NY State Assembly Bill 2009-A10085

Assembly Bill A10085

2009-2010 Legislative Session

Creates a job development incentive income tax credit available to employers who employ individuals previously receiving unemployment

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Archive: Last Bill Status - In Assembly 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
May 21, 2010	print number 10085b
May 21, 2010	amend (t) and recommit to labor
Mar 24, 2010	print number 10085a
Mar 24, 2010	amend (t) and recommit to labor
Mar 03, 2010	referred to labor

Bill Amendments

Original

B (Active)

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2009-A10085 - Details

Current Committee:: Assembly Labor
Law Section:: Labor Law
Laws Affected:: Amd §§210 & 606, Tax L

2009-A10085 - Summary

Creates a job development incentive income tax credit available to employers who employ individuals previously receiving unemployment.

2009-A10085 - Sponsor Memo

                                BILL NUMBER:A10085

TITLE  OF  BILL:    An  act  to  amend the labor law, in relation to the
creation of a New York jobs development tax credit; and to amend the tax
law, in relation to an employment incentive income tax credit  available
to  employers  who  employ individuals previously receiving unemployment
benefits

PURPOSE OF THE BILL This bill would give incentives,  through  unemploy-
ment tax credits and income tax credits, to businesses who hire individ-
uals currently receiving unemployment benefits

SUMMARY  OF  SPECIFIC  PROVISIONS: Section 1 - provides that the Commis-
sioner of Labor shall make a request within fifteen days of  the  effec-
tive date of this act for a determination by the United States Secretary
of  Labor  that implementation of sections 2,3,4 and 5 are in conformity
with federal law.

Section 2 - adds a new Labor Law section 582, relating  to  unemployment
insurance  taxes,  called  the New York Jobs Development Tax Credit. The
credit against unemployment insurance payments will be not less than $25
and not more than S125 per individual employee per calendar quarter,  as
determined  by  the Commissioner based upon his or her evaluation of the
condition of the New York Labor market, state of  the  economy  and  the
statewide  reserve ratio. The credit -.may be claimed by an employer for
up to four calendar quarters with respect to an individual hired by that

employer who

(a) has filed a claim for unemployment  compensation  and  is  currently
receiving  weekly  unemployment  compensation benefits and such benefits
are chargeable to the experience rating account  of  an  employer  under
Title 7 of the Labor Law;

(b) has been profiled by the Department as likely to exhaust benefits;

(c) has no return to work date or promise of future employment; and

(d)  has  at  least 8 weeks of benefit eligibility remaining at the time
the individual is hired.

The credit is claimed on reports filed under Tax Law section 674.

Section 3 - amends Labor Law section 210, relating to franchise taxes on
business corporations, to add a new subdivision 41 granting  an  employ-
ment  incentive  tax  credit.  The credit is in the amount of $2,400 for
each creditable employee, as defined in the section.

Section 4 - amends Tax Law section  606,  relating  to  personal  income
taxes,  by  adding  a new subsection (qq) granting an employee incentive
tax credit in the amount of $2,400-per creditable employee,  as  defined
in the section.

Section 5 - amends subparagraph (13) of paragraph 1 of subsection (i) of
section  606 of the Tax Law, relating to S corporations, by adding a new
clause (xxxi) providing for an employment   incentive tax  credit  under
subsection  (qq)  in  the  amount of the credit under subdivision 412 of
section 210.

Section 6 - Effective date.

JUSTIFICATION: The economic meltdown that has engulfed the world's econ-
omy  has  left businesses in New York struggling to survive, and tens of
thousands of workers on unemployment. The state needs  to  act  to  help
employers and to return unemployed individuals to work. This bill accom-
plishes  both of these purposes. The bill offers incentives to employers
to rehire workers who have lost their jobs and are on unemployment  with
a twofold approach.

First,  credits are offered to employers on their unemployment insurance
taxes for hiring individuals who (a) are unemployed; (b)  are  laid  off
from New York employers; (e) are profiled as likely to exhaust benefits;
(d) have no return to work date or promise of future employment; and (e)
have at least eight weeks of unemployment eligibility remaining.

Secondly,  tax credits of up to $2,400 are offered to employers, whether
corporate, individual or an S corporation, for hiring unemployed persons
who meet specified criteria. The employee must (a) be employed  for  the
first  time  after  the effective date of this bill; (b) have been unem-
ployed for at least 4 weeks  immediately  prior  to  becoming  employed;
(c)remain  employed  by  the  employer  for  at least 24 months; and (d)
during the entire period of employment, receive monthly compensation  at
least equal to the average monthly employment compensation benefit being
paid to persons receiving employment compensation benefits in the state.

This  bill  offers  meaningful  incentive to hire new employees from the
ranks of the unemployed, and offers new employment opportunity to  indi-
viduals who might otherwise have little hope of returning to work in the
foreseeable future.

PRIOR LEGISLATIVE-HISTORY: New bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately, provided however
that  sections  two,  three, four and five of this act shall take effect
upon written notification by the United States Secretary of  Labor  that
the  provisions of this act are in conformity with federal law, pursuant
to section one of this act.

2009-A10085 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  10085

                          I N  A S S E M B L Y

                              March 3, 2010
                               ___________

Introduced  by  M.  of A. SCHIMMINGER, GABRYSZAK, PERRY, FIELDS, WRIGHT,
  GIBSON, CASTRO, ALESSI, DelMONTE, SPANO, CHRISTENSEN,  MAISEL,  GALEF,
  KOON,  GUNTHER  -- Multi-Sponsored by -- M. of A. BING, BOYLAND, COOK,
  MAGEE, MARKEY, PHEFFER, ROBINSON, SWEENEY, THIELE  --  read  once  and
  referred to the Committee on Labor

AN ACT to amend the labor law, in relation to the creation of a New York
  jobs  development tax credit; and to amend the tax law, in relation to
  an employment incentive income tax credit available to  employers  who
  employ individuals previously receiving unemployment benefits

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The commissioner of labor of the state of  New  York  shall
make a request within fifteen days of the effective date of this act for
a determination by the United States secretary of labor that implementa-
tion of sections two, three, four and five of this act are in conformity
with federal law.
  S  2.  The labor law is amended by adding a new section 582 to read as
follows:
  S 582. NEW YORK JOBS DEVELOPMENT TAX CREDIT. THERE SHALL BE  A  CREDIT
TO BE KNOWN AS THE "NEW YORK JOBS DEVELOPMENT TAX CREDIT". THE AMOUNT OF
THE  CREDIT SHALL NOT BE LESS THAN TWENTY-FIVE DOLLARS AND NOT MORE THAN
ONE HUNDRED TWENTY-FIVE DOLLARS PER  INDIVIDUAL  EMPLOYEE  PER  CALENDAR
QUARTER.  THE  DETERMINATION  OF  THE  AMOUNT  OF THE CREDIT, WITHIN THE
PERMISSIBLE RANGE, SHALL BE MADE AND PERIODICALLY REVISED BY THE COMMIS-
SIONER BASED ON THE COMMISSIONER'S EVALUATION OF CONDITIONS IN  THE  NEW
YORK  LABOR MARKET, THE STATE OF THE ECONOMY, AND THE STATE-WIDE RESERVE
RATIO. THE CREDIT MAY BE CLAIMED BY AN EMPLOYER FOR UP TO FOUR  CALENDAR
QUARTERS  WITH  RESPECT  TO  AN  INDIVIDUAL  HIRED  BY THAT EMPLOYER FOR
SERVICES TO BE PERFORMED IN THIS STATE UNDER THE FOLLOWING CONDITIONS:
  1. SUCH INDIVIDUAL:
  (A) HAS FILED A CLAIM FOR UNEMPLOYMENT COMPENSATION IN THIS STATE  AND
IS CURRENTLY RECEIVING WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS ON THAT
CLAIM  UNDER  THE  PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF THIS

