Rules Relating to the Biotechnology Credit Against Unincorporated Business Tax and General Corporation Tax

RCNY tit. 19, ch. 48

in effect

19 RCNY § 48-01 Purpose and Scope of Rules.

§ 48-01 Purpose and Scope of Rules. The purpose of these rules is to set forth the application and credit allocation process for the New York City biotechnology credit to be applied against New York City unincorporated business tax and general corporation tax. The Tax Law authorizes the New York City Department of Finance to promulgate rules to establish procedures for the allocation of such credits including, but not limited to, the application process, due dates for applications, the standards to be used for evaluating applications, documentation that will be provided to taxpayers to substantiate the amount of tax credits allocated to such taxpayers and any other provisions deemed necessary and appropriate. Although much of the law that established the New York City biotechnology credit is substantially identical to the law that established the New York State Qualified Emerging Technologies Facilities, Operations and Training Credit, these rules only apply to determination and implementation of the New York City credit. For purposes of this chapter, "credit" shall mean the New York City biotechnology credit.

19 RCNY § 48-02 Application Procedure.

§ 48-02 Application Procedure. (a) An applicant for the credit must submit an application on a form or in a format established by the Commissioner of Finance ("Commissioner") to the Department of Finance ("Department") no later than January 15 in the calendar year that immediately follows the calendar year for which the credit is sought. (b) The Department shall make a determination on the application based upon the applicable provisions of State and local law and the criteria set forth in 19 RCNY § 48-03. (c) The Department may request additional documentation to support representations made in any credit application, including, but not limited to, copies of tax returns and financial statements. (d) If any application is approved, the Department shall issue a certificate of eligibility for benefits to the applicant. If the application is denied, the Department shall provide the applicant with a notice of denial which shall state the reasons therefor. An applicant shall not receive a biotechnology credit against tax until the Department has issued the applicant a certificate of eligibility for benefits.

19 RCNY § 48-03 Allocation of Credit.

§ 48-03 Allocation of Credit. (a) Maximum aggregate amount of credits. The aggregate amount of biotechnology credits allowed for all applicants in any calendar year shall not exceed $3 million. (b) Allocated credit. In the event that for any calendar year, the Department approves credit applications which in the aggregate total more than $3 million in credits, the Department shall allocate the amount of the credits for such calendar year among eligible applicants on a pro rata basis. The allocated credit to each applicant shall be determined by multiplying the amount of the original credit that was approved by the Department for such applicant by a fraction, the numerator of which is $3 million, and the denominator of which is the aggregate amount of the credits approved by the Department for all applicants for the calendar year. (c) Notice of allocated credit. The Department shall mail a notice substantiating the amount of the allocated credit to all applicants who qualified to receive an allocated credit. (d) The amount of the credit determined in the manner described in subdivision (b) of this section shall be the final amount of the credit for such calendar year. An applicant may not carry over to a subsequent tax year the difference between the allocated credit and the original amount of approved credit.

19 RCNY § 48-04 Criteria for Evaluation of Applications.

§ 48-04 Criteria for Evaluation of Applications. Any of the following shall be grounds for the Department to deny an application: (a) an application is not substantially complete; (b) an application is not filed on a form or in a format established by the Commissioner of Finance; (c) an application is submitted later than January 15 in the calendar year that immediately follows the calendar year for which the credit is sought; (d) an applicant has not submitted any additional documentation requested by the Department as authorized by 19 RCNY § 48-02(c); or (e) the Department determines that an applicant knowingly submitted false or misleading information.

19 RCNY § 48-05 Examination of Credit Application and Tax Return; Retention of Records.

§ 48-05 Examination of Credit Application and Tax Return; Retention of Records. The Commissioner of Finance, for the purpose of ascertaining the correctness of any application for credit or tax return on which a credit was claimed, shall have the power to examine or to cause to have examined, by any agent or representative designated by the commissioner for that purpose, any books, papers, records or memoranda bearing upon the matters required to be included in an application for a credit or a return on which a credit is claimed.

Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-41337Fetched: 10/24/2026