S T A T E O F N E W Y O R K
________________________________________________________________________
4733
2023-2024 Regular Sessions
I N A S S E M B L Y
February 23, 2023
___________
Introduced by M. of A. RAJKUMAR, LUPARDO, BLANKENBUSH, COLTON, WEPRIN,
STERN, WALSH, HUNTER, BUTTENSCHON, OTIS, SANTABARBARA, REILLY,
SEAWRIGHT, FALL, PALMESANO, STIRPE, MANKTELOW, GONZALEZ-ROJAS, JACOB-
SON, MEEKS, SAYEGH -- read once and referred to the Committee on Ways
and Means
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 59 to read as follows:
59. 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04249-01-3
A. 4733 2
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) DEFINITION. 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
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 (OOO) 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 (l) to read as follows:
(L) SMALL BUSINESS TAX CREDIT; AMOUNT OF CREDIT UNDER
DISABLED PERSONS UNDER SUBDIVISION FIFTY-NINE
SUBSECTION (OOO) OF SECTION TWO HUNDRED
TEN-B
§ 3. Section 606 of the tax law is amended by adding a new subsection
(ooo) to read as follows:
(OOO) 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 CHAPTER. 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) DEFINITION. 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 BODILY
FUNCTION OR IS DEMONSTRABLE BY MEDICALLY ACCEPTED CLINICAL OR LABORATORY
DIAGNOSTIC TECHNIQUES.
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(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 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.
(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-NINE OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (OOO)
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
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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
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, 2025 and shall expire and be
deemed repealed December 31, 2030.