Senate Bill S5264

2009-2010 Legislative Session

Creates the New York jobs development credit and an employment incentive income tax credit available to employers who employ individuals previously receiving unemployment

download bill text pdf

Archive: Last Bill Status - In Senate Committee Labor Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 19, 2010	print number 5264b
May 19, 2010	amend (t) and recommit to labor
Mar 23, 2010	print number 5264a
Mar 23, 2010	amend (t) and recommit to labor
Jan 06, 2010	referred to labor
Apr 27, 2009	referred to labor

Bill Amendments

Original

B (Active)

co-Sponsors

View additional co-sponsors

2009-S5264 - Details

See Assembly Version of this Bill:: A10085
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §§210 & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S3999
2013-2014: S2117
2015-2016: S3701
2017-2018: S3783
2019-2020: S4857
2021-2022: S5141
2023-2024: S4841
2025-2026: S4268

2009-S5264 - Summary

Creates a job development incentive income tax credit available to employers who employ individuals previously receiving unemployment.

2009-S5264 - Sponsor Memo

                                 BILL NUMBER:  S5264

 TITLE OF BILL :  An act to amend the labor law, in relation to the
creation of a New York jobs development tax credit; and to amend the
tax law, in relation to an employment incentive income tax credit
available to employers who employ individuals previously receiving
unemployment benefits

 PURPOSE : This bill would give incentives, through unemployment tax
credits and income tax credits, to businesses who hire individuals
currently receiving unemployment benefits

 SUMMARY OF SPECIFIC PROVISIONS : Section 1 - provides that the
Commissioner of Labor shall make a request within fifteen days of the
effective date of this act for a determination by the United States
Secretary of Labor that implementation of sections 2,3,4 and 5 are in
conformity with federal law.

Section 2 - adds a new Labor Law section 582, relating to unemployment
insurance taxes, called the New York Jobs Development Tax Credit. The
credit against unemployment insurance payments will be not less than
$25 and not more than $125 per individual employee per calendar
quarter, as determined by the Commissioner based upon his or her
evaluation of the condition of the New York Labor market, state of the
economy and the statewide reserve ratio. The credit may be claimed by
an employer for up to four calendar quarters with respect to an

individual hired by that employer who

(a) has filed a claim for unemployment compensation and is currently
receiving weekly unemployment compensation benefits and such benefits
are chargeable to the experience rating account of an employer under
Title 7 of the Labor Law;

(b) has been profiled by the Department as likely to exhaust benefits;

(c) has no return to work date or promise of future employment; and

(d) has at least 8 weeks of benefit eligibility remaining at the time
the individual is hired.

The credit is claimed on reports filed under Tax Law section 674.

Section 3 - amends Labor Law section 210, relating to franchise taxes
on business corporations, to add a new subdivision 41 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 4 - amends Tax Law section 606, relating to personal income
taxes, by adding a new subsection (qq) granting an employee incentive
tax credit in the amount of $2,400 per creditable employee, as defined
in the section.

Section 5 - amends subparagraph (13) of paragraph 1 of subsection (i)
of section 606 of the Tax Law, relating to S corporations, by adding a
new clause (xxxi) providing for an employment incentive tax credit
under subsection (qq) in the amount of the credit under subdivision
412 of section 210.

Section 6 - Effective date.

 CURRENT LAW :  There are many tax credits available to individuals
and businesses to promote activity that benefit the state.

 JUSTIFICATION : The economic meltdown that has engulfed the world's
economy 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 accomplishes both of these purposes. The bill offers incentives
to employers to rehire workers who have lost their jobs and are on
unemployment with a twofold approach.

First, credits are offered to employers on their unemployment
insurance taxes for hiring individuals who (a) are unemployed; (b) are
laid off from New York employers; (c) are profiled as likely to
exhaust benefits; (d) have no return to work date or promise of future
employment; and (e) have at least eight weeks of unemployment
eligibility remaining.

Secondly, tax credits of up to $2,400 are offered to employers,
whether corporate, individual or an S corporation, for hiring
unemployed persons who meet specified criteria. The employee must (a)
be employed for the first time after the effective date of this bill;
(b) have been unemployed for at least 4 weeks immediately prior to
becoming employed; (c) remain employed by the employer for at least 24
months; and (d) during the entire period of employment, receive
monthly compensation at least equal to the average monthly employment
compensation benefit being paid to persons receiving employment
compensation benefits in the state.

