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

                                  3983

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 29, 2009
                               ___________

Introduced by M. of A. CROUCH -- Multi-Sponsored by -- M. of A. BACALLES
  -- read once and referred to the Committee on Ways and Means

AN  ACT  to  amend the tax law, in relation to establishing a credit for
  developing a college to work program

  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 22-a to read as follows:
  22-A. CREDIT FOR COLLEGE TO WORK PROGRAM. (A) ALLOWANCE OF  CREDIT.  A
TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS HEREINAFTER
PROVIDED, AGAINST THE TAX  IMPOSED  BY  THIS  ARTICLE,  BASED  UPON  ITS
PAYMENT OF TUITION TO AN INSTITUTION OF HIGHER EDUCATION ON BEHALF OF AN
INDIVIDUAL  IN  EXCHANGE  FOR  THE  INDIVIDUAL  AGREEING TO WORK FOR THE
TAXPAYER FOR A NUMBER OF YEARS, AS SET  FORTH  IN  A  WRITTEN  AGREEMENT
BETWEEN THE TAXPAYER AND THE INDIVIDUAL.
  (B) TUITION. FOR THE PURPOSES OF THIS CREDIT, THE TERM "TUITION" SHALL
MEAN  THE  TUITION AND FEES PAID FOR THE ENROLLMENT AND ATTENDANCE OF AN
INDIVIDUAL AT AN INSTITUTION OF HIGHER EDUCATION, AS WELL AS MONIES PAID
FOR TEXTBOOKS IN CONNECTION WITH ATTENDANCE AT AN INSTITUTION OF  HIGHER
EDUCATION.    PROVIDED, HOWEVER, ANY AMOUNTS WHICH HAVE BEEN PAID FOR OR
REIMBURSED BY ANY  OTHER  SCHOLARSHIPS  OR  FINANCIAL  AID,  OR  TUITION
REQUIRED  FOR  ENROLLMENT  OR ATTENDANCE IN A COURSE OF STUDY LEADING TO
THE GRANTING OF A POST BACCALAUREATE OR OTHER GRADUATE DEGREE, SHALL  BE
EXCLUDED FROM THE DEFINITION OF "TUITION".
  (C)  INSTITUTION OF HIGHER EDUCATION. FOR THE PURPOSES OF THIS CREDIT,
THE TERM "INSTITUTION OF HIGHER EDUCATION" SHALL MEAN ANY INSTITUTION OF
HIGHER EDUCATION, RECOGNIZED AND APPROVED BY THE REGENTS, OR ANY SUCCES-
SOR ORGANIZATION, OF THE UNIVERSITY OF THE STATE OF NEW YORK OR  ACCRED-
ITED  BY  A  NATIONALLY  RECOGNIZED  ACCREDITING  AGENCY  OR ASSOCIATION
ACCEPTED AS SUCH BY THE REGENTS, OR ANY SUCCESSOR ORGANIZATION,  OF  THE
UNIVERSITY  OF  THE  STATE OF NEW YORK, WHICH PROVIDES A COURSE OF STUDY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07022-01-9
              

