Bill Text: NY S04090 | 2017-2018 | General Assembly | Amended
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 (Republican 9-0)
Status: (Engrossed - Dead) 2018-05-15 - REPORTED AND COMMITTED TO FINANCE [S04090 Detail]
Download: New_York-2017-S04090-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 4090--B 2017-2018 Regular Sessions IN SENATE February 3, 2017 ___________ Introduced by Sens. AKSHAR, BONACIC, CROCI, DeFRANCISCO, GALLIVAN, HANNON, HELMING, ROBACH, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 eighteen, 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 eighteen. 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06532-06-7S. 4090--B 2 1 with another business that is a related person, (3) are either full-time 2 wage-paying jobs or equivalent to a full-time wage-paying job requiring 3 at least thirty-five hours per week, and (4) are filled for more than 4 six months. 5 (d) Employer prohibition. An employer shall not discharge an employee 6 and hire a qualifying employee solely for the purpose of qualifying for 7 this credit. 8 (e) Amount of credit. The amount of the credit shall be six percent of 9 the total amount of wages paid to the qualified employee during the 10 employee's first six months of employment. Provided, however, that, if 11 the qualified employee was receiving unemployment insurance benefits at 12 the time of hire for a minimum of thirteen weeks or is employed directly 13 in the manufacturing process in an eligible industry, the amount of the 14 credit shall be twelve percent of the total amount of wages paid to the 15 qualified employee during the employee's first six months of employment. 16 The credit allowed pursuant to this subsection shall not exceed in any 17 taxable year, seven hundred fifty dollars for any qualified employee and 18 one thousand five hundred dollars for any qualified employee who was 19 receiving unemployment insurance benefits at the time of hire for a 20 minimum of thirteen weeks or who is employed directly in the manufactur- 21 ing process in an eligible industry. 22 (f) Eligible industry. An eligible industry is a business principally 23 engaged in the production of goods by manufacturing, processing, assem- 24 bling, refining, mining, extracting, farming, agriculture, horticulture, 25 floriculture, viticulture or commercial fishing. 26 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 27 sion 53 to read as follows: 28 53. Job creation tax credit. (a) Allowance of credit. A taxpayer will 29 be allowed a credit, to be computed as provided in section forty-four of 30 this chapter, against the tax imposed by this article. 31 (b) Application of credit. The credit allowed under this subdivision 32 for any taxable year may not reduce the tax due for such year to less 33 than the higher of the amounts prescribed in paragraph (d) of subdivi- 34 sion one of section two hundred ten of this article. However, if the 35 amount of credit allowed under this subdivision for any taxable year 36 reduces the tax to such amount, any amount of credit thus not deductible 37 in such taxable year will be treated as an overpayment of tax to be 38 credited or refunded in accordance with the provisions of section one 39 thousand eighty-six of this chapter. Provided, however, the provisions 40 of subsection (c) of section one thousand eighty-eight of this chapter 41 notwithstanding, no interest will be paid thereon. 42 § 3. Section 606 of the tax law is amended by adding a new subsection 43 (ccc) to read as follows: 44 (ccc) Job creation tax credit. (1) A taxpayer will be allowed a cred- 45 it, to the extent allowed under section forty-four of this chapter, 46 against the tax imposed by this article. 47 (2) If the amount of the credit allowed under this subsection for any 48 taxable year exceeds the taxpayer's tax for such year, the excess will 49 be treated as an overpayment of tax to be credited or refunded in 50 accordance with the provisions of section six hundred eighty-six of this 51 article, provided, however, that no interest will be paid thereon. 52 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 53 of the tax law is amended by adding a new clause (xliv) to read as 54 follows: 55 (xliv) Job creation tax credit Amount of credit under 56 under subsection (ccc) subdivision fifty-three of sectionS. 4090--B 3 1 two hundred ten-B 2 § 5. This act shall take effect immediately and shall apply to taxable 3 years beginning on or after January 1, 2018.