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11574-01-9

A. 10085                            2

CHAPTER AND SUCH  BENEFITS  ARE  CHARGEABLE  TO  THE  EXPERIENCE  RATING
ACCOUNT OF AN EMPLOYER UNDER THIS TITLE;
  (B) HAS BEEN PROFILED BY THE DEPARTMENT AS LIKELY TO EXHAUST BENEFITS;
  (C) HAS NO RETURN TO WORK DATE OR PROMISE OF FUTURE EMPLOYMENT; AND
  (D)  HAS  AT LEAST EIGHT WEEKS OF BENEFIT ELIGIBILITY REMAINING ON HIS
OR HER CURRENT CLAIM AT THE TIME THE EMPLOYER HIRES THE INDIVIDUAL;
  2. THE CREDIT FOR EACH HIRED INDIVIDUAL PER CALENDAR  QUARTER  MAY  BE
CLAIMED  ON  THE  REPORTS REQUIRED TO BE FILED UNDER SECTION SIX HUNDRED
SEVENTY-FOUR OF THE TAX LAW AS A REDUCTION FROM  AMOUNTS  OTHERWISE  DUE
WITH RESPECT TO EACH OF THE FOUR CALENDAR QUARTERS IMMEDIATELY FOLLOWING
THE  HIRE DATE OF THE INDIVIDUAL; PROVIDED, HOWEVER, THAT THE CREDIT MAY
NOT BE CLAIMED FOR ANY HIRED INDIVIDUAL WITH RESPECT TO  MORE  THAN  ONE
HIRING  BY THE EMPLOYER CLAIMING THE CREDIT OR FOR MORE THAN FOUR CALEN-
DAR QUARTERS WITH RESPECT TO THAT ONE HIRING;
  3. FOR EACH CALENDAR QUARTER FOR WHICH THE  CREDIT  IS  CLAIMED,  SUCH
INDIVIDUAL  SHALL  BE CONTINUOUSLY EMPLOYED BY THE EMPLOYER CLAIMING THE
CREDIT, AND  SUCH  INDIVIDUAL'S  EMPLOYMENT  WITH  THAT  EMPLOYER  SHALL
CONSIST  OF  AT  LEAST  THIRTY  HOURS  PER WEEK DURING EACH WEEK OF THAT
CALENDAR QUARTER;
  4. THE CREDIT SHALL BE TIMELY CLAIMED  FOR  THE  CALENDAR  QUARTER  TO
WHICH  THE CREDIT IS APPLICABLE, AND IN NO EVENT LATER THAN THE LAST DAY
OF THE REPORTING MONTH FOLLOWING THE END  OF  THE  CALENDAR  QUARTER  TO
WHICH  THE CREDIT IS APPLICABLE. THE CREDIT SHALL NOT BE REFUNDABLE. THE
CREDIT SHALL NOT REDUCE TAX LIABILITY  BELOW  ZERO;  PROVIDED,  HOWEVER,
THAT  THE CREDIT, IF PROPERLY AND TIMELY CLAIMED, MAY BE CARRIED FORWARD
AND APPLIED AGAINST CONTRIBUTIONS DUE IN ANY SUBSEQUENT CALENDAR QUARTER
IN THE SAME CALENDAR YEAR AS CLAIMED. ANY UNUSED CREDIT REMAINING AT THE
END OF A CALENDAR YEAR MAY NOT BE CARRIED FORWARD  TO  ANOTHER  CALENDAR
YEAR AND SHALL BE DEEMED TO HAVE EXPIRED; AND
  5.  NO  CREDIT  SHALL BE CLAIMED OR TAKEN BY ANY EMPLOYER WHO FAILS TO
TIMELY FILE ANY REPORT OR TO TIMELY PAY ALL AMOUNTS  OTHERWISE  DUE  FOR
ALL  CALENDAR  QUARTERS DURING THE CALENDAR YEAR FOR WHICH THE CREDIT IS
CLAIMED. IN THE EVENT AN  EMPLOYER  HAS  CLAIMED  A  CREDIT  UNDER  THIS
SECTION AND FAILS TO TIMELY FILE ANY REPORT OR TO TIMELY PAY ALL AMOUNTS
OTHERWISE  DUE  DURING THE YEAR THE CREDIT IS CLAIMED, THE AMOUNT OF ANY
CREDITS CLAIMED WITH RESPECT TO THE CALENDAR YEAR SHALL BE CANCELED  AND
BECOME  DELINQUENT  AS  OF  THE  DATE  ORIGINALLY  DUE UNDER SECTION SIX
HUNDRED SEVENTY-FOUR OF THE TAX LAW AND SUBJECT TO ALL THE PROVISIONS OF
THIS ARTICLE AS IF NO CREDIT HAD EVER BEEN AVAILABLE OR CLAIMED.
  S 3. Section 210 of the tax law is amended by adding a new subdivision
41 to read as follows:
  41. EMPLOYMENT INCENTIVE TAX CREDIT. (A) A TAXPAYER SHALL BE ALLOWED A
CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX  IMPOSED
BY  THIS ARTICLE IN THE AMOUNT PRESCRIBED BY THIS SUBDIVISION WHERE SUCH
TAXPAYER EMPLOYS ONE OR MORE CREDITABLE EMPLOYEE.
  (B) THE AMOUNT OF THE  CREDIT  SHALL  BE  TWO  THOUSAND  FOUR  HUNDRED
DOLLARS FOR EACH CREDITABLE EMPLOYEE.
  (C)  FOR THE PURPOSES OF THIS SUBDIVISION, "CREDITABLE EMPLOYEE" SHALL
MEAN AN EMPLOYEE OF AN EMPLOYER WHO:
  (I) RESIDES IN THE STATE;
  (II) IS EMPLOYED BY THE EMPLOYER FOR THE FIRST TIME ON  OR  AFTER  THE
EFFECTIVE DATE OF THIS SUBDIVISION AND PRIOR TO JULY FIRST, TWO THOUSAND
TEN;
  (III) WAS UNEMPLOYED AT LEAST FOUR WEEKS IMMEDIATELY PRIOR TO BECOMING
SO EMPLOYED;

