senate Bill S1861A

2013-2014 Legislative Session

Establishes a hire-now tax credit

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 27, 2014 print number 1861a
amend and recommit to investigations and government operations
Jan 08, 2014 referred to investigations and government operations
May 21, 2013 reported and committed to finance
Jan 09, 2013 referred to investigations and government operations

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

S1861 - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Add §41, amd §§210 & 606, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S7664

S1861 - Bill Texts

view summary

Establishes a hire-now tax credit; provides for new job creation; also provides for additional credit where the person hired was receiving unemployment.

view sponsor memo
BILL NUMBER:S1861

TITLE OF BILL: An act to amend the tax law, in relation to establishing
a hire-now tax credit

PURPOSE: To enact a Hire-Now tax credit and an additional incentive for
hiring the unemployed.

SUMMARY OF PROVISIONS: "HIRE-NOW-NY" TAX INCENTIVE: Our Hire-Now-NY
proposal includes direct incentives for each new job employers create, a
business would get a tax credit of up to $5,000 per employee for a maxi-
mum of three years. The credit will equal 6.85 percent of wages paid to
the employee. The hires must be new employees. In order to qualify for
the Hire-Now credit the employee must be hired by April 1, 2014 to
encourage a quick boost in jobs.

UNEMPLOYMENT BONUS CREDIT: The "HIRE-NOW-NY' tax incentive would
increase to up to $8,000 if the employer hires someone who is currently
unemployed. The new employee must be employed full time for a full year
to qualify for the additional $3,000 credit.

JUSTIFICATION: This bill will help create thousands of new private
sector jobs by offering direct incentives to employers for hiring new
employees.

LEGISLATIVE HISTORY: 2011-2012 - S.76641A.10668 - PASSED SENATE/Ways &
Means

FISCAL IMPLICATIONS: This bill is estimated to save employers $50
million in SPY 2014-15.

EFFECTIVE DATE: Effective immediately.

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

                                  1861

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sens. RANZENHOFER, DeFRANCISCO, GALLIVAN, MAZIARZ -- read
  twice and ordered printed, and when printed to  be  committed  to  the
  Committee on Investigations and Government Operations

AN  ACT to amend the tax law, in relation to establishing a hire-now tax
  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 38 to read
as follows:
  S 38. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER,  WHICH
IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER AND
WHICH CREATES A NEW JOB, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX. THE
AMOUNT  OF  THE  CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE
PRODUCT OF 6.85 PERCENT AND THE GROSS WAGES PAID FOR EACH NEW  EMPLOYEE.
THE  CREDIT  SHALL  NOT  BE  MORE THAN FIVE THOUSAND DOLLARS FOR ANY NEW
EMPLOYEE FOR ONE FULL YEAR OF EMPLOYMENT; IF A  NEW  EMPLOYEE  HAS  BEEN
HIRED  FOR  LESS  THAN A FULL TAX YEAR THIS AMOUNT SHALL BE PRORATED AND
APPORTIONED TO EACH TAX YEAR BUT SHALL IN NO WAY DECREASE THE FULL THREE
CONSECUTIVE YEARS OF CREDIT ELIGIBILITY. THE  TAXPAYER  MAY  CLAIM  THIS
CREDIT  FOR EACH NEW EMPLOYEE FOR A PERIOD OF THREE CONSECUTIVE YEARS OF
EMPLOYMENT.  THE TAXPAYER MAY OFFSET  QUARTERLY  ESTIMATED  TAX  RETURNS
WITH THE AMOUNT OF THIS CREDIT EARNED IN ANY PREVIOUS QUARTER.
  (B) UNEMPLOYMENT ENHANCEMENT. FOR CALENDAR YEARS TWO THOUSAND FOURTEEN
AND  TWO  THOUSAND  FIFTEEN IF A NEW EMPLOYEE WAS RECEIVING UNEMPLOYMENT
INSURANCE BENEFITS AT THE TIME OF HIRE,  AN  ADDITIONAL  THREE  THOUSAND
DOLLAR CREDIT WILL BE ALLOWED FOR THE FIRST FULL YEAR OF EMPLOYMENT.
  (C)  DEFINITIONS.  AS  USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1) "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT IS HIRED  BY
THE  TAXPAYER  AFTER  JULY FIRST, TWO THOUSAND THIRTEEN AND BEFORE APRIL

