Bill Text: NY S04841 | 2023-2024 | General Assembly | Introduced

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Bill Title: Creates a jobs development incentive income tax credit available to employers who employ individuals previously receiving unemployment.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2024-01-03 - REFERRED TO BUDGET AND REVENUE [S04841 Detail]

Download: New_York-2023-S04841-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4841

                               2023-2024 Regular Sessions

                    IN SENATE

                                    February 15, 2023
                                       ___________

        Introduced  by  Sen.  ASHBY  -- 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 a jobs development incentive
          income tax credit available to employers who employ individuals previ-
          ously receiving unemployment benefits

          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. Jobs development incentive tax credit. (a)  A  taxpayer  shall  be
     4  allowed  a  credit,  to be computed as hereinafter provided, against the
     5  tax imposed by this article in the amount prescribed by this subdivision
     6  where such taxpayer employs one or more creditable employees.
     7    (b) The amount of the  credit  shall  be  two  thousand  four  hundred
     8  dollars for each creditable employee.
     9    (c)  For the purposes of this subdivision, "creditable employee" shall
    10  mean a new employee of an employer who:
    11    (i) is employed by the employer for the first time  on  or  after  the
    12  effective date of this subdivision;
    13    (ii) has filed a claim for unemployment compensation in this state;
    14    (iii)  has  received  unemployment benefits in this state for at least
    15  two months;
    16    (iv) is currently receiving unemployment compensation benefits  as  of
    17  the  date  of employment and such benefits are chargeable to the experi-
    18  ence rating account of an employer under this article; or  has  success-
    19  fully  completed  a  training  program  pursuant to section five hundred
    20  ninety-nine of the labor law;
    21    (v) performs services in accordance with subdivision one, two or  four
    22  of section five hundred eleven of the labor law;
    23    (vi) remains employed by the employer for at least twenty-four consec-
    24  utive months; and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09251-01-3
        S. 4841                             2

     1    (vii)  during  the  entire  period such employment shall consist of at
     2  least thirty hours per week.
     3    (d)  For  the  purposes  of this subdivision the following terms shall
     4  have the following meanings:
     5    (i) "new employee" shall mean any full time employee that  causes  the
     6  total  number  of  employees to increase above base employment or credit
     7  employment, whichever is higher.
     8    (ii) "base year" shall mean calendar year two thousand twenty-three.
     9    (iii) "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    (iv) "credit employment" shall mean base employment plus the number of
    13  new employees for which a credit is earned.
    14    (e) An employer who has one or  more  creditable  employees  shall  be
    15  eligible  to apply for and receive the credit established in this subdi-
    16  vision. Eligibility for the credit shall be established as of  the  time
    17  the  creditable  employee  completes  twenty-four  consecutive months of
    18  employment, and the credit shall be claimed  for  the  taxable  year  in
    19  which the twenty-fourth month of such employment is completed.
    20    (f)  In  no  event shall the total amount of any tax credit under this
    21  subdivision for a taxable year exceed the taxpayer's income tax  liabil-
    22  ity.  Any  unused  tax  credit shall be allowed to be carried forward to
    23  apply to the taxpayer's succeeding five years' tax  liability.  No  such
    24  tax  credit  shall  be  allowed  the  taxpayer  against prior years' tax
    25  liability.
    26    (g) The credit shall be claimed and granted in such manner as shall be
    27  specified by rules adopted by the commissioner.
    28    § 2. Section 606 of the tax law is amended by adding a new  subsection
    29  (ooo) to read as follows:
    30    (ooo)  Jobs  development incentive tax credit. (1) A taxpayer shall be
    31  allowed a credit, to be computed as hereinafter  provided,  against  the
    32  tax  imposed by this article in the amount prescribed by this subsection
    33  where such taxpayer employs one or more creditable employees.
    34    (2) The amount of the  credit  shall  be  two  thousand  four  hundred
    35  dollars for each creditable employee.
    36    (3)  For  the purposes of this subsection, "creditable employee" shall
    37  mean a new employee of an employer who:
    38    (A) is employed by the employer for the first time  on  or  after  the
    39  effective date of this subsection;
    40    (B) has filed a claim for unemployment compensation in this state;
    41    (C)  has received unemployment benefits in this state for at least two
    42  months;
    43    (D) is currently receiving unemployment compensation  benefits  as  of
    44  the  date  of employment and such benefits are chargeable to the experi-
    45  ence rating account of an employer under this article; or  has  success-
    46  fully  completed  a  training  program  pursuant to section five hundred
    47  ninety-nine of the labor law;
    48    (E) performs services in accordance with subdivision one, two or  four
    49  of section five hundred eleven of the labor law;
    50    (F)  remains employed by the employer for at least twenty-four consec-
    51  utive months; and
    52    (G) during the entire period such employment shall consist of at least
    53  thirty hours per week.
    54    (4) For the purposes of this subsection the following terms shall have
    55  the following meanings:
        S. 4841                             3

     1    (A) "new employee" shall mean any full time employee that  causes  the
     2  total  number  of  employees to increase above base employment or credit
     3  employment, whichever is higher.
     4    (B) "base year" shall mean calendar year two thousand twenty-three.
     5    (C)  "base  employment"  shall  mean  the  average number of full time
     6  employees or full time equivalent employees during the base year. For  a
     7  new business, base employment shall begin at zero.
     8    (D)  "credit employment" shall mean base employment plus the number of
     9  new employees for which a credit is earned.
    10    (5) An employer who has one or  more  creditable  employees  shall  be
    11  eligible  to  apply  for  and  receive  the  credit  established in this
    12  subsection. Eligibility for the credit shall be established  as  of  the
    13  time the creditable employee completes twenty-four consecutive months of
    14  employment,  and  the  credit  shall  be claimed for the taxable year in
    15  which the twenty-fourth month of such employment is completed.
    16    (6) In no event shall the total amount of any tax  credit  under  this
    17  subsection  for  a taxable year exceed the taxpayer's income tax liabil-
    18  ity. Any unused tax credit shall be allowed to  be  carried  forward  to
    19  apply  to  the  taxpayer's succeeding five years' tax liability. No such
    20  tax credit shall be  allowed  the  taxpayer  against  prior  years'  tax
    21  liability.
    22    (7) The credit shall be claimed and granted in such manner as shall be
    23  specified by rules adopted by the commissioner.
    24    §  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    25  of the tax law is amended by adding a new clause (l) to read as follows:
    26  (l) Jobs development incentive       Amount of credit under
    27  tax credit under subsection (ooo)    subdivision fifty-nine of section
    28                                       two hundred ten-B of this chapter
    29    § 4. This act shall take effect immediately.