A. 10085                            3

  (IV) REMAINS EMPLOYED BY THE EMPLOYER FOR AT LEAST TWENTY-FOUR CONSEC-
UTIVE MONTHS; AND
  (V)  DURING  THE  ENTIRE  PERIOD  OF  SUCH EMPLOYMENT RECEIVES MONTHLY
COMPENSATION IN AN AMOUNT AT LEAST EQUAL TO THE AVERAGE MONTHLY  EMPLOY-
MENT  COMPENSATION  BENEFIT PAID TO PERSONS RECEIVING EMPLOYMENT COMPEN-
SATION BENEFITS IN THIS STATE.
  (D) FOR THE PURPOSES OF THIS SUBDIVISION,  "STAFFING  FIRM"  MEANS  AN
ORGANIZATION  THAT  HIRES ITS OWN EMPLOYEES AND ASSIGNS THEM TO A CLIENT
TO SUPPORT OR SUPPLEMENT THE CLIENT'S WORK FORCE IN SPECIAL  WORK  SITU-
ATIONS  SUCH  AS  EMPLOYEE ABSENCES, TEMPORARY SKILL SHORTAGES, SEASONAL
WORKLOADS, AND SPECIAL ASSIGNMENTS AND PROJECTS.
  (E) AN EMPLOYER WHO HAS ONE  OR  MORE  CREDITABLE  EMPLOYEES  AND  WHO
PROVIDES  A  NOTARIZED AFFIDAVIT ATTESTING TO USE OF THE FEDERAL EMPLOY-
MENT VERIFICATION SYSTEM NOW KNOWN AS 'E-VERIFY' OR ANY  FUTURE  FEDERAL
EMPLOYMENT  VERIFICATION  SYSTEM  SHALL  BE  ELIGIBLE  TO  APPLY FOR AND
RECEIVE THE CREDIT ESTABLISHED IN THIS SUBDIVISION. ELIGIBILITY FOR  THE
CREDIT  SHALL  BE  ESTABLISHED  AS  OF  THE TIME THE CREDITABLE EMPLOYEE
COMPLETES TWENTY-FOUR CONSECUTIVE MONTHS OF EMPLOYMENT; AND  THE  CREDIT
SHALL  BE  CLAIMED FOR THE TAXABLE YEAR IN WHICH THE TWENTY-FOURTH MONTH
OF SUCH EMPLOYMENT IS COMPLETED.
  (F) IN NO EVENT SHALL THE TOTAL AMOUNT OF ANY TAX  CREDIT  UNDER  THIS
SUBDIVISION  FOR A TAXABLE YEAR EXCEED THE TAXPAYER'S INCOME TAX LIABIL-
ITY. ANY UNUSED TAX CREDIT SHALL BE ALLOWED TO  BE  CARRIED  FORWARD  TO
APPLY  TO  THE  TAXPAYER'S SUCCEEDING TWO YEARS' TAX LIABILITY.  NO SUCH
TAX CREDIT SHALL BE  ALLOWED  THE  TAXPAYER  AGAINST  PRIOR  YEARS'  TAX
LIABILITY.
  (G) THE CREDIT SHALL BE CLAIMED AND GRANTED IN SUCH MANNER AS SHALL BE
SPECIFIED  BY  RULES  ADOPTED  BY THE COMMISSIONER; AND SUCH RULES SHALL
SPECIFICALLY PROVIDE FOR  THE  MANNER  OF  ESTABLISHING  THE  QUALIFYING
STATUS  OF UNEMPLOYMENT OF THE EMPLOYEE PRIOR TO EMPLOYMENT. THE AVERAGE
MONTHLY EMPLOYMENT SECURITY BENEFIT SHALL BE COMPUTED ON A MONTHLY BASIS
BY THE UNITED STATES COMMISSIONER OF LABOR.
  (H) FOR THE PURPOSE OF DETERMINING WHETHER AN EMPLOYEE IS EMPLOYED  BY
THE  EMPLOYER  UNDER  PARAGRAPH  (C) OF THIS SUBDIVISION, EMPLOYMENT MAY
INCLUDE UP TO THIRTEEN WEEKS CONTINUOUS PRIOR SERVICE FOR  THE  EMPLOYER
AS A TEMPORARY EMPLOYEE OF A STAFFING FIRM.
  S  4. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ) EMPLOYMENT INCENTIVE TAX CREDIT. (A) A TAXPAYER SHALL BE  ALLOWED
A  CREDIT,  TO  BE  COMPUTED  AS  HEREINAFTER  PROVIDED, AGAINST THE TAX
IMPOSED BY THIS ARTICLE IN THE  AMOUNT  PRESCRIBED  BY  THIS  SUBSECTION
WHERE SUCH TAXPAYER EMPLOYS ONE OR MORE CREDITABLE EMPLOYEE.
  (B)  THE  AMOUNT  OF  THE  CREDIT  SHALL  BE TWO THOUSAND FOUR HUNDRED
DOLLARS FOR EACH CREDITABLE EMPLOYEE.
  (C) FOR THE PURPOSES OF THIS SUBSECTION, "CREDITABLE  EMPLOYEE"  SHALL
MEAN AN EMPLOYEE OF AN EMPLOYER WHO:
  (I) RESIDES IN THE STATE;
  (II)  IS  EMPLOYED  BY THE EMPLOYER FOR THE FIRST TIME ON OR AFTER THE
EFFECTIVE DATE OF THIS SUBSECTION AND PRIOR TO JULY FIRST, TWO  THOUSAND
TEN;
  (III) WAS UNEMPLOYED AT LEAST FOUR WEEKS IMMEDIATELY PRIOR TO BECOMING
SO EMPLOYED;
  (IV) REMAINS EMPLOYED BY THE EMPLOYER FOR AT LEAST TWENTY-FOUR CONSEC-
UTIVE MONTHS; AND
  (V)  DURING  THE  ENTIRE  PERIOD  OF  SUCH EMPLOYMENT RECEIVES MONTHLY
COMPENSATION IN AN AMOUNT AT LEAST EQUAL TO THE AVERAGE MONTHLY  EMPLOY-

A. 10085                            4

MENT  COMPENSATION  BENEFIT PAID TO PERSONS RECEIVING EMPLOYMENT COMPEN-
SATION BENEFITS IN THIS STATE.
  (D)  FOR  THE  PURPOSES  OF  THIS SUBSECTION, "STAFFING FIRM" MEANS AN
ORGANIZATION THAT HIRES ITS OWN EMPLOYEES AND ASSIGNS THEM TO  A  CLIENT
TO  SUPPORT  OR SUPPLEMENT THE CLIENT'S WORK FORCE IN SPECIAL WORK SITU-
ATIONS SUCH AS EMPLOYEE ABSENCES, TEMPORARY  SKILL  SHORTAGES,  SEASONAL
WORKLOADS, AND SPECIAL ASSIGNMENTS AND PROJECTS.
  (E)  AN  EMPLOYER  WHO  HAS  ONE  OR MORE CREDITABLE EMPLOYEES AND WHO
PROVIDES A NOTARIZED AFFIDAVIT ATTESTING TO USE OF THE  FEDERAL  EMPLOY-
MENT  VERIFICATION  SYSTEM NOW KNOWN AS 'E-VERIFY' OR ANY FUTURE FEDERAL
EMPLOYMENT VERIFICATION SYSTEM  SHALL  BE  ELIGIBLE  TO  APPLY  FOR  AND
RECEIVE  THE  CREDIT ESTABLISHED IN THIS SUBSECTION. ELIGIBILITY FOR THE
CREDIT SHALL BE ESTABLISHED AS  OF  THE  TIME  THE  CREDITABLE  EMPLOYEE
COMPLETES  TWENTY-FOUR  CONSECUTIVE MONTHS OF EMPLOYMENT; AND THE CREDIT
SHALL BE CLAIMED FOR THE TAXABLE YEAR IN WHICH THE  TWENTY-FOURTH  MONTH
OF SUCH EMPLOYMENT IS COMPLETED.
  (F)  IN  NO  EVENT SHALL THE TOTAL AMOUNT OF ANY TAX CREDIT UNDER THIS
SUBSECTION FOR A TAXABLE YEAR EXCEED THE TAXPAYER'S INCOME  TAX  LIABIL-
ITY.  ANY  UNUSED  TAX  CREDIT SHALL BE ALLOWED TO BE CARRIED FORWARD TO
APPLY TO THE TAXPAYER'S SUCCEEDING TWO YEARS' TAX LIABILITY. NO SUCH TAX
CREDIT SHALL BE ALLOWED THE TAXPAYER AGAINST PRIOR YEARS' TAX LIABILITY.
  (G) THE CREDIT SHALL BE CLAIMED AND GRANTED IN SUCH MANNER AS SHALL BE
SPECIFIED BY RULES ADOPTED BY THE COMMISSIONER;  AND  SUCH  RULES  SHALL
SPECIFICALLY  PROVIDE  FOR  THE  MANNER  OF  ESTABLISHING THE QUALIFYING
STATUS OF UNEMPLOYMENT OF THE EMPLOYEE PRIOR TO EMPLOYMENT. THE  AVERAGE
MONTHLY EMPLOYMENT SECURITY BENEFIT SHALL BE COMPUTED ON A MONTHLY BASIS
BY THE UNITED STATES COMMISSIONER OF LABOR.
  (H)  FOR THE PURPOSE OF DETERMINING WHETHER AN EMPLOYEE IS EMPLOYED BY
THE EMPLOYER UNDER PARAGRAPH (C)  OF  THIS  SUBSECTION,  EMPLOYMENT  MAY
INCLUDE  UP  TO THIRTEEN WEEKS CONTINUOUS PRIOR SERVICE FOR THE EMPLOYER
AS A TEMPORARY EMPLOYEE OF A STAFFING FIRM.
  S 5. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by adding a new clause (xxxi) to read as
follows:
(XXXI) EMPLOYMENT INCENTIVE TAX      AMOUNT OF CREDIT UNDER
CREDIT UNDER SUBSECTION (QQ)         SUBDIVISION FORTY-ONE OF SECTION TWO
                                     HUNDRED TEN
  S 6. This act shall take effect immediately;  provided,  however  that
sections  two,  three,  four and five of this act shall take effect upon
written notification by the United States secretary of  labor  that  the
provisions  of  this act are in conformity with federal law, pursuant to
section one of this act. The commissioner of labor of the state  of  New
York  shall  notify  the  legislative  bill drafting commission upon the
occurrence of the enactment of the legislation provided for in this  act
in  order that the commission may maintain an accurate and timely effec-
tive data base of the official text of the laws of the state of New York
in furtherance of effectuating the  provisions  of  section  44  of  the
legislative law and section 70-b of the public officers law.

