New York Codes, Rules and Regulations
Title 5 - DEPARTMENT OF ECONOMIC DEVELOPMENT
Chapter XXVI - Life Sciences Research and Development
Part 260 - Life Sciences Research and Development Tax Credit Program
Section 260.2 - Definitions
Current through Register Vol. 46, No. 12, March 20, 2024
As used in this regulation, the following terms shall have the following meanings:
(a) Certificate of tax credit means the document issued to a qualified life sciences company by the Department of Economic Development, after the Department of Economic Development has verified that such life sciences company has met all applicable criteria in this Part to be eligible for the life sciences research and development tax credit, including but not limited to verifying that the life sciences company is a new business. The certificate shall be issued annually if such criteria are satisfied and shall specify the exact amount of the life sciences research and development tax credit that may be claimed by such qualified life sciences company, pursuant to section 43 of the Tax Law, and shall specify the taxable year in which such credit may be claimed and the allocation year from which such credit has been awarded.
(b) 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.
(c) Life sciences company means a business entity or an organization or institution that devotes the majority of its efforts in the various stages of research, development, technology transfer and commercialization related to any life sciences field.
(d) New business means any business that qualifies as a new business under either paragraph (f) of subdivision 1 of section 210-B or paragraph 10 of subsection 1 of section 606 of the Tax Law.
(e) Qualified life sciences company means a life sciences company, as defined in subdivision (c) of this section, that has been certified by the Department of Economic Development as a life sciences company and is a new business. Provided however, for purposes of the credit authorized under section 43 of the Tax Law, the Department of Economic Development shall not certify as a life sciences company any corporation, partnership, limited partnership, or other entity that has been within the immediately preceding 60 months a related person to an entity that is a life sciences company or an entity that is engaged in scientific research and development as defined in subdivision 22 of section 352 of the Economic Development Law.
(f) Research and development expenditures means qualified research expenses as defined in subsection (b) of section 41 of the Internal Revenue Code, provided, however, that such qualified research expenses shall not include amounts under subparagraph (B) of paragraph 1 of subsection (b) of section 41 of the Internal Revenue Code and as further described in paragraph 3 of subsection (b) of section 41 of the Internal Revenue Code. If section 41 of the Internal Revenue Code has expired, then the research and development expenses shall be calculated as if the Federal research and development credit structure and definition in effect in section 41 in Federal tax year 2009 were still in effect. Section 41 of title 26 of the United States Code is available for public inspection and copying at the following address: New York State Department of Economic Development, 625 Broadway, 8th Floor, Albany, NY 12245.
(g) Related person means a related person as defined in subparagraph (c) of paragraph 3 of subsection (b) of section 465 of the Internal Revenue Code. For this purpose, a related person shall include an entity that would have qualified as a related person if it had not been dissolved, liquidated, merged with another entity or otherwise ceased to exist or operate. Section 465 of title 26 of the United States Code is available for public inspection and copying at the following address: New York State Department of Economic Development, 625 Broadway, 8th Floor, Albany, NY 12245.
