S T A T E O F N E W Y O R K
________________________________________________________________________
1755
2023-2024 Regular Sessions
I N A S S E M B L Y
January 20, 2023
___________
Introduced by M. of A. GOODELL -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a first perma-
nent payroll employee tax credit
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 59 to read as follows:
59. FIRST PERMANENT PAYROLL EMPLOYEE CREDIT. (A) GENERAL. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBDIVI-
SION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE FIRST FULL-TIME,
PERMANENT EMPLOYEE SUCH TAXPAYER EMPLOYS, PROVIDED THAT SUCH FULL-TIME,
PERMANENT EMPLOYEE IS ACCOUNTED FOR ON SUCH TAXPAYER'S EMPLOYER PAYROLL
RECORDS. SUCH CREDIT SHALL BE AVAILABLE FOR EACH OF THE THREE YEARS
SUCCEEDING THE DATE A TAXPAYER EMPLOYS THEIR FIRST FULL-TIME, PERMANENT
EMPLOYEE.
(B) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SUBDIVISION SHALL BE
EQUAL TO:
(1) IN THE FIRST YEAR, TWENTY-FIVE PERCENT OF THE TOTAL COST TO EMPLOY
A FULL-TIME, PERMANENT EMPLOYEE, WHEN SUCH EMPLOYEE IS ACCOUNTED FOR ON
AN EMPLOYER'S PAYROLL RECORDS AND IS THE FIRST FULL-TIME, PERMANENT
EMPLOYEE SUCH TAXPAYER HAS HIRED;
(2) IN THE SECOND YEAR, TWENTY PERCENT OF THE TOTAL COST TO EMPLOY A
FULL-TIME, PERMANENT EMPLOYEE, WHEN SUCH EMPLOYEE IS ACCOUNTED FOR ON AN
EMPLOYER'S PAYROLL RECORDS AND IS THE FIRST FULL-TIME, PERMANENT EMPLOY-
EE SUCH TAXPAYER HAS HIRED; AND
(3) IN THE THIRD YEAR, TEN PERCENT OF THE TOTAL COST TO EMPLOY A FULL-
TIME, PERMANENT EMPLOYEE, WHEN SUCH EMPLOYEE IS ACCOUNTED FOR ON AN
EMPLOYER'S PAYROLL RECORDS AND IS THE FIRST FULL-TIME, PERMANENT EMPLOY-
EE SUCH TAXPAYER HAS HIRED.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01984-01-3
A. 1755 2
(C) CARRYOVERS. THE CREDIT ALLOWED UNDER THIS SUBDIVISION MAY BE
CLAIMED AND IF NOT FULLY USED IN THE INITIAL YEAR FOR WHICH THE CREDIT
IS CLAIMED MAY BE CARRIED OVER, IN ORDER, TO EACH OF THE TWO SUCCEEDING
TAXABLE YEARS. THE CREDIT AUTHORIZED BY THIS SUBDIVISION MAY NOT BE USED
TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO.
(D) DEFINITIONS. FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
(1) "TOTAL COST TO EMPLOY" SHALL MEAN BASE SALARY, NEW YORK STATE
PAYROLL TAXES AND THE VALUE OF EMPLOYMENT BENEFITS RECEIVED.
(2) "NEW YORK STATE PAYROLL TAXES" SHALL MEAN ALL STATE TAXES PAID BY
AN EMPLOYER FROM SUCH EMPLOYER'S OWN FUNDS AND DIRECTLY RELATED TO
EMPLOYING AN EMPLOYEE.
(E) AGGREGATE AMOUNT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
PURSUANT TO THE AUTHORITY OF THIS SUBDIVISION AND SUBSECTION (OOO) OF
SECTION SIX HUNDRED SIX OF THIS CHAPTER SHALL BE FIFTEEN 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. (1) TAXPAYERS SHALL BE ELIGIBLE TO CLAIM SUCH
CREDIT BEGINNING IN THE FIRST TAXABLE YEAR AFTER SUCH TAXPAYER HAS
EMPLOYED THEIR FIRST FULL-TIME, PERMANENT EMPLOYEE, AS VERIFIED ON SUCH
TAXPAYER'S PAYROLL RECORDS.
