S T A T E   O F   N E W   Y O R K
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     S. 5545                                                  A. 7475
 
                        2019-2020 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                                May 6, 2019
                                ___________
 
 IN SENATE -- Introduced by Sen. ADDABBO -- read twice and ordered print-
   ed,  and  when  printed to be committed to the Committee on Budget and
   Revenue
 
 IN ASSEMBLY -- Introduced by M.  of  A.  CUSICK,  LUPARDO,  BLANKENBUSH,
   COLTON,  WEPRIN, STERN, WALSH -- read once and referred to the Commit-
   tee on Ways and Means

 AN ACT to amend the tax law and the labor law, in relation to establish-
   ing a small  business  tax  credit  for  the  employment  of  disabled
   persons;  and providing for the repeal of such provisions upon expira-
   tion thereof
 
   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 54 to read as follows:
   54. SMALL BUSINESS  TAX  CREDIT;  DISABLED  PERSONS.  (A)  GENERAL.  A
 TAXPAYER WHO HAS ONE HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CRED-
 IT,  TO  BE  COMPUTED  AS  PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX
 IMPOSED BY THIS ARTICLE FOR EACH DISABLED PERSON HIRED DURING A  TAXABLE
 YEAR,  PROVIDED  THAT  SUCH  DISABLED PERSON IS EMPLOYED FOR THIRTY-FIVE
 HOURS OR MORE PER WEEK, REMAINS IN THE EMPLOY OF SUCH TAXPAYER  FOR  SIX
 MONTHS  OR  MORE  AND THE EMPLOYER SUBMITS VERIFICATION THAT THE CLAIMED
 EMPLOYEES MEET THE STATUTORY DEFINITION OF "DISABLED PERSON" PURSUANT TO
 PARAGRAPH (D) OF THIS SUBDIVISION.
   (B) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL  EQUAL
 FIVE  THOUSAND  DOLLARS  PER  HIRED DISABLED PERSON BUT SHALL NOT EXCEED
 TWENTY-FIVE THOUSAND DOLLARS.
   (C) CARRYOVERS.  THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION  FOR  ANY
 TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
 AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D) OF SUBDIVISION ONE OF SECTION TWO
 HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT  ALLOWABLE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10946-03-9

 S. 5545                             2                            A. 7475
 
 UNDER  THIS  SUBDIVISION  FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH
 AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE  FIXED  DOLLAR
 MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
 MAY  BE  CARRIED  OVER  TO THE FOLLOWING THREE YEARS AND MAY BE DEDUCTED
 FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   (D) DEFINITIONS. AS USED  IN  THIS  SUBDIVISION,  THE  TERM  "DISABLED
 PERSON"  SHALL MEAN A RESIDENT OF THE STATE WHO HAS ANY PHYSICAL, MENTAL
 OR MEDICAL IMPAIRMENT RESULTING FROM ANATOMICAL, PHYSIOLOGICAL,  GENETIC
 OR NEUROLOGICAL CONDITIONS WHICH PREVENTS THE EXERCISE OF A NORMAL BODI-
 LY FUNCTION OR IS DEMONSTRABLE BY MEDICALLY ACCEPTED CLINICAL OR LABORA-
 TORY DIAGNOSTIC TECHNIQUES.
   (E)  AGGREGATE  AMOUNT.  THE  AGGREGATE  AMOUNT OF TAX CREDITS ALLOWED
 PURSUANT TO THE AUTHORITY OF THIS SUBDIVISION AND  SUBSECTION  (KKK)  OF
 SECTION  SIX  HUNDRED  SIX OF THIS CHAPTER SHALL BE FIVE MILLION DOLLARS
 EACH YEAR.  SUCH AGGREGATE AMOUNTS OF CREDITS SHALL BE ALLOCATED BY  THE
 COMMISSIONER.    IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED FOR IN
 ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF TAX CREDITS  ALLOWED
 FOR SUCH YEAR UNDER THIS SECTION, SUCH EXCESS SHALL BE TREATED AS HAVING
 BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT YEAR.
   (F)  CLAIM  OF  CREDIT.  A TAXPAYER SHALL NOT BE ALLOWED TO CLAIM THIS
 CREDIT TO THE EXTENT THE BASIS OF THE CALCULATION  OF  THIS  CREDIT  HAS
 BEEN CLAIMED FOR ANOTHER TAX CREDIT UNDER THIS CHAPTER.
   §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding  a  new  clause  (xlv)  to  read  as
 follows:
 (XLV) SMALL BUSINESS TAX CREDIT;     AMOUNT OF CREDIT UNDER
 DISABLED PERSONS UNDER               SUBDIVISION FIFTY-FOUR
 SUBSECTION (KKK)                     OF SECTION TWO HUNDRED
                                      TEN-B
   § 3.  Section 606 of the tax law is amended by adding a new subsection
 (kkk) to read as follows:
   (KKK)  SMALL  BUSINESS  TAX  CREDIT;  DISABLED PERSONS. (1) GENERAL. A
 TAXPAYER WHO HAS ONE HUNDRED EMPLOYEES OR LESS, SHALL BE ALLOWED A CRED-
 IT, TO BE COMPUTED AS PROVIDED  IN  THIS  SUBSECTION,  AGAINST  THE  TAX
 IMPOSED  BY THIS ARTICLE FOR EACH DISABLED PERSON HIRED DURING A TAXABLE
 YEAR, PROVIDED THAT SUCH DISABLED PERSON  IS  EMPLOYED  FOR  THIRTY-FIVE
 HOURS  OR  MORE PER WEEK, REMAINS IN THE EMPLOY OF SUCH TAXPAYER FOR SIX
 MONTHS OR MORE AND THE EMPLOYER SUBMITS VERIFICATION  THAT  THE  CLAIMED
 EMPLOYEES  HAVE MET THE STATUTORY DEFINITION OF "DISABLED PERSON" PURSU-
 ANT TO PARAGRAPH FOUR OF THIS SUBSECTION.
   (2) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL  EQUAL
 FIVE  THOUSAND  DOLLARS  PER  HIRED DISABLED PERSON BUT SHALL NOT EXCEED
 TWENTY-FIVE THOUSAND DOLLARS.
   (3) CARRYOVERS.  THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION  FOR  ANY
 TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE
 AMOUNT  PRESCRIBED  IN  PARAGRAPH  (D) OF SUBDIVISION ONE OF SECTION TWO
 HUNDRED TEN OF THIS ARTICLE. HOWEVER, IF THE AMOUNT OF CREDIT  ALLOWABLE
 UNDER  THIS  SUBDIVISION  FOR  ANY  TAXABLE YEAR REDUCES THE TAX TO SUCH
 AMOUNT OR IF THE TAXPAYER OTHERWISE PAYS TAX BASED ON THE  FIXED  DOLLAR
 MINIMUM AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR
 MAY  BE  CARRIED  OVER  TO THE FOLLOWING THREE YEARS AND MAY BE DEDUCTED
 FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
   (4) DEFINITIONS. AS  USED  IN  THIS  SUBSECTION,  THE  TERM  "DISABLED
 PERSON"  SHALL MEAN A RESIDENT OF THE STATE WHO HAS ANY PHYSICAL, MENTAL
 OR MEDICAL IMPAIRMENT RESULTING FROM ANATOