You may know that life sciences are eligible for federal research and development (R&D) tax credits nationwide—but did you know that New York State offers a life sciences research and development tax credit?
New York State Eligibility
It’s true. Businesses undertaking life sciences research and development are eligible if they meet all three of these criteria: They’re a new business that’s been certified by the New York State Economic Development division as a qualified life sciences company; they have paid for or incurred qualified research and development expenses in New York State, and they’ve received a certificate of tax credit issued by Empire State Development (ESD). Eligible taxpayers can obtain the credit for tax years beginning on or after January 1, 2018, but before January 1, 2028.
The Empire State Development agency administers the Life Sciences Research and Development Tax Credit Program. To learn how to apply and how the approval process works, please consult the webpage for Empire State Development: Life Sciences Research and Development Tax Credit Program.
What Percentage Back Might You Get?
- If your company employs 10 or more persons, it’s eligible for a tax credit equal to 15% of your research and development expenditures in New York State.
- But if you employ fewer than 10 persons, it’s eligible for a credit equal to 20% of your research and development expenditures based in New York State.
You can be awarded the credit for up to three consecutive years. It’s limited to $500,000 per year.
When you receive your credit, the ESD agency will issue a certificate of tax credit declaring the amount of tax credit allowed and the tax year when you can claim the credit.
New York State Government Forms
- Form CT-648, Life Sciences Research and Development Tax Credit, and its instructions(for corporations)
- Form IT-648, Life Sciences Research and Development Tax Credit, and its instructions(for all others)
Engineered Tax Services would be more than happy to help you obtain your New York State Life Sciences Research and Development Tax Credit.