(2) 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. Section 606 of the tax law is amended by adding a new subsection
(ooo) to read as follows:
(OOO) FIRST PERMANENT PAYROLL EMPLOYEE CREDIT. (1) GENERAL. A TAXPAYER
SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS
SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE FIRST FULL-
TIME, PERMANENT EMPLOYEE SUCH TAXPAYER EMPLOYS, PROVIDED THAT SUCH FULL-
TIME, PERMANENT EMPLOYEE IS ACCOUNTED FOR ON SUCH TAXPAYER'S EMPLOYER
PAYROLL RECORDS. SUCH CREDIT SHALL BE AVAILABLE FOR EACH OF THE THREE
YEARS SUCCEEDING THE DATE A TAXPAYER EMPLOYS THEIR FIRST FULL-TIME,
PERMANENT EMPLOYEE.
(2) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SUBSECTION SHALL BE
EQUAL TO:
(A) IN THE FIRST YEAR, TWENTY-FIVE PERCENT OF THE TOTAL COST TO EMPLOY
A FULL-TIME, PERMANENT EMPLOYEE, WHEN SUCH EMPLOYEE IS ACCOUNTED FOR ON
AN EMPLOYER'S PAYROLL RECORDS AND IS THE FIRST FULL-TIME, PERMANENT
EMPLOYEE SUCH TAXPAYER HAS HIRED;
(B) IN THE SECOND YEAR, TWENTY PERCENT OF THE TOTAL COST TO EMPLOY A
FULL-TIME, PERMANENT EMPLOYEE, WHEN SUCH EMPLOYEE IS ACCOUNTED FOR ON AN
EMPLOYER'S PAYROLL RECORDS AND IS THE FIRST FULL-TIME, PERMANENT EMPLOY-
EE SUCH TAXPAYER HAS HIRED; AND
(C) IN THE THIRD YEAR, TEN PERCENT OF THE TOTAL COST TO EMPLOY A FULL-
TIME, PERMANENT EMPLOYEE, WHEN SUCH EMPLOYEE IS ACCOUNTED FOR ON AN
EMPLOYER'S PAYROLL RECORDS AND IS THE FIRST FULL-TIME, PERMANENT EMPLOY-
EE SUCH TAXPAYER HAS HIRED.
(3) CARRYOVERS. THE CREDIT ALLOWED UNDER THIS SUBSECTION MAY BE
CLAIMED AND IF NOT FULLY USED IN THE INITIAL YEAR FOR WHICH THE CREDIT
IS CLAIMED MAY BE CARRIED OVER, IN ORDER, TO EACH OF THE TWO SUCCEEDING
TAXABLE YEARS. THE CREDIT AUTHORIZED BY THIS SUBSECTION MAY NOT BE USED
TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO.
A. 1755 3
(4) DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
(A) "TOTAL COST TO EMPLOY" SHALL MEAN BASE SALARY, NEW YORK STATE
PAYROLL TAXES AND THE VALUE OF EMPLOYMENT BENEFITS RECEIVED.
(B) "NEW YORK STATE PAYROLL TAXES" SHALL MEAN ALL STATE TAXES PAID BY
AN EMPLOYER FROM SUCH EMPLOYER'S OWN FUNDS AND DIRECTLY RELATED TO
EMPLOYING AN EMPLOYEE.
(5) AGGREGATE AMOUNT. THE AGGREGATE AMOUNT OF TAX CREDITS ALLOWED
PURSUANT TO THE AUTHORITY OF THIS SUBSECTION AND SUBDIVISION FIFTY-NINE
OF SECTION TWO HUNDRED TEN-B OF THIS CHAPTER SHALL BE FIFTEEN 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.
(6) CLAIM OF CREDIT. (A) TAXPAYERS SHALL BE ELIGIBLE TO CLAIM SUCH
CREDIT BEGINNING IN THE FIRST TAXABLE YEAR AFTER SUCH TAXPAYER HAS
EMPLOYED THEIR FIRST FULL-TIME, PERMANENT EMPLOYEE, AS VERIFIED ON SUCH
TAXPAYER'S PAYROLL RECORDS.
(B) 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.
§ 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (l) to read as follows:
(L) FIRST PERMANENT PAYROLL AMOUNT OF CREDIT UNDER SUBDIVISION
EMPLOYEE CREDIT UNDER SUBSECTION FIFTY-NINE OF SECTION TWO HUNDRED
(OOO) TEN-B
§ 4. This act shall take effect immediately and shall apply to taxable
years commencing on and after January 1, 2024.