NY State Senate Bill 2015-S1237

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 14, 2016	print number 1237a
Jan 14, 2016	amend and recommit to investigations and government operations
Jan 06, 2016	referred to investigations and government operations
Jan 09, 2015	referred to investigations and government operations

Bill Amendments

Original

A (Active)

2015-S1237 - Details

See Assembly Version of this Bill:: A498
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A2554
2011-2012: S5584, A776
2013-2014: S2703, A1021
2017-2018: S3420, A213
2019-2020: S4606, A2639
2021-2022: S5078
2023-2024: S6378

2015-S1237 - Summary

Provides a 50% tax credit for new income tax revenue generated by a new employee; provides credit may be taken up to 10 years; provides that the Department of Economic Development must monitor and certify the additional employment for any business which applies for the credit; provides any company taking the credit must maintain employment in the state for twice the number of years as the term of the tax credit

2015-S1237 - Sponsor Memo

2015-S1237 - Bill Text download pdf

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

                                  1237

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             January 9, 2015
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to job creation tax credits

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

  Section  1.  This  act  shall  be  known  and may be cited as the "Job
Creation Tax Credit Act of 2015".
  S 2. Section 210-B of the tax law is amended by adding a new  subdivi-
sion 49 to read as follows:
  49.  JOB  CREATION  TAX CREDIT.   (A) AS USED IN THIS SUBDIVISION, THE
FOLLOWING TERMS SHALL HAVE  THE  FOLLOWING  MEANINGS:    (1)  "FULL-TIME
EMPLOYEE"  MEANS  AN INDIVIDUAL WHO IS EMPLOYED FOR CONSIDERATION FOR AT
LEAST THIRTY-FIVE HOURS A WEEK, OR WHO RENDERS  ANY  OTHER  STANDARD  OF
SERVICE  GENERALLY  ACCEPTED  BY  CUSTOM  OR  SPECIFIED  BY  CONTRACT AS
FULL-TIME EMPLOYMENT.
  (2) "NEW EMPLOYEE" MEANS A FULL-TIME  EMPLOYEE  FIRST  EMPLOYED  BY  A
TAXPAYER IN THE PROJECT THAT IS THE SUBJECT OF THE TAX CREDIT AUTHORIZED
UNDER  THIS  SUBDIVISION IN THE TAXABLE YEAR IN WHICH THE TAXPAYER SEEKS
THE CREDIT. "NEW EMPLOYEE" ALSO  MAY  INCLUDE  AN  EMPLOYEE  REHIRED  OR
CALLED  BACK  FROM LAY-OFF TO WORK IN A NEW FACILITY OR ON A NEW PRODUCT
OR SERVICE ESTABLISHED OR PRODUCED BY THE TAXPAYER  DURING  THE  TAXABLE
YEAR IN WHICH THE CREDIT IS SOUGHT. "NEW EMPLOYEE" SHALL NOT INCLUDE ANY
EMPLOYEE  OF THE TAXPAYER WHO WAS PREVIOUSLY EMPLOYED IN THIS STATE BY A
RELATED MEMBER OF THE TAXPAYER AND WHOSE EMPLOYMENT WAS SHIFTED  TO  THE
TAXPAYER DURING THE TAXABLE YEAR IN WHICH THE CREDIT IS SOUGHT. IN ADDI-
TION,  "NEW  EMPLOYEE" SHALL NOT INCLUDE A CHILD, GRANDCHILD, PARENT, OR
SPOUSE, OTHER THAN A SPOUSE WHO IS LEGALLY SEPARATED FROM  THE  INDIVID-
UAL,  OR ANY INDIVIDUAL WHO IS AN EMPLOYEE OF THE TAXPAYER AND WHO HAS A
DIRECT OR INDIRECT OWNERSHIP INTEREST OF AT LEAST FIVE  PERCENT  IN  THE
PROFITS,  CAPITAL, OR VALUE OF THE TAXPAYER. OWNERSHIP INTEREST SHALL BE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02833-01-5

