senate Bill S3999A

Creates a jobs development incentive income tax credit available to employers who employ individuals previously receiving unemployment

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 11 / Mar / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 26 / Jan / 2012
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 26 / Jan / 2012
    • PRINT NUMBER 3999A
  • 02 / May / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 22 / May / 2012
    • 1ST REPORT CAL.884
  • 23 / May / 2012
    • 2ND REPORT CAL.
  • 30 / May / 2012
    • ADVANCED TO THIRD READING
  • 20 / Jun / 2012
    • PASSED SENATE
  • 20 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 20 / Jun / 2012
    • REFERRED TO LABOR

Summary

Creates a job development incentive income tax credit available to employers who employ individuals previously receiving unemployment.

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Bill Details

See Assembly Version of this Bill:
A10121
Versions:
S3999
S3999A
Legislative Cycle:
2011-2012
Current Committee:
Assembly Labor
Law Section:
Labor Law
Laws Affected:
Amd ยงยง210 & 606, Tax L
Versions Introduced in 2009-2010 Legislative Cycle:
S5264B

Sponsor Memo

BILL NUMBER:S3999A

PURPOSE:
This bill would give incentives, through income tax credits,
to businesses who hire individuals currently receiving unemployment
benefits.

SUMMARY OF SPECIFIC PROVISIONS:
SECTION 1 - amends Tax Law Section 210
relating to franchise taxes on business corporations, to add a new
subdivision 41 granting an employment incentive tax credit. The
credit is in the amount of $2,400 for each creditable employee, as
defined in the section.

SECTION 2 - amends Tax Law Section 606, relating to personal income
taxes, by adding a new subsection (qq) granting an employee incentive
tax credit in the amount of $2,400 per creditable employee, as
defined in the section.

SECTION 3 - amends subparagraph (B) of paragraph 1 of subsection (i)
of Section 606 of the Tax Law, relating to S corporations, by adding
a new clause (xxxi) providing for an employment incentive tax credit
under subsection (qq) in the amount of the credit under subdivision
41 of Section 210.

SECTION 4 - Effective date.

CURRENT LAW:
There are many tax credits available to individuals and
businesses to promote activities that benefit the state economy.

JUSTIFICATION:
The economic meltdown that has engulfed the world's
economy has left businesses in New York struggling to survive, and
tens of thousands of workers on unemployment. The state needs to act
to help employers and to return unemployed individuals to work. This
bill accomplishes both of these purposes. The bill offers incentives
to employers to rehire workers who have lost their jobs and are on
unemployment.

This bill offers tax credits of up to $2,400 per employee to employers,
whether corporate, individual or an S corporation, for hiring
unemployed persons who meet specified criteria. Both of these credits
offer an additional incentive to employers to take the risk and
increase their workforce.

This bill offers meaningful incentive to hire new employees from the
ranks of the unemployed, and offers new employment opportunity to
individuals.

FISCAL IMPLICATIONS:
To be determined.

LEGISLATIVE HISTORY:


2009 - S.5264A -- LABOR
2010 - S.5264B/A.10085B -- LABOR/Labor
2011 - S.3999 -- INVESTIGATIONS

EFFECTIVE DATE:
This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3999--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 11, 2011
                               ___________

Introduced  by  Sens. RANZENHOFER, BALL, DeFRANCISCO, GRISANTI, JOHNSON,
  KLEIN, MAZIARZ, SALAND -- read twice and  ordered  printed,  and  when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations -- 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 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:

  Section  1.    Section  210  of the tax law is amended by adding a new
subdivision 45 to read as follows:
  45. JOBS DEVELOPMENT INCENTIVE TAX CREDIT. (A)  A  TAXPAYER  SHALL  BE
ALLOWED  A  CREDIT,  TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE IN THE AMOUNT PRESCRIBED BY THIS SUBDIVISION
WHERE SUCH TAXPAYER EMPLOYS ONE OR MORE CREDITABLE EMPLOYEE.
  (B) THE AMOUNT OF THE  CREDIT  SHALL  BE  TWO  THOUSAND  FOUR  HUNDRED
DOLLARS FOR EACH CREDITABLE EMPLOYEE.
  (C)  FOR THE PURPOSES OF THIS SUBDIVISION, "CREDITABLE EMPLOYEE" SHALL
MEAN A NEW EMPLOYEE OF AN EMPLOYER WHO:
  (I) IS EMPLOYED BY THE EMPLOYER FOR THE FIRST TIME  ON  OR  AFTER  THE
EFFECTIVE DATE OF THIS SUBDIVISION;
  (II) HAS FILED A CLAIM FOR UNEMPLOYMENT COMPENSATION IN THIS STATE;
  (III)  HAS  RECEIVED  UNEMPLOYMENT BENEFITS IN THIS STATE FOR AT LEAST
TWO MONTHS;
  (IV) IS CURRENTLY RECEIVING WEEKLY UNEMPLOYMENT COMPENSATION  BENEFITS
ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
THE LABOR LAW; AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02530-02-2

S. 3999--A                          2

  (V)  SUCH  BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING ACCOUNT OF
AN EMPLOYER UNDER THIS ARTICLE; OR
  (VI) HAS SUCCESSFULLY COMPLETED A TRAINING PROGRAM PURSUANT TO SECTION
FIVE HUNDRED NINETY-NINE OF THE LABOR LAW; AND
  (VII)  PERFORMS  SERVICES  IN  ACCORDANCE WITH SUBDIVISION ONE, TWO OR
FOUR OF SECTION FIVE HUNDRED ELEVEN OF THE LABOR LAW;
  (VIII) REMAINS EMPLOYED BY  THE  EMPLOYER  FOR  AT  LEAST  TWENTY-FOUR
CONSECUTIVE MONTHS; AND
  (IX)  DURING  THE  ENTIRE  PERIOD  SUCH EMPLOYMENT SHALL CONSIST OF AT
LEAST THIRTY HOURS PER WEEK.
  (D) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING  TERMS  SHALL  HAVE
THE FOLLOWING MEANINGS:
  (I)  "NEW  EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT CAUSES THE
TOTAL NUMBER OF EMPLOYEES TO INCREASE ABOVE BASE  EMPLOYMENT  OR  CREDIT
EMPLOYMENT, WHICHEVER IS HIGHER.
  (II) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND ELEVEN.
  (III)  "BASE  EMPLOYMENT"  SHALL  MEAN THE AVERAGE NUMBER OF FULL-TIME
EMPLOYEES OR FULL-TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR  A
NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
  (IV) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED.
  (E)  AN  EMPLOYER  WHO  HAS  ONE OR MORE CREDITABLE EMPLOYEES SHALL BE
ELIGIBLE TO APPLY FOR AND RECEIVE THE CREDIT ESTABLISHED IN THIS  SUBDI-
VISION.  ELIGIBILITY  FOR THE CREDIT SHALL BE ESTABLISHED AS OF THE TIME
THE CREDITABLE EMPLOYEE  COMPLETES  TWENTY-FOUR  CONSECUTIVE  MONTHS  OF
EMPLOYMENT,  AND  THE  CREDIT  SHALL  BE CLAIMED FOR THE TAXABLE YEAR IN
WHICH THE TWENTY-FOURTH MONTH OF SUCH EMPLOYMENT IS COMPLETED.
  (F) IN NO EVENT SHALL THE TOTAL AMOUNT OF ANY TAX  CREDIT  UNDER  THIS
SUBDIVISION  FOR A TAXABLE YEAR EXCEED THE TAXPAYER'S INCOME TAX LIABIL-
ITY. ANY UNUSED TAX CREDIT SHALL BE ALLOWED TO  BE  CARRIED  FORWARD  TO
APPLY  TO  THE  TAXPAYER'S SUCCEEDING FIVE YEARS' TAX LIABILITY. NO SUCH
TAX CREDIT SHALL BE  ALLOWED  THE  TAXPAYER  AGAINST  PRIOR  YEARS'  TAX
LIABILITY.
  (G) THE CREDIT SHALL BE CLAIMED AND GRANTED IN SUCH MANNER AS SHALL BE
SPECIFIED BY RULES ADOPTED BY THE COMMISSIONER.
  S  2. Section 606 of the tax law is amended by adding a new subsection
(uu) to read as follows:
  (UU) JOBS DEVELOPMENT INCENTIVE TAX CREDIT. (1) A  TAXPAYER  SHALL  BE
ALLOWED  A  CREDIT,  TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE IN THE AMOUNT PRESCRIBED BY THIS  SUBSECTION
WHERE SUCH TAXPAYER EMPLOYS ONE OR MORE CREDITABLE EMPLOYEE.
  (2)  THE  AMOUNT  OF  THE  CREDIT  SHALL  BE TWO THOUSAND FOUR HUNDRED
DOLLARS FOR EACH CREDITABLE EMPLOYEE.
  (3) FOR THE PURPOSES OF THIS SUBSECTION, "CREDITABLE  EMPLOYEE"  SHALL
MEAN A NEW EMPLOYEE OF AN EMPLOYER WHO:
  (A)  IS  EMPLOYED  BY  THE EMPLOYER FOR THE FIRST TIME ON OR AFTER THE
EFFECTIVE DATE OF THIS SUBSECTION;
  (B) HAS FILED A CLAIM FOR UNEMPLOYMENT COMPENSATION IN THIS STATE;
  (C) HAS RECEIVED UNEMPLOYMENT BENEFITS IN THIS STATE FOR AT LEAST  TWO
MONTHS;
  (D)  IS  CURRENTLY RECEIVING WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS
ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
THE LABOR LAW; AND
  (E) SUCH BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING  ACCOUNT  OF
AN EMPLOYER UNDER THIS ARTICLE; OR

