Senate Bill S6523

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

                                  6523

                            I N  S E N A T E

                            January 22, 2016
                               ___________

Introduced  by  Sen. SANDERS -- read twice and ordered printed, and when
  printed to be committed to the Committee on Veterans, Homeland Securi-
  ty and Military Affairs

AN ACT to amend the tax law, in relation  to  establishing  a  returning
  veterans tax credit for businesses that hire veterans

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Section 210-B of the tax law is amended by  adding  a  new
subdivision 51 to read as follows:
  51.  RETURNING  VETERANS  TAX CREDIT. (A) GENERAL. A TAXPAYER SHALL BE
ALLOWED A CREDIT, TO  BE  COMPUTED  AS  PROVIDED  IN  THIS  SUBDIVISION,
AGAINST  THE  TAX  IMPOSED  BY THIS ARTICLE FOR EACH VETERAN OR DISABLED
VETERAN HIRED DURING A TAXABLE YEAR, PROVIDED THAT:
  (I) SUCH VETERAN IS A NEW EMPLOYEE AND  IS  EMPLOYED  FOR  THIRTY-FIVE
HOURS  OR  MORE  PER WEEK AND REMAINS IN THE EMPLOY OF SUCH TAXPAYER FOR
TWELVE MONTHS OR MORE; OR
  (II) SUCH DISABLED VETERAN IS A  NEW  EMPLOYEE  WHO  IS  EMPLOYED  FOR
SEVENTEEN  AND ONE-HALF HOURS OR MORE PER WEEK AND REMAINS IN THE EMPLOY
OF SUCH TAXPAYER FOR TWELVE MONTHS OR MORE.
  (B) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL  EQUAL
THREE  THOUSAND  DOLLARS PER HIRED VETERAN AND FOUR THOUSAND DOLLARS PER
HIRED DISABLED VETERAN BUT SHALL NOT  EXCEED  FIFTEEN  THOUSAND  DOLLARS
ANNUALLY.
  (C)  CARRYOVERS.  THE  CREDIT  ALLOWED  UNDER  THIS SUBDIVISION MAY BE
CLAIMED AND IF NOT FULLY USED IN THE INITIAL YEAR FOR WHICH  THE  CREDIT
IS  CLAIMED MAY BE CARRIED OVER, IN ORDER, TO EACH OF THE TEN SUCCEEDING
TAXABLE YEARS. THE CREDIT AUTHORIZED BY THIS SUBDIVISION MAY NOT BE USED
TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO.
  (D) DEFINITIONS. AS USED IN  THIS  SUBDIVISION,  THE  FOLLOWING  TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  (I)  "NEW  EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT CAUSES THE
TOTAL NUMBER OF EMPLOYEES TO INCREASE ABOVE BASE  EMPLOYMENT  OR  CREDIT
EMPLOYMENT, WHICHEVER IS HIGHER.
  (II) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND FIFTEEN.

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

                                                           LBD13399-01-5

S. 6523                             2

  (III)  "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.
  (IV) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED FOR THE PRIOR TAX YEARS.
  (V)  "VETERAN"  SHALL  HAVE  THE  SAME MEANING AS SET FORTH IN SECTION
EIGHTY-FIVE OF THE CIVIL SERVICE LAW.
  (VI) "DISABLED VETERAN" SHALL HAVE THE SAME MEANING AS  SET  FORTH  IN
SECTION EIGHTY-FIVE OF THE CIVIL SERVICE LAW.
  S  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xliii)  to  read  as
follows:
(XLIII) RETURNING VETERANS TAX       COSTS UNDER SUBDIVISION
CREDIT; SUBSECTION (CCC)             FIFTY-ONE OF SECTION
                                     TWO HUNDRED TEN-B
  S  3. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) RETURNING VETERANS TAX CREDIT. (1) GENERAL. A TAXPAYER SHALL  BE
ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST
THE  TAX  IMPOSED  BY  THIS ARTICLE FOR EACH VETERAN OR DISABLED VETERAN
HIRED DURING A TAXABLE YEAR, PROVIDED THAT:
  (I) SUCH VETERAN IS A NEW EMPLOYEE AND  IS  EMPLOYED  FOR  THIRTY-FIVE
HOURS  OR  MORE  PER WEEK AND REMAINS IN THE EMPLOY OF SUCH TAXPAYER FOR
TWELVE MONTHS OR MORE; OR
  (II) SUCH DISABLED VETERAN IS A  NEW  EMPLOYEE  AND  IS  EMPLOYED  FOR
SEVENTEEN  AND ONE-HALF HOURS OR MORE PER WEEK AND REMAINS IN THE EMPLOY
OF SUCH TAXPAYER FOR TWELVE MONTHS OR MORE.
  (2) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL  EQUAL
THREE  THOUSAND  DOLLARS PER HIRED VETERAN AND FOUR THOUSAND DOLLARS PER
HIRED DISABLED VETERAN BUT SHALL NOT  EXCEED  FIFTEEN  THOUSAND  DOLLARS
ANNUALLY.
  (3)  CARRYOVERS.  THE  CREDIT  ALLOWED  UNDER  THIS  SUBSECTION MAY BE
CLAIMED AND IF NOT FULLY USED IN THE INITIAL YEAR FOR WHICH  THE  CREDIT
IS  CLAIMED MAY BE CARRIED OVER, IN ORDER, TO EACH OF THE TEN SUCCEEDING
TAXABLE YEARS. THE CREDIT AUTHORIZED BY THIS SUBSECTION MAY NOT BE  USED
TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO.
  (4) DEFINITIONS. AS USED IN THIS SUBSECTION, THE FOLLOWING TERMS SHALL
HAVE THE FOLLOWING MEANINGS:
  (I)  "NEW  EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT CAUSES THE
TOTAL NUMBER OF EMPLOYEES TO INCREASE ABOVE BASE  EMPLOYMENT  OR  CREDIT
EMPLOYMENT, WHICHEVER IS HIGHER.
  (II) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND FIFTEEN.
  (III)  "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.
  (IV) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED FOR THE PRIOR TAX YEARS.
  (V)  "VETERAN"  SHALL  HAVE  THE  SAME MEANING AS SET FORTH IN SECTION
EIGHTY-FIVE OF THE CIVIL SERVICE LAW.
  (VI) "DISABLED VETERAN" SHALL HAVE THE SAME MEANING AS  SET  FORTH  IN
SECTION EIGHTY-FIVE OF THE CIVIL SERVICE LAW.
  S 4. This act shall take effect immediately and shall apply to taxable
years  beginning  on  or  after January 1, 2016 and shall apply to those
employees hired after this act shall take effect.