Bill Text: NY A04733 | 2023-2024 | General Assembly | Introduced
Bill Title: Establishes a small business tax credit for the employment of disabled persons.
Spectrum: Moderate Partisan Bill (Democrat 19-5)
Status: (Introduced - Dead) 2024-01-03 - referred to ways and means [A04733 Detail]
Download: New_York-2023-A04733-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4733 2023-2024 Regular Sessions IN ASSEMBLY February 23, 2023 ___________ Introduced by M. of A. RAJKUMAR, LUPARDO, BLANKENBUSH, COLTON, WEPRIN, STERN, WALSH, HUNTER, BUTTENSCHON, OTIS, SANTABARBARA, REILLY, SEAWRIGHT, FALL, PALMESANO, STIRPE, MANKTELOW, GONZALEZ-ROJAS, JACOB- SON, MEEKS, SAYEGH -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law and the labor law, in relation to establish- ing a small business tax credit for the employment of disabled persons; and providing for the repeal of such provisions upon expira- tion thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 59 to read as follows: 3 59. Small business tax credit; disabled persons. (a) General. A 4 taxpayer who has one hundred employees or less, shall be allowed a cred- 5 it, to be computed as provided in this subdivision, against the tax 6 imposed by this article for each disabled person hired during a taxable 7 year, provided that such disabled person is employed for thirty-five 8 hours or more per week, remains in the employ of such taxpayer for six 9 months or more and the employer submits verification that the claimed 10 employees meet the statutory definition of "disabled person" pursuant to 11 paragraph (d) of this subdivision. 12 (b) Amount of credit. A credit authorized by this section shall equal 13 five thousand dollars per hired disabled person but shall not exceed 14 twenty-five thousand dollars. 15 (c) Carryovers. The credit allowed under this subdivision for any 16 taxable year shall not reduce the tax due for such year to less than the 17 amount prescribed in paragraph (d) of subdivision one of section two 18 hundred ten of this article. However, if the amount of credit allowable 19 under this subdivision for any taxable year reduces the tax to such 20 amount or if the taxpayer otherwise pays tax based on the fixed dollar EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04249-01-3A. 4733 2 1 minimum amount, any amount of credit not deductible in such taxable year 2 may be carried over to the following three years and may be deducted 3 from the taxpayer's tax for such year or years. 4 (d) Definition. As used in this subdivision, the term "disabled 5 person" shall mean a resident of the state who has any physical, mental 6 or medical impairment resulting from anatomical, physiological, genetic 7 or neurological conditions which prevents the exercise of a normal bodi- 8 ly function or is demonstrable by medically accepted clinical or labora- 9 tory diagnostic techniques. 10 (e) Aggregate amount. The aggregate amount of tax credits allowed 11 pursuant to the authority of this subdivision and subsection (ooo) of 12 section six hundred six of this chapter shall be five million dollars 13 each year. Such aggregate amounts of credits shall be allocated by the 14 commissioner. If the total amount of allocated credits applied for in 15 any particular year exceeds the aggregate amount of tax credits allowed 16 for such year under this section, such excess shall be treated as having 17 been applied for on the first day of the subsequent year. 18 (f) Claim of credit. A taxpayer shall not be allowed to claim this 19 credit to the extent the basis of the calculation of this credit has 20 been claimed for another tax credit under this chapter. 21 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 22 of the tax law is amended by adding a new clause (l) to read as follows: 23 (l) Small business tax credit; Amount of credit under 24 disabled persons under subdivision fifty-nine 25 subsection (ooo) of section two hundred 26 ten-B 27 § 3. Section 606 of the tax law is amended by adding a new subsection 28 (ooo) to read as follows: 29 (ooo) Small business tax credit; disabled persons. (1) General. A 30 taxpayer who has one hundred employees or less, shall be allowed a cred- 31 it, to be computed as provided in this subsection, against the tax 32 imposed by this article for each disabled person hired during a taxable 33 year, provided that such disabled person is employed for thirty-five 34 hours or more per week, remains in the employ of such taxpayer for six 35 months or more and the employer submits verification that the claimed 36 employees have met the statutory definition of "disabled person" pursu- 37 ant to paragraph four of this subsection. 38 (2) Amount of credit. A credit authorized by this section shall equal 39 five thousand dollars per hired disabled person but shall not exceed 40 twenty-five thousand dollars. 41 (3) Carryovers. The credit allowed under this subdivision for any 42 taxable year shall not reduce the tax due for such year to less than the 43 amount prescribed in paragraph (d) of subdivision one of section two 44 hundred ten of this chapter. However, if the amount of credit allowable 45 under this subdivision for any taxable year reduces the tax to such 46 amount or if the taxpayer otherwise pays tax based on the fixed dollar 47 minimum amount, any amount of credit not deductible in such taxable year 48 may be carried over to the following three years and may be deducted 49 from the taxpayer's tax for such year or years. 50 (4) Definition. As used in this subsection, the term "disabled person" 51 shall mean a resident of the state who has any physical, mental or 52 medical impairment resulting from anatomical, physiological, genetic or 53 neurological conditions which prevents the exercise of a normal bodily 54 function or is demonstrable by medically accepted clinical or laboratory 55 diagnostic techniques.A. 4733 3 1 (5) Aggregate amount. The aggregate amount of tax credits allowed 2 pursuant to the authority of this subsection and subdivision fifty-nine 3 of section two hundred ten-B of this chapter shall be five million 4 dollars each year. Such aggregate amounts of credits shall be allocated 5 by the commissioner. If the total amount of allocated credits applied 6 for in any particular year exceeds the aggregate amount of tax credits 7 allowed for such year under this section, such excess shall be treated 8 as having been applied for on the first day of the subsequent year. 9 (6) Claim of credit. A taxpayer shall not be allowed to claim this 10 credit to the extent the basis of the calculation of this credit has 11 been claimed for another tax credit under this chapter. 12 § 4. The labor law is amended by adding a new section 25-d to read as 13 follows: 14 § 25-d. Power to administer the small business tax credit for disabled 15 persons tax credit program. (a) The commissioner is authorized to estab- 16 lish and administer the small business tax credit for disabled persons 17 to provide tax incentives to small business employers for employing 18 individuals with disabilities. The commissioner is authorized to allo- 19 cate up to five million dollars of tax credits annually. 20 (b) Definitions. (1) The term "qualified employer" means an employer 21 that has been certified by the commissioner to participate in the small 22 business tax credit for disabled persons tax credit program and that 23 employs one or more qualified employees. 24 (2) The term "qualified employee" means an individual: 25 (i) who has any physical, mental or medical impairment resulting from 26 anatomical, physiological, genetic or neurological conditions which 27 prevents the exercise of a normal bodily function or is demonstrable by 28 medically accepted clinical or laboratory diagnostic techniques; 29 (ii) who has worked for the qualified employer in a full-time or part- 30 time position that pays wages that are equivalent to the wages paid for 31 similar jobs, with appropriate adjustments for experience and training, 32 and for which no other employee has been terminated, or where the 33 employer has not otherwise reduced its workforce by involuntary termi- 34 nations with the intention of filling the vacancy by creating a new 35 hire; 36 (iii) who has not worked for an entity related to the qualified 37 employer in the past twenty-four months; and 38 (iv) is employed in New York at a location in New York state. 39 (c) A qualified employer shall be entitled to a tax credit. The tax 40 credits shall be claimed by the qualified employer as specified in 41 subdivision fifty-nine of section two hundred ten-B and subsection (ooo) 42 of section six hundred six of the tax law. 43 (d) To participate in the small business tax credit for disabled 44 persons tax credit program, an employer must submit an application (in a 45 form prescribed by the commissioner) to the commissioner. The commis- 46 sioner shall establish guidelines that specify requirements for employ- 47 ers to participate in the program including criteria for certifying 48 qualified employees. Any regulations that the commissioner determines 49 are necessary may be adopted on an emergency basis notwithstanding 50 anything to the contrary in section two hundred two of the state admin- 51 istrative procedure act. Such requirements may include the types of 52 industries that the employers are engaged in. 53 (e) If, after reviewing the application submitted by an employer, the 54 commissioner determines that such employer is eligible to participate in 55 the small business tax credit for disabled persons tax credit program, 56 the commissioner shall issue the employer a preliminary certificate ofA. 4733 4 1 eligibility that establishes the employer as a qualified employer. The 2 certificate of eligibility shall specify the maximum amount of small 3 business tax credit for disabled persons that the employer will be 4 allowed to claim. At the end of the taxable year, a qualified employer 5 must obtain a final certificate of eligibility from the commissioner to 6 file with a return claiming the credit. The final certificate must 7 contain the certificate's taxable year to which the credit applies, the 8 maximum amount of the credit allowed, the qualified employer's name and 9 employer identification number, the employer's business address where 10 the claimed employees were employed, the social security numbers of 11 claimed employees and their hire and termination dates, verification 12 that the claimed employees have met the statutory definition of "quali- 13 fied employee", and each employee's total hours worked each quarter, 14 hourly wage, and full-time or part-time status. 15 § 5. This act shall take effect immediately and shall apply to taxable 16 years beginning on or after January 1, 2025 and shall expire and be 17 deemed repealed December 31, 2030.