co-Sponsors

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multi-Sponsors

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2009-A10085A - Details

Current Committee:: Assembly Labor
Law Section:: Labor Law
Laws Affected:: Amd §§210 & 606, Tax L

2009-A10085A - Summary

Creates a job development incentive income tax credit available to employers who employ individuals previously receiving unemployment.

2009-A10085A - Sponsor Memo

                                BILL NUMBER:A10085A

TITLE  OF  BILL:    An  act  to  amend the labor law, in relation to the
creation of a New York jobs development credit; and  to  amend  the  tax
law,  in relation to an employment incentive income tax credit available
to employers who employ individuals  previously  receiving  unemployment
benefits

PURPOSE  OF THE BILL: This bill would give incentives, through unemploy-
ment tax credits and income tax credits, to businesses who hire individ-
uals currently receiving unemployment benefits.

SUMMARY OF SPECIFIC PROVISIONS:

§ 1- Provides that the Commissioner of Labor  shall  make  an  expedited
request  within  fifteen  days  of  the effective date of this act for a
determination by the United States Secretary of Labor  that  implementa-
tion  of Sections 2 and 3 are in conformity with federal law, and that a
waiver be sought if necessary.

§ 2- Adds a new Labor Law Section 582, relating to  unemployment  insur-
ance  taxes,  called  the  New  York Jobs Development Credit. The credit
against unemployment insurance  payments  will  be  $75  per  individual
employee  per calendar quarter, The credit may be claimed by an employer
for up to four calendar quarters with respect to an individual hired  by
that  employer  who has filed a claim for unemployment compensation, has

received at least two months  of  unemployment  benefits,  is  currently
receiving  weekly  unemployment  compensation benefits and such benefits
are chargeable to the experience rating account  of  an  employer  under
Title  7  of  the Labor Law or has completed a training program. The new
employee must be a full time employee working at least thirty hours  per
week.  The  section  also  includes  definitions related to who shall be
considered a new employee.

§ 3- Amends Section 570 of the Labor Law to provide the way  the  credit
created in new Section 582 will be claimed and credited.

§  4-  Amends Labor Law Section 210 relating to franchise taxes on busi-
ness corporations, to add a new subdivision 41  granting  an  employment
incentive  tax  credit.  The  credit is in the amount of $2,400 for each
creditable employee, as defined in the section.

§ 5- Amends Tax Law Section 606, relating to personal income  taxes,  by
adding  a  new subsection (qq) granting an employee incentive tax credit
in the amount of $2,400 per  creditable  employee,  as  defined  in  the
section.

§  6-  Amends  subparagraph  (13)  of  paragraph  1 of subsection (i) of
Section 606 of the Tax Law, relating to S corporations, by adding a  new
clause  (xxxi)  providing  for  an employment incentive tax credit under
subsection (qq) in the amount of the credit  under  subdivision  412  of
Section 210.

§ 7- Effective date.

CURRENT  LAW:    There are many tax credits available to individuals and
businesses to promote activities that benefit the state.

JUSTIFICATION: The economic meltdown that has engulfed the world's econ-
omy has left businesses in New York struggling to survive, and  tens  of
thousands  of  workers  on  unemployment. The state needs to act to help
employers and to return unemployed individuals to work. This bill accom-
plishes both of these purposes. The bill offers incentives to  employers
to  rehire workers who have lost their jobs and are on unemployment with
a twofold approach.

First, credits are offered to employers on their unemployment  insurance
contributions  for hiring individuals who have applied for unemployment,
have received unemployment benefits for at least two  months  which  was
credited  to  New  York  employers,  or has completed a training program
under Labor Law 599 and are full time employees.

In addition, tax credits of up to $2,400 per  employee  are  offered  to
employers, whether corporate, individual or an S corporation, for hiring
unemployed  persons  who  meet specified criteria. Both of these credits
offer an additional incentive to employers to take the risk and increase
their workforce.

This bill offers meaningful incentive to hire  new  employees  from  the
ranks  of the unemployed, and offers new employment opportunity to indi-
viduals.

FISCAL IMPLICATIONS: To be determined.

LEGISLATIVE HISTORY: New bill.

EFFECTIVE DATE: This act shall take effect immediately, provided however
that Sections two and three of this act shall take effect  upon  written
notification by the United States Secretary of Labor that the provisions
of  this act are in conformity with federal law, pursuant to Section one
of this act.

2009-A10085A - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                10085--A

                          I N  A S S E M B L Y

                              March 3, 2010
                               ___________

Introduced  by  M.  of A. SCHIMMINGER, GABRYSZAK, PERRY, FIELDS, WRIGHT,
  GIBSON, CASTRO, ALESSI, DelMONTE, SPANO, CHRISTENSEN,  MAISEL,  GALEF,
  KOON,  GUNTHER,  SKARTADOS  --  Multi-Sponsored  by  -- M. of A. BING,
  BOYLAND, COOK, MAGEE, MARKEY, PHEFFER, ROBINSON,  SWEENEY,  THIELE  --
  read  once  and  referred  to  the  Committee  on  Labor  -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the labor law, in relation to the creation of a New York
  jobs development credit; and to amend the tax law, in relation  to  an
  employment  incentive  income  tax  credit  available to employers who
  employ individuals previously receiving unemployment benefits

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  commissioner  shall make an expedited request within
fifteen days of the effective date of this act for  a  determination  by
the United States secretary of labor that implementation of sections two
and  three  of this act is in conformity with federal law. If the United
States secretary of labor determines that any provision in  section  two
or  three  of  this  act  is  not  in  conformity with federal law, then
sections two and three shall not become effective.  Upon  such  determi-
nation the commissioner shall take all necessary steps to obtain a waiv-
er  of  conformity  with federal law from the United States secretary of
labor. If such waiver is granted, sections two and  three  shall  become
effective  immediately.  If  the United States secretary of labor deter-
mines that sections two and three of this act  are  in  conformity  with
federal  law,  sections two and three of this act shall become effective
immediately.
  S 2. The labor law is amended by adding a new section 582 to  read  as
follows:
  S  582.  NEW  YORK  JOBS  DEVELOPMENT  CREDIT. THERE SHALL BE A CREDIT
AGAINST CONTRIBUTION TO BE KNOWN AS THE "NEW YORK JOBS DEVELOPMENT CRED-
IT". THE AMOUNT OF THE CREDIT SHALL BE SEVENTY-FIVE DOLLARS PER INDIVID-
UAL EMPLOYEE PER CALENDAR QUARTER. THE  CREDIT  MAY  BE  CLAIMED  BY  AN
EMPLOYER FOR UP TO FOUR CALENDAR QUARTERS WITH RESPECT TO A NEW EMPLOYEE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD11574-05-0

