Creates the telecommunication and cable industry New York jobs tax credit.
TITLE OF BILL: An act to amend the tax law, in relation to creating a telecommunication and cable industry New York jobs tax credit
PURPOSE OF BILL: The purpose of this bill is to incentivize companies to create and expand their call centers in New York State or to relocate their call centers into New York.
SUMMARY OF PROVISIONS: Section One amends the tax law to create a telecommunications and cable industry, defines "eligible tax payer", "call center assistance job", qualified wages", "new employee", "base year", "base employment", and "credit employment".
Sections Two and Three amend the tax law by adding the cross-referenced provisions relating to the corporation tax and franchise tax on business corporations.
Section Four is the effective date.
JUSTIFICATION: In an effort to combat unemployment in New York State, this bill offers a tax incentive to companies who invest in New York jobs. This measure gives companies throughout the state an incentive to support New York's workforce.
Over the past four years, the United States has lost at least 500,000 call center jobs as businesses have opted to relocate out of state. In addition to limiting employment opportunities for struggling families, the use of foreign call centers present a number of security concerns with respect to protecting New Yorkers' personal confidential information.
FISCAL IMPLICATIONS: To be determined.
PRIOR LEGISLATIVE HISTORY: New Bill.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2012.
STATE OF NEW YORK ________________________________________________________________________ 7772 IN SENATE June 18, 2012 ___________Introduced by Sen. ZELDIN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the tax law, in relation to creating a telecommunication and cable industry New York jobs tax credit THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The tax law is amended by adding a new section 37 to read as follows: S 37. TELECOMMUNICATION AND CABLE INDUSTRY NEW YORK JOBS TAX CREDIT. (A) ALLOWANCE OF CREDIT. AN ELIGIBLE TAXPAYER SHALL BE ALLOWED A CREDIT, OF TWENTY PERCENT OF THE QUALIFIED WAGES. THE TAXPAYER MAY CLAIM THIS CREDIT FOR EACH NEW EMPLOYEE FOR A PERIOD OF THREE CONSECUTIVE YEARS OF EMPLOYMENT. (B) DEFINITIONS. (1) "ELIGIBLE TAXPAYER" MEANS EVERY TELECOMMUNICATION AND CABLE CORPORATION AND THEIR SUBSIDIARIES FURNISHING TRADITIONAL LANDLINE TELEPHONE SERVICE, FIBER OPTIC SERVICE, VOICE OVER INTERNET PROTOCOL (VOIP), DATA CIRCUITS, CABLE OR INTERNET SERVICES. (2) "CALL CENTER ASSISTANCE JOB" SHALL MEAN THE CREATION OF OR RELO- CATION OF NEW CALL CENTER SERVICE ASSISTANCE JOBS IN NEW YORK STATE INCLUDING, BUT NOT LIMITED TO OPERATOR SERVICES, DIRECTORY ASSISTANCE BUREAUS AND CALL COMPLETION SERVICES FOR THE FOLLOWING: (A) DETERMINING CUSTOMER FINANCIAL RESPONSIBILITY; (B) TAKING REQUESTS FOR NEW OR ADDITIONAL SERVICES, INCLUDING, BUT NOT LIMITED TO, EMERGENCY SERVICE, COMPLETING ASSISTANCE WITH DIALING, USING CALLING CARDS, CONNECTING COLLECT CALLS, BUSY LINE VERIFICATION OR RELAY CENTERS FOR THE HEARING IMPAIRED, PROVIDING REQUESTED LOCAL AND NATIONAL TELEPHONE NUMBERS, REVERSE NUMBER SEARCHES AND TAKING REQUESTS FOR AND COMPLETING THE PUBLISHING AND NON-PUBLISHING OF A TELEPHONE NUMBER, AND PROVIDING ASSISTANCE TO PAYPHONE CUSTOMERS; (C) DETERMINING DEPOSIT REQUIRED OR BILLING RATE; (D) PREPARING INSTALLATION AND REPAIR SERVICE ORDERS AND OBTAINING ACCESS TO SUBSCRIBER'S PREMISES; (E) EXPLAINING COMPANY RATES, REGULATIONS, POLICIES, PROCEDURES, EQUIPMENT AND COMMON PRACTICES;EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD16242-06-2 S. 7772 2
(F) INVESTIGATING TROUBLE ORDER FORMS AND INITIATING HIGH BILL INVES- TIGATIONS; (G) HANDLING PAYMENT AND OTHER CREDIT ARRANGEMENTS SUCH AS OBTAINING DEPOSITS, FINANCIAL STATEMENTS AND PAYMENT PLANS; AND (H) AIDING CUSTOMERS WITH INTERNAL ASSISTANCE PROGRAMS MEANS ANY COMPANY, FIRM OR BUSINESS ORGANIZATION THAT INVESTS APPLICATION OF CRED- IT; PROVIDED THAT THE AMOUNT OF GROSS WAGES PAID BY THE TAXPAYER TO THE EMPLOYEES FOR WHOM CREDIT IS ALLOWABLE UNDER THIS SECTION. (3) "QUALIFIED WAGES" SHALL MEAN GROSS WAGES PAID TO ANY NEW EMPLOYEE DURING THE TAXABLE YEAR WHICH MEETS THE DEFINITION OF A CALL CENTER ASSISTANCE JOB. (4) "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT IS HIRED BY THE TAXPAYER AFTER JULY FIRST, TWO THOUSAND TWELVE THAT CAUSES THE TOTAL NUMBER OF EMPLOYEES TO INCREASE ABOVE BASE EMPLOYMENT OR CREDIT EMPLOY- MENT, WHICHEVER IS HIGHER, WHO IS DOING THE SAME OR SUBSTANTIALLY SIMI- LAR WORK, AND AT THE PAY RATE AND BENEFIT LEVEL OF OTHER CALL CENTER SERVICE ASSISTANCE JOBS IN THE GEOGRAPHIC AREA WITHIN NEW YORK STATE, IN THE CORPORATION AND THEIR SUBSIDIARIES. (5) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND ELEVEN. (6) "BASE EMPLOYMENT" SHALL MEAN THE AVERAGE NUMBER OF FULL TIME EMPLOYEES OR FULL TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR A NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO. (7) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED FOR THE PRIOR TAX YEARS. (C) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED IN THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER: (1) ARTICLE 9: SECTION 187-S (2) ARTICLE 9-A: SECTION 210: SUBDIVISION 45 S 2. Section 210 of the tax law is amended by adding a new subdivision 45 to read as follows: 45. TELECOMMUNICATION AND CABLE INDUSTRY NEW YORK JOBS TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WILL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE. (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF THIS SECTION. HOWEVER, IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY EXCESS AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, FOR A MAXIMUM OF TEN CONSECUTIVE YEARS. S 3. The tax law is amended by adding a new section 187-s to read as follows: S 187-S. TELECOMMUNICATION AND CABLE INDUSTRY NEW YORK JOBS TAX CRED- IT. 1. ALLOWANCE OF CREDIT. A TAXPAYER, SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE, WHICH IS A TELECOMMUNICATION OR CABLE COMPANY SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY SECTION ONE HUNDRED EIGHTY-SIX-A OF THIS ARTICLE. 2. APPLICATION OF CREDIT. IF THE AMOUNT OF CREDIT ALLOWED UNDER THIS SECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH YEAR, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE MAY BE CARRIED FORWARD TO THE FOLLOWING YEAR OR YEARS, FOR A MAXIMUM OF TEN CONSECUTIVE YEARS. S 4. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2012.