This bill offers meaningful incentive to hire new employees from the
ranks of the unemployed, and offers new employment opportunity to
individuals who might otherwise have little hope of returning to work
in the foreseeable future.

 FISCAL IMPLICATIONS : To be determined.

 LEGISLATIVE HISTORY : New bill

 EFFECTIVE DATE : This act shall take effect immediately, provided
however that sections two, three, four and five of this act shall take
effect upon written notification by the United States Secretary of
Labor that the provisions of this act are in conformity with federal
law, pursuant to section one of this act.

2009-S5264 - Bill Text download pdf

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

                                  5264

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

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

AN ACT to amend the labor law, in relation to the creation of a New York
  jobs development tax credit; and to amend the tax law, in relation  to
  an  employment  incentive income tax credit available to employers who
  employ individuals previously receiving unemployment benefits

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

  Section  1.  The  commissioner of labor of the state of New York shall
make a request within fifteen days of the effective date of this act for
a determination by the United States secretary of labor that implementa-
tion of sections two, three, four and five of this act are in conformity
with federal law.
  S 2. The labor law is amended by adding a new section 582 to  read  as
follows:
  S  582.  NEW YORK JOBS DEVELOPMENT TAX CREDIT. THERE SHALL BE A CREDIT
TO BE KNOWN AS THE "NEW YORK JOBS DEVELOPMENT TAX CREDIT". THE AMOUNT OF
THE CREDIT SHALL NOT BE LESS THAN TWENTY-FIVE DOLLARS AND NOT MORE  THAN
ONE  HUNDRED  TWENTY-FIVE  DOLLARS  PER INDIVIDUAL EMPLOYEE PER CALENDAR
QUARTER. THE DETERMINATION OF THE  AMOUNT  OF  THE  CREDIT,  WITHIN  THE
PERMISSIBLE RANGE, SHALL BE MADE AND PERIODICALLY REVISED BY THE COMMIS-
SIONER  BASED  ON THE COMMISSIONER'S EVALUATION OF CONDITIONS IN THE NEW
YORK LABOR MARKET, THE STATE OF THE ECONOMY, AND THE STATE-WIDE  RESERVE
RATIO.  THE CREDIT MAY BE CLAIMED BY AN EMPLOYER FOR UP TO FOUR CALENDAR
QUARTERS WITH RESPECT TO  AN  INDIVIDUAL  HIRED  BY  THAT  EMPLOYER  FOR
SERVICES TO BE PERFORMED IN THIS STATE UNDER THE FOLLOWING CONDITIONS:
  1. SUCH INDIVIDUAL:
  (A)  HAS FILED A CLAIM FOR UNEMPLOYMENT COMPENSATION IN THIS STATE AND
IS CURRENTLY RECEIVING WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS ON THAT
CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE  EIGHTEEN  OF  THIS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11574-01-9

