senate Bill S7439

Amended

Establishes business franchise and personal income tax credits for employment of discharged combat veterans

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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

  • 16 / May / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 18 / May / 2012
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 18 / May / 2012
    • PRINT NUMBER 7439A
  • 31 / May / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 04 / Jun / 2012
    • AMEND AND RECOMMIT TO FINANCE
  • 04 / Jun / 2012
    • PRINT NUMBER 7439B

Summary

Establishes business franchise and personal income tax credits for employment of discharged combat veterans.

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Bill Details

Versions:
S7439
S7439A
S7439B
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Tax Law
Laws Affected:
Amd ยงยง210 & 606, Tax L

Sponsor Memo

BILL NUMBER:S7439

TITLE OF BILL:
An act
to amend the tax law, in relation to establishing business franchise and
personal income tax credits for employers which employ combat veterans

PURPOSE:
This bill will establish a business franchise and personal income tax
credits for employment of discharged combat veterans.

SUMMARY OF PROVISIONS:
Section One - amends section 210 of the tax law by adding a new
subdivision 45 that will create a credit for employment of combat
veterans. A taxpayer shall be allowed a credit, to be computed
against the tax imposed by this article for employing within the
state a combat veterans.

Section One - defines a combat veteran as a person who served in the
armed forces of the United States within two years of commencing
employment by the taxpayers, who served in a combat zone as designed
by the department of defense, and who has been honorably discharged
or released under honorable circumstances from their service or
furloughed to the reserve.

Section One - defines the amount of the credit as six thousand dollars
for each combat veterans employed by the taxpayer during the taxable
year on a full-time basis of thirty-five hours or more of work per
week. The credit may only be claimed, with regard to any combat
veteran, during the first two tax years of such veterans' employment
by the taxpayer.

Section One - states the credit allowed for any taxable year shall not
reduce the tax due for such year to less than the amount prescribed
in paragraph of subdivision one of this section. However, if the
amount of credit allowable under this subdivision for any taxable
year reduces the tax to such amount, any amount of credit not
deductible in such taxable year that may be carrier over to the
following year or years, and may be deducted from the taxpayer's tax
for such year or years.

Section Two - amends subparagraph (B) of paragraph 1 of subsection (i)
of section 606 of the tax law is amended by adding a new clause
(xxxiv) to state credit for employment of combat veterans under
subsection (uu), amount of credit for employment of combat veterans
under subdivision forty-five of section two hundred ten.

Section Three - amends section 606 of the tax law by adding a new
subsection (uu) to create a credit for employment of combat veterans.
A taxpayer shall be allowed a credit, to be computed against the tax

imposed by this article for employing within the state a combat
veterans.

Section Three - defines a combat veteran as a person who served in the
armed forces of the United States within two years of commencing
employment by the taxpayers, who served in a combat zone as designed
by the department of defense, and who has been honorably discharged
or released under honorable circumstances from their service or
furloughed to the reserve.

Section Three - states the credit allowed for any taxable year shall
not reduce the tax due for such year to less than the amount
prescribed in paragraph of subdivision one of this section.
However, if the amount of credit allowable under this subdivision for
any taxable year reduces the tax to such amount, any amount of credit
not deductible in such taxable year that may be carrier over to the
following year or years, and may be deducted from the taxpayer's tax
for such year or years.

Section Three - states the credit allowed for any taxable year shall
not reduce the tax due for such year to less than the amount
prescribed in paragraph of subdivision one of this section.
However, if the amount of credit allowable under this subdivision for
any taxable year reduces the tax to such amount, any amount of credit
not deductible in such taxable year that may be carrier over to the
following year or years, and may be deducted from the taxpayer's tax
for such year or years.

Section Four - this act shall take effect immediately and shall apply
to taxable years commencing on or after January 1, 2012.

JUSTIFICATION:
The Iraq & Afghanistan Veterans of America (IAVA), in a report
published in June of 2011 analyzed several key findings from the
RAND Corporation's Needs Assessment of New York State Veterans. In
the report, using the U.S. government's definition of unemployment,
the rate for veterans in the survey was almost 13 percent, which is
more than 4 percentage points higher than the overall unemployment
rate in New York State in August of 2010. According to their
report, in 2010, the average rate for Iraq-and Afghanistan-era
veterans was 11.5 percent, almost 2 percent higher than the national
average.

New York State must do everything in its power to provide our brave
service men and women with quality employment opportunities when they
return.

This legislation will provide an employer with a $6,000 tax credit if
they hire a combat veteran who has been honorably discharged or
released under honorable circumstances from their service or
furloughed to the reserves within two years of their returning from
their service.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2012.

