senate Bill S1589

Relates to the employment of New York state residents by taxpayers eligible to receive certain tax credits

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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

  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Provides that a taxpayer shall not be eligible for any credit or credits provided by section 210 of the tax law for the purposes of engaging in a development project, the cost of which exceeds one million dollars, unless such taxpayer has submitted a statement that 85% of the labor force hired to complete such development project consists of residents of this state.

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Bill Details

Versions:
S1589
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยง210, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
S6538

Sponsor Memo

BILL NUMBER:S1589

TITLE OF BILL:
An act
to amend the tax law, in relation to the employment of New York state
residents by taxpayers eligible to receive
certain tax credits

PURPOSE:
To encourage the hiring of New York State residents by taxpayers
eligible to receive certain tax credits.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1(a) requires any taxpayer seeking certain tax, credits for
the purpose of engaging in a development project, the cost of which
exceeds one million dollars, to certify that 85% of the labor force
hired to complete such development project consists of New York State
residents.

Section 1(b) provides certain exemptions for a taxpayer subject to
this subdivision.

Section 2 provides the effective date.

JUSTIFICATION:
New York state residents have suffered high unemployment and
significant financial hardship as a result of the recession.
Large-scale development projects provide a critical opportunity for
resident laborers across the state to provide their services. All too
often, however, local labor
resources are overlooked in favor of out-of-state laborers. New York
offers generous tax credits to taxpayers to engage in multi-million
dollar development projects, in an effort to promote economic
development and jobs. Developers receiving this benefit have an
obligation to "pay back" New York by hiring qualified and available
state workers. This bill would therefore require hiring a labor force
of at least 85% New York residents to complete a development project
exceeding $1 million in order to receive tax credits from the State,
subject to exemptions specified in the bill.

PRIOR LEGISLATIVE HISTORY:

S.6538 of 2011-2012; Referred to Investigations and Government
Operations

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law and shall apply to any credit claimed on or after such
effective date.

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

                                  1589

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. GRISANTI -- 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 the employment of  New  York
  state residents by taxpayers eligible to receive certain tax credits

  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 46 to read as follows:
  46.  EMPLOYMENT  OF NEW YORK STATE RESIDENTS. (A) A TAXPAYER SHALL NOT
BE ENTITLED TO RECEIVE ANY CREDIT OR CREDITS PROVIDED  BY  THIS  SECTION
FOR  THE PURPOSE OF ENGAGING IN A DEVELOPMENT PROJECT, THE COST OF WHICH
EXCEEDS ONE MILLION DOLLARS, UNLESS SUCH TAXPAYER HAS  SUBMITTED,  ON  A
FORM  AND  IN  A  MANNER  TO  BE DETERMINED BY THE COMMISSIONER, A SWORN
STATEMENT IN WRITING, UNDER OATH, ALONG WITH SUCH SUPPORTING  DOCUMENTA-
TION  AS  THE  COMMISSIONER MAY REQUIRE, THAT EIGHTY-FIVE PERCENT OF THE
LABOR FORCE HIRED TO COMPLETE SUCH DEVELOPMENT PROJECT DURING THE  TAXA-
BLE YEAR FOR WHICH SUCH STATEMENT IS SUBMITTED CONSISTED OF RESIDENTS OF
THIS  STATE.    FOR  PURPOSES OF THIS SUBDIVISION, "DEVELOPMENT PROJECT"
SHALL MEAN THE REHABILITATION, IMPROVEMENT, CONSTRUCTION OR ACQUISITION,
SINGLY OR IN COMBINATION, OF ONE OR MORE BUILDINGS OR STRUCTURES.
  (B) NOTWITHSTANDING THE FOREGOING, A TAXPAYER SUBJECT TO THIS SUBDIVI-
SION MAY RECEIVE ANY CREDIT PROVIDED BY THIS  SECTION  IF  IT  CAN  SHOW
THAT:
  (I)  IT  MADE DILIGENT EFFORTS TO HIRE RESIDENT EMPLOYEES, BUT NO SUCH
EMPLOYEES EXISTED OR WERE QUALIFIED FOR THE EMPLOYMENT POSITION;
  (II) THE EMPLOYMENT POSITION REQUIRES  SPECIALIZED  TALENTS  THAT  CAN
ONLY  BE  FILLED BY INDIVIDUALS WHO HAPPEN TO RESIDE OUTSIDE THIS STATE;
OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04714-01-3

S. 1589                             2

  (III) AT THE TIME OF SUCH SUBMISSION, A LABOR FORCE HAS NOT  YET  BEEN
HIRED  TO  COMPLETE THE DEVELOPMENT PROJECT BUT THAT EIGHTY-FIVE PERCENT
OF THE LABOR FORCE THAT SUCH TAXPAYER INTENDS TO HIRE  IN  THE  UPCOMING
TAXABLE YEAR OR YEARS WILL CONSIST OF RESIDENTS OF THIS STATE.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law and shall apply to any credit claimed on or after such
effective date.

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