N.Y. Comp. Codes R. & Regs. tit. 5 § 260.5

Current through Register Vol. 46, No. 43, October 23, 2024

Section 260.5 - Application review

(a) A life sciences research and development company must submit evidence that it meets the eligibility requirements stated herein and has made research and development expenditures in New York in order to receive benefits under the program.

(b) The Department of Economic Development may require evidence that includes, but is not necessarily limited to, the articles of incorporation of the company, relevant tax returns, financial statements, job descriptions and salaries of employees, quarterly combined withholding, wage reporting, and unemployment insurance returns filed with the NYS Department of Taxation and Finance, and any other information the commissioner deems necessary to determine eligibility of the company.

(c) If a life sciences research and development company fails to demonstrate that it has satisfied the eligibility requirements set forth in section 260.3 of this Part, the Department of Economic Development shall deny its application by issuing a notice of denial stating the reasons therefor and not issue such life sciences research and development company a certificate of tax credit. Such company may appeal this denial pursuant to section 260.11 of this Part.

(d) After reviewing such evidence and finding it sufficient, the department shall calculate the appropriate amount of tax credit and issue a certificate of tax credit for one taxable year. The certificate shall specify the exact amount of the tax credit that a life sciences research and development company may claim and shall specify the allocation year and taxable year in which such credit may be claimed. If the life sciences research and development company is a business entity that passes through the tax credit components to its owners (such as partners in a partnership or members in a limited liability company), such owners can only claim their share of the credit components on the tax return that corresponds to the tax year and allocation year indicated on the certificate issued to the life sciences research and development company. In order to receive a certificate of tax credit for subsequent taxable years, the life sciences research and development company must reapply to the program and meet the eligibility criteria set forth in this Part.

N.Y. Comp. Codes R. & Regs. Tit. 5 § 260.5