A. 3983                             2

LEADING TO THE GRANTING  OF  A  POST-SECONDARY  DEGREE,  CERTIFICATE  OR
DIPLOMA.
  (D) QUALIFIED INDIVIDUAL. FOR PURPOSES OF THIS CREDIT, THE TERM "QUAL-
IFIED  INDIVIDUAL"  SHALL MEAN ANY INDIVIDUAL WHO IS NOT A SPOUSE, CHILD
OR DEPENDENT OF THE TAXPAYER OR ANY INDIVIDUAL  WHO  IS  NOT  A  SPOUSE,
CHILD OR DEPENDENT OF ANY OFFICER OR EMPLOYEE OF THE TAXPAYER.
  (E) WRITTEN AGREEMENT.  FOR PURPOSES OF THIS CREDIT, THE TERM "WRITTEN
AGREEMENT"  SHALL  MEAN A DOCUMENT SIGNED AND DATED BY BOTH THE TAXPAYER
AND THE QUALIFIED INDIVIDUAL WHICH CONTAINS PROVISIONS INCLUDING BUT NOT
LIMITED TO THE MINIMUM SALARY WHICH THE TAXPAYER WILL PAY TO THE  QUALI-
FIED INDIVIDUAL UPON COMPLETION OF THE INDIVIDUAL'S DEGREE; THE REQUIRED
DURATION  OF  EMPLOYMENT UPON COMPLETION OF THE INDIVIDUAL'S DEGREE; AND
THE PARTIES' RESPECTIVE RESPONSIBILITIES IN THE EVENT THAT THE  TAXPAYER
CEASES  OPERATIONS OR LATER DECIDES NOT TO OFFER EMPLOYMENT TO THE INDI-
VIDUAL UPON COMPLETION OF HIS/HER DEGREE OR IN THE EVENT THAT THE QUALI-
FIED INDIVIDUAL FAILS TO COMPLETE THE DEGREE OR TO WORK FOR THE TAXPAYER
FOR THE AGREED UPON TERM.
  (F) AMOUNT OF CREDIT. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW,
A TAXPAYER WHICH PROVIDES FOR THE PAYMENT  OF  AN  INDIVIDUAL'S  TUITION
UNDER THE COLLEGE TO WORK PROGRAM ESTABLISHED BY THIS SUBDIVISION, SHALL
BE  ALLOWED  A  CREDIT  AGAINST  THE TAX IMPOSED BY THIS ARTICLE, TO THE
EXTENT OF TWENTY-FIVE PERCENT  OF  MONIES  PAID  FOR  EACH  INDIVIDUAL'S
TUITION,  BUT SUCH CREDIT SHALL NOT EXCEED FIVE THOUSAND DOLLARS FOR ONE
YEAR FOR EACH SUCH QUALIFIED INDIVIDUAL.
  (G) CARRYOVER. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXA-
BLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR  TO  LESS  THAN  THE
HIGHER  OF  THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI-
SION ONE OF THIS SECTION. PROVIDED, HOWEVER, IF  THE  AMOUNT  OF  CREDIT
ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO
SUCH  AMOUNT,  ANY  AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE  DEDUCTED
FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law, as amended by section 2 of part ZZ-l of  chapter  57  of
the laws of 2008, is amended to read as follows:
  (B)  shall  be  treated as the owner of a new business with respect to
such share if the corporation qualifies as a new  business  pursuant  to
paragraph  (j)  of subdivision twelve of section two hundred ten of this
chapter.

                                     The corporation's credit base under
                                     section two hundred ten or section
With respect to the following        fourteen hundred fifty-six of this
credit under this section:           chapter is:

(I) Investment tax credit            Investment credit base
under subsection (a)                 or qualified
                                     rehabilitation
                                     expenditures under
                                     subdivision twelve of
                                     section two hundred ten

(II) Empire zone                     Cost or other basis
investment tax credit                under subdivision
under subsection (j)                 twelve-B
                                     of section two hundred

A. 3983                             3

                                     ten

(III) Empire zone                    Eligible wages under
wage tax credit                      subdivision nineteen of
under subsection (k)                 section two hundred ten
                                     or subsection (e) of
                                     section fourteen hundred
                                     fifty-six

(IV) Empire zone                     Qualified investments
capital tax credit                   and contributions under
under subsection (l)                 subdivision twenty of
                                     section two hundred ten
                                     or subsection (d) of
                                     section fourteen hundred
                                     fifty-six

(V) Agricultural property tax        Allowable school
credit under subsection (n)          district property taxes under
                                     subdivision twenty-two of
                                     section two hundred ten

(VI) Credit for employment           Qualified first-year wages or
of persons with dis-                 qualified second-year wages
abilities under                      under subdivision
subsection (o)                       twenty-three of section
                                     two hundred ten
                                     or subsection (f)
                                     of section fourteen
                                     hundred fifty-six

