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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4833

                               2023-2024 Regular Sessions

                    IN SENATE

                                    February 15, 2023
                                       ___________

        Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations

        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 48  to  read
     2  as follows:
     3    §  48. 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.
    17    (d) Limit on tax credits issued. Over the lifetime of the tax  credit,
    18  the  total  amount  of tax credits provided for under this section shall
    19  not exceed thirty million dollars.
    20    (e) Cross-references. For application of the credit  provided  for  in
    21  this section, see the following provisions of this chapter:
    22    (1) article 9-A: section 210-B, subdivision 59;
    23    (2) article 22: section 606, subsection (bbb);

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06643-02-3
        S. 4833                             2

     1    (3) article 33: section 1511, subdivision (ee).
     2    §  2. Section 210-B of the tax law is amended by adding a new subdivi-
     3  sion 59 to read as follows:
     4    59. Work opportunity tax credit. (a) Allowance of credit.  A  taxpayer
     5  shall  be allowed a credit, to be computed as provided in section forty-
     6  eight of this chapter, against the tax imposed by this  article.    Such
     7  credit may not exceed five hundred dollars in any given tax year.
     8    (b)  Application  of credit. The credit allowed under this subdivision
     9  for any taxable year may not reduce the tax due for such  year  to  less
    10  than  the  amount  prescribed  in  paragraph  (d)  of subdivision one of
    11  section two hundred ten of this article. However, if the amount  of  the
    12  credit  allowed  under this subdivision for any taxable year reduces the
    13  tax to such amount or if the taxpayer otherwise pays tax  based  on  the
    14  fixed dollar minimum amount, any amount of credit thus not deductible in
    15  such taxable year will be treated as an overpayment of tax to be credit-
    16  ed  in accordance with the provisions of section one thousand eighty-six
    17  of this chapter. Provided, however, the provisions of subsection (c)  of
    18  section  one  thousand  eighty-eight of this chapter notwithstanding, no
    19  interest shall be paid thereon.
    20    § 3. Section 606 of the tax law is amended by adding a new  subsection
    21  (bbb) to read as follows:
    22    (bbb) Work opportunity tax credit. (1) Allowance of credit. A taxpayer
    23  shall  be allowed a credit, to be computed as provided in section forty-
    24  eight of this chapter, against the tax imposed by this  article.    Such
    25  credit may not exceed five hundred dollars in any given tax year.
    26    (2)  Application  of credit. If the amount of the credit allowed under
    27  this subsection for any taxable year shall exceed the taxpayer's tax for
    28  such year, the excess shall be treated as an overpayment of  tax  to  be
    29  credited  or  refunded  in accordance with the provisions of section six
    30  hundred eighty-six of this article, provided, however, that no  interest
    31  shall be paid thereon.
    32    §  4.  Section 1511 of the tax law is amended by adding a new subdivi-
    33  sion (ee) to read as follows:
    34    (ee) Work opportunity tax credit. (1) A taxpayer shall  be  allowed  a
    35  credit,  to be computed as provided in section forty-eight of this chap-
    36  ter, against the tax imposed by this  article.    Such  credit  may  not
    37  exceed five hundred dollars in any given tax year.
    38    (2)  Application  of credit. The credit allowed under this subdivision
    39  shall not reduce the tax due for such year to be less than  the  minimum
    40  fixed  by  paragraph  four of subdivision (a) of section fifteen hundred
    41  two or section fifteen hundred  two-a  of  this  article,  whichever  is
    42  applicable.  However,  if  the  amount  of the credit allowed under this
    43  subdivision for any taxable year reduces  the  taxpayer's  tax  to  such
    44  amount,  any  amount of credit thus not deductible will be treated as an
    45  overpayment of tax to be credited in accordance with the  provisions  of
    46  section  one thousand eighty-six of this chapter. Provided, however, the
    47  provisions of subsection (c) of section  one  thousand  eighty-eight  of
    48  this chapter notwithstanding, no interest shall be paid thereon.
    49    § 5. This act shall take effect April 1, 2024 and shall apply to taxa-
    50  ble  years  beginning  on  and  after January 1, 2024 and shall apply to
    51  wages paid to individuals hired on and after  such  effective  date  and
    52  shall expire and be deemed repealed December 31, 2026.