Bill S2117B-2013

Creates a jobs development incentive income tax credit available to employers who employ individuals previously receiving unemployment

Creates a job development incentive income tax credit available to employers who employ individuals previously receiving unemployment.

Details

Actions

  • Jan 28, 2014: PRINT NUMBER 2117B
  • Jan 28, 2014: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jun 6, 2013: PRINT NUMBER 2117A
  • Jun 6, 2013: AMEND AND RECOMMIT TO FINANCE
  • May 21, 2013: REPORTED AND COMMITTED TO FINANCE
  • Jan 11, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S2117B

TITLE OF BILL: An act to amend the tax law, in relation to a jobs development incentive income tax credit available to employers who employ individuals previously receiving unemployment benefits

PURPOSE: This bill would give incentives, through income tax credits, to businesses who hire individuals currently receiving unemployment benefits.

SUMMARY OF SPECIFIC PROVISIONS: SECTION 1 - amends Tax Law Section 210 relating to franchise taxes on business corporations, to add a new subdivision 48 granting an employment incentive tax credit. The credit is in the amount of $2,400 for each creditable employee, as defined in the section.

SECTION 2 - amends Tax Law Section 606, relating to personal income taxes, by adding a new subsection (xx) granting an employee incentive tax credit in the amount of $2,400 per creditable employee, as defined in the section.

SECTION 3 - amends subparagraph (B) of paragraph 1 of subsection (i) of Section 606 of the Tax Law, relating to S corporations, by adding a new clause (xxxvii) providing for an employment incentive tax credit under subsection (xx) in the amount of the credit under subdivision 48 of Section 210.

SECTION 4 - Effective date.

CURRENT LAW: There are many tax credits available to individuals and businesses to promote activities that benefit the state economy.

JUSTIFICATION: The economic meltdown that has engulfed the world's economy has left businesses in New York struggling to survive, and tens of thousands of workers on unemployment. The state needs to act to help employers and to return unemployed individuals to work. This bill accomplishes both of these purposes. The bill offers incentives to employers to rehire workers who have lost their jobs and are on unemployment.

This bill offers tax credits of up to $2,400 per employee to employers, whether corporate, individual or an S corporation, for hiring unemployed persons who meet specified criteria. Both of these credits offer an additional incentive to employers to take the risk and increase their workforce.

This bill offers meaningful incentive to hire new employees from the ranks of the unemployed, and offers new employment opportunity to individuals.

FISCAL IMPLICATIONS: To be determined.

LEGISLATIVE HISTORY: 2009 - S.5264-A -- LABOR 2010 - S.5264-B/A.10085-B -- LABOR/Labor 2011-2012 - S.3999-A/A.10121 - PASSED SENATE/Labor 2013 S.2117-A/A.806-A - FINANCE/Labor

