STATE OF NEW YORK ________________________________________________________________________ 4857 2019-2020 Regular Sessions IN SENATE March 27, 2019 ___________ Introduced by Sens. RANZENHOFER, FUNKE -- read twice and ordered print- ed, and when printed to be committed to the Committee on Budget and Revenue 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-B of the tax law is amended by adding a new 2 subdivision 53 to read as follows: 3 53. 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 unemployment compensation benefits as of 17 the date of employment; and 18 (v) such benefits are chargeable to the experience rating account of 19 an employer under this article; or 20 (vi) has successfully completed a training program pursuant to section 21 five hundred ninety-nine of the labor law; and 22 (vii) performs services in accordance with subdivision one, two or 23 four of section five hundred eleven of the labor law; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10280-02-9S. 4857 2 1 (viii) remains employed by the employer for at least twenty-four 2 consecutive months; and 3 (ix) during the entire period such employment shall consist of at 4 least thirty hours per week. 5 (d) For the purposes of this section the following terms shall have 6 the following meanings: 7 (i) "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 (ii) "base year" shall mean calendar year two thousand nineteen. 11 (iii) "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 (iv) "credit employment" shall mean base employment plus the number of 15 new employees for which a credit is earned. 16 (e) An employer who has one or more creditable employees shall be 17 eligible to apply for and receive the credit established in this subdi- 18 vision. Eligibility for the credit shall be established as of the time 19 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 (f) In no event shall the total amount of any tax credit under this 23 subdivision 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 (g) The credit shall be claimed and granted in such manner as shall be 29 specified by rules adopted by the commissioner. 30 § 2. Section 606 of the tax law is amended by adding a new subsection 31 (jjj) to read as follows: 32 (jjj) Jobs development incentive tax credit. (1) A taxpayer shall be 33 allowed a credit, to be computed as hereinafter provided, against the 34 tax imposed by this article in the amount prescribed by this subsection 35 where such taxpayer employs one or more creditable employee. 36 (2) The amount of the credit shall be two thousand four hundred 37 dollars for each creditable employee. 38 (3) For the purposes of this subsection, "creditable employee" shall 39 mean a new employee of an employer who: 40 (A) is employed by the employer for the first time on or after the 41 effective date of this subsection; 42 (B) has filed a claim for unemployment compensation in this state; 43 (C) has received unemployment benefits in this state for at least two 44 months; 45 (D) is currently receiving unemployment compensation benefits as of 46 the date of employment; and 47 (E) such benefits are chargeable to the experience rating account of 48 an employer under this article; or 49 (F) has successfully completed a training program pursuant to section 50 five hundred ninety-nine of the labor law; and 51 (G) performs services in accordance with subdivision one, two or four 52 of section five hundred eleven of the labor law; 53 (H) remains employed by the employer for at least twenty-four consec- 54 utive months; and 55 (I) during the entire period such employment shall consist of at least 56 thirty hours per week.S. 4857 3 1 (4) For the purposes of this subsection the following terms shall have 2 the following meanings: 3 (A) "new employee" shall mean any full time employee that causes the 4 total number of employees to increase above base employment or credit 5 employment, whichever is higher. 6 (B) "base year" shall mean calendar year two thousand nineteen. 7 (C) "base employment" shall mean the average number of full time 8 employees or full time equivalent employees during the base year. For a 9 new business, base employment shall begin at zero. 10 (D) "credit employment" shall mean base employment plus the number of 11 new employees for which a credit is earned. 12 (5) An employer who has one or more creditable employees shall be 13 eligible to apply for and receive the credit established in this 14 subsection. Eligibility for the credit shall be established as of the 15 time the creditable employee completes twenty-four consecutive months of 16 employment, and the credit shall be claimed for the taxable year in 17 which the twenty-fourth month of such employment is completed. 18 (6) In no event shall the total amount of any tax credit under this 19 subsection for a taxable year exceed the taxpayer's income tax liabil- 20 ity. Any unused tax credit shall be allowed to be carried forward to 21 apply to the taxpayer's succeeding five years' tax liability. No such 22 tax credit shall be allowed the taxpayer against prior years' tax 23 liability. 24 (7) The credit shall be claimed and granted in such manner as shall be 25 specified by rules adopted by the commissioner. 26 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 27 of the tax law is amended by adding a new clause (xliv) to read as 28 follows: 29 (xliv) Jobs development incentive Amount of credit under 30 tax credit under subsection (jjj) subdivision fifty-three of section 31 two hundred ten-B of this chapter 32 § 4. This act shall take effect immediately.