STATE OF NEW YORK ________________________________________________________________________ 985 2019-2020 Regular Sessions IN ASSEMBLY January 14, 2019 ___________ Introduced by M. of A. KOLB, BARCLAY -- Multi-Sponsored by -- M. of A. CROUCH, GIGLIO, WALSH -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing a credit for on-the-job training The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 53 to read as follows: 3 53. Credit for on-the-job training. (a) General. A taxpayer, who has 4 one hundred employees or less, shall be allowed a credit, to be computed 5 as hereinafter provided, against the tax imposed by this article, for 6 providing on-the-job training to an employee. 7 (b) On-the-job training. On-the-job training shall mean training 8 which is specified in an agreement between the grantee and the employer 9 and includes both work experience and training, formalized in an outline 10 defining each training component and outcomes of the training process. 11 (c) On-the-job training expenditures. On-the-job training expenditures 12 shall include expenditures for the purchase of either commercial or 13 customized instructional materials including software, texts, manuals or 14 equipment that can be used to simulate job tasks; payments to consult- 15 ants, trainers, or instructors who are not employees of the firm; and 16 costs associated with the use, rental, or lease of a classroom or other 17 dedicated space for the training. 18 (d) Amount of credit. A credit shall be allowed for the amount of 19 on-the-job training expenditures incurred by an employer. The amount of 20 credit shall not exceed three hundred dollars per employee for whom such 21 training has been provided during the taxable year in which such expend- 22 itures were made. 23 (e) Carryover. The credit allowed under this subdivision for any taxa- 24 ble year shall not reduce the tax due for such year to less than the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04105-01-9A. 985 2 1 amount prescribed in paragraph (d) of subdivision one of section two 2 hundred ten of this article. Provided, however, if the amount of credit 3 allowable under this subdivision for any taxable year reduces the tax to 4 such amount, any amount of credit not deductible in such taxable year 5 may be carried over to the following year or years, and may be deducted 6 from the taxpayer's tax for such year or years. 7 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 8 of the tax law is amended by adding a new clause (xliv) to read as 9 follows: 10 (xliv) Credit for on-the-job Costs under subdivision 11 training under subsection (jjj) fifty-three of 12 section two hundred ten-B 13 § 3. Section 606 of the tax law is amended by adding a new subsection 14 (jjj) to read as follows: 15 (jjj) Credit for on-the-job training. (1) General. A taxpayer, who 16 has one hundred employees or less, shall be allowed a credit, to be 17 computed as hereinafter provided, against the tax imposed by this arti- 18 cle, for providing on-the-job training to an employee. 19 (2) On-the-job training. On-the-job training shall mean training 20 which is specified in an agreement between the grantee and the employer 21 and includes both work experience and training, formalized in an outline 22 defining each training component and outcomes of the training process. 23 (3) On-the-job training expenditures. On-the-job training expenditures 24 shall include expenditures for the purchase of either commercial or 25 customized instructional materials including software, texts, manuals or 26 equipment that can be used to simulate job tasks; payments to consult- 27 ants, trainers, or instructors who are not employees of the firm; and 28 costs associated with the use, rental, or lease of a classroom or other 29 dedicated space for the training. 30 (4) Amount of credit. A credit shall be allowed for the amount of 31 on-the-job training expenditures incurred by an employer. The amount of 32 credit shall not exceed three hundred dollars per employee for whom such 33 training has been provided during the taxable year in which such expend- 34 itures were made. 35 (5) Carryover. If the amount of credit allowable under this subsection 36 for any taxable year shall exceed the taxpayer's tax for such tax year, 37 the excess may be carried over to the following year or years, and may 38 be deducted from the taxpayer's tax for such year or years. 39 § 4. This act shall take effect immediately and shall apply to taxable 40 years beginning on and after the first of January next succeeding the 41 date on which it shall have become a law.