N.Y. Public Authorities Law § 3102-e: Emerging technology industrial classifications

§ 3102-e. Emerging technology industrial classifications. 1.

Definitions. As used in this section:

(a) "Department" shall mean the New York state department of taxation

and finance.

* (b) "Emerging technologies" shall mean:

(1) advanced materials and processing technologies that involve the

development, modification, or improvement of one or more materials or

methods to produce devices and structures with improved performance

characteristics or special functional attributes, or to activate, speed

up, or otherwise alter chemical, biochemical, or medical processes. Such

technologies shall include, but not be limited to, the following: metal

alloys, metal matrix and ceramic composites, advanced polymers, thin

films, membranes, superconductors, electronic and photonic materials,

bioactive materials, bioprocessing, genetic engineering, catalysts,

waste emissions reduction and waste processing technologies;

(2) engineering, production, and defense technologies that involve

knowledge-based control systems and architectures, advanced fabrication

and design processes, equipment, and tools, or propulsion, navigation,

guidance, nautical, aeronautical and astronautical ground and airborne

systems, instruments, and equipment. Such technologies shall include,

but not be limited to, the following: computer-aided design and

engineering, computer-integrated manufacturing, robotics and automated

equipment, integrated circuit fabrication and test equipment, sensors,

biosensors, signal and image processing, medical and scientific

instruments, precision machining and forming, biological and genetic

research equipment, environmental analysis, remediation, control, and

prevention equipment, defense command and control equipment, avionics

and controls, guided missile and space vehicle propulsion units,

military aircraft, space vehicles, and surveillance, tracking, and

defense warning systems;

(3) electronic and photonic devices and components for use in

producing electronic, optoelectronic, mechanical equipment and products

of electronic distribution with interactive media content. Such

technologies shall include, but not be limited to, the following:

microprocessors, logic chips, memory chips, lasers, printed circuit

board technology, electroluminescent, liquid crystal, plasma, and vacuum

fluorescent displays, optical fibers, magnetic and optical information

storage, optical instruments, lenses, and filters, simplex and duplex

data bases, and solar cells;

(4) information and communication technologies, equipment and systems

that involve advanced computer software and hardware, visualization

technologies, and human interface technologies. Such technologies shall

include, but not be limited to, the following: operating and

applications software, artificial intelligence, computer modeling and

simulation, high-level software languages, neural networks, processor

architecture, animation and full-motion video, graphics hardware and

software, speech and optical character recognition, high-volume

information storage and retrieval, data compression, broadband

switching, multiplexing, digital signal processing, and spectrum

technologies; and

(5) biotechnologies, which shall be defined as technologies involving

the scientific manipulation of living organisms, especially at the

molecular and/or the sub-molecular genetic level, to produce products

conducive to improving the lives and health of plants, animals, and

humans; and the associated scientific research, pharmacological,

mechanical, and computational applications and services connected with

these improvements. Activities included with such applications and

services shall include, but not be limited to, alternative mRNA

splicing, DNA sequence amplification, antigenetic switching,

bioaugmentation, bioenrichment, bioremediation, chromosome walking,

cytogenetic engineering, DNA diagnosis, fingerprinting, and sequencing,

electroporation, gene translocation, genetic mapping, site-directed

mutagenesis, bio-transduction, bio-mechanical and bio-electrical

engineering, and bio-informatics; and

(6) remanufacturing technologies, which shall be defined as processes

whereby eligible commodities are restored to their original performance

standards and are thereby diverted from the solid waste stream,

retaining the majority of components that have been through at least one

life cycle and replacing consumable portions to enable such commodities

to be restored to their original functions. For the purposes of this

subdivision, "eligible commodities" shall mean commodities (excluding

paper) used in conjunction with or as a part of equipment performing the

functions of facsimile machines, photocopiers, printers, duplication

equipment, or any combination thereof, including, but not limited to the

following: magnetic ink character recognition cartridges, photo

conductor assemblies, electrostatic cartridges, thermal imaging

cartridges, toner cartridges, ink jet cartridges, and printer

cartridges. Provided further, that "eligible commodities" shall also

include equipment used to record single frame images on film, where such

equipment and film are marketed and sold as a single integrated consumer

product, and where such equipment and film may be submitted in whole to

a photograph processor for the purposes of processing.

* NB Applies to taxable years beginning on or after January 1, 2001

(c) "Qualified emerging technology company" shall mean a company

located in New York state: (1) whose primary products or services are

classified as emerging technologies and whose total annual product sales

are ten million dollars or less; or (2) a company which has research and

development activities in New York state and whose ratio of research and

development funds to net sales equals or exceeds the average ratio for

all surveyed companies classified as determined by the National Science

Foundation in the most recent published results from its Survey of

Industry Research and Development, or any comparable successor survey as

determined by the department, and whose total annual product sales are

ten million dollars or less.

The definition of "research and development funds" shall be the same

as that used by the National Science Foundation in the aforementioned

survey.

2. The New York state science and technology foundation shall prepare

a report, no later than March thirty-first, two thousand four, analyzing

the effectiveness of the tax credits created by subdivisions twelve-E

and twelve-F of section two hundred ten of the tax law, in light of

their influence on the start-up, growth, and retention of emerging

technology companies in the state, on job growth within high technology

companies, and on the expansion of collaborative research and

development undertaken by industry and academia. The department shall

annually provide the New York state science and technology foundation

with aggregate statistics, pursuant to existing legal requirements for

confidentiality of taxpayer records, on the number of taxpayers applying

for such credits, the number of employees employed full time by

qualified emerging technology companies, and the total amount and the

amount of incremental basic research payments, made to a qualified

organization. This report shall be delivered to the governor, the

speaker of the assembly, the temporary president of the senate, and the

chairpersons of the assembly committee on economic development, job

creation, commerce and industry and the senate committee on commerce,

economic development and small business.