S. 1237                             2

DETERMINED IN ACCORDANCE WITH SECTION FIFTEEN HUNDRED SIXTY-THREE OF THE
INTERNAL REVENUE CODE AND REGULATIONS PRESCRIBED THEREUNDER.
  (3)  "NEW  INCOME  TAX  REVENUE" MEANS THE TOTAL AMOUNT WITHHELD UNDER
THIS CHAPTER BY THE TAXPAYER DURING THE TAXABLE YEAR  FROM  THE  COMPEN-
SATION OF NEW EMPLOYEES FOR THE TAXES LEVIED UNDER THIS CHAPTER.
  (4) "RELATED MEMBER" HAS THE SAME MEANING AS PROVIDED IN THIS CHAPTER.
  (B)  THE  JOB  CREATION  TAX  CREDIT AUTHORIZED UNDER THIS SUBDIVISION
SHALL BE FOR THE PURPOSE OF FOSTERING JOB CREATION IN THIS STATE. SUCH A
GRANT SHALL TAKE THE FORM OF A REFUNDABLE CREDIT ALLOWED AGAINST THE TAX
IMPOSED UNDER THIS CHAPTER. THE CREDIT SHALL BE CLAIMED AFTER THE ALLOW-
ANCE OF ALL OTHER CREDITS PROVIDED BY THIS CHAPTER. THE  AMOUNT  OF  THE
CREDIT  SHALL  EQUAL  THE  NEW  INCOME  TAX REVENUE FOR THE TAXABLE YEAR
MULTIPLIED BY FIFTY PERCENT.
  (C) IN ORDER TO QUALIFY FOR THE CREDIT THE TAXPAYER MUST SUBMIT TO THE
DEPARTMENT OF ECONOMIC DEVELOPMENT IN THE TAXABLE YEAR FOR WHICH  CREDIT
IS  SOUGHT  A  FORM  PROVIDED  BY  SUCH DEPARTMENT IN WHICH THE TAXPAYER
STATES THE FOLLOWING:
  (1) THE TAXPAYER'S PROJECT WILL CREATE NEW JOBS IN THIS STATE;
  (2) THE TAXPAYER'S PROJECT IS ECONOMICALLY SOUND AND WILL BENEFIT  THE
PEOPLE  OF  THIS  STATE  BY  INCREASING OPPORTUNITIES FOR EMPLOYMENT AND
STRENGTHENING THE ECONOMY OF THIS STATE;
  (3) RECEIVING THE TAX CREDIT IS A MAJOR FACTOR IN THE TAXPAYER'S DECI-
SION TO GO FORWARD WITH THE PROJECT;
  (4) A DETAILED DESCRIPTION OF THE PROJECT THAT IS THE SUBJECT  OF  THE
AGREEMENT;
  (5)  THE  TERM OF THE TAX CREDIT WHICH SHALL NOT EXCEED TEN YEARS, AND
THE FIRST TAXABLE YEAR FOR WHICH THE CREDIT MAY BE CLAIMED;
  (6) THAT  THE  TAXPAYER  SHALL  MAINTAIN  OPERATIONS  AT  THE  PROJECT
LOCATION  FOR  AT LEAST TWICE THE NUMBER OF YEARS AS THE TERM OF THE TAX
CREDIT;
  (7) THAT FIFTY PERCENT OF THE NEW INCOME TAX REVENUE WILL  BE  ALLOWED
AS THE AMOUNT OF THE CREDIT FOR EACH TAXABLE YEAR;
  (8)  A  SPECIFIC  METHOD  FOR  DETERMINING  HOW MANY NEW EMPLOYEES ARE
EMPLOYED DURING A TAXABLE YEAR;
  (9) THAT THE TAXPAYER ANNUALLY SHALL REPORT  TO  THE  COMMISSIONER  OF
ECONOMIC  DEVELOPMENT  THE  NUMBER  OF NEW EMPLOYEES, THE NEW INCOME TAX
REVENUE WITHHELD IN CONNECTION WITH THE  NEW  EMPLOYEES  AND  ANY  OTHER
INFORMATION  THE  COMMISSIONER  OF ECONOMIC DEVELOPMENT NEEDS TO PERFORM
HIS OR HER DUTIES UNDER THIS SUBDIVISION; AND
  (10) THAT THE COMMISSIONER  OF  ECONOMIC  DEVELOPMENT  SHALL  ANNUALLY
VERIFY  THE AMOUNTS REPORTED PURSUANT TO SUBPARAGRAPH NINE OF THIS PARA-
GRAPH, AND AFTER DOING SO SHALL ISSUE  A  CERTIFICATE  TO  THE  TAXPAYER
STATING THAT THE AMOUNTS HAVE BEEN VERIFIED.
  (D)  A  TAXPAYER  CLAIMING A CREDIT UNDER THIS SECTION SHALL SUBMIT TO
THE COMMISSIONER A COPY OF THE COMMISSIONER  OF  ECONOMIC  DEVELOPMENT'S
CERTIFICATE  OF  VERIFICATION, AS PROVIDED IN SUBPARAGRAPH NINE OF PARA-
GRAPH (C) OF THIS SUBDIVISION FOR THE TAXABLE YEAR.
  (E) THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AFTER CONSULTATION  WITH
THE COMMISSIONER SHALL ADOPT SUCH RULES AND REGULATIONS AS ARE NECESSARY
TO IMPLEMENT THIS SUBDIVISION.
  (F)  FOR  THE  PURPOSES  OF  THIS SUBDIVISION A TAXPAYER MAY INCLUDE A
PARTNERSHIP, A CORPORATION THAT HAS MADE AN ELECTION UNDER SUBCHAPTER  S
OF  CHAPTER ONE OF SUBTITLE A OF THE INTERNAL REVENUE CODE, OR ANY OTHER
BUSINESS ENTITY THROUGH WHICH INCOME FLOWS AS A  DISTRIBUTIVE  SHARE  TO
ITS  OWNERS.  A CREDIT RECEIVED UNDER THIS SUBDIVISION BY A PARTNERSHIP,
S-CORPORATION, OR OTHER SUCH BUSINESS ENTITY SHALL BE APPORTIONED  AMONG

S. 1237                             3

THE  PERSONS TO WHOM THE INCOME OR PROFIT OF THE PARTNERSHIP, S-CORPORA-
TION, OR OTHER ENTITY IS DISTRIBUTED, IN THE SAME PROPORTIONS  AS  THOSE
IN WHICH THE INCOME OR PROFIT IS DISTRIBUTED.
  (G)  IF  THE  COMMISSIONER  OF  ECONOMIC DEVELOPMENT DETERMINES THAT A
TAXPAYER WHO HAS RECEIVED A CREDIT UNDER THIS SUBDIVISION IS NOT COMPLY-
ING WITH THE REQUIREMENT OF SUBPARAGRAPH NINE OF PARAGRAPH (C)  OF  THIS
SUBDIVISION,  HE  OR SHE SHALL NOTIFY THE COMMISSIONER OF THE NONCOMPLI-
ANCE.  AFTER RECEIVING SUCH A NOTICE, AND AFTER GIVING THE  TAXPAYER  AN
OPPORTUNITY  TO  EXPLAIN THE NONCOMPLIANCE, THE COMMISSIONER MAY MAKE AN
ASSESSMENT AGAINST THE TAXPAYER UNDER THIS CHAPTER  FOR  AN  AMOUNT  NOT
EXCEEDING  THE SUM OF ANY PREVIOUSLY ALLOWED CREDITS UNDER THIS SUBDIVI-
SION.
  (H) ON OR BEFORE THE THIRTY-FIRST DAY  OF  MARCH  OF  EACH  YEAR,  THE
COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL SUBMIT A REPORT TO THE GOVER-
NOR,  THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY
AND THE MINORITY LEADERS OF THE SENATE AND ASSEMBLY ON  THE  TAX  CREDIT
PROGRAM  PROVIDED  FOR  IN  THIS  SUBDIVISION.  THE REPORT SHALL INCLUDE
INFORMATION ON THE NUMBER OF TAXPAYERS RECEIVING TAX CREDITS PURSUANT TO
THIS SUBDIVISION DURING THE PRECEDING CALENDAR YEAR,  A  DESCRIPTION  OF
THE  PROJECTS  THAT  ARE THE SUBJECT OF THE CREDIT, AND AN UPDATE ON THE
STATUS OF PROJECTS FOR WHICH CREDITS WERE ALLOWED DURING  THE  PRECEDING
CALENDAR YEAR.
  DURING  THE  FIRST YEAR OF THE TAX CREDIT PROGRAM, THE COMMISSIONER OF
ECONOMIC DEVELOPMENT IN CONJUNCTION WITH THE DIRECTOR  OF  BUDGET  SHALL
CONDUCT  AN  EVALUATION  OF  SUCH  PROGRAM. THE EVALUATION SHALL INCLUDE
ASSESSMENTS OF THE EFFECTIVENESS OF THE PROGRAM IN CREATING  NEW JOBS IN
THIS STATE AND OF THE REVENUE IMPACT OF THE  PROGRAM.  SUCH  REPORT  MAY
ALSO  INCLUDE  A REVIEW OF THE PRACTICES AND EXPERIENCES OF OTHER STATES
WITH SIMILAR PROGRAMS. THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT  SHALL
SUBMIT  A REPORT ON THE EVALUATION TO THE GOVERNOR, THE TEMPORARY PRESI-
DENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY AND THE MINORITY LEADERS
OF THE SENATE AND ASSEMBLY ON OR  BEFORE  JANUARY  FIRST,  TWO  THOUSAND
EIGHTEEN.
  S  3. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) JOB CREATION TAX CREDIT.  (1) AS USED IN  THIS  SUBSECTION,  THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "FULL-TIME  EMPLOYEE"  MEANS  AN  INDIVIDUAL  WHO IS EMPLOYED FOR
CONSIDERATION FOR AT LEAST THIRTY-FIVE HOURS A WEEK, OR WHO RENDERS  ANY
OTHER  STANDARD  OF SERVICE GENERALLY ACCEPTED BY CUSTOM OR SPECIFIED BY
CONTRACT AS FULL-TIME EMPLOYMENT.
  (B) "NEW EMPLOYEE" MEANS A FULL-TIME  EMPLOYEE  FIRST  EMPLOYED  BY  A
TAXPAYER IN THE PROJECT THAT IS THE SUBJECT OF THE TAX CREDIT AUTHORIZED
UNDER  THIS  SUBSECTION  IN THE TAXABLE YEAR IN WHICH THE TAXPAYER SEEKS
THE CREDIT. "NEW EMPLOYEE" ALSO  MAY  INCLUDE  AN  EMPLOYEE  REHIRED  OR
CALLED  BACK  FROM LAY-OFF TO WORK IN A NEW FACILITY OR ON A NEW PRODUCT
OR SERVICE ESTABLISHED OR PRODUCED BY THE TAXPAYER  DURING  THE  TAXABLE
YEAR IN WHICH THE CREDIT IS SOUGHT. "NEW EMPLOYEE" SHALL NOT INCLUDE ANY
EMPLOYEE  OF THE TAXPAYER WHO WAS PREVIOUSLY EMPLOYED IN THIS STATE BY A
RELATED MEMBER OF THE TAXPAYER AND WHOSE EMPLOYMENT WAS SHIFTED  TO  THE
TAXPAYER DURING THE TAXABLE YEAR IN WHICH THE CREDIT IS SOUGHT. IN ADDI-
TION,  "NEW  EMPLOYEE" SHALL NOT INCLUDE A CHILD, GRANDCHILD, PARENT, OR
SPOUSE, OTHER THAN A SPOUSE WHO IS LEGALLY SEPARATED FROM  THE  INDIVID-
UAL,  OR ANY INDIVIDUAL WHO IS AN EMPLOYEE OF THE TAXPAYER AND WHO HAS A
DIRECT OR INDIRECT OWNERSHIP INTEREST OF AT LEAST FIVE  PERCENT  IN  THE
PROFITS,  CAPITAL, OR VALUE OF THE TAXPAYER. OWNERSHIP INTEREST SHALL BE

