Are R&D Tax Credits Available in New York?

Are R&D Tax Credits Available in New York?

Yes. The state of New York provides the Excelsior Jobs Program which offers several refundable credits including the Research and Development (R&D) Tax Credit. Below is a summary of New York's Excelsior Research and Development Tax Credit:

• Taxpayers can claim up to 50% of their federal R&D credit that relate to R&D expenditures in New York State.
• The credit is capped at 6% of qualified research expenditures (QREs) conducted in the state or 8% for qualified green projects
• The definition of QREs is the same as the federal section 41 definition, except that costs must be incurred in New York to qualify for the New York research credit.
• The credit can only be claimed if the business has received a certificate of tax credit from the Empire State Development (ESD), which involves submitting a performance report demonstrating it satisfies eligibility requirements.
• Excess R&D Tax Credit is refundable and credit may only be claimed by eligible businesses over a 10-year period once they receive the certificate.
• Credit could be claimed on a timely filed return only. Consolidated Funding Application must be submitted to the appropriate local ESD (Empire State Development) regional office and the R&D Credit can be claimed upon issuance of the approval certificate.
• Taxpayers who are not eligible, or choose not to participate in the Excelsior Jobs Program, may be eligible to participate in the Life Sciences Research and Development Tax Credit Program.
• Taxpayers in certain fields and industries, including medical or veterinary laboratory testing facilities, are not eligible to claim the research credit.