Establishes a five percent investment tax credit against the franchise tax imposed upon corporations for a portion of training or retraining expenses incurred by them in an eligible business facility, pursuant to rules and regulations of the department of taxation and finance promulgated in consultation with the department of labor.
TITLE OF BILL: An act to amend the tax law, in relation to providing for a tax credit for certain training or retraining expenses incurred by a taxpayer subject to the provisions of article 9-A of such law
PURPOSE OF THE BILL: Provides for a corporate franchise tax credit for employee training expenses in an eligible business facility.
SUMMARY OF SPECIFIC PROVISIONS: § 1- Amends subdivision 12 of § 210 of the tax law by adding a new paragraph (n) which allows for a tax credit in the amount equal to 5% of the expenditures paid or incurred by a taxpayer for training or retraining of employees, pursuant to Department of Labor review.
§ 2- Effective date.
JUSTIFICATION: More so than ever, reports and newspaper articles are documenting the shortages in today's job market of skilled employees. A combination of high automation levels in the workplace and low employee language skills have resulted in a major schism between job demand and supply. Some corporations are claiming that fewer than 30% of employment candidates met entry level skill and ability requirements. This legislation offers encouragement to employers to invest in the training of their employees. Patterned after the Investment Tax Credit, this legislation allows the same tax credit (5%) for the development of people as for the development of capital improvements.
PRIOR LEGISLATIVE HISTORY: 2009-2010: A.2897/S.4106 2007-2008: A.2956/S.1913 2005-2006: A.3191/S.5022 2003-2004: A.3401 2001-2002: A.946/S.756 1999-2000: A.353/S.4473 1997-1998: A.971-A/S.6372 1995-1996: A.1055/S.5258 1993-1994: A.5857
FISCAL IMPLICATIONS: Undetermined.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 5351 2011-2012 Regular Sessions IN SENATE May 11, 2011 ___________Introduced by Sen. KENNEDY -- 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 providing for a tax credit for certain training or retraining expenses incurred by a taxpayer subject to the provisions of article 9-A of such law THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 12 of section 210 of the tax law is amended by adding a new paragraph (n) to read as follows: (N) IN ADDITION TO THE CREDIT ALLOWED BY PARAGRAPH (A) OF THIS SUBDI- VISION, FOR TAXABLE YEARS BEGINNING AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND ELEVEN THERE SHALL BE ALLOWED A CREDIT IN AN AMOUNT EQUAL TO FIVE PERCENT OF THE EXPENDITURES PAID OR INCURRED BY A TAXPAYER FOR TRAINING OR RETRAINING OF EMPLOYEES IF SUCH TRAINING WAS GIVEN BY A TAXPAYER IN AN ELIGIBLE BUSINESS FACILITY. THE COMMISSIONER, IN CONSUL- TATION WITH THE DEPARTMENT OF LABOR, SHALL PROMULGATE RULES AND REGU- LATIONS TO DETERMINE AND IDENTIFY ELIGIBLE TRAINING PROGRAMS PURSUANT TO THIS PARAGRAPH. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06184-01-1