senate Bill S7661

Establishes a hire-now veterans tax credit

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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

  • 12 / Jun / 2012
    • REFERRED TO RULES
  • 18 / Jun / 2012
    • ORDERED TO THIRD READING CAL.1293
  • 18 / Jun / 2012
    • PASSED SENATE
  • 18 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 18 / Jun / 2012
    • REFERRED TO WAYS AND MEANS

Summary

Establishes a hire-now tax credit.

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Bill Details

Versions:
S7661
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
Tax Law
Laws Affected:
Add §37, amd §§210 & 606, Tax L

Sponsor Memo

BILL NUMBER:S7661

TITLE OF BILL:

An act
to amend the tax law, in relation to establishing a
hire-now veterans tax credit

PURPOSE:

To enact a Hire-Now tax credit and an additional incentive for hiring
a Veteran.

SUMMARY OF PROVISIONS:

"HIRE-NOW-NY" TAX INCENTIVE: Our Hire-Now-NY proposal includes direct
incentives for each new job employers create, a business would get a
tax credit of up to $5,000 per employee for a maximum of three years.
The credit will equal 6.85 percent of wages paid to the employee. The
hires must be new employees. In order to qualify for the Hire-Now
credit the employee must be hired by April 1, 2013 to encourage a
quick boost in jobs.

"HIRE-A-VET" ENHANCED CREDIT - This bill would provide an enhanced tax
credit of up to $10,000 to any business that hires a veteran
returning home from military service. The new employee must be
employed full time for a full year to qualify for the additional
$5,000 credit.

JUSTIFICATION:

The unemployment rate for New York's veterans is nearly 30 percent.
This bill will help create thousands of new private sector jobs by
offering direct incentives to employers to hire our returning veterans.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:

This will save employers $30 million in SFY 2013-14.

EFFECTIVE DATE:

Effective immediately.

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

                                  7661

                            I N  S E N A T E

                              June 12, 2012
                               ___________

Introduced  by  Sen.  BALL  --  read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the tax law, in  relation  to  establishing  a  hire-now
  veterans tax credit

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  The tax law is amended by adding a new section 37 to  read
as follows:
  S  37. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER, WHICH
IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER AND
WHICH CREATES A NEW JOB, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX. THE
AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE  EQUAL  TO  THE
PRODUCT  OF 6.85 PERCENT AND THE GROSS WAGES PAID FOR EACH NEW EMPLOYEE.
THE CREDIT SHALL NOT BE MORE THAN FIVE  THOUSAND  DOLLARS  FOR  ANY  NEW
EMPLOYEE  FOR  ONE  FULL  YEAR OF EMPLOYMENT; IF A NEW EMPLOYEE HAS BEEN
HIRED FOR LESS THAN A FULL TAX YEAR THIS AMOUNT SHALL  BE  PRORATED  AND
APPORTIONED TO EACH TAX YEAR BUT SHALL IN NO WAY DECREASE THE FULL THREE
CONSECUTIVE  YEARS  OF  CREDIT  ELIGIBILITY. THE TAXPAYER MAY CLAIM THIS
CREDIT FOR EACH NEW EMPLOYEE FOR A PERIOD OF THREE CONSECUTIVE YEARS  OF
EMPLOYMENT.    THE  TAXPAYER  MAY OFFSET QUARTERLY ESTIMATED TAX RETURNS
WITH THE AMOUNT OF THIS CREDIT EARNED IN ANY PREVIOUS QUARTER.
  (B) HIRE-A-VET ENHANCEMENT.  FOR CALENDAR YEARS TWO THOUSAND  THIRTEEN
AND  TWO  THOUSAND FOURTEEN IF A NEW EMPLOYEE WAS RECEIVING UNEMPLOYMENT
INSURANCE BENEFITS AT THE TIME OF HIRE AND IS ALSO A VETERAN,  AN  ADDI-
TIONAL  FIVE  THOUSAND  DOLLAR CREDIT WILL BE ALLOWED FOR THE FIRST FULL
YEAR OF EMPLOYMENT.
  (C) DEFINITIONS. AS USED IN THIS SECTION, THE  FOLLOWING  TERMS  SHALL
HAVE THE FOLLOWING MEANINGS:
  (1)  "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT IS HIRED BY
THE TAXPAYER AFTER JULY FIRST, TWO  THOUSAND  TWELVE  AND  BEFORE  APRIL
FIRST,  TWO THOUSAND THIRTEEN, THAT CAUSES THE TOTAL NUMBER OF EMPLOYEES
TO INCREASE ABOVE BASE EMPLOYMENT OR  CREDIT  EMPLOYMENT,  WHICHEVER  IS
HIGHER.
  (2) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND TWELVE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14994-09-2

