Bill Text: NY A09049 | 2019-2020 | General Assembly | Introduced
Bill Title: Establishes a first permanent payroll employee tax credit which allows a business to receive a tax credit for the three years following the employment of such business' first permanent payroll employee where such credit equals a portion of the amount it costs to employ such permanent payroll employee.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-10 - referred to ways and means [A09049 Detail]
Download: New_York-2019-A09049-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 9049 IN ASSEMBLY January 10, 2020 ___________ Introduced by M. of A. GOODELL -- read once and referred to the Commit- tee on Ways and Means AN ACT to amend the tax law, in relation to establishing a first perma- nent payroll employee tax credit 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 54 to read as follows: 3 54. First permanent payroll employee credit. (a) General. A taxpayer 4 shall be allowed a credit, to be computed as provided in this subdivi- 5 sion, against the tax imposed by this article for the first full-time, 6 permanent employee such taxpayer employs, provided that such full-time, 7 permanent employee is accounted for on such taxpayer's employer payroll 8 records. Such credit shall be available for each of the three years 9 succeeding the date a taxpayer employs their first full-time, permanent 10 employee. 11 (b) Amount of credit. A credit authorized by this subdivision shall be 12 equal to: 13 (1) in the first year, twenty-five percent of the total cost to employ 14 a full-time, permanent employee, when such employee is accounted for on 15 an employer's payroll records and is the first full-time, permanent 16 employee such taxpayer has hired; 17 (2) in the second year, twenty percent of the total cost to employ a 18 full-time, permanent employee, when such employee is accounted for on an 19 employer's payroll records and is the first full-time, permanent employ- 20 ee such taxpayer has hired; and 21 (3) in the third year, ten percent of the total cost to employ a full- 22 time, permanent employee, when such employee is accounted for on an 23 employer's payroll records and is the first full-time, permanent employ- 24 ee such taxpayer has hired. 25 (c) Carryovers. The credit allowed under this subdivision may be 26 claimed and if not fully used in the initial year for which the credit 27 is claimed may be carried over, in order, to each of the two succeeding EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD14423-03-9A. 9049 2 1 taxable years. The credit authorized by this subdivision may not be used 2 to reduce the tax liability of the credit claimant below zero. 3 (d) Definitions. For purposes of this subdivision, the following terms 4 shall have the following meanings: 5 (1) "Total cost to employ" shall mean base salary, New York state 6 payroll taxes and the value of employment benefits received. 7 (2) "New York state payroll taxes" shall mean all state taxes paid by 8 an employer from such employer's own funds and directly related to 9 employing an employee. 10 (e) Aggregate amount. The aggregate amount of tax credits allowed 11 pursuant to the authority of this subdivision and subsection (kkk) of 12 section six hundred six of this chapter shall be fifteen 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. (1) Taxpayers shall be eligible to claim such 19 credit beginning in the first taxable year after such taxpayer has 20 employed their first full-time, permanent employee, as verified on such 21 taxpayer's payroll records. 22 (2) A taxpayer shall not be allowed to claim this credit to the extent 23 the basis of the calculation of this credit has been claimed for another 24 tax credit under this chapter. 25 § 2. Section 606 of the tax law is amended by adding a new subsection 26 (kkk) to read as follows: 27 (kkk) First permanent payroll employee credit. (1) General. A taxpayer 28 shall be allowed a credit, to be computed as provided in this 29 subsection, against the tax imposed by this article for the first full- 30 time, permanent employee such taxpayer employs, provided that such full- 31 time, permanent employee is accounted for on such taxpayer's employer 32 payroll records. Such credit shall be available for each of the three 33 years succeeding the date a taxpayer employs their first full-time, 34 permanent employee. 35 (2) Amount of credit. A credit authorized by this subsection shall be 36 equal to: 37 (A) in the first year, twenty-five percent of the total cost to employ 38 a full-time, permanent employee, when such employee is accounted for on 39 an employer's payroll records and is the first full-time, permanent 40 employee such taxpayer has hired; 41 (B) in the second year, twenty percent of the total cost to employ a 42 full-time, permanent employee, when such employee is accounted for on an 43 employer's payroll records and is the first full-time, permanent employ- 44 ee such taxpayer has hired; and 45 (C) in the third year, ten percent of the total cost to employ a full- 46 time, permanent employee, when such employee is accounted for on an 47 employer's payroll records and is the first full-time, permanent employ- 48 ee such taxpayer has hired. 49 (3) Carryovers. The credit allowed under this subsection may be 50 claimed and if not fully used in the initial year for which the credit 51 is claimed may be carried over, in order, to each of the two succeeding 52 taxable years. The credit authorized by this subsection may not be used 53 to reduce the tax liability of the credit claimant below zero. 54 (4) Definitions. For purposes of this subsection, the following terms 55 shall have the following meanings:A. 9049 3 1 (A) "Total cost to employ" shall mean base salary, New York state 2 payroll taxes and the value of employment benefits received. 3 (B) "New York state payroll taxes" shall mean all state taxes paid by 4 an employer from such employer's own funds and directly related to 5 employing an employee. 6 (5) Aggregate amount. The aggregate amount of tax credits allowed 7 pursuant to the authority of this subsection and subdivision fifty-four 8 of section two hundred ten-B of this chapter shall be fifteen million 9 dollars each year. Such aggregate amounts of credits shall be allocated 10 by the commissioner. If the total amount of allocated credits applied 11 for in any particular year exceeds the aggregate amount of tax credits 12 allowed for such year under this section, such excess shall be treated 13 as having been applied for on the first day of the subsequent year. 14 (6) Claim of credit. (A) Taxpayers shall be eligible to claim such 15 credit beginning in the first taxable year after such taxpayer has 16 employed their first full-time, permanent employee, as verified on such 17 taxpayer's payroll records. 18 (B) A taxpayer shall not be allowed to claim this credit to the extent 19 the basis of the calculation of this credit has been claimed for another 20 tax credit under this chapter. 21 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 22 of the tax law is amended by adding a new clause (xlv) to read as 23 follows: 24 (xlv) First permanent payroll Amount of credit under subdivision 25 employee credit under subsection fifty-four of section two hundred 26 (kkk) ten-B 27 § 4. This act shall take effect immediately and shall apply to taxable 28 years commencing on and after January 1, 2020.
