Senate Bill S5573A

                                 BILL NUMBER:  S5573A

 TITLE OF BILL :

An act to amend the tax law, in relation to establishing the work
opportunity tax credit

 PURPOSE OR GENERAL IDEA OF BILL :

To provide a tax credit for small businesses in order to incentivize
the hiring of long term unemployed persons.

 SUMMARY OF PROVISIONS :

Section one of the bill amends section 210-B of the tax law by adding
a new subdivision 51, which establishes the work opportunity tax
credit. It provides that a taxpayer shall be allowed a credit of two
thousand four hundred dollars for each long term unemployed person
hired during a taxable year. The credit is applicable to businesses
that have fifty or fewer employees. A "long term unemployed person" is
defined as an individual who has been a resident of New York for three
years immediately preceding hiring and who, prior to being hired by
the business eligible for the credit, had been unemployed and
receiving public assistance for six consecutive months or more, and is
retained for full-time unemployment by such business for at least one
year.
              

Section two amends subparagraph (B) of paragraph 1 of subsection (i)
of section 606 of the tax law by adding a new clause to establish the
work opportunity tax credit.

Section three amends section 606 of the tax law by adding a new
subsection (ccc), which establishes the work opportunity tax credit.
It provides that a taxpayer shall be allowed a credit of two thousand
four hundred dollars for each long term unemployed person hired during
a taxable year. The credit is applicable to businesses that have fifty
or fewer employees. A "long term unemployed person" is defined as an
individual who has been a resident of New York for three years
immediately preceding hiring and who, prior to being hired by the
business eligible for the credit, had been unemployed and receiving
public assistance for six consecutive months or more, and is retained
for full-time unemployment by such business for at least one year.

Section four establishes that this act shall take effect immediately
and apply to taxable years beginning on and after January 1, 2017.

 JUSTIFICATION :

As our economy continues to recover from the Great Recession, the
longterm unemployment rate has remained unacceptably high. Studies
across the board show that those who have been unemployed for a longer
period of time have a much harder chance of landing that next job.
Current statistics from the U.S Bureau of Labor reflect that the
number of long- term unemployed persons remains at levels more than
twice as high as those prior to the Great Recession. The problem is
far-reaching with national unemployment rates revealing that despite
recent job growth, the long-term unemployed continue to make up
approximately 30% of the unemployed in all age and education ranges.

At the same time, studies have shown that one of the keys to economic
growth lies within small businesses. The growth of small businesses is
critical to ensuring continued innovation and opportunity, all the
while diversifying our economy. Small businesses are the engine behind
job expansion and a strong economy.


This legislation aims to address two issues: long-term unemployment,
and small business growth. By providing a tax credit to small
businesses for each long-term unemployed individual they hire and
retain as a new employee, this bill will ultimately spur job creation,
provide an added incentive to hire an individual who has had more
difficulty finding work than others, and provide much-needed tax
relief to small businesses.

 PRIOR LEGISLATIVE HISTORY :

None.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately and apply to taxable years
beginning on and after January 1, 2017.