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

                                  1561

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  M. of A. KOLB, OAKS, McKEVITT, BARCLAY, CORWIN -- Multi-
  Sponsored by -- M. of A. CROUCH,  DUPREY,  GIGLIO,  JORDAN,  P. LOPEZ,
  WEISENBERG  --  read  once  and  referred to the Committee on Ways and
  Means

AN ACT to amend the tax law, in relation to establishing  a  credit  for
  on-the-job training

  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 22-a to read as follows:
  22-A. CREDIT FOR ON-THE-JOB TRAINING. (A) GENERAL. A TAXPAYER, WHO HAS
ONE HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CREDIT, TO BE COMPUTED
AS  HEREINAFTER  PROVIDED,  AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR
PROVIDING ON-THE-JOB TRAINING TO AN EMPLOYEE.
  (B) ON-THE-JOB TRAINING.   ON-THE-JOB  TRAINING  SHALL  MEAN  TRAINING
WHICH  IS SPECIFIED IN AN AGREEMENT BETWEEN THE GRANTEE AND THE EMPLOYER
AND INCLUDES BOTH WORK EXPERIENCE AND TRAINING, FORMALIZED IN AN OUTLINE
DEFINING EACH TRAINING COMPONENT AND OUTCOMES OF THE TRAINING PROCESS.
  (C) ON-THE-JOB TRAINING EXPENDITURES. ON-THE-JOB TRAINING EXPENDITURES
SHALL INCLUDE EXPENDITURES FOR THE  PURCHASE  OF  EITHER  COMMERCIAL  OR
CUSTOMIZED INSTRUCTIONAL MATERIALS INCLUDING SOFTWARE, TEXTS, MANUALS OR
EQUIPMENT  THAT  CAN BE USED TO SIMULATE JOB TASKS; PAYMENTS TO CONSULT-
ANTS, TRAINERS, OR INSTRUCTORS WHO ARE NOT EMPLOYEES OF  THE  FIRM;  AND
COSTS  ASSOCIATED WITH THE USE, RENTAL, OR LEASE OF A CLASSROOM OR OTHER
DEDICATED SPACE FOR THE TRAINING.
  (D) AMOUNT OF CREDIT. A CREDIT SHALL BE  ALLOWED  FOR  THE  AMOUNT  OF
ON-THE-JOB  TRAINING EXPENDITURES INCURRED BY AN EMPLOYER. THE AMOUNT OF
CREDIT SHALL NOT EXCEED THREE HUNDRED DOLLARS PER EMPLOYEE FOR WHOM SUCH
TRAINING HAS BEEN PROVIDED DURING THE TAXABLE YEAR IN WHICH SUCH EXPEND-
ITURES WERE MADE.

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

                                                           LBD03326-01-3

A. 1561                             2

  (E) CARRYOVER. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXA-
BLE 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 SUBDIVI-
SION ONE OF THIS SECTION. PROVIDED, HOWEVER, IF  THE  AMOUNT  OF  CREDIT
ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE  DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a  new  clause  (xxxv)  to  read  as
follows:

(XXXV) CREDIT FOR ON-THE-JOB         COSTS UNDER SUBDIVISION
TRAINING UNDER SUBSECTION (VV)       TWENTY-TWO-A OF
                                     SECTION TWO HUNDRED TEN
  S  3. Section 606 of the tax law is amended by adding a new subsection
(vv) to read as follows:
  (VV) CREDIT FOR ON-THE-JOB TRAINING. (1) GENERAL.  A TAXPAYER, WHO HAS
ONE HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CREDIT, TO BE COMPUTED
AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY  THIS  ARTICLE,  FOR
PROVIDING ON-THE-JOB TRAINING TO AN EMPLOYEE.
  (2)  ON-THE-JOB  TRAINING.    ON-THE-JOB  TRAINING SHALL MEAN TRAINING
WHICH IS SPECIFIED IN AN AGREEMENT BETWEEN THE GRANTEE AND THE  EMPLOYER
AND INCLUDES BOTH WORK EXPERIENCE AND TRAINING, FORMALIZED IN AN OUTLINE
DEFINING EACH TRAINING COMPONENT AND OUTCOMES OF THE TRAINING PROCESS.
  (3) ON-THE-JOB TRAINING EXPENDITURES. ON-THE-JOB TRAINING EXPENDITURES
SHALL  INCLUDE  EXPENDITURES  FOR  THE  PURCHASE OF EITHER COMMERCIAL OR
CUSTOMIZED INSTRUCTIONAL MATERIALS INCLUDING SOFTWARE, TEXTS, MANUALS OR
EQUIPMENT THAT CAN BE USED TO SIMULATE JOB TASKS; PAYMENTS  TO  CONSULT-
ANTS,  TRAINERS,  OR  INSTRUCTORS WHO ARE NOT EMPLOYEES OF THE FIRM; AND
COSTS ASSOCIATED WITH THE USE, RENTAL, OR LEASE OF A CLASSROOM OR  OTHER
DEDICATED SPACE FOR THE TRAINING.
  (4)  AMOUNT  OF  CREDIT.  A  CREDIT SHALL BE ALLOWED FOR THE AMOUNT OF
ON-THE-JOB TRAINING EXPENDITURES INCURRED BY AN EMPLOYER. THE AMOUNT  OF
CREDIT SHALL NOT EXCEED THREE HUNDRED DOLLARS PER EMPLOYEE FOR WHOM SUCH
TRAINING HAS BEEN PROVIDED DURING THE TAXABLE YEAR IN WHICH SUCH EXPEND-
ITURES WERE MADE.
  (5) CARRYOVER. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION
FOR  ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH TAX YEAR,
THE EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS,  AND  MAY
BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 4. This act shall take effect immediately and shall apply to taxable
years  beginning  on  and after the first of January next succeeding the
date on which it shall have become a law.