Bill Text: NY S05068 | 2019-2020 | General Assembly | Introduced

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 3-0)

Status: (Introduced) 2019-04-05 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S05068 Detail]

Download: New_York-2019-S05068-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                    IN SENATE
                                      April 5, 2019
        Introduced  by  Sens.  RANZENHOFER,  FUNKE,  GALLIVAN  -- read twice and
          ordered printed, and when printed to be committed to the Committee  on
          Investigations and Government Operations
        AN  ACT to amend the tax law, in relation to establishing a Hire-Now tax
          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  one and two thousand twenty-two if a new employee  was  receiving  unem-
    18  ployment  insurance  benefits  at  the time of hire, an additional three
    19  thousand dollar credit will be  allowed  for  the  first  full  year  of
    20  employment.
    21    (c)  Definitions.  As  used in this section, the following terms shall
    22  have the following meanings:
    23    (1) "New employee" shall mean any full time employee that is hired  by
    24  the  taxpayer  after  July  first,  two thousand twenty and before April
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 5068                             2
     1  first, two thousand twenty-one, that causes the total number of  employ-
     2  ees to increase above base employment or credit employment, whichever is
     3  higher.
     4    (2) "Base year" shall mean calendar year two thousand nineteen.
     5    (3)  "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    (4)  "Credit employment" shall mean base employment plus the number of
     9  new employees for which a credit is earned for the prior tax years.
    10    (d) Replacement employees. If one or more new employees  for  which  a
    11  credit  was  earned leaves the payroll during the same taxable year that
    12  an individual is hired by the taxpayer to work in  this  state,  causing
    13  the  taxpayer's  total  employment to equal an amount that is above base
    14  employment but at or below the computed credit employment for the  taxa-
    15  ble  year, the credit eligibility period for the individual hired during
    16  the taxable year shall be three years minus the amount of time  (rounded
    17  to  the  next  full month) that the taxpayer received the credit for the
    18  departing employee.
    19    (e) No credit shall be allowed under this section to  a  taxpayer  for
    20  any  new  employee  if  the  taxpayer claims any other credit under this
    21  article for such new employee where the basis of such other credit is an
    22  increase in employment.
    23    § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
    24  sion 53 to read as follows:
    25    53.  Hire-Now  tax credit. (a) Allowance of credit. A taxpayer will be
    26  allowed a credit, to be computed as provided in  section  forty-four  of
    27  this chapter, against the tax imposed by this article.
    28    (b)  Application  of credit. The credit allowed under this subdivision
    29  for any taxable year may not reduce the tax due for such  year  to  less
    30  than  the  higher of the amounts prescribed in paragraph (d) of subdivi-
    31  sion one of section two hundred ten of this article.   However,  if  the
    32  amount  of  credit  allowed  under this subdivision for any taxable year
    33  reduces the tax to such amount, any amount of credit thus not deductible
    34  in such taxable year will be treated as an  overpayment  of  tax  to  be
    35  credited  or  refunded  in accordance with the provisions of section one
    36  thousand eighty-six of this chapter. Provided, however,  the  provisions
    37  of  subsection  (c) of section one thousand eighty-eight of this chapter
    38  notwithstanding, no interest will be paid thereon.
    39    § 3. Section 606 of the tax law is amended by adding a new  subsection
    40  (jjj) to read as follows:
    41    (jjj) Hire-Now tax credit. (1) A taxpayer will be allowed a credit, to
    42  the extent allowed under section forty-four of this chapter, against the
    43  tax imposed by this article.
    44    (2)  Application  of credit. If the amount of the credit allowed under
    45  this subsection for any taxable year exceeds the taxpayer's tax for such
    46  year, the excess will be treated as an overpayment of tax to be credited
    47  or refunded in accordance with the provisions  of  section  six  hundred
    48  eighty-six  of this article, provided, however, that no interest will be
    49  paid thereon.
    50    § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    51  of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
    52  follows:
    53  (xliv) Hire-Now tax credit              Amount of credit under
    54  under subsection (jjj)                  subdivision fifty-three of
    55                                          section two hundred ten-B
    56    § 5. This act shall take effect immediately.