Bill S6796-2013

Establishes an employment of New York national guard and reserve members wage tax credit

Establishes a tax credit for companies that employ New York national guard and reserve members.

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  • Mar 11, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Memo

BILL NUMBER:S6796

TITLE OF BILL: An act to amend the tax law, in relation to creating a wage tax credit for employers who employ New York national guard men and women and reservists

PURPOSE OR GENERAL IDEA OF BILL: To establish a wage tax credit for businesses that employ members of the National Guard and Reserves, retain those who have been deployed or activated, and for those businesses that fully comply with the USERRA (Uniformed Services Employment and Reemployment Rights Act) reemployment requirements.

SUMMARY OF SPECIFIC PROVISIONS: Section 1- Section 210 of the tax law is amended by adding subdivision 48. Employment of New York National Guard and reserve members wage tax credit. A taxpayer shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article, if it employs members of the New York National Guard or reserves. Provided, however, such taxpayer shall comply with Uniformed Services Employment and Reemployment Rights Act, as found in section 4301 et seq. of title 18 United States Code.

Section 2- Subparagraph (B) of paragraph 1 of subsection (i) of section 606 4 of the tax law is amended by adding a new clause (xxxvii).

Section 3- Amount and application of Credit: a wage tax credit for employment of New York National Guard and reserve members of fifteen hundred dollars, and a wage tax credit for employment of New York National Guard and reserve members who have completed a deployment or activation of twenty-five hundred dollars.

Section 4- Effective date.

JUSTIFICATION: To encourage the employment of the men and women who serve our state and nation as National Guard and Army reservists by giving employers a wage tax credit for hiring these individuals. Moreover, this legislation seeks to encourage employers to retain these National Guard and army reservists after a deployment or activation by providing an additional tax credit. Guard and Army Reservists may be called away at any for their routine or extraordinary obligations as members of our armed services which may put them at a disadvantage when seeking employment. These tax credits will help to even the playing field for those who have decided to serve.

PRIOR LEGISLATIVE HISTORY: None

FISCAL IMPLICATIONS: This bill would impact the amount of tax revenue generated annually in New York State beginning in the taxable years on and after January 1, 2016.


Text

STATE OF NEW YORK ________________________________________________________________________ 6796 IN SENATE March 11, 2014 ___________
Introduced by Sen. FARLEY -- 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 creating a wage tax credit for employers who employ New York national guard men and women and reservists 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. EMPLOYMENT OF NEW YORK NATIONAL GUARD AND RESERVE MEMBERS WAGE TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CRED- IT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH (B) OF THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, IF IT EMPLOYS MEMBERS OF THE NEW YORK NATIONAL GUARD AND RESERVES. PROVIDED, HOWEVER, SUCH TAXPAYER SHALL COMPLY WITH THE UNIFORMED SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT, AS FOUND IN SECTION 4301 ET SEQ. OF TITLE 18 OF THE UNITED STATES CODE. (B) AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE IN AN AMOUNT EQUAL TO FIFTEEN HUNDRED DOLLARS FOR EACH NATIONAL GUARD OR RESERVE MEMBER EMPLOYED BY SUCH EMPLOYER AND TWENTY-FIVE HUNDRED DOLLARS FOR EACH NATIONAL GUARD OR RESERVE MEMBER EMPLOYED BY SUCH EMPLOYER WHO HAS COMPLETED OR RETURNED FROM A DEPLOY- MENT OR ACTIVATION. PROVIDED, HOWEVER, THAT NO SUCH CREDIT ALLOWED UNDER THIS SUBDIVISION SHALL EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS FOR EACH NATIONAL GUARD OR RESERVE MEMBER EMPLOYED BY SUCH EMPLOYER. (C) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF THE AMOUNT PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF THIS SECTION. IF, HOWEVER, THE AMOUNT OF CREDITS ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND
EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. 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) EMPLOYMENT OF NEW AMOUNT OF CREDIT YORK NATIONAL GUARD AND UNDER SUBDIVISION RESERVE MEMBERS CREDIT FORTY-EIGHT OF SECTION 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) EMPLOYMENT OF NEW YORK NATIONAL GUARD AND RESERVE MEMBERS WAGE TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CRED- IT, TO BE COMPUTED AS PROVIDED IN PARAGRAPH TWO OF THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE IF THEY EMPLOY MEMBERS OF THE NEW YORK NATIONAL GUARD AND RESERVE. PROVIDED, HOWEVER, THEY SHALL COMPLY WITH THE UNIFORMED SERVICES EMPLOYMENT AND REEMPLOYMENT RIGHTS ACT, AS FOUND IN SECTION 4301 ET SEQ. OF TITLE 18 OF THE UNITED STATES CODE. (2) AMOUNT OF CREDIT. THE CREDIT ALLOWED PURSUANT TO PARAGRAPH ONE OF THIS SUBSECTION SHALL BE IN AN AMOUNT EQUAL TO ONE THOUSAND FIVE HUNDRED DOLLARS FOR EACH NATIONAL GUARD OR RESERVE MEMBER EMPLOYED BY SUCH EMPLOYER AND TWO THOUSAND FIVE HUNDRED DOLLARS FOR EACH NATIONAL GUARD OR RESERVE MEMBER EMPLOYED BY SUCH EMPLOYER WHO HAS COMPLETED OR RETURNED FROM A DEPLOYMENT OR ACTIVATION. PROVIDED, HOWEVER, THAT NO SUCH CREDIT ALLOWED UNDER THIS SUBSECTION SHALL EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS FOR EACH NATIONAL GUARD OR RESERVE MEMBER EMPLOYED BY SUCH EMPLOYER. (3) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. S 4. This act shall take effect immediately and apply to taxable years beginning on and after January 1, 2016.

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