Life Sciences Research and Development Tax Credit Program

Life Sciences Tax Credit Program

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Objective

Objective

The Life Sciences Research and Development Tax Credit Program is designed to support new life sciences businesses locating, inventing, commercializing and producing in New York State.

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Overview

Overview

Program Highlights

Program credits of $10 million per year can be allocated and used to encourage new businesses to conduct their research and development in the State. 

Qualified life sciences companies may be eligible to receive a fully refundable credit based on qualified research and development expenditures incurred in New York State (NYS). The credit is 15 percent for a company that employs 10 or more persons and 20 percent for a company that employs 10 or less.

The credit is allowed for up to three consecutive years beginning with the first taxable year on or after January 1, 2018 during which the qualified life sciences company meets the eligibility criteria. The credit is capped at $500,000 per year for a lifetime cap of $1.5 million. 

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Eligibility

Eligibility

The Program is available to a new business entity that devotes the majority of its efforts to the various stages of research, development, technology transfer and commercialization related to any life sciences field.

Life sciences means agricultural biotechnology, biogenerics,  bioinformatics, biomedical engineering, biopharmaceuticals, academic medical centers, biotechnology, chemical synthesis, chemistry  technology, medical diagnostics, genomics, medical image analysis, marine biology, medical devices, medical nanotechnology, natural product pharmaceuticals proteomics, regenerative medicine, RNA interference, stem cell research, medical and neurological clinical trials, health robotics and veterinary science.

Research and development expenditures are defined as qualified research expenses of the federal research and development tax credit [Section 41(b) of the internal revenue code] incurred in New York State on or after January 1, 2018. Qualified expenditures do not include contract research expenses.

A qualified life sciences company must be a new business.

 

How to Apply

Application Process
Applicants may apply to the Program for qualified expenses incurred on or after January 1,
2018 and may be eligible for a credit for a period of three consecutive years and must apply for
the credit in each of those years. 

Applications are available below. However, since the first full calendar year of the Program will not be
completed until December 31, 2018, an applicant undertaking research during 2018 may wish to
wait until the end of 2018 to apply for the credit on qualified expenses incurred during 2018.

Completed Applications (PDF signed and scanned and completed excel file) should be submitted to: LifeScienceTC@esd.ny.gov

  1. Application
  2. Application Excel Template

Regulations
Click here to view the current regulations for the Life Sciences Research and Development Tax Credit Program.

Other Resources
Life sciences firms that are not eligible, or do not choose, to participate in the Life Sciences Research and Development Tax Credit Program may be eligible to participate in the Excelsior Jobs Program.

Frequently Asked Questions
Click here to view program FAQs. 

Contact Information
If you are interested in more details or have specific questions about this Program or the Excelsior Jobs Program, please contact the Economic Incentives Department at (518) 292-5240 or via email at economicncentives@esd.ny.gov.