The Business Council supports this legislation that would extend the three part “qualified emerging technology company” tax credit through December 31, 2016. Under current law, the QETC credit would expire at the end of 2011. While we prefer a permanent extension, we believe it is essential that the legislature act to assure this credit program remain available to support new technology investments in New York State.
The QETC is the state’s most effective incentive for promoting investment and growth in research intensive technology sectors, giving valuable refundable tax credits for small start up companies in the advanced materials, engineering, electronics, photonics, advanced software and biotechnology sectors.
This credit is crucial in supporting New York State’s economic goals, which include supporting growth in emerging technology sector, and to support commercialization of new technologies and discoveries.
To be eligible, a business must be in a targeted technology sector, have 100 or fewer employees in New York (and at least 75 percent of total company employment in New York), have a ratio of R&D spending to net sales of 6 percent or greater, and gross revenues not greater than $20 million per year.
The program provides refundable investment credits for research and development, testing, inspecting, quality control and similar capital expenditures; for qualified research expenses; and for high-technology training expenses. The benefit is capped at $250,000 per taxpayer per year (all three parts together).
The QETC has supported millions of dollars of investments in emerging tech sectors, and has proven an effective and cost-effective incentive program. We believe the program should be extended, and therefore urge legislative approval of S.5633-B/A.7705-B.