S. 1237                             4

DETERMINED IN ACCORDANCE WITH SECTION FIFTEEN HUNDRED SIXTY-THREE OF THE
INTERNAL REVENUE CODE AND REGULATIONS PRESCRIBED THEREUNDER.
  (C)  "NEW  INCOME  TAX  REVENUE" MEANS THE TOTAL AMOUNT WITHHELD UNDER
THIS CHAPTER BY THE TAXPAYER DURING THE TAXABLE YEAR  FROM  THE  COMPEN-
SATION OF NEW EMPLOYEES FOR THE TAX LEVIES UNDER THIS CHAPTER.
  (D) "RELATED MEMBER" HAS THE SAME MEANING AS PROVIDED IN THIS CHAPTER.
  (2) THE JOB CREATION TAX CREDIT AUTHORIZED UNDER THIS SUBSECTION SHALL
BE  FOR  THE  PURPOSE  OF  FOSTERING JOB CREATION IN THIS STATE.  SUCH A
GRANT SHALL TAKE THE FORM OF A REFUNDABLE CREDIT ALLOWED AGAINST THE TAX
IMPOSED UNDER THIS CHAPTER. THE CREDIT SHALL BE CLAIMED AFTER THE ALLOW-
ANCE OF ALL OTHER CREDITS PROVIDED BY THIS CHAPTER. THE  AMOUNT  OF  THE
CREDIT  SHALL  EQUAL  THE  NEW  INCOME  TAX REVENUE FOR THE TAXABLE YEAR
MULTIPLIED BY FIFTY PERCENT.
  (3) IN ORDER TO QUALIFY FOR THE CREDIT THE TAXPAYER MUST SUBMIT TO THE
DEPARTMENT OF ECONOMIC DEVELOPMENT IN THE TAXABLE YEAR FOR WHICH  CREDIT
IS  SOUGHT  A  FORM  PROVIDED  BY  SUCH DEPARTMENT IN WHICH THE TAXPAYER
STATES THE FOLLOWING:
  (A) THE TAXPAYER'S PROJECT WILL CREATE NEW JOBS IN THIS STATE;
  (B) THE TAXPAYER'S PROJECT IS ECONOMICALLY SOUND AND WILL BENEFIT  THE
PEOPLE  OF  THIS  STATE  BY  INCREASING OPPORTUNITIES FOR EMPLOYMENT AND
STRENGTHENING THE ECONOMY OF THIS STATE;
  (C) RECEIVING THE TAX CREDIT IS A MAJOR FACTOR IN THE TAXPAYER'S DECI-
SION TO GO FORWARD WITH THE PROJECT;
  (D) A DETAILED DESCRIPTION OF THE PROJECT THAT IS THE SUBJECT  OF  THE
AGREEMENT;
  (E)  THE  TERM OF THE TAX CREDIT WHICH SHALL NOT EXCEED TEN YEARS, AND
THE FIRST TAXABLE YEAR FOR WHICH THE CREDIT MAY BE CLAIMED;
  (F) THAT  THE  TAXPAYER  SHALL  MAINTAIN  OPERATIONS  AT  THE  PROJECT
LOCATION  FOR  AT LEAST TWICE THE NUMBER OF YEARS AS THE TERM OF THE TAX
CREDIT;
  (G) THAT FIFTY PERCENT OF THE NEW INCOME TAX REVENUE WILL  BE  ALLOWED
AS THE AMOUNT OF THE CREDIT FOR EACH TAXABLE YEAR;
  (H)  A  SPECIFIC  METHOD  FOR  DETERMINING  HOW MANY NEW EMPLOYEES ARE
EMPLOYED DURING A TAXABLE YEAR;
  (I) THAT THE TAXPAYER ANNUALLY SHALL REPORT  TO  THE  COMMISSIONER  OF
ECONOMIC  DEVELOPMENT  THE  NUMBER  OF NEW EMPLOYEES, THE NEW INCOME TAX
REVENUE WITHHELD IN CONNECTION WITH THE  NEW  EMPLOYEES  AND  ANY  OTHER
INFORMATION  THE  COMMISSIONER  OF ECONOMIC DEVELOPMENT NEEDS TO PERFORM
HIS OR HER DUTIES UNDER THIS SUBSECTION; AND
  (J) THAT THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL ANNUALLY VERI-
FY THE AMOUNTS REPORTED PURSUANT TO SUBPARAGRAPH (I) OF THIS  PARAGRAPH,
AND  AFTER  DOING  SO  SHALL ISSUE A CERTIFICATE TO THE TAXPAYER STATING
THAT THE AMOUNTS HAVE BEEN VERIFIED.
  (4) A TAXPAYER CLAIMING A CREDIT UNDER THIS SUBSECTION SHALL SUBMIT TO
THE COMMISSIONER A COPY OF THE COMMISSIONER  OF  ECONOMIC  DEVELOPMENT'S
CERTIFICATE OF VERIFICATION AS PROVIDED IN SUBPARAGRAPH (I) OF PARAGRAPH
THREE OF THIS SUBSECTION FOR THE TAXABLE YEAR.
  (5)  THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AFTER CONSULTATION WITH
THE COMMISSIONER SHALL ADOPT SUCH RULES AND REGULATIONS AS ARE NECESSARY
TO IMPLEMENT THIS SUBSECTION.
  (6) FOR THE PURPOSES OF THIS SUBSECTION A TAXPAYER MAY INCLUDE A PART-
NERSHIP, A CORPORATION THAT HAS MADE AN ELECTION UNDER SUBCHAPTER  S  OF
CHAPTER  ONE  OF  SUBTITLE  A OF THE INTERNAL REVENUE CODE, OR ANY OTHER
BUSINESS ENTITY THROUGH WHICH INCOME FLOWS AS A  DISTRIBUTIVE  SHARE  TO
ITS  OWNERS.  A  CREDIT RECEIVED UNDER THIS SUBSECTION BY A PARTNERSHIP,
S-CORPORATION, OR OTHER SUCH BUSINESS ENTITY SHALL BE APPORTIONED  AMONG

