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

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S7439A-2011 Actions

• Jun 4, 2012: PRINT NUMBER 7439B
• Jun 4, 2012: AMEND AND RECOMMIT TO FINANCE
• May 31, 2012: REPORTED AND COMMITTED TO FINANCE
• May 18, 2012: PRINT NUMBER 7439A
• May 18, 2012: AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• May 16, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S7439A-2011 Meetings

Investigations and Government Operations: May 31, 2012

S7439A-2011 Votes

S7439A-2011 Memo

BILL NUMBER:S7439A

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 45 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 a 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
(xxxiv) 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 (uu) 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, 2012.

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:
New bill.

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, 2012.

S7439A-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                   7439--A

                              I N  SENATE

                                May 16, 2012
                                 ___________

  Introduced  by  Sen.  BALL  --  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

  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 45 to read as follows:

    45. 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 THE SUBDIVISION MAY  ONLY  BE  CLAIMED,
  WITH  REGARD  TO  ANY  COMBAT VETERAN, DURING THE FIRST TWO TAX YEARS OF
  SUCH VETERANS' EMPLOYMENT BY THE TAXPAYER.
    (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 PARAGRAPH (D) 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 MAY BE CARRIED OVER TO THE FOLLOWING

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD15869-02-2

 S. 7439--A                          2

  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  (xxxiv)  to  read  as
  follows:

  (XXXIV) CREDIT FOR EMPLOYMENT      AMOUNT OF CREDIT FOR
  OF COMBAT VETERANS UNDER           EMPLOYMENT OF COMBAT
  SUBSECTION (UU)                    VETERANS UNDER SUBDIVISION
                                     FORTY-FIVE OF SECTION
                                     TWO HUNDRED TEN
  S  3.   Section 606 of the tax law is amended by adding a new subsection
  (uu) to read as follows:

    (UU) 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, DURING THE FIRST TWO TAXABLE YEARS OF
  SUCH VETERAN'S EMPLOYMENT BY THE TAXPAYER.
    (4) CARRYOVER. THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION FOR  ANY
  TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
  AMOUNT  PRESCRIBED  IN PARAGRAPH FIVE OF SUBSECTION (O) OF THIS SECTION.
  HOWEVER, IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION 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 4. This act shall take effect immediately and shall apply to taxable
  years commencing on or after January 1, 2012.