* § 43. Life sciences research and development tax credit. (a)
Allowance of credit. (1) A taxpayer that is a qualified life sciences
company, or that is a sole proprietor of or a partner in a partnership
that is a qualified life sciences company or a shareholder of a New York
S corporation that is a qualified life sciences company, and is subject
to tax under article nine-A or twenty-two of this chapter, shall be
allowed a credit against such tax, pursuant to the provisions referred
to in subdivision (e) of this section, for a period of three years, as
provided in subparagraph (ii) of paragraph two of this subdivision, to
be computed as provided in this section, provided that no credit shall
be allowed for taxable years beginning on or after January first, two
thousand twenty-eight. Such credit may be claimed in the taxable year
specified on the certificate of tax credit issued to the qualified life
sciences company.

(2)(i) For a qualified life sciences company that employs ten or more
persons during the taxable year, the amount of the credit shall be equal
to fifteen percent of such qualified life sciences company's research
and development expenditures in this state for the taxable year. For a
qualified life sciences company that employs less than ten persons
during the taxable year, the amount of the credit shall be equal to
twenty percent of such qualified life sciences company's research and
development expenditures in this state for the taxable year.

(ii) The credit shall be allowed only with respect to the first
taxable year during which the criteria set forth in this subdivision are
satisfied, and with respect to each of the two taxable years next
following (but only, with respect to each of such years, if such
criteria are satisfied). Subsequent certifications of the life sciences
company by the department of economic development pursuant to this
section shall not extend the three taxable year time limitation on the
allowance of the credit set forth in the preceding sentence.

(3) The total amount of credit allowable to a qualified life sciences
company, or, if the life sciences company is properly included or
required to be included in a combined report, to the combined group,
taken in the aggregate, shall not exceed five hundred thousand dollars
in any taxable year. If the taxpayer is a partner in a partnership that
is a life sciences company or a shareholder of a New York S corporation
that is a life sciences company, then the total amount of credit
allowable shall be applied at the entity level, so that the total amount
of credit allowable to all the partners or shareholders of each such
entity, taken in the aggregate, does not exceed five hundred thousand
dollars in any taxable year.

(4) No research and development expenditures made by the life sciences
company and used either as the basis for the allowance of the credit
provided for pursuant to this section or used in the calculation of the
credit provided pursuant to this section shall be used to claim any
other credit allowed pursuant to this chapter or be used in the
calculation of any other credit allowed pursuant to this chapter.

(b) Maximum amount of credits. The aggregate amount of tax credits
allowed under this section to taxpayers subject to tax under articles
nine-A and twenty-two of this chapter in any taxable year shall be ten
million dollars, and shall be allotted from the funds available for tax
credits under article seventeen of the economic development law. Such
aggregate amount of credits shall be allocated by the department of
economic development among taxpayers in order of priority based upon the
date of filing an application for allocation of life sciences research
and development tax credit with such department. If the total amount of
allocated credits applied for in any particular year exceeds the
aggregate amount of tax credits allowed for such year under this
section, such excess shall be treated as having been applied for on the
first day of the subsequent year.

(c) Definitions. As used in this section the following terms shall
have the following meanings:

(1) "Certificate of tax credit" means the document issued to a
qualified life sciences company by the department of economic
development, after the department of economic development has verified
that such life sciences company has met all applicable criteria in this
section to be eligible for the life sciences research and development
tax credit allowed under this section, including but not limited to
verifying that the life sciences company is a new business. The
certificate shall be issued annually if such criteria are satisfied and
shall specify the exact amount of the life sciences research and
development tax credit that may be claimed by such qualified life
sciences company, pursuant to this section, and shall specify the
taxable year in which such credit may be claimed.

(2) "New business" means any business that qualifies as a new business
under either paragraph (f) of subdivision one of section two hundred
ten-B or paragraph ten of subsection (a) of section six hundred six of
this chapter.

