Qualified Emerging Technology Company Facilities, Operations, and Training Credit

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General information

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Agency: Taxation and Finance, Department of (STATE) Description: The Qualified Emerging Technology Company (QETC) Facilities, Operations, and Training Credit allows eligible QETCs to claim a tax credit against the corporate franchise or personal income tax liability for amounts paid or incurred for certain facilities, operations, and employee training. A QETC is a company located in New York State with total annual product sales of $10 million or less, and with primary products or services that are classified as emerging technologies, including: • Advanced materials and processing technologies • Engineering, production, and defense • Electronic and photonic devices and components • Information and communications technologies • Bio- and nano-technologies • Remanufacturing technologies Facilities, Operations, and Training Credit To claim the QETC Facilities, Operations, and Training Credit, the taxpayer must also meet the following criteria: • Have 100 full-time employees or less, with at least 75% of those employees employed in New York State; • Have a ratio of research and development funds to net sales which equals or exceeds 6 percent (6%); • Have gross revenues which did not exceed twenty million dollars for the immediately preceding year. The amount of credit is the sum of the following amounts: • 18% of research and development property, costs, and fees incurred in connection with emerging technology activities • 9% of qualified research expenses paid or incurred by the taxpayer during the tax year • 100% of qualified high-technology training expenses paid or incurred by the taxpayer, limited to $4,000 per employee per year The total amount of credit allowable to a taxpayer cannot be more than $250,000 per year. Formal QETC certification is not required to claim this credit. Additional details on emerging technology definitions and eligibility requirements are available in the Instructions for Claim for QETC Facilities, Operations, and Training Credit, linked below.

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Additional notes

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	The QETC Facilities, Operations, and Training Credit may be claimed for four consecutive tax years; however, a taxpayer that relocates from an academic incubator facility may claim the credit for five consecutive tax years and may elect to defer the credit to the first tax year after the taxpayer relocates from the incubator facility. A taxpayer filing as a member of a combined group may claim the QETC facilities, operations, and training credit. The credit is computed on a separate basis and applied against the combined tax.

Contact Information

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New York State Department of Taxation and Finance, Metropolitan District Office 55 Hanson Place Brooklyn, NY 11217 Phone: (888) 462-8100 Fax: (800) 748-3676 Website: http://www.nystax.gov

Disclaimer

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This page provides general information only. The information does not address all relevant regulatory requirements of City, State or Federal Agencies, nor does it address requirements with which the business must comply on an ongoing basis. It is the business owner's responsibility to meet all City, State and Federal requirements. Failure to comply with all applicable laws and regulations may result in fines or in the suspension and/or revocation of licenses or permits, or other penalties as allowed by law. Please note that this information is not legal advice; you can only obtain legal advice from a lawyer. For more information or assistance, please contact the issuing Agency, using the contact information above, or call 311 (or 212-NEW-YORK if outside of New York City).