Bill Text: NY A08471 | 2019-2020 | General Assembly | Introduced
Bill Title: Establishes the work opportunity tax credit for businesses with fifty employees or less for hiring a long term unemployed person; a credit shall be allowed of up to $2,400; the total amount of credit provided statewide shall not exceed fifteen million dollars.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A08471 Detail]
Download: New_York-2019-A08471-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8471 2019-2020 Regular Sessions IN ASSEMBLY July 8, 2019 ___________ Introduced by M. of A. ORTIZ -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing the work oppor- tunity tax credit 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 54 to read as follows: 3 54. Work opportunity tax credit. (a) Allowance of credit. A taxpayer 4 shall be allowed a credit, against the tax imposed by this article, of 5 two thousand four hundred dollars for each long term unemployed person 6 hired during a taxable year. Such tax credit shall be applicable only to 7 businesses employing fifty or fewer employees. For the purposes of this 8 subdivision, a "long term unemployed person" shall be an individual who 9 has been a resident of New York for three years immediately preceding 10 hiring and who, prior to being hired by the business eligible for the 11 credit established pursuant to this subdivision, had been unemployed and 12 receiving public assistance for six consecutive months or more, and is 13 retained for full-time employment by such business for at least one 14 year. 15 (b) Application of credit. The credit allowed under this subdivision 16 for any taxable year shall not reduce the tax due for such year to less 17 than the fixed dollar minimum amount prescribed in paragraph (d) of 18 subdivision one of section two hundred ten of this article. However, if 19 the amount of credit allowed under this subdivision for any taxable year 20 reduces the tax to such amount or if the taxpayer otherwise pays tax 21 based on the fixed dollar minimum amount, any amount of credit thus not 22 deductible in such taxable year shall be treated as an overpayment of 23 tax to be credited or refunded in accordance with the provisions of 24 section one thousand eighty-six of this chapter. Provided, however, the 25 provisions of subsection (c) of section one thousand eighty-eight of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05841-04-9A. 8471 2 1 this chapter notwithstanding, no interest shall be paid thereon. The 2 total amount of credit to be provided statewide for this credit, the 3 credit allowed under subsection (kkk) of section six hundred six of this 4 chapter and subdivision (ee) of section fifteen hundred eleven of this 5 chapter shall not exceed fifteen million dollars in the aggregate in a 6 taxable year. 7 (c) Credit recapture. For provisions requiring recapture of credit, 8 see section forty-four of this chapter. 9 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 10 of the tax law is amended by adding a new clause (xlv) to read as 11 follows: 12 (xlv) Work opportunity tax credit Amount of credit under 13 under subsection (kkk) subdivision fifty-four of 14 section two hundred ten-B 15 § 3. Section 606 of the tax law is amended by adding a new subsection 16 (kkk) to read as follows: 17 (kkk) Work opportunity tax credit. (1) Allowance of credit. A taxpayer 18 shall be allowed a credit, against the tax imposed by this article, of 19 two thousand four hundred dollars for each long term unemployed person 20 hired during a taxable year. Such tax credit shall be applicable only to 21 businesses employing fifty or fewer employees. For the purposes of this 22 subdivision, a "long term unemployed person" shall be an individual who 23 has been a resident of New York for three years immediately preceding 24 hiring and who, prior to being hired by the business eligible for the 25 credit established pursuant to this subsection, had been unemployed and 26 receiving public assistance for six consecutive months or more, and is 27 retained for full-time employment by such business for at least one 28 year. 29 (2) Application of credit. If the amount of the credit allowed under 30 this subsection for any taxable year shall exceed the taxpayer's tax for 31 such year, the excess shall be treated as an overpayment of tax to be 32 credited or refunded in accordance with the provisions of section six 33 hundred eighty-six of this article, provided, however, that no interest 34 shall be paid thereon. The total amount of credit to be provided state- 35 wide for this credit, the credit allowed under subdivision fifty-four of 36 section two hundred ten-B of this chapter and subdivision (ee) of 37 section fifteen hundred eleven of this chapter shall not exceed fifteen 38 million dollars in the aggregate in a taxable year. 39 (3) Credit recapture. For provisions requiring recapture of credit, 40 see section forty-four of this chapter. 41 § 4. Section 1511 of the tax law is amended by adding a new subdivi- 42 sion (ee) to read as follows: 43 (ee) Work opportunity tax credit. (1) Allowance of credit. A taxpayer 44 shall be allowed a credit, against the tax imposed by this article, of 45 two thousand four hundred dollars for each long term unemployed person 46 hired during a taxable year. Such tax credit shall be applicable only to 47 businesses employing fifty or fewer employees. For the purposes of this 48 subdivision, a "long term unemployed person" shall be an individual who 49 has been a resident of New York for three years immediately preceding 50 hiring and who, prior to being hired by the business eligible for the 51 credit established pursuant to this subdivision, had been unemployed and 52 receiving public assistance for six consecutive months or more, and is 53 retained for full-time employment by such business for at least oneA. 8471 3 1 year. The total amount of credit to be provided statewide shall not 2 exceed fifteen million dollars in a taxable year. 3 (2) Application of credit. The credit allowed under this subdivision 4 shall not reduce the tax due for such year to be less than the minimum 5 fixed by paragraph four of subdivision (a) of section fifteen hundred 6 two or section fifteen hundred two-a of this article, whichever is 7 applicable. However, if the amount of the credit allowed under this 8 subdivision for any taxable year reduces the taxpayer's tax to such 9 amount, any amount of credit thus not deductible will be treated as an 10 overpayment of tax to be credited or refunded in accordance with the 11 provisions of section one thousand eighty-six of this chapter. Provided, 12 however, the provisions of subsection (c) of one thousand eighty-eight 13 of this chapter notwithstanding, no interest shall be paid thereon. The 14 total amount of credit to be provided statewide for this credit, the 15 credit allowed under subdivision fifty-four of section two hundred ten-B 16 of this chapter and subdivision (kkk) of section six hundred six of this 17 chapter shall not exceed fifteen million dollars in the aggregate in a 18 taxable year. 19 (3) Credit recapture. For provisions requiring recapture of credit, 20 see section forty-four of this chapter. 21 § 5. This act shall take effect immediately and shall apply to taxable 22 years beginning on and after January 1, 2020 and shall apply to eligible 23 individuals hired on and after such effective date.
