Bill Text: NY S03395 | 2017-2018 | General Assembly | Introduced
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Bill Title: Enacts the empire state apprenticeship program; establishes the empire state apprenticeship tax credit program and grants the commissioner of the department of labor the power to administer such program; and creates the empire state apprenticeship tax credit (Part A); establishes the empire state apprenticeship grant program for small business and not-for-profit corporations (Part B).
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO LABOR [S03395 Detail]
Download: New_York-2017-S03395-Introduced.html
Bill Title: Enacts the empire state apprenticeship program; establishes the empire state apprenticeship tax credit program and grants the commissioner of the department of labor the power to administer such program; and creates the empire state apprenticeship tax credit (Part A); establishes the empire state apprenticeship grant program for small business and not-for-profit corporations (Part B).
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO LABOR [S03395 Detail]
Download: New_York-2017-S03395-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3395 2017-2018 Regular Sessions IN SENATE January 23, 2017 ___________ Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Labor AN ACT in relation to enacting the empire state apprenticeship program; to amend the labor law, in relation to establishing the empire state apprenticeship tax credit program and granting the commissioner of the department of labor the power to administer such program; and to amend the tax law, in relation to the empire state apprenticeship tax credit (Part A); to amend the labor law, in relation to establishing the empire state apprenticeship grant program for small business and not- for-profit corporations (Part B) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "empire 2 state apprenticeship program". 3 § 2. This act enacts into law components of legislation relating to 4 the empire state apprenticeship program. Each component is wholly 5 contained within a Part identified as Parts A through B. The effective 6 date for each particular provision contained within such Part is set 7 forth in the last section of such Part. Any provision in any section 8 contained within a Part, including the effective date of the Part, which 9 makes reference to a section "of this act", when used in connection with 10 that particular component, shall be deemed to mean and refer to the 11 corresponding section of the Part in which it is found. Section four of 12 this act sets forth the general effective date of this act. 13 PART A 14 Section 1. The labor law is amended by adding a new section 25-c to 15 read as follows: 16 § 25-c. Power to administer the empire state apprenticeship tax credit 17 program. (a) The commissioner is authorized to establish and administer 18 the empire state apprenticeship tax credit program to provide tax incen- 19 tives to qualified and certified employers for employing qualified 20 apprentices pursuant to an apprenticeship agreement registered with the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD00278-02-7S. 3395 2 1 department pursuant to paragraph (d) of subdivision one of section eight 2 hundred eleven of this chapter. The commissioner is authorized to 3 provide tax credits to be allocated up to ten million dollars of tax 4 credits annually, beginning taxable year two thousand seventeen and 5 ending before taxable year two thousand twenty-one. Any unused allo- 6 cation of the credit shall be made available in each of the subsequent 7 taxable years for all eligible years of the apprenticeship allowed under 8 subdivision (c) of this section. 9 (b) Definitions. (1) The term "apprenticeship agreement" means the 10 agreement as defined by section eight hundred sixteen of this chapter. 11 (2) The term "qualified employer" means an employer that has entered 12 into a registered apprenticeship agreement. For the purposes of this 13 section a "qualified employer" shall not include an employer that is a 14 contractor or subcontractor who is a partnership, firm, corporation, 15 limited liability company, association or other legal entity permitted 16 by law to do business within the state who engages in construction as 17 defined in this section and whose apprenticeship agreement includes 18 skills related to the construction industry. 19 (3) For purposes of this section, the term "construction" means 20 constructing, reconstructing, altering, maintaining, moving, rehabili- 21 tating, repairing, renovating, fabricating, servicing, or demolition of 22 any building, structure, or improvement, or component, or relating to 23 the excavation of or other development or improvement to land. 24 (4) The term "certified employer" means a qualified employer that has 25 been certified as eligible by the commissioner to participate in the 26 empire state apprenticeship tax credit program established in this 27 section. 28 (5) The term "qualified apprentice" means an individual employed in a 29 full time position for at least six months of a taxable year and who has 30 entered into an agreement with a qualified employer pursuant to section 31 eight hundred sixteen of this chapter. 