S. 1237                             5

THE  PERSONS TO WHOM THE INCOME OR PROFIT OF THE PARTNERSHIP, S-CORPORA-
TION, OR OTHER ENTITY IS DISTRIBUTED, IN THE SAME PROPORTIONS  AS  THOSE
IN WHICH THE INCOME OR PROFIT IS DISTRIBUTED.
  (7)  IF  THE  COMMISSIONER  OF  ECONOMIC DEVELOPMENT DETERMINES THAT A
TAXPAYER WHO HAS RECEIVED A CREDIT UNDER THIS SUBSECTION IS NOT  COMPLY-
ING  WITH THE REQUIREMENT OF SUBPARAGRAPH (I) OF PARAGRAPH THREE OF THIS
SUBSECTION, HE OR SHE SHALL NOTIFY THE COMMISSIONER  OF  THE  NONCOMPLI-
ANCE.    AFTER RECEIVING SUCH A NOTICE, AND AFTER GIVING THE TAXPAYER AN
OPPORTUNITY TO EXPLAIN THE NONCOMPLIANCE, THE COMMISSIONER MAY  MAKE  AN
ASSESSMENT  AGAINST  THE  TAXPAYER  UNDER THIS CHAPTER FOR AN AMOUNT NOT
EXCEEDING  THE  SUM  OF  ANY  PREVIOUSLY  ALLOWED  CREDITS  UNDER   THIS
SUBSECTION.
  (8)  ON  OR  BEFORE  THE  THIRTY-FIRST  DAY OF MARCH OF EACH YEAR, THE
COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL SUBMIT A REPORT TO THE GOVER-
NOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE  ASSEMBLY
AND  THE  MINORITY  LEADERS OF THE SENATE AND ASSEMBLY ON THE TAX CREDIT
PROGRAM PROVIDED FOR IN THIS SUBSECTION. THE REPORT SHALL INCLUDE INFOR-
MATION ON THE NUMBER OF TAXPAYERS RECEIVING TAX CREDITS PURSUANT TO THIS
SUBSECTION DURING THE PRECEDING CALENDAR  YEAR,  A  DESCRIPTION  OF  THE
PROJECTS THAT ARE THE SUBJECT OF THE CREDIT, AND AN UPDATE ON THE STATUS
OF PROJECTS FOR WHICH CREDITS WERE ALLOWED DURING THE PRECEDING CALENDAR
YEAR.
  DURING  THE  FIRST YEAR OF THE TAX CREDIT PROGRAM, THE COMMISSIONER OF
ECONOMIC DEVELOPMENT IN CONJUNCTION WITH THE DIRECTOR  OF  BUDGET  SHALL
CONDUCT  AN  EVALUATION  OF  SUCH  PROGRAM. THE EVALUATION SHALL INCLUDE
ASSESSMENTS OF THE EFFECTIVENESS OF THE PROGRAM IN CREATING NEW JOBS  IN
THIS  STATE  AND  OF  THE REVENUE IMPACT OF THE PROGRAM. SUCH REPORT MAY
ALSO INCLUDE A REVIEW OF THE PRACTICES AND EXPERIENCES OF  OTHER  STATES
WITH  SIMILAR  PROGRAMS.  THE  DEPARTMENT  OF ECONOMIC DEVELOPMENT SHALL
SUBMIT A REPORT ON THE EVALUATION TO THE GOVERNOR, THE TEMPORARY  PRESI-
DENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY AND THE MINORITY LEADERS
OF  THE  SENATE  AND  ASSEMBLY  ON OR BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY.
  S 4. This act shall take effect immediately and shall apply to taxable
years commencing on and after April 1, 2015.

2015-S1237A (ACTIVE) - Details

See Assembly Version of this Bill:: A498
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A2554
2011-2012: S5584, A776
2013-2014: S2703, A1021
2017-2018: S3420, A213
2019-2020: S4606, A2639
2021-2022: S5078
2023-2024: S6378

2015-S1237A (ACTIVE) - Summary

2015-S1237A (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1237A

 TITLE OF BILL :

An act to amend the tax law, in relation to job creation tax credits

 PURPOSE OR GENERAL IDEA OF BILL :

This bill provides a tax credit for any business which creates new
employment in New York State. The credit will be 500 of the new income
tax revenue created as a result of the additional jobs created.

 SUMMARY OF SPECIFIC PROVISIONS :

Establishes the Job Creation Tax Credit Act of 2013. The bill provides
a 50% tax credit for new income tax revenue generated by a new
employee. The credit may be taken for up to 10 years. The State
Department of Economic Development must monitor and certify the
additional employment for any business which applies for the credit.
Any company taking the credit must maintain employment in the state
for twice the number of years as the term of the tax credit. The Tax
Commissioner may recoup the credit if the company fails to comply with
the requirements for receiving the credit. The Department of Economic
Development shall annually report to the Governor and Legislative
Leaders (Majority and Minority) on the number and amounts of credits
taken, as well as the number of firms participating. The tax credit

program will be fully evaluated five years after enactment.

