Changes the definition of "employment number" with respect to empire zones to include employees of contract operators.
TITLE OF BILL: An act to amend the tax law, in relation to the definition of employment number with respect to the empire zones program to allow for the eligibility of employees of contract operators
PURPOSE OR GENERAL IDEA OF BILL: To change the definition of "employment number" with respect to empire zones to include employees of contract operators.
SUMMARY OF SPECIFIC PROVISIONS: Section one amends the tax law, in relation to the definition of employment number with respect to the empire zones program to allow for the eligibility of employees of contract operators.
Section two sets the enacting date.
JUSTIFICATION: This legislation proposes changes to the Empire Zone program to better account for the true employment benefit certain projects bring to empire zones, recognizing the employees of contract operators in the calculation of the employment number.
Certain businesses located within Empire Zones maintain an increase in employment number, in accordance with Empire Zone program requirements. However, they actually create more full time jobs in the Empire Zone than they receive credit for in the calculation of the employment number through employment of a contract operators.
These jobs would not exist but for the businesses facility located within the Empire Zone. This legislation would simply allow such employees to count in the calculation of employment number, thereby fully recognizing the increase in jobs caused by the business in the Empire Zone.
PRIOR LEGISLATIVE HISTORY: S.7445 (2012)
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2013.
STATE OF NEW YORK ________________________________________________________________________ 984 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. MARTINS -- 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 the definition of employment number with respect to the empire zones program to allow for the eligibility of employees of contract operators THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph 1 of subdivision (g) of section 14 of the tax law, as amended by section 1 of part Z-1 of chapter 109 of the laws of 2006, is amended to read as follows: (1) The term "employment number" shall mean the average number of individuals, excluding general executive officers (in the case of a corporation), employed full-time by the enterprise for at least one-half of the taxable year. Such number shall be computed by determining the number of such individuals employed by the taxpayer on the thirty-first day of March, the thirtieth day of June, the thirtieth day of September and the thirty-first day of December during the applicable taxable year, adding together the number of such individuals determined to be so employed on each of such dates and dividing the sum so obtained by the number of such dates occurring within such applicable taxable year. Such number shall not include individuals employed within the state within the immediately preceding sixty months by a related person to the QEZE, as such term "related person" is defined in subparagraph (c) of para- graph three of subsection (b) of section four hundred sixty-five of the internal revenue code. For this purpose, a "related person" shall include an entity which would have qualified as a "related person" to the QEZE if it had not been dissolved, liquidated, merged with another entity or otherwise ceased to exist or operate. PROVIDED, HOWEVER, SUCH NUMBER MAY INCLUDE INDIVIDUALS EMPLOYED FULL-TIME OR AS FULL-TIME EQUIV-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04579-01-3 S. 984 2
ALENTS BY A BUSINESS ENTITY OTHER THAN THE QEZE, PROVIDED, (I) SUCH INDIVIDUALS WORK FULL-TIME OR ARE FULL-TIME EQUIVALENTS AT THE QEZE'S EMPIRE ZONE LOCATION PURSUANT TO A WRITTEN AGREEMENT ENTERED INTO FOR MANAGEMENT AND/OR OPERATIONAL SERVICES BETWEEN THE QEZE AND THE BUSINESS ENTITY WHICH EMPLOYS SUCH INDIVIDUALS, (II) THE BUSINESS ENTITY WHICH EMPLOYS SUCH INDIVIDUALS IS NOT CERTIFIED UNDER ARTICLE EIGHTEEN-B OF THE GENERAL MUNICIPAL LAW WITHIN SUCH ZONE, AND (III) ALL OTHER REQUIRE- MENTS OF THIS PARAGRAPH REGARDING SUCH INDIVIDUALS ARE SATISFIED. S 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2013.