Discover Untapped Tax Credits

New York State’s QETC program could provide your technology company with a capital infusion of up to $1MM.

This rare opportunity takes advantage of key tax credits specifically designed to help companies invest in their innovations. Awards are based on research and development expenses, jobs created, and employee training expenses. Investors in qualified companies can also receive a non-refundable credit of up to $300K per year.

Eligible companies must meet these criteria:

• Provide products or services that are classed as “emerging technology,” such as new media, IT, biotech, cleantech, and other high tech areas
• Annual product sales under $10MM and gross revenue under $20MM in the previous tax year
• 100 full-time employees or less, with at least 75% based in NYS
• NY-based research and development spending over 6% of net sales

Qualifying businesses are eligible to receive the following credits for at least four years:

QETC Employment Credit
If your business is creating jobs in emerging technology companies, you may be entitled to the QETC employment credit. This fully refundable credit is equal to $1,000 per full-time employee in excess of those counted in the base year.

QETC Facilities, Operations and Training Credits
(Fully refundable up to a total of $250,000/year)

• Research and Development Property Credit
  An 18 percent Research and Development credit can be applied to costs related to the purchase or lease of property to be used for research and development. The credit can be applied to fees for technology facilities and equipment, quality control, and production costs incurred in connection with emerging technology activities.
• Qualified Research Expense Credit
  A 9 percent Qualified Research Expense credit can be applied to expenses associated with in-house research and the distribution of company research and development results, including researcher salaries. This credit may also be applied to costs related to the patent and grant applications process.
• High-Technology Training Credit
  Your company may be eligible for a credit of up to $4,000 per employee per year for training expenses. Training includes courses related to the activities of the company completed at a college or university located in New York State.

QETC Capital Tax Credit
Investors in qualified emerging technology companies may be eligible for credits of up to a total non-refundable $300,000 for qualified investments in an emerging technology company. For an investor to receive this credit, the emerging technology company must attain certification as a Qualified Emerging Technology Company by completing NYS Department of Finance form DTF-620.

For additional information, please contact:

George LaPointe
Empire State Development Corporation
Phone: 518.292.5307

NYS Department of Tax and Finance
Phone: 888.698.2908

This information is a summary of NYS programs and is not comprehensive in scope or detail. For additional information, please refer to the above instructions and claim form links and consult your tax advisor.