Establishes a hire-now tax credit.

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S7661-2011 Actions

• Jun 18, 2012: referred to ways and means
• Jun 18, 2012: DELIVERED TO ASSEMBLY
• Jun 18, 2012: PASSED SENATE
• Jun 18, 2012: ORDERED TO THIRD READING CAL.1293
• Jun 12, 2012: REFERRED TO RULES

S7661-2011 Meetings

Rules: Jun 18, 2012, Rules: Jun 21, 2012

S7661-2011 Calendars

Floor Calendar: Jun 18, 2012

S7661-2011 Votes

S7661-2011 Memo

BILL NUMBER:S7661

TITLE OF BILL:

An act
to amend the tax law, in relation to establishing a
hire-now veterans tax credit

PURPOSE:

To enact a Hire-Now tax credit and an additional incentive for hiring
a Veteran.

SUMMARY OF PROVISIONS:

"HIRE-NOW-NY" TAX INCENTIVE: Our Hire-Now-NY proposal includes direct
incentives for each new job employers create, a business would get a
tax credit of up to $5,000 per employee for a maximum of three years.
The credit will equal 6.85 percent of wages paid to the employee. The
hires must be new employees. In order to qualify for the Hire-Now
credit the employee must be hired by April 1, 2013 to encourage a
quick boost in jobs.

"HIRE-A-VET" ENHANCED CREDIT - This bill would provide an enhanced tax
credit of up to $10,000 to any business that hires a veteran
returning home from military service. The new employee must be
employed full time for a full year to qualify for the additional
$5,000 credit.

JUSTIFICATION:

The unemployment rate for New York's veterans is nearly 30 percent.
This bill will help create thousands of new private sector jobs by
offering direct incentives to employers to hire our returning veterans.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

This will save employers $30 million in SFY 2013-14.

EFFECTIVE DATE:

Effective immediately.

S7661-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    7661

                              I N  SENATE

                                June 12, 2012
                                 ___________

  Introduced  by  Sen.  BALL  --  read twice and ordered printed, and when
    printed to be committed to the Committee on Rules

  AN ACT to amend the tax law, in  relation  to  establishing  a  hire-now
    veterans 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) HIRE-A-VET 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 AND IS ALSO A VETERAN,  AN  ADDI-
  TIONAL  FIVE  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.
    (2) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND TWELVE.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD14994-09-2

 S. 7661                             2

    (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.
    (5) "VETERAN" SHALL MEAN A RESIDENT OF THIS STATE, WHO HAS  SERVED  ON
  ACTIVE  DUTY  IN THE UNTIED STATES ARMY, NAVY, AIR FORCE, MARINES, COAST
  GUARD, AND/OR RESERVES THEREOF, AND/OR  THE  ARMY  NATIONAL  GUARD,  AIR
  NATIONAL  GUARD,  NEW  YORK GUARD AND/OR THE NEW YORK NAVAL MILITIA, AND
  WHO IS CURRENTLY IN SERVICE, OR HAS BEEN RELEASED FROM SUCH  SERVICE  BY
  HONORABLE  DISCHARGE,  OR WHO HAS BEEN FURLOUGHED TO THE RESERVE AND WHO
  SERVED IN A WAR, ARMED CONFLICT AND/OR OTHER HOSTILITIES.
    (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.