Life sciences research and development tax credit
Who is eligible?
You are entitled to this refundable credit if you or your business:
- is a new business, and has been certified by Economic Development as qualified life sciences company, and
- paid or incurred qualified research and development expenses in New York State, and
- received a certificate of tax credit issued by Empire State Development (ESD).
The credit is available for tax years beginning on or after January 1, 2018, but before January 1, 2028.
The Life Sciences Research and Development Tax Credit Program is administered by Empire State Development. For more information about the program application and approval process, visit Life Sciences Research and Development Tax Credit Program.
How much is the credit?
- The credit is equal to:
- 15% of the qualified life sciences company’s research and development expenditures in New York State for a company that employs 10 or more persons.
- 20% of the qualified life sciences company’s research and development expenditures in New York State for a company that employs fewer than 10 persons.
- The credit is allowed for up to three consecutive years and is limited to $500,000 per year.
- ESD will issue a certificate of tax credit showing the amount of tax credit allowed and the tax year the credit may be claimed.
- Form CT-648, Life Sciences Research and Development Tax Credit, and its instructions, Form CT-648-I (for corporations); or
- Form IT-648, Life Sciences Research and Development Tax Credit, and its instructions, Form IT-648-I (for all others)
- ESD’s website
To learn about other New York State tax credits available to businesses, see Business incentives