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

                                  7439

                            I N  S E N A T E

                              May 16, 2012
                               ___________

Introduced  by  Sen.  BALL  --  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 establishing business  fran-
  chise  and  personal  income  tax  credits  for employers which employ
  combat veterans

  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. CREDIT FOR EMPLOYMENT OF COMBAT VETERANS. (A) ALLOWANCE OF CREDIT.
A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS
SUBDIVISION, AGAINST THE TAX IMPOSED  BY  THIS  ARTICLE,  FOR  EMPLOYING
WITHIN THE STATE A COMBAT VETERAN.
  (B)  COMBAT  VETERAN.  A  COMBAT VETERAN IS A PERSON WHO SERVED IN THE
ARMED FORCES OF THE UNITED STATES WITHIN TWO YEARS OF COMMENCING EMPLOY-
MENT BY THE TAXPAYER, WHO SERVED IN A COMBAT ZONE AS DESIGNATED  BY  THE
DEPARTMENT OF DEFENSE, AND WHO HAS BEEN HONORABLY DISCHARGED OR RELEASED
UNDER  HONORABLE  CIRCUMSTANCES  FROM  SUCH SERVICE OR FURLOUGHED TO THE
RESERVE.
  (C) AMOUNT OF CREDIT. THE AMOUNT  OF  CREDIT  SHALL  BE  SIX  THOUSAND
DOLLARS  FOR  EACH  COMBAT  VETERAN  EMPLOYED BY THE TAXPAYER DURING THE
TAXABLE YEAR ON A FULL-TIME BASIS OF THIRTY-FIVE HOURS OR MORE  OF  WORK
PER  WEEK.  THE  CREDIT PROVIDED BY THE SUBDIVISION MAY ONLY BE CLAIMED,
WITH REGARD TO ANY COMBAT VETERAN, DURING THE FIRST  TWO  TAX  YEARS  OF
SUCH VETERANS' EMPLOYMENT BY THE TAXPAYER.
  (D) CARRYOVER. THE CREDIT ALLOWED PURSUANT TO THIS SUBDIVISION FOR ANY
TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
AMOUNT  PRESCRIBED  IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION.
HOWEVER, IF THE AMOUNT OF CREDIT ALLOWABLE UNDER  THIS  SUBDIVISION  FOR
ANY  TAXABLE  YEAR  REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT
NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING
YEAR OR YEARS, AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
OR YEARS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15869-01-2

S. 7439                             2

  S 2. 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) CREDIT FOR EMPLOYMENT      AMOUNT OF CREDIT FOR
OF COMBAT VETERANS UNDER           EMPLOYMENT OF COMBAT
SUBSECTION (UU)                    VETERANS UNDER SUBDIVISION
                                   FORTY-FIVE OF SECTION
                                   TWO HUNDRED TEN
S  3.   Section 606 of the tax law is amended by adding a new subsection
(uu) to read as follows:
  (UU) CREDIT FOR EMPLOYMENT OF COMBAT VETERANS. (1) ALLOWANCE OF  CRED-
IT.  A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN
THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR  EMPLOYING
WITHIN THE STATE A COMBAT VETERAN.
  (2)  COMBAT  VETERAN.  A  COMBAT VETERAN IS A PERSON WHO SERVED IN THE
ARMED FORCES OF THE UNITED STATES WITHIN TWO YEARS OF COMMENCING EMPLOY-
MENT BY THE TAXPAYER, WHO SERVED IN A COMBAT ZONE AS DESIGNATED  BY  THE
DEPARTMENT OF DEFENSE, AND WHO HAS BEEN HONORABLY DISCHARGED OR RELEASED
UNDER  HONORABLE  CIRCUMSTANCES  FROM  SUCH SERVICE OR FURLOUGHED TO THE
RESERVE.
  (3) AMOUNT OF CREDIT. THE AMOUNT  OF  CREDIT  SHALL  BE  SIX  THOUSAND
DOLLARS  FOR  EACH  COMBAT  VETERAN  EMPLOYED BY THE TAXPAYER DURING THE
TAXABLE YEAR ON A FULL-TIME BASIS OF THIRTY-FIVE HOURS OR MORE  OF  WORK
PER  WEEK.  THE  CREDIT PROVIDED BY THIS SUBSECTION MAY ONLY BE CLAIMED,
WITH REGARD TO ANY COMBAT VETERAN, DURING THE FIRST TWO TAXABLE YEARS OF
SUCH VETERAN'S EMPLOYMENT BY THE TAXPAYER.
  (4) CARRYOVER. THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION FOR  ANY
TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
AMOUNT  PRESCRIBED  IN PARAGRAPH FIVE OF SUBSECTION (O) OF THIS SECTION.
HOWEVER, IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION FOR ANY
TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT  OF  CREDIT  NOT
DEDUCTIBLE  IN  SUCH  TAXABLE  YEAR MAY BE CARRIED OVER TO THE FOLLOWING
YEAR OR YEARS, AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR
OR YEARS.
  S 4. This act shall take effect immediately and shall apply to taxable
years commencing on or after January 1, 2012.

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