Section 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.