To keep emerging technology companies in New York, the New York City Council renewed the biotechnology tax credit for tax years beginning after January 1, 2023 and before January 1, 2026. 1 The biotechnology credit allows qualified emerging technology companies (QETCs) engaged in biotechnologies to claim up to $3 million in annual tax credits. 2 The NYC Department of Finance will undergo a rulemaking process to determine how the credit should be allocated among eligible taxpayers. 3

Eligibility Requirements

A QETC is a company located in New York City with total annual product sales of $10 million or less and meets either of the following criteria:

  • Its primary products or services are classified as "emerging technologies," 4or
  • It has research and development (R&D) activities in New York City, and its ratio of R&D funds to net sales equals or exceeds the average (as determined by the National Science Foundation, or comparable successor survey). 5

The taxpayer must also meet all the following criteria to claim the credit:

  • 100 full-time employees or less, with at least 75% of those employees employed in New York City; 6
  • A ratio of R&D expenses to net sales equal to or greater than 6%; 7
  • Gross revenues not exceeding $20 million for the immediately preceding year. 8

Mechanics of the Tax Credit

Assuming the above conditions are met, the Biotechnology Tax Credit Equals the sum of the following expenses:

  • 18% of the cost or other basis of research and development property; 9
  • 9% of qualified research expenses; 10plus
  • 100% of high-technology training expenses, limited to $4,000 per employee. 11


1.Int. No. 1070-A (accessible at



4.Id. Biotechnologies, remanufacturing, and advanced materials and processing are all considered "emerging technologies."SeePBA § 3102-e (accessible at

5.Int. No. 1070-A (accessible at




9.Research and development property is "property that is used for purposes of research and development in the experimental or laboratory sense."Id.

10.Qualified research expenses are "expenses associated with in-house research and processes... costs associated with the dissemination of development activities.... [and] costs associated with the preparation of patent applications."Id.


The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.