A. 10085--A                         2

HIRED BY THAT EMPLOYER FOR SERVICES IN ACCORDANCE WITH SUBDIVISIONS ONE,
TWO  OR  FOUR  OF  SECTION FIVE HUNDRED ELEVEN OF THIS ARTICLE UNDER THE
FOLLOWING CONDITIONS:
  1. SUCH NEW EMPLOYEE:
  (A) HAS FILED A CLAIM FOR UNEMPLOYMENT COMPENSATION IN THIS STATE, HAS
RECEIVED UNEMPLOYMENT BENEFITS IN THIS STATE FOR AT LEAST TWO MONTHS AND
IS  AT THE TIME OF HIRE RECEIVING WEEKLY UNEMPLOYMENT COMPENSATION BENE-
FITS ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF  THIS  ARTICLE
AND  SUCH BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING ACCOUNT OF AN
EMPLOYER UNDER THIS TITLE; OR
  (B) HAS SUCCESSFULLY COMPLETED A TRAINING PROGRAM PURSUANT TO  SECTION
FIVE HUNDRED NINETY-NINE OF THIS ARTICLE; AND
  (C) IS A NEW EMPLOYEE.
  2. FOR THE PURPOSES OF THIS SECTION THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
  (A)  "NEW  EMPLOYEE"  SHALL  MEAN  ANY FULL TIME EMPLOYEE, EMPLOYED AT
LEAST THIRTY HOURS PER WEEK, THAT CAUSES THE TOTAL NUMBER  OF  EMPLOYEES
TO  INCREASE  ABOVE  BASE  EMPLOYMENT OR CREDIT EMPLOYMENT, WHICHEVER IS
HIGHER.
  (B) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND NINE.
  (C) "BASE EMPLOYMENT" SHALL MEAN  THE  AVERAGE  NUMBER  OF  FULL  TIME
EMPLOYEES  OR FULL TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR A
NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
  (D) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER  OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED.
  S  3. Section 570 of the labor law is amended by adding a new subdivi-
sion 8 to read as follows:
  8. THE CREDIT FOR  EACH  HIRED  INDIVIDUAL  PER  CALENDAR  QUARTER  AS
PROVIDED IN SECTION FIVE HUNDRED EIGHTY-TWO OF THIS TITLE:
  (A)  MAY  BE  CLAIMED  ON THE REPORTS REQUIRED TO BE FILED PURSUANT TO
THIS TITLE AS A REDUCTION FROM AMOUNTS OTHERWISE  DUE  WITH  RESPECT  TO
EACH  OF  THE FOUR CALENDAR QUARTERS IMMEDIATELY FOLLOWING THE HIRE DATE
OF THE INDIVIDUAL; PROVIDED, HOWEVER, THAT THE CREDIT MAY NOT BE CLAIMED
FOR ANY HIRED INDIVIDUAL WITH RESPECT TO MORE THAN  ONE  HIRING  BY  THE
EMPLOYER  CLAIMING  THE  CREDIT  OR FOR MORE THAN FOUR CALENDAR QUARTERS
WITH RESPECT TO THAT ONE HIRING;
  (B) FOR EACH CALENDAR QUARTER FOR WHICH THE CREDIT  IS  CLAIMED,  SUCH
INDIVIDUAL  SHALL  BE CONTINUOUSLY EMPLOYED BY THE EMPLOYER CLAIMING THE
CREDIT, AND  SUCH  INDIVIDUAL'S  EMPLOYMENT  WITH  THAT  EMPLOYER  SHALL
CONSIST  OF  AT  LEAST  THIRTY  HOURS  PER WEEK DURING EACH WEEK OF THAT
CALENDAR QUARTER;
  (C) THE CREDIT SHALL BE TIMELY CLAIMED FOR  THE  CALENDAR  QUARTER  TO
WHICH  THE  CREDIT  IS APPLICABLE. THE CREDIT SHALL NOT REDUCE LIABILITY
BELOW ZERO; PROVIDED, HOWEVER, THAT ANY CREDIT REMAINING MAY BE  CARRIED
FORWARD AND APPLIED AGAINST CONTRIBUTIONS DUE IN ANY SUBSEQUENT CALENDAR
QUARTER; AND
  (D)  NO  CREDIT SHALL BE CLAIMED OR TAKEN BY ANY EMPLOYER WHO FAILS TO
TIMELY FILE ANY REPORT OR TO TIMELY PAY ALL AMOUNTS  OTHERWISE  DUE  FOR
ALL  CALENDAR  QUARTERS DURING THE CALENDAR YEAR FOR WHICH THE CREDIT IS
CLAIMED. IN THE EVENT AN  EMPLOYER  HAS  CLAIMED  A  CREDIT  UNDER  THIS
SECTION AND FAILS TO TIMELY FILE ANY REPORT OR TO TIMELY PAY ALL AMOUNTS
OTHERWISE  DUE  DURING THE YEAR THE CREDIT IS CLAIMED, THE AMOUNT OF ANY
CREDITS CLAIMED WITH RESPECT TO THE CALENDAR YEAR SHALL BE CANCELLED AND
BECOME DELINQUENT AS OF  THE  DATE  ORIGINALLY  DUE  UNDER  SECTION  SIX
HUNDRED SEVENTY-FOUR OF THE TAX LAW AND SUBJECT TO ALL THE PROVISIONS OF
THIS ARTICLE AS IF NO CREDIT HAD EVER BEEN AVAILABLE OR CLAIMED.

