S T A T E   O F   N E W   Y O R K
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                                  6589

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             March 27, 2015
                               ___________

Introduced  by M. of A. CRESPO -- Multi-Sponsored by -- M. of A. ARROYO,
  MOYA, RAMOS, RIVERA, RODRIGUEZ  --  read  once  and  referred  to  the
  Committee on Ways and Means

AN  ACT to amend the tax law, in relation to establishing a hire-now tax
  credit

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

  Section  1.  The tax law is amended by adding a new section 42 to read
as follows:
  S 42. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER,  WHICH
IS SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAPTER AND
WHICH CREATES A NEW JOB, SHALL BE ALLOWED A CREDIT AGAINST SUCH TAX. THE
AMOUNT  OF  THE  CREDIT ALLOWED UNDER THIS SECTION SHALL BE EQUAL TO THE
PRODUCT OF 6.85 PERCENT AND THE GROSS WAGES PAID FOR EACH NEW  EMPLOYEE.
THE  CREDIT  SHALL  NOT  BE  MORE THAN FIVE THOUSAND DOLLARS FOR ANY NEW
EMPLOYEE FOR ONE FULL YEAR OF EMPLOYMENT; IF A  NEW  EMPLOYEE  HAS  BEEN
HIRED  FOR  LESS  THAN A FULL TAX YEAR THIS AMOUNT SHALL BE PRORATED AND
APPORTIONED TO EACH TAX YEAR BUT SHALL IN NO WAY DECREASE THE FULL THREE
CONSECUTIVE YEARS OF CREDIT ELIGIBILITY. THE  TAXPAYER  MAY  CLAIM  THIS
CREDIT  FOR EACH NEW EMPLOYEE FOR A PERIOD OF THREE CONSECUTIVE YEARS OF
EMPLOYMENT.  THE TAXPAYER MAY OFFSET  QUARTERLY  ESTIMATED  TAX  RETURNS
WITH THE AMOUNT OF THIS CREDIT EARNED IN ANY PREVIOUS QUARTER.
  (B)  UNEMPLOYMENT ENHANCEMENT. FOR CALENDAR YEARS TWO THOUSAND SIXTEEN
AND TWO THOUSAND SEVENTEEN IF A NEW EMPLOYEE WAS RECEIVING  UNEMPLOYMENT
INSURANCE  BENEFITS  AT  THE  TIME OF HIRE, AN ADDITIONAL THREE THOUSAND
DOLLAR CREDIT WILL BE ALLOWED FOR THE FIRST FULL YEAR OF EMPLOYMENT.
  (C) DEFINITIONS. AS USED IN THIS SECTION, THE  FOLLOWING  TERMS  SHALL
HAVE THE FOLLOWING MEANINGS:
  (1)  "NEW EMPLOYEE" SHALL MEAN ANY FULL TIME EMPLOYEE THAT IS HIRED BY
THE TAXPAYER AFTER JULY FIRST, TWO THOUSAND  FIFTEEN  AND  BEFORE  APRIL
FIRST,  TWO  THOUSAND SIXTEEN, THAT CAUSES THE TOTAL NUMBER OF EMPLOYEES

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02153-02-5
              

A. 6589                             2

TO INCREASE ABOVE BASE EMPLOYMENT OR  CREDIT  EMPLOYMENT,  WHICHEVER  IS
HIGHER.
  (2) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND FIFTEEN.
  (3)  "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.
  (4)  "CREDIT EMPLOYMENT" SHALL MEAN BASE EMPLOYMENT PLUS THE NUMBER OF
NEW EMPLOYEES FOR WHICH A CREDIT IS EARNED FOR THE PRIOR TAX YEARS.
  (D) REPLACEMENT EMPLOYEES. IF A NEW EMPLOYEE FOR WHICH  A  CREDIT  WAS
EARNED  LEAVES  THE  PAYROLL AND AN EMPLOYEE IS HIRED WHICH BRINGS TOTAL
EMPLOYMENT ABOVE BASE EMPLOYMENT  BUT  AT  OR  BELOW  CREDIT  EMPLOYMENT
LEVEL,  THE  CREDIT  ELIGIBILITY PERIOD FOR SUCH EMPLOYEE SHALL BE THREE
YEARS MINUS THE AMOUNT OF TIME (ROUNDED TO  THE  NEXT  FULL  MONTH)  THE
EMPLOYER RECEIVED THE CREDIT FOR THE DEPARTING EMPLOYEE.
  (E)  NO  CREDIT  SHALL BE ALLOWED UNDER THIS SECTION TO A TAXPAYER FOR
ANY NEW EMPLOYEE IF THE TAXPAYER CLAIMS  ANY  OTHER  CREDIT  UNDER  THIS
ARTICLE FOR SUCH NEW EMPLOYEE WHERE THE BASIS OF SUCH OTHER CREDIT IS AN
INCREASE IN EMPLOYMENT.
  S  2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
  49. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER  WILL  BE
ALLOWED  A  CREDIT,  TO  BE COMPUTED AS PROVIDED IN SECTION FORTY-TWO OF
THIS CHAPTER, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
  (B) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY  TAXABLE  YEAR MAY NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND  (D)  OF
SUBDIVISION  ONE OF SECTION TWO HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF
THE AMOUNT OF CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR
REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE
IN SUCH TAXABLE YEAR WILL BE TREATED AS AN  OVERPAYMENT  OF  TAX  TO  BE
CREDITED  OR  REFUNDED  IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE
THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,  THE  PROVISIONS
OF  SUBSECTION  (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER
NOTWITHSTANDING, NO INTEREST WILL BE PAID THEREON.
  S 3. Section 606 of the tax law is amended by adding a new  subsection
(ccc) to read as follows:
  (CCC) HIRE-NOW TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED A CREDIT, TO
THE  EXTENT ALLOWED UNDER SECTION FORTY-TWO OF THIS CHAPTER, AGAINST THE
TAX IMPOSED BY THIS ARTICLE.
  (2) APPLICATION OF CREDIT. IF THE AMOUNT OF THE CREDIT  ALLOWED  UNDER
THIS SUBSECTION FOR ANY TAXABLE YEAR EXCEEDS THE TAXPAYER'S TAX FOR SUCH
YEAR, THE EXCESS WILL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED
OR  REFUNDED  IN  ACCORDANCE  WITH THE PROVISIONS OF SECTION SIX HUNDRED
EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST WILL  BE
PAID THEREON.
  S  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding  a  new  clause  (xli)  to  read  as
follows:
(XLI) HIRE-NOW TAX CREDIT               AMOUNT OF CREDIT UNDER
UNDER SUBSECTION (CCC)                  SUBDIVISION FORTY-NINE OF SECTION
                                        TWO HUNDRED TEN-B
  S 5. This act shall take effect immediately.