S. 5264                             2

CHAPTER  AND  SUCH  BENEFITS  ARE  CHARGEABLE  TO  THE EXPERIENCE RATING
ACCOUNT OF AN EMPLOYER UNDER THIS TITLE;
  (B) HAS BEEN PROFILED BY THE DEPARTMENT AS LIKELY TO EXHAUST BENEFITS;
  (C) HAS NO RETURN TO WORK DATE OR PROMISE OF FUTURE EMPLOYMENT; AND
  (D)  HAS  AT LEAST EIGHT WEEKS OF BENEFIT ELIGIBILITY REMAINING ON HIS
OR HER CURRENT CLAIM AT THE TIME THE EMPLOYER HIRES THE INDIVIDUAL;
  2. THE CREDIT FOR EACH HIRED INDIVIDUAL PER CALENDAR  QUARTER  MAY  BE
CLAIMED  ON  THE  REPORTS REQUIRED TO BE FILED UNDER SECTION SIX HUNDRED
SEVENTY-FOUR OF THE TAX LAW AS A REDUCTION FROM  AMOUNTS  OTHERWISE  DUE
WITH RESPECT TO EACH OF THE FOUR CALENDAR QUARTERS IMMEDIATELY FOLLOWING
THE  HIRE DATE OF THE INDIVIDUAL; PROVIDED, HOWEVER, THAT THE CREDIT MAY
NOT BE CLAIMED FOR ANY HIRED INDIVIDUAL WITH RESPECT TO  MORE  THAN  ONE
HIRING  BY THE EMPLOYER CLAIMING THE CREDIT OR FOR MORE THAN FOUR CALEN-
DAR QUARTERS WITH RESPECT TO THAT ONE HIRING;
  3. FOR EACH CALENDAR QUARTER FOR WHICH THE  CREDIT  IS  CLAIMED,  SUCH
INDIVIDUAL  SHALL  BE CONTINUOUSLY EMPLOYED BY THE EMPLOYER CLAIMING THE
CREDIT, AND  SUCH  INDIVIDUAL'S  EMPLOYMENT  WITH  THAT  EMPLOYER  SHALL
CONSIST  OF  AT  LEAST  THIRTY  HOURS  PER WEEK DURING EACH WEEK OF THAT
CALENDAR QUARTER;
  4. THE CREDIT SHALL BE TIMELY CLAIMED  FOR  THE  CALENDAR  QUARTER  TO
WHICH  THE CREDIT IS APPLICABLE, AND IN NO EVENT LATER THAN THE LAST DAY
OF THE REPORTING MONTH FOLLOWING THE END  OF  THE  CALENDAR  QUARTER  TO
WHICH  THE CREDIT IS APPLICABLE. THE CREDIT SHALL NOT BE REFUNDABLE. THE
CREDIT SHALL NOT REDUCE TAX LIABILITY  BELOW  ZERO;  PROVIDED,  HOWEVER,
THAT  THE CREDIT, IF PROPERLY AND TIMELY CLAIMED, MAY BE CARRIED FORWARD
AND APPLIED AGAINST CONTRIBUTIONS DUE IN ANY SUBSEQUENT CALENDAR QUARTER
IN THE SAME CALENDAR YEAR AS CLAIMED. ANY UNUSED CREDIT REMAINING AT THE
END OF A CALENDAR YEAR MAY NOT BE CARRIED FORWARD  TO  ANOTHER  CALENDAR
YEAR AND SHALL BE DEEMED TO HAVE EXPIRED; AND
  5.  NO  CREDIT  SHALL BE CLAIMED OR TAKEN BY ANY EMPLOYER WHO FAILS TO
TIMELY FILE ANY REPORT OR TO TIMELY PAY ALL AMOUNTS  OTHERWISE  DUE  FOR
ALL  CALENDAR  QUARTERS DURING THE CALENDAR YEAR FOR WHICH THE CREDIT IS
CLAIMED. IN THE EVENT AN  EMPLOYER  HAS  CLAIMED  A  CREDIT  UNDER  THIS
SECTION AND FAILS TO TIMELY FILE ANY REPORT OR TO TIMELY PAY ALL AMOUNTS
OTHERWISE  DUE  DURING THE YEAR THE CREDIT IS CLAIMED, THE AMOUNT OF ANY
CREDITS CLAIMED WITH RESPECT TO THE CALENDAR YEAR SHALL BE CANCELED  AND
BECOME  DELINQUENT  AS  OF  THE  DATE  ORIGINALLY  DUE UNDER SECTION SIX
HUNDRED SEVENTY-FOUR OF THE TAX LAW AND SUBJECT TO ALL THE PROVISIONS OF
THIS ARTICLE AS IF NO CREDIT HAD EVER BEEN AVAILABLE OR CLAIMED.
  S 3. Section 210 of the tax law is amended by adding a new subdivision
41 to read as follows:
  41. EMPLOYMENT 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 AN EMPLOYEE OF AN EMPLOYER WHO:
  (I) RESIDES IN THE STATE;
  (II) IS EMPLOYED BY THE EMPLOYER FOR THE FIRST TIME ON  OR  AFTER  THE
EFFECTIVE DATE OF THIS SUBDIVISION AND PRIOR TO JULY FIRST, TWO THOUSAND
TEN;
  (III) WAS UNEMPLOYED AT LEAST FOUR WEEKS IMMEDIATELY PRIOR TO BECOMING
SO EMPLOYED;