 JUSTIFICATION :

The State of New York has experienced a severe economic recession with
significant job losses over the past few years. Every region of the
state has suffered as both large and small businesses reduced their
employment levels. This tax credit is designed to reward businesses
which add new employees. It tries to stimulate the state's economy
through a labor rather than a capital investment. The credit will not
cost the state in terms of lost tax receipts since it is based upon
the additional withholding taxes collected from the new employees.

 PRIOR LEGISLATIVE HISTORY :

2013-2014: S.2703A Amended and Recommitted to Investigations and
Government Operations;
2011-12: S.5584A/A.776A - Gov Ops/Ways & Means
2009-2010: A.2554
2007-2008: A.679

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect immediately.

2015-S1237A (ACTIVE) - Bill Text download pdf

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

                                 1237--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             January 9, 2015
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  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 job creation tax credits

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

  Section 1. This act shall be known  and  may  be  cited  as  the  "Job
Creation Tax Credit Act of 2016".
  S  2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
  49. JOB CREATION TAX CREDIT.   (A) AS USED IN  THIS  SUBDIVISION,  THE
FOLLOWING  TERMS  SHALL  HAVE  THE  FOLLOWING MEANINGS:   (1) "FULL-TIME
EMPLOYEE" MEANS AN INDIVIDUAL WHO IS EMPLOYED FOR CONSIDERATION  FOR  AT
LEAST  THIRTY-FIVE  HOURS  A  WEEK, OR WHO RENDERS ANY OTHER STANDARD OF
SERVICE GENERALLY  ACCEPTED  BY  CUSTOM  OR  SPECIFIED  BY  CONTRACT  AS
FULL-TIME EMPLOYMENT.
  (2)  "NEW  EMPLOYEE"  MEANS  A  FULL-TIME EMPLOYEE FIRST EMPLOYED BY A
TAXPAYER IN THE PROJECT THAT IS THE SUBJECT OF THE TAX CREDIT AUTHORIZED
UNDER THIS SUBDIVISION IN THE TAXABLE YEAR IN WHICH THE  TAXPAYER  SEEKS
THE  CREDIT.  "NEW  EMPLOYEE"  ALSO  MAY  INCLUDE AN EMPLOYEE REHIRED OR
CALLED BACK FROM LAY-OFF TO WORK IN A NEW FACILITY OR ON A  NEW  PRODUCT
OR  SERVICE  ESTABLISHED  OR PRODUCED BY THE TAXPAYER DURING THE TAXABLE
YEAR IN WHICH THE CREDIT IS SOUGHT. "NEW EMPLOYEE" SHALL NOT INCLUDE ANY
EMPLOYEE OF THE TAXPAYER WHO WAS PREVIOUSLY EMPLOYED IN THIS STATE BY  A
RELATED  MEMBER  OF THE TAXPAYER AND WHOSE EMPLOYMENT WAS SHIFTED TO THE
TAXPAYER DURING THE TAXABLE YEAR IN WHICH THE CREDIT IS SOUGHT. IN ADDI-
TION, "NEW EMPLOYEE" SHALL NOT INCLUDE A CHILD, GRANDCHILD,  PARENT,  OR
SPOUSE,  OTHER  THAN A SPOUSE WHO IS LEGALLY SEPARATED FROM THE INDIVID-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02833-02-6