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02565-02-3

S. 1861                             2

FIRST, TWO THOUSAND FOURTEEN, THAT CAUSES THE TOTAL NUMBER OF  EMPLOYEES
TO  INCREASE  ABOVE  BASE  EMPLOYMENT OR CREDIT EMPLOYMENT, WHICHEVER IS
HIGHER.
  (2) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND TWELVE.
  (3)  "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.
  (4)  "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED FOR THE PRIOR TAX YEARS.
  (D) REPLACEMENT EMPLOYEES. IF ONE OR MORE NEW EMPLOYEES  FOR  WHICH  A
CREDIT  WAS  EARNED LEAVES THE PAYROLL DURING THE SAME TAXABLE YEAR THAT
AN INDIVIDUAL IS HIRED BY THE TAXPAYER TO WORK IN  THIS  STATE,  CAUSING
THE  TAXPAYER'S  TOTAL  EMPLOYMENT TO EQUAL AN AMOUNT THAT IS ABOVE BASE
EMPLOYMENT BUT AT OR BELOW THE COMPUTED CREDIT EMPLOYMENT FOR THE  TAXA-
BLE  YEAR, THE CREDIT ELIGIBILITY PERIOD FOR THE INDIVIDUAL HIRED DURING
THE TAXABLE YEAR SHALL BE THREE YEARS MINUS THE AMOUNT OF TIME  (ROUNDED
TO  THE  NEXT  FULL MONTH) THAT THE TAXPAYER RECEIVED THE CREDIT FOR THE
DEPARTING EMPLOYEE.
  (E) NO CREDIT SHALL BE ALLOWED UNDER THIS SECTION TO  A  TAXPAYER  FOR
ANY  NEW  EMPLOYEE  IF  THE  TAXPAYER CLAIMS ANY OTHER CREDIT UNDER THIS
ARTICLE FOR SUCH NEW EMPLOYEE WHERE THE BASIS OF SUCH OTHER CREDIT IS AN
INCREASE IN EMPLOYMENT.
  S 2. Section 210 of the tax law is amended by adding a new subdivision
46 to read as follows:
  46. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER  WILL  BE
ALLOWED  A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION THIRTY-EIGHT OF
THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY  TAXABLE  YEAR MAY 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 WILL 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 WILL BE PAID THEREON.
  S  3. Section 606 of the tax law is amended by adding a new subsection
(vv) to read as follows:
  (VV) HIRE-NOW TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED A CREDIT,  TO
THE  EXTENT  ALLOWED UNDER SECTION THIRTY-EIGHT 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 EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL 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 WILL  BE
PAID THEREON.
  S  4. 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) HIRE-NOW TAX CREDIT              AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (VV)                   SUBDIVISION FORTY-SIX OF SECTION
                                        TWO HUNDRED TEN
  S 5. This act shall take effect immediately.

Co-Sponsors

S1861A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Tax Law
Laws Affected:
Add §41, amd §§210 & 606, Tax L
Versions Introduced in 2011-2012 Legislative Session:
S7664

S1861A (ACTIVE) - Bill Texts

view summary

Establishes a hire-now tax credit; provides for new job creation; also provides for additional credit where the person hired was receiving unemployment.

view sponsor memo
BILL NUMBER:S1861A

TITLE OF BILL: An act to amend the tax law, in relation to establishing
a hire-now tax credit

PURPOSE:

To enact a Hire-Now tax credit and an additional incentive for hiring
the unemployed.

SUMMARY OF PROVISIONS:

"HIRE-NOW-NY' TAX INCENTIVE: Our Hire-Now-NY proposal includes direct
incentives for each new job employers create, a business would get a tax
credit of up to $5,000 per employee for a maximum of three years. The
credit will equal 6.85 percent of wages paid to the employee. The hires
must be new employees. In order to qualify for the Hire-Now credit the
employee must be hired by April 1, 2015 to encourage a quick boost in
jobs.

UNEMPLOYMENT BONUS CREDIT: The "HIRE-NOW-NY" tax incentive would
increase to up to $8,000 if the employer hires someone who is currently
unemployed. The new employee must be employed full time for a full year
to qualify for the additional $3,000 credit.

JUSTIFICATION:

This bill will help create thousands of new private sector jobs by
offering direct incentives to employers for hiring new employees.

LEGISLATIVE HISTORY:

2011-2012 - S.7664/A.10668 - PASSED SENATE/Ways & Means
2013 - S.1861 FINANCE

FISCAL IMPLICATIONS:

This bill is estimated to save employers $50 million in SFY 2015-16.

