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

                                  3207

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 23, 2009
                               ___________

Introduced by M. of A. CHRISTENSEN, MORELLE, PHEFFER, MAGNARELLI, MAGEE,
  SCHIMMINGER,  JAFFEE  --  Multi-Sponsored by -- M. of A. ABBATE, COOK,
  DelMONTE, HYER-SPENCER, JOHN, KOON, V. LOPEZ, ORTIZ, SWEENEY,  WEISEN-
  BERG -- read once and referred to the Committee on Ways and Means

AN  ACT  to  amend  the  tax  law,  in  relation to a small business job
  creation wage tax credit

  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. SMALL BUSINESS JOB CREATION WAGE TAX CREDIT.    (A)    A  TAXPAYER
SHALL  BE  ALLOWED  A  CREDIT,  TO BE COMPUTED AS HEREINAFTER  PROVIDED,
AGAINST THE TAX IMPOSED BY THIS ARTICLE.   THE  AMOUNT  OF  SUCH  CREDIT
SHALL BE AS PRESCRIBED BY PARAGRAPH (D) OF THIS SUBDIVISION.
  (B)  FOR  THE  PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS SHALL
HAVE  THE FOLLOWING MEANINGS:
  (1) "SMALL BUSINESS JOB  CREATION  WAGES"  MEANS  WAGES  PAID  BY  THE
TAXPAYER  FOR  FULL-TIME  EMPLOYMENT,  OTHER  THAN  TO GENERAL EXECUTIVE
OFFICERS, DURING THE TAXABLE YEAR WHERE SUCH EMPLOYMENT IS IN A NEW  JOB
AND PERFORMED BY "NEW EMPLOYEES".
  (2)  "NEW  JOB"  MEANS  A FULL-TIME POSITION THAT DID NOT EXIST IN THE
TAXPAYER'S BUSINESS IN THE THREE TAXABLE YEARS PRIOR TO HIRING THE  "NEW
EMPLOYEES" FOR WHOM THE CREDIT IS CLAIMED.
  (3)  "NEW EMPLOYEE" MEANS A NEW YORK RESIDENT WHO RECEIVES SMALL BUSI-
NESS JOB CREATION WAGES AND WHO WAS NOT EMPLOYED BY THE TAXPAYER IN  THE
THREE PRIOR TAXABLE YEARS.
  (4)  "SMALL  BUSINESS"  MEANS A NEW YORK TAXPAYER, AS DEFINED IN PARA-
GRAPH (F) OF SUBDIVISION ONE OF THIS SECTION WHO HAS  FEWER  THAN  FIFTY
EMPLOYEES IN THE INITIAL TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED.
  (C)  THE  CREDIT  MAY BE CLAIMED BY THE TAXPAYER IN THE FIRST YEAR THE
"NEW EMPLOYEE" IS EMPLOYED BY THE TAXPAYER.  PROVIDED, HOWEVER, WHERE  A