S. 5264                             3

  (IV) REMAINS EMPLOYED BY THE EMPLOYER FOR AT LEAST TWENTY-FOUR CONSEC-
UTIVE MONTHS; AND
  (V)  DURING  THE  ENTIRE  PERIOD  OF  SUCH EMPLOYMENT RECEIVES MONTHLY
COMPENSATION IN AN AMOUNT AT LEAST EQUAL TO THE AVERAGE MONTHLY  EMPLOY-
MENT  COMPENSATION  BENEFIT PAID TO PERSONS RECEIVING EMPLOYMENT COMPEN-
SATION BENEFITS IN THIS STATE.
  (D) FOR THE PURPOSES OF THIS SUBDIVISION,  "STAFFING  FIRM"  MEANS  AN
ORGANIZATION  THAT  HIRES ITS OWN EMPLOYEES AND ASSIGNS THEM TO A CLIENT
TO SUPPORT OR SUPPLEMENT THE CLIENT'S WORK FORCE IN SPECIAL  WORK  SITU-
ATIONS  SUCH  AS  EMPLOYEE ABSENCES, TEMPORARY SKILL SHORTAGES, SEASONAL
WORKLOADS, AND SPECIAL ASSIGNMENTS AND PROJECTS.
  (E) AN EMPLOYER WHO HAS ONE  OR  MORE  CREDITABLE  EMPLOYEES  AND  WHO
PROVIDES  A  NOTARIZED AFFIDAVIT ATTESTING TO USE OF THE FEDERAL EMPLOY-
MENT VERIFICATION SYSTEM NOW KNOWN AS 'E-VERIFY' OR ANY  FUTURE  FEDERAL
EMPLOYMENT  VERIFICATION  SYSTEM  SHALL  BE  ELIGIBLE  TO  APPLY FOR AND
RECEIVE THE CREDIT ESTABLISHED IN THIS SUBDIVISION. 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 TWO 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; AND SUCH RULES SHALL
SPECIFICALLY PROVIDE FOR  THE  MANNER  OF  ESTABLISHING  THE  QUALIFYING
STATUS  OF UNEMPLOYMENT OF THE EMPLOYEE PRIOR TO EMPLOYMENT. THE AVERAGE
MONTHLY EMPLOYMENT SECURITY BENEFIT SHALL BE COMPUTED ON A MONTHLY BASIS
BY THE UNITED STATES COMMISSIONER OF LABOR.
  (H) FOR THE PURPOSE OF DETERMINING WHETHER AN EMPLOYEE IS EMPLOYED  BY
THE  EMPLOYER  UNDER  PARAGRAPH  (C) OF THIS SUBDIVISION, EMPLOYMENT MAY
INCLUDE UP TO THIRTEEN WEEKS CONTINUOUS PRIOR SERVICE FOR  THE  EMPLOYER
AS A TEMPORARY EMPLOYEE OF A STAFFING FIRM.
  S  4. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ) EMPLOYMENT 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  SUBSECTION
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 SUBSECTION, "CREDITABLE  EMPLOYEE"  SHALL
MEAN AN EMPLOYEE OF AN EMPLOYER WHO:
  (I) RESIDES IN THE STATE;
  (II)  IS  EMPLOYED  BY THE EMPLOYER FOR THE FIRST TIME ON OR AFTER THE
EFFECTIVE DATE OF THIS SUBSECTION AND PRIOR TO JULY FIRST, TWO  THOUSAND
TEN;
  (III) WAS UNEMPLOYED AT LEAST FOUR WEEKS IMMEDIATELY PRIOR TO BECOMING
SO EMPLOYED;
  (IV) REMAINS EMPLOYED BY THE EMPLOYER FOR AT LEAST TWENTY-FOUR CONSEC-
UTIVE MONTHS; AND
  (V)  DURING  THE  ENTIRE  PERIOD  OF  SUCH EMPLOYMENT RECEIVES MONTHLY
COMPENSATION IN AN AMOUNT AT LEAST EQUAL TO THE AVERAGE MONTHLY  EMPLOY-

