Bill Summary: A05407 - Research and Development Centers Program

• Creates seven designated Research and Development Centers in New York State (Erie, Monroe, Onondaga, Albany, Broome, New York City, and Nassau/Suffolk counties), each not exceeding four square miles, to foster physical, engineering, and biological research

• Establishes tax credits for Certified Research and Development Enterprises (CRDEs) including: 5% wage credit on employment increases, 5% credit on qualified research and development expenses, 10% credit on grants to university research centers, and real property tax credits with sliding benefit factors over 15 years

• Provides additional tax benefits including increased investment tax credit rates (9% and 18% for R&D property in R&D zones), exclusion of income from qualified research services and royalty payments from taxable income, and Empire Zone program benefits

• Designates Certified Research Production Facilities (CRPFs) built in conjunction with CRDEs to receive all Empire Zone tax benefits for 15 years, with employment factor-based credits ranging from 0% to 100%

• Establishes certification and revocation procedures requiring joint approval by the Commissioner and Commissioner of Labor, with decertification possible for misrepresentation, failure to meet employment targets, or non-compliance with representations in applications; designation effective through December 31, 2029