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05490-01-9
              

A. 3207                             2

"NEW  EMPLOYEE"  IS  HIRED  IN THE LAST QUARTER OF A TAXABLE YEAR AND IS
EMPLOYED BY THE TAXPAYER FOR THE  ENTIRE  FOLLOWING  TAXABLE  YEAR,  THE
TAXPAYER  MAY  ELECT  TO  FOREGO  THE CREDIT FOR THE TAXABLE YEAR OF THE
HIRING  AND CLAIM A CREDIT FOR THE FOLLOWING TAXABLE YEAR WHICH REFLECTS
WAGES, PAID IN SUCH YEAR.
  (D)   THE AMOUNT OF THE  CREDIT  SHALL  EQUAL  FIFTY  PERCENT  OF  THE
PERSONAL  INCOME  TAX  GENERATED BY THE NEW EMPLOYEES (EXCLUDING GENERAL
EXECUTIVE OFFICERS) EMPLOYED  FULL-TIME BY THE TAXPAYER, WHO:
  (1)   RECEIVED, WITH RESPECT TO  MORE  THAN  HALF  OF  THE  PERIOD  OF
EMPLOYMENT  BY  THE  TAXPAYER  DURING  THE  TAXABLE YEAR, AN HOURLY WAGE
WHICH WAS AT LEAST ONE HUNDRED THIRTY-FIVE PERCENT OF THE MINIMUM   WAGE
SPECIFIED IN SECTION SIX HUNDRED FIFTY-TWO OF THE LABOR  LAW; AND
  (2)  ARE "NEW EMPLOYEES".
PROVIDED,  HOWEVER,  THAT THE CREDIT PROVIDED FOR UNDER THIS SUBDIVISION
WITH RESPECT TO THE TAXABLE YEAR, AND CARRYOVERS OF SUCH CREDIT  TO  THE
TAXABLE  YEAR,  DEDUCTED  FROM   THE TAX OTHERWISE DUE, MAY  NOT, IN THE
AGGREGATE, EXCEED FIFTY PERCENT OF THE TAX IMPOSED   UNDER  SECTION  TWO
HUNDRED  NINE  OF  THIS  ARTICLE  COMPUTED WITHOUT REGARD TO ANY  CREDIT
PROVIDED FOR BY THIS ARTICLE.
  (E)   THE CREDIT AND CARRYOVERS OF  SUCH  CREDIT  ALLOWED  UNDER  THIS
SUBDIVISION  FOR  ANY  TAXABLE  YEAR SHALL NOT, IN THE AGGREGATE, 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 OR CARRYOVERS OF  SUCH CREDIT,
OR BOTH, ALLOWED  UNDER THIS SUBDIVISION  FOR ANY TAXABLE  YEAR  REDUCES
THE  TAX  TO SUCH AMOUNT, OR  IF ANY PART OF THE CREDIT OR CARRYOVERS OF
SUCH CREDIT MAY  NOT BE DEDUCTED FROM THE TAX OTHERWISE  DUE  BY  REASON
OF  THE  FINAL SENTENCE OF PARAGRAPH (D) OF THIS SUBDIVISION, ANY AMOUNT
OF  CREDIT OR CARRYOVERS OF SUCH CREDIT  THUS  NOT  DEDUCTIBLE  IN  SUCH
TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS  AND MAY
BE  DEDUCTED  FROM  THE  TAX  FOR SUCH YEAR OR YEARS.   IN  LIEU OF SUCH
CARRYOVER, ANY SUCH TAXPAYER WHICH QUALIFIES AS A NEW    BUSINESS  UNDER
PARAGRAPH  (J)  OF SUBDIVISION TWELVE OF THIS SECTION  MAY ELECT, ON ITS
REPORT FOR ITS TAXABLE YEAR WITH  RESPECT    TO  WHICH  SUCH  CREDIT  IS
ALLOWED,  TO  TREAT FIFTY PERCENT OF  THE AMOUNT OF SUCH CARRYOVER 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 SHALL BE PAID
THEREON.   IN APPLYING PARAGRAPH  (J)  OF  SUBDIVISION  TWELVE  OF  THIS
SECTION,  THE REFERENCE TO INVESTMENT TAX CREDIT SHALL BE DEEMED TO BE A
REFERENCE TO THE CREDIT PROVIDED FOR UNDER THIS SUBDIVISION.
  (F) PROVIDED HOWEVER, THIS CREDIT SHALL  NOT  BE  ALLOWED  WHERE  SUCH
WAGES HAVE BEEN USED AS THE BASIS TO CLAIM THE CREDIT FOR EMPIRE ZONE OR
EMPIRE ZONE EQUIVALENT WAGE CREDIT.
  (G)  FOR THE INTERACTION OF THIS SUBDIVISION AND  SUBDIVISION TWELVE-D
OF  THIS  SECTION (EMPLOYMENT   INCENTIVE CREDIT), SEE PARAGRAPH (B)  OF
SUCH SUBDIVISION TWELVE-D.
  S 2.  Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ) SMALL BUSINESS JOB CREATION WAGE TAX CREDIT.   (1)    A  TAXPAYER
SHALL  BE  ALLOWED  A  CREDIT,  TO BE COMPUTED AS HEREINAFTER  PROVIDED,
AGAINST THE TAX IMPOSED BY THIS ARTICLE.   THE  AMOUNT  OF  SUCH  CREDIT
SHALL BE AS PRESCRIBED BY PARAGRAPH THREE OF THIS SUBSECTION.
  (2)  FOR  THE  PURPOSES  OF THIS SUBSECTION, THE FOLLOWING TERMS SHALL
HAVE  THE FOLLOWING MEANINGS:

