§ 3102-E — Emerging technology industrial classifications

§ 3102-e. Emerging technology industrial classifications. 1.\nDefinitions. As used in this section:\n (a) "Department" shall mean the New York state department of taxation\nand finance.\n * (b) "Emerging technologies" shall mean:\n (1) advanced materials and processing technologies that involve the\ndevelopment, modification, or improvement of one or more materials or\nmethods to produce devices and structures with improved performance\ncharacteristics or special functional attributes, or to activate, speed\nup, or otherwise alter chemical, biochemical, or medical processes. Such\ntechnologies shall include, but not be limited to, the following: metal\nalloys, metal matrix and ceramic composites, advanced polymers, thin\nfilms, membranes, superconductors, electronic and photonic materials,\nbioactive materials, bioprocessing, genetic engineering, catalysts,\nwaste emissions reduction and waste processing technologies;\n (2) engineering, production, and defense technologies that involve\nknowledge-based control systems and architectures, advanced fabrication\nand design processes, equipment, and tools, or propulsion, navigation,\nguidance, nautical, aeronautical and astronautical ground and airborne\nsystems, instruments, and equipment. Such technologies shall include,\nbut not be limited to, the following: computer-aided design and\nengineering, computer-integrated manufacturing, robotics and automated\nequipment, integrated circuit fabrication and test equipment, sensors,\nbiosensors, signal and image processing, medical and scientific\ninstruments, precision machining and forming, biological and genetic\nresearch equipment, environmental analysis, remediation, control, and\nprevention equipment, defense command and control equipment, avionics\nand controls, guided missile and space vehicle propulsion units,\nmilitary aircraft, space vehicles, and surveillance, tracking, and\ndefense warning systems;\n (3) electronic and photonic devices and components for use in\nproducing electronic, optoelectronic, mechanical equipment and products\nof electronic distribution with interactive media content. Such\ntechnologies shall include, but not be limited to, the following:\nmicroprocessors, logic chips, memory chips, lasers, printed circuit\nboard technology, electroluminescent, liquid crystal, plasma, and vacuum\nfluorescent displays, optical fibers, magnetic and optical information\nstorage, optical instruments, lenses, and filters, simplex and duplex\ndata bases, and solar cells;\n (4) information and communication technologies, equipment and systems\nthat involve advanced computer software and hardware, visualization\ntechnologies, and human interface technologies. Such technologies shall\ninclude, but not be limited to, the following: operating and\napplications software, artificial intelligence, computer modeling and\nsimulation, high-level software languages, neural networks, processor\narchitecture, animation and full-motion video, graphics hardware and\nsoftware, speech and optical character recognition, high-volume\ninformation storage and retrieval, data compression, broadband\nswitching, multiplexing, digital signal processing, and spectrum\ntechnologies; and\n (5) biotechnologies, which shall be defined as technologies involving\nthe scientific manipulation of living organisms, especially at the\nmolecular and/or the sub-molecular genetic level, to produce products\nconducive to improving the lives and health of plants, animals, and\nhumans; and the associated scientific research, pharmacological,\nmechanical, and computational applications and services connected with\nthese improvements. Activities included with such applications and\nservices shall include, but not be limited to, alternative mRNA\nsplicing, DNA sequence amplification, antigenetic switching,\nbioaugmentation, bioenrichment, bioremediation, chromosome walking,\ncytogenetic engineering, DNA diagnosis, fingerprinting, and sequencing,\nelectroporation, gene translocation, genetic mapping, site-directed\nmutagenesis, bio-transduction, bio-mechanical and bio-electrical\nengineering, and bio-informatics; and\n (6) remanufacturing technologies, which shall be defined as processes\nwhereby eligible commodities are restored to their original performance\nstandards and are thereby diverted from the solid waste stream,\nretaining the majority of components that have been through at least one\nlife cycle and replacing consumable portions to enable such commodities\nto be restored to their original functions. For the purposes of this\nsubdivision, "eligible commodities" shall mean commodities (excluding\npaper) used in conjunction with or as a part of equipment performing the\nfunctions of facsimile machines, photocopiers, printers, duplication\nequipment, or any combination thereof, including, but not limited to the\nfollowing: magnetic ink character recognition cartridges, photo\nconductor assemblies, electrostatic cartridges, thermal imaging\ncartridges, toner cartridges, ink jet cartridges, and printer\ncartridges. Provided further, that "eligible commodities" shall also\ninclude equipment used to record single frame images on film, where such\nequipment and film are marketed and sold as a single integrated consumer\nproduct, and where such equipment and film may be submitted in whole to\na photograph processor for the purposes of processing.\n * NB Applies to taxable years beginning on or after January 1, 2001\n (c) "Qualified emerging technology company" shall mean a company\nlocated in New York state: (1) whose primary products or services are\nclassified as emerging technologies and whose total annual product sales\nare ten million dollars or less; or (2) a company which has research and\ndevelopment activities in New York state and whose ratio of research and\ndevelopment funds to net sales equals or exceeds the average ratio for\nall surveyed companies classified as determined by the National Science\nFoundation in the most recent published results from its Survey of\nIndustry Research and Development, or any comparable successor survey as\ndetermined by the department, and whose total annual product sales are\nten million dollars or less.\n The definition of "research and development funds" shall be the same\nas that used by the National Science Foundation in the aforementioned\nsurvey.\n 2. The New York state science and technology foundation shall prepare\na report, no later than March thirty-first, two thousand four, analyzing\nthe effectiveness of the tax credits created by subdivisions twelve-E\nand twelve-F of section two hundred ten of the tax law, in light of\ntheir influence on the start-up, growth, and retention of emerging\ntechnology companies in the state, on job growth within high technology\ncompanies, and on the expansion of collaborative research and\ndevelopment undertaken by industry and academia. The department shall\nannually provide the New York state science and technology foundation\nwith aggregate statistics, pursuant to existing legal requirements for\nconfidentiality of taxpayer records, on the number of taxpayers applying\nfor such credits, the number of employees employed full time by\nqualified emerging technology companies, and the total amount and the\namount of incremental basic research payments, made to a qualified\norganization. This report shall be delivered to the governor, the\nspeaker of the assembly, the temporary president of the senate, and the\nchairpersons of the assembly committee on economic development, job\ncreation, commerce and industry and the senate committee on commerce,\neconomic development and small business.\n