Bill Text: NY S03513 | 2017-2018 | General Assembly | Amended
Bill Title: Establishes a hire-now tax credit; provides for new job creation; also provides for additional credit where the person hired was receiving unemployment.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2018-04-13 - PRINT NUMBER 3513A [S03513 Detail]
Download: New_York-2017-S03513-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 3513--A 2017-2018 Regular Sessions IN SENATE January 23, 2017 ___________ Introduced by Sens. RANZENHOFER, DeFRANCISCO, FUNKE, GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee AN ACT to amend the tax law, in relation to establishing a Hire-Now tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 44 to read 2 as follows: 3 § 44. Hire-Now tax credit. (a) Allowance of credit. A taxpayer, which 4 is subject to tax under article nine-A or twenty-two of this chapter and 5 which creates a new job, shall be allowed a credit against such tax. The 6 amount of the credit allowed under this section shall be equal to the 7 product of 6.85 percent and the gross wages paid for each new employee. 8 The credit shall not be more than five thousand dollars for any new 9 employee for one full year of employment; if a new employee has been 10 hired for less than a full tax year this amount shall be prorated and 11 apportioned to each tax year but shall in no way decrease the full three 12 consecutive years of credit eligibility. The taxpayer may claim this 13 credit for each new employee for a period of three consecutive years of 14 employment. The taxpayer may offset quarterly estimated tax returns 15 with the amount of this credit earned in any previous quarter. 16 (b) Unemployment enhancement. For calendar years two thousand twenty 17 and two thousand twenty-one if a new employee was receiving unemployment 18 insurance benefits at the time of hire, an additional three thousand 19 dollar credit will be allowed for the first full year of employment. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07951-02-8S. 3513--A 2 1 (c) Definitions. As used in this section, the following terms shall 2 have the following meanings: 3 (1) "New employee" shall mean any full time employee that is hired by 4 the taxpayer after July first, two thousand nineteen and before April 5 first, two thousand twenty, that causes the total number of employees to 6 increase above base employment or credit employment, whichever is high- 7 er. 8 (2) "Base year" shall mean calendar year two thousand eighteen. 9 (3) "Base employment" shall mean the average number of full time 10 employees or full time equivalent employees during the base year. For a 11 new business, base employment shall begin at zero. 12 (4) "Credit employment" shall mean base employment plus the number of 13 new employees for which a credit is earned for the prior tax years. 14 (d) Replacement employees. If one or more new employees for which a 15 credit was earned leaves the payroll during the same taxable year that 16 an individual is hired by the taxpayer to work in this state, causing 17 the taxpayer's total employment to equal an amount that is above base 18 employment but at or below the computed credit employment for the taxa- 19 ble year, the credit eligibility period for the individual hired during 20 the taxable year shall be three years minus the amount of time (rounded 21 to the next full month) that the taxpayer received the credit for the 22 departing employee. 23 (e) No credit shall be allowed under this section to a taxpayer for 24 any new employee if the taxpayer claims any other credit under this 25 article for such new employee where the basis of such other credit is an 26 increase in employment. 27 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 28 sion 53 to read as follows: 29 53. Hire-Now tax credit. (a) Allowance of credit. A taxpayer will be 30 allowed a credit, to be computed as provided in section forty-four of 31 this chapter, against the tax imposed by this article. 32 (b) Application of credit. The credit allowed under this subdivision 33 for any taxable year may not reduce the tax due for such year to less 34 than the higher of the amounts prescribed in paragraph (d) of subdivi- 35 sion one of section two hundred ten of this article. However, if the 36 amount of credit allowed under this subdivision for any taxable year 37 reduces the tax to such amount, any amount of credit thus not deductible 38 in such taxable year will be treated as an overpayment of tax to be 39 credited or refunded in accordance with the provisions of section one 40 thousand eighty-six of this chapter. Provided, however, the provisions 41 of subsection (c) of section one thousand eighty-eight of this chapter 42 notwithstanding, no interest will be paid thereon. 43 § 3. Section 606 of the tax law is amended by adding a new subsection 44 (ccc) to read as follows: 45 (ccc) Hire-Now tax credit. (1) A taxpayer will be allowed a credit, to 46 the extent allowed under section forty-four of this chapter, against the 47 tax imposed by this article. 48 (2) Application of credit. If the amount of the credit allowed under 49 this subsection for any taxable year exceeds the taxpayer's tax for such 50 year, the excess will be treated as an overpayment of tax to be credited 51 or refunded in accordance with the provisions of section six hundred 52 eighty-six of this article, provided, however, that no interest will be 53 paid thereon. 54 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 55 of the tax law is amended by adding a new clause (xliv) to read as 56 follows:S. 3513--A 3 1 (xliv) Hire-Now tax credit Amount of credit under 2 under subsection (ccc) subdivision fifty-three of 3 section two hundred ten-B 4 § 5. This act shall take effect immediately.