S. 3999--A                          3

  (F)  HAS SUCCESSFULLY COMPLETED A TRAINING PROGRAM PURSUANT TO SECTION
FIVE HUNDRED NINETY-NINE OF THE LABOR LAW; AND
  (G)  PERFORMS SERVICES IN ACCORDANCE WITH SUBDIVISION ONE, TWO OR FOUR
OF SECTION FIVE HUNDRED ELEVEN OF THE LABOR LAW;
  (H) REMAINS EMPLOYED BY THE EMPLOYER FOR AT LEAST TWENTY-FOUR  CONSEC-
UTIVE MONTHS; AND
  (I) DURING THE ENTIRE PERIOD SUCH EMPLOYMENT SHALL CONSIST OF AT LEAST
THIRTY HOURS PER WEEK.
  (4) FOR THE PURPOSES OF THIS SUBSECTION THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
  (A)  "NEW  EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT CAUSES THE
TOTAL NUMBER OF EMPLOYEES TO INCREASE ABOVE BASE  EMPLOYMENT  OR  CREDIT
EMPLOYMENT, WHICHEVER IS HIGHER.
  (B) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND ELEVEN.
  (C)  "BASE  EMPLOYMENT"  SHALL  MEAN  THE  AVERAGE NUMBER OF FULL TIME
EMPLOYEES OR FULL TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR  A
NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
  (D)  "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED.
  (5) AN EMPLOYER WHO HAS ONE OR  MORE  CREDITABLE  EMPLOYEES  SHALL  BE
ELIGIBLE  TO  APPLY  FOR  AND  RECEIVE  THE  CREDIT  ESTABLISHED IN THIS
SUBSECTION. ELIGIBILITY FOR THE CREDIT SHALL BE ESTABLISHED  AS  OF  THE
TIME THE CREDITABLE EMPLOYEE COMPLETES TWENTY-FOUR CONSECUTIVE MONTHS OF
EMPLOYMENT,  AND  THE  CREDIT  SHALL  BE CLAIMED FOR THE TAXABLE YEAR IN
WHICH THE TWENTY-FOURTH MONTH OF SUCH EMPLOYMENT IS COMPLETED.
  (6) IN NO EVENT SHALL THE TOTAL AMOUNT OF ANY TAX  CREDIT  UNDER  THIS
SUBSECTION  FOR  A TAXABLE YEAR EXCEED THE TAXPAYER'S INCOME TAX LIABIL-
ITY. ANY UNUSED TAX CREDIT SHALL BE ALLOWED TO  BE  CARRIED  FORWARD  TO
APPLY  TO  THE  TAXPAYER'S SUCCEEDING FIVE YEARS' TAX LIABILITY. NO SUCH
TAX CREDIT SHALL BE  ALLOWED  THE  TAXPAYER  AGAINST  PRIOR  YEARS'  TAX
LIABILITY.
  (7) THE CREDIT SHALL BE CLAIMED AND GRANTED IN SUCH MANNER AS SHALL BE
SPECIFIED BY RULES ADOPTED BY THE COMMISSIONER.
  S  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xxxiv)  to  read  as
follows:
(XXXIV) JOBS DEVELOPMENT INCENTIVE   AMOUNT OF CREDIT UNDER
TAX CREDIT UNDER SUBSECTION (UU)     SUBDIVISION FORTY-FIVE OF SECTION
                                     TWO HUNDRED TEN OF THIS CHAPTER
  S 4. This act shall take effect immediately.

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