BILL NUMBER: S5594

SPONSOR: FERNANDEZ
 
TITLE OF BILL:

An act to amend the tax law, in relation to establishing a tax credit
for small businesses employing an eligible immigrant worker

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation will provide small businesses with a tax credit for
hiring eligible immigrant workers.

 
SUMMARY OF PROVISIONS:

Section 1: Section of the 210-B of the tax law is amended to establish
the immigrant worker tax credit. Small Businesses that hire an immigrant
for at least 1 year will be eligible for 51,500 a year.

Section 2: Subparagraph (B) of paragraph 1 of subsection (i) of section
606 of the tax law is amended by adding the new immigrant worker tax
credit clause.
              

Section 3: Section 606 of the tax law is amended by adding a new
subsection (jjj) stating the immigrant worker tax credit.

Section 4: This act shall take effect immediately.

 
JUSTIFICATION:

New York has welcomed a significant number of newly arrived immigrants
over the past two years who want to join New York's workforce. A 2024
report from the Immigration Research Initiative estimated that in the
first year after an immigrant's arrival, for each 1,000 newly arrived
immigrant workers, state and local tax revenue would increase by $2.6
million. However, integration into the workforce without the proper
training can be complicated for new arrivals and workforce development
is key to ensuring stability, safety, and growth in the workplace; and

According to the Center for an Urban Future, with the influx of new
arrivals, workforce development providers have been struggling to meet
the increasing demand for their services, and waitlists are growing. The
demand for workforce development services continues to increase and
without resources available to support this demand, new arrivals may
struggle to find employment even after obtaining work permits. New York
businesses have expressed interest in hiring new arrivals with work
authorization, but if new arrivals require workforce development and
training, businesses may be less likely to hire them, particularly if
they do not have the resources to provide workforce development training
themselves.

However, if certain businesses are incentivized to create workforce
development and training programs, the growing demand for these services
can begin to be met. Tax credits are often utilized to incentivize busi-
nesses to provide these trainings. Successful integration into the work-
force requires the proper resources, and once those resources are
accessed, they can provide stability for new arrivals and eventually
growth for the States's economy.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect immediately.