Biotechnology Tax Credit Application - New York Department Of Finance (Page 6 of 8) in pdf

Biotechnology Credit application for General Corporation tax, Business Corporation tax and unincorporated Business tax - Instructions

page 3

Affiliates means those corporations that are members of

modities means commodities (excluding paper) used in

conjunction with or as a part of equipment performing

the same affiliated group (as defined in section 1504 of

the functions of facsimile machines, photocopiers, print-

the Internal revenue Code) (IrC) as the taxpayer.

ers, duplication equipment, or any combination thereof,

Research and development (R&D) property for purposes

including, but not limited to the following: magnetic ink

of the research and development credit component

character recognition cartridges, photo conductor

(Schedule C, part 1) is property that is

assemblies, electrostatic cartridges, thermal imaging

cartridges, toner cartridges, ink jet cartridges, and print-

• acquired by purchase as defined in IrC section 179(d),

er cartridges. Eligible commodities also includes equip-

• placed in service during the calendar year ending , and

ment used to record single frame images on film, where

such equipment and film are marketed and sold as a

• used for research and development in the experimen-

single integrated consumer product, and where such

tal or laboratory sense.

equipment and film may be submitted in whole to a pho-

tograph processor for the purposes of processing.

the above costs, basis, expenses, or fees cannot be

used in the calculation of any other credit.

Total annual product sales means the amount of gross

receipts from the sale of all products during the calen-

Do not include property used for the following:

dar year ending with or within the taxable year for which

the credit is claimed.

• ordinary testing of materials or products for quality

control

Net sales means total annual product sales minus the

• efficiency surveys

amount of returns and allowances during the calendar

year ending with or within the taxable year for which the

• management studies

credit is claimed.

• consumer surveys

Primary products or services means that more than 50%

• advertising

of a taxpayer’s receipts from products or services are

• promotions

derived from emerging technology products or services

• research in connection with literary, historical, or simi-

during the calendar year ending with or within the taxable

lar projects

year for which the credit is claimed.

Qualified research expenses mean expenses associated

Full-time employment means a job consisting of at least

with in-house research and processes, and costs associ-

35 hours per week, or two or more jobs that together con-

ated with the dissemination of the results of the products

stitute the equivalent of a job of at least 35 hours per

that directly result from such research and development

week. a seasonal job that meets these requirements con-

activities. Such costs do not include advertising or pro-

stitutes full-time employment if the job is continuous for at

motion through media. for purposes of the qualified

least three months.

research expenses component, include costs associated

Related member or members means a person, corpora-

with the preparation of patent applications, patent appli-

tion, or other entity, including an entity that is treated as

cation filing fees, patent research fees, patent examina-

a partnership or other pass-through vehicle for purposes

tion fees, patent post allowance fees, patent mainte-

of federal taxation, whether such person, corporation, or

nance fees, and grant application expenses and fees. do

entity is a taxpayer or not, where one such person, cor-

not include any expenses for litigation or the challenge of

poration, or entity, or set of related persons, corporations,

another entity’s intellectual property rights, or for contract

or entities, directly or indirectly owns or controls a con-

expenses involving outside paid consultants.

trolling interest in another entity. Such entity or entities

Qualified high-technology training includes a course or

may include all taxpayers under Chapters 5, 6, 11 and 17

of title 19 of the NYC admin. Code.

courses taken and satisfactorily completed by an employ-

ee of the taxpayer at an accredited, degree-granting,

Controlling interest, in the case of a corporation, means

post-secondary college or university in New York City that

either 30% or more of the total combined voting power of

directly relates to biotechnology activities and is intended

all classes of stock of such corporation, or 30% or more

to upgrade, retrain, or improve the productivity or theoret-

of the capital, profits, or beneficial interest in such voting

ical awareness of the employee. Such course or courses

stock of such corporation; and in the case of a partner-

may include, but are not limited to, instruction or research

ship, association, trust, or other entity, 30% or more of

relating to techniques, meta, macro, or microtheoretical or

the capital, profits, or beneficial interest in such partner-

practical knowledge bases or frontiers, or ethical con-

ship, association, trust, or other entity.

cerns related to such activities. Such course or courses

Biotechnology Tax Credit Application - New York Department Of Finance Page 6

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