S T A T E O F N E W Y O R K
________________________________________________________________________
8049--A
2017-2018 Regular Sessions
I N A S S E M B L Y
May 25, 2017
___________
Introduced by M. of A. FAHY -- read once and referred to the Committee
on Ways and Means -- 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 job creation
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 44 to read
as follows:
§ 44. JOB CREATION TAX CREDIT. (A) ALLOWANCE OF CREDIT. FOR TAXABLE
YEARS BEGINNING ON OR AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN, A
TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP-
TER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS
SECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR EACH NET NEW JOB
CREATED, FOR EACH QUALIFIED EMPLOYEE WITHIN THE STATE. THE TAXPAYER MAY
CLAIM THE CREDIT IN THE YEAR IN WHICH THE QUALIFIED EMPLOYEE COMPLETES
SIX MONTHS OF EMPLOYMENT. A TAXPAYER MAY ONLY CLAIM THE CREDIT ONCE FOR
EACH QUALIFIED EMPLOYEE AND MAY ONLY CLAIM A TAX CREDIT FOR A MAXIMUM OF
THIRTY QUALIFIED EMPLOYEES IN EACH TAXABLE YEAR. IF THE TAXPAYER CLAIMS
THE CREDIT ALLOWED UNDER THIS SECTION, THE TAXPAYER MAY NOT USE THE
HIRING OF A QUALIFIED EMPLOYEE THAT IS THE BASIS FOR THIS CREDIT IN THE
BASIS OF ANY OTHER CREDIT ALLOWED UNDER THIS ARTICLE.
(B) QUALIFIED EMPLOYEE. A QUALIFIED EMPLOYEE IS AN INDIVIDUAL WHO
COMMENCES EMPLOYMENT BY THE QUALIFIED TAXPAYER ON OR AFTER JANUARY
FIRST, TWO THOUSAND EIGHTEEN.
(C) NET NEW JOB. "NET NEW JOB" MEANS JOBS CREATED IN THIS STATE THAT
(1) ARE NEW TO THE STATE, (2) HAVE NOT BEEN TRANSFERRED FROM EMPLOYMENT
WITH ANOTHER BUSINESS THAT IS A RELATED PERSON, (3) ARE EITHER FULL-TIME
WAGE-PAYING JOBS OR EQUIVALENT TO A FULL-TIME WAGE-PAYING JOB REQUIRING
AT LEAST THIRTY-FIVE HOURS PER WEEK, AND (4) ARE FILLED FOR MORE THAN
SIX MONTHS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06532-05-7
A. 8049--A 2
(D) EMPLOYER PROHIBITION. AN EMPLOYER SHALL NOT DISCHARGE AN EMPLOYEE
AND HIRE A QUALIFYING EMPLOYEE SOLELY FOR THE PURPOSE OF QUALIFYING FOR
THIS CREDIT.
(E) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE SIX PERCENT OF
THE TOTAL AMOUNT OF WAGES PAID TO THE QUALIFIED EMPLOYEE DURING THE
EMPLOYEE'S FIRST SIX MONTHS OF EMPLOYMENT. PROVIDED, HOWEVER, THAT, IF
THE QUALIFIED EMPLOYEE WAS RECEIVING UNEMPLOYMENT INSURANCE BENEFITS AT
THE TIME OF HIRE FOR A MINIMUM OF THIRTEEN WEEKS OR IS EMPLOYED DIRECTLY
IN THE MANUFACTURING PROCESS IN AN ELIGIBLE INDUSTRY, THE AMOUNT OF THE
CREDIT SHALL BE TWELVE PERCENT OF THE TOTAL AMOUNT OF WAGES PAID TO THE
QUALIFIED EMPLOYEE DURING THE EMPLOYEE'S FIRST SIX MONTHS OF EMPLOYMENT.
THE CREDIT ALLOWED PURSUANT TO THIS SUBSECTION SHALL NOT EXCEED IN ANY
TAXABLE YEAR, SEVEN HUNDRED FIFTY DOLLARS FOR ANY QUALIFIED EMPLOYEE AND
ONE THOUSAND FIVE HUNDRED DOLLARS FOR ANY QUALIFIED EMPLOYEE WHO WAS
RECEIVING UNEMPLOYMENT INSURANCE BENEFITS AT THE TIME OF HIRE FOR A
MINIMUM OF THIRTEEN WEEKS OR WHO IS EMPLOYED DIRECTLY IN THE MANUFACTUR-
ING PROCESS IN AN ELIGIBLE INDUSTRY.
(F) ELIGIBLE INDUSTRY. AN ELIGIBLE INDUSTRY IS A BUSINESS PRINCIPALLY
ENGAGED IN THE PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING, ASSEM-
BLING, REFINING, MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE,
FLORICULTURE, VITICULTURE OR COMMERCIAL FISHING.
§ 2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 53 to read as follows:
53. JOB CREATION TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WILL
BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-FOUR 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 PARAGRAPH (D) OF SUBDIVI-
SION ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. 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.
§ 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) A TAXPAYER WILL BE ALLOWED A CRED-
IT, TO THE EXTENT ALLOWED UNDER SECTION FORTY-FOUR OF THIS CHAPTER,
AGAINST THE TAX IMPOSED BY THIS ARTICLE.
(2) 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.
§ 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xliv) to read as
follows:
(XLIV) JOB CREATION TAX CREDIT AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (CCC) SUBDIVISION FIFTY-THREE OF SECTION
TWO HUNDRED TEN-B
§ 5. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2018.