senate Bill S3738B

Establishes a small business tax credit for the employment of persons fifty-five years of age and older

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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

  • 13 / Feb / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 26 / Apr / 2013
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 26 / Apr / 2013
    • PRINT NUMBER 3738A
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 12 / Feb / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 12 / Feb / 2014
    • PRINT NUMBER 3738B

Summary

Establishes a small business tax credit for the employment of persons fifty-five years of age and older.

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Bill Details

See Assembly Version of this Bill:
A6767A
Versions:
S3738
S3738A
S3738B
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 2011-2012 Legislative Cycle:
S4108A, S4108A

Sponsor Memo

BILL NUMBER:S3738B

TITLE OF BILL: An act to amend the tax law, in relation to
establishing a small business tax credit for the employment of persons
fifty-five years of age or older

PURPOSE: To stimulate employment of persons fifty-five or older who
face unprecedented challenges in reentering the workforce or
continuing employment.

SUMMARY OF PROVISIONS:

Section 1: Amendment to section 210, subdivision 48 of the tax law,
for the providence of a business tax credit for the employer in
regards to employment of persons age fifty-five or older for the
duration of twelve months or more, and for thirty-five hours or more
per week. Tax credit range will range between five thousand to
twenty-five thousand dollars.

Section 2: The adoption of a new clause (xxxvii) in section 606 of the
tax law, specifying preceded amendment.

Section 3: Amendment to section 606 of the tax law, detailing the
components of the business tax credit for the employment of persons
fifty-five or older in a company of one hundred employees or less.

JUSTIFICATION: Although the rate of unemployment among older workers
is lower than that for their younger counterparts, as explained by the
Bureau of Labor Statistics, older persons who do become unemployed
spend more time searching for work. A February 2010 study found older
workers were unemployed for an average of thirty-six weeks, compared
to twenty-three weeks for persons aged sixteen through twenty-four,
and thirty weeks for persons aged twenty-five through fifty-four.
Older workers often encounter challenges when trying to remain or
reengage in the work force. Many of these challenges stem from
policies that were created years ago when there was a labor surplus,
before the recent shifts to a knowledge-based economy and trends in
population demographics.

As cost-of-living expenses increase, the financial needs and desires
of older workers is compromised, leaving older workers no other viable
option but to return to the workforce or continue employment. Home
values, often a family's most important asset, have plummeted.
Additionally, an April 2010 Gallup poll found more than a third of
people plan to work beyond age sixty-five, compared to twelve percent
in 1995.

Offering tax credit incentives to small businesses that employ persons
ages fifty-five or older will keep older residents from leaving the
state, whereby further contributing to the economic upheaval of the
state and the sharing of wisdom from an older workforce to a younger
generation.

LEGISLATIVE HISTORY: 2013: S. 3738A - Referred to Investigations and
Government Operations.

FISCAL IMPLICATIONS: To be determined.


EFFECTIVE DATE: Shall take effect immediately and apply to taxable
years beginning on or after January 1, 2015.

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

                                 3738--B

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 13, 2013
                               ___________

Introduced  by  Sen. ADDABBO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment  Operations  --  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 establishing a small busi-
  ness tax credit for the employment of persons fifty-five years of  age
  or older

  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.  SMALL  BUSINESS TAX CREDIT; PERSONS AGE FIFTY-FIVE OR OLDER.  (A)
GENERAL. A TAXPAYER WHO HAS ONE HUNDRED  EMPLOYEES  OR  LESS,  SHALL  BE
ALLOWED  A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED IN THIS SUBDIVISION,
AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR EACH PERSON  AGE  FIFTY-FIVE
OR  OLDER  HIRED  DURING  A  TAXABLE YEAR, PROVIDED THAT SUCH PERSON AGE
FIFTY-FIVE OR OLDER  IS EMPLOYED FOR THIRTY-FIVE HOURS OR MORE PER  WEEK
AND REMAINS IN THE EMPLOY OF SUCH TAXPAYER FOR TWELVE MONTHS OR MORE.
  (B)  AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL EQUAL
FIVE THOUSAND DOLLARS PER HIRED PERSON AGE FIFTY-FIVE OR OLDER BUT SHALL
NOT EXCEED TWENTY-FIVE THOUSAND DOLLARS.
  (C) CARRYOVERS. THE CREDIT  ALLOWED  UNDER  THIS  SUBDIVISION  MAY  BE
CLAIMED  AND  IF NOT FULLY USED IN THE INITIAL YEAR FOR WHICH THE CREDIT
IS CLAIMED MAY BE CARRIED OVER, IN ORDER, TO EACH OF THE FIVE SUCCEEDING
TAXABLE YEARS. THE CREDIT AUTHORIZED BY THIS SUBDIVISION MAY NOT BE USED
TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08261-04-4

S. 3738--B                          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 (xxxvii) to read as
follows:
(XXXVII) SMALL BUSINESS TAX CREDIT;  COSTS UNDER SUBDIVISION
PERSONS FIFTY-FIVE YEARS OF AGE OR   FORTY-EIGHT OF SECTION
OLDER UNDER SUBSECTION (XX)          TWO HUNDRED TEN
  S  3.    Subsections  (yy)  and (zz) of section 606 of the tax law, as
relettered by section 5 of part H of chapter 1 of the laws of 2003,  are
relettered  subsections  (yyy)  and  (zzz)  and a new subsection (xx) is
added to read as follows:
  (XX) SMALL BUSINESS TAX CREDIT; PERSONS AGE FIFTY-FIVE OR OLDER.   (A)
GENERAL.  A  TAXPAYER  WHO  HAS  ONE HUNDRED EMPLOYEES OR LESS, SHALL BE
ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST
THE TAX IMPOSED BY THIS ARTICLE FOR EACH PERSON AGE FIFTY-FIVE OR  OLDER
HIRED DURING A TAXABLE YEAR, PROVIDED THAT SUCH PERSON AGE FIFTY-FIVE OR
OLDER  IS EMPLOYED FOR THIRTY-FIVE HOURS OR MORE PER WEEK AND REMAINS IN
THE EMPLOY OF SUCH TAXPAYER FOR TWELVE MONTHS OR MORE.
  (B) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL  EQUAL
FIVE THOUSAND DOLLARS PER HIRED PERSON AGE FIFTY-FIVE OR OLDER BUT SHALL
NOT EXCEED TWENTY-FIVE THOUSAND DOLLARS.
  (C)  CARRYOVERS.  THE CREDIT ALLOWED IN THIS SUBSECTION MAY BE CLAIMED
AND IF NOT FULLY USED IN THE  INITIAL  YEAR  FOR  WHICH  THE  CREDIT  IS
CLAIMED  MAY  BE  CARRIED OVER, IN ORDER, TO EACH OF THE FIVE SUCCEEDING
TAXABLE YEARS.  THE CREDIT AUTHORIZED BY THIS SUBSECTION MAY NOT BE USED
TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO.
  S 4. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2015.

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