NY State Senate Bill 2019-S7296

Archive: Last Bill Status - In Senate Committee Budget And Revenue 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 16, 2020	referred to budget and revenue

2019-S7296 (ACTIVE) - Details

See Assembly Version of this Bill:: A8996
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L; add §25-d, Lab L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S3458, A3960
2023-2024: S1555, A4733

2019-S7296 (ACTIVE) - Summary

Establishes a small business tax credit for the employment of disabled persons.

2019-S7296 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7296

SPONSOR: ADDABBO
 
TITLE OF BILL:

An act to amend the tax law and the labor law, in relation to establish-
ing a small business tax credit for the employment of disabled persons;
and providing for the repeal of such provisions upon expiration thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

To stimulate employment of disabled persons and retain their services.

 
SUMMARY OF PROVISIONS:

Section 1: A new section, subdivision 54, is added to section 210-B of
the tax law to provide a business tax credit for an employer who employs
a disabled person for the duration of six months and who works a minimum
of thirty-five hours per a week. The amount of credit per hired disabled
person shall range between five thousand to twenty-five thousand
dollars.

Section 2: The adoption of a new clause (xiv) in section 606 of the tax
law, specifying preceded amendment.

Section 3: A new subsection (kkk) is added to section 606 of the tax
law, detailing the components of the business tax credit for the employ-
ment of disabled persons in a company of one hundred employees or less.
It establishes a $5 million cap on the credit each year. The bill also
specifies that a taxpayer shall not be allowed to claim this credit if
the calculation of this credit has been claimed for another tax credit.

Section 4: A new section, 25-d is added to the labor law to establish
that the Commissioner is authorized to establish and administer the
small business tax credit for disabled persons and to provide the tax
incentives to the small business employers. The commissioner establishes
the application and the guidelines for employers to participate in the
program.

Section 5: The effective date.

 
JUSTIFICATION:

People with disabilities often face significant challenges preventing
them from entering the workforce, including the false assumption that
they will not be able to complete a job as well as another person.
According to a 2015 Bureau of Labor Statistics study, the unemployment
rate of people with a disability was 10.7 percent, compared to five
percent for those without a disability. Further, a 2015 disability
status report published by Comell University determined 22 percent of
people with disabilities are employed full-time, compared to 58.6
percent of people without.

For people living with a disability the opportunity to earn a living,
support their families, and contribute to society is an important part
of their lives as it is with anyone. This legislation would create a tax
credit for small businesses that employ people with disabilities in
order to incentivise the employment of people who are too often over-
looked. The credit would be available for companies with fewer than 100
employees that employee a disabled person for at least 12 months for a
minimum of 35 hours a week.

 
PRIOR LEGISLATIVE HISTORY:

2018: A. 1369-A/S.3688-A - Veto memo 269;
2019: A. 7475/S.5545 - Veto memo 141

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on or after January 1, 2021 and shall expire and be deemed
repealed December 31, 2026.

2019-S7296 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7296
 
                             I N  S E N A T E
 
                             January 16, 2020
                                ___________
 
 Introduced  by  Sen. ADDABBO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law and the labor law, in relation to establish-
   ing a small  business  tax  credit  for  the  employment  of  disabled
   persons;  and providing for the repeal of such provisions upon expira-
   tion thereof

   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 55 to read as follows:
   55. SMALL BUSINESS  TAX  CREDIT;  DISABLED  PERSONS.  (A)  GENERAL.  A
 TAXPAYER WHO HAS ONE HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CRED-
 IT,  TO  BE  COMPUTED  AS  PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX
 IMPOSED BY THIS ARTICLE FOR EACH DISABLED PERSON HIRED DURING A  TAXABLE
 YEAR,  PROVIDED  THAT  SUCH  DISABLED PERSON IS EMPLOYED FOR THIRTY-FIVE
 HOURS OR MORE PER WEEK, REMAINS IN THE EMPLOY OF SUCH TAXPAYER  FOR  SIX
 MONTHS  OR  MORE  AND THE EMPLOYER SUBMITS VERIFICATION THAT THE CLAIMED
 EMPLOYEES MEET THE STATUTORY DEFINITION OF "DISABLED PERSON" PURSUANT TO
 PARAGRAPH (D) OF THIS SUBDIVISION.
   (B) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL  EQUAL
 FIVE  THOUSAND  DOLLARS  PER  HIRED DISABLED PERSON BUT SHALL NOT EXCEED
 TWENTY-FIVE THOUSAND DOLLARS.
   (C) CARRYOVERS.  THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION  FOR  ANY
 TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
 AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D) OF SUBDIVISION ONE OF SECTION TWO
 HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT  ALLOWABLE
 UNDER  THIS  SUBDIVISION  FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH
 AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE  FIXED  DOLLAR
 MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
 MAY  BE  CARRIED  OVER  TO THE FOLLOWING THREE YEARS AND MAY BE DEDUCTED
 FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   (D) DEFINITIONS. AS USED  IN  THIS  SUBDIVISION,  THE  TERM  "DISABLED
 PERSON"  SHALL MEAN A RESIDENT OF THE STATE WHO HAS ANY PHYSICAL, MENTAL
 OR MEDICAL IMPAIRMENT RESULTING FROM ANATOMICAL, PHYSIOLOGICAL,  GENETIC
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD10946-04-0

