Bill Text: NY S00432 | 2023-2024 | General Assembly | Introduced
Bill Title: Establishes a first permanent payroll employee tax credit which allows a business to receive a tax credit for the three years following the employment of such business' first permanent payroll employee where such credit equals a portion of the amount it costs to employ such permanent payroll employee.
Spectrum: Partisan Bill (Republican 6-0)
Status: (Introduced) 2024-01-03 - REFERRED TO BUDGET AND REVENUE [S00432 Detail]
Download: New_York-2023-S00432-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 432 2023-2024 Regular Sessions IN SENATE (Prefiled) January 4, 2023 ___________ Introduced by Sens. BORRELLO, GALLIVAN, O'MARA -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law, in relation to establishing a first perma- nent payroll employee 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 59 to read as follows: 3 59. First permanent payroll employee credit. (a) General. A taxpayer 4 shall be allowed a credit, to be computed as provided in this subdivi- 5 sion, against the tax imposed by this article for the first full-time, 6 permanent employee such taxpayer employs, provided that such full-time, 7 permanent employee is accounted for on such taxpayer's employer payroll 8 records. Such credit shall be available for each of the three years 9 succeeding the date a taxpayer employs their first full-time, permanent 10 employee. 11 (b) Amount of credit. A credit authorized by this subdivision shall be 12 equal to: 13 (1) in the first year, twenty-five percent of the total cost to employ 14 a full-time, permanent employee, when such employee is accounted for on 15 an employer's payroll records and is the first full-time, permanent 16 employee such taxpayer has hired; 17 (2) in the second year, twenty percent of the total cost to employ a 18 full-time, permanent employee, when such employee is accounted for on an 19 employer's payroll records and is the first full-time, permanent employ- 20 ee such taxpayer has hired; and 21 (3) in the third year, ten percent of the total cost to employ a full- 22 time, permanent employee, when such employee is accounted for on an EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01984-01-3S. 432 2 1 employer's payroll records and is the first full-time, permanent employ- 2 ee such taxpayer has hired. 3 (c) Carryovers. The credit allowed under this subdivision may be 4 claimed and if not fully used in the initial year for which the credit 5 is claimed may be carried over, in order, to each of the two succeeding 6 taxable years. The credit authorized by this subdivision may not be used 7 to reduce the tax liability of the credit claimant below zero. 8 (d) Definitions. For purposes of this subdivision, the following terms 9 shall have the following meanings: 10 (1) "Total cost to employ" shall mean base salary, New York state 11 payroll taxes and the value of employment benefits received. 12 (2) "New York state payroll taxes" shall mean all state taxes paid by 13 an employer from such employer's own funds and directly related to 14 employing an employee. 15 (e) Aggregate amount. The aggregate amount of tax credits allowed 16 pursuant to the authority of this subdivision and subsection (ooo) of 17 section six hundred six of this chapter shall be fifteen million dollars 18 each year. Such aggregate amounts of credits shall be allocated by the 19 commissioner. If the total amount of allocated credits applied for in 20 any particular year exceeds the aggregate amount of tax credits allowed 21 for such year under this section, such excess shall be treated as having 22 been applied for on the first day of the subsequent year. 23 (f) Claim of credit. (1) Taxpayers shall be eligible to claim such 24 credit beginning in the first taxable year after such taxpayer has 25 employed their first full-time, permanent employee, as verified on such 26 taxpayer's payroll records. 27 (2) A taxpayer shall not be allowed to claim this credit to the extent 28 the basis of the calculation of this credit has been claimed for another 29 tax credit under this chapter. 30 § 2. Section 606 of the tax law is amended by adding a new subsection 31 (ooo) to read as follows: 32 (ooo) First permanent payroll employee credit. (1) General. A taxpayer 33 shall be allowed a credit, to be computed as provided in this 34 subsection, against the tax imposed by this article for the first full- 35 time, permanent employee such taxpayer employs, provided that such full- 36 time, permanent employee is accounted for on such taxpayer's employer 37 payroll records. Such credit shall be available for each of the three 38 years succeeding the date a taxpayer employs their first full-time, 39 permanent employee. 40 (2) Amount of credit. A credit authorized by this subsection shall be 41 equal to: 42 (A) in the first year, twenty-five percent of the total cost to employ 43 a full-time, permanent employee, when such employee is accounted for on 44 an employer's payroll records and is the first full-time, permanent 45 employee such taxpayer has hired; 46 (B) in the second year, twenty percent of the total cost to employ a 47 full-time, permanent employee, when such employee is accounted for on an 48 employer's payroll records and is the first full-time, permanent employ- 49 ee such taxpayer has hired; and 50 (C) in the third year, ten percent of the total cost to employ a full- 51 time, permanent employee, when such employee is accounted for on an 52 employer's payroll records and is the first full-time, permanent employ- 53 ee such taxpayer has hired. 54 (3) Carryovers. The credit allowed under this subsection may be 55 claimed and if not fully used in the initial year for which the credit 56 is claimed may be carried over, in order, to each of the two succeedingS. 432 3 1 taxable years. The credit authorized by this subsection may not be used 2 to reduce the tax liability of the credit claimant below zero. 3 (4) Definitions. For purposes of this subsection, the following terms 4 shall have the following meanings: 5 (A) "Total cost to employ" shall mean base salary, New York state 6 payroll taxes and the value of employment benefits received. 7 (B) "New York state payroll taxes" shall mean all state taxes paid by 8 an employer from such employer's own funds and directly related to 9 employing an employee. 10 (5) Aggregate amount. The aggregate amount of tax credits allowed 11 pursuant to the authority of this subsection and subdivision fifty-nine 12 of section two hundred ten-B of this chapter shall be fifteen million 13 dollars each year. Such aggregate amounts of credits shall be allocated 14 by the commissioner. If the total amount of allocated credits applied 15 for in any particular year exceeds the aggregate amount of tax credits 16 allowed for such year under this section, such excess shall be treated 17 as having been applied for on the first day of the subsequent year. 18 (6) Claim of credit. (A) Taxpayers shall be eligible to claim such 19 credit beginning in the first taxable year after such taxpayer has 20 employed their first full-time, permanent employee, as verified on such 21 taxpayer's payroll records. 22 (B) A taxpayer shall not be allowed to claim this credit to the extent 23 the basis of the calculation of this credit has been claimed for another 24 tax credit under this chapter. 25 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 26 of the tax law is amended by adding a new clause (l) to read as follows: 27 (l) First permanent payroll Amount of credit under subdivision 28 employee credit under subsection fifty-nine of section two hundred 29 (ooo) ten-B 30 § 4. This act shall take effect immediately and shall apply to taxable 31 years commencing on and after January 1, 2024.
