This bill has been amended

Bill S3892-2013

Establishes business franchise and personal income tax credits for employment of discharged combat veterans

Establishes business franchise and personal income tax credits for employment of discharged combat veterans.

Details

Actions

  • Jan 8, 2014: REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS
  • Feb 26, 2013: REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS

Meetings

Votes

VOTE: COMMITTEE VOTE: - Veterans, Homeland Security and Military Affairs - Mar 18, 2014
Ayes (10): Ball, Carlucci, Flanagan, Golden, Griffo, Grisanti, Larkin, Zeldin, Gipson, Latimer
Ayes W/R (3): Addabbo, Sanders, Tkaczyk

Memo

BILL NUMBER:S3892               REVISED 3/13/14

TITLE OF BILL: An act to amend the tax law, in relation to establishing business franchise and personal income tax credits for employers which employ combat veterans

PURPOSE: This bill will establish a business franchise and personal income tax credits for employment of discharged combat veterans.

SUMMARY OF PROVISIONS: Section One - amends section 210 of the tax law by adding a new subdivision 46 that will create a credit for employment of combat veterans A taxpayer shall be allowed a credit, to be computed against the tax imposed by this article for employing within the state combat veterans.

Section One - defines a combat veteran as a person who served in the armed forces of the United States within two years of commencing employment by the taxpayers, who served in a combat zone as designed by the department of defense, and who has been honorably discharged or released under honorable circumstances from their service or furloughed to the reserve.

Section One - defines the amount of the credit as six thousand dollars for each combat veterans employed by the taxpayer during the taxable year on a full-time basis of thirty-five hours or more of work per week. The credit may only be claimed, with regard to any combat veteran, during the first two tax years of such veterans' employment by the taxpayer.

Section One - states the credit allowed for any taxable year shall not reduce the tax due for such year to less than the amount prescribed in paragraph of subdivision one of this section. However, if the amount of credit allowable under this subdivision for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year that may be carrier over to the following year or years, and may be deducted from the taxpayer's tax for such year or years.

Section Two - amends subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xxxv) to state credit for employment of combat veterans under subsection (uu), amount of credit for employment of combat veterans under subdivision forty-five of section two hundred ten.

Section Three - amends section 606 of the tax law by adding a new subsection (vv) to create a credit for employment of combat veterans. A taxpayer shall be allowed a credit, to be computed against the tax imposed by this article for employing within the state a combat veterans.

Section Three - defines a combat veteran as a person who served in the armed forces of the United States within two years of commencing employment by the taxpayers, who served in a combat zone as designed by the department of defense, and who has been honorably discharged or released under honorable circumstances from their service or furloughed to the reserve. Section Three - states the credit allowed for any taxable year shall not reduce the tax due for such year to

less than the amount prescribed in paragraph of subdivision one of this section.

However, if the amount of credit allowable under this subdivision for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year that may be carrier over to the following year or years, and may be deducted from the taxpayer's tax for such year or years.

Section Three - states the credit allowed for any taxable year shall not reduce the tax due for such year to less than the amount prescribed in paragraph of subdivision one of this section.

However, if the amount of credit allowable under this subdivision for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year that may be carrier over to the following year or years, and may be deducted from the taxpayer's tax for such year or years.

Section Four - this act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2013.

JUSTIFICATION: The Iraq & Afghanistan Veterans of America (IAVA), in a report published in June of 2011 analyzed several key findings from the RAND Corporation's Needs Assessment of New York State Veterans. In the report, using the U.S. government's definition of unemployment, the rate for veterans in the survey was almost 13 percent, which is more than 4 percentage points higher than the overall unemployment rate in New York State in August of 2010. According to their report, in 2010, the average rate for Iraq-and Afghanistan-era veterans was 11.5 percent, almost 2 percent higher than the national average.

New York State must do everything in its power to provide our brave service men and women with quality employment opportunities when they return.

This legislation will provide an employer with a $6,000 tax credit if they hire a combat veteran who has been honorably discharged or released under honorable circumstances from their service or furloughed to the reserves within two years of their returning from their service.

LEGISLATIVE HISTORY:, 5/16/12- S.7439-A, Referred to Investigations and Government Operations 6/4/12- S.7439-B, Amend and Recommit to Finance 2/26/13- S.3892, Referred to Veterans, Homeland Security, and Military Affairs 1/8/14- S.3892, Referred to Veterans, Homeland Security, and Military Affairs

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2013.


