QETC Program Encourages the Creation of Jobs and Investment

PROGRAM HIGHLIGHTS
- A refundable employment tax credit of $1,000 for each full-time job, over and above a three-year employment base (average). This tax credit is available for up to three years.
- A 10% or 20% capital tax credit based on an investment held for four or nine years, respectively. The 10% credit can not exceed $150,000 and the 20% credit can not exceed $300,000. This is not refundable, but can be carried forward indefinitely.
- A refundable 18% tax credit of the cost of “research and development property” acquired by the taxpayer by purchase and placed in service during the taxable year.
- A refundable 9% tax credit for “qualified research expenses” paid or incurred by the taxpayer in the taxable year.
- A refundable 100% training tax credit of “qualified high technology training expenditures” paid or incurred by the taxpayer, up to $4,000 per employee per taxable.

ELIGIBILITY
- For all the tax credits, an eligible company must be a Qualified Emerging Technology Company, owning or renting real property in NYS used for its product and services, and must have annual product sales of $10 million or less.
- For the capital tax credit, the company must also be “certified” as a QETC by the NYS Department of Taxation and Finance (Form DTF-620).
- For the tax credits for R&D property, research expenses and training, the QETC must also:
* have no more than 100 full-time employees, of which at least 75% are employed in NYS;
* have a ratio of research and development funds to net sales which equals or exceeds 6% during its authorized taxable year; and
* have gross revenues, along with the gross revenues of its affiliates and related members, not exceeding $20 million for the taxable year immediately preceding the year the taxpayer claims this credit.

PROCESS
To claim QETC credits, go to the New York State Department of Tax and Finance website, read all relevant instructions, and complete the appropriate claim forms.

CONTACT INFORMATION
New York State Department of Tax and Finance: http://www.tax.state.ny.us/