Qualified Emerging Technology Company Certification and Capital Tax Credit

The Qualified Emerging Technology Company (QETC) Certification and Capital Tax Credit provides a tax credit for certain businesses. These businesses are considered "qualified emerging technology companies," or "QETCs."

A QETC is a company located in New York State with total annual product sales of $10 million or less, and meets either of the following criteria:

1. Primary 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

2. The company has research and development (R&D) activities in New York State. Its ratio of research funds to net sales equals or exceeds the average ratio for all surveyed companies, as determined by the National Science Foundation.

Certification of a QETC by the New York State Commissioner of Taxation and Finance is required to claim the QETC Capital Tax Credit.

Capital Tax Credit -The QETC Capital Tax Credit is computed on each qualified investment made by a taxpayer during the year in a certified QETC.

It is the sum of:

• 10% of qualified investments in certified QETCs with a useful life of four years; and
• 20% of qualified investments in certified QETCs with a useful life of nine years.