32 (6) The term "mentor" means an individual who provides instruction, 33 guidance, and support to the apprentice on a regular basis throughout 34 their apprenticeship until the completion of their apprenticeship and 35 for the year after they complete their apprenticeship as the apprentice 36 seeks employment in the field or industry of their apprenticeship. The 37 goal of the mentor is to help train the apprentice in his or her trade 38 and to help the apprentice successfully complete the apprenticeship and 39 to secure and retain employment. 40 (c) (1) A certified employer shall be entitled to a tax credit against 41 income tax for each qualified apprentice for tax year equal to: (A) the 42 lesser of two thousand dollars or the total amount of wages paid for the 43 first year of the apprenticeship; (B) the lesser of three thousand 44 dollars or the total amount of wages paid for the second year of the 45 apprenticeship; and (C) the lesser of four thousand dollars or the total 46 amount of wages paid for each of the third, fourth, and fifth years of 47 the apprenticeship. 48 (2) A certified employer shall be entitled to an enhanced tax credit 49 if the employer can show that the apprentice for which the employer 50 received the tax credit pursuant to this subdivision is being trained in 51 his or her trade by a mentor as defined in this section. The enhanced 52 credit shall be an additional five hundred dollars for each year of the 53 apprenticeship in addition to the base tax credit described in paragraph 54 one of this subdivision. 55 (d) To participate in the program established under this section, a 56 qualified employer must submit an application (in a form prescribed byS. 3395 3 1 the commissioner) to the commissioner after January first, but no later 2 than November thirtieth of each year during taxable years the credit is 3 allocated. The qualified apprentices must start their employment on or 4 after January first but no later than December thirty-first, of the year 5 for which the qualified employer seeks the tax credit. 6 (e) As part of such application, each qualified employer must: 7 (1) Agree to allow the department of taxation and finance to share its 8 tax information with the department. However, any information shared as 9 a result of this agreement shall not be available for disclosure or 10 inspection under the state freedom of information law. 11 (2) Allow the department and its agents access to any and all books 12 and records the department may require to monitor compliance. 13 (f) The commissioner shall establish guidelines and criteria that 14 specify requirements for qualified employers to participate in the 15 program including criteria for certifying qualified apprentices. Any 16 regulations that the commissioner determines are necessary and are 17 consistent with the purpose of this article may be adopted on an emer- 18 gency basis notwithstanding any provisions to the contrary in the state 19 administrative procedure act. The commissioner may give preference to 20 qualified employers that are engaged in demand occupations or indus- 21 tries, or in regional growth sectors, including those identified by the 22 department, such as clean energy, health care, advanced manufacturing 23 and conservation. 24 (g)(i) If, after reviewing the application submitted by a qualified 25 employer, the commissioner determines that such qualified employer is 26 eligible to participate in the program established under this section, 27 the commissioner shall issue the qualified employer a certificate within 28 ninety days of application of eligibility that establishes the qualified 29 employer as a certified employer. The certificate of eligibility shall 30 specify the maximum amount of tax credit that the certified employer 31 will be allowed to claim. 32 (ii) For each subsequent application submitted by a qualified employer 33 who was certified by the commissioner in a prior tax year, the commis- 34 sioner may consider the following factors when determining if the quali- 35 fied employer should be re-certified: 36 (A) the length of the apprenticeship agreement the employer has 37 entered into; 38 (B) how many apprentices have graduated from the apprenticeship 39 program to which the qualified apprentice employed by the employer 40 belongs; 41 (C) how many apprentices in the first, second, third, fourth, or fifth 42 year of an apprenticeship program the qualified employer has hired; and 43 (D) any other factors the commissioner deems relevant. 44 (h) Certified employers that employ a qualified apprentice pursuant to 45 an apprenticeship agreement as defined by section eight hundred sixteen 46 of this article that requires the apprentice to be taught trade or craft 47 divisions by more than one employer shall be eligible for the credit 48 based on the total number of hours such apprentice is employed by each 49 such employer if the total number of hours employed exceeds the minimum 50 number of hours required to be a qualified apprenticeship under para- 51 graph five of subdivision (b) of this section, as determined pursuant to 52 regulations of the department. 53 (i) The commissioner shall annually publish a report within one 54 hundred eighty days of the close of the tax year. Such report must 55 contain the names and addresses of any certified employer issued a 56 certificate of eligibility under this section, and the maximum amount ofS. 3395 4 1 empire state apprenticeship tax credit allowed to the certified employer 2 as specified on such certificate of eligibility. The commissioner shall 3 include in such report recommendations for legislative or other action 4 to further the intent and purpose of the empire state apprenticeship tax 5 credit program. 