Provides a tax credit of $1,000 against special additional mortgage tax and article 9-A (franchise tax on business corporations) for each employee employed in excess of one year at minimum wage for thirty hours per week who was a public assistance recipient for at least two years immediately preceding the commencement of such employment.
TITLE OF BILL: An act to amend the tax law, in relation to providing a tax credit for employers who employ workers who were receiving public assistance
PURPOSE: Provides a tax credit as an incentive for private employers to hire workers who were previously on public assistance.
SUMMARY OF PROVISIONS: Adds a new § 200 to the tax law, to provide a $1,000 per-employee credit to any employer who employs, for at least one year at over 30 hours per week, a worker who was a public assistance recipient for the two years preceding such employment.
JUSTIFICATION: Public assistance recipients often lack adequate education, skills, and experience that most jobs require, so employers are reluctant to hire them. They often do not have access to or are unaware of the resources that can provide them with the basic necessities for success in private industry. This bill will motivate employers of the private industry to seek out, train and employ these workers, so the State's volume of productive, competent individuals will increase. Financial independence will also be encouraged by this legislation, so reliance on public assistance will be reduced and New York State's economic status will continue to improve.
FISCAL IMPLICATIONS: The legislation would result in a reduction in State tax revenue of approximately $34 million for SFY 2010-11.
*Provided by State of New York Department of Taxation and Finance, Office of Tax Policy Analysis.
LEGISLATIVE HISTORY: 2009-10: S.1131 - Referred to Investigations & Government Operations 2007-08: S.2918 - Referred to Investigations, Taxation & Government Operations 2005-06: S.961 - Referred to Investigations, Taxation & Government Operations 2003-04: S.2247 - Referred to Investigations, Taxation & Government Operations 2001-02: S.1650/A.2638 - Referred to Investigations, Taxation & Government Operations
EFFECTIVE DATE: Effective immediately upon enactment into law.
STATE OF NEW YORK ________________________________________________________________________ 1373 2011-2012 Regular Sessions IN SENATE January 7, 2011 ___________Introduced by Sens. PERKINS, DIAZ, DILAN, DUANE, HASSELL-THOMPSON, KRUEGER -- 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 providing a tax credit for employers who employ workers who were receiving public assistance 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 200 to read as follows: S 200. EMPLOYMENT OF CERTAIN WORKERS; CREDIT. EVERY CORPORATION, COMPANY, ASSOCIATION OR TAXPAYER REQUIRED BY SECTION ONE HUNDRED EIGHT- Y-SEVEN OR ARTICLE NINE-A OF THIS CHAPTER TO PAY A TAX WHICH SHALL EMPLOY, FOR A PERIOD IN EXCESS OF ONE YEAR, ANY WORKER AS A FULL-TIME EMPLOYEE FOR NO LESS THAN THIRTY HOURS PER WEEK (EXCLUDING VACATION, SICK TIME OR SIMILAR EXCEPTIONS) AND WHO IS PAID BY SUCH CORPORATION, COMPANY, ASSOCIATION OR TAXPAYER NO LESS THAN THE MINIMUM WAGE AS PRESCRIBED BY ARTICLE NINETEEN OF THE LABOR LAW, AND WHO WAS RECEIVING PUBLIC ASSISTANCE FOR TWO YEARS OR MORE IMMEDIATELY PRECEDING THE COMMENCEMENT OF SUCH EMPLOYMENT SHALL BE ENTITLED TO A CREDIT AGAINST SUCH TAX OF ONE THOUSAND DOLLARS FOR EACH SUCH EMPLOYEE. S 2. This act shall take effect immediately and shall apply to all taxable years beginning after the thirty-first of December in the year this act takes effect.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03105-01-1