R&D Tax Credits in New York

Can I Claim R&D Tax Credits in New York?

Yes, you can claim R&D tax credits in New York. The state offers a research and development tax credit program known as the Excelsior Research and Development Tax Credit Life Sciences Research and Development Tax Credit.

New York

New York offers a strong Research and Development (R&D) tax credit program for businesses. The credit aims to encourage and reward companies investing in innovation and contributing to the growth of technology and the economy. There are two distinct tax credits available for research and development in New York. The Excelsior Jobs Program in New York includes tax credits for jobs, investment, child care services, and research and development. The Excelsior R&D program in New York offers a 6% return on eligible research expenditures and 8% return for qualified environment friendly projects. For life sciences organizations, the state offers a Life Sciences Research and Development Tax Credit Program. To be eligible for the New York Research and Development Tax Credit, the businesses must either create or enhance products, processes, or software, have a technological element for research, and employ a methodical approach to experimentation. New York’s Excelsior R&D program provides a 6% return on research expenses that meet eligibility criteria and an 8% return for green projects that meet environmental standards. Life sciences organizations can take advantage of New York State’s Life Sciences Research and Development Tax Credit Program, which provides a refundable credit of up to $500,000 per year for up to three years, at a rate of either 15% or 20%, depending on the number of employees. Companies with 10 or more employees are eligible for a 15% credit, while those with fewer than 10 employees can receive a 20% credit.

What are the Potential Benefits of the R&D Tax Credit?

Companies that qualify can save a substantial amount of money by using R&D tax credits. These benefits include:

  • Increasing Cash Flow
  • Federal and State Dollar-for-Dollar Income Tax Reduction
  • Claim Credits for Open Tax Years Going Back 3-4 Years
  • Reducing Your Tax Rate


In credits claimed
Estimate My Credit

Who Can Claim the R&D Tax Credit?

R&D tax credits are not limited to scientific researchers or creators of groundbreaking products. They encompass a much broader range of activities than most people realize.

Companies, regardless of their size or industry, can qualify for Research and Development (R&D) Tax Credits as long as they meet the government's criteria for innovative activities. Unfortunately, many companies are unaware of their eligibility and are missing out on substantial federal and state tax credits. Don't miss the opportunity to claim the money that is rightfully yours. Learn about the R&D tax credits available to your company and take advantage of this valuable benefit.

Qualified research activities (QRAs), also known as research and development work, can be categorized into four main areas: improved business component, technological uncertainty, process of experimentation, and technological in nature. The expenses that fall under the umbrella of qualified research expenses (QREs) and contribute to these categories include patents, research and development supplies, salaries for US employees and subcontractors, and hosting costs for off-premise computers and other technology. By conducting QREs in any of these categories, businesses can claim valuable tax credits while advancing innovation and progress in their field.

The activities that qualify for the New York R&D tax credit are the same ones driving growth in your business.

New York R&D Tax Credit Studies Completed


How Do I Claim the R&D Tax Credit?

To claim New York state tax credits, businesses must submit a consolidated funding application to their respective Empire State Development (ESD) regional office. Upon approval, the business must meet job and investment requirements to receive tax credits. Businesses must file their tax returns on time to claim the credits and submit a performance report within 30 days of the end of the taxable year to receive a certificate of tax credit for succeeding tax periods.