S. 5264                             4

MENT  COMPENSATION  BENEFIT PAID TO PERSONS RECEIVING EMPLOYMENT COMPEN-
SATION BENEFITS IN THIS STATE.
  (D)  FOR  THE  PURPOSES  OF  THIS SUBSECTION, "STAFFING FIRM" MEANS AN
ORGANIZATION THAT HIRES ITS OWN EMPLOYEES AND ASSIGNS THEM TO  A  CLIENT
TO  SUPPORT  OR SUPPLEMENT THE CLIENT'S WORK FORCE IN SPECIAL WORK SITU-
ATIONS SUCH AS EMPLOYEE ABSENCES, TEMPORARY  SKILL  SHORTAGES,  SEASONAL
WORKLOADS, AND SPECIAL ASSIGNMENTS AND PROJECTS.
  (E)  AN  EMPLOYER  WHO  HAS  ONE  OR MORE CREDITABLE EMPLOYEES AND WHO
PROVIDES A NOTARIZED AFFIDAVIT ATTESTING TO USE OF THE  FEDERAL  EMPLOY-
MENT  VERIFICATION  SYSTEM NOW KNOWN AS 'E-VERIFY' OR ANY FUTURE FEDERAL
EMPLOYMENT VERIFICATION SYSTEM  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.
  (F)  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 TWO 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;  AND  SUCH  RULES  SHALL
SPECIFICALLY  PROVIDE  FOR  THE  MANNER  OF  ESTABLISHING THE QUALIFYING
STATUS OF UNEMPLOYMENT OF THE EMPLOYEE PRIOR TO EMPLOYMENT. THE  AVERAGE
MONTHLY EMPLOYMENT SECURITY BENEFIT SHALL BE COMPUTED ON A MONTHLY BASIS
BY THE UNITED STATES COMMISSIONER OF LABOR.
  (H)  FOR THE PURPOSE OF DETERMINING WHETHER AN EMPLOYEE IS EMPLOYED BY
THE EMPLOYER UNDER PARAGRAPH (C)  OF  THIS  SUBSECTION,  EMPLOYMENT  MAY
INCLUDE  UP  TO THIRTEEN WEEKS CONTINUOUS PRIOR SERVICE FOR THE EMPLOYER
AS A TEMPORARY EMPLOYEE OF A STAFFING FIRM.
  S 5. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by adding a new clause (xxxi) to read as
follows:
(XXXI) EMPLOYMENT INCENTIVE TAX      AMOUNT OF CREDIT UNDER
CREDIT UNDER SUBSECTION (QQ)         SUBDIVISION FORTY-ONE OF SECTION TWO
                                     HUNDRED TEN
  S 6. This act shall take effect immediately;  provided,  however  that
sections  two,  three,  four and five of this act shall take effect upon
written notification by the United States secretary of  labor  that  the
provisions  of  this act are in conformity with federal law, pursuant to
section one of this act. The commissioner of labor of the state  of  New
York  shall  notify  the  legislative  bill drafting commission upon the
occurrence of the enactment of the legislation provided for in this  act
in  order that the commission may maintain an accurate and timely effec-
tive data base of the official text of the laws of the state of New York
in furtherance of effectuating the  provisions  of  section  44  of  the
legislative law and section 70-b of the public officers law.

co-Sponsors

View additional co-sponsors

2009-S5264A - Details

See Assembly Version of this Bill:: A10085
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §§210 & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S3999
2013-2014: S2117
2015-2016: S3701
2017-2018: S3783
2019-2020: S4857
2021-2022: S5141
2023-2024: S4841
2025-2026: S4268

2009-S5264A - Summary

Creates a job development incentive income tax credit available to employers who employ individuals previously receiving unemployment.

2009-S5264A - Sponsor Memo

                                 BILL NUMBER:  S5264A

 TITLE OF BILL :
An act to amend the labor law, in relation to the creation of a New
York jobs development credit; and to amend the tax law, in relation to
an employment incentive income tax credit available to employers who
employ individuals previously receiving unemployment benefits


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

 SUMMARY OF SPECIFIC PROVISIONS :
 SECTION 1  - provides that the Commissioner of Labor shall make an
expedited request within fifteen days of the effective date of this
act for a determination by the United States Secretary of Labor that
implementation of Sections 2 and 3 are in conformity with federal law
, and that a waiver be sought if necessary.

 SECTION 2  - adds a new Labor Law Section 582, relating to
unemployment insurance taxes, called the New York Jobs Development
Credit. The credit against unemployment insurance payments will be $75
per individual employee per calendar quarter. The credit may be
claimed by an employer for up to four calendar quarters with respect

to an individual hired by that employer who has filed a claim for
unemployment compensation, has received at least two months of
unemployment benefits, is currently receiving weekly unemployment
compensation benefits and such benefits are chargeable to the
experience rating account of an employer under Title 7 of the Labor
Law or has completed a training program. The new employee must be a
full time employee working at least thirty hours per week. The section
also includes definitions related to who shall be considered a new
employee.

