Bill S3738B-2013

Establishes a small business tax credit for the employment of persons fifty-five years of age and older

Establishes a small business tax credit for the employment of persons fifty-five years of age and older.

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  • Feb 12, 2014: PRINT NUMBER 3738B
  • Feb 12, 2014: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Apr 26, 2013: PRINT NUMBER 3738A
  • Apr 26, 2013: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Feb 13, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S3738B

TITLE OF BILL: An act to amend the tax law, in relation to establishing a small business tax credit for the employment of persons fifty-five years of age or older

PURPOSE: To stimulate employment of persons fifty-five or older who face unprecedented challenges in reentering the workforce or continuing employment.

SUMMARY OF PROVISIONS:

Section 1: Amendment to section 210, subdivision 48 of the tax law, for the providence of a business tax credit for the employer in regards to employment of persons age fifty-five or older for the duration of twelve months or more, and for thirty-five hours or more per week. Tax credit range will range between five thousand to twenty-five thousand dollars.

Section 2: The adoption of a new clause (xxxvii) 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 persons fifty-five or older in a company of one hundred employees or less.

JUSTIFICATION: Although the rate of unemployment among older workers is lower than that for their younger counterparts, as explained by the Bureau of Labor Statistics, older persons who do become unemployed spend more time searching for work. A February 2010 study found older workers were unemployed for an average of thirty-six weeks, compared to twenty-three weeks for persons aged sixteen through twenty-four, and thirty weeks for persons aged twenty-five through fifty-four. Older workers often encounter challenges when trying to remain or reengage in the work force. Many of these challenges stem from policies that were created years ago when there was a labor surplus, before the recent shifts to a knowledge-based economy and trends in population demographics.

As cost-of-living expenses increase, the financial needs and desires of older workers is compromised, leaving older workers no other viable option but to return to the workforce or continue employment. Home values, often a family's most important asset, have plummeted. Additionally, an April 2010 Gallup poll found more than a third of people plan to work beyond age sixty-five, compared to twelve percent in 1995.

Offering tax credit incentives to small businesses that employ persons ages fifty-five or older will keep older residents from leaving the state, whereby further contributing to the economic upheaval of the state and the sharing of wisdom from an older workforce to a younger generation.

LEGISLATIVE HISTORY: 2013: S. 3738A - Referred to Investigations and Government Operations.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: Shall take effect immediately and apply to taxable years beginning on or after January 1, 2015.


Text

STATE OF NEW YORK ________________________________________________________________________ 3738--B 2013-2014 Regular Sessions IN SENATE February 13, 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 -- 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 establishing a small busi- ness tax credit for the employment of persons fifty-five years of age or older 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. SMALL BUSINESS TAX CREDIT; PERSONS AGE FIFTY-FIVE OR OLDER. (A) GENERAL. A TAXPAYER WHO HAS ONE HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR EACH PERSON AGE FIFTY-FIVE OR OLDER HIRED DURING A TAXABLE YEAR, PROVIDED THAT SUCH PERSON AGE FIFTY-FIVE OR OLDER 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 PERSON AGE FIFTY-FIVE OR OLDER 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.
S 2. 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) SMALL BUSINESS TAX CREDIT; COSTS UNDER SUBDIVISION PERSONS FIFTY-FIVE YEARS OF AGE OR FORTY-EIGHT OF SECTION OLDER UNDER SUBSECTION (XX) TWO HUNDRED TEN S 3. Subsections (yy) and (zz) of section 606 of the tax law, as relettered by section 5 of part H of chapter 1 of the laws of 2003, are relettered subsections (yyy) and (zzz) and a new subsection (xx) is added to read as follows: (XX) SMALL BUSINESS TAX CREDIT; PERSONS AGE FIFTY-FIVE OR OLDER. (A) GENERAL. A TAXPAYER WHO HAS ONE HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR EACH PERSON AGE FIFTY-FIVE OR OLDER HIRED DURING A TAXABLE YEAR, PROVIDED THAT SUCH PERSON AGE FIFTY-FIVE OR OLDER 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 PERSON AGE FIFTY-FIVE OR OLDER BUT SHALL NOT EXCEED TWENTY-FIVE THOUSAND DOLLARS. (C) CARRYOVERS. THE CREDIT ALLOWED IN 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. S 4. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2015.

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