NY State Senate Bill 2021-S8463B

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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 27, 2022	print number 8463b
May 27, 2022	amend and recommit to investigations and government operations
Mar 07, 2022	print number 8463a
Mar 07, 2022	amend (t) and recommit to investigations and government operations
Mar 03, 2022	referred to investigations and government operations

Bill Amendments

Original

B (Active)

2021-S8463 - Details

See Assembly Version of this Bill:: A9171
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §48, amd §§210-B, 606 & 1511, Tax L
Versions Introduced in 2023-2024 Legislative Session:: S4833, A1991, A8905

2021-S8463 - Summary

Creates a work opportunity tax credit.

2021-S8463 - Sponsor Memo

                                 
BILL NUMBER: S8463

SPONSOR: KAPLAN
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a work opportu-
nity tax credit

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would establish in New York State law a Worker Opportunity Tax
Credit similar to the existing federal tax credit.

 
SUMMARY OF PROVISIONS:

Section one adds a new section 47 to the tax law establishing a Worker
Opportunity Tax Credit, details the additional sections of the tax law
affected, and specifies to whom the tax credit would apply.

Section two adds a new subdivision 58 to section 210-B of the tax law
detailing the allowance and application of the Worker Opportunity Tax
Credit therein.

Section three adds a new subdivision "bbb" to section 606 of the tax law
detailing the allowance and application of the Worker Opportunity Tax
Credit therein.

Section four adds a new subdivision "cc" to section 1511 of the tax law
detailing the allowance and application of the Worker Opportunity Tax
Credit therein.

Section five establishes the effective date.

 
JUSTIFICATION:

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available
to employers for hiring individuals from certain targeted groups that
have consistently faced significant barriers to employment. Data shows
that New York underutilizes the federal Worker Opportunity Tax Credit
incentive program. New York's ratio of WOTC-certified employees to popu-
lations is the lowest of the 18 states with the largest number of WOTC
certified employees.

The WOTC is available for wages paid to certain individuals who begin
work on or before December 31, 2025. The WOTC may be claimed by any
employer that hires and pays or incurs wages to certain individuals who
are certified by a designated local agency as being a member of one of
10 targeted groups. In general, the WOTC is equal to 40% of up to $6,000
of wages paid to, or incurred on behalf of, an individual who:

* is in their first year of employment;

* is certified as being a member of a targeted group; and

* performs at least 400 hours of services for that employer.

Thus, the maximum tax credit is generally $2,400. A 25% rate applies to
wages for individuals who perform fewer than 400 but at least 120 hours
of service for the employer.
The targeted groups include, Qualified IV-A Recipient, qualified Veter-
an, Ex-Felon, Designated Community Resident, Vocational Rehabilitation
Referral, Summer Youth Employee, SNAP recipient. SSI Recipient, Long
Term Family Assistance Recipient, Qualified Long-Term Unemployment
Recipient.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2022 and shall apply to wages paid to
individuals hired on an after such effective date.

2021-S8463 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8463
 
                             I N  S E N A T E
 
                               March 3, 2022
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- 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 establishing a work opportu-
   nity 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 47 to read
 as follows:
   § 47. WORK OPPORTUNITY TAX CREDIT. (A) GENERAL. A TAXPAYER SUBJECT  TO
 TAX  UNDER  ARTICLE  NINE-A, TWENTY-TWO, OR THIRTY-THREE OF THIS CHAPTER
 SHALL BE ALLOWED A CREDIT AGAINST TAX IN AN AMOUNT EQUAL TO ONE  HUNDRED
 PERCENT  OF  THE  CREDIT ALLOWED TO THE TAXPAYER UNDER SECTION 51 OF THE
 INTERNAL REVENUE CODE THAT IS ATTRIBUTABLE TO QUALIFIED WAGES PAID TO  A
 NEW  YORK  RESIDENT  WHO  IS A MEMBER OF A TARGETED GROUP AND FOR WHOM A
 CERTIFICATE TO THAT EFFECT HAS BEEN ISSUED BY THE DEPARTMENT OF LABOR.
   (B) DEFINITIONS. THE TERMS  "QUALIFIED  WAGES"  AND  "TARGETED  GROUP"
 SHALL  HAVE  THE  SAME MEANINGS AS IN SECTION 51 OF THE INTERNAL REVENUE
 CODE.
   (C) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 58;
   (2) ARTICLE 22: SECTION 606(I), SUBSECTIONS (I) AND (NNN);
   (3) ARTICLE 33: SECTION 1511, SUBDIVISION (EE).
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 58 to read as follows:
   58. WORK OPPORTUNITY TAX CREDIT. (A) ALLOWANCE OF CREDIT.  A  TAXPAYER
 SHALL  BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-
 SEVEN 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 AMOUNT PRESCRIBED  IN  PARAGRAPH  (D)  OF  SUBDIVISION  ONE  OF
 SECTION  TWO  HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF THE
 CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR  REDUCES  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14477-01-2
 S. 8463                             2
 
