Enacts the "empire innovation act"; provides that a participant in the excelsior jobs program shall be eligible to claim a credit equal to the portion of the full cost of the participant's research and development expenses incurred that relates to the participant's research and development expenditures in New York state during the taxable year; provided however, if the participant receives a federal research and development tax credit calculated on the full cost of the participant's research and development expenses that relates to the participant's research and development expenditures in New York state during the taxable year, then said participant shall only be eligible to claim a credit equal to fifty percent of the portion of the participant's federal research and development tax credit that relates to the participant's research and development expenditures in New York state during the taxable year.
S00303, titled the "Empire Innovation Act," would amend New York’s economic development law to change how the Excelsior Research and Development Tax Credit is calculated for participants in the Excelsior Jobs Program. The bill shifts the credit from a formula tied to 50 percent of the participant’s federal R&D credit to a credit based on the full cost of qualifying research and development expenses incurred in New York State, subject to limits and special rules. If a participant receives a federal R&D credit calculated on the full cost of those expenses, the state credit would instead be limited to 50 percent of the related federal credit amount.
The bill also preserves caps on the credit: generally, the Excelsior R&D credit could not exceed 6 percent of qualified R&D expenditures attributable to activities conducted in New York, or 8 percent for green projects and Green CHIPS projects. It further provides that if the federal R&D credit has expired, the relevant expenditures are to be calculated as if the 2009 federal credit structure and definition were still in effect. The bill also clarifies that New York R&D expenditures, including salary and wage expenses for research and development jobs in the state, may be used as the basis for both the Excelsior R&D credit and the qualified emerging technology company facilities, operations and training credit.
The bill’s impact would be to expand and clarify the state tax incentive framework for research and development activity in New York, potentially increasing the value of the credit for eligible businesses and making in-state R&D spending more central to the calculation. It would affect participants in the Excelsior Jobs Program, companies engaged in research and development, and businesses pursuing green or Green CHIPS projects, while also interacting with the tax law provisions governing qualified emerging technology companies.
No committee transcript or vote history was provided, so there is no recorded floor debate or voting pattern to assess. Based on the bill text alone, the measure appears to be pro-incentive and pro-business, with an emphasis on encouraging R&D investment and job creation in New York. Because there is no discussion record, no specific opposition or controversy can be identified from the available materials.
The main point of potential contention is fiscal: expanding or reworking the credit could reduce state tax revenue, and lawmakers may differ on whether the incentive is sufficiently targeted or generous. Another possible issue is whether the bill’s interaction with federal R&D credit rules and the special treatment for green and Green CHIPS projects creates complexity or unequal treatment among industries.
This bill would amend section 355 of the economic development law to revise the Excelsior Research and Development Tax Credit component. It would allow eligible Excelsior Jobs Program participants to base the credit on New York R&D expenditures, including certain wage and salary costs, and would set credit limits of 6 percent generally and 8 percent for green projects and Green CHIPS projects. It also cross-references the tax law’s qualified emerging technology company credit, potentially affecting how R&D-related expenses are used across state incentive programs.
No committee discussion or vote record was provided, so there is no direct evidence of support or opposition from legislative proceedings. The bill’s text suggests a generally favorable stance toward business investment, innovation, and in-state research and development, indicating a pro-growth, pro-incentive sentiment. Any concerns would likely center on cost and complexity rather than the underlying policy goal.
The most likely area of contention is the fiscal effect of expanding the R&D tax credit, since a larger or more flexible credit could lower state tax receipts. Legislators or stakeholders could also disagree about whether the bill sufficiently targets high-value innovation, whether the special treatment for green and Green CHIPS projects is appropriate, and whether tying the state credit to federal R&D credit concepts adds administrative complexity. No specific opposing individuals or groups are identified in the available record.