File #: Int 1070-2023    Version: Name: A biotechnology credit against the general corporation tax, the unincorporated business tax, and the corporate tax of 2015.
Type: Introduction Status: Enacted
Committee: Committee on Finance
On agenda: 6/8/2023
Enactment date: 12/4/2023 Law number: 2023/166
Title: A Local Law to amend the administrative code of the city of New York, in relation to a biotechnology credit against the general corporation tax, the unincorporated business tax, and the corporate tax of 2015.
Sponsors: Jennifer Gutiérrez, James F. Gennaro
Council Member Sponsors: 2
Summary: This bill would renew lapsed tax credits against the General Corporation Tax, the Unincorporated Business Tax, and the Corporate Tax of 2015 for New York City-based companies engaged in biotechnology. The credit shall be allowed for the taxable years beginning on or after January 1, 2023 and before January 1, 2026. The aggregate amount of credit allowable shall not exceed $3,000,000 in a given year. The department of finance shall determine how to allocate the aggregate amount of credit among eligible taxpayers by rule.
Indexes: Agency Rule-making Required
Attachments: 1. Summary of Int. No. 1070, 2. Int. No. 1070, 3. June 8, 2023 - Stated Meeting Agenda, 4. Hearing Transcript - Stated Meeting 6-8-23, 5. Minutes of the Stated Meeting - June 8, 2023, 6. Committee Report 10/4/23, 7. Hearing Testimony 10/4/23, 8. Hearing Transcript 10/4/23, 9. Proposed Int. No. 1070-A - 11/2/23, 10. Committee Report 11/15/23, 11. Hearing Transcript 11/15/23, 12. November 15, 2023 - Stated Meeting Agenda, 13. Hearing Transcript - Stated Meeting 11-15-23, 14. Int. No. 1070-A (FINAL), 15. Fiscal Impact Statement, 16. Local Law 166, 17. Minutes of the Stated Meeting - November 15, 2023
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
12/4/2023AJennifer Gutiérrez City Council Recved from Mayor by Council  Action details Meeting details Not available
12/4/2023AJennifer Gutiérrez Mayor Signed Into Law by Mayor  Action details Meeting details Not available
12/4/2023AJennifer Gutiérrez Mayor Hearing Held by Mayor  Action details Meeting details Not available
11/15/2023AJennifer Gutiérrez City Council Sent to Mayor by Council  Action details Meeting details Not available
11/15/2023AJennifer Gutiérrez City Council Approved by CouncilPass Action details Meeting details Not available
11/15/2023*Jennifer Gutiérrez Committee on Finance Hearing Held by Committee  Action details Meeting details Not available
11/15/2023*Jennifer Gutiérrez Committee on Finance Amendment Proposed by Comm  Action details Meeting details Not available
11/15/2023*Jennifer Gutiérrez Committee on Finance Amended by Committee  Action details Meeting details Not available
11/15/2023AJennifer Gutiérrez Committee on Finance Approved by CommitteePass Action details Meeting details Not available
10/4/2023*Jennifer Gutiérrez Committee on Finance Hearing Held by Committee  Action details Meeting details Not available
10/4/2023*Jennifer Gutiérrez Committee on Finance Laid Over by Committee  Action details Meeting details Not available
6/8/2023*Jennifer Gutiérrez City Council Introduced by Council  Action details Meeting details Not available
6/8/2023*Jennifer Gutiérrez City Council Referred to Comm by Council  Action details Meeting details Not available

Int. No. 1070-A

 

By Council Members Gutiérrez and Gennaro

 

A Local Law to amend the administrative code of the city of New York, in relation to a biotechnology credit against the general corporation tax, the unincorporated business tax, and the corporate tax of 2015.

 

Be it enacted by the Council as follows:

 

Section 1. Subparagraphs (1), (7) and (8) of paragraph (a) of subdivision (o) of section 11-503 of the administrative code of the city of New York, subparagraphs (1) and (7) as added by local law number 67 for the year 2009, subparagraph (8) as amended by local law number 111 for the year 2015, are amended to read as follows:

(1) A taxpayer that is a qualified emerging technology company, engages in biotechnologies, and meets the eligibility requirements of this subdivision, shall be allowed a credit against the tax imposed by this subchapter. The amount of credit shall be equal to the sum of the amounts specified in subparagraphs (3), (4), (5) of this paragraph, subject to the limitations in [subparagraph] subparagraphs (6) and (7) of this paragraph [and], paragraph (b) of this subdivision, and paragraph 3 of subdivision (d) of section 1201-a of the tax law. For the purposes of this subdivision, “qualified emerging technology company” shall mean a company located in city: (A) whose primary products or services are classified as emerging technologies and whose total annual product sales are ten million dollars or less; or (B) a company that has research and development activities in city and whose ratio of research and development funds to net sales equals or exceeds the average ratio for all surveyed companies classified as determined by the National Science Foundation in the most recent published results from its Survey of Industry Research and Development, or any comparable successor survey as determined by the department, and whose total annual product sales are ten million dollars or less. For the purposes of this subdivision, the definition of research and development funds shall be the same as that used by the National Science Foundation in the aforementioned survey. For the purposes of this subdivision, “biotechnologies” shall mean the technologies involving the scientific manipulation of living organisms, especially at the molecular and/or the sub-molecular genetic level, to produce products conducive to improving the lives and health of plants, animals, and humans; and the associated scientific research, pharmacological, mechanical, and computational applications and services connected with these improvements. Activities included with such applications and services shall include, but not be limited to, alternative mRNA splicing, DNA sequence amplification, antigenetic switching bioaugmentation, bioenrichment, bioremediation, chromosome walking, cytogenetic engineering, DNA diagnosis, fingerprinting, and sequencing, electroporation, gene translocation, genetic mapping, site-directed mutagenesis, bio-transduction, bio-mechanical and bio-electrical engineering, and bio-informatics.

(7) [The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the amount computed in subdivision (a) of this section. Provided, however, if] If the amount of credit allowed under this subdivision for any taxable year [reduces the tax to such amount] exceeds the amount of tax due for such year pursuant to this chapter, any amount of credit not deductible in such taxable year shall be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section 11-526 of this chapter; provided, however, that notwithstanding the provisions of section 11-528 of this chapter, no interest shall be paid thereon.

(8) The credit allowed under this subdivision shall only be allowed for taxable years beginning on or after January first, two thousand ten and before January first, two thousand nineteen, and beginning on or after January first, two thousand twenty-three and before January first, two thousand twenty-six.

§ 2. Subparagraphs (1) and (8) of paragraph (a) of subdivision 21 of section 11-604 of the administrative code of the city of New York, subparagraph (1) as added by local law number 67 for the year 2009, subparagraph (8) as amended by local law number 111 for the year 2015, are amended to read as follows:

(1) A taxpayer that is a qualified emerging technology company, engages in biotechnologies, and meets the eligibility requirements of this subdivision, shall be allowed a credit against the tax imposed by this subchapter. The amount of credit shall be equal to the sum of the amounts specified in subparagraphs (3), (4), and (5) of this paragraph, subject to the limitations in [subparagraph] subparagraphs (6) and (7) of this paragraph [and], paragraph (b) of this subdivision, and paragraph 3 of subdivision (d) of section 1201-a of the tax law. For the purposes of this subdivision, “qualified emerging technology company” shall mean a company located in city: (A) whose primary products or services are classified as emerging technologies and whose total annual product sales are ten million dollars or less; or (B) a company that has research and development activities in city and whose ratio of research and development funds to net sales equals or exceeds the average ratio for all surveyed companies classified as determined by the National Science Foundation in the most recent published results from its Survey of Industry Research and Development, or any comparable successor survey as determined by the department, and whose total annual product sales are ten million dollars or less. For the purposes of this subdivision, the definition of research and development funds shall be the same as that used by the National Science Foundation in the aforementioned survey. For the purposes of this subdivision, “biotechnologies” shall mean the technologies involving the scientific manipulation of living organisms, especially at the molecular and/or the sub-molecular genetic level, to produce products conducive to improving the lives and health of plants, animals, and humans; and the associated scientific research, pharmacological, mechanical, and computational applications and services connected with these improvements. Activities included with such applications and services shall include, but not be limited to, alternative mRNA splicing, DNA sequence amplification, antigenetic switching bioaugmentation, bioenrichment, bioremediation, chromosome walking, cytogenetic engineering, DNA diagnosis, fingerprinting, and sequencing, electroporation, gene translocation, genetic mapping, site-directed mutagenesis, bio-transduction, bio-mechanical and bio-electrical engineering, and bio-informatics.

(8) The credit allowed under this subdivision shall only be allowed for taxable years beginning on or after January first, two thousand ten and before January first, two thousand nineteen, and beginning on or after January first, two thousand twenty-three and before January first, two thousand twenty-six.

§ 3. Subparagraph (8) of paragraph (a) of subdivision 21 of section 11-654 of the administrative code of the city of New York, as amended by section 14 of part P of chapter 60 of the laws of 2016, is amended to read as follows:

(8) The credit allowed under this subdivision shall only be allowed for taxable years beginning before January first, two thousand nineteen, and beginning on or after January first, two thousand twenty-three and before January first, two thousand twenty-six.

§ 4. This local law takes effect immediately, and shall apply to tax years beginning on or after January 1, 2023.

 

MJT

LS #13312

11/2/2023, 3:00 p.m.