6 (j) The commissioner shall promote, publish and disseminate informa- 7 tion concerning the empire state apprenticeship tax credit and other 8 available funding, particularly targeting industries and fields of busi- 9 ness not currently taking advantage of apprenticeships. 10 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 11 sion 49 to read as follows: 12 49. Empire state apprenticeship tax credit. (a) A taxpayer that has 13 been certified by the commissioner of labor as a certified employer 14 pursuant to section twenty-five-c of the labor law shall be allowed a 15 credit against the tax imposed by this article, for each qualified 16 apprentice, up to (i) two thousand five hundred dollars for the first 17 year of the apprenticeship; (ii) three thousand five hundred dollars for 18 the second year of the apprenticeship; (iii) four thousand five hundred 19 dollars for the third year of the apprenticeship; (iv) four thousand 20 five hundred dollars for the fourth year of the apprenticeship; and (v) 21 four thousand five hundred dollars for the fifth year of the apprentice- 22 ship. For purposes of this subdivision, the term "qualified apprentice" 23 shall have the same meaning as set forth in subdivision (b) of section 24 twenty-five-c of the labor law. The portion of the credit described in 25 subparagraphs (i) through (v) of this paragraph shall be allowed for the 26 taxable years in which the wages are paid to the qualified apprentice. 27 (b) The credit allowed under this subdivision for any taxable year may 28 not reduce the tax due for that year to less than the amount prescribed 29 in paragraph (d) of subdivision one of section two hundred ten of this 30 article. However, if the amount of the credit allowed under this subdi- 31 vision for any taxable year reduces the tax to that amount or if the 32 taxpayer otherwise pays tax based on the fixed dollar minimum amount, 33 any amount of credit not deductible in that taxable year will be treated 34 as an overpayment of tax to be credited or refunded in accordance with 35 the provisions of section one thousand eighty-six of this chapter. 36 Provided, however, no interest will be paid thereon. 37 (c) The taxpayer shall be required to attach to its tax return its 38 certificate of eligibility issued by the commissioner of labor pursuant 39 to section twenty-five-c of the labor law. In no event shall the taxpay- 40 er be allowed a credit greater than the amount of the credit listed on 41 the certificate of eligibility. Notwithstanding any provision of this 42 chapter to the contrary, the commissioner and the commissioner's desig- 43 nees shall release the names and addresses of any taxpayer claiming this 44 credit and the amount of the credit earned by the taxpayer. Provided, 45 however, if a taxpayer claims this credit because it is a member of a 46 limited liability company or a partner in a partnership, only the amount 47 of credit earned by the entity and not the amount of credit claimed by 48 the taxpayer may be released. 49 § 3. Section 606 of the tax law is amended by adding a new subsection 50 (vvv) to read as follows: 51 (vvv) Empire state apprenticeship tax credit. (1)(A) A taxpayer that 52 has been certified by the commissioner of labor as a certified employer 53 pursuant to section twenty-five-c of the labor law shall be allowed a 54 credit against the tax imposed by this article, for each qualified 55 apprentice, up to (i) two thousand five hundred dollars for the first 56 year of the apprenticeship; (ii) three thousand five hundred dollars forS. 3395 5 1 the second year of the apprenticeship; (iii) four thousand five hundred 2 dollars for the third year of the apprenticeship; (iv) four thousand 3 five hundred dollars for the fourth year of the apprenticeship; and (v) 4 four thousand five hundred dollars for the fifth year of the apprentice- 5 ship. 6 (B) A taxpayer that is a partner in a partnership, member of a limited 7 liability company or shareholder in an S corporation that has been 8 certified by the commissioner of labor as a certified employer pursuant 9 to section twenty-five-c of the labor law shall be allowed its pro rata 10 share of the credit earned by the partnership, limited liability company 11 or S corporation. 12 (C) For purposes of this subsection, the term "qualified apprentice" 13 shall have the same meaning as set forth in subdivision (b) of section 14 twenty-five-c of the labor law. The portion of the credit described in 15 clause (i) through (v) of subparagraph (A) of this paragraph shall be 16 allowed for the taxable years in which the wages are paid to the quali- 17 fied apprentice. 18 (2) If the amount of the credit allowed under this subsection exceeds 19 the taxpayer's tax for the taxable year, any amount of credit not deduc- 20 tible in that taxable year will be treated as an overpayment of tax to 21 be credited or refunded in accordance with the provisions of section six 22 hundred eighty-six of this article. Provided, however, no interest will 23 be paid thereon. 