S. 7661                             2

  (3)  "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.
  (4)  "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED FOR THE PRIOR TAX YEARS.
  (5) "VETERAN" SHALL MEAN A RESIDENT OF THIS STATE, WHO HAS  SERVED  ON
ACTIVE  DUTY  IN THE UNTIED STATES ARMY, NAVY, AIR FORCE, MARINES, COAST
GUARD, AND/OR RESERVES THEREOF, AND/OR  THE  ARMY  NATIONAL  GUARD,  AIR
NATIONAL  GUARD,  NEW  YORK GUARD AND/OR THE NEW YORK NAVAL MILITIA, AND
WHO IS CURRENTLY IN SERVICE, OR HAS BEEN RELEASED FROM SUCH  SERVICE  BY
HONORABLE  DISCHARGE,  OR WHO HAS BEEN FURLOUGHED TO THE RESERVE AND WHO
SERVED IN A WAR, ARMED CONFLICT AND/OR OTHER HOSTILITIES.
  (D) REPLACEMENT EMPLOYEES. IF A NEW EMPLOYEE FOR WHICH  A  CREDIT  WAS
EARNED  LEAVES  THE  PAYROLL AND AN EMPLOYEE IS HIRED WHICH BRINGS TOTAL
EMPLOYMENT ABOVE BASE EMPLOYMENT  BUT  AT  OR  BELOW  CREDIT  EMPLOYMENT
LEVEL,  THE  CREDIT  ELIGIBILITY PERIOD FOR SUCH EMPLOYEE SHALL BE THREE
YEARS MINUS THE AMOUNT OF TIME (ROUNDED TO  THE  NEXT  FULL  MONTH)  THE
EMPLOYER RECEIVED THE CREDIT FOR THE DEPARTING EMPLOYEE.
  (E)  NO  CREDIT  SHALL BE ALLOWED UNDER THIS SECTION TO A TAXPAYER FOR
ANY NEW EMPLOYEE IF THE TAXPAYER CLAIMS  ANY  OTHER  CREDIT  UNDER  THIS
ARTICLE FOR SUCH NEW EMPLOYEE WHERE THE BASIS OF SUCH OTHER CREDIT IS AN
INCREASE IN EMPLOYMENT.
  S 2. Section 210 of the tax law is amended by adding a new subdivision
45 to read as follows:
  45.  HIRE-NOW  TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WILL BE
ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-SEVEN  OF
THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH  YEAR  TO  LESS
THAN  THE  HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF
SUBDIVISION ONE OF THIS  SECTION.  HOWEVER,  IF  THE  AMOUNT  OF  CREDIT
ALLOWED  UNDER  THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE  IN  SUCH  TAXABLE
YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED
IN  ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF
THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS  OF  SUBSECTION  (C)  OF
SECTION  ONE  THOUSAND  EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO
INTEREST WILL BE PAID THEREON.
  S 3. Section 606 of the tax law is amended by adding a new  subsection
(uu) to read as follows:
  (UU)  HIRE-NOW TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED A CREDIT, TO
THE EXTENT ALLOWED UNDER SECTION THIRTY-SEVEN OF THIS  CHAPTER,  AGAINST
THE TAX IMPOSED BY THIS ARTICLE.
  (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS  OF  SECTION  SIX  HUNDRED
EIGHTY-SIX  OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL BE
PAID THEREON.
  S 4. 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) HIRE-NOW TAX CREDIT             AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (UU)                   SUBDIVISION FORTY-FIVE OF SECTION
                                        TWO HUNDRED TEN
  S 5. This act shall take effect immediately.

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