S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3513--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 23, 2017
                                ___________
 
 Introduced  by  Sens.  RANZENHOFER, DeFRANCISCO, FUNKE, GALLIVAN -- read
   twice and ordered printed, and when printed to  be  committed  to  the
   Committee  on  Investigations and Government Operations -- recommitted
   to the  Committee  on  Investigations  and  Government  Operations  in
   accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee
 
 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 44 to read
 as follows:
   § 44. 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 TWENTY
 AND TWO THOUSAND TWENTY-ONE 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07951-02-8
              

 S. 3513--A                          2
 
   (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 NINETEEN  AND  BEFORE  APRIL
 FIRST, TWO THOUSAND TWENTY, THAT CAUSES THE TOTAL NUMBER OF EMPLOYEES TO
 INCREASE  ABOVE BASE EMPLOYMENT OR CREDIT EMPLOYMENT, WHICHEVER IS HIGH-
 ER.
   (2) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND EIGHTEEN.
   (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 ONE OR MORE NEW EMPLOYEES FOR WHICH A
 CREDIT WAS EARNED LEAVES THE PAYROLL DURING THE SAME TAXABLE  YEAR  THAT
 AN  INDIVIDUAL  IS  HIRED BY THE TAXPAYER TO WORK IN THIS STATE, CAUSING
 THE TAXPAYER'S TOTAL EMPLOYMENT TO EQUAL AN AMOUNT THAT  IS  ABOVE  BASE
 EMPLOYMENT  BUT AT OR BELOW THE COMPUTED CREDIT EMPLOYMENT FOR THE TAXA-
 BLE YEAR, THE CREDIT ELIGIBILITY PERIOD FOR THE INDIVIDUAL HIRED  DURING
 THE  TAXABLE YEAR SHALL BE THREE YEARS MINUS THE AMOUNT OF TIME (ROUNDED
 TO THE NEXT FULL MONTH) THAT THE TAXPAYER 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.
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:
   53. HIRE-NOW TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER  WILL  BE
 ALLOWED  A  CREDIT,  TO BE COMPUTED AS PROVIDED IN SECTION FORTY-FOUR 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 PARAGRAPH (D)  OF  SUBDIVI-
 SION  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.
   §  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-FOUR 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.
   §  4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
 follows:

 S. 3513--A                          3
 
 (XLIV) HIRE-NOW TAX CREDIT              AMOUNT OF CREDIT UNDER
 UNDER SUBSECTION (CCC)                  SUBDIVISION FIFTY-THREE OF
                                         SECTION TWO HUNDRED TEN-B
   § 5. This act shall take effect immediately.