 TAX  TO  SUCH  AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE
 FIXED DOLLAR MINIMUM AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN
 SUCH TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED 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 SHALL BE PAID THEREON.
   §  3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xlix)  to  read  as
 follows:
 (XLIX) WORK OPPORTUNITY TAX          AMOUNT OF CREDIT UNDER SUBDIVISION
 CREDIT (NNN)                         FIFTY-EIGHT OF SECTION TWO HUNDRED
                                      TEN-B
   §  4. Section 606 of the tax law is amended by adding a new subsection
 (nnn) to read as follows:
   (NNN) WORK OPPORTUNITY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
 SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION  FORTY-
 SEVEN OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2)  APPLICATION  OF CREDIT. 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.
   § 5. Section 1511 of the tax law is amended by adding a  new  subdivi-
 sion (ee) to read as follows:
   (EE)  WORK OPPORTUNITY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
 SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION  FORTY-
 SEVEN OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN  THE  MINIMUM
 FIXED  BY  PARAGRAPH  FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED
 TWO OR SECTION FIFTEEN HUNDRED  TWO-A  OF  THIS  ARTICLE,  WHICHEVER  IS
 APPLICABLE.  HOWEVER,  IF  THE  AMOUNT  OF THE CREDIT ALLOWED UNDER THIS
 SUBDIVISION FOR ANY TAXABLE YEAR REDUCES  THE  TAXPAYER'S  TAX  TO  SUCH
 AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE 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 ONE THOUSAND EIGHTY-EIGHT
 OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   § 6. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2023.

2021-S8463A - Details

See Assembly Version of this Bill:: A9171
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §48, amd §§210-B, 606 & 1511, Tax L
Versions Introduced in 2023-2024 Legislative Session:: S4833, A1991, A8905

2021-S8463A - Summary

Creates a work opportunity tax credit.

2021-S8463A - Sponsor Memo

                                 
BILL NUMBER: S8463A

SPONSOR: KAPLAN
 
TITLE OF BILL:

An act to amend the tax law, in relation to creating a work opportunity
tax credit

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would establish in New York State law a Worker Opportunity Tax
Credit similar to the existing federal tax credit.

 
SUMMARY OF PROVISIONS:

Section one adds a new section 47 to the tax law establishing a Worker
Opportunity Tax Credit, details the additional sections of the tax law
affected, and specifies to whom the tax credit would apply.

Section two adds a new subdivision 58 to section 210-B of the tax law
detailing the allowance and application of the Worker Opportunity Tax
Credit therein.

Section three adds a new subdivision "bbb" to section 606 of the tax law
detailing the allowance and application of the Worker Opportunity Tax
Credit therein.

Section four adds a new subdivision "cc" to section 1511 of the tax law
detailing the allowance and application of the Worker Opportunity Tax
Credit therein.

Section five establishes the effective date.

 
JUSTIFICATION:

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available
to employers for hiring individuals from certain targeted groups that
have consistently faced significant barriers to employment. Data shows
that New York underutilizes the federal Worker Opportunity Tax Credit
incentive program. New York's ratio of WOTC-certified employees to popu-
lations is the lowest of the 18 states with the largest number of WOTC
certified employees.

The WOTC is available for wages paid to certain individuals who begin
work on or before December 31, 2025. The WOTC may be claimed by any
employer that hires and pays or incurs wages to certain individuals who
are certified by a designated local agency as being a member of one of
10 targeted groups. In general, the WOTC is equal to 40% of up to $6,000
of wages paid to, or incurred on behalf of, an individual who:

* is in their first year of employment;

* is certified as being a member of a targeted group; and

* performs at least 400 hours of services for that employer.

Thus, the maximum tax credit is generally $2,400. A 25% rate applies to
wages for individuals who perform fewer than 400 but at least 120 hours
of service for the employer.
The targeted groups include, Qualified IV-A Recipient, qualified Veter-
an, Ex-Felon, Designated Community Resident, Vocational Rehabilitation
Referral, Summer Youth Employee, SNAP recipient. SSI Recipient, Long
Term Family Assistance Recipient, Qualified Long-Term Unemployment
Recipient.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2022 and shall apply to wages paid to
individuals hired on an after such effective date.

