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New York

R&D Tax Credit
New York

The R&D tax credit can help a wide variety of businesses offset and reduce their income tax liability, in addition to providing many other benefits.

R&D Tax Credits in New York

New York offers a strong Research and Development (R&D) tax credit program for businesses.The credit aims to encourage and reward companies investing in innovation and contributing to the growth of technology and the economy. There are two distinct tax credits available for research and development in New York. The Excelsior Jobs Program in New York includes tax credits for jobs, investment, child care services and research and development. The Excelsior R&D program in New York offers a 6% return on eligible research expenditures and 8% return for qualified environment friendly projects. For life sciences organisations, the state offers a Life Sciences Research and Development Tax Credit Program.

To be eligible for New York Research and Development Tax Credit, the businesses must either create or enhance products, processes, or software; have a technological element for research and employ a methodical approach to experimentation.

What Qualifying Research Activities are Eligible for New York R&D Tax Credit ?

Qualified research activities (QRAs), also known as research and development work, can be categorized into four main areas: improved business component, technological uncertainty, process of experimentation, and technological in nature. The expenses that fall under the umbrella of qualified research expenses (QREs) and contribute to these categories include patents, research and development supplies, salaries for US employees and subcontractors, and hosting costs for off-premise computers and other technology. By conducting QREs in any of these categories, businesses can claim valuable tax credits while advancing innovation and progress in their field.

Percentage

New York’s Excelsior R&D program provides a 6% return on research expenses that meet eligibility criteria, and an 8% return for green projects that meet environmental standards.

Life sciences organizations can take advantage of New York State’s Life Sciences Research and Development Tax Credit Program, which provides a refundable credit of up to $500,000 per year for up to three years, at a rate of either 15% or 20%, depending on the number of employees. Companies with 10 or more employees are eligible for a 15% credit, while those with fewer than 10 employees can receive a 20% credit.

Take Advantage of the
R&D Tax Credit with Source Advisors

Most states offer R&D tax credits as well with many of them being more lucrative than the federal credit. At Source Advisors, we can help assess your company’s federal R&D tax credit opportunity and also determine any state R&D tax credit availability. Our team of experienced CPAs, attorneys, engineers, and technology experts helps companies save money and create cash flow with R&D tax credits that can then help drive overall growth.