S. 1237--A                          2

UAL, OR ANY INDIVIDUAL WHO IS AN EMPLOYEE OF THE TAXPAYER AND WHO HAS  A
DIRECT  OR  INDIRECT  OWNERSHIP INTEREST OF AT LEAST FIVE PERCENT IN THE
PROFITS, CAPITAL, OR VALUE OF THE TAXPAYER. OWNERSHIP INTEREST SHALL  BE
DETERMINED IN ACCORDANCE WITH SECTION FIFTEEN HUNDRED SIXTY-THREE OF THE
INTERNAL REVENUE CODE AND REGULATIONS PRESCRIBED THEREUNDER.
  (3)  "NEW  INCOME  TAX  REVENUE" MEANS THE TOTAL AMOUNT WITHHELD UNDER
THIS CHAPTER BY THE TAXPAYER DURING THE TAXABLE YEAR  FROM  THE  COMPEN-
SATION OF NEW EMPLOYEES FOR THE TAXES LEVIED UNDER THIS CHAPTER.
  (4) "RELATED MEMBER" HAS THE SAME MEANING AS PROVIDED IN THIS CHAPTER.
  (B)  THE  JOB  CREATION  TAX  CREDIT AUTHORIZED UNDER THIS SUBDIVISION
SHALL BE FOR THE PURPOSE OF FOSTERING JOB CREATION IN THIS STATE. SUCH A
GRANT SHALL TAKE THE FORM OF A REFUNDABLE CREDIT ALLOWED AGAINST THE TAX
IMPOSED UNDER THIS CHAPTER. THE CREDIT SHALL BE CLAIMED AFTER THE ALLOW-
ANCE OF ALL OTHER CREDITS PROVIDED BY THIS CHAPTER. THE  AMOUNT  OF  THE
CREDIT  SHALL  EQUAL  THE  NEW  INCOME  TAX REVENUE FOR THE TAXABLE YEAR
MULTIPLIED BY FIFTY PERCENT.
  (C) IN ORDER TO QUALIFY FOR THE CREDIT THE TAXPAYER MUST SUBMIT TO THE
DEPARTMENT OF ECONOMIC DEVELOPMENT IN THE TAXABLE YEAR FOR WHICH  CREDIT
IS  SOUGHT  A  FORM  PROVIDED  BY  SUCH DEPARTMENT IN WHICH THE TAXPAYER
STATES THE FOLLOWING:
  (1) THE TAXPAYER'S PROJECT WILL CREATE NEW JOBS IN THIS STATE;
  (2) THE TAXPAYER'S PROJECT IS ECONOMICALLY SOUND AND WILL BENEFIT  THE
PEOPLE  OF  THIS  STATE  BY  INCREASING OPPORTUNITIES FOR EMPLOYMENT AND
STRENGTHENING THE ECONOMY OF THIS STATE;
  (3) RECEIVING THE TAX CREDIT IS A MAJOR FACTOR IN THE TAXPAYER'S DECI-
SION TO GO FORWARD WITH THE PROJECT;
  (4) A DETAILED DESCRIPTION OF THE PROJECT THAT IS THE SUBJECT  OF  THE
AGREEMENT;
  (5)  THE  TERM OF THE TAX CREDIT WHICH SHALL NOT EXCEED TEN YEARS, AND
THE FIRST TAXABLE YEAR FOR WHICH THE CREDIT MAY BE CLAIMED;
  (6) THAT  THE  TAXPAYER  SHALL  MAINTAIN  OPERATIONS  AT  THE  PROJECT
LOCATION  FOR  AT LEAST TWICE THE NUMBER OF YEARS AS THE TERM OF THE TAX
CREDIT;
  (7) THAT FIFTY PERCENT OF THE NEW INCOME TAX REVENUE WILL  BE  ALLOWED
AS THE AMOUNT OF THE CREDIT FOR EACH TAXABLE YEAR;
  (8)  A  SPECIFIC  METHOD  FOR  DETERMINING  HOW MANY NEW EMPLOYEES ARE
EMPLOYED DURING A TAXABLE YEAR;
  (9) THAT THE TAXPAYER ANNUALLY SHALL REPORT  TO  THE  COMMISSIONER  OF
ECONOMIC  DEVELOPMENT  THE  NUMBER  OF NEW EMPLOYEES, THE NEW INCOME TAX
REVENUE WITHHELD IN CONNECTION WITH THE  NEW  EMPLOYEES  AND  ANY  OTHER
INFORMATION  THE  COMMISSIONER  OF ECONOMIC DEVELOPMENT NEEDS TO PERFORM
HIS OR HER DUTIES UNDER THIS SUBDIVISION; AND
  (10) THAT THE COMMISSIONER  OF  ECONOMIC  DEVELOPMENT  SHALL  ANNUALLY
VERIFY  THE AMOUNTS REPORTED PURSUANT TO SUBPARAGRAPH NINE OF THIS PARA-
GRAPH, AND AFTER DOING SO SHALL ISSUE  A  CERTIFICATE  TO  THE  TAXPAYER
STATING THAT THE AMOUNTS HAVE BEEN VERIFIED.
  (D)  A  TAXPAYER  CLAIMING A CREDIT UNDER THIS SECTION SHALL SUBMIT TO
THE COMMISSIONER A COPY OF THE COMMISSIONER  OF  ECONOMIC  DEVELOPMENT'S
CERTIFICATE  OF  VERIFICATION, AS PROVIDED IN SUBPARAGRAPH NINE OF PARA-
GRAPH (C) OF THIS SUBDIVISION FOR THE TAXABLE YEAR.
  (E) THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AFTER CONSULTATION  WITH
THE COMMISSIONER SHALL ADOPT SUCH RULES AND REGULATIONS AS ARE NECESSARY
TO IMPLEMENT THIS SUBDIVISION.
  (F)  FOR  THE  PURPOSES  OF  THIS SUBDIVISION A TAXPAYER MAY INCLUDE A
PARTNERSHIP, A CORPORATION THAT HAS MADE AN ELECTION UNDER SUBCHAPTER  S
OF  CHAPTER ONE OF SUBTITLE A OF THE INTERNAL REVENUE CODE, OR ANY OTHER

S. 1237--A                          3

BUSINESS ENTITY THROUGH WHICH INCOME FLOWS AS A  DISTRIBUTIVE  SHARE  TO
ITS  OWNERS.  A CREDIT RECEIVED UNDER THIS SUBDIVISION BY A PARTNERSHIP,
S-CORPORATION, OR OTHER SUCH BUSINESS ENTITY SHALL BE APPORTIONED  AMONG
THE  PERSONS TO WHOM THE INCOME OR PROFIT OF THE PARTNERSHIP, S-CORPORA-
TION, OR OTHER ENTITY IS DISTRIBUTED, IN THE SAME PROPORTIONS  AS  THOSE
IN WHICH THE INCOME OR PROFIT IS DISTRIBUTED.
  (G)  IF  THE  COMMISSIONER  OF  ECONOMIC DEVELOPMENT DETERMINES THAT A
TAXPAYER WHO HAS RECEIVED A CREDIT UNDER THIS SUBDIVISION IS NOT COMPLY-
ING WITH THE REQUIREMENT OF SUBPARAGRAPH NINE OF PARAGRAPH (C)  OF  THIS
SUBDIVISION,  HE  OR SHE SHALL NOTIFY THE COMMISSIONER OF THE NONCOMPLI-
ANCE.  AFTER RECEIVING SUCH A NOTICE, AND AFTER GIVING THE  TAXPAYER  AN
OPPORTUNITY  TO  EXPLAIN THE NONCOMPLIANCE, THE COMMISSIONER MAY MAKE AN
ASSESSMENT AGAINST THE TAXPAYER UNDER THIS CHAPTER  FOR  AN  AMOUNT  NOT
EXCEEDING  THE SUM OF ANY PREVIOUSLY ALLOWED CREDITS UNDER THIS SUBDIVI-
SION.
  (H) ON OR BEFORE THE THIRTY-FIRST DAY  OF  MARCH  OF  EACH  YEAR,  THE
COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL SUBMIT A REPORT TO THE GOVER-
NOR,  THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY
AND THE MINORITY LEADERS OF THE SENATE AND ASSEMBLY ON  THE  TAX  CREDIT
PROGRAM  PROVIDED  FOR  IN  THIS  SUBDIVISION.  THE REPORT SHALL INCLUDE
INFORMATION ON THE NUMBER OF TAXPAYERS RECEIVING TAX CREDITS PURSUANT TO
THIS SUBDIVISION DURING THE PRECEDING CALENDAR YEAR,  A  DESCRIPTION  OF
THE  PROJECTS  THAT  ARE THE SUBJECT OF THE CREDIT, AND AN UPDATE ON THE
STATUS OF PROJECTS FOR WHICH CREDITS WERE ALLOWED DURING  THE  PRECEDING
CALENDAR YEAR.
  DURING  THE  FIRST YEAR OF THE TAX CREDIT PROGRAM, THE COMMISSIONER OF
ECONOMIC DEVELOPMENT IN CONJUNCTION WITH THE DIRECTOR  OF  BUDGET  SHALL
CONDUCT  AN  EVALUATION  OF  SUCH  PROGRAM. THE EVALUATION SHALL INCLUDE
ASSESSMENTS OF THE EFFECTIVENESS OF THE PROGRAM IN CREATING  NEW JOBS IN
THIS STATE AND OF THE REVENUE IMPACT OF THE  PROGRAM.  SUCH  REPORT  MAY
ALSO  INCLUDE  A REVIEW OF THE PRACTICES AND EXPERIENCES OF OTHER STATES
WITH SIMILAR PROGRAMS. THE  DEPARTMENT  OF  ECONOMIC  DEVELOPMENT  SHALL
SUBMIT  A REPORT ON THE EVALUATION TO THE GOVERNOR, THE TEMPORARY PRESI-
DENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY AND THE MINORITY LEADERS
OF THE SENATE AND ASSEMBLY ON OR  BEFORE  JANUARY  FIRST,  TWO  THOUSAND
NINETEEN.
  S  3. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) JOB CREATION TAX CREDIT.  (1) AS USED IN  THIS  SUBSECTION,  THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "FULL-TIME  EMPLOYEE"  MEANS  AN  INDIVIDUAL  WHO IS EMPLOYED FOR
CONSIDERATION FOR AT LEAST THIRTY-FIVE HOURS A WEEK, OR WHO RENDERS  ANY
OTHER  STANDARD  OF SERVICE GENERALLY ACCEPTED BY CUSTOM OR SPECIFIED BY
CONTRACT AS FULL-TIME EMPLOYMENT.
  (B) "NEW EMPLOYEE" MEANS A FULL-TIME  EMPLOYEE  FIRST  EMPLOYED  BY  A
TAXPAYER IN THE PROJECT THAT IS THE SUBJECT OF THE TAX CREDIT AUTHORIZED
UNDER  THIS  SUBSECTION  IN THE TAXABLE YEAR IN WHICH THE TAXPAYER SEEKS
THE CREDIT. "NEW EMPLOYEE" ALSO  MAY  INCLUDE  AN  EMPLOYEE  REHIRED  OR
CALLED  BACK  FROM LAY-OFF TO WORK IN A NEW FACILITY OR ON A NEW PRODUCT
OR SERVICE ESTABLISHED OR PRODUCED BY THE TAXPAYER  DURING  THE  TAXABLE
YEAR IN WHICH THE CREDIT IS SOUGHT. "NEW EMPLOYEE" SHALL NOT INCLUDE ANY
EMPLOYEE  OF THE TAXPAYER WHO WAS PREVIOUSLY EMPLOYED IN THIS STATE BY A
RELATED MEMBER OF THE TAXPAYER AND WHOSE EMPLOYMENT WAS SHIFTED  TO  THE
TAXPAYER DURING THE TAXABLE YEAR IN WHICH THE CREDIT IS SOUGHT. IN ADDI-
TION,  "NEW  EMPLOYEE" SHALL NOT INCLUDE A CHILD, GRANDCHILD, PARENT, OR
SPOUSE, OTHER THAN A SPOUSE WHO IS LEGALLY SEPARATED FROM  THE  INDIVID-

