S T A T E O F N E W Y O R K
________________________________________________________________________
3999
2011-2012 Regular Sessions
I N S E N A T E
March 11, 2011
___________
Introduced by Sens. RANZENHOFER, DeFRANCISCO, GRISANTI, JOHNSON,
MAZIARZ, SALAND -- read twice and ordered printed, and when printed to
be committed to the Committee on Investigations and Government Oper-
ations
AN ACT to amend the tax law, in relation to a jobs development incentive
income tax credit available to employers who employ individuals previ-
ously receiving unemployment benefits
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 210 of the tax law is amended by adding a new
2 subdivision 43 to read as follows:
3 43. JOBS DEVELOPMENT INCENTIVE TAX CREDIT. (A) A TAXPAYER SHALL BE
4 ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
5 TAX IMPOSED BY THIS ARTICLE IN THE AMOUNT PRESCRIBED BY THIS SUBDIVISION
6 WHERE SUCH TAXPAYER EMPLOYS ONE OR MORE CREDITABLE EMPLOYEE.
7 (B) THE AMOUNT OF THE CREDIT SHALL BE TWO THOUSAND FOUR HUNDRED
8 DOLLARS FOR EACH CREDITABLE EMPLOYEE.
9 (C) FOR THE PURPOSES OF THIS SUBDIVISION, "CREDITABLE EMPLOYEE" SHALL
10 MEAN A NEW EMPLOYEE OF AN EMPLOYER WHO:
11 (I) IS EMPLOYED BY THE EMPLOYER FOR THE FIRST TIME ON OR AFTER THE
12 EFFECTIVE DATE OF THIS SUBDIVISION;
13 (II) HAS FILED A CLAIM FOR UNEMPLOYMENT COMPENSATION IN THIS STATE;
14 (III) HAS RECEIVED UNEMPLOYMENT BENEFITS IN THIS STATE FOR AT LEAST
15 TWO MONTHS;
16 (IV) IS CURRENTLY RECEIVING WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS
17 ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
18 THE LABOR LAW; AND
19 (V) SUCH BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING ACCOUNT OF
20 AN EMPLOYER UNDER THIS ARTICLE; OR
21 (VI) HAS SUCCESSFULLY COMPLETED A TRAINING PROGRAM PURSUANT TO SECTION
22 FIVE HUNDRED NINETY-NINE OF THE LABOR LAW; AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02530-01-1
S. 3999 2
1 (VII) PERFORMS SERVICES IN ACCORDANCE WITH SUBDIVISION ONE, TWO OR
2 FOUR OF SECTION FIVE HUNDRED ELEVEN OF THE LABOR LAW;
3 (VIII) REMAINS EMPLOYED BY THE EMPLOYER FOR AT LEAST TWENTY-FOUR
4 CONSECUTIVE MONTHS; AND
5 (IX) DURING THE ENTIRE PERIOD SUCH EMPLOYMENT SHALL CONSIST OF AT
6 LEAST THIRTY HOURS PER WEEK.
7 (D) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE
8 THE FOLLOWING MEANINGS:
9 (I) "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT CAUSES THE
10 TOTAL NUMBER OF EMPLOYEES TO INCREASE ABOVE BASE EMPLOYMENT OR CREDIT
11 EMPLOYMENT, WHICHEVER IS HIGHER.
12 (II) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND ELEVEN.
13 (III) "BASE EMPLOYMENT" SHALL MEAN THE AVERAGE NUMBER OF FULL-TIME
14 EMPLOYEES OR FULL-TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR A
15 NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
16 (IV) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
17 NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED.
18 (E) AN EMPLOYER WHO HAS ONE OR MORE CREDITABLE EMPLOYEES SHALL BE
19 ELIGIBLE TO APPLY FOR AND RECEIVE THE CREDIT ESTABLISHED IN THIS SUBDI-
20 VISION. ELIGIBILITY FOR THE CREDIT SHALL BE ESTABLISHED AS OF THE TIME
21 THE CREDITABLE EMPLOYEE COMPLETES TWENTY-FOUR CONSECUTIVE MONTHS OF
22 EMPLOYMENT, AND THE CREDIT SHALL BE CLAIMED FOR THE TAXABLE YEAR IN
23 WHICH THE TWENTY-FOURTH MONTH OF SUCH EMPLOYMENT IS COMPLETED.
24 (F) IN NO EVENT SHALL THE TOTAL AMOUNT OF ANY TAX CREDIT UNDER THIS
25 SUBDIVISION FOR A TAXABLE YEAR EXCEED THE TAXPAYER'S INCOME TAX LIABIL-
26 ITY. ANY UNUSED TAX CREDIT SHALL BE ALLOWED TO BE CARRIED FORWARD TO
27 APPLY TO THE TAXPAYER'S SUCCEEDING FIVE YEARS' TAX LIABILITY. NO SUCH
28 TAX CREDIT SHALL BE ALLOWED THE TAXPAYER AGAINST PRIOR YEARS' TAX
29 LIABILITY.
30 (G) THE CREDIT SHALL BE CLAIMED AND GRANTED IN SUCH MANNER AS SHALL BE
31 SPECIFIED BY RULES ADOPTED BY THE COMMISSIONER.
32 S 2. Section 606 of the tax law is amended by adding a new subsection
33 (ss) to read as follows:
34 (SS) JOBS DEVELOPMENT INCENTIVE TAX CREDIT. (1) A TAXPAYER SHALL BE
35 ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
36 TAX IMPOSED BY THIS ARTICLE IN THE AMOUNT PRESCRIBED BY THIS SUBSECTION
37 WHERE SUCH TAXPAYER EMPLOYS ONE OR MORE CREDITABLE EMPLOYEE.
38 (2) THE AMOUNT OF THE CREDIT SHALL BE TWO THOUSAND FOUR HUNDRED
39 DOLLARS FOR EACH CREDITABLE EMPLOYEE.
40 (3) FOR THE PURPOSES OF THIS SUBSECTION, "CREDITABLE EMPLOYEE" SHALL
41 MEAN A NEW EMPLOYEE OF AN EMPLOYER WHO:
42 (A) IS EMPLOYED BY THE EMPLOYER FOR THE FIRST TIME ON OR AFTER THE
43 EFFECTIVE DATE OF THIS SUBSECTION;
44 (B) HAS FILED A CLAIM FOR UNEMPLOYMENT COMPENSATION IN THIS STATE;
45 (C) HAS RECEIVED UNEMPLOYMENT BENEFITS IN THIS STATE FOR AT LEAST TWO
46 MONTHS;
47 (D) IS CURRENTLY RECEIVING WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS
48 ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
49 THE LABOR LAW; AND
50 (E) SUCH BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING ACCOUNT OF
51 AN EMPLOYER UNDER THIS ARTICLE; OR
52 (F) HAS SUCCESSFULLY COMPLETED A TRAINING PROGRAM PURSUANT TO SECTION
53 FIVE HUNDRED NINETY-NINE OF THE LABOR LAW; AND
54 (G) PERFORMS SERVICES IN ACCORDANCE WITH SUBDIVISION ONE, TWO OR FOUR
55 OF SECTION FIVE HUNDRED ELEVEN OF THE LABOR LAW;
S. 3999 3
1 (H) REMAINS EMPLOYED BY THE EMPLOYER FOR AT LEAST TWENTY-FOUR CONSEC-
2 UTIVE MONTHS; AND
3 (I) DURING THE ENTIRE PERIOD SUCH EMPLOYMENT SHALL CONSIST OF AT LEAST
4 THIRTY HOURS PER WEEK.
5 (4) FOR THE PURPOSES OF THIS SUBSECTION THE FOLLOWING TERMS SHALL HAVE
6 THE FOLLOWING MEANINGS:
7 (A) "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT CAUSES THE
8 TOTAL NUMBER OF EMPLOYEES TO INCREASE ABOVE BASE EMPLOYMENT OR CREDIT
9 EMPLOYMENT, WHICHEVER IS HIGHER.
10 (B) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND ELEVEN.
11 (C) "BASE EMPLOYMENT" SHALL MEAN THE AVERAGE NUMBER OF FULL TIME
12 EMPLOYEES OR FULL TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR A
13 NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
14 (D) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
15 NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED.
16 (5) AN EMPLOYER WHO HAS ONE OR MORE CREDITABLE EMPLOYEES SHALL BE
17 ELIGIBLE TO APPLY FOR AND RECEIVE THE CREDIT ESTABLISHED IN THIS
18 SUBSECTION. ELIGIBILITY FOR THE CREDIT SHALL BE ESTABLISHED AS OF THE
19 TIME THE CREDITABLE EMPLOYEE COMPLETES TWENTY-FOUR CONSECUTIVE MONTHS OF
20 EMPLOYMENT, AND THE CREDIT SHALL BE CLAIMED FOR THE TAXABLE YEAR IN
21 WHICH THE TWENTY-FOURTH MONTH OF SUCH EMPLOYMENT IS COMPLETED.
22 (6) IN NO EVENT SHALL THE TOTAL AMOUNT OF ANY TAX CREDIT UNDER THIS
23 SUBSECTION FOR A TAXABLE YEAR EXCEED THE TAXPAYER'S INCOME TAX LIABIL-
24 ITY. ANY UNUSED TAX CREDIT SHALL BE ALLOWED TO BE CARRIED FORWARD TO
25 APPLY TO THE TAXPAYER'S SUCCEEDING FIVE YEARS' TAX LIABILITY. NO SUCH
26 TAX CREDIT SHALL BE ALLOWED THE TAXPAYER AGAINST PRIOR YEARS' TAX
27 LIABILITY.
28 (7) THE CREDIT SHALL BE CLAIMED AND GRANTED IN SUCH MANNER AS SHALL BE
29 SPECIFIED BY RULES ADOPTED BY THE COMMISSIONER.
30 S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
31 of the tax law is amended by adding a new clause (xxxii) to read as
32 follows:
33 (XXXII) JOBS DEVELOPMENT INCENTIVE AMOUNT OF CREDIT UNDER
34 TAX CREDIT UNDER SUBSECTION (SS) SUBDIVISION FORTY-THREE OF SECTION
35 TWO HUNDRED TEN OF THIS CHAPTER
36 S 4. This act shall take effect immediately.