S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    985
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 14, 2019
                                ___________
 
 Introduced  by  M. of A. KOLB, BARCLAY -- Multi-Sponsored by -- M. of A.
   CROUCH, GIGLIO, WALSH -- read once and referred to  the  Committee  on
   Ways and Means
 
 AN  ACT  to  amend the tax law, in relation to establishing a credit for
   on-the-job training
 
   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 53 to read as follows:
   53. CREDIT FOR ON-THE-JOB TRAINING. (A) GENERAL. A TAXPAYER,  WHO  HAS
 ONE HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CREDIT, TO BE COMPUTED
 AS  HEREINAFTER  PROVIDED,  AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR
 PROVIDING ON-THE-JOB TRAINING TO AN EMPLOYEE.
   (B) ON-THE-JOB TRAINING.   ON-THE-JOB  TRAINING  SHALL  MEAN  TRAINING
 WHICH  IS SPECIFIED IN AN AGREEMENT BETWEEN THE GRANTEE AND THE EMPLOYER
 AND INCLUDES BOTH WORK EXPERIENCE AND TRAINING, FORMALIZED IN AN OUTLINE
 DEFINING EACH TRAINING COMPONENT AND OUTCOMES OF THE TRAINING PROCESS.
   (C) ON-THE-JOB TRAINING EXPENDITURES. ON-THE-JOB TRAINING EXPENDITURES
 SHALL INCLUDE EXPENDITURES FOR THE  PURCHASE  OF  EITHER  COMMERCIAL  OR
 CUSTOMIZED INSTRUCTIONAL MATERIALS INCLUDING SOFTWARE, TEXTS, MANUALS OR
 EQUIPMENT  THAT  CAN BE USED TO SIMULATE JOB TASKS; PAYMENTS TO CONSULT-
 ANTS, TRAINERS, OR INSTRUCTORS WHO ARE NOT EMPLOYEES OF  THE  FIRM;  AND
 COSTS  ASSOCIATED WITH THE USE, RENTAL, OR LEASE OF A CLASSROOM OR OTHER
 DEDICATED SPACE FOR THE TRAINING.
   (D) AMOUNT OF CREDIT. A CREDIT SHALL BE  ALLOWED  FOR  THE  AMOUNT  OF
 ON-THE-JOB  TRAINING EXPENDITURES INCURRED BY AN EMPLOYER. THE AMOUNT OF
 CREDIT SHALL NOT EXCEED THREE HUNDRED DOLLARS PER EMPLOYEE FOR WHOM SUCH
 TRAINING HAS BEEN PROVIDED DURING THE TAXABLE YEAR IN WHICH SUCH EXPEND-
 ITURES WERE MADE.
   (E) CARRYOVER. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXA-
 BLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS  THAN  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04105-01-9

 A. 985                              2
 
 AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D) OF SUBDIVISION ONE OF SECTION TWO
 HUNDRED TEN OF THIS ARTICLE.  PROVIDED, HOWEVER, IF THE AMOUNT OF CREDIT
 ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
 SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
 MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE  DEDUCTED
 FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   §  2. 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) CREDIT FOR ON-THE-JOB         COSTS UNDER SUBDIVISION
 TRAINING UNDER SUBSECTION (JJJ)      FIFTY-THREE OF
                                      SECTION TWO HUNDRED TEN-B
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (jjj) to read as follows:
   (JJJ) CREDIT FOR ON-THE-JOB TRAINING. (1) GENERAL.   A  TAXPAYER,  WHO
 HAS  ONE  HUNDRED  EMPLOYEES  OR  LESS, SHALL BE ALLOWED A CREDIT, TO BE
 COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED BY THIS  ARTI-
 CLE, FOR PROVIDING ON-THE-JOB TRAINING TO AN EMPLOYEE.
   (2)  ON-THE-JOB  TRAINING.    ON-THE-JOB  TRAINING SHALL MEAN TRAINING
 WHICH IS SPECIFIED IN AN AGREEMENT BETWEEN THE GRANTEE AND THE  EMPLOYER
 AND INCLUDES BOTH WORK EXPERIENCE AND TRAINING, FORMALIZED IN AN OUTLINE
 DEFINING EACH TRAINING COMPONENT AND OUTCOMES OF THE TRAINING PROCESS.
   (3) ON-THE-JOB TRAINING EXPENDITURES. ON-THE-JOB TRAINING EXPENDITURES
 SHALL  INCLUDE  EXPENDITURES  FOR  THE  PURCHASE OF EITHER COMMERCIAL OR
 CUSTOMIZED INSTRUCTIONAL MATERIALS INCLUDING SOFTWARE, TEXTS, MANUALS OR
 EQUIPMENT THAT CAN BE USED TO SIMULATE JOB TASKS; PAYMENTS  TO  CONSULT-
 ANTS,  TRAINERS,  OR  INSTRUCTORS WHO ARE NOT EMPLOYEES OF THE FIRM; AND
 COSTS ASSOCIATED WITH THE USE, RENTAL, OR LEASE OF A CLASSROOM OR  OTHER
 DEDICATED SPACE FOR THE TRAINING.
   (4)  AMOUNT  OF  CREDIT.  A  CREDIT SHALL BE ALLOWED FOR THE AMOUNT OF
 ON-THE-JOB TRAINING EXPENDITURES INCURRED BY AN EMPLOYER. THE AMOUNT  OF
 CREDIT SHALL NOT EXCEED THREE HUNDRED DOLLARS PER EMPLOYEE FOR WHOM SUCH
 TRAINING HAS BEEN PROVIDED DURING THE TAXABLE YEAR IN WHICH SUCH EXPEND-
 ITURES WERE MADE.
   (5) CARRYOVER. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION
 FOR  ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH TAX YEAR,
 THE EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS,  AND  MAY
 BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   § 4. This act shall take effect immediately and shall apply to taxable
 years  beginning  on  and after the first of January next succeeding the
 date on which it shall have become a law.