senate Bill S2117B

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 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 21 / May / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 06 / Jun / 2013
    • AMEND AND RECOMMIT TO FINANCE
  • 06 / Jun / 2013
    • PRINT NUMBER 2117A
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 28 / Jan / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 28 / Jan / 2014
    • PRINT NUMBER 2117B

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:
A806B
Versions:
S2117
S2117A
S2117B
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยงยง210 & 606, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S3999A, A10121
2009-2010: S5264B

Sponsor Memo

BILL NUMBER:S2117B

TITLE OF BILL: An act to amend the tax law, in relation to a jobs
development incentive income tax credit available to employers who
employ individuals previously receiving unemployment benefits

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

SUMMARY OF SPECIFIC PROVISIONS: SECTION 1 - amends Tax Law Section 210
relating to franchise taxes on business corporations, to add a new
subdivision 48 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 (xx) 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 (xxxvii) providing for an employment incentive tax credit under
subsection (xx) in the amount of the credit under subdivision 48 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 econ-
omy 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 accom-
plishes 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 indi-
viduals.

FISCAL IMPLICATIONS: To be determined.

LEGISLATIVE HISTORY: 2009 - S.5264-A -- LABOR 2010 - S.5264-B/A.10085-B
-- LABOR/Labor 2011-2012 - S.3999-A/A.10121 - PASSED SENATE/Labor 2013 -
S.2117-A/A.806-A - FINANCE/Labor

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
________________________________________________________________________

                                 2117--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 11, 2013
                               ___________

Introduced by Sens. RANZENHOFER, BONACIC, DeFRANCISCO, GALLIVAN, LARKIN,
  MAZIARZ  --  read  twice  and  ordered printed, and when printed to be
  committed to the Committee on Investigations and Government Operations
  -- reported favorably from said committee and committed to the Commit-
  tee  on  Finance  --  committee  discharged,  bill  amended,   ordered
  reprinted  as amended and recommitted to said committee -- 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  commit-
  tee

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 48 to read as follows:
  48.  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;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02562-04-4

S. 2117--B                          2

  (IV)  IS  CURRENTLY RECEIVING UNEMPLOYMENT COMPENSATION BENEFITS AS OF
THE DATE OF EMPLOYMENT; AND
  (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
(xx) to read as follows:
  (XX)  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 UNEMPLOYMENT COMPENSATION  BENEFITS  AS  OF
THE DATE OF EMPLOYMENT; AND
  (E)  SUCH  BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING ACCOUNT OF
AN EMPLOYER UNDER THIS ARTICLE; OR

S. 2117--B                          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  (xxxvii)  to  read  as
follows:
(XXXVII) JOBS DEVELOPMENT INCENTIVE  AMOUNT OF CREDIT UNDER
TAX CREDIT UNDER SUBSECTION (XX)     SUBDIVISION FORTY-EIGHT OF SECTION
                                     TWO HUNDRED TEN OF THIS CHAPTER
  S 4. This act shall take effect immediately.

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