 S. 7296                             2
 
 OR NEUROLOGICAL CONDITIONS WHICH PREVENTS THE EXERCISE OF A NORMAL BODI-
 LY FUNCTION OR IS DEMONSTRABLE BY MEDICALLY ACCEPTED CLINICAL OR LABORA-
 TORY DIAGNOSTIC TECHNIQUES.
   (E)  AGGREGATE  AMOUNT.  THE  AGGREGATE  AMOUNT OF TAX CREDITS ALLOWED
 PURSUANT TO THE AUTHORITY OF THIS SUBDIVISION AND  SUBSECTION  (KKK)  OF
 SECTION  SIX  HUNDRED  SIX OF THIS CHAPTER SHALL BE FIVE MILLION DOLLARS
 EACH YEAR.  SUCH AGGREGATE AMOUNTS OF CREDITS SHALL BE ALLOCATED BY  THE
 COMMISSIONER.    IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN
 ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX CREDITS  ALLOWED
 FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS SHALL BE TREATED AS HAVING
 BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT YEAR.
   (F)  CLAIM  OF  CREDIT.  A TAXPAYER SHALL NOT BE ALLOWED TO CLAIM THIS
 CREDIT TO THE EXTENT THE BASIS OF THE CALCULATION  OF  THIS  CREDIT  HAS
 BEEN CLAIMED FOR ANOTHER TAX CREDIT UNDER THIS CHAPTER.
   §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xlvi)  to  read  as
 follows:
 (XLVI) SMALL BUSINESS TAX CREDIT;    AMOUNT OF CREDIT UNDER
 DISABLED PERSONS UNDER               SUBDIVISION FIFTY-FIVE
 SUBSECTION (KKK)                     OF SECTION TWO HUNDRED
                                      TEN-B
   § 3.  Section 606 of the tax law is amended by adding a new subsection
 (kkk) to read as follows:
   (KKK)  SMALL  BUSINESS  TAX  CREDIT;  DISABLED PERSONS. (1) GENERAL. A
 TAXPAYER WHO HAS ONE HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CRED-
 IT, TO BE COMPUTED AS PROVIDED  IN  THIS  SUBSECTION,  AGAINST  THE  TAX
 IMPOSED  BY THIS ARTICLE FOR EACH DISABLED PERSON HIRED DURING A TAXABLE
 YEAR, PROVIDED THAT SUCH DISABLED PERSON  IS  EMPLOYED  FOR  THIRTY-FIVE
 HOURS  OR  MORE PER WEEK, REMAINS IN THE EMPLOY OF SUCH TAXPAYER FOR SIX
 MONTHS OR MORE AND THE EMPLOYER SUBMITS VERIFICATION  THAT  THE  CLAIMED
 EMPLOYEES  HAVE MET THE STATUTORY DEFINITION OF "DISABLED PERSON" PURSU-
 ANT TO PARAGRAPH FOUR OF THIS SUBSECTION.
   (2) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL  EQUAL
 FIVE  THOUSAND  DOLLARS  PER  HIRED DISABLED PERSON BUT SHALL NOT EXCEED
 TWENTY-FIVE THOUSAND DOLLARS.
   (3) CARRYOVERS.  THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION  FOR  ANY
 TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
 AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D) OF SUBDIVISION ONE OF SECTION TWO
 HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT  ALLOWABLE
 UNDER  THIS  SUBDIVISION  FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH
 AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE  FIXED  DOLLAR
 MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
 MAY  BE  CARRIED  OVER  TO THE FOLLOWING THREE YEARS AND MAY BE DEDUCTED
 FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   (4) DEFINITIONS. AS  USED  IN  THIS  SUBSECTION,  THE  TERM  "DISABLED
 PERSON"  SHALL MEAN A RESIDENT OF THE STATE WHO HAS ANY PHYSICAL, MENTAL
 OR MEDICAL IMPAIRMENT RESULTING FROM ANATOMICAL, PHYSIOLOGICAL,  GENETIC
 OR NEUROLOGICAL CONDITIONS WHICH PREVENTS THE EXERCISE OF A NORMAL BODI-
 LY FUNCTION OR IS DEMONSTRABLE BY MEDICALLY ACCEPTED CLINICAL OR LABORA-
 TORY DIAGNOSTIC TECHNIQUES.
   (5)  AGGREGATE  AMOUNT.  THE  AGGREGATE  AMOUNT OF TAX CREDITS ALLOWED
 PURSUANT TO THE AUTHORITY OF THIS SUBSECTION AND SUBDIVISION  FIFTY-FIVE
 OF  SECTION  TWO  HUNDRED  TEN-B  OF  THIS CHAPTER SHALL BE FIVE MILLION
 DOLLARS EACH YEAR. SUCH AGGREGATE AMOUNTS OF CREDITS SHALL BE  ALLOCATED
 BY  THE  COMMISSIONER.  IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED
 FOR IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF  TAX  CREDITS