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 2117--B 2013-2014 Regular Sessions IN SENATE January 11, 2013 ___________
Introduced by Sens. RANZENHOFER, BONACIC, DeFRANCISCO, GALLIVAN, LARKIN, MAZIARZ -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- reported favorably from said committee and committed to the Commit- tee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee 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: Section 1. Section 210 of the tax law is amended by adding a new subdivision 48 to read as follows: 48. JOBS DEVELOPMENT INCENTIVE TAX CREDIT. (A) A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE IN THE AMOUNT PRESCRIBED BY THIS SUBDIVISION WHERE SUCH TAXPAYER EMPLOYS ONE OR MORE CREDITABLE EMPLOYEE. (B) THE AMOUNT OF THE CREDIT SHALL BE TWO THOUSAND FOUR HUNDRED DOLLARS FOR EACH CREDITABLE EMPLOYEE. (C) FOR THE PURPOSES OF THIS SUBDIVISION, "CREDITABLE EMPLOYEE" SHALL MEAN A NEW EMPLOYEE OF AN EMPLOYER WHO: (I) IS EMPLOYED BY THE EMPLOYER FOR THE FIRST TIME ON OR AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION; (II) HAS FILED A CLAIM FOR UNEMPLOYMENT COMPENSATION IN THIS STATE; (III) HAS RECEIVED UNEMPLOYMENT BENEFITS IN THIS STATE FOR AT LEAST TWO MONTHS;
(IV) IS CURRENTLY RECEIVING UNEMPLOYMENT COMPENSATION BENEFITS AS OF THE DATE OF EMPLOYMENT; AND (V) SUCH BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING ACCOUNT OF AN EMPLOYER UNDER THIS ARTICLE; OR (VI) HAS SUCCESSFULLY COMPLETED A TRAINING PROGRAM PURSUANT TO SECTION FIVE HUNDRED NINETY-NINE OF THE LABOR LAW; AND (VII) PERFORMS SERVICES IN ACCORDANCE WITH SUBDIVISION ONE, TWO OR FOUR OF SECTION FIVE HUNDRED ELEVEN OF THE LABOR LAW; (VIII) REMAINS EMPLOYED BY THE EMPLOYER FOR AT LEAST TWENTY-FOUR CONSECUTIVE MONTHS; AND (IX) DURING THE ENTIRE PERIOD SUCH EMPLOYMENT SHALL CONSIST OF AT LEAST THIRTY HOURS PER WEEK. (D) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (I) "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT CAUSES THE TOTAL NUMBER OF EMPLOYEES TO INCREASE ABOVE BASE EMPLOYMENT OR CREDIT EMPLOYMENT, WHICHEVER IS HIGHER. (II) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND ELEVEN. (III) "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. (IV) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED. (E) AN EMPLOYER WHO HAS ONE OR MORE CREDITABLE EMPLOYEES SHALL BE ELIGIBLE TO APPLY FOR AND RECEIVE THE CREDIT ESTABLISHED IN THIS SUBDI- VISION. ELIGIBILITY FOR THE CREDIT SHALL BE ESTABLISHED AS OF THE TIME THE CREDITABLE EMPLOYEE COMPLETES TWENTY-FOUR CONSECUTIVE MONTHS OF EMPLOYMENT, AND THE CREDIT SHALL BE CLAIMED FOR THE TAXABLE YEAR IN WHICH THE TWENTY-FOURTH MONTH OF SUCH EMPLOYMENT IS COMPLETED. (F) IN NO EVENT SHALL THE TOTAL AMOUNT OF ANY TAX CREDIT UNDER THIS SUBDIVISION FOR A TAXABLE YEAR EXCEED THE TAXPAYER'S INCOME TAX LIABIL- ITY. ANY UNUSED TAX CREDIT SHALL BE ALLOWED TO BE CARRIED FORWARD TO APPLY TO THE TAXPAYER'S SUCCEEDING FIVE YEARS' TAX LIABILITY. NO SUCH TAX CREDIT SHALL BE ALLOWED THE TAXPAYER AGAINST PRIOR YEARS' TAX LIABILITY. (G) THE CREDIT SHALL BE CLAIMED AND GRANTED IN SUCH MANNER AS SHALL BE SPECIFIED BY RULES ADOPTED BY THE COMMISSIONER. S 2. Section 606 of the tax law is amended by adding a new subsection (xx) to read as follows: (XX) JOBS DEVELOPMENT INCENTIVE TAX CREDIT. (1) A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS ARTICLE IN THE AMOUNT PRESCRIBED BY THIS SUBSECTION WHERE SUCH TAXPAYER EMPLOYS ONE OR MORE CREDITABLE EMPLOYEE. (2) THE AMOUNT OF THE CREDIT SHALL BE TWO THOUSAND FOUR HUNDRED DOLLARS FOR EACH CREDITABLE EMPLOYEE. (3) FOR THE PURPOSES OF THIS SUBSECTION, "CREDITABLE EMPLOYEE" SHALL MEAN A NEW EMPLOYEE OF AN EMPLOYER WHO: (A) IS EMPLOYED BY THE EMPLOYER FOR THE FIRST TIME ON OR AFTER THE EFFECTIVE DATE OF THIS SUBSECTION; (B) HAS FILED A CLAIM FOR UNEMPLOYMENT COMPENSATION IN THIS STATE; (C) HAS RECEIVED UNEMPLOYMENT BENEFITS IN THIS STATE FOR AT LEAST TWO MONTHS; (D) IS CURRENTLY RECEIVING UNEMPLOYMENT COMPENSATION BENEFITS AS OF THE DATE OF EMPLOYMENT; AND (E) SUCH BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING ACCOUNT OF AN EMPLOYER UNDER THIS ARTICLE; OR
(F) HAS SUCCESSFULLY COMPLETED A TRAINING PROGRAM PURSUANT TO SECTION FIVE HUNDRED NINETY-NINE OF THE LABOR LAW; AND (G) PERFORMS SERVICES IN ACCORDANCE WITH SUBDIVISION ONE, TWO OR FOUR OF SECTION FIVE HUNDRED ELEVEN OF THE LABOR LAW; (H) REMAINS EMPLOYED BY THE EMPLOYER FOR AT LEAST TWENTY-FOUR CONSEC- UTIVE MONTHS; AND (I) DURING THE ENTIRE PERIOD SUCH EMPLOYMENT SHALL CONSIST OF AT LEAST THIRTY HOURS PER WEEK. (4) FOR THE PURPOSES OF THIS SUBSECTION THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT CAUSES THE TOTAL NUMBER OF EMPLOYEES TO INCREASE ABOVE BASE EMPLOYMENT OR CREDIT EMPLOYMENT, WHICHEVER IS HIGHER. (B) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND ELEVEN. (C) "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. (D) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED. (5) AN EMPLOYER WHO HAS ONE OR MORE CREDITABLE EMPLOYEES SHALL BE ELIGIBLE TO APPLY FOR AND RECEIVE THE CREDIT ESTABLISHED IN THIS SUBSECTION. ELIGIBILITY FOR THE CREDIT SHALL BE ESTABLISHED AS OF THE TIME THE CREDITABLE EMPLOYEE COMPLETES TWENTY-FOUR CONSECUTIVE MONTHS OF EMPLOYMENT, AND THE CREDIT SHALL BE CLAIMED FOR THE TAXABLE YEAR IN WHICH THE TWENTY-FOURTH MONTH OF SUCH EMPLOYMENT IS COMPLETED. (6) IN NO EVENT SHALL THE TOTAL AMOUNT OF ANY TAX CREDIT UNDER THIS SUBSECTION FOR A TAXABLE YEAR EXCEED THE TAXPAYER'S INCOME TAX LIABIL- ITY. ANY UNUSED TAX CREDIT SHALL BE ALLOWED TO BE CARRIED FORWARD TO APPLY TO THE TAXPAYER'S SUCCEEDING FIVE YEARS' TAX LIABILITY. NO SUCH TAX CREDIT SHALL BE ALLOWED THE TAXPAYER AGAINST PRIOR YEARS' TAX LIABILITY. (7) THE CREDIT SHALL BE CLAIMED AND GRANTED IN SUCH MANNER AS SHALL BE SPECIFIED BY RULES ADOPTED BY THE COMMISSIONER. S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xxxvii) to read as follows: (XXXVII) JOBS DEVELOPMENT INCENTIVE AMOUNT OF CREDIT UNDER TAX CREDIT UNDER SUBSECTION (XX) SUBDIVISION FORTY-EIGHT OF SECTION TWO HUNDRED TEN OF THIS CHAPTER S 4. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Discuss!

blog comments powered by Disqus