(VII) Employment incentive           Applicable investment credit
credit under subsec-                 base under subdivision
tion (a-1)                           twelve-D of section two
                                     hundred ten

(VIII) Empire zone                   Applicable investment
employment                           credit under sub-
incentive credit under               division twelve-C
subsection (j-1)                     of section two hundred ten

(IX) Alternative fuels credit        Cost under subdivision
under subsection (p)                 twenty-four of section two
                                     hundred ten

(X) Qualified emerging               Applicable credit base
technology company                   under subdivision twelve-E
employment credit                    of section two hundred ten
under subsection (q)

(XI) Qualified emerging              Qualified investments under
technology company                   subdivision twelve-F of
capital tax credit                   section two hundred ten
under subsection (r)

A. 3983                             4

(XII) Credit for purchase of an      Cost of an automated
automated external defibrillator     external defibrillator under
under subsection (s)                 subdivision twenty-five of
                                     section two hundred ten
                                     or subsection (j) of section
                                     fourteen hundred fifty-six

(XIII) Low-income housing            Credit amount under
credit under subsection (x)          subdivision thirty
                                     of section two hundred ten or
                                     subsection (l) of section
                                     fourteen hundred fifty-six

(XIV) Credit for transportation      Amount of credit under sub-
improvement contributions            division thirty-two of section
under subsection (z)                 two hundred ten or subsection
                                     (n) of section fourteen
                                     hundred fifty-six

(XV) QEZE credit for real property   Amount of credit under
taxes under subsection (bb)          subdivision twenty-seven of
                                     section two hundred ten or
                                     subsection (o) of section
                                     fourteen hundred fifty-six

(XVI) QEZE tax reduction credit      Amount of benefit period
under subsection (cc)                factor, employment increase factor
                                     and zone allocation
                                     factor (without regard
                                     to pro ration) under
                                     subdivision twenty-eight of
                                     section two hundred ten or
                                     subsection (p) of section
                                     fourteen hundred fifty-six
                                     and amount of tax factor
                                     as determined under
                                     subdivision (f) of section sixteen

(XVII) Green building credit         Amount of green building credit
under subsection (y)                 under subdivision thirty-one
                                     of section two hundred ten
                                     or subsection (m) of section
                                     fourteen hundred fifty-six

(XVIII) Credit for long-term         Qualified costs under
care insurance premiums              subdivision twenty-five-a of
under subsection (aa)                section two hundred ten
                                     or subsection (k) of section
                                     fourteen hundred fifty-six

(XIX) Brownfield redevelopment       Amount of credit
credit under subsection              under subdivision
(dd)                                 thirty-three of section
                                     two hundred ten
                                     or subsection (q) of
                                     section fourteen hundred

A. 3983                             5

                                     fifty-six

(XX) Remediated brownfield           Amount of credit under
credit for real property             subdivision thirty-four
taxes for qualified                  of section two hundred
sites under subsection               ten or subsection (r) of
(ee)                                 section fourteen hundred
                                     fifty-six

(XXI) Environmental                  Amount of credit under
remediation                          subdivision thirty-five of
insurance credit under               section two hundred
subsection (ff)                      ten or subsection
                                     (s) of section
                                     fourteen hundred
                                     fifty-six

(XXII) Empire state film production  Amount of credit for
credit under subsection (gg)         qualified
                                     production costs in production
                                     of a qualified film under
                                     subdivision thirty-six of
                                     section two hundred ten

(XXIII) Qualified emerging           Qualifying expenditures
technology company facilities,       and development activities under
operations and training credit       subdivision twelve-G of section
under subsection (nn)                two hundred ten

(XXIV) Security training tax         Amount of credit
credit under                         under subdivision thirty-seven
subsection (ii)                      of section two hundred ten or
                                     under subsection (t) of
                                     section fourteen hundred fifty-six