EFFECTIVE DATE:

This act shall take effect immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1861--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced   by  Sens.  RANZENHOFER,  CARLUCCI,  DeFRANCISCO,  GALLIVAN,
  MAZIARZ -- read twice and ordered printed,  and  when  printed  to  be
  committed to the Committee on Investigations and Government Operations
  -- recommitted to the Committee on Investigations and Government Oper-
  ations  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 tax law, in relation to establishing a hire-now  tax
  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 41 to  read
as follows:
  S  41. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER, WHICH
IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER AND
WHICH CREATES A NEW JOB, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX. THE
AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION SHALL BE  EQUAL  TO  THE
PRODUCT  OF 6.85 PERCENT AND THE GROSS WAGES PAID FOR EACH NEW EMPLOYEE.
THE CREDIT SHALL NOT BE MORE THAN FIVE  THOUSAND  DOLLARS  FOR  ANY  NEW
EMPLOYEE  FOR  ONE  FULL  YEAR OF EMPLOYMENT; IF A NEW EMPLOYEE HAS BEEN
HIRED FOR LESS THAN A FULL TAX YEAR THIS AMOUNT SHALL  BE  PRORATED  AND
APPORTIONED TO EACH TAX YEAR BUT SHALL IN NO WAY DECREASE THE FULL THREE
CONSECUTIVE  YEARS  OF  CREDIT  ELIGIBILITY. THE TAXPAYER MAY CLAIM THIS
CREDIT FOR EACH NEW EMPLOYEE FOR A PERIOD OF THREE CONSECUTIVE YEARS  OF
EMPLOYMENT.    THE  TAXPAYER  MAY OFFSET QUARTERLY ESTIMATED TAX RETURNS
WITH THE AMOUNT OF THIS CREDIT EARNED IN ANY PREVIOUS QUARTER.
  (B) UNEMPLOYMENT ENHANCEMENT. FOR CALENDAR YEARS TWO THOUSAND  FIFTEEN
AND  TWO  THOUSAND  SIXTEEN IF A NEW EMPLOYEE WAS RECEIVING UNEMPLOYMENT
INSURANCE BENEFITS AT THE TIME OF HIRE,  AN  ADDITIONAL  THREE  THOUSAND
DOLLAR CREDIT WILL BE ALLOWED FOR THE FIRST FULL YEAR OF EMPLOYMENT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02565-04-4

S. 1861--A                          2

  (C)  DEFINITIONS.  AS  USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (1)  "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT IS HIRED BY
THE TAXPAYER AFTER JULY FIRST, TWO THOUSAND FOURTEEN  AND  BEFORE  APRIL
FIRST,  TWO  THOUSAND FIFTEEN, THAT CAUSES THE TOTAL NUMBER OF EMPLOYEES
TO INCREASE ABOVE BASE EMPLOYMENT OR  CREDIT  EMPLOYMENT,  WHICHEVER  IS
HIGHER.
  (2) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND THIRTEEN.
  (3)  "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.
  (4)  "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED FOR THE PRIOR TAX YEARS.
  (D) REPLACEMENT EMPLOYEES. IF ONE OR MORE NEW EMPLOYEES  FOR  WHICH  A
CREDIT  WAS  EARNED LEAVES THE PAYROLL DURING THE SAME TAXABLE YEAR THAT
AN INDIVIDUAL IS HIRED BY THE TAXPAYER TO WORK IN  THIS  STATE,  CAUSING
THE  TAXPAYER'S  TOTAL  EMPLOYMENT TO EQUAL AN AMOUNT THAT IS ABOVE BASE
EMPLOYMENT BUT AT OR BELOW THE COMPUTED CREDIT EMPLOYMENT FOR THE  TAXA-
BLE  YEAR, THE CREDIT ELIGIBILITY PERIOD FOR THE INDIVIDUAL HIRED DURING
THE TAXABLE YEAR SHALL BE THREE YEARS MINUS THE AMOUNT OF TIME  (ROUNDED
TO  THE  NEXT  FULL MONTH) THAT THE TAXPAYER RECEIVED THE CREDIT FOR THE
DEPARTING EMPLOYEE.
  (E) NO CREDIT SHALL BE ALLOWED UNDER THIS SECTION TO  A  TAXPAYER  FOR
ANY  NEW  EMPLOYEE  IF  THE  TAXPAYER CLAIMS ANY OTHER CREDIT UNDER THIS
ARTICLE FOR SUCH NEW EMPLOYEE WHERE THE BASIS OF SUCH OTHER CREDIT IS AN
INCREASE IN EMPLOYMENT.
  S 2. Section 210 of the tax law is amended by adding a new subdivision
48 to read as follows:
  48. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER  WILL  BE
ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN SECTION FORTY-ONE OF
THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY  TAXABLE  YEAR MAY 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 WILL 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 WILL BE PAID THEREON.
  S  3. Section 606 of the tax law is amended by adding a new subsection
(xx) to read as follows:
  (XX) HIRE-NOW TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED A CREDIT,  TO
THE  EXTENT ALLOWED UNDER SECTION FORTY-ONE 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 EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL 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 WILL  BE
PAID THEREON.
  S  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause  (xxxvii)  to  read  as
follows:

S. 1861--A                          3

(XXXVII) HIRE-NOW TAX CREDIT            AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (XX)                   SUBDIVISION FORTY-EIGHT OF SECTION
                                        TWO HUNDRED TEN
  S 5. This act shall take effect immediately.

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