A10668-2011 Actions

• Jun 13, 2012: referred to ways and means

A10668-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 10668
 I N  ASSEMBLY
 June 13, 2012
 
 Introduced  by  COMMITTEE ON RULES -- (at request of M. of A. N. Rivera,
 Crespo,  Linares,  Moya,  Espinal,   Rodriguez,   Castro,   J. Rivera,
 P. Rivera,  Arroyo,  Ramos) -- read once and referred to the Committee
 on Ways and Means
 

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:

 

Section 1.  The tax law is amended by adding a new section 37 to  read
 as follows:

 

S  37. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER, WHICH
 IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER AND
 WHICH CREATES A NEW JOB, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX. THE
 AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE  EQUAL  TO  THE
 PRODUCT  OF 6.85 PERCENT AND THE GROSS WAGES PAID FOR EACH NEW EMPLOYEE.
 THE CREDIT SHALL NOT BE MORE THAN FIVE  THOUSAND  DOLLARS  FOR  ANY  NEW
 EMPLOYEE  FOR  ONE  FULL  YEAR OF EMPLOYMENT; IF A NEW EMPLOYEE HAS BEEN
 HIRED FOR LESS THAN A FULL TAX YEAR THIS AMOUNT SHALL  BE  PRORATED  AND
 APPORTIONED TO EACH TAX YEAR BUT SHALL IN NO WAY DECREASE THE FULL THREE
 CONSECUTIVE  YEARS  OF  CREDIT  ELIGIBILITY. THE TAXPAYER MAY CLAIM THIS
 CREDIT FOR EACH NEW EMPLOYEE FOR A PERIOD OF THREE CONSECUTIVE YEARS  OF
 EMPLOYMENT.    THE  TAXPAYER  MAY OFFSET QUARTERLY ESTIMATED TAX RETURNS
 WITH THE AMOUNT OF THIS CREDIT EARNED IN ANY PREVIOUS QUARTER.
 (B) UNEMPLOYMENT ENHANCEMENT. FOR CALENDAR YEARS TWO THOUSAND THIRTEEN
 AND TWO THOUSAND FOURTEEN IF A NEW EMPLOYEE WAS  RECEIVING  UNEMPLOYMENT
 INSURANCE  BENEFITS  AT  THE  TIME OF HIRE, AN ADDITIONAL THREE THOUSAND
 DOLLAR CREDIT WILL BE ALLOWED FOR THE FIRST FULL YEAR OF EMPLOYMENT.
 (C) DEFINITIONS. AS USED IN THIS SECTION, THE  FOLLOWING  TERMS  SHALL
 HAVE THE FOLLOWING MEANINGS:

 (1)  "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT IS HIRED BY
 THE TAXPAYER AFTER JULY FIRST, TWO  THOUSAND  TWELVE  AND  BEFORE  APRIL
 FIRST,  TWO THOUSAND THIRTEEN, THAT CAUSES THE TOTAL NUMBER OF EMPLOYEES
 TO INCREASE ABOVE BASE EMPLOYMENT OR  CREDIT  EMPLOYMENT,  WHICHEVER  IS
 HIGHER.
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD14994-08-2
 
       A. 10668                            2
 (2) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND TWELVE.
 (3)  "BASE  EMPLOYMENT"  SHALL  MEAN  THE  AVERAGE NUMBER OF FULL TIME
 EMPLOYEES OR FULL TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR  A
 NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
 (4)  "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
 NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED FOR THE PRIOR TAX YEARS.
 (D) REPLACEMENT EMPLOYEES. IF A NEW EMPLOYEE FOR WHICH  A  CREDIT  WAS
 EARNED  LEAVES  THE  PAYROLL AND AN EMPLOYEE IS HIRED WHICH BRINGS TOTAL
 EMPLOYMENT ABOVE BASE EMPLOYMENT  BUT  AT  OR  BELOW  CREDIT  EMPLOYMENT
 LEVEL,  THE  CREDIT  ELIGIBILITY PERIOD FOR SUCH EMPLOYEE SHALL BE THREE
 YEARS MINUS THE AMOUNT OF TIME (ROUNDED TO  THE  NEXT  FULL  MONTH)  THE
 EMPLOYER RECEIVED THE CREDIT FOR THE DEPARTING EMPLOYEE.
 (E)  NO  CREDIT  SHALL BE ALLOWED UNDER THIS SECTION TO A TAXPAYER FOR
 ANY NEW EMPLOYEE IF THE TAXPAYER CLAIMS  ANY  OTHER  CREDIT  UNDER  THIS
 ARTICLE FOR SUCH NEW EMPLOYEE WHERE THE BASIS OF SUCH OTHER CREDIT IS AN
 INCREASE IN EMPLOYMENT.
 

S 2.

Section 210 of the tax law is amended by adding a new subdivision
 45 to read as follows:

 45.  HIRE-NOW  TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WILL BE
 ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN  OF
 THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
 (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
 THAN  THE  HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF
 SUBDIVISION ONE OF THIS  SECTION.  HOWEVER,  IF  THE  AMOUNT  OF  CREDIT
 ALLOWED  UNDER  THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
 SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE  IN  SUCH  TAXABLE
 YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED
 IN  ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF
 THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS  OF  SUBSECTION  (C)  OF
 SECTION  ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO
 INTEREST WILL BE PAID THEREON.
 

S 3.

Section 606 of the tax law is amended by adding a new  subsection
 (uu) to read as follows:

 (UU)  HIRE-NOW TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED A CREDIT, TO
 THE EXTENT ALLOWED UNDER SECTION THIRTY-SEVEN OF THIS  CHAPTER,  AGAINST
 THE TAX IMPOSED BY THIS ARTICLE.
 (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
 YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
 OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX  HUNDRED
 EIGHTY-SIX  OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE
 PAID THEREON.
 

S 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended by adding a new clause (xxxiv) to read as
 follows:

 (XXXIV) HIRE-NOW TAX CREDIT             AMOUNT OF CREDIT UNDER
 UNDER SUBSECTION (UU)                   SUBDIVISION FORTY-FIVE OF SECTION
 TWO HUNDRED TEN
 

S 5. This act shall take effect immediately.

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