(XXV) Credit for qualified fuel      Amount of credit
cell electric generating equipment   under subdivision thirty-seven
expenditures under subsection (g-2)  of section two hundred ten
                                     or subsection (t) of
                                     section fourteen hundred
                                     fifty-six

(XXVI) Empire state commercial       Amount
production credit under subsection   of credit for qualified
(jj)                                 production costs in production
                                     of a qualified commercial under
                                     subdivision thirty-eight of sec-
                                     tion two hundred ten

(XXVII) Biofuel production           Amount of credit
tax credit under                     under subdivision
subsection (jj)                      thirty-eight of
                                     section two hundred ten

(XXVIII) Clean heating fuel credit   Amount of credit under
under subsection (mm)                subdivision thirty-nine of

A. 3983                             6

                                     section two hundred ten

(XXIX) Credit for rehabilitation     Amount of credit under
of historic properties               subdivision forty of
under subsection (oo)                [subsection] SECTION
                                     two hundred ten

(XXX) Credit for companies who       Amount of credit under
provide transportation               subdivision forty of
to individuals                       section two hundred ten
with disabilities
under subsection (oo)

(XXXI) COLLEGE TO WORK PROGRAM       AMOUNT OF CREDIT UNDER
CREDIT UNDER SUBSECTION (S-1)        SUBDIVISION TWENTY-TWO-A
                                     OF SECTION TWO HUNDRED TEN

  S  3. Section 606 of the tax law is amended by adding a new subsection
(s-1) to read as follows:
  (S-1) CREDIT FOR COLLEGE TO WORK PROGRAM. (1) ALLOWANCE OF  CREDIT.  A
TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE COMPUTED AS HEREINAFTER
PROVIDED, AGAINST THE TAX IMPOSED  BY  THIS  ARTICLE,  BASED  UPON  SUCH
TAXPAYER'S  PAYMENT  OF TUITION TO AN INSTITUTION OF HIGHER EDUCATION ON
BEHALF OF AN INDIVIDUAL IN EXCHANGE FOR THE INDIVIDUAL AGREEING TO  WORK
FOR THE TAXPAYER FOR A NUMBER OF YEARS, AS SET FORTH IN A WRITTEN AGREE-
MENT BETWEEN THE TAXPAYER AND THE INDIVIDUAL.
  (2) TUITION. FOR THE PURPOSES OF THIS CREDIT, THE TERM "TUITION" SHALL
MEAN  THE  TUITION AND FEES PAID FOR THE ENROLLMENT AND ATTENDANCE OF AN
INDIVIDUAL AT AN INSTITUTION OF HIGHER EDUCATION, AS WELL AS MONIES PAID
FOR TEXTBOOKS IN CONNECTION WITH ATTENDANCE AT AN INSTITUTION OF  HIGHER
EDUCATION.  PROVIDED,  HOWEVER,  ANY AMOUNTS WHICH HAVE BEEN PAID FOR OR
REIMBURSED BY ANY  OTHER  SCHOLARSHIPS  OR  FINANCIAL  AID,  OR  TUITION
REQUIRED  FOR  ENROLLMENT  OR ATTENDANCE IN A COURSE OF STUDY LEADING TO
THE GRANTING OF A POST BACCALAUREATE OR OTHER GRADUATE DEGREE, SHALL  BE
EXCLUDED FROM THE DEFINITION OF "TUITION".
  (3)  INSTITUTION OF HIGHER EDUCATION. FOR THE PURPOSES OF THIS CREDIT,
THE TERM "INSTITUTION OF HIGHER EDUCATION" SHALL MEAN ANY INSTITUTION OF
HIGHER EDUCATION, RECOGNIZED AND APPROVED BY THE REGENTS, OR ANY SUCCES-
SOR ORGANIZATION, OF THE UNIVERSITY OF THE STATE OF NEW YORK OR  ACCRED-
ITED  BY  A  NATIONALLY  RECOGNIZED  ACCREDITING  AGENCY  OR ASSOCIATION
ACCEPTED AS SUCH BY THE REGENTS, OR ANY SUCCESSOR ORGANIZATION,  OF  THE
UNIVERSITY  OF  THE  STATE OF NEW YORK, WHICH PROVIDES A COURSE OF STUDY
LEADING TO THE GRANTING  OF  A  POST-SECONDARY  DEGREE,  CERTIFICATE  OR
DIPLOMA.
  (4) QUALIFIED INDIVIDUAL. FOR PURPOSES OF THIS CREDIT, THE TERM "QUAL-
IFIED  INDIVIDUAL"  SHALL MEAN ANY INDIVIDUAL WHO IS NOT A SPOUSE, CHILD
OR DEPENDENT OF THE TAXPAYER OR ANY INDIVIDUAL  WHO  IS  NOT  A  SPOUSE,
CHILD OR DEPENDENT OF ANY OFFICER OR EMPLOYEE OF THE TAXPAYER.
  (5)  WRITTEN AGREEMENT. FOR PURPOSES OF THIS CREDIT, THE TERM "WRITTEN
AGREEMENT" SHALL MEAN A DOCUMENT SIGNED AND DATED BY BOTH  THE  TAXPAYER
AND THE QUALIFIED INDIVIDUAL WHICH CONTAINS PROVISIONS INCLUDING BUT NOT
LIMITED  TO THE MINIMUM SALARY WHICH THE TAXPAYER WILL PAY TO THE QUALI-
FIED INDIVIDUAL UPON COMPLETION OF THE INDIVIDUAL'S DEGREE; THE REQUIRED
DURATION OF EMPLOYMENT UPON COMPLETION OF THE INDIVIDUAL'S  DEGREE;  AND
THE  PARTIES' RESPECTIVE RESPONSIBILITIES IN THE EVENT THAT THE TAXPAYER
CEASES OPERATIONS OR LATER DECIDES NOT TO OFFER EMPLOYMENT TO THE  INDI-