Text

STATE OF NEW YORK ________________________________________________________________________ 3892 2013-2014 Regular Sessions IN SENATE February 26, 2013 ___________
Introduced by Sen. BALL -- read twice and ordered printed, and when printed to be committed to the Committee on Veterans, Homeland Securi- ty and Military Affairs AN ACT to amend the tax law, in relation to establishing business fran- chise and personal income tax credits for employers which employ combat veterans 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. CREDIT FOR EMPLOYMENT OF COMBAT VETERANS. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR EMPLOYING WITHIN THE STATE A COMBAT VETERAN. (B) COMBAT VETERAN. A COMBAT VETERAN IS A PERSON WHO SERVED IN THE ARMED SERVICES OF THE UNITED STATES WITHIN TWO YEARS OF COMMENCING EMPLOYMENT BY THE TAXPAYER, WHO SERVED IN A COMBAT ZONE AS DESIGNATED BY THE PRESIDENT OF THE UNITED STATES BY EXECUTIVE ORDER, AND WHO HAS BEEN HONORABLY DISCHARGED OR RELEASED UNDER HONORABLE CIRCUMSTANCES FROM SUCH SERVICE OR FURLOUGHED TO THE RESERVE. (C) AMOUNT OF CREDIT. THE AMOUNT OF CREDIT SHALL BE SIX THOUSAND DOLLARS FOR EACH COMBAT VETERAN EMPLOYED BY THE TAXPAYER DURING THE TAXABLE YEAR ON A FULL-TIME BASIS OF THIRTY-FIVE HOURS OR MORE OF WORK PER WEEK. THE CREDIT PROVIDED BY THIS SUBDIVISION MAY ONLY BE CLAIMED, WITH REGARD TO ANY COMBAT VETERAN, IF SUCH VETERAN HAS BEEN EMPLOYED BY THE TAXPAYER ON A FULL-TIME BASIS FOR AT LEAST TWENTY-FIVE CONSECUTIVE WEEKS. PROVIDED THAT THE TAXPAYER MAY ONLY CLAIM CREDIT FOR A COMBAT VETERAN FOR THE TAXABLE YEAR IN WHICH SUCH VETERAN COMPLETED THE EMPLOY- MENT DURATION REQUIREMENT OF THIS PARAGRAPH AND THE IMMEDIATELY SUCCEEDING TAXABLE YEAR IF SUCH VETERAN HAS BEEN CONTINUOUSLY EMPLOYED BY THE TAXPAYER FOR AT LEAST ONE YEAR.
(D) CARRYOVER. THE CREDIT ALLOWED PURSUANT TO THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBDIVI- SION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. 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) CREDIT FOR EMPLOYMENT AMOUNT OF CREDIT FOR OF COMBAT VETERANS UNDER EMPLOYMENT OF COMBAT SUBSECTION (VV) VETERANS UNDER SUBDIVISION FORTY-SIX OF SECTION TWO HUNDRED TEN S 3. Section 606 of the tax law is amended by adding a new subsection (vv) to read as follows: (VV) CREDIT FOR EMPLOYMENT OF COMBAT VETERANS. (1) ALLOWANCE OF CRED- IT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR EMPLOYING WITHIN THE STATE A COMBAT VETERAN. (2) COMBAT VETERAN. A COMBAT VETERAN IS A PERSON WHO SERVED IN THE ARMED SERVICES OF THE UNITED STATES WITHIN TWO YEARS OF COMMENCING EMPLOYMENT BY THE TAXPAYER, WHO SERVED IN A COMBAT ZONE AS DESIGNATED BY THE PRESIDENT OF THE UNITED STATES BY EXECUTIVE ORDER, AND WHO HAS BEEN HONORABLY DISCHARGED OR RELEASED UNDER HONORABLE CIRCUMSTANCES FROM SUCH SERVICE OR FURLOUGHED TO THE RESERVE. (3) AMOUNT OF CREDIT. THE AMOUNT OF CREDIT SHALL BE SIX THOUSAND DOLLARS FOR EACH COMBAT VETERAN EMPLOYED BY THE TAXPAYER DURING THE TAXABLE YEAR ON A FULL-TIME BASIS OF THIRTY-FIVE HOURS OR MORE OF WORK PER WEEK. THE CREDIT PROVIDED BY THIS SUBSECTION MAY ONLY BE CLAIMED, WITH REGARD TO ANY COMBAT VETERAN, IF SUCH VETERAN HAS BEEN EMPLOYED BY THE TAXPAYER ON A FULL-TIME BASIS FOR AT LEAST TWENTY-FIVE CONSECUTIVE WEEKS. PROVIDED THAT THE TAXPAYER MAY ONLY CLAIM CREDIT FOR A COMBAT VETERAN FOR THE TAXABLE YEAR IN WHICH SUCH VETERAN COMPLETED THE EMPLOY- MENT DURATION REQUIREMENT OF THIS PARAGRAPH AND THE IMMEDIATELY SUCCEED- ING TAXABLE YEAR IF SUCH VETERAN HAS BEEN CONTINUOUSLY EMPLOYED BY THE TAXPAYER FOR AT LEAST ONE YEAR. (4) CARRYOVER. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S 4. This act shall take effect immediately and shall apply to taxable years commencing on or after January 1, 2013.

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