A. 10085--A                         3

  S 4. Section 210 of the tax law is amended by adding a new subdivision
41 to read as follows:
  41. EMPLOYMENT INCENTIVE TAX CREDIT. (A) A TAXPAYER SHALL BE ALLOWED A
CREDIT,  TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE TAX IMPOSED
BY THIS ARTICLE IN THE AMOUNT PRESCRIBED BY THIS SUBDIVISION WHERE  SUCH
TAXPAYER EMPLOYS ONE OR MORE CREDITABLE EMPLOYEE.
  (B)  THE  AMOUNT  OF  THE  CREDIT  SHALL  BE TWO THOUSAND FOUR HUNDRED
DOLLARS FOR EACH CREDITABLE EMPLOYEE.
  (C) FOR THE PURPOSES OF THIS SUBDIVISION, "CREDITABLE EMPLOYEE"  SHALL
MEAN A NEW EMPLOYEE OF AN EMPLOYER WHO:
  (I)  IS  EMPLOYED  BY  THE EMPLOYER FOR THE FIRST TIME ON OR AFTER THE
EFFECTIVE DATE OF THIS SUBDIVISION;
  (II) HAS FILED A CLAIM FOR UNEMPLOYMENT COMPENSATION IN THIS STATE;
  (III) HAS RECEIVED UNEMPLOYMENT BENEFITS IN THIS STATE  FOR  AT  LEAST
TWO MONTHS;
  (IV)  IS CURRENTLY RECEIVING WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS
ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
THE LABOR LAW; AND
  (V) SUCH BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING  ACCOUNT  OF
AN EMPLOYER UNDER THIS ARTICLE; OR
  (VI) HAS SUCCESSFULLY COMPLETED A TRAINING PROGRAM PURSUANT TO SECTION
FIVE HUNDRED NINETY-NINE OF THE LABOR LAW; AND
  (VII)  PERFORMS  SERVICES  IN  ACCORDANCE WITH SUBDIVISION ONE, TWO OR
FOUR OF SECTION FIVE HUNDRED ELEVEN OF THE LABOR LAW;
  (VIII) REMAINS EMPLOYED BY  THE  EMPLOYER  FOR  AT  LEAST  TWENTY-FOUR
CONSECUTIVE MONTHS; AND
  (IX)  DURING  THE  ENTIRE  PERIOD  SUCH EMPLOYMENT SHALL CONSIST OF AT
LEAST THIRTY HOURS PER WEEK.
  (D) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING  TERMS  SHALL  HAVE
THE FOLLOWING MEANINGS:
  (I)  "NEW  EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT CAUSES THE
TOTAL NUMBER OF EMPLOYEES TO INCREASE ABOVE BASE  EMPLOYMENT  OR  CREDIT
EMPLOYMENT, WHICHEVER IS HIGHER.
  (II) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND NINE.
  (III)  "BASE  EMPLOYMENT"  SHALL  MEAN THE AVERAGE NUMBER OF FULL-TIME
EMPLOYEES OR FULL-TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR  A
NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
  (IV) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED.
  (E)  AN  EMPLOYER  WHO  HAS  ONE OR MORE CREDITABLE EMPLOYEES SHALL BE
ELIGIBLE TO APPLY FOR AND RECEIVE THE CREDIT ESTABLISHED IN THIS  SUBDI-
VISION.  ELIGIBILITY  FOR THE CREDIT SHALL BE ESTABLISHED AS OF THE TIME
THE CREDITABLE EMPLOYEE  COMPLETES  TWENTY-FOUR  CONSECUTIVE  MONTHS  OF
EMPLOYMENT,  AND  THE  CREDIT  SHALL  BE CLAIMED FOR THE TAXABLE YEAR IN
WHICH THE TWENTY-FOURTH MONTH OF SUCH EMPLOYMENT IS COMPLETED.
  (F) IN NO EVENT SHALL THE TOTAL AMOUNT OF ANY TAX  CREDIT  UNDER  THIS
SUBDIVISION  FOR A TAXABLE YEAR EXCEED THE TAXPAYER'S INCOME TAX LIABIL-
ITY. ANY UNUSED TAX CREDIT SHALL BE ALLOWED TO  BE  CARRIED  FORWARD  TO
APPLY  TO  THE  TAXPAYER'S SUCCEEDING FIVE YEARS' TAX LIABILITY. NO SUCH
TAX CREDIT SHALL BE  ALLOWED  THE  TAXPAYER  AGAINST  PRIOR  YEARS'  TAX
LIABILITY.
  (G) THE CREDIT SHALL BE CLAIMED AND GRANTED IN SUCH MANNER AS SHALL BE
SPECIFIED BY RULES ADOPTED BY THE COMMISSIONER.
  S  5. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:

A. 10085--A                         4

  (QQ) EMPLOYMENT INCENTIVE TAX CREDIT. (1) A TAXPAYER SHALL BE  ALLOWED
A  CREDIT,  TO  BE  COMPUTED  AS  HEREINAFTER  PROVIDED, AGAINST THE TAX
IMPOSED BY THIS ARTICLE IN THE  AMOUNT  PRESCRIBED  BY  THIS  SUBSECTION
WHERE SUCH TAXPAYER EMPLOYS ONE OR MORE CREDITABLE EMPLOYEE.
  (2)  THE  AMOUNT  OF  THE  CREDIT  SHALL  BE TWO THOUSAND FOUR HUNDRED
DOLLARS FOR EACH CREDITABLE EMPLOYEE.
  (3) FOR THE PURPOSES OF THIS SUBSECTION, "CREDITABLE  EMPLOYEE"  SHALL
MEAN A NEW EMPLOYEE OF AN EMPLOYER WHO:
  (A)  IS  EMPLOYED  BY  THE EMPLOYER FOR THE FIRST TIME ON OR AFTER THE
EFFECTIVE DATE OF THIS SUBSECTION;
  (B) HAS FILED A CLAIM FOR UNEMPLOYMENT COMPENSATION IN THIS STATE;
  (C) HAS RECEIVED UNEMPLOYMENT BENEFITS IN THIS STATE FOR AT LEAST  TWO
MONTHS;
  (D)  IS  CURRENTLY RECEIVING WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS
ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
THE LABOR LAW; AND
  (E) SUCH BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING  ACCOUNT  OF
AN EMPLOYER UNDER THIS ARTICLE; OR
  (F)  HAS SUCCESSFULLY COMPLETED A TRAINING PROGRAM PURSUANT TO SECTION
FIVE HUNDRED NINETY-NINE OF THE LABOR LAW; AND
  (G) PERFORMS SERVICES IN ACCORDANCE WITH SUBDIVISION ONE, TWO OR  FOUR
OF SECTION FIVE HUNDRED ELEVEN OF THE LABOR LAW;
  (H)  REMAINS EMPLOYED BY THE EMPLOYER FOR AT LEAST TWENTY-FOUR CONSEC-
UTIVE MONTHS; AND
  (I) DURING THE ENTIRE PERIOD SUCH EMPLOYMENT SHALL CONSIST OF AT LEAST
THIRTY HOURS PER WEEK.
  (4) FOR THE PURPOSES OF THIS SUBSECTION THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
  (A) "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT  CAUSES  THE
TOTAL  NUMBER  OF  EMPLOYEES TO INCREASE ABOVE BASE EMPLOYMENT OR CREDIT
EMPLOYMENT, WHICHEVER IS HIGHER.
  (B) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND NINE.
  (C) "BASE EMPLOYMENT" SHALL MEAN  THE  AVERAGE  NUMBER  OF  FULL  TIME
EMPLOYEES  OR FULL TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR A
NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
  (D) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER  OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED.
  (5)  AN  EMPLOYER  WHO  HAS  ONE OR MORE CREDITABLE EMPLOYEES SHALL BE
ELIGIBLE TO APPLY  FOR  AND  RECEIVE  THE  CREDIT  ESTABLISHED  IN  THIS
SUBSECTION.  ELIGIBILITY  FOR  THE CREDIT SHALL BE ESTABLISHED AS OF THE
TIME THE CREDITABLE EMPLOYEE COMPLETES TWENTY-FOUR CONSECUTIVE MONTHS OF
EMPLOYMENT, AND THE CREDIT SHALL BE CLAIMED  FOR  THE  TAXABLE  YEAR  IN
WHICH THE TWENTY-FOURTH MONTH OF SUCH EMPLOYMENT IS COMPLETED.
  (6)  IN  NO  EVENT SHALL THE TOTAL AMOUNT OF ANY TAX CREDIT UNDER THIS
SUBSECTION FOR A TAXABLE YEAR EXCEED THE TAXPAYER'S INCOME  TAX  LIABIL-
ITY.  ANY  UNUSED  TAX  CREDIT SHALL BE ALLOWED TO BE CARRIED FORWARD TO
APPLY TO THE TAXPAYER'S SUCCEEDING FIVE YEARS' TAX  LIABILITY.  NO  SUCH
TAX  CREDIT  SHALL  BE  ALLOWED  THE  TAXPAYER  AGAINST PRIOR YEARS' TAX
LIABILITY.
  (7) THE CREDIT SHALL BE CLAIMED AND GRANTED IN SUCH MANNER AS SHALL BE
SPECIFIED BY RULES ADOPTED BY THE COMMISSIONER.
  S 6. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by adding a new clause (xxxi) to read as
follows:
(XXXI) EMPLOYMENT INCENTIVE TAX      AMOUNT OF CREDIT UNDER
CREDIT UNDER SUBSECTION (QQ)         SUBDIVISION FORTY-ONE OF SECTION

A. 10085--A                         5

                                     TWO HUNDRED TEN OF THIS CHAPTER
  S  7.  This act shall take effect immediately; provided, however, that
sections two and three of  this  act  shall  take  effect  upon  written
notification by the United States secretary of labor that the provisions
of  this act are in conformity with federal law, pursuant to section one
of this act. The commissioner of labor of the state of  New  York  shall
notify  the  legislative bill drafting commission upon the occurrence of
the enactment of the legislation provided for in this act in order  that
the  commission  may maintain an accurate and timely effective data base
of the official text of the laws of the state of New York in furtherance
of effectuating the provisions of section 44 of the legislative law  and
section 70-b of the public officers law.

