Bill Text: NY S02119 | 2019-2020 | General Assembly | Amended
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 2-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO BUDGET AND REVENUE [S02119 Detail]
Download: New_York-2019-S02119-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 2119--B 2019-2020 Regular Sessions IN SENATE January 22, 2019 ___________ Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported favorably from said commit- tee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05841-03-9S. 2119--B 2 1 based on the fixed dollar minimum amount, any amount of credit thus not 2 deductible in such taxable year shall be treated as an overpayment of 3 tax to be credited or refunded in accordance with the provisions of 4 section one thousand eighty-six of this chapter. Provided, however, the 5 provisions of subsection (c) of section one thousand eighty-eight of 6 this chapter notwithstanding, no interest shall be paid thereon. The 7 total amount of credit to be provided statewide for this credit, the 8 credit allowed under subsection (kkk) of section six hundred six of this 9 chapter and subdivision (ee) of section fifteen hundred eleven of this 10 chapter shall not exceed fifteen million dollars in the aggregate in a 11 taxable year. 12 (c) Credit recapture. For provisions requiring recapture of credit, 13 see section forty-four of this chapter. 14 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 15 of the tax law is amended by adding a new clause (xlv) to read as 16 follows: 17 (xlv) Work opportunity tax credit Amount of credit under 18 under subsection (kkk) subdivision fifty-four of 19 section two hundred ten-B 20 § 3. Section 606 of the tax law is amended by adding a new subsection 21 (kkk) to read as follows: 22 (kkk) Work opportunity tax credit. (1) Allowance of credit. A taxpayer 23 shall be allowed a credit, against the tax imposed by this article, of 24 two thousand four hundred dollars for each long term unemployed person 25 hired during a taxable year. Such tax credit shall be applicable only to 26 businesses employing fifty or fewer employees. For the purposes of this 27 subdivision, a "long term unemployed person" shall be an individual who 28 has been a resident of New York for three years immediately preceding 29 hiring and who, prior to being hired by the business eligible for the 30 credit established pursuant to this subsection, had been unemployed and 31 receiving public assistance for six consecutive months or more, and is 32 retained for full-time employment by such business for at least one 33 year. 34 (2) Application of credit. If the amount of the credit allowed under 35 this subsection for any taxable year shall exceed the taxpayer's tax for 36 such year, the excess shall be treated as an overpayment of tax to be 37 credited or refunded in accordance with the provisions of section six 38 hundred eighty-six of this article, provided, however, that no interest 39 shall be paid thereon. The total amount of credit to be provided state- 40 wide for this credit, the credit allowed under subdivision fifty-four of 41 section two hundred ten-B of this chapter and subdivision (ee) of 42 section fifteen hundred eleven of this chapter shall not exceed fifteen 43 million dollars in the aggregate in a taxable year. 44 (3) Credit recapture. For provisions requiring recapture of credit, 45 see section forty-four of this chapter. 46 § 4. Section 1511 of the tax law is amended by adding a new subdivi- 47 sion (ee) to read as follows: 48 (ee) Work opportunity tax credit. (1) Allowance of credit. A taxpayer 49 shall be allowed a credit, against the tax imposed by this article, of 50 two thousand four hundred dollars for each long term unemployed person 51 hired during a taxable year. Such tax credit shall be applicable only to 52 businesses employing fifty or fewer employees. For the purposes of this 53 subdivision, a "long term unemployed person" shall be an individual who 54 has been a resident of New York for three years immediately precedingS. 2119--B 3 1 hiring and who, prior to being hired by the business eligible for the 2 credit established pursuant to this subdivision, had been unemployed and 3 receiving public assistance for six consecutive months or more, and is 4 retained for full-time employment by such business for at least one 5 year. The total amount of credit to be provided statewide shall not 6 exceed fifteen million dollars in a taxable year. 7 (2) Application of credit. The credit allowed under this subdivision 8 shall not reduce the tax due for such year to be less than the minimum 9 fixed by paragraph four of subdivision (a) of section fifteen hundred 10 two or section fifteen hundred two-a of this article, whichever is 11 applicable. However, if the amount of the credit allowed under this 12 subdivision for any taxable year reduces the taxpayer's tax to such 13 amount, any amount of credit thus not deductible will be treated as an 14 overpayment of tax to be credited or refunded in accordance with the 15 provisions of section one thousand eighty-six of this chapter. Provided, 16 however, the provisions of subsection (c) of one thousand eighty-eight 17 of this chapter notwithstanding, no interest shall be paid thereon. The 18 total amount of credit to be provided statewide for this credit, the 19 credit allowed under subdivision fifty-four of section two hundred ten-B 20 of this chapter and subdivision (kkk) of section six hundred six of this 21 chapter shall not exceed fifteen million dollars in the aggregate in a 22 taxable year. 23 (3) Credit recapture. For provisions requiring recapture of credit, 24 see section forty-four of this chapter. 25 § 5. This act shall take effect immediately and shall apply to taxable 26 years beginning on and after January 1, 2020 and shall apply to eligible 27 individuals hired on and after such effective date.