 S. 7296                             3
 
 ALLOWED  FOR  SUCH YEAR UNDER THIS SECTION, SUCH EXCESS SHALL BE TREATED
 AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT YEAR.
   (6)  CLAIM  OF  CREDIT.  A TAXPAYER SHALL NOT BE ALLOWED TO CLAIM THIS
 CREDIT TO THE EXTENT THE BASIS OF THE CALCULATION  OF  THIS  CREDIT  HAS
 BEEN CLAIMED FOR ANOTHER TAX CREDIT UNDER THIS CHAPTER.
   §  4. The labor law is amended by adding a new section 25-d to read as
 follows:
   § 25-D. POWER TO ADMINISTER THE SMALL BUSINESS TAX CREDIT FOR DISABLED
 PERSONS TAX CREDIT PROGRAM. (A) THE COMMISSIONER IS AUTHORIZED TO ESTAB-
 LISH AND ADMINISTER THE SMALL BUSINESS TAX CREDIT FOR  DISABLED  PERSONS
 TO  PROVIDE  TAX  INCENTIVES  TO  SMALL BUSINESS EMPLOYERS FOR EMPLOYING
 INDIVIDUALS WITH DISABILITIES. THE COMMISSIONER IS AUTHORIZED  TO  ALLO-
 CATE UP TO FIVE MILLION DOLLARS OF TAX CREDITS ANNUALLY.
   (B)  DEFINITIONS.  (1) THE TERM "QUALIFIED EMPLOYER" MEANS AN EMPLOYER
 THAT HAS BEEN CERTIFIED BY THE COMMISSIONER TO PARTICIPATE IN THE  SMALL
 BUSINESS  TAX  CREDIT  FOR  DISABLED PERSONS TAX CREDIT PROGRAM AND THAT
 EMPLOYS ONE OR MORE QUALIFIED EMPLOYEES.
   (2) THE TERM "QUALIFIED EMPLOYEE" MEANS AN INDIVIDUAL:
   (I) WHO HAS ANY PHYSICAL, MENTAL OR MEDICAL IMPAIRMENT RESULTING  FROM
 ANATOMICAL,  PHYSIOLOGICAL,  GENETIC  OR  NEUROLOGICAL  CONDITIONS WHICH
 PREVENTS THE EXERCISE OF A NORMAL BODILY FUNCTION OR IS DEMONSTRABLE  BY
 MEDICALLY ACCEPTED CLINICAL OR LABORATORY DIAGNOSTIC TECHNIQUES;
   (II) WHO HAS WORKED FOR THE QUALIFIED EMPLOYER IN A FULL-TIME OR PART-
 TIME  POSITION THAT PAYS WAGES THAT ARE EQUIVALENT TO THE WAGES PAID FOR
 SIMILAR JOBS, WITH APPROPRIATE ADJUSTMENTS FOR EXPERIENCE AND  TRAINING,
 AND  FOR  WHICH  NO  OTHER  EMPLOYEE  HAS  BEEN TERMINATED, OR WHERE THE
 EMPLOYER HAS NOT OTHERWISE REDUCED ITS WORKFORCE BY  INVOLUNTARY  TERMI-
 NATIONS  WITH  THE  INTENTION  OF  FILLING THE VACANCY BY CREATING A NEW
 HIRE;
   (III) WHO HAS NOT WORKED  FOR  AN  ENTITY  RELATED  TO  THE  QUALIFIED
 EMPLOYER IN THE PAST TWENTY-FOUR MONTHS; AND
   (IV) IS EMPLOYED IN NEW YORK AT A LOCATION IN NEW YORK STATE.
   (C)  A  QUALIFIED  EMPLOYER SHALL BE ENTITLED TO A TAX CREDIT. THE TAX
 CREDITS SHALL BE CLAIMED BY  THE  QUALIFIED  EMPLOYER  AS  SPECIFIED  IN
 SUBDIVISION FIFTY-FIVE OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (KKK)
 OF SECTION SIX HUNDRED SIX OF THE TAX LAW.
   (D)  TO  PARTICIPATE  IN  THE  SMALL  BUSINESS TAX CREDIT FOR DISABLED
 PERSONS TAX CREDIT PROGRAM, AN EMPLOYER MUST SUBMIT AN APPLICATION (IN A
 FORM PRESCRIBED BY THE COMMISSIONER) TO THE  COMMISSIONER.  THE  COMMIS-
 SIONER  SHALL ESTABLISH GUIDELINES THAT SPECIFY REQUIREMENTS FOR EMPLOY-
 ERS TO PARTICIPATE IN THE  PROGRAM  INCLUDING  CRITERIA  FOR  CERTIFYING
 QUALIFIED  EMPLOYEES.  ANY  REGULATIONS THAT THE COMMISSIONER DETERMINES
 ARE NECESSARY MAY BE  ADOPTED  ON  AN  EMERGENCY  BASIS  NOTWITHSTANDING
 ANYTHING  TO THE CONTRARY IN SECTION TWO HUNDRED TWO OF THE STATE ADMIN-
 ISTRATIVE PROCEDURE ACT. SUCH REQUIREMENTS  MAY  INCLUDE  THE  TYPES  OF
 INDUSTRIES THAT THE EMPLOYERS ARE ENGAGED IN.
   (E)  IF, AFTER REVIEWING THE APPLICATION SUBMITTED BY AN EMPLOYER, THE
 COMMISSIONER DETERMINES THAT SUCH EMPLOYER IS ELIGIBLE TO PARTICIPATE IN
 THE SMALL BUSINESS TAX CREDIT FOR DISABLED PERSONS TAX  CREDIT  PROGRAM,
 THE  COMMISSIONER  SHALL ISSUE THE EMPLOYER A PRELIMINARY CERTIFICATE OF
 ELIGIBILITY THAT ESTABLISHES THE EMPLOYER AS A QUALIFIED  EMPLOYER.  THE
 CERTIFICATE  OF  ELIGIBILITY  SHALL  SPECIFY THE MAXIMUM AMOUNT OF SMALL
 BUSINESS TAX CREDIT FOR DISABLED  PERSONS  THAT  THE  EMPLOYER  WILL  BE
 ALLOWED  TO  CLAIM. AT THE END OF THE TAXABLE YEAR, A QUALIFIED EMPLOYER
 MUST OBTAIN A FINAL CERTIFICATE OF ELIGIBILITY FROM THE COMMISSIONER  TO
 FILE  WITH  A  RETURN  CLAIMING  THE  CREDIT. THE FINAL CERTIFICATE MUST

