Bill Text: NY A02461 | 2019-2020 | General Assembly | Introduced

---

Bill Title: Relates to establishing a job creation tax credit; provides that the amount of the credit shall be six percent of the total amount of wages paid to the qualified employee during the employee's first six months of employment and if the qualified employee was receiving unemployment insurance benefits at the time of hire for a minimum of thirteen weeks or is employed directly in the manufacturing process in an eligible industry, the amount of the credit shall be twelve percent of the total amount of wages paid to the qualified employee during the employee's first six months of employment; caps the credit at $750 for any qualified employee and $1500 for any qualified employee who was receiving unemployment insurance benefits at the time of hire for a minimum of thirteen weeks or who is employed directly in the manufacturing process in an eligible industry.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A02461 Detail]

Download: New_York-2019-A02461-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                          2461
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 22, 2019
                                       ___________
        Introduced  by  M. of A. FAHY -- read once and referred to the Committee
          on Ways and Means
        AN ACT to amend the tax law, in relation to establishing a job  creation
          tax credit
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The tax law is amended by adding a new section 44  to  read
     2  as follows:
     3    §  44.  Job creation tax credit. (a) Allowance of credit.  For taxable
     4  years beginning on or  after  January  first,  two  thousand  twenty,  a
     5  taxpayer subject to tax under article nine-A or twenty-two of this chap-
     6  ter  shall  be  allowed  a  credit,  to  be computed as provided in this
     7  section, against the tax imposed by this article, for each net  new  job
     8  created,  for each qualified employee within the state. The taxpayer may
     9  claim the credit in the year in which the qualified  employee  completes
    10  six  months of employment. A taxpayer may only claim the credit once for
    11  each qualified employee and may only claim a tax credit for a maximum of
    12  thirty qualified employees in each taxable year. If the taxpayer  claims
    13  the  credit  allowed  under  this  section, the taxpayer may not use the
    14  hiring of a qualified employee that is the basis for this credit in  the
    15  basis of any other credit allowed under this article.
    16    (b)  Qualified  employee.  A  qualified  employee is an individual who
    17  commences employment by the  qualified  taxpayer  on  or  after  January
    18  first, two thousand twenty.
    19    (c)  Net  new job. "Net new job" means jobs created in this state that
    20  (1) are new to the state, (2) have not been transferred from  employment
    21  with another business that is a related person, (3) are either full-time
    22  wage-paying  jobs or equivalent to a full-time wage-paying job requiring
    23  at least thirty-five hours per week, and (4) are filled  for  more  than
    24  six months.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02309-01-9
        A. 2461                             2
     1    (d)  Employer prohibition. An employer shall not discharge an employee
     2  and hire a qualifying employee solely for the purpose of qualifying  for
     3  this credit.
     4    (e) Amount of credit. The amount of the credit shall be six percent of
     5  the  total  amount  of  wages  paid to the qualified employee during the
     6  employee's first six months of employment. Provided, however,  that,  if
     7  the  qualified employee was receiving unemployment insurance benefits at
     8  the time of hire for a minimum of thirteen weeks or is employed directly
     9  in the manufacturing process in an eligible industry, the amount of  the
    10  credit  shall be twelve percent of the total amount of wages paid to the
    11  qualified employee during the employee's first six months of employment.
    12  The credit allowed pursuant to this subdivision shall not exceed in  any
    13  taxable year, seven hundred fifty dollars for any qualified employee and
    14  one  thousand  five  hundred  dollars for any qualified employee who was
    15  receiving unemployment insurance benefits at the  time  of  hire  for  a
    16  minimum of thirteen weeks or who is employed directly in the manufactur-
    17  ing process in an eligible industry.
    18    (f)  Eligible industry. An eligible industry is a business principally
    19  engaged in the production of goods by manufacturing, processing,  assem-
    20  bling, refining, mining, extracting, farming, agriculture, horticulture,
    21  floriculture, viticulture or commercial fishing.
    22    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
    23  sion 53 to read as follows:
    24    53. Job creation tax credit. (a) Allowance of credit. A taxpayer  will
    25  be allowed a credit, to be computed as provided in section forty-four of
    26  this chapter, against the tax imposed by this article.
    27    (b)  Application  of credit. The credit allowed under this subdivision
    28  for any taxable year may not reduce the tax due for such  year  to  less
    29  than  the  higher of the amounts prescribed in paragraph (d) of subdivi-
    30  sion one of section two hundred ten of this  article.  However,  if  the
    31  amount  of  credit  allowed  under this subdivision for any taxable year
    32  reduces the tax to such amount, any amount of credit thus not deductible
    33  in such taxable year will be treated as an  overpayment  of  tax  to  be
    34  credited  or  refunded  in accordance with the provisions of section one
    35  thousand eighty-six of this chapter. Provided, however,  the  provisions
    36  of  subsection  (c) of section one thousand eighty-eight of this chapter
    37  notwithstanding, no interest will be paid thereon.
    38    § 3. Section 606 of the tax law is amended by adding a new  subsection
    39  (jjj) to read as follows:
    40    (jjj)  Job creation tax credit. (1) A taxpayer will be allowed a cred-
    41  it, to the extent allowed under  section  forty-four  of  this  chapter,
    42  against the tax imposed by this article.
    43    (2)  If the amount of the credit allowed under this subsection for any
    44  taxable year exceeds the taxpayer's tax for such year, the  excess  will
    45  be  treated  as  an  overpayment  of  tax  to be credited or refunded in
    46  accordance with the provisions of section six hundred eighty-six of this
    47  article, provided, however, that no interest will be paid thereon.
    48    § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    49  of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
    50  follows:
    51  (xliv) Job creation tax credit          Amount of credit under
    52  under subsection (jjj)                  subdivision fifty-three of section
    53                                          two hundred ten-B
    54    § 5. This act shall take effect immediately and shall apply to taxable
    55  years beginning on or after January 1, 2020.