2021-S8463A - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8463--A
 
                             I N  S E N A T E
 
                               March 3, 2022
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment  Operations  --  committee  discharged,  bill  amended,   ordered
   reprinted as amended and recommitted to said committee
 
 AN  ACT to amend the tax law, in relation to creating a work opportunity
   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 47 to read
 as follows:
   § 47. WORK OPPORTUNITY TAX CREDIT. (A) GENERAL. A TAXPAYER SUBJECT  TO
 TAX  UNDER  ARTICLE  NINE-A, TWENTY-TWO, OR THIRTY-THREE OF THIS CHAPTER
 SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX IN AN  AMOUNT  EQUAL  TO  ONE
 HUNDRED  PERCENT  OF  THE  CREDIT  THAT IS ALLOWED TO THE TAXPAYER UNDER
 SECTION 51 OF THE INTERNAL REVENUE CODE THAT IS ATTRIBUTABLE  TO  QUALI-
 FIED  WAGES  PAID  TO  A NEW YORK RESIDENT WHO IS A MEMBER OF A TARGETED
 GROUP AND FOR WHOM A CERTIFICATE TO THAT EFFECT HAS BEEN ISSUED  BY  THE
 DEPARTMENT OF LABOR.
   (B)  DEFINITIONS.  THE  TERMS  "QUALIFIED  WAGES" AND "TARGETED GROUP"
 SHALL HAVE THE SAME MEANINGS AS IN SECTION 51 OF  THE  INTERNAL  REVENUE
 CODE.
   (C) WAGES WHICH ARE THE BASIS OF THE CREDIT UNDER THIS SECTION MAY NOT
 BE USED AS THE BASIS FOR ANY OTHER CREDIT ALLOWED UNDER THIS CHAPTER.
   (D)  CROSS-REFERENCES.  FOR  APPLICATION OF THE CREDIT PROVIDED FOR IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 58;
   (2) ARTICLE 22: SECTION 606, SUBSECTION (BBB);
   (3) ARTICLE 33: SECTION 1511, SUBDIVISION (EE).
   § 2. Section 210-B of the tax law is amended by adding a new  subdivi-
 sion 58 to read as follows:
   58.  WORK  OPPORTUNITY TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER
 SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION  FORTY-
 SEVEN OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14477-03-2

 S. 8463--A                          2
 
   (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  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT  OF  THE
 CREDIT  ALLOWED  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 THUS NOT DEDUCTIBLE IN
 SUCH TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED 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 SHALL BE PAID THEREON.
   §  3. Section 606 of the tax law is amended by adding a new subsection
 (bbb) to read as follows:
   (BBB) WORK OPPORTUNITY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
 SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION  FORTY-
 SEVEN OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
 SUCH YEAR, THE EXCESS SHALL 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
 SHALL BE PAID THEREON.
   §  4.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (ee) to read as follows:
   (EE) WORK OPPORTUNITY TAX CREDIT. (1) A TAXPAYER SHALL  BE  ALLOWED  A
 CREDIT,  TO BE COMPUTED AS PROVIDED IN SECTION FORTY-SEVEN OF THIS CHAP-
 TER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
 SHALL  NOT  REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN THE MINIMUM
 FIXED BY PARAGRAPH FOUR OF SUBDIVISION (A) OF  SECTION  FIFTEEN  HUNDRED
 TWO  OR  SECTION  FIFTEEN  HUNDRED  TWO-A  OF THIS ARTICLE, WHICHEVER IS
 APPLICABLE. HOWEVER, IF THE AMOUNT OF  THE  CREDIT  ALLOWED  UNDER  THIS
 SUBDIVISION  FOR  ANY  TAXABLE  YEAR  REDUCES THE TAXPAYER'S TAX TO SUCH
 AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE 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 EIGHT-
 Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
 EON.
   § 5. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2022 and shall  apply  to  wages
 paid to individuals hired on and after such effective date.

2021-S8463B (ACTIVE) - Details

See Assembly Version of this Bill:: A9171
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Add §48, amd §§210-B, 606 & 1511, Tax L
Versions Introduced in 2023-2024 Legislative Session:: S4833, A1991, A8905

2021-S8463B (ACTIVE) - Summary

Creates a work opportunity tax credit.

