Semiconductor research and development credit

Who is eligible?

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

• undertakes a semiconductor research and development project in New York State;
• is approved to participate in the semiconductor research and development credit program; and
• is issued a certificate of tax credit by Empire State Development (ESD).

For more information about the program and the application process, visit the Empire State Development website. ESD makes all determinations regarding credit eligibility.

How much is the credit?

The credit is:

• up to 15% of the cost or other basis for federal income tax purposes of qualified investments in semiconductor research and development projects located in New York State; and
• allowable in each tax year for which a certificate of tax credit has been issued.

Note: This credit is allowable for up to ten consecutive tax years.

How do I claim the credit?

To claim the credit, complete and file Form CT-668 or IT-668, Semiconductor Research and Development Credit, as applicable, with your tax return. You must:

• claim only the amount listed on the certificate of tax credit for that tax year; and
• submit a copy of the certificate with your return.

Additional information

Form CT-668, Semiconductor Research and Development Credit, and its instructions (for corporations)
Form IT-668, Semiconductor Research and Development Credit, and its instructions (for all others)