Looking for a New York State Tax Forms And Templates? Download it for free!

DTF-620-

New York State Department of Taxation and Finance

Instructions for Form DTF-620

(10/05)

Application for Certiﬁcation of a Qualiﬁed Emerging

Technology Company

General information

Preceding period

Since the application for certiﬁcation generally should be

This annual application for certiﬁcation is ﬁled with the

ﬁled 30 days before the beginning date on the application for

Commissioner of Taxation and Finance to certify that the company

certiﬁcation, the information for Category 1 and Category 2 is

named on the application is a qualiﬁed emerging technology

based on data for the ﬁrst nine months of the preceding period.

company (QETC), as deﬁned under section 3102-e(1)(c) of the

If, however, data is available for the entire twelve months of the

Public Authorities Law (PAL). The term company includes, but is not

preceding period, use the actual data for the preceding twelve

limited to, corporations, partnerships, and limited liability companies

months. The preceding period is the period occurring immediately

(LLC).

before the period for which you ﬁled the application for certiﬁcation.

In addition, if you used data for the ﬁrst nine months of the

Certiﬁcation of a QETC by the Commissioner of Taxation and

preceding period, then you must annualize the information on

Finance is required for a taxpayer to claim a QETC capital tax

line 12, lines 14 and 15, and lines 19 and 20. Divide the data by 9,

credit on Form DTF-622. A QETC capital tax credit is available

and multiply the result by 12.

to a corporation subject to tax under Article 9-A of the Tax Law

for qualiﬁed investments made in a certiﬁed QETC for tax years

Example:

beginning on or after January 1, 1999 (section 210.12-F of the

OZ Company is a calendar year taxpayer for federal tax purposes.

Tax Law). The credit is available to Article 22 taxpayers (that is,

On 12/1/04, OZ Company ﬁles Form DTF-620 for the certiﬁcation

individuals, including partners of partnerships, shareholders of

period 1/1/05-12/31/05. Assuming data for the entire twelve months

New York S corporations, estates and trusts, and beneﬁciaries of

of the preceding period is not available, the information for

estates and trusts) for qualiﬁed investments made in a certiﬁed

Category 1 and Category 2 is based on data for the ﬁrst nine

QETC for tax years beginning on or after January 1, 2000

months of the preceding period (1/1/04-9/30/04.) The information

(section 606 (r) of the Tax Law). If the QETC is not certiﬁed by

for lines 12, 14, and 15, and for lines 19 and 20 must be annualized

the Commissioner of Taxation and Finance, taxpayers who make

by dividing the data by nine and multiplying the result by 12. If

a qualiﬁed investment in a QETC will not be able to claim a QETC

the company’s product sales for the period 1/1/04-9/30/04 were

capital tax credit on Form DTF-622.

$4,500,000, the annualized product sales on line 12 would be

A QETC may seek certiﬁcation under either Category 1 or

$6,000,000.

Category 2. All companies seeking certiﬁcation, under either

category, must also meet the following two requirements:

$4,500,000 = $500,000 x 12 mo. = $6,000,000

9 mo.

– The company must be located in New York State; and

– The company’s annual product sales must be $10 million or less.

Accordingly, OZ Company would attach a worksheet to the

application for certiﬁcation showing the computation of the

A company qualiﬁes under Category 1 if the company has primary

annualized product sales and check the Yes box on line 12.

products or services that are classiﬁed as emerging technologies

under section 3102-e(1)(b) of the PAL.

If the preceding period is less than nine months, the information for

A company qualiﬁes under Category 2 if:

Category 1 and Category 2 is based on data for the short preceding

period. The information must be annualized by dividing the data by

– The company has research and development activities in

the number of months in the short preceding period and multiplying

New York State; and

the result by 12.

– The company’s ratio of research and development funds to

net sales equals or exceeds the average ratio for all surveyed

If there is no preceding period occurring immediately before the

companies classiﬁed, as determined by the National Science

period for which the application for certiﬁcation is being ﬁled,

Foundation (NSF).

complete the information for Category 1 and Category 2 on

the basis of projected information for the ﬁling period shown on

The average ratio for all surveyed companies as last determined by

the application for certiﬁcation (no consideration is given to the

the NSF is 3.6%.

preceding period).

When to ﬁle application for certiﬁcation

Line instructions

The application for certiﬁcation should be ﬁled 30 days before

the beginning date of the period of certiﬁcation, as shown on

I —

Part

Business information

the application for certiﬁcation. This will allow the Commissioner

of Taxation and Finance 30 days to review the application for

Line 1 — Enter the exact legal name of your business. The legal

certiﬁcation and notify the company whether it is certiﬁed as a

name is the name in which the business owns property or acquires

QETC for the certiﬁcation period. You may, however, ﬁle your

debt. A corporation’s legal name is the name that appears on

application for certiﬁcation at any time during the period for which

the certiﬁcate of incorporation. A partnership’s legal name is the

you seek certiﬁcation.

name that appears on its partnership agreement. A limited liability

company’s legal name is the name that appears on its articles of

Certiﬁcation period

incorporation.

In the upper right corner of Form DTF-620, enter as the certiﬁcation

Line 2 — Enter the trade name, doing-business-as (DBA) name,

period the beginning date and ending date for which you are

or assumed name if different from line 1. For a corporation, this

ﬁling the application for certiﬁcation. The beginning and ending

is the name that appears on the trade name certiﬁcate ﬁled with

dates on the application for certiﬁcation should coincide with the

the New York State Department of State. For an unincorporated

dates reported for the company’s tax year for federal income tax

business, this is the name ﬁled with the county clerk’s ofﬁce under

purposes. However, the beginning date cannot start before the date

section 130 of the General Business Law.

the company was located or began business in New York State.

Instructions For Form Dtf-620 - Application For Certification Of A Qualified Emerging Technology Company

Related Articles

Related forms

Related Categories