This bill has been amended

Bill S1907-2013

Establishes a small business tax credit for the employment of disabled persons

Establishes a small business tax credit for the employment of disabled persons.

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  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 9, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S1907

TITLE OF BILL: An act to amend the tax law, in relation to establishing a small business tax credit for the employment of disabled persons

PURPOSE OR GENERAL IDEA OF BILL: To stimulate employment of disabled persons and retain their services.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1: Amendment to section 210, subdivision 46 of the tax law, for the providence of a business tax credit for the employer in regards to the employment of disabled persons for the duration of twelve months or more for a minimum of thirty-five hours per a week. Tax credit range will range between five thousand to twenty-five thousand dollars.

Section 2: The adoption of a new clause (xxxv) in section 606 of the tax law, specifying preceded amendment.

Section 3: Amendment to section 606 of the tax law, detailing the components of the business tax credit for the employment of disabled persons in a company of one hundred employees or less.

Section 4: The effective date.

JUSTIFICATION: With the struggles one experiences in today's economy, it is a continuous uphill battle to seek and retain viable employment. Disabled persons, by far, face unprecedented challenges. A 2004 Harris poll cited disabled persons are nearly twice as likely as people without disabilities to have an annual household income of $15,000 or less. According to a 2009 Bureau of Labor Statistics study, the unemployment rate of persons with a disability was fifteen percent, compared to nine percent for those without a disability. Further, a 2006 disability status report published by Cornell University determined twenty-two percent of persons with disabilities are employed full-time, compared to fifty-seven percent of persons without disabilities. There are also income discrepancies: a median salary of $65,000 for persons without disabilities, compared to a $36,000 median salary for persons with disabilities.

To stimulate employment for their services, a tax credit is being proposed to small business owners that retain disabled persons within their company for twelve months or more at a minimum of thirty-five hours of employment per a week. Their services will contribute to the economic growth of New York State, create greater awareness of their overlooked skills, and establish fairness with confidence.

PRIOR LEGISLATIVE HISTORY: 2012: A.8385-A -- died in Ways and Means/S.4107-A -Died in Investigations and Government Operations; 2011: A.8385-referred to Ways and Means.

FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This act shall take effect immediately and apply to taxable years beginning on or after January 1, 2014.


Text

STATE OF NEW YORK ________________________________________________________________________ 1907 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. ADDABBO -- 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 establishing a small busi- ness tax credit for the employment of disabled persons 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. SMALL BUSINESS TAX CREDIT; DISABLED PERSONS. (A) GENERAL. A TAXPAYER WHO HAS ONE HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CRED- IT, TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR EACH DISABLED PERSON HIRED DURING A TAXABLE YEAR, PROVIDED THAT SUCH DISABLED PERSON IS EMPLOYED FOR THIRTY-FIVE HOURS OR MORE PER WEEK AND REMAINS IN THE EMPLOY OF SUCH TAXPAYER FOR TWELVE MONTHS OR MORE. (B) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL EQUAL FIVE THOUSAND DOLLARS PER HIRED DISABLED PERSON BUT SHALL NOT EXCEED TWENTY-FIVE THOUSAND DOLLARS. (C) CARRYOVERS. THE CREDIT ALLOWED UNDER THIS SUBDIVISION MAY BE CLAIMED AND IF NOT FULLY USED IN THE INITIAL YEAR FOR WHICH THE CREDIT IS CLAIMED MAY BE CARRIED OVER, IN ORDER, TO EACH OF THE FIVE SUCCEEDING TAXABLE YEARS. THE CREDIT AUTHORIZED BY THIS SUBDIVISION MAY NOT BE USED TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO. (D) DEFINITIONS. AS USED IN THIS SUBDIVISION, THE TERM "DISABLED PERSON" SHALL MEAN A PERSON WHO SUFFERS FROM ANY PHYSICAL, MENTAL OR MEDICAL IMPAIRMENT RESULTING FROM ANATOMICAL, PHYSIOLOGICAL, GENETIC OR NEUROLOGICAL CONDITIONS WHICH PREVENTS THE EXERCISE OF A NORMAL BODILY FUNCTION OR IS DEMONSTRABLE BY MEDICALLY ACCEPTED CLINICAL OR LABORATORY DIAGNOSTIC TECHNIQUES.
S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xxxv) to read as follows: (XXXV) SMALL BUSINESS TAX CREDIT; COSTS UNDER SUBDIVISION DISABLED PERSONS FORTY-SIX OF SECTION SUBSECTION (VV) TWO HUNDRED TEN S 3. Section 606 of the tax law is amended by adding a new subsection (vv) to read as follows: (VV) SMALL BUSINESS TAX CREDIT; DISABLED PERSONS. (1) GENERAL. A TAXPAYER WHO HAS ONE HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CRED- IT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR EACH DISABLED PERSON HIRED DURING A TAXABLE YEAR, PROVIDED THAT SUCH DISABLED PERSON IS EMPLOYED FOR THIRTY-FIVE HOURS OR MORE PER WEEK AND REMAINS IN THE EMPLOY OF SUCH TAXPAYER FOR TWELVE MONTHS OR MORE. (2) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL EQUAL FIVE THOUSAND DOLLARS PER HIRED DISABLED PERSON BUT SHALL NOT EXCEED TWENTY-FIVE THOUSAND DOLLARS. (3) CARRYOVERS. THE CREDIT ALLOWED UNDER THIS SUBSECTION MAY BE CLAIMED AND IF NOT FULLY USED IN THE INITIAL YEAR FOR WHICH THE CREDIT IS CLAIMED MAY BE CARRIED OVER, IN ORDER, TO EACH OF THE FIVE SUCCEEDING TAXABLE YEARS. THE CREDIT AUTHORIZED BY THIS SUBSECTION MAY NOT BE USED TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO. (4) DEFINITIONS. AS USED IN THIS SUBSECTION, THE TERM "DISABLED PERSON" SHALL MEAN A PERSON WHO SUFFERS FROM ANY PHYSICAL, MENTAL OR MEDICAL IMPAIRMENT RESULTING FROM ANATOMICAL, PHYSIOLOGICAL, GENETIC OR NEUROLOGICAL CONDITIONS WHICH PREVENTS THE EXERCISE OF A NORMAL BODILY FUNCTION OR IS DEMONSTRABLE BY MEDICALLY ACCEPTED CLINICAL OR LABORATORY DIAGNOSTIC TECHNIQUES. S 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2014.

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