A release from the City Council says the biotech tax credit willwork in conjunction with the development of laboratory space at theEast River Science Park, which in July signed its firsttenant, and at the New York Science Center, also known asBioBAT, in the works at the Brooklyn Army Terminal. When they'recompleted, these spaces, along with existing facilities, willprovide approximately two million square feet of laboratory spacein the city.

Under the legislation approved by the council, small biotechfirms engaged primarily in research and development in New YorkCity can receive a refundable tax credit of up to $250,000 a yearagainst the city's general corporation and unincorporated businesstaxes. The credit is intended to help emerging firms offset costsof equipping laboratories, certain qualified research costs andtraining expenses for researchers.

For biotechnology firms that are either new to the city, or thatincrease their employment in the City by at least 5%, there will bean 18% credit toward costs related to purchase or renting ofequipment for testing, quality control or research; a credit of upto 9% for in-house research related operating costs; and a creditof up to $4,000 per employee for certain training expenses.Biotechnology firms that are not increasing their employment arestill eligible for the credit, albeit at a lower rate. The creditis limited to small firms that meet New York State standards asqualified emerging technology companies.