S T A T E O F N E W Y O R K
________________________________________________________________________
3254
2011-2012 Regular Sessions
I N A S S E M B L Y
January 24, 2011
___________
Introduced by M. of A. MORELLE -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a tax credit
for training expenses for emerging technology employees
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 43 to read as follows:
43. TAX CREDIT FOR TRAINING EXPENSES FOR EMERGING TECHNOLOGY EMPLOY-
EES. (A) A TAXPAYER SHALL BE ALLOWED A CREDIT FOR TRAINING EXPENSES OF
EMPLOYEES INVOLVED WITH EMERGING TECHNOLOGY. TO BE ELIGIBLE FOR THE
CREDIT, TRAINING EXPENSES MUST BE FOR FULL-TIME EMPLOYEES INVOLVED IN
THE DEVELOPMENT, MODIFICATION OR IMPROVEMENT OF EQUIPMENT AND SYSTEMS
THAT INVOLVE ADVANCED COMPUTER SOFTWARE AND HARDWARE, VISUALIZATION
TECHNOLOGIES, HUMAN INTERFACE TECHNOLOGIES, AS WELL AS PRODUCTS OR
SERVICES WITH INTERACTIVE MEDIA CONTENT INVOLVING ELECTRONIC DISTRIB-
UTION OR ELECTRONIC COMMERCE. SUCH TECHNOLOGIES SHALL INCLUDE, BUT ARE
NOT LIMITED TO, THE FOLLOWING: OPERATING AND APPLICATIONS SOFTWARE,
ARTIFICIAL INTELLIGENCE, COMPUTER MODELING AND SIMULATION, HIGH-LEVEL
SOFTWARE LANGUAGES, NEURAL NETWORKS, PROCESSOR ARCHITECTURE, ANIMATION
AND FULL-MOTION VIDEO, GRAPHICS HARDWARE AND SOFTWARE, SPEECH AND
OPTICAL CHARACTER RECOGNITION, HIGH-VOLUME INFORMATION STORAGE AND
RETRIEVAL, DATA COMPRESSION, BROADBAND SWITCHING, MULTIPLEXING, DIGITAL
SIGNAL PROCESSING AND SPECTRUM TECHNOLOGIES.
(B) TO QUALIFY AS ELIGIBLE EXPENSES, THE TRAINING UNDERTAKEN MUST BE
TO MAINTAIN OR IMPROVE A SKILL REQUIRED BY THE EMPLOYEE IN HIS OR HER
EMPLOYMENT OR THE TRAINING IS REQUIRED TO RETAIN SALARY STATUS OR
EMPLOYMENT. THE TRAINING MAY TAKE PLACE OUTSIDE THE STATE AS LONG AS THE
EMPLOYEE'S POSITION IS LOCATED WITHIN THE STATE, AND MAY INCLUDE, BUT
NOT BE LIMITED TO, TRAINING TAKEN THROUGH INSTRUCTIONAL PROGRAMS, OR THE
PURCHASE OF MATERIALS, SUPPLIES, TEXTBOOKS, MANUALS, VIDEOTAPES, AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05255-01-1
A. 3254 2
OTHER INSTRUCTIONAL MEDIA AND EQUIPMENT, THROUGH THE INTERNET. TRAINING
EXPENSES FOR WHICH A CREDIT IS ALLOWABLE AND CLAIMED UNDER ANY OTHER
PROVISION OF THIS SECTION MAY NOT BE CLAIMED UNDER THIS SUBDIVISION.
(C) THE CREDIT SHALL BE EQUAL TO TWENTY-FIVE PERCENT OF TOTAL QUALI-
FIED TRAINING EXPENSES INCURRED DURING THE TAXABLE YEAR. IN NO EVENT
SHALL THE CREDIT UNDER THIS SUBDIVISION, AND CARRYOVERS OF SUCH CREDIT,
ALLOWED UNDER THIS SUBDIVISION REDUCE THE TAX PAYABLE TO LESS THAN THE
DOLLAR AMOUNT FIXED AS A MINIMUM TAX BY PARAGRAPH (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, ANY AMOUNT OF CREDIT OR CARRYOVERS OF
SUCH CREDIT THUS NOT USED IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO
THE FOLLOWING YEAR OR YEARS AND MAY BE CLAIMED AS A CREDIT IN COMPUTING
THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. IN ADDITION, THE TAXPAYER MAY
ELECT, ON ITS REPORT FOR ITS TAXABLE YEAR WITH RESPECT TO WHICH SUCH
CREDIT IS ALLOWED, TO TREAT THE AMOUNT OF SUCH CARRYOVER AS AN OVERPAY-
MENT OF TAX TO BE CREDITED OR REFUNDED. ANY REFUND PAID PURSUANT TO THIS
PARAGRAPH SHALL BE DEEMED TO BE A REFUND OF AN OVERPAYMENT OF TAX,
PROVIDED, HOWEVER, NO INTEREST SHALL BE PAID THEREON.
S 2. This act shall take effect immediately and shall be applicable to
taxable years beginning on or after January 1, 2011.