S T A T E O F N E W Y O R K
________________________________________________________________________
6514
2011-2012 Regular Sessions
I N A S S E M B L Y
March 21, 2011
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Introduced by M. of A. KOLB, BARCLAY, FINCH, OAKS, HAWLEY, GIGLIO,
McKEVITT -- Multi-Sponsored by -- M. of A. BUTLER, CALHOUN, CORWIN,
CROUCH, JORDAN, P. LOPEZ, TOBACCO -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to providing a manufacturing
wage credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The tax law is amended by adding a new section 35 to read
as follows:
S 35. MANUFACTURING WAGE CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
WHICH IS AN INDUSTRIAL OR MANUFACTURING BUSINESS (IMB), OR WHICH IS A
SOLE PROPRIETOR OF AN IMB OR A MEMBER OF A PARTNERSHIP WHICH IS AN IMB,
AND WHICH IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS
CHAPTER, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX, PURSUANT TO THE
PROVISIONS REFERENCED IN SUBDIVISION (D) OF THIS SECTION, TO BE COMPUTED
AS HEREINAFTER PROVIDED.
(B) DEFINITIONS.
(1) THE TERM "INDUSTRIAL OR MANUFACTURING BUSINESS" SHALL MEAN A BUSI-
NESS WHICH DURING THE TAXABLE YEAR IS PRINCIPALLY ENGAGED IN ACTIVITIES
DESCRIBED IN SUBPARAGRAPH (I) OF PARAGRAPH (B) OF SUBDIVISION TWELVE OF
SECTION TWO HUNDRED TEN OF THIS CHAPTER.
(2) THE TERM "EMPLOYMENT INCREASE YEAR" SHALL MEAN THE TAXABLE YEAR IN
WHICH THE INCREASE IN EMPLOYMENT FOR WHICH THIS CREDIT IS CLAIMED
OCCURS.
(3) THE TERM "BASE YEAR" SHALL MEAN THE TAXABLE YEAR IMMEDIATELY
PRECEDING THE EMPLOYMENT INCREASE YEAR.
(4) THE TERM "EMPLOYMENT INCREASE LEVEL" SHALL MEAN THE DIFFERENCE
BETWEEN THE EMPLOYMENT NUMBER IN THE EMPLOYMENT INCREASE YEAR AND THE
EMPLOYMENT NUMBER IN THE BASE YEAR. IF EMPLOYMENT INCREASE LEVEL IS LESS
THAN ZERO IN ANY TAXABLE YEAR, IT SHALL BE ASSUMED TO BE ZERO.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05186-01-1
A. 6514 2
(5) THE TERM "EMPLOYMENT NUMBER" SHALL MEAN THE AVERAGE NUMBER OF
INDIVIDUALS, EXCLUDING GENERAL EXECUTIVE OFFICERS (IN THE CASE OF A
CORPORATION), EMPLOYED FULL TIME BY THE TAXPAYER FOR AT LEAST ONE-HALF
OF THE TAXABLE YEAR. SUCH NUMBER SHALL BE COMPUTED BY DETERMINING THE
NUMBER OF SUCH INDIVIDUALS EMPLOYED BY THE TAXPAYER ON THE THIRTY-FIRST
DAY OF MARCH, THE THIRTIETH DAY OF JUNE, THE THIRTIETH DAY OF SEPTEMBER
AND THE THIRTY-FIRST DAY OF DECEMBER DURING THE APPLICABLE TAXABLE YEAR,
ADDING TOGETHER THE NUMBER OF SUCH INDIVIDUALS DETERMINED TO BE SO
EMPLOYED ON EACH OF SUCH DATES AND DIVIDING THE SUM SO OBTAINED BY THE
NUMBER OF SUCH DATES OCCURRING WITHIN SUCH APPLICABLE TAXABLE YEAR. SUCH
NUMBER SHALL NOT INCLUDE INDIVIDUALS EMPLOYED WITHIN THE IMMEDIATELY
PRECEDING SIXTY MONTHS BY A RELATED PERSON TO THE TAXPAYER, AS SUCH TERM
"RELATED PERSON" IS DEFINED IN SUBPARAGRAPH (C) OF PARAGRAPH THREE OF
SUBSECTION (B) OF SECTION FOUR HUNDRED SIXTY-FIVE OF THE INTERNAL REVEN-
UE CODE.