A. 3983                             7

VIDUAL UPON COMPLETION OF HIS/HER DEGREE OR IN THE EVENT THAT THE QUALI-
FIED INDIVIDUAL FAILS TO COMPLETE THE DEGREE OR TO WORK FOR THE TAXPAYER
FOR THE AGREED UPON TERM.
  (6) AMOUNT OF CREDIT. NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW,
A TAXPAYER WHO PROVIDES FOR THE PAYMENT OF AN INDIVIDUAL'S TUITION UNDER
THE  COLLEGE  TO  WORK  PROGRAM ESTABLISHED BY THIS SUBSECTION, SHALL BE
ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, TO THE  EXTENT
OF TWENTY-FIVE PERCENT OF MONIES PAID FOR EACH INDIVIDUAL'S TUITION, BUT
SUCH CREDIT SHALL NOT EXCEED FIVE THOUSAND DOLLARS FOR ONE YEAR FOR EACH
SUCH QUALIFIED INDIVIDUAL.
  (7) CARRYOVER. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION
FOR  ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX AMOUNT, ANY AMOUNT
OF THE EXCESS MAY BE CARRIED OVER TO THE FOLLOWING YEAR  OR  YEARS,  AND
MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  4.  This  act  shall take effect immediately and shall apply to all
taxable years commencing after January 1, 2008; provided,  however  that
the  empire  state  film  production  credit  under subsection (gg), the
empire state commercial production credit under subsection (jj) and  the
credit  for  companies  who  provide  transportation to individuals with
disabilities under subsection  (oo)  of  section  606  of  the  tax  law
contained  in  section  two of this act shall expire on the same date as
provided in section 9 of part P of chapter 60 of the laws  of  2004,  as
amended,  section  10  of  part  V of chapter 62 of the laws of 2006, as
amended, and section 5 of chapter 522 of the laws of 2006,  as  amended,
respectively.