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Department of Taxation and Finance

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 a 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 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 Empire State Development: Life Sciences Research and Development Tax Credit Program.

How much is the credit?

The credit is equal to:

  • 15% of the research and development expenditures in New York State for a company that employs 10 or more persons during the tax year, or 
  • 20% of the research and development expenditures in New York State for a company that employs fewer than 10 persons during the tax year.

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.

Additional information

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

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