Bill Text: NY S04857 | 2019-2020 | General Assembly | Introduced


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

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced) 2019-03-27 - REFERRED TO BUDGET AND REVENUE [S04857 Detail]

Download: New_York-2019-S04857-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4857
                               2019-2020 Regular Sessions
                    IN SENATE
                                     March 27, 2019
                                       ___________
        Introduced  by Sens. RANZENHOFER, FUNKE -- read twice and ordered print-
          ed, 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 53 to read as follows:
     3    53.  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 employee.
     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
    18    (v) such benefits are chargeable to the experience rating  account  of
    19  an employer under this article; or
    20    (vi) has successfully completed a training program pursuant to section
    21  five hundred ninety-nine of the labor law; and
    22    (vii)  performs  services  in  accordance with subdivision one, two or
    23  four of section five hundred eleven of the labor law;
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10280-02-9

        S. 4857                             2
     1    (viii) remains employed by  the  employer  for  at  least  twenty-four
     2  consecutive months; and
     3    (ix)  during  the  entire  period  such employment shall consist of at
     4  least thirty hours per week.
     5    (d) For the purposes of this section the following  terms  shall  have
     6  the following meanings:
     7    (i)  "new  employee" shall mean any full time employee that causes the
     8  total number of employees to increase above base  employment  or  credit
     9  employment, whichever is higher.
    10    (ii) "base year" shall mean calendar year two thousand nineteen.
    11    (iii)  "base  employment"  shall  mean the average number of full-time
    12  employees or full-time equivalent employees during the base year. For  a
    13  new business, base employment shall begin at zero.
    14    (iv) "credit employment" shall mean base employment plus the number of
    15  new employees for which a credit is earned.
    16    (e)  An  employer  who  has  one or more creditable employees shall be
    17  eligible to apply for and receive the credit established in this  subdi-
    18  vision.  Eligibility  for the credit shall be established as of the time
    19  the creditable employee  completes  twenty-four  consecutive  months  of
    20  employment,  and  the  credit  shall  be claimed for the taxable year in
    21  which the twenty-fourth month of such employment is completed.
    22    (f) In no event shall the total amount of any tax  credit  under  this
    23  subdivision  for a taxable year exceed the taxpayer's income tax liabil-
    24  ity. Any unused tax credit shall be allowed to  be  carried  forward  to
    25  apply  to  the  taxpayer's succeeding five years' tax liability. No such
    26  tax credit shall be  allowed  the  taxpayer  against  prior  years'  tax
    27  liability.
    28    (g) The credit shall be claimed and granted in such manner as shall be
    29  specified by rules adopted by the commissioner.
    30    §  2. Section 606 of the tax law is amended by adding a new subsection
    31  (jjj) to read as follows:
    32    (jjj) Jobs development incentive tax credit. (1) A taxpayer  shall  be
    33  allowed  a  credit,  to be computed as hereinafter provided, against the
    34  tax imposed by this article in the amount prescribed by this  subsection
    35  where such taxpayer employs one or more creditable employee.
    36    (2)  The  amount  of  the  credit  shall  be two thousand four hundred
    37  dollars for each creditable employee.
    38    (3) For the purposes of this subsection, "creditable  employee"  shall
    39  mean a new employee of an employer who:
    40    (A)  is  employed  by  the employer for the first time on or after the
    41  effective date of this subsection;
    42    (B) has filed a claim for unemployment compensation in this state;
    43    (C) has received unemployment benefits in this state for at least  two
    44  months;
    45    (D)  is  currently  receiving unemployment compensation benefits as of
    46  the date of employment; and
    47    (E) such benefits are chargeable to the experience rating  account  of
    48  an employer under this article; or
    49    (F)  has successfully completed a training program pursuant to section
    50  five hundred ninety-nine of the labor law; and
    51    (G) performs services in accordance with subdivision one, two or  four
    52  of section five hundred eleven of the labor law;
    53    (H)  remains employed by the employer for at least twenty-four consec-
    54  utive months; and
    55    (I) during the entire period such employment shall consist of at least
    56  thirty hours per week.

        S. 4857                             3
     1    (4) For the purposes of this subsection the following terms shall have
     2  the following meanings:
     3    (A)  "new  employee" shall mean any full time employee that causes the
     4  total number of employees to increase above base  employment  or  credit
     5  employment, whichever is higher.
     6    (B) "base year" shall mean calendar year two thousand nineteen.
     7    (C)  "base  employment"  shall  mean  the  average number of full time
     8  employees or full time equivalent employees during the base year. For  a
     9  new business, base employment shall begin at zero.
    10    (D)  "credit employment" shall mean base employment plus the number of
    11  new employees for which a credit is earned.
    12    (5) An employer who has one or  more  creditable  employees  shall  be
    13  eligible  to  apply  for  and  receive  the  credit  established in this
    14  subsection. Eligibility for the credit shall be established  as  of  the
    15  time the creditable employee completes twenty-four consecutive months of
    16  employment,  and  the  credit  shall  be claimed for the taxable year in
    17  which the twenty-fourth month of such employment is completed.
    18    (6) In no event shall the total amount of any tax  credit  under  this
    19  subsection  for  a taxable year exceed the taxpayer's income tax liabil-
    20  ity. Any unused tax credit shall be allowed to  be  carried  forward  to
    21  apply  to  the  taxpayer's succeeding five years' tax liability. No such
    22  tax credit shall be  allowed  the  taxpayer  against  prior  years'  tax
    23  liability.
    24    (7) The credit shall be claimed and granted in such manner as shall be
    25  specified by rules adopted by the commissioner.
    26    §  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    27  of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
    28  follows:
    29  (xliv) Jobs development incentive    Amount of credit under
    30  tax credit under subsection (jjj)    subdivision fifty-three of section
    31                                       two hundred ten-B of this chapter
    32    § 4. This act shall take effect immediately.
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