S. 1237--A                          4

UAL,  OR ANY INDIVIDUAL WHO IS AN EMPLOYEE OF THE TAXPAYER AND WHO HAS A
DIRECT OR INDIRECT OWNERSHIP INTEREST OF AT LEAST FIVE  PERCENT  IN  THE
PROFITS,  CAPITAL, OR VALUE OF THE TAXPAYER. OWNERSHIP INTEREST SHALL BE
DETERMINED IN ACCORDANCE WITH SECTION FIFTEEN HUNDRED SIXTY-THREE OF THE
INTERNAL REVENUE CODE AND REGULATIONS PRESCRIBED THEREUNDER.
  (C)  "NEW  INCOME  TAX  REVENUE" MEANS THE TOTAL AMOUNT WITHHELD UNDER
THIS CHAPTER BY THE TAXPAYER DURING THE TAXABLE YEAR  FROM  THE  COMPEN-
SATION OF NEW EMPLOYEES FOR THE TAX LEVIES UNDER THIS CHAPTER.
  (D) "RELATED MEMBER" HAS THE SAME MEANING AS PROVIDED IN THIS CHAPTER.
  (2) THE JOB CREATION TAX CREDIT AUTHORIZED UNDER THIS SUBSECTION SHALL
BE  FOR  THE  PURPOSE  OF  FOSTERING JOB CREATION IN THIS STATE.  SUCH A
GRANT SHALL TAKE THE FORM OF A REFUNDABLE CREDIT ALLOWED AGAINST THE TAX
IMPOSED UNDER THIS CHAPTER. THE CREDIT SHALL BE CLAIMED AFTER THE ALLOW-
ANCE OF ALL OTHER CREDITS PROVIDED BY THIS CHAPTER. THE  AMOUNT  OF  THE
CREDIT  SHALL  EQUAL  THE  NEW  INCOME  TAX REVENUE FOR THE TAXABLE YEAR
MULTIPLIED BY FIFTY PERCENT.
  (3) IN ORDER TO QUALIFY FOR THE CREDIT THE TAXPAYER MUST SUBMIT TO THE
DEPARTMENT OF ECONOMIC DEVELOPMENT IN THE TAXABLE YEAR FOR WHICH  CREDIT
IS  SOUGHT  A  FORM  PROVIDED  BY  SUCH DEPARTMENT IN WHICH THE TAXPAYER
STATES THE FOLLOWING:
  (A) THE TAXPAYER'S PROJECT WILL CREATE NEW JOBS IN THIS STATE;
  (B) THE TAXPAYER'S PROJECT IS ECONOMICALLY SOUND AND WILL BENEFIT  THE
PEOPLE  OF  THIS  STATE  BY  INCREASING OPPORTUNITIES FOR EMPLOYMENT AND
STRENGTHENING THE ECONOMY OF THIS STATE;
  (C) RECEIVING THE TAX CREDIT IS A MAJOR FACTOR IN THE TAXPAYER'S DECI-
SION TO GO FORWARD WITH THE PROJECT;
  (D) A DETAILED DESCRIPTION OF THE PROJECT THAT IS THE SUBJECT  OF  THE
AGREEMENT;
  (E)  THE  TERM OF THE TAX CREDIT WHICH SHALL NOT EXCEED TEN YEARS, AND
THE FIRST TAXABLE YEAR FOR WHICH THE CREDIT MAY BE CLAIMED;
  (F) THAT  THE  TAXPAYER  SHALL  MAINTAIN  OPERATIONS  AT  THE  PROJECT
LOCATION  FOR  AT LEAST TWICE THE NUMBER OF YEARS AS THE TERM OF THE TAX
CREDIT;
  (G) THAT FIFTY PERCENT OF THE NEW INCOME TAX REVENUE WILL  BE  ALLOWED
AS THE AMOUNT OF THE CREDIT FOR EACH TAXABLE YEAR;
  (H)  A  SPECIFIC  METHOD  FOR  DETERMINING  HOW MANY NEW EMPLOYEES ARE
EMPLOYED DURING A TAXABLE YEAR;
  (I) THAT THE TAXPAYER ANNUALLY SHALL REPORT  TO  THE  COMMISSIONER  OF
ECONOMIC  DEVELOPMENT  THE  NUMBER  OF NEW EMPLOYEES, THE NEW INCOME TAX
REVENUE WITHHELD IN CONNECTION WITH THE  NEW  EMPLOYEES  AND  ANY  OTHER
INFORMATION  THE  COMMISSIONER  OF ECONOMIC DEVELOPMENT NEEDS TO PERFORM
HIS OR HER DUTIES UNDER THIS SUBSECTION; AND
  (J) THAT THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL ANNUALLY VERI-
FY THE AMOUNTS REPORTED PURSUANT TO SUBPARAGRAPH (I) OF THIS  PARAGRAPH,
AND  AFTER  DOING  SO  SHALL ISSUE A CERTIFICATE TO THE TAXPAYER STATING
THAT THE AMOUNTS HAVE BEEN VERIFIED.
  (4) A TAXPAYER CLAIMING A CREDIT UNDER THIS SUBSECTION SHALL SUBMIT TO
THE COMMISSIONER A COPY OF THE COMMISSIONER  OF  ECONOMIC  DEVELOPMENT'S
CERTIFICATE OF VERIFICATION AS PROVIDED IN SUBPARAGRAPH (I) OF PARAGRAPH
THREE OF THIS SUBSECTION FOR THE TAXABLE YEAR.
  (5)  THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AFTER CONSULTATION WITH
THE COMMISSIONER SHALL ADOPT SUCH RULES AND REGULATIONS AS ARE NECESSARY
TO IMPLEMENT THIS SUBSECTION.
  (6) FOR THE PURPOSES OF THIS SUBSECTION A TAXPAYER MAY INCLUDE A PART-
NERSHIP, A CORPORATION THAT HAS MADE AN ELECTION UNDER SUBCHAPTER  S  OF
CHAPTER  ONE  OF  SUBTITLE  A OF THE INTERNAL REVENUE CODE, OR ANY OTHER

