Investment Tax Credit (ITC)

The ITC is available to manufacturers. The Investment Tax Credit (ITC) is 5% of the first $350 million of new or expanded manufacturing production facilities and 4% of investments over $350 million. The employment incentive credit (EIC) is based on increases from base year employment and equals 1.5%, 2.0%, and 2.5% of the ITC amount if current year employment is 101%, 102%, or 103% of base year employment, respectively.

For research and development (R&D) property, taxpayers may use the regular ITC rate plus any applicable EIC or claim an optional 9% rate and not claim the EIC. R&D property is generally that used for experimental or laboratory work but not for testing, inspection or quality control.

Unused credits can be carried forward up to 15 years. A new business, which is generally one newly created in New York or relocated to New York, can receive a refund of unused ITC during its first five taxable years.

Other high tech tax credit programs

Fuel Cell Electricity Generating Equipment Credit: Credit of 20% of qualified costs or $1,500 per unit, whichever is less, for qualified fuel cell electric generating equipment that uses proton exchange membrane fuel cells up to 100 kilowatts rated capacity. Unused credits may be carried forward.

• Alternative Fuel Refueling Property: Credit of 50% of alternative fuel refueling property which includes natural gas, liquefied petroleum gas, hydrogen, electricity, and other fuels which are at least 85% methanol, ethanol, and/or any other alcohol.
• Industrial or Manufacturing Business Credit: Equal to taxes paid by the taxpayer's suppliers for gas, electricity, steam, water or refrigeration used during the year. This credit expires for tax years ending on or after January 1, 2007.
• Green Building Credit: Construction, rehabilitation and maintenance of buildings with high environmental standards and energy efficiency. Consists of six different components, each with specific requirements. Taxpayer must be certified by Department of Environmental Conservation to be eligible for this credit which can be claimed for 5 years.