NY A04860

Establishes a Research and Development Centers Program to foster physical, engineering, and biological research, with seven designated centers (not exceeding four square miles each) located in Erie, Monroe, Onondaga, Albany, Broome, New York City, and Nassau/Suffolk counties.

Creates four tax credits for Certified Research and Development Enterprises (CRDEs): a wage credit equal to 5% of average wages for new hires, an expense credit of 5% for qualified R&D expenses, a grant credit of 10% for donations to university research centers, and a real property tax credit with employment-based factors.

Provides additional tax benefits to CRDEs including Empire Zone benefits, increased investment tax credits (9% for R&D property, 18% if located in R&D center), and income exclusions for qualified research services (50%) and royalty payments (20%).

Allows Certified Research Production Facilities (CRPFs) to access Empire Zone tax benefits and provides employment increase factors ranging from 0 to 1.0 based on full-time employee levels, with a 15-year benefit period.

Increases investment tax credit rates for research and development property located in research and development zones to 18% for Article 9-A (corporate tax) and 14% for Article 22 (partnership tax), effective for taxable years beginning after 2011.