Provides that a taxpayer shall not be eligible for any credit or credits provided by section 210 of the tax law for the purposes of engaging in a development project, the cost of which exceeds one million dollars, unless such taxpayer has submitted a statement that 85% of the labor force hired to complete such development project consists of residents of this state.
TITLE OF BILL: An act to amend the tax law, in relation to the employment of New York state residents by taxpayers eligible to receive certain tax credits
PURPOSE: To encourage the hiring of New York State residents by taxpayers eligible to receive certain tax credits.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1(a) requires any taxpayer seeking certain tax, credits for the purpose of engaging in a development project, the cost of which exceeds one million dollars, to certify that 85% of the labor force hired to complete such development project consists of New York State residents.
Section 1(b) provides certain exemptions for a taxpayer subject to this subdivision.
Section 2 provides the effective date.
JUSTIFICATION: New York state residents have suffered high unemployment and significant financial hardship as a result of the recession. Large-scale development projects provide a critical opportunity for resident laborers across the state to provide their services. All too often, however, local labor resources are overlooked in favor of out-of-state laborers. New York offers generous tax credits to taxpayers to engage in multi-million dollar development projects, in an effort to promote economic development and jobs. Developers receiving this benefit have an obligation to "pay back" New York by hiring qualified and available state workers. This bill would therefore require hiring a labor force of at least 85% New York residents to complete a development project exceeding $1 million in order to receive tax credits from the State, subject to exemptions specified in the bill.
PRIOR LEGISLATIVE HISTORY:
S.6538 of 2011-2012; Referred to Investigations and Government Operations
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become a law and shall apply to any credit claimed on or after such effective date.
STATE OF NEW YORK ________________________________________________________________________ 1589 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. GRISANTI -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to the employment of New York state residents by taxpayers eligible to receive certain tax credits THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 210 of the tax law is amended by adding a new subdivision 46 to read as follows: 46. EMPLOYMENT OF NEW YORK STATE RESIDENTS. (A) A TAXPAYER SHALL NOT BE ENTITLED TO RECEIVE ANY CREDIT OR CREDITS PROVIDED BY THIS SECTION FOR THE PURPOSE OF ENGAGING IN A DEVELOPMENT PROJECT, THE COST OF WHICH EXCEEDS ONE MILLION DOLLARS, UNLESS SUCH TAXPAYER HAS SUBMITTED, ON A FORM AND IN A MANNER TO BE DETERMINED BY THE COMMISSIONER, A SWORN STATEMENT IN WRITING, UNDER OATH, ALONG WITH SUCH SUPPORTING DOCUMENTA- TION AS THE COMMISSIONER MAY REQUIRE, THAT EIGHTY-FIVE PERCENT OF THE LABOR FORCE HIRED TO COMPLETE SUCH DEVELOPMENT PROJECT DURING THE TAXA- BLE YEAR FOR WHICH SUCH STATEMENT IS SUBMITTED CONSISTED OF RESIDENTS OF THIS STATE. FOR PURPOSES OF THIS SUBDIVISION, "DEVELOPMENT PROJECT" SHALL MEAN THE REHABILITATION, IMPROVEMENT, CONSTRUCTION OR ACQUISITION, SINGLY OR IN COMBINATION, OF ONE OR MORE BUILDINGS OR STRUCTURES. (B) NOTWITHSTANDING THE FOREGOING, A TAXPAYER SUBJECT TO THIS SUBDIVI- SION MAY RECEIVE ANY CREDIT PROVIDED BY THIS SECTION IF IT CAN SHOW THAT: (I) IT MADE DILIGENT EFFORTS TO HIRE RESIDENT EMPLOYEES, BUT NO SUCH EMPLOYEES EXISTED OR WERE QUALIFIED FOR THE EMPLOYMENT POSITION; (II) THE EMPLOYMENT POSITION REQUIRES SPECIALIZED TALENTS THAT CAN ONLY BE FILLED BY INDIVIDUALS WHO HAPPEN TO RESIDE OUTSIDE THIS STATE; OREXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04714-01-3 S. 1589 2
(III) AT THE TIME OF SUCH SUBMISSION, A LABOR FORCE HAS NOT YET BEEN HIRED TO COMPLETE THE DEVELOPMENT PROJECT BUT THAT EIGHTY-FIVE PERCENT OF THE LABOR FORCE THAT SUCH TAXPAYER INTENDS TO HIRE IN THE UPCOMING TAXABLE YEAR OR YEARS WILL CONSIST OF RESIDENTS OF THIS STATE. S 2. This act shall take effect on the ninetieth day after it shall have become a law and shall apply to any credit claimed on or after such effective date.