This bill has been amended

Bill S3739-2013

Establishes a small business tax credit for the employment of unemployed college graduates

Establishes a small business tax credit for the employment of unemployed college graduates.

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  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Feb 13, 2013: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S3739

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

PURPOSE: Encourage small-business employers to hire well-educated college graduates in various employable industries, and retain their knowledge and potential in strengthening and furthering New York State's economic goals.

SUMMARY OF PROVISIONS:

Section 1: Subdivision 46 is amended to section 210 of the Tax law, to establish a small business tax credit in the range five thousand to twenty-five thousand for each employer who hires an unemployed college graduate for a period of twelve months or more, and a minimum of thirty-five hours per week.

Section 2: Clause (xxxv) is added to section 606 of the Tax law, to identify legislative intent of bill found within subdivision 43 of section 210 of the Tax law.

Section 3: Subsection (vv) is amended to section 606 of the Tax law, to establish a small business tax credit in the range five thousand to twenty-five thousand for each employer who hires an unemployed college graduate for a period of twelve months or more, and a minimum of thirty-five hours per week.

JUSTIFICATION:

Recent February 2011 unemployment data found 9.5% of college graduates were unemployed, besting an unemployment rate of 8.9% for New York State. As college graduates are over burdened with tuition debt, lack of competitive grants offered by the State, credit card debt, cost- of-living concerns and uneasiness in adapting to a working society, these graduates have to overcome many obstacles to earn their first paid position out of school. Additionally, lack of prior work experience leads a majority of college graduates to remain unemployed.

A yearly study performed by Project on student Debt determined by New York State was ranked 11th in the country with college graduate debt for public 4-year institutions and private non-profit 4-year institutions. The average debt in 2010 was approximately $26,000/per college graduate.

To stimulate a job market for college graduates and to tap in to their knowledge, it is our intent to offer to small businesses a tax credit for the hiring and retention of college graduates at a minimum thirtyfive hour per week schedule, for a minimum employable period of one year.

LEGISLATIVE HISTORY:

2012: S. 4335A - Referred to Investigations and Government Operations

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE:

Shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2014.


Text

STATE OF NEW YORK ________________________________________________________________________ 3739 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 AN ACT to amend the tax law, in relation to establishing a small busi- ness tax credit for the employment of unemployed college graduates 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; UNEMPLOYED COLLEGE GRADUATES. (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 UNEMPLOYED COLLEGE GRADUATE HIRED DURING A TAXABLE YEAR, PROVIDED THAT SUCH UNEMPLOYED COLLEGE GRADUATE 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 UNEMPLOYED COLLEGE GRADUATE 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 "COLLEGE" SHALL MEAN A PUBLIC OR INDEPENDENT COLLEGE; THE TERM "PUBLIC COLLEGE" SHALL MEAN EACH COMPONENT OF THE STATE UNIVERSITY, AS DEFINED IN SUBDIVISION THREE OF SECTION THREE HUNDRED FIFTY-TWO OF THE EDUCATION LAW AND IN SUBDIVISION TWO OF SECTION SIXTY-THREE HUNDRED ONE OF THE EDUCATION LAW AND EACH COMMUNITY COLLEGE AND SENIOR COLLEGE OF THE CITY UNIVERSITY OF NEW YORK, AS DEFINED IN SUBDIVISIONS FOUR AND FIVE OF SECTION SIXTY-TWO
HUNDRED TWO OF THE EDUCATION LAW; AND THE TERM "INDEPENDENT COLLEGE" SHALL MEAN EACH INDEPENDENT NOT-FOR-PROFIT INSTITUTION OF HIGHER EDUCA- TION, AS DEFINED IN SUBDIVISION TWO OF SECTION SIXTY-FOUR HUNDRED ONE OF THE EDUCATION LAW. 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 UNEMPLOYED COLLEGE GRADUATES FORTY-SIX OF SECTION UNDER 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; UNEMPLOYED COLLEGE GRADUATES. (1) 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 UNEMPLOYED COLLEGE GRADUATE HIRED DURING A TAXABLE YEAR, PROVIDED THAT SUCH UNEMPLOYED COLLEGE GRAD- UATE 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 UNEMPLOYED COLLEGE GRADUATE 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 "COLLEGE" SHALL MEAN A PUBLIC OR INDEPENDENT COLLEGE; THE TERM "PUBLIC COLLEGE" SHALL MEAN EACH COMPONENT OF THE STATE UNIVERSITY, AS DEFINED IN SUBDIVISION THREE OF SECTION THREE HUNDRED FIFTY-TWO OF THE EDUCATION LAW AND IN SUBDIVISION TWO OF SECTION SIXTY-THREE HUNDRED ONE OF THE EDUCATION LAW AND EACH COMMUNITY COLLEGE AND SENIOR COLLEGE OF THE CITY UNIVERSITY OF NEW YORK, AS DEFINED IN SUBDIVISIONS FOUR AND FIVE OF SECTION SIXTY-TWO HUNDRED TWO OF THE EDUCATION LAW; AND THE TERM "INDEPENDENT COLLEGE" SHALL MEAN EACH INDEPENDENT NOT-FOR-PROFIT INSTITUTION OF HIGHER EDUCA- TION, AS DEFINED IN SUBDIVISION TWO OF SECTION SIXTY-FOUR HUNDRED ONE OF THE EDUCATION LAW. 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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