2021-S8463B (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8463B

SPONSOR: KAPLAN
 
TITLE OF BILL:

An act to amend the tax law, in relation to creating a work opportunity
tax credit

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would establish in New York State law a Worker Opportunity Tax
Credit similar to the existing federal tax credit.

 
SUMMARY OF PROVISIONS:

Section one adds a new section 47 to the tax law establishing a Worker
Opportunity Tax Credit, details the additional sections of the tax law
affected, and specifies to whom the tax credit would apply.

Section two adds a new subdivision 58 to section 210-B of the tax law
detailing the allowance and application of the Worker Opportunity Tax
Credit therein, also clarifies it shall not exceed more than $1,000 per

individual in a tax year and is not refundable.

Section three adds a new subdivision "bbb" to section 606 of the tax law
detailing the allowance and application of the Worker Opportunity Tax
Credit therein, also clarifies it shall not exceed more than $1,000 per
individual in a tax year and is not refundable.

Section four adds a new subdivision "cc" to section 1511 of the tax law
detailing the allowance and application of the Worker Opportunity Tax
Credit therein, also clarifies it shall not exceed more than $1,000 per
individual in a tax year and is not refundable.

Section five establishes the effective date.

 
JUSTIFICATION:

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available
to employers for hiring individuals from certain targeted groups that
have consistently faced significant barriers to employment. Data shows
that New York underutilizes the federal Worker Opportunity Tax Credit
incentive program. New York's ratio of WOTC-certified employees to popu-
lations is the lowest of the 18 states with the largest number of WOTC
certified employees.

The WOTC is available for wages paid to certain individuals who begin
work on or before December 31, 2025. The WOTC may be claimed by any
employer that hires and pays or incurs wages to certain individuals who
are certified by a designated local agency as being a member of one of
10 targeted groups and

* is in their first year of employment;

* is certified as being a member of a targeted group; and

* performs at least 400 hours of services for that employer.


The targeted groups include, Qualified IV-A Recipient, qualified Veter-
an, Ex-Felon, Designated Community Resident, Vocational Rehabilitation
Referral, Summer Youth Employee, SNAP recipient. SSI Recipient, Long
Term Family Assistance Recipient, Qualified Long-Term Unemployment
Recipient.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on April 1, 2023 and shall apply to taxable
years beginning on and after January 1, 2023 and shall apply to wages
paid to individuals hired on an after such effective date.

2021-S8463B (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8463--B
 
                             I N  S E N A T E
 
                               March 3, 2022
                                ___________
 
 Introduced  by  Sen.  KAPLAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment  Operations  --  committee  discharged,  bill  amended,   ordered
   reprinted  as  amended  and recommitted to said committee -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 AN ACT to amend the tax law, in relation to creating a work  opportunity
   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 48  to  read
 as follows:
   §  48. WORK OPPORTUNITY TAX CREDIT. (A) GENERAL. A TAXPAYER SUBJECT TO
 TAX UNDER ARTICLE NINE-A, TWENTY-TWO, OR THIRTY-THREE  OF  THIS  CHAPTER
 SHALL  BE  ALLOWED  A  CREDIT AGAINST SUCH TAX IN AN AMOUNT EQUAL TO ONE
 HUNDRED PERCENT OF THE CREDIT THAT IS  ALLOWED  TO  THE  TAXPAYER  UNDER
 SECTION  51  OF THE INTERNAL REVENUE CODE THAT IS ATTRIBUTABLE TO QUALI-
 FIED WAGES PAID TO A NEW YORK RESIDENT WHO IS A  MEMBER  OF  A  TARGETED
 GROUP  AND  FOR WHOM A CERTIFICATE TO THAT EFFECT HAS BEEN ISSUED BY THE
 DEPARTMENT OF LABOR.
   (B) DEFINITIONS. THE TERMS  "QUALIFIED  WAGES"  AND  "TARGETED  GROUP"
 SHALL  HAVE  THE  SAME MEANINGS AS IN SECTION 51 OF THE INTERNAL REVENUE
 CODE.
   (C) WAGES WHICH ARE THE BASIS OF THE CREDIT UNDER THIS SECTION MAY NOT
 BE USED AS THE BASIS FOR ANY OTHER CREDIT ALLOWED UNDER THIS CHAPTER.
   (D) CROSS-REFERENCES. FOR APPLICATION OF THE CREDIT  PROVIDED  FOR  IN
 THIS SECTION, SEE THE FOLLOWING PROVISIONS OF THIS CHAPTER:
   (1) ARTICLE 9-A: SECTION 210-B, SUBDIVISION 59;
   (2) ARTICLE 22: SECTION 606, SUBSECTION (BBB);
   (3) ARTICLE 33: SECTION 1511, SUBDIVISION (EE).
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 59 to read as follows:
   59. WORK OPPORTUNITY TAX CREDIT. (A) ALLOWANCE OF CREDIT.  A  TAXPAYER
 SHALL  BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14477-04-2
 S. 8463--B                          2
 
