Biotechnology Tax Credit Application - New York Department Of Finance (Page 7 of 8) in pdf

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

page 4

SPECIFIC INSTRUCTIONS

do not include classes in the disciplines of management,

accounting, or the law, or any class designed to fulfill the

SCHEDULE A - QETC eligibility requirements

associate, baccalaureate, graduate, or professional level

All of the questions in Schedule A pertain to the tax

of these disciplines. Satisfactory completion of a course

year for which you are claiming the credit.

or courses means the earning and granting of credit or

equivalent unit, with the attainment of a grade of B or

Note: a taxpayer will not be entitled to this credit if it is locat-

higher in a graduate level course or courses, a grade of C

ed in the City and is receiving space and business support

or higher in an undergraduate level course or courses, or

services by an academic incubator facility, if the average num-

a similar measure of competency for a course that is not

ber of individuals employed full time by the taxpayer in the City

measured according to a standard grade formula.

during the calendar year for which this credit is claimed is less

than 105% of the taxpayer’s base year employment. for fur-

Qualified high-technology training expenditures include

ther information, see part 2 of Schedule d.

expenses for tuition and mandatory fees, software

required by the institution, fees for textbooks or other liter-

Part 2 - QETC business activities

Research and development activities

ature required by the institution offering the course or

courses, minus applicable scholarships and tuition or fee

Lines 5 through 8: Complete lines 5 through 8 to deter-

waivers not granted by the taxpayer or any affiliates of the

mine if the r&d funds percentage on line 7 equals or

taxpayer, that are paid or reimbursed by the taxpayer.

exceeds the average ratio for all surveyed companies as

Qualified high-technology expenditures do not include

last determined by the NSf (currently 3.3%). for more

room and board, computer hardware or software not

information, see the definition of a qualified emerging

specifically assigned for such course or courses, late-

technology company on page 1.

charges, fines, or membership dues and similar expenses.

Such qualified expenses shall not be eligible for the credit

NOTE: In Schedule B of this application, you will be

unless the employee for whom the expenditures are dis-

asked again about your r&d percentage. for purposes

bursed is continuously employed by the taxpayer in a full-

of Schedule B, the required percentage is 6%. If your per-

time, full-year position primarily located at a qualified site

centage is not equal to or greater than 6%, you will not be

eligible to claim this credit and you should stop here.

during the period of such course work and lasting through

at least one hundred eighty days after the satisfactory

Line 5 - Enter the amount paid or incurred in the conduct

completion of the qualified course work. Qualified high-

of r&d activities. these funds are the same as those

technology training expenditures do not include expenses

used by NSf in its most recent survey and represent

for in-house or shared training outside of a New York City

expenditures paid or incurred in the conduct of r&d

higher education institution or the use of consultants out-

activities during the calendar year ending with or within

side of credit granting courses, whether such consultants

the tax year for which the credit is claimed.

function inside of the higher education institution or not.

Include the following as expenses:

Academic year means the annual period of sessions of a

• wages, salaries, and related costs

post-secondary college or university.

• materials and supplies consumed

• research and development depreciation

Academic incubator facility means a facility providing low-

cost space, technical assistance, support services, and

• cost of computer software used in r&d activities

educational opportunities, including but not limited to,

• utilities, such as telephone, telex, electricity, water, and gas

central services provided by the manager of the facility to

• travel costs and professional dues

the tenants of the facility, to an entity located in New York

• property taxes and other taxes (except income taxes)

City. Such entity’s primary activity must be in biotechnolo-

incurred on account of the r&d organization or the

gy and such entity must be in the formative stage of

facilities they use

development. the academic incubator facility and the

entity must act in partnership with an accredited post-sec-

• insurance expenses

ondary college or university located in New York City. an

• maintenance and repair, including maintenance of

academic incubator facility’s mission must be to promote

buildings and grounds

job creation, entrepreneurship, technology transfer, and

• company overhead including: personnel, accounting,

provide support services to incubator tenants, including

procurement, and inventory, and salaries of research

but not limited to, business planning, management assis-

executives not on the payroll of the r&d organization

tance, financial-packaging, linkages to financing services,

and coordinating with other sources of assistance.

Exclude the following as expenses:

• r&d from acquired companies prior to acquisition (in

process r&d)

Biotechnology Tax Credit Application - New York Department Of Finance Page 7

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