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2009-A10085B (ACTIVE) - Details

Current Committee:: Assembly Labor
Law Section:: Labor Law
Laws Affected:: Amd §§210 & 606, Tax L

2009-A10085B (ACTIVE) - Summary

Creates a job development incentive income tax credit available to employers who employ individuals previously receiving unemployment.

2009-A10085B (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A10085B

TITLE  OF  BILL:    An act to amend the tax law, in relation to a jobs
development incentive income tax credit  available  to  employers  who
employ individuals previously receiving unemployment benefits

PURPOSE  OF  THE BILL: This bill would give incentives, through income
tax credits, to businesses who hire  individuals  currently  receiving
unemployment benefits.

SUMMARY OF SPECIFIC PROVISIONS:  Section 1- Amends Tax Law Section 210
relating  to  franchise  taxes  on business corporations, to add a new
subdivision 41 granting an employment incentive tax credit. The credit
is in the amount of 2,400 for each creditable employee, as defined  in
the section.

Section  2-  Amends  Tax  Law Section 606, relating to personal income
taxes, by adding a new subsection (qq) granting an employee  incentive
tax credit in the amount of $2,400 per creditable employee, as defined
in the section.

Section 3- Amends subparagraph (B) of paragraph 1 of subsection ( ) of
Section  606  of  the Tax Law, relating to S corporations, by adding a
new clause (xxxi) providing for an  employment  incentive  tax  credit
under subsection (qq) in the amount of the credit under subdivision 41
of section 2010.

Section 4- Effective date.

CURRENT  LAW:  There are many tax credits available to individuals and
businesses to promote activities that benefit the state economy.

JUSTIFICATION: The economic meltdown  that  has  engulfed  the  worlds
economy has left businesses in New York struggling to survive and tens
of  thousands  of  workers  on unemployment. The state needs to act to
help employers and to return unemployed individuals to work. This bill
accomplishes both of these purposes. The  bill  offers  incentives  to
employers  to  rehire  workers  who  have  lost  their jobs and are on
unemployment.

This bill offers tax credits of up to $2,400 per employee are  offered
to  employers,  whether corporate, individual or an S corporation, for
hiring unemployed persons who meet specified criteria. Both  of  these
credits  offer  an  additional incentive to employers to take the risk
and increase their workforce.

This bill offers meaningful incentive to hire new employees  from  the
ranks  of  the  unemployed,  and  offers new employment opportunity to
individuals.

FISCAL IMPLICATIONS: To be determined.

LEGISLATIVE HISTORY:
2009- (S.5264) Labor
2010- (S.5264/A.10085) Labor

EFFECTIVE DATE: This act shall take effect immediately.

2009-A10085B (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                10085--B

                          I N  A S S E M B L Y

                              March 3, 2010
                               ___________

Introduced  by  M.  of A. SCHIMMINGER, GABRYSZAK, PERRY, FIELDS, WRIGHT,
  GIBSON, CASTRO, ALESSI, DelMONTE, SPANO, CHRISTENSEN,  MAISEL,  GALEF,
  KOON,  GUNTHER,  SKARTADOS  --  Multi-Sponsored  by  -- M. of A. BING,
  BOYLAND, COOK, MAGEE, MARKEY, PHEFFER, ROBINSON,  SWEENEY,  THIELE  --
  read  once  and  referred  to  the  Committee  on  Labor  -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee -- again amended on special order of third  reading,
  ordered  reprinted,  retaining its place on the special order of third
  reading

AN ACT to amend the tax law, in relation to a jobs development incentive
  income tax credit available to employers who employ individuals previ-
  ously receiving unemployment benefits

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    Section  210  of the tax law is amended by adding a new
subdivision 41 to read as follows:
  41. JOBS DEVELOPMENT INCENTIVE TAX CREDIT. (A)  A  TAXPAYER  SHALL  BE
ALLOWED  A  CREDIT,  TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE IN THE AMOUNT PRESCRIBED BY THIS SUBDIVISION
WHERE SUCH TAXPAYER EMPLOYS ONE OR MORE CREDITABLE EMPLOYEE.
  (B) THE AMOUNT OF THE  CREDIT  SHALL  BE  TWO  THOUSAND  FOUR  HUNDRED
DOLLARS FOR EACH CREDITABLE EMPLOYEE.
  (C)  FOR THE PURPOSES OF THIS SUBDIVISION, "CREDITABLE EMPLOYEE" SHALL
MEAN A NEW EMPLOYEE OF AN EMPLOYER WHO:
  (I) IS EMPLOYED BY THE EMPLOYER FOR THE FIRST TIME  ON  OR  AFTER  THE
EFFECTIVE DATE OF THIS SUBDIVISION;
  (II) HAS FILED A CLAIM FOR UNEMPLOYMENT COMPENSATION IN THIS STATE;
  (III)  HAS  RECEIVED  UNEMPLOYMENT BENEFITS IN THIS STATE FOR AT LEAST
TWO MONTHS;
  (IV) IS CURRENTLY RECEIVING WEEKLY UNEMPLOYMENT COMPENSATION  BENEFITS
ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
THE LABOR LAW; AND
  (V)  SUCH  BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING ACCOUNT OF
AN EMPLOYER UNDER THIS ARTICLE; OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD11574-07-0