 EIGHT OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS  ARTICLE.    SUCH
 CREDIT MAY NOT EXCEED ONE THOUSAND DOLLARS IN ANY GIVEN TAX YEAR.
   (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  AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D)  OF SUBDIVISION ONE OF
 SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT  OF  THE
 CREDIT  ALLOWED  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 THUS NOT DEDUCTIBLE IN
 SUCH TAXABLE YEAR WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDIT-
 ED  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 SHALL BE PAID THEREON.
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (bbb) to read as follows:
   (BBB) WORK OPPORTUNITY TAX CREDIT. (1) ALLOWANCE OF CREDIT. A TAXPAYER
 SHALL  BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN SECTION FORTY-
 EIGHT OF THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS  ARTICLE.    SUCH
 CREDIT MAY NOT EXCEED ONE THOUSAND DOLLARS IN ANY GIVEN TAX YEAR.
   (2)  APPLICATION  OF CREDIT. IF THE AMOUNT OF THE CREDIT ALLOWED UNDER
 THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR
 SUCH YEAR, THE EXCESS SHALL 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
 SHALL BE PAID THEREON.
   §  4.  Section 1511 of the tax law is amended by adding a new subdivi-
 sion (ee) to read as follows:
   (EE) WORK OPPORTUNITY TAX CREDIT. (1) A TAXPAYER SHALL  BE  ALLOWED  A
 CREDIT,  TO BE COMPUTED AS PROVIDED IN SECTION FORTY-EIGHT OF THIS CHAP-
 TER, AGAINST THE TAX IMPOSED BY THIS  ARTICLE.    SUCH  CREDIT  MAY  NOT
 EXCEED ONE THOUSAND DOLLARS IN ANY GIVEN TAX YEAR.
   (2)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO BE LESS THAN  THE  MINIMUM
 FIXED  BY  PARAGRAPH  FOUR OF SUBDIVISION (A) OF SECTION FIFTEEN HUNDRED
 TWO OR SECTION FIFTEEN HUNDRED  TWO-A  OF  THIS  ARTICLE,  WHICHEVER  IS
 APPLICABLE.  HOWEVER,  IF  THE  AMOUNT  OF THE CREDIT ALLOWED UNDER THIS
 SUBDIVISION FOR ANY TAXABLE YEAR REDUCES  THE  TAXPAYER'S  TAX  TO  SUCH
 AMOUNT,  ANY  AMOUNT OF CREDIT THUS NOT DEDUCTIBLE WILL BE TREATED AS AN
 OVERPAYMENT OF TAX TO BE CREDITED 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 SHALL BE PAID THEREON.
   § 5. This act shall take effect April 1, 2023 and shall apply to taxa-
 ble  years  beginning  on  and  after January 1, 2023 and shall apply to
 wages paid to individuals hired on and after such effective date.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Senate Bill S8463B

Sponsored By

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

Bill Amendments

2021-S8463 - Details

2021-S8463 - Summary

2021-S8463 - Sponsor Memo

2021-S8463 - Bill Text download pdf

2021-S8463A - Details

2021-S8463A - Summary

2021-S8463A - Sponsor Memo

2021-S8463A - Bill Text download pdf

2021-S8463B (ACTIVE) - Details

2021-S8463B (ACTIVE) - Summary

2021-S8463B (ACTIVE) - Sponsor Memo

2021-S8463B (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8463B

Share this bill

Sponsored By

Anna M. Kaplan

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

Bill Amendments

2021-S8463 - Details

2021-S8463 - Summary

2021-S8463 - Sponsor Memo

2021-S8463 - Bill Text download pdf

2021-S8463A - Details

2021-S8463A - Summary

2021-S8463A - Sponsor Memo

2021-S8463A - Bill Text download pdf

2021-S8463B (ACTIVE) - Details

2021-S8463B (ACTIVE) - Summary

2021-S8463B (ACTIVE) - Sponsor Memo

2021-S8463B (ACTIVE) - Bill Text download pdf

Comments