Bill Text: NY S04833 | 2023-2024 | General Assembly | Amended

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Bill Title: Creates a work opportunity tax credit.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced) 2024-05-21 - REPORTED AND COMMITTED TO FINANCE [S04833 Detail]

Download: New_York-2023-S04833-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         4833--B

                               2023-2024 Regular Sessions

                    IN SENATE

                                    February 15, 2023
                                       ___________

        Introduced  by  Sens.  SKOUFIS, CHU, GOUNARDES -- read twice and ordered
          printed, and when printed to be committed to the Committee on Investi-
          gations  and  Government  Operations  --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee -- recommitted to the Committee on Investigations  and  Government
          Operations  in  accordance  with  Senate  Rule  6, sec. 8 -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee

        AN ACT to amend the tax law, in relation to creating a work  opportunity
          tax credit; and providing for the repeal of such provisions upon expi-
          ration thereof

          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 49  to  read
     2  as follows:
     3    §  49. Work opportunity tax credit. (a) General. A taxpayer subject to
     4  tax under article nine-A, twenty-two, or thirty-three  of  this  chapter
     5  shall  be  allowed  a  credit against such tax in an amount equal to one
     6  hundred percent of the credit that is  allowed  to  the  taxpayer  under
     7  section  51  of the internal revenue code that is attributable to quali-
     8  fied wages paid to a New York resident who is a  member  of  a  targeted
     9  group  and  for whom a certificate to that effect has been issued by the
    10  department of labor.
    11    (b) Definitions. The terms  "qualified  wages"  and  "targeted  group"
    12  shall  have  the  same meanings as in section 51 of the internal revenue
    13  code.
    14    (c) Effect on other tax credits.   Wages which are the  basis  of  the
    15  credit  under  this  section  may not be used as the basis for any other
    16  credit allowed under this chapter.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06643-07-4
        S. 4833--B                          2

     1    (d) Limit on tax credits issued. Over the lifetime of the tax  credit,
     2  the  total  amount  of tax credits provided for under this section shall
     3  not exceed thirty million dollars.
     4    (e)  Cross-references.  For  application of the credit provided for in
     5  this section, see the following provisions of this chapter:
     6    (1) article 9-A: section 210-B, subdivision 60;
     7    (2) article 22: section 606, subsection (bbb);
     8    (3) article 33: section 1511, subdivision (ff).
     9    § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
    10  sion 60 to read as follows:
    11    60.  Work  opportunity tax credit. (a) Allowance of credit. A taxpayer
    12  shall be allowed a credit, to be computed as provided in section  forty-
    13  nine  of  this  chapter,  against the tax imposed by this article.  Such
    14  credit may not exceed five hundred dollars  per  eligible  employee  per
    15  year in any given tax year.
    16    (b)  Application  of credit. The credit allowed under this subdivision
    17  for any taxable year may not reduce the tax due for such  year  to  less
    18  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    19  section two hundred ten of this article. However, if the amount  of  the
    20  credit  allowed  under this subdivision for any taxable year reduces the
    21  tax to such amount or if the taxpayer otherwise pays tax  based  on  the
    22  fixed dollar minimum amount, any amount of credit thus not deductible in
    23  such taxable year will be treated as an overpayment of tax to be credit-
    24  ed  in accordance with the provisions of section one thousand eighty-six
    25  of this chapter. Provided, however, the provisions of subsection (c)  of
    26  section  one  thousand  eighty-eight of this chapter notwithstanding, no
    27  interest shall be paid thereon.
    28    § 3. Section 606 of the tax law is amended by adding a new  subsection
    29  (bbb) to read as follows:
    30    (bbb) Work opportunity tax credit. (1) Allowance of credit. A taxpayer
    31  shall  be allowed a credit, to be computed as provided in section forty-
    32  nine of this chapter, against the tax imposed by  this  article.    Such
    33  credit  may  not  exceed  five hundred dollars per eligible employee per
    34  year in any given tax year.
    35    (2) Application of credit. If the amount of the credit  allowed  under
    36  this subsection for any taxable year shall exceed the taxpayer's tax for
    37  such  year,  the  excess shall be treated as an overpayment of tax to be
    38  credited or refunded in accordance with the provisions  of  section  six
    39  hundred  eighty-six of this article, provided, however, that no interest
    40  shall be paid thereon.
    41    § 4. Section 1511 of the tax law is amended by adding a  new  subdivi-
    42  sion (ff) to read as follows:
    43    (ff) Work opportunity tax credit. (1) Allowance of credit.  A taxpayer
    44  shall  be allowed a credit, to be computed as provided in section forty-
    45  nine of this chapter, against the tax imposed by  this  article.    Such
    46  credit  may  not  exceed  five hundred dollars per eligible employee per
    47  year in any given tax year.
    48    (2) Application of credit. The credit allowed under  this  subdivision
    49  shall  not  reduce the tax due for such year to be less than the minimum
    50  fixed by paragraph four of subdivision (a) of  section  fifteen  hundred
    51  two  or  section  fifteen  hundred  two-a  of this article, whichever is
    52  applicable. However, if the amount of  the  credit  allowed  under  this
    53  subdivision  for  any  taxable  year  reduces the taxpayer's tax to such
    54  amount, any amount of credit thus not deductible will be treated  as  an
    55  overpayment  of  tax to be credited in accordance with the provisions of
    56  section one thousand eighty-six of this chapter. Provided, however,  the
        S. 4833--B                          3

     1  provisions  of  subsection  (c)  of section one thousand eighty-eight of
     2  this chapter notwithstanding, no interest shall be paid thereon.
     3    § 5. This act shall take effect April 1, 2025 and shall apply to taxa-
     4  ble  years  beginning  on  and  after January 1, 2025 and shall apply to
     5  wages paid to individuals hired on and after  such  effective  date  and
     6  shall expire and be deemed repealed December 31, 2027.