24 (3) The taxpayer shall be required to attach to its tax return its 25 certificate of eligibility issued by the commissioner of labor pursuant 26 to section twenty-five-c of the labor law. In no event shall the taxpay- 27 er be allowed a credit greater than the amount of the credit listed on 28 the certificate of eligibility. Notwithstanding any provision of this 29 chapter to the contrary, the commissioner and the commissioner's desig- 30 nees shall release the names and addresses of any taxpayer claiming this 31 credit and the amount of the credit earned by the taxpayer. Provided, 32 however, if a taxpayer claims this credit because it is a member of a 33 limited liability company, a partner in a partnership, or a shareholder 34 in a subchapter S corporation, only the amount of credit earned by the 35 entity and not the amount of credit claimed by the taxpayer may be 36 released. 37 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 38 of the tax law is amended by adding a new clause (xliii) to read as 39 follows: 40 (xliii) Empire state apprenticeship Amount of credit under 41 tax credit under subsection subdivision forty-nine of 42 (vvv) section two hundred ten-B 43 § 5. This act shall take effect immediately and shall apply to taxable 44 years commencing on or after January 1, 2017. 45 PART B 46 Section 1. The labor law is amended by adding a new article 23-D to 47 read as follows: 48 ARTICLE 23-D 49 EMPIRE STATE APPRENTICESHIP GRANT PROGRAM FOR SMALL 50 BUSINESS AND NOT-FOR-PROFIT CORPORATIONS 51 Section 833. Empire state apprenticeship grant program for small busi- 52 ness and not-for-profit corporations. 53 § 833. Empire state apprenticeship grant program for small business 54 and not-for-profit corporations. 1. The department shall establish aS. 3395 6 1 grant program designed to encourage the adoption of apprenticeships 2 administered by small businesses and not-for-profit corporations. The 3 department shall provide grants within available appropriations, on a 4 competitive basis, in response to a request for proposal from eligible 5 entities. The program shall provide one to one state matching funds to 6 eligible entities not to exceed fifty thousand dollars annually. An 7 eligible entity shall include a business employing and/or training an 8 apprentice pursuant to an apprenticeship agreement registered with the 9 department pursuant to paragraph (d) of subdivision one of section eight 10 hundred eleven of this chapter which is resident in this state, inde- 11 pendently owned and operated, and employs twenty-five or less persons, 12 or a not-for-profit organization employing and/or training an apprentice 13 pursuant to an apprenticeship agreement as defined by section eight 14 hundred sixteen of this chapter and registered with the department. An 15 eligible entity shall not include an employer who is a contractor or 16 subcontractor who is a partnership, firm, corporation, limited liability 17 company, association or other legal entity permitted by law to do busi- 18 ness within the state who engages in construction. For purposes of this 19 section, the term "construction" means constructing, reconstructing, 20 altering, maintaining, moving, rehabilitating, repairing, renovating, 21 fabricating, servicing, or demolition of any building, structure, or 22 improvement, or component, or relating to the excavation of or other 23 development or improvement to land. The department may use grant funds 24 only for costs related to apprenticeship programs for capital and/or 25 operating expenses, and to support dedicated mentors for apprentices. 26 The commissioner is directed to establish guidelines and an application 27 process. Total statewide expenditures for the grant program shall not 28 exceed two million five hundred thousand dollars per year. 29 2. The state apprenticeship and training council shall review requests 30 for proposals and will recommend project applications deemed to meet the 31 intent of the program to the department. 32 3. The department shall report on or before October first, two thou- 33 sand eighteen and annually thereafter to the governor, temporary presi- 34 dent of the senate, speaker of the assembly, and chairs of the assembly 35 committee on labor and the legislative commission on skills development 36 and career education on activities and progress of the grant. Such 37 report shall contain the names, addresses and descriptions of any eligi- 38 ble entity issued a grant under this section, the amount of the grant 39 allowed to the employer, for what purposes, the number of apprentices 40 and their trade or trades, and whether each apprenticeship is a new job 41 created after being issued a grant pursuant to this program. 42 § 2. This act shall take effect immediately. 43 § 3. Severability clause. If any clause, sentence, paragraph, subdivi- 44 sion, section or part of this act shall be adjudged by any court of 45 competent jurisdiction to be invalid, such judgment shall not affect, 46 impair, or invalidate the remainder thereof, but shall be confined in 47 its operation to the clause, sentence, paragraph, subdivision, section 48 or part thereof directly involved in the controversy in which such judg- 49 ment shall have been rendered. It is hereby declared to be the intent of 50 the legislature that this act would have been enacted even if such 51 invalid provisions had not been included herein. 52 § 4. This act shall take effect immediately provided, however, that 53 the applicable effective date of Parts A through B of this act shall be 54 as specifically set forth in the last section of such Parts.