A. 10085--B                         2

  (VI) HAS SUCCESSFULLY COMPLETED A TRAINING PROGRAM PURSUANT TO SECTION
FIVE HUNDRED NINETY-NINE OF THE LABOR LAW; AND
  (VII)  PERFORMS  SERVICES  IN  ACCORDANCE WITH SUBDIVISION ONE, TWO OR
FOUR OF SECTION FIVE HUNDRED ELEVEN OF THE LABOR LAW;
  (VIII) REMAINS EMPLOYED BY  THE  EMPLOYER  FOR  AT  LEAST  TWENTY-FOUR
CONSECUTIVE MONTHS; AND
  (IX)  DURING  THE  ENTIRE  PERIOD  SUCH EMPLOYMENT SHALL CONSIST OF AT
LEAST THIRTY HOURS PER WEEK.
  (D) FOR THE PURPOSES OF THIS SECTION THE FOLLOWING  TERMS  SHALL  HAVE
THE FOLLOWING MEANINGS:
  (I)  "NEW  EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT CAUSES THE
TOTAL NUMBER OF EMPLOYEES TO INCREASE ABOVE BASE  EMPLOYMENT  OR  CREDIT
EMPLOYMENT, WHICHEVER IS HIGHER.
  (II) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND NINE.
  (III)  "BASE  EMPLOYMENT"  SHALL  MEAN THE AVERAGE NUMBER OF FULL-TIME
EMPLOYEES OR FULL-TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR  A
NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
  (IV) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED.
  (E)  AN  EMPLOYER  WHO  HAS  ONE OR MORE CREDITABLE EMPLOYEES SHALL BE
ELIGIBLE TO APPLY FOR AND RECEIVE THE CREDIT ESTABLISHED IN THIS  SUBDI-
VISION.  ELIGIBILITY  FOR THE CREDIT SHALL BE ESTABLISHED AS OF THE TIME
THE CREDITABLE EMPLOYEE  COMPLETES  TWENTY-FOUR  CONSECUTIVE  MONTHS  OF
EMPLOYMENT,  AND  THE  CREDIT  SHALL  BE CLAIMED FOR THE TAXABLE YEAR IN
WHICH THE TWENTY-FOURTH MONTH OF SUCH EMPLOYMENT IS COMPLETED.
  (F) IN NO EVENT SHALL THE TOTAL AMOUNT OF ANY TAX  CREDIT  UNDER  THIS
SUBDIVISION  FOR A TAXABLE YEAR EXCEED THE TAXPAYER'S INCOME TAX LIABIL-
ITY. ANY UNUSED TAX CREDIT SHALL BE ALLOWED TO  BE  CARRIED  FORWARD  TO
APPLY  TO  THE  TAXPAYER'S SUCCEEDING FIVE YEARS' TAX LIABILITY. NO SUCH
TAX CREDIT SHALL BE  ALLOWED  THE  TAXPAYER  AGAINST  PRIOR  YEARS'  TAX
LIABILITY.
  (G) THE CREDIT SHALL BE CLAIMED AND GRANTED IN SUCH MANNER AS SHALL BE
SPECIFIED BY RULES ADOPTED BY THE COMMISSIONER.
  S  2. Section 606 of the tax law is amended by adding a new subsection
(qq) to read as follows:
  (QQ) JOBS DEVELOPMENT INCENTIVE TAX CREDIT. (1) A  TAXPAYER  SHALL  BE
ALLOWED  A  CREDIT,  TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE IN THE AMOUNT PRESCRIBED BY THIS  SUBSECTION
WHERE SUCH TAXPAYER EMPLOYS ONE OR MORE CREDITABLE EMPLOYEE.
  (2)  THE  AMOUNT  OF  THE  CREDIT  SHALL  BE TWO THOUSAND FOUR HUNDRED
DOLLARS FOR EACH CREDITABLE EMPLOYEE.
  (3) FOR THE PURPOSES OF THIS SUBSECTION, "CREDITABLE  EMPLOYEE"  SHALL
MEAN A NEW EMPLOYEE OF AN EMPLOYER WHO:
  (A)  IS  EMPLOYED  BY  THE EMPLOYER FOR THE FIRST TIME ON OR AFTER THE
EFFECTIVE DATE OF THIS SUBSECTION;
  (B) HAS FILED A CLAIM FOR UNEMPLOYMENT COMPENSATION IN THIS STATE;
  (C) HAS RECEIVED UNEMPLOYMENT BENEFITS IN THIS STATE FOR AT LEAST  TWO
MONTHS;
  (D)  IS  CURRENTLY RECEIVING WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS
ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
THE LABOR LAW; AND
  (E) SUCH BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING  ACCOUNT  OF
AN EMPLOYER UNDER THIS ARTICLE; OR
  (F)  HAS SUCCESSFULLY COMPLETED A TRAINING PROGRAM PURSUANT TO SECTION
FIVE HUNDRED NINETY-NINE OF THE LABOR LAW; AND

A. 10085--B                         3

  (G) PERFORMS SERVICES IN ACCORDANCE WITH SUBDIVISION ONE, TWO OR  FOUR
OF SECTION FIVE HUNDRED ELEVEN OF THE LABOR LAW;
  (H)  REMAINS EMPLOYED BY THE EMPLOYER FOR AT LEAST TWENTY-FOUR CONSEC-
UTIVE MONTHS; AND
  (I) DURING THE ENTIRE PERIOD SUCH EMPLOYMENT SHALL CONSIST OF AT LEAST
THIRTY HOURS PER WEEK.
  (4) FOR THE PURPOSES OF THIS SUBSECTION THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
  (A) "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT  CAUSES  THE
TOTAL  NUMBER  OF  EMPLOYEES TO INCREASE ABOVE BASE EMPLOYMENT OR CREDIT
EMPLOYMENT, WHICHEVER IS HIGHER.
  (B) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND NINE.
  (C) "BASE EMPLOYMENT" SHALL MEAN  THE  AVERAGE  NUMBER  OF  FULL  TIME
EMPLOYEES  OR FULL TIME EQUIVALENT EMPLOYEES DURING THE BASE YEAR. FOR A
NEW BUSINESS, BASE EMPLOYMENT SHALL BEGIN AT ZERO.
  (D) "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER  OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED.
  (5)  AN  EMPLOYER  WHO  HAS  ONE OR MORE CREDITABLE EMPLOYEES SHALL BE
ELIGIBLE TO APPLY  FOR  AND  RECEIVE  THE  CREDIT  ESTABLISHED  IN  THIS
SUBSECTION.  ELIGIBILITY  FOR  THE CREDIT SHALL BE ESTABLISHED AS OF THE
TIME THE CREDITABLE EMPLOYEE COMPLETES TWENTY-FOUR CONSECUTIVE MONTHS OF
EMPLOYMENT, AND THE CREDIT SHALL BE CLAIMED  FOR  THE  TAXABLE  YEAR  IN
WHICH THE TWENTY-FOURTH MONTH OF SUCH EMPLOYMENT IS COMPLETED.
  (6)  IN  NO  EVENT SHALL THE TOTAL AMOUNT OF ANY TAX CREDIT UNDER THIS
SUBSECTION FOR A TAXABLE YEAR EXCEED THE TAXPAYER'S INCOME  TAX  LIABIL-
ITY.  ANY  UNUSED  TAX  CREDIT SHALL BE ALLOWED TO BE CARRIED FORWARD TO
APPLY TO THE TAXPAYER'S SUCCEEDING FIVE YEARS' TAX  LIABILITY.  NO  SUCH
TAX  CREDIT  SHALL  BE  ALLOWED  THE  TAXPAYER  AGAINST PRIOR YEARS' TAX
LIABILITY.
  (7) THE CREDIT SHALL BE CLAIMED AND GRANTED IN SUCH MANNER AS SHALL BE
SPECIFIED BY RULES ADOPTED BY THE COMMISSIONER.
  S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended  by adding a new clause (xxxi) to read as
follows:
(XXXI) JOBS DEVELOPMENT INCENTIVE    AMOUNT OF CREDIT UNDER
TAX CREDIT UNDER SUBSECTION (QQ)     SUBDIVISION FORTY-ONE OF SECTION
                                     TWO HUNDRED TEN OF THIS CHAPTER
  S 4. This act shall take effect immediately.

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Assembly Bill A10085

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Sponsored By

SCHIMMINGER

Archive: Last Bill Status - In Assembly Committee

Bill Amendments

co-Sponsors

Dennis H. Gabryszak

N. Nick Perry

Ginny Fields

David Weprin

multi-Sponsors

Jonathan Bing

William Boyland

Vivian Cook

William Magee

2009-A10085 - Details

2009-A10085 - Summary

2009-A10085 - Sponsor Memo

2009-A10085 - Bill Text download pdf

co-Sponsors

Dennis H. Gabryszak

N. Nick Perry

Ginny Fields

Keith L.T. Wright

multi-Sponsors

Jonathan Bing

William Boyland

Vivian Cook

William Magee

2009-A10085A - Details

2009-A10085A - Summary

2009-A10085A - Sponsor Memo

2009-A10085A - Bill Text download pdf

co-Sponsors

Dennis H. Gabryszak

N. Nick Perry

Ginny Fields

Keith L.T. Wright

multi-Sponsors

Jonathan Bing

William Boyland

Vivian Cook

William Magee

2009-A10085B (ACTIVE) - Details

2009-A10085B (ACTIVE) - Summary

2009-A10085B (ACTIVE) - Sponsor Memo

2009-A10085B (ACTIVE) - Bill Text download pdf

Comments