 SECTION 3  - amends Section 570 of the Labor Law to provide the way
the credit created in new Section 582 will be claimed and credited.

 SECTION 4  - amends Labor Law Section 210 relating to franchise taxes
on business corporations, to add a new subdivision 41 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 5  - amends Tax Law Section 606, relating to personal income
taxes, by adding a new subsection (qq) granting an employee incentive
tax credit in the amount of $2,400 per creditable employee, as defined
in the section.

 SECTION 6  - amends subparagraph (13) of paragraph 1 of subsection
(i) of Section 606 of the Tax Law, relating to S corporations, by
adding a new clause (xxxi) providing for an employment incentive tax
credit under subsection (qq) in the amount of the credit under
subdivision 412 of Section 210.

 SECTION 7  - Effective date.

 CURRENT LAW :
There are many tax credits available to individuals and businesses to
promote activities that benefit the state.

 JUSTIFICATION :
The economic meltdown that has engulfed the world's economy 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 accomplishes both
of these purposes. The bill offers incentives to employers to rehire
workers who have lost their jobs and are on unemployment with a
twofold approach.

First, credits are offered to employers on their unemployment
insurance contributions for hiring individuals who have applied for
unemployment, have received unemployment benefits for at least two
months which was credited to New York employers, or has completed a
training program under Labor Law 599 and are full time employees.

In addition, tax credits of up to $2,400 per employee are offered 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
individuals.

 FISCAL IMPLICATIONS :
To be determined.

 LEGISLATIVE HISTORY :
2009 - S.5264 -- LABOR
2010 - S.5264/A.10085 -- LABOR/Labor

 EFFECTIVE DATE :
This act shall take effect immediately, provided however that Sections
two and three of this act shall take effect upon written notification
by the United States Secretary of Labor that the provisions of this
act are in conformity with federal law, pursuant to Section one of
this act.

2009-S5264A - Bill Text download pdf

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

                                 5264--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced  by  Sens. RANZENHOFER, O. JOHNSON, LITTLE, MORAHAN, PADAVAN,
  VOLKER -- read twice and ordered  printed,  and  when  printed  to  be
  committed to the Committee on Labor -- recommitted to the Committee on
  Labor   in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the labor law, in relation to the creation of a New York
  jobs development credit; and to amend the tax law, in relation  to  an
  employment  incentive  income  tax  credit  available to employers who
  employ individuals previously receiving unemployment benefits

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

  Section  1.  The  commissioner  shall make an expedited request within
fifteen days of the effective date of this act for  a  determination  by
the United States secretary of labor that implementation of sections two
and  three  of this act is in conformity with federal law. If the United
States secretary of labor determines that any provision in  section  two
or  three  of  this  act  is  not  in  conformity with federal law, then
sections two and three shall not become effective.  Upon  such  determi-
nation the commissioner shall take all necessary steps to obtain a waiv-
er  of  conformity  with federal law from the United States secretary of
labor. If such waiver is granted, sections two and  three  shall  become
effective  immediately.  If  the United States secretary of labor deter-
mines that sections two and three of this act  are  in  conformity  with
federal  law,  sections two and three of this act shall become effective
immediately.
  S 2. The labor law is amended by adding a new section 582 to  read  as
follows:
  S  582.  NEW  YORK  JOBS  DEVELOPMENT  CREDIT. THERE SHALL BE A CREDIT
AGAINST CONTRIBUTION TO BE KNOWN AS THE "NEW YORK JOBS DEVELOPMENT CRED-
IT". THE AMOUNT OF THE CREDIT SHALL BE SEVENTY-FIVE DOLLARS PER INDIVID-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11574-04-0