(3) "Qualified life sciences company" means a life sciences company,
as defined in subdivision eleven of section three hundred fifty-two of
the economic development law, that has been certified by the department
of economic development as a life sciences company and is a new
business. Provided however, for purposes of the credit authorized under
this section, the department of economic development shall not certify
as a life sciences company any corporation, partnership, limited
partnership, or other entity that has been within the immediately
preceding sixty months a related person to an entity that is a life
sciences company or an entity that is engaged in scientific research and
development as defined in subdivision twenty-two of section three
hundred fifty-two of the economic development law.

(4) "Research and development expenditures" means qualified research
expenses as defined in subsection (b) of section 41 of the internal
revenue code, provided, however, that such qualified research expenses
shall not include amounts under subparagraph (B) of paragraph 1 of
subsection (b) of section 41 of the internal revenue code and as further
described in paragraph 3 of subsection (b) of section 41 of the internal
revenue code. If section 41 of the internal revenue code has expired,
then the research and development expenses shall be calculated as if the
federal research and development credit structure and definition in
effect in section 41 in federal tax year two thousand nine were still in
effect.

(5) "Related person" means a related person as defined in subparagraph
(C) of paragraph three of subsection (b) of section 465 of the internal
revenue code. For this purpose, a "related person" shall include an
entity that would have qualified as a "related person" if it had not
been dissolved, liquidated, merged with another entity or otherwise
ceased to exist or operate.

(d)(1) For purposes of this section, in order to be eligible for the
life sciences research and development tax credit allowed under this
section, a life sciences company must be issued a certificate of tax
credit by the department of economic development. The department of
economic development shall verify that such life sciences company has
met all applicable eligibility criteria in this section before issuing a
certificate of tax credit, including but not limited to verifying that
the life sciences company is a new business.

(2) The commissioner of economic development, after consulting with
the commissioner, shall promulgate regulations by October thirty-first,
two thousand seventeen to establish procedures for the allocation of tax
credits allowed under this section. Such rules and regulations shall
include provisions describing the application process for the credit
allowed under this section, the due dates for such applications, the
eligibility standards for qualified life sciences companies, the
standards which shall be used to evaluate the applications, the
documentation that will be provided to taxpayers to substantiate to the
department the amount of tax credits allocated to such taxpayers, and
such other provisions as deemed necessary and appropriate.
Notwithstanding any other provisions to the contrary in the state
administrative procedure act, such rules and regulations may be adopted
on an emergency basis if necessary to meet such October thirty-first,
two thousand seventeen deadline.

(e) Cross-references. For application of the credit provided for in
this section, see the following provisions of this chapter:

(1) article 9-A: section 210-B: subdivision 52.

(2) article 22: section 606: subsection (hhh).

(f) Notwithstanding any provision of this chapter, (i) employees and
officers of the department of economic development and the department
shall be allowed and are directed to share and exchange information
regarding the credits applied for, allowed, or claimed pursuant to this
section and taxpayers who are applying for credits or who are claiming
credits, including information contained in or derived from credit claim
forms submitted to the department and applications for certification
submitted to the department of economic development, and (ii) the
commissioner and the commissioner of the department of economic
development may release the names and addresses of any taxpayer claiming
the credit allowed under this section and the amount of the credit
earned by the taxpayer. Provided, however, if a taxpayer claims such
credit because it is a member of a limited liability company or a
partner in a partnership, only the amount of credit earned by the entity
and not the amount of credit claimed by the taxpayer may be released.

(g) For purposes of the credit allowed under this section, the number
of persons employed by a qualified life sciences company during the
taxable year shall be determined by ascertaining the number of such
individuals employed full-time by such company, excluding general
executive officers, on the thirty-first day of March, the thirtieth day
of June, the thirtieth day of September and the thirty-first day of
December during each taxable year, by adding together the number of such
individuals ascertained on each of such dates and dividing the sum so
obtained by the number of such dates occurring within such taxable year.
An individual employed full-time means an employee in a job consisting
of at least thirty-five hours per week, or two or more employees who are
in jobs that together constitute the equivalent of a job of at least
thirty-five hours per week (full-time equivalent).

* NB There are 2 § 43's