New York Issues Qualified Emerging Technology Company (QETC) Guidance

The New York State Tax Department has issued guidance that clarifies the qualifications for claiming the Qualified Emerging Technology Company (QETC) tax credits.   This memorandum clarifies that a business:

  • must be engaged in creating or developing emerging technologies referenced in section 3102-e of the Public Authorities Law to qualify under the primary products or services test; 
  • must qualify under the primary products or services test to claim the QETC facilities, operations, and training credit; and 
  •  may use an alternative method to compute the primary products or services test if the business does not make sales of products or services.

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The State has also posted the tax year 2011 QETC tax credit forms and instructions,which reflect  this clarification. 
Given that these 2011 forms were unavailable, businesses may have filed the year 2011 QETC tax credit on the year 2010 QETC tax credit form out of necessity.   The 2011 QETC tax credit forms DTF-619 and DTF-621 include lines that ask for the emerging technology expenditures included on the federal return.   The 2010 forms did not ask for that information.  If a business receives a notice for non-compliance because of this, they should contact their tax advisor for assistance.

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