Qualified Emerging Technology Company Certification and Capital Tax Credit

The Qualified Emerging Technology Company (QETC) Certification and Capital Tax Credit gives a tax credit to some businesses.

A QETC is a company in New York State. It must have product sales of $10 million or less each year. It must meet one of these criteria:

• Main products or services include:

  • Advanced materials and processing technologies
  • Engineering, production and defense
  • Electronic and photonic devices and components
  • Information and communications technologies
  • Biotechnologies and nanotechnologies
  • Remanufacturing technologies

• The company does research and development (R&D) in New York State. Its ratio of research funds to net sales is at least as high as the average ratio for all surveyed companies, as determined by the National Science Foundation.

The New York State Commissioner of Taxation and Finance must certify a QETC to claim the QETC Capital Tax Credit.

Capital Tax Credit

The QETC Capital Tax Credit is calculated on each qualified investment made by a taxpayer during the year in a certified QETC. It is the sum of:

• • 10 percent of qualified investments in certified QETCs with a useful life of four years
  • 20 percent of qualified investments in certified QETCs with a useful life of nine years