S T A T E   O F   N E W   Y O R K
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                                  3701

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 17, 2015
                               ___________

Introduced  by  Sen.  RANZENHOFER -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government Operations

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-B of the tax law is amended  by  adding  a  new
subdivision 49 to read as follows:
  49.  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 UNEMPLOYMENT COMPENSATION BENEFITS AS OF
THE DATE OF EMPLOYMENT; 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;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05610-01-5
              

S. 3701                             2

  (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 ELEVEN.
  (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
(ccc) to read as follows:
  (CCC) 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 UNEMPLOYMENT COMPENSATION BENEFITS AS OF
THE DATE OF EMPLOYMENT; 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.

S. 3701                             3

  (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 ELEVEN.
  (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  (xli)  to  read  as
follows:
(XLI) JOBS DEVELOPMENT INCENTIVE     AMOUNT OF CREDIT UNDER
TAX CREDIT UNDER SUBSECTION (CCC)    SUBDIVISION FORTY-NINE OF SECTION
                                     TWO HUNDRED TEN-B OF THIS CHAPTER
  S 4. This act shall take effect immediately.