A. 3207                             3

  (I) "NEW JOB" MEANS A FULL-TIME POSITION THAT DID  NOT  EXIST  IN  THE
TAXPAYER'S  BUSINESS IN THE THREE TAXABLE YEARS PRIOR TO HIRING THE "NEW
EMPLOYEES" FOR WHOM THE CREDIT IS CLAIMED.
  (II)  "SMALL  BUSINESS  JOB  CREATION  WAGES"  MEANS WAGES PAID BY THE
TAXPAYER FOR FULL-TIME  EMPLOYMENT,  OTHER  THAN  TO  GENERAL  EXECUTIVE
OFFICERS,  DURING  THE  TAXABLE  YEAR WHERE SUCH EMPLOYMENT  IS IN A JOB
CREATED FOR AND PERFORMED BY "NEW EMPLOYEES".
  (III) "NEW EMPLOYEE" MEANS A NEW  YORK  RESIDENT  WHO  RECEIVES  SMALL
BUSINESS  JOB CREATION WAGES AND WHO WAS NOT EMPLOYED BY THE TAXPAYER IN
THE THREE PRIOR TAXABLE YEARS.
  (IV) "SMALL BUSINESS" MEANS A NEW YORK TAXPAYER, AS DEFINED  IN  PARA-
GRAPH  (F) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN OF THIS CHAPTER
WHO HAS FEWER THAN FIFTY EMPLOYEES IN THE INITIAL TAXABLE YEAR FOR WHICH
THE CREDIT IS CLAIMED.
  (V) THE CREDIT MAY BE CLAIMED BY THE TAXPAYER IN THE  FIRST  YEAR  THE
"NEW  EMPLOYEE" IS EMPLOYED BY THE TAXPAYER.  PROVIDED, HOWEVER, WHERE A
"NEW EMPLOYEE" IS HIRED IN THE LAST QUARTER OF A  TAXABLE  YEAR  AND  IS
EMPLOYED  BY  THE  TAXPAYER  FOR  THE ENTIRE FOLLOWING TAXABLE YEAR, THE
TAXPAYER MAY ELECT TO FOREGO THE CREDIT FOR  THE  TAXABLE  YEAR  OF  THE
HIRING  AND CLAIM A CREDIT FOR THE FOLLOWING TAXABLE YEAR WHICH REFLECTS
WAGES PAID IN SUCH YEAR.
  (3)   THE AMOUNT OF THE  CREDIT  SHALL  EQUAL  FIFTY  PERCENT  OF  THE
PERSONAL  INCOME  TAX  GENERATED BY THE NEW EMPLOYEES (EXCLUDING GENERAL
EXECUTIVE OFFICERS) EMPLOYED  FULL-TIME BY THE TAXPAYER, WHO:
  (I)   RECEIVED, WITH RESPECT TO  MORE  THAN  HALF  OF  THE  PERIOD  OF
EMPLOYMENT  BY  THE  TAXPAYER  DURING  THE  TAXABLE YEAR, AN HOURLY WAGE
WHICH WAS AT LEAST ONE HUNDRED THIRTY-FIVE PERCENT OF THE MINIMUM   WAGE
SPECIFIED IN SECTION SIX HUNDRED FIFTY-TWO OF THE LABOR  LAW; AND
  (II) ARE "NEW EMPLOYEES".
PROVIDED,  HOWEVER,  THAT  THE CREDIT PROVIDED FOR UNDER THIS SUBSECTION
WITH RESPECT TO THE TAXABLE YEAR, AND CARRYOVERS OF SUCH CREDIT  TO  THE
TAXABLE  YEAR,  DEDUCTED  FROM   THE TAX OTHERWISE DUE, MAY  NOT, IN THE
AGGREGATE, EXCEED FIFTY PERCENT OF THE TAX IMPOSED   UNDER  SECTION  TWO
HUNDRED  NINE  OF  THIS  CHAPTER  COMPUTED WITHOUT REGARD TO ANY  CREDIT
PROVIDED FOR BY THIS ARTICLE.
  (4) IF THE AMOUNT OF THE CREDIT AND CARRYOVERS OF SUCH CREDIT  ALLOWED
UNDER  THIS  SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S
TAX FOR SUCH YEAR, THE EXCESS, AS WELL AS ANY  PART  OF  THE  CREDIT  OR
CARRYOVERS  OF  SUCH CREDIT, OR BOTH, WHICH MAY NOT BE DEDUCTED FROM THE
TAX OTHERWISE DUE BY REASON OF THE FINAL SENTENCE IN PARAGRAPH THREE  OF
THIS  SUBSECTION, MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND
MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.  IN LIEU
OF CARRYING OVER ANY SUCH EXCESS, A TAXPAYER WHO QUALIFIES AS  AN  OWNER
OF  A  NEW  BUSINESS  FOR PURPOSES OF PARAGRAPH TEN OF SUBSECTION (A) OF
THIS SECTION MAY, AT HIS OPTION, RECEIVE FIFTY PERCENT OF SUCH EXCESS AS
A REFUND. ANY REFUND PAID PURSUANT TO THIS PARAGRAPH SHALL BE DEEMED  TO
BE  A REFUND OF AN OVERPAYMENT OF TAX AS PROVIDED IN SECTION SIX HUNDRED
EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE
PAID THEREON. IN APPLYING  PARAGRAPH  TEN  OF  SUBSECTION  (A)  OF  THIS
SECTION,  THE REFERENCE TO INVESTMENT TAX CREDIT SHALL BE DEEMED TO BE A
REFERENCE TO THE CREDIT PROVIDED FOR UNDER THIS SUBSECTION.
  (5) PROVIDED HOWEVER, THIS CREDIT SHALL  NOT  BE  ALLOWED  WHERE  SUCH
WAGES HAVE BEEN USED AS THE BASIS TO CLAIM THE CREDIT FOR EMPIRE ZONE OR
EMPIRE ZONE EQUIVALENT WAGE CREDIT.
  S 3. This act shall take effect immediately.