Industry Clusters
- Biomedical
Introduction
Special Industry Information
Industry Specialist
Introduction
The Future of the Biomedical Industries is in New
York State. According to a survey in the July 2006
issue of Business Facilities Magazine, New York
State is ranked first in the nation for biotech
growth. This science represents a formidable force
in the 21st century and New York State is at the
forefront of cutting-edge research and developments.
As a world leader in the biomedical
industries, New York State remains the
destination of choice for many high profile
biotech, pharmaceutical and medical
manufacturing companies, such as:
- Pfizer
- Bristol-Myers Squibb
- Sanofi
- Johnson & Johnson
- Bausch & Lomb
- Bayer
- Welch Allyn
- J&J's Ortho-Clinical Diagnostics
- Celltech
- Wyeth
- Genecor
- Albany Molecular Research
For more information on New York State’s
biotech activities, please visit
www.nylovesbio.org.
New York State offers a host of resources and
incentives for businesses in the biomedical area.
The State's high-tech infrastructure boasts an
abundance of world-class facilities:
- Academic Centers and Research Institutions:
- According to the National Science
Foundation’s Division of Science Resources
Statistics, New York State is ranked second in
the nation for academic research and development
expenditures at nearly $3.5 billion and ranked
second in the number of scientists and
engineering doctorates awarded in 2005 at 2419.
In 2005, New York State was ranked third
nationwide for the number of grant awards
provided to its research institutions at 4898
and a value of $2.72 billion, according to the
National Institute of Health.
- Hospitals and Medical Research Institutions:
- New York State is a preeminent center for
health care and medical research and plays a key
role in the international medical technology
industry. With a high concentration of
hospitals, medical research institutions, and
leading surgeons and physicians who pioneer new
practices and procedures, New York State serves
as a major base for clinical trials of medical
technology products.
- World-class Workforce: - New York
State is home to many of the world's preeminent
surgeons, physicians, scientists and a skilled,
high-tech workforce. According to a study
commissioned by the Biotechnology Industry
Organization in 2004, New York State had more
than 33,000 biological scientists in the
workforce, the second highest among states.
For more information on how your biomedical business
can grow and prosper in New York State, we encourage
you to contact our Industry
Specialist.
Special Industry Information
ESD's at-a-glance profile of the Biomedical
industry in New York State offers important
information to help your company better understand
the general state of the industry. Our white papers
offer you the latest research available,
highlighting the Biomedical industry.
Financial/Tax Incentives
The Biomedical industry in New York State
continues to evolve, and as a result of this dynamic
marketplace, ESD has developed a variety of
special initiatives and incentives
for companies in this industry to meet their
changing needs.
Biotechnology Industry Growth Fund - In
2006, a new $200 million challenge grant program
known as the Biotechnology and Biomedicine Research
Initiative was created through the New York State
Charitable Assets Foundation*.
The Program allocates $40 million of capital
funding and $160 million to recruit the most
talented researchers and scientists and to acquire
state-of-the-art technology and equipment, among
other activities. Eligible applicants must provide a
three-to-one match for the funds, which would spur a
total research investment of $800 million. Grants
through this new program are expected to generate an
additional $600 million in federal, nonprofit and
private sector matching funds to expand
biotechnology and biomedicine R&D at public and
private academic and nonprofit biomedical research
institutions throughout the State.
*The Charitable Asset Foundation
was established in January 2002 when Empire Blue
Cross Blue Shield converted from a nonprofit to a
for-profit company. As part of this conversion, the
company, Well Choice, issued all of its authorized
stock to the newly created New York Public Asset
Fund and the Charitable Asset Foundation. The fund
was established to receive 95 percent of
WellChoice’s value and the foundation, a New York
nonprofit, received the other 5 percent.
Investment Tax
Credit - A tax credit equal to 5% of
qualifying investments up to $350 million (4% on
amounts over $350 million, and for personal income
taxpayers) in buildings and tangible personal
property, acquired by purchase, with a useful life
of four years or more and used in production or
research and development.
- Optional R&D rate of 9% (7% for personal
income taxpayers) of qualified investment.
- New businesses may take a refund of unused
credit; other unused credits may be carried
forward 15 years (10 years for personal income
taxpayers).
TAX CREDITS FOR QUALIFIED EMERGING TECHNOLOGY
COMPANIES (QETC)
Qualified Emerging Technology Employment
Credit- A refundable tax credit of
$1,000 per new full-time employee (employees in
excess of 100% of base year employment level),
available for one three-year period (the year the
credit is first claimed and in each of the next two
years) provided minimum employment levels are
maintained.
Qualified Emerging Technology Company
Capital Tax Credit - QETC investors are
allowed a credit equal to a percentage of each
qualified investment in a qualified emerging
technology company that has been certified by the
Commissioner of Taxation and Finance as follows:
- 10% of qualified investments,
provided the taxpayer certifies that the
qualified investment will not be sold,
transferred, traded, or disposed of during the
four years following the year in which the
credit is first claimed (maximum credit of
$150,000 per taxpayer); or
- 20% of qualified investments,
provided the taxpayer certifies that the
qualified investment will not be sold,
transferred, traded, or disposed of during the
nine years following the year in which the
credit is first claimed (maximum credit of
$300,000 per taxpayer).
Qualified Emerging Technology Company
Facilities, Operations and Training Tax Credit –
a refundable tax credit equal to the sum of the
following three components:
- 18% of the cost or other basis for
federal income tax purposes of “research and
development property” acquired by the
taxpayer by purchase and placed in service
during the taxable year;
- 9% for “qualified research expenses”
paid or incurred by the taxpayer in the taxable
year; and,
- 100% of “qualified high technology
training expenditures” paid or incurred by
the taxpayer, up to $4,000 per employee per
taxable year.
An eligible taxpayer may claim these credits in
an amount up to $250,000 per year for four
consecutive taxable years. This credit sunsets on
December 31, 2011.
Biomedical Resources
New York State has an abundance of science and
technology resources available to serve its
burgeoning Biomedical community. Check here for
information on both statewide and regional
resources, including trade associations, research
and development centers, academic and research
institutions, and more. You may also contact one of
our
regional
offices for additional information.
Associations
Supporting Research
List of Biomedical-related Centers for
Advanced Technology (CATs):
Other Regional Resources
Capital Region
Central New York/Mohawk Valley
Finger Lakes
Long Island
Mid-Hudson
New York City
North Country
Southern Tier
Western New York
Industry Specialist
Jeff Janiszewski , Industry Director
Telephone: (518) 292-5247
E-mail:
jjaniszewski@empire.state.ny.us
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