S. 5264--A                          2

UAL EMPLOYEE PER CALENDAR QUARTER. THE  CREDIT  MAY  BE  CLAIMED  BY  AN
EMPLOYER FOR UP TO FOUR CALENDAR QUARTERS WITH RESPECT TO A NEW EMPLOYEE
HIRED BY THAT EMPLOYER FOR SERVICES IN ACCORDANCE WITH SUBDIVISIONS ONE,
TWO  OR  FOUR  OF  SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE UNDER THE
FOLLOWING CONDITIONS:
  1. SUCH NEW EMPLOYEE:
  (A) HAS FILED A CLAIM FOR UNEMPLOYMENT COMPENSATION IN THIS STATE, HAS
RECEIVED UNEMPLOYMENT BENEFITS IN THIS STATE FOR AT LEAST TWO MONTHS AND
IS AT THE TIME OF HIRE RECEIVING WEEKLY UNEMPLOYMENT COMPENSATION  BENE-
FITS  ON  THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF THIS ARTICLE
AND SUCH BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING ACCOUNT OF  AN
EMPLOYER UNDER THIS TITLE; OR
  (B)  HAS SUCCESSFULLY COMPLETED A TRAINING PROGRAM PURSUANT TO SECTION
FIVE HUNDRED NINETY-NINE OF THIS ARTICLE; AND
  (C) IS A NEW EMPLOYEE.
  2. FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
  (A) "NEW EMPLOYEE" SHALL MEAN ANY  FULL  TIME  EMPLOYEE,  EMPLOYED  AT
LEAST  THIRTY  HOURS PER WEEK, 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 NINE.
  (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.
  S 3. Section 570 of the labor law is amended by adding a new  subdivi-
sion 8 to read as follows:
  8.  THE  CREDIT  FOR  EACH  HIRED  INDIVIDUAL  PER CALENDAR QUARTER AS
PROVIDED IN SECTION FIVE HUNDRED EIGHTY-TWO OF THIS TITLE:
  (A) MAY BE CLAIMED ON THE REPORTS REQUIRED TO  BE  FILED  PURSUANT  TO
THIS  TITLE  AS  A  REDUCTION FROM AMOUNTS OTHERWISE DUE WITH RESPECT TO
EACH OF THE FOUR CALENDAR QUARTERS IMMEDIATELY FOLLOWING THE  HIRE  DATE
OF THE INDIVIDUAL; PROVIDED, HOWEVER, THAT THE CREDIT MAY NOT BE CLAIMED
FOR  ANY  HIRED  INDIVIDUAL  WITH RESPECT TO MORE THAN ONE HIRING BY THE
EMPLOYER CLAIMING THE CREDIT OR FOR MORE  THAN  FOUR  CALENDAR  QUARTERS
WITH RESPECT TO THAT ONE HIRING;
  (B)  FOR  EACH  CALENDAR QUARTER FOR WHICH THE CREDIT IS CLAIMED, SUCH
INDIVIDUAL SHALL BE CONTINUOUSLY EMPLOYED BY THE EMPLOYER  CLAIMING  THE
CREDIT,  AND  SUCH  INDIVIDUAL'S  EMPLOYMENT  WITH  THAT  EMPLOYER SHALL
CONSIST OF AT LEAST THIRTY HOURS PER  WEEK  DURING  EACH  WEEK  OF  THAT
CALENDAR QUARTER;
  (C)  THE  CREDIT  SHALL  BE TIMELY CLAIMED FOR THE CALENDAR QUARTER TO
WHICH THE CREDIT IS APPLICABLE. THE CREDIT SHALL  NOT  REDUCE  LIABILITY
BELOW  ZERO; PROVIDED, HOWEVER, THAT ANY CREDIT REMAINING MAY BE CARRIED
FORWARD AND APPLIED AGAINST CONTRIBUTIONS DUE IN ANY SUBSEQUENT CALENDAR
QUARTER; AND
  (D) NO CREDIT SHALL BE CLAIMED OR TAKEN BY ANY EMPLOYER WHO  FAILS  TO
TIMELY  FILE  ANY  REPORT OR TO TIMELY PAY ALL AMOUNTS OTHERWISE DUE FOR
ALL CALENDAR QUARTERS DURING THE CALENDAR YEAR FOR WHICH THE  CREDIT  IS
CLAIMED.  IN  THE  EVENT  AN  EMPLOYER  HAS  CLAIMED A CREDIT UNDER THIS
SECTION AND FAILS TO TIMELY FILE ANY REPORT OR TO TIMELY PAY ALL AMOUNTS
OTHERWISE DUE DURING THE YEAR THE CREDIT IS CLAIMED, THE AMOUNT  OF  ANY
CREDITS CLAIMED WITH RESPECT TO THE CALENDAR YEAR SHALL BE CANCELLED AND
BECOME  DELINQUENT  AS  OF  THE  DATE  ORIGINALLY  DUE UNDER SECTION SIX

