (capped), plus federal credits. Use Strike Tax’s R&D Credit Calculator for personalized estimates.
Yes, fully refundable immediately if exceeding liability - perfect for cash-strapped innovators. No carryforward required, unlike nonrefundable programs. Strike Tax maximizes refund timing.
Submit ESD application (PDF + Excel) with QRE details; receive certificate for tax return filing. Applications processed first-come until $10M cap. Strike Tax handles certification and compliance.
Yes, stack the 15-20% state credit with federal R&D credits often range from 14% to 20% of qualified expenses depending on method on the same NY QREs for amplified savings. Strike Tax optimizes dual claims.
Fewer than 10 full-time NY employees qualifies for 20%; 10 or more gets 15%. Employee count is based on total full-time employees of the business, verified by ESD.
No, contract payments to third parties are excluded - focus on in-house wages and supplies for maximum credit. Strike Tax reallocates expenses strategically.
No major changes; businesses may claim the credit for up to three consecutive years once certified. Federal Form 6765 updates (Section G for components greater than $10K) impact documentation - Strike Tax ensures compliance.
High refund rates and caps support early-stage funding in a hub like NYC, with $10M annual pool driving $100M+ in sector investment since inception. Strike Tax tailors claims for biotech.