(6) THE TERM "TOTAL WAGES" SHALL MEAN THE TOTAL SALARIES AND WAGES
PAID TO EMPLOYEES INCLUDED IN THE CALCULATION OF THE EMPLOYMENT NUMBER
IN THE EMPLOYMENT INCREASE YEAR.
(7) THE TERM "AVERAGE WAGES" SHALL MEAN TOTAL WAGES DIVIDED BY THE
EMPLOYMENT NUMBER IN THE EMPLOYMENT INCREASE YEAR.
(C) APPLICATION OF THE CREDIT.
(1) THE AMOUNT OF CREDIT SHALL EQUAL THE PRODUCT OF TWO AND ONE-HALF
PERCENT OF THE AVERAGE WAGES AND THE EMPLOYMENT INCREASE LEVEL.
(2) LENGTH OF CREDIT. THE CREDIT MAY BE ALLOWED IN THE EMPLOYMENT
INCREASE YEAR AND THE FOUR TAXABLE YEARS IMMEDIATELY FOLLOWING THE
EMPLOYMENT INCREASE YEAR, PROVIDED THAT IF THE EMPLOYMENT NUMBER IN ANY
TAXABLE YEAR IN WHICH THE CREDIT IS CLAIMED IS LESS THAN THE EMPLOYMENT
NUMBER IN THE EMPLOYMENT INCREASE YEAR, THE AMOUNT OF CREDIT MUST BE
RECALCULATED BY SUBSTITUTING THE LOWER EMPLOYMENT NUMBER IN THE CURRENT
TAXABLE YEAR FOR THE EMPLOYMENT NUMBER IN THE EMPLOYMENT INCREASE YEAR
FOR THE PURPOSE OF CALCULATING THE EMPLOYMENT INCREASE LEVEL AND THIS
LOWER EMPLOYMENT NUMBER SHALL BE DEEMED TO BE THE EMPLOYMENT NUMBER FOR
THE EMPLOYMENT INCREASE YEAR FOR ANY FUTURE APPLICATION OF THIS CREDIT.
(D) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT PROVIDED FOR IN
THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
(1) ARTICLE 9-A: SECTION 210: SUBDIVISION 43.
(2) ARTICLE 22: SECTION 606: SUBSECTION (SS).
S 2. Section 210 of the tax law is amended by adding a new subdivision
43 to read as follows:
43. MANUFACTURING WAGE CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIR-
TY-FIVE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
FOR ANY TAXABLE YEAR SHALL NOT 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
ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE
YEAR SHALL BE TREATED 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.
S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xxxii) to read as
follows:
A. 6514 3
(XXXII) MANUFACTURING WAGE CREDIT AMOUNT OF MANUFACTURING
UNDER SUBSECTION (SS) WAGE CREDIT UNDER SUBDIVISION
FORTY-THREE OF SECTION TWO
HUNDRED TEN
S 4. Section 606 of the tax law is amended by adding a new subsection
(ss) to read as follows:
(SS) MANUFACTURING WAGE CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIR-
TY-FIVE OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE
CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX
HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST
SHALL BE PAID THEREON.
S 5. This act shall take effect immediately and shall apply to taxa-
ble years commencing on and after the first of January next succeeding
the date on which it shall have become a law; provided, however that
effective immediately, the addition, amendment and/or repeal of any rule
or regulation necessary for the implementation of this act on its effec-
tive date is authorized and directed to be made and completed by the
department of taxation and finance and the department of health on or
before such effective date.