S. 5264--A                          3

HUNDRED SEVENTY-FOUR OF THE TAX LAW AND SUBJECT TO ALL THE PROVISIONS OF
THIS ARTICLE AS IF NO CREDIT HAD EVER BEEN AVAILABLE OR CLAIMED.
  S 4. Section 210 of the tax law is amended by adding a new subdivision
41 to read as follows:
  41. EMPLOYMENT 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;
  (IV)  IS CURRENTLY RECEIVING WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS
ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
THE LABOR LAW; 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 NINE.
  (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. 5264--A                          4

  S  5. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ)  EMPLOYMENT 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 WEEKLY UNEMPLOYMENT  COMPENSATION  BENEFITS
ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
THE LABOR LAW; AND
  (E)  SUCH  BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING ACCOUNT OF
AN EMPLOYER UNDER THIS ARTICLE; OR
  (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 NINE.
  (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  6. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a  new  clause  (xxxi)  to  read  as
follows:

S. 5264--A                          5

(XXXI) EMPLOYMENT INCENTIVE TAX      AMOUNT OF CREDIT UNDER
CREDIT UNDER SUBSECTION (QQ)         SUBDIVISION FORTY-ONE OF SECTION
                                     TWO HUNDRED TEN OF THIS CHAPTER
  S  7.  This act shall take effect immediately; provided, however, that
sections two and three of  this  act  shall  take  effect  upon  written
notification by the United States secretary of labor that the provisions
of  this act are in conformity with federal law, pursuant to section one
of this act. The commissioner of labor of the state of  New  York  shall
notify  the  legislative bill drafting commission upon the occurrence of
the enactment of the legislation provided for in this act in order  that
the  commission  may maintain an accurate and timely effective data base
of the official text of the laws of the state of New York in furtherance
of effectuating the provisions of section 44 of the legislative law  and
section 70-b of the public officers law.

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2009-S5264B (ACTIVE) - Details

See Assembly Version of this Bill:: A10085
Current Committee:: Senate Labor
Law Section:: Labor Law
Laws Affected:: Amd §§210 & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S3999
2013-2014: S2117
2015-2016: S3701
2017-2018: S3783
2019-2020: S4857
2021-2022: S5141
2023-2024: S4841
2025-2026: S4268

2009-S5264B (ACTIVE) - Summary

Creates a job development incentive income tax credit available to employers who employ individuals previously receiving unemployment.

2009-S5264B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S5264B          REVISED 05/21/10

 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 OF THE BILL :
This bill would give incentives, through income tax credits, to
businesses who hire individuals currently receiving unemployment
benefits.

 SUMMARY OF SPECIFIC PROVISIONS :
Section 1- Amends Tax Law Section 210 relating to franchise taxes on
business corporations, to add a new subdivision 41 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 (qq) 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 (xxxi) providing for an employment incentive tax credit
under subsection (qq) in the amount of the credit under subdivision 41
of section 2010.

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 melt down that has engulfed the world's economy 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 accomplishes 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 are offered
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
individuals.

 FISCAL IMPLICATIONS :
To be determined.

 LEGISLATIVE HISTORY :
2009: (S.5264) Labor
2010: (S.5264/A.10085) Labor

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S5264B (ACTIVE) - Bill Text download pdf

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

                                 5264--B

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced  by  Sens. RANZENHOFER, O. JOHNSON, LITTLE, MORAHAN, PADAVAN,
  VOLKER -- read twice and ordered  printed,  and  when  printed  to  be
  committed to the Committee on Labor -- recommitted to the Committee on
  Labor   in  accordance  with  Senate  Rule  6,  sec.  8  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

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 41 to read as follows:
  41.  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;
  (IV)  IS CURRENTLY RECEIVING WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS
ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
THE LABOR LAW; AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11574-06-0

S. 5264--B                          2

  (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 NINE.
  (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
(qq) to read as follows:
  (QQ) 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 WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS
ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
THE LABOR LAW; AND
  (E) SUCH BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING  ACCOUNT  OF
AN EMPLOYER UNDER THIS ARTICLE; OR

S. 5264--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 NINE.
  (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  (xxxi)  to  read  as
follows:
(XXXI) JOBS DEVELOPMENT INCENTIVE    AMOUNT OF CREDIT UNDER
TAX CREDIT UNDER SUBSECTION (QQ)     SUBDIVISION FORTY-ONE OF SECTION
                                     TWO HUNDRED TEN OF THIS CHAPTER
  S 4. This act shall take effect immediately.

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