S T A T E O F N E W Y O R K
________________________________________________________________________
10121
I N A S S E M B L Y
May 7, 2012
___________
Introduced by M. of A. N. RIVERA -- read once and referred to the
Committee on Labor
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 of the tax law is amended by adding a new
2 subdivision 45 to read as follows:
3 45. 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 WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS
17 ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
18 THE LABOR LAW; AND
19 (V) SUCH BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING ACCOUNT OF
20 AN EMPLOYER UNDER THIS ARTICLE; OR
21 (VI) HAS SUCCESSFULLY COMPLETED A TRAINING PROGRAM PURSUANT TO SECTION
22 FIVE HUNDRED NINETY-NINE OF THE LABOR LAW; AND
23 (VII) PERFORMS SERVICES IN ACCORDANCE WITH SUBDIVISION ONE, TWO OR
24 FOUR OF SECTION FIVE HUNDRED ELEVEN OF THE LABOR LAW;
25 (VIII) REMAINS EMPLOYED BY THE EMPLOYER FOR AT LEAST TWENTY-FOUR
26 CONSECUTIVE MONTHS; AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02530-03-2
A. 10121 2
1 (IX) DURING THE ENTIRE PERIOD SUCH EMPLOYMENT SHALL CONSIST OF AT
2 LEAST THIRTY HOURS PER WEEK.
3 (D) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE
4 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 ELEVEN.
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 S 2. Section 606 of the tax law is amended by adding a new subsection
29 (uu) to read as follows:
30 (UU) 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 EMPLOYEE.
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 WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS
44 ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
45 THE LABOR LAW; AND
46 (E) SUCH BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING ACCOUNT OF
47 AN EMPLOYER UNDER THIS ARTICLE; OR
48 (F) HAS SUCCESSFULLY COMPLETED A TRAINING PROGRAM PURSUANT TO SECTION
49 FIVE HUNDRED NINETY-NINE OF THE LABOR LAW; AND
50 (G) PERFORMS SERVICES IN ACCORDANCE WITH SUBDIVISION ONE, TWO OR FOUR
51 OF SECTION FIVE HUNDRED ELEVEN OF THE LABOR LAW;
52 (H) REMAINS EMPLOYED BY THE EMPLOYER FOR AT LEAST TWENTY-FOUR CONSEC-
53 UTIVE MONTHS; AND
54 (I) DURING THE ENTIRE PERIOD SUCH EMPLOYMENT SHALL CONSIST OF AT LEAST
55 THIRTY HOURS PER WEEK.
A. 10121 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 ELEVEN.
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 S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
27 of the tax law is amended by adding a new clause (xxxiv) to read as
28 follows:
29 (XXXIV) JOBS DEVELOPMENT INCENTIVE AMOUNT OF CREDIT UNDER
30 TAX CREDIT UNDER SUBSECTION (UU) SUBDIVISION FORTY-FIVE OF SECTION
31 TWO HUNDRED TEN OF THIS CHAPTER
32 S 4. This act shall take effect immediately.