 S. 7296                             4
 
 CONTAIN THE CERTIFICATE'S TAXABLE YEAR TO WHICH THE CREDIT APPLIES,  THE
 MAXIMUM  AMOUNT OF THE CREDIT ALLOWED, THE QUALIFIED EMPLOYER'S NAME AND
 EMPLOYER IDENTIFICATION NUMBER, THE EMPLOYER'S  BUSINESS  ADDRESS  WHERE
 THE  CLAIMED  EMPLOYEES  WERE  EMPLOYED,  THE SOCIAL SECURITY NUMBERS OF
 CLAIMED EMPLOYEES AND THEIR HIRE  AND  TERMINATION  DATES,  VERIFICATION
 THAT  THE CLAIMED EMPLOYEES HAVE MET THE STATUTORY DEFINITION OF "QUALI-
 FIED EMPLOYEE", AND EACH EMPLOYEE'S TOTAL  HOURS  WORKED  EACH  QUARTER,
 HOURLY WAGE, AND FULL-TIME OR PART-TIME STATUS.
   § 5. This act shall take effect immediately and shall apply to taxable
 years  beginning  on  or  after  January 1, 2021 and shall expire and be
 deemed repealed December 31, 2026.

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Senate Bill S7296

Sponsored By

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

2019-S7296 (ACTIVE) - Details

2019-S7296 (ACTIVE) - Summary

2019-S7296 (ACTIVE) - Sponsor Memo

2019-S7296 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7296

Share this bill

Sponsored By

Joseph P. Addabbo Jr.

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

2019-S7296 (ACTIVE) - Details

2019-S7296 (ACTIVE) - Summary

2019-S7296 (ACTIVE) - Sponsor Memo

2019-S7296 (ACTIVE) - Bill Text download pdf

Comments