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QETC employment credit

Who is eligible?

You are entitled to this refundable credit if you or your business:

  • is a qualified emerging technology company (QETC), and
  • the average number of individuals employed full-time by the QETC in New York State during the tax year is at least 101% of the QETC's base year employment number.

What is a qualified emerging technology company?

A qualified emerging technology company, as defined in Section 3102-e of the Public Authorities Law (PAL), is a company located in New York State that has 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 under section 3102-e(1)(b) of the PAL.  
  • It has research and development (R&D) activities in New York State, and its ratio of R&D funds to net sales equals or exceeds the National Science Foundation (NSF) average ratio for all surveyed companies classified.          

Which NSF average ratio should you use?

There are two average ratios for all surveyed companies classified on the NSF’s survey. One average ratio is for companies doing R&D funded by the federal government; the other is for companies doing R&D without funding from the federal government. The NSF average ratio for all surveyed companies classified is deemed to be the lesser of these ratios, as reflected in the table below.


If the certification period begins 

on or after        and       on or before,                use this percentage

1/1/2014                     12/31/2014             2.6%                   
1/1/2015                     12/31/2015 2.7%
1/1/2016                     12/31/2016 2.9%
1/1/2017                     12/31/2017 3.3%
1/1/2018                     12/31/2018 3.5%
1/1/2019                     12/31/2019 3.5%
1/1/2020                    12/31/2020 3.5%
1/1/2021                     12/31/2021 3.8%
1/1/2022                    12/31/2022 4.1%
1/1/2023                    12/31/2023 4.0%

How much is the credit?

  • The amount of the credit is equal to the average number of full-time employees in New York State for the current tax year, minus the QETC's base year employment number, multiplied by $1,000.
  • The credit is available for three consecutive years.

Additional information

To learn about other New York State tax credits available to businesses, see Business incentives.