Preconsidered Res. No. 1379
Resolution calling upon the New York State Assembly to pass A.10352, and the Governor to sign such legislation into law, amending the tax law in relation to extending the authorization of New York City to provide a biotechnology credit against the general corporation tax, unincorporated business tax, and banking corporation tax of such city.
By Council Members Recchia, Fidler, James and Koo
Whereas, With 9 world-class research institutions, 26 medical centers, 175 hospitals, and an unparalleled talent pool, New York City has a natural advantage in the bioscience industry; and
Whereas, Despite these advantages, New York City lags behind cities such as Boston and San Diego in the commercialization of new technologies; and
Whereas, The existing biotechnology credit targets the first state of commercialization, where the discoveries of basic science are investigated for their commercial properties; and
Whereas, The credit is part of a policy to create an industry with sufficient size and density such that it becomes a good place to make a career in biotechnology and to locate the kind of ancillary services that the industry needs; and
Whereas, The credit works in conjunction with the recent development of laboratory space at the East River Science Park, and BioBAT at the Brooklyn Army Terminal; and
Whereas, These spaces, along with other facilities, provide approximately 2 million square feet of laboratory space in the City; and
Whereas, The Credit is complementary to the New York State Qualified Emerging Technology Companies Credit; and
Whereas, For tax year 2010, the City received 23 applications for $2,050,565 in biotechnology credits; and
Whereas, A taxpayer is entitled to a credit if the company: 1) is a qualified emerging technology company engaging in biotechnologies, 2) has no more than one hundred full-time employees, of which at least 75% are employed in the City, 3) has a ratio of research and development funds to net sales of at least 6%, 4) has gross revenues not exceeding $20 million, including affiliates, and 5) has annual sales not exceeding $10 million; and
Whereas, Without further legislation, New York City's authorization to continue the biotechnology tax credit will expire on December 31, 2012; now, therefore, be it
Resolved, That the Council of the City of New York calls upon the New York State Assembly to pass A.10352, and the Governor to sign such legislation into law, amending the tax law in relation to extending the authorization of New York City to provide a biotechnology credit against the general corporation tax, unincorporated business tax, and banking corporation tax of such city.
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