STATE OF NEW YORK ________________________________________________________________________ 1555 2023-2024 Regular Sessions IN SENATE January 12, 2023 ___________ Introduced by Sens. ADDABBO, SALAZAR -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Reven- ue 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 21 minimum amount, any amount of credit not deductible in such taxable year EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04249-01-3S. 1555 2 1 may be carried over to the following three years and may be deducted 2 from the taxpayer's tax for such year or years. 3 (d) Definition. As used in this subdivision, the term "disabled 4 person" shall mean a resident of the state who has any physical, mental 5 or medical impairment resulting from anatomical, physiological, genetic 6 or neurological conditions which prevents the exercise of a normal bodi- 7 ly function or is demonstrable by medically accepted clinical or labora- 8 tory diagnostic techniques. 9 (e) Aggregate amount. The aggregate amount of tax credits allowed 10 pursuant to the authority of this subdivision and subsection (ooo) of 11 section six hundred six of this chapter shall be five million dollars 12 each year. Such aggregate amounts of credits shall be allocated by the 13 commissioner. If the total amount of allocated credits applied for in 14 any particular year exceeds the aggregate amount of tax credits allowed 15 for such year under this section, such excess shall be treated as having 16 been applied for on the first day of the subsequent year. 17 (f) Claim of credit. A taxpayer shall not be allowed to claim this 18 credit to the extent the basis of the calculation of this credit has 19 been claimed for another tax credit under this chapter. 20 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 21 of the tax law is amended by adding a new clause (l) to read as follows: 22 (l) Small business tax credit; Amount of credit under 23 disabled persons under subdivision fifty-nine 24 subsection (ooo) of section two hundred 25 ten-B 26 § 3. Section 606 of the tax law is amended by adding a new subsection 27 (ooo) to read as follows: 28 (ooo) Small business tax credit; disabled persons. (1) General. A 29 taxpayer who has one hundred employees or less, shall be allowed a cred- 30 it, to be computed as provided in this subsection, against the tax 31 imposed by this article for each disabled person hired during a taxable 32 year, provided that such disabled person is employed for thirty-five 33 hours or more per week, remains in the employ of such taxpayer for six 34 months or more and the employer submits verification that the claimed 35 employees have met the statutory definition of "disabled person" pursu- 36 ant to paragraph four of this subsection. 37 (2) Amount of credit. A credit authorized by this section shall equal 38 five thousand dollars per hired disabled person but shall not exceed 39 twenty-five thousand dollars. 40 (3) Carryovers. The credit allowed under this subdivision for any 41 taxable year shall not reduce the tax due for such year to less than the 42 amount prescribed in paragraph (d) of subdivision one of section two 43 hundred ten of this chapter. However, if the amount of credit allowable 44 under this subdivision for any taxable year reduces the tax to such 45 amount or if the taxpayer otherwise pays tax based on the fixed dollar 46 minimum amount, any amount of credit not deductible in such taxable year 47 may be carried over to the following three years and may be deducted 48 from the taxpayer's tax for such year or years. 49 (4) Definition. As used in this subsection, the term "disabled person" 50 shall mean a resident of the state who has any physical, mental or 51 medical impairment resulting from anatomical, physiological, genetic or 52 neurological conditions which prevents the exercise of a normal bodily 53 function or is demonstrable by medically accepted clinical or laboratory 54 diagnostic techniques. 55 (5) Aggregate amount. The aggregate amount of tax credits allowed 56 pursuant to the authority of this subsection and subdivision fifty-nineS. 1555 3 1 of section two hundred ten-B of this chapter shall be five million 2 dollars each year. Such aggregate amounts of credits shall be allocated 3 by the commissioner. If the total amount of allocated credits applied 4 for in any particular year exceeds the aggregate amount of tax credits 5 allowed for such year under this section, such excess shall be treated 6 as having been applied for on the first day of the subsequent year. 7 (6) Claim of credit. A taxpayer shall not be allowed to claim this 8 credit to the extent the basis of the calculation of this credit has 9 been claimed for another tax credit under this chapter. 10 § 4. The labor law is amended by adding a new section 25-d to read as 11 follows: 12 § 25-d. Power to administer the small business tax credit for disabled 13 persons tax credit program. (a) The commissioner is authorized to estab- 14 lish and administer the small business tax credit for disabled persons 15 to provide tax incentives to small business employers for employing 16 individuals with disabilities. The commissioner is authorized to allo- 17 cate up to five million dollars of tax credits annually. 18 (b) Definitions. (1) The term "qualified employer" means an employer 19 that has been certified by the commissioner to participate in the small 20 business tax credit for disabled persons tax credit program and that 21 employs one or more qualified employees. 22 (2) The term "qualified employee" means an individual: 23 (i) who has any physical, mental or medical impairment resulting from 24 anatomical, physiological, genetic or neurological conditions which 25 prevents the exercise of a normal bodily function or is demonstrable by 26 medically accepted clinical or laboratory diagnostic techniques; 27 (ii) who has worked for the qualified employer in a full-time or part- 28 time position that pays wages that are equivalent to the wages paid for 29 similar jobs, with appropriate adjustments for experience and training, 30 and for which no other employee has been terminated, or where the 31 employer has not otherwise reduced its workforce by involuntary termi- 32 nations with the intention of filling the vacancy by creating a new 33 hire; 34 (iii) who has not worked for an entity related to the qualified 35 employer in the past twenty-four months; and 36 (iv) is employed in New York at a location in New York state. 37 (c) A qualified employer shall be entitled to a tax credit. The tax 38 credits shall be claimed by the qualified employer as specified in 39 subdivision fifty-nine of section two hundred ten-B and subsection (ooo) 40 of section six hundred six of the tax law. 41 (d) To participate in the small business tax credit for disabled 42 persons tax credit program, an employer must submit an application (in a 43 form prescribed by the commissioner) to the commissioner. The commis- 44 sioner shall establish guidelines that specify requirements for employ- 45 ers to participate in the program including criteria for certifying 46 qualified employees. Any regulations that the commissioner determines 47 are necessary may be adopted on an emergency basis notwithstanding 48 anything to the contrary in section two hundred two of the state admin- 49 istrative procedure act. Such requirements may include the types of 50 industries that the employers are engaged in. 51 (e) If, after reviewing the application submitted by an employer, the 52 commissioner determines that such employer is eligible to participate in 53 the small business tax credit for disabled persons tax credit program, 54 the commissioner shall issue the employer a preliminary certificate of 55 eligibility that establishes the employer as a qualified employer. The 56 certificate of eligibility shall specify the maximum amount of smallS. 1555 4 1 business tax credit for disabled persons that the employer will be 2 allowed to claim. At the end of the taxable year, a qualified employer 3 must obtain a final certificate of eligibility from the commissioner to 4 file with a return claiming the credit. The final certificate must 5 contain the certificate's taxable year to which the credit applies, the 6 maximum amount of the credit allowed, the qualified employer's name and 7 employer identification number, the employer's business address where 8 the claimed employees were employed, the social security numbers of 9 claimed employees and their hire and termination dates, verification 10 that the claimed employees have met the statutory definition of "quali- 11 fied employee", and each employee's total hours worked each quarter, 12 hourly wage, and full-time or part-time status. 13 § 5. This act shall take effect immediately and shall apply to taxable 14 years beginning on or after January 1, 2025 and shall expire and be 15 deemed repealed December 31, 2030.