S. 1237--A                          5

BUSINESS ENTITY THROUGH WHICH INCOME FLOWS AS A  DISTRIBUTIVE  SHARE  TO
ITS  OWNERS.  A  CREDIT RECEIVED UNDER THIS SUBSECTION BY A PARTNERSHIP,
S-CORPORATION, OR OTHER SUCH BUSINESS ENTITY SHALL BE APPORTIONED  AMONG
THE  PERSONS TO WHOM THE INCOME OR PROFIT OF THE PARTNERSHIP, S-CORPORA-
TION, OR OTHER ENTITY IS DISTRIBUTED, IN THE SAME PROPORTIONS  AS  THOSE
IN WHICH THE INCOME OR PROFIT IS DISTRIBUTED.
  (7)  IF  THE  COMMISSIONER  OF  ECONOMIC DEVELOPMENT DETERMINES THAT A
TAXPAYER WHO HAS RECEIVED A CREDIT UNDER THIS SUBSECTION IS NOT  COMPLY-
ING  WITH THE REQUIREMENT OF SUBPARAGRAPH (I) OF PARAGRAPH THREE OF THIS
SUBSECTION, HE OR SHE SHALL NOTIFY THE COMMISSIONER  OF  THE  NONCOMPLI-
ANCE.    AFTER RECEIVING SUCH A NOTICE, AND AFTER GIVING THE TAXPAYER AN
OPPORTUNITY TO EXPLAIN THE NONCOMPLIANCE, THE COMMISSIONER MAY  MAKE  AN
ASSESSMENT  AGAINST  THE  TAXPAYER  UNDER THIS CHAPTER FOR AN AMOUNT NOT
EXCEEDING  THE  SUM  OF  ANY  PREVIOUSLY  ALLOWED  CREDITS  UNDER   THIS
SUBSECTION.
  (8)  ON  OR  BEFORE  THE  THIRTY-FIRST  DAY OF MARCH OF EACH YEAR, THE
COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL SUBMIT A REPORT TO THE GOVER-
NOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE  ASSEMBLY
AND  THE  MINORITY  LEADERS OF THE SENATE AND ASSEMBLY ON THE TAX CREDIT
PROGRAM PROVIDED FOR IN THIS SUBSECTION. THE REPORT SHALL INCLUDE INFOR-
MATION ON THE NUMBER OF TAXPAYERS RECEIVING TAX CREDITS PURSUANT TO THIS
SUBSECTION DURING THE PRECEDING CALENDAR  YEAR,  A  DESCRIPTION  OF  THE
PROJECTS THAT ARE THE SUBJECT OF THE CREDIT, AND AN UPDATE ON THE STATUS
OF PROJECTS FOR WHICH CREDITS WERE ALLOWED DURING THE PRECEDING CALENDAR
YEAR.
  DURING  THE  FIRST YEAR OF THE TAX CREDIT PROGRAM, THE COMMISSIONER OF
ECONOMIC DEVELOPMENT IN CONJUNCTION WITH THE DIRECTOR  OF  BUDGET  SHALL
CONDUCT  AN  EVALUATION  OF  SUCH  PROGRAM. THE EVALUATION SHALL INCLUDE
ASSESSMENTS OF THE EFFECTIVENESS OF THE PROGRAM IN CREATING NEW JOBS  IN
THIS  STATE  AND  OF  THE REVENUE IMPACT OF THE PROGRAM. SUCH REPORT MAY
ALSO INCLUDE A REVIEW OF THE PRACTICES AND EXPERIENCES OF  OTHER  STATES
WITH  SIMILAR  PROGRAMS.  THE  DEPARTMENT  OF ECONOMIC DEVELOPMENT SHALL
SUBMIT A REPORT ON THE EVALUATION TO THE GOVERNOR, THE TEMPORARY  PRESI-
DENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY AND THE MINORITY LEADERS
OF  THE  SENATE  AND  ASSEMBLY  ON OR BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-ONE.
  S 4. This act shall take effect immediately and shall apply to taxable
years commencing on and after April 1, 2016.

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Senate Bill S1237

Sponsored By

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Bill Amendments

2015-S1237 - Details

2015-S1237 - Summary

2015-S1237 - Sponsor Memo

2015-S1237 - Bill Text download pdf

2015-S1237A (ACTIVE) - Details

2015-S1237A (ACTIVE) - Summary

2015-S1237A (ACTIVE) - Sponsor Memo

2015-S1237A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S1237

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Sponsored By

Kevin S. Parker

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Bill Amendments

2015-S1237 - Details

2015-S1237 - Summary

2015-S1237 - Sponsor Memo

2015-S1237 - Bill Text download pdf

2015-S1237A (ACTIVE) - Details

2015-S1237A (ACTIVE) - Summary

2015-S1237A (ACTIVE) - Sponsor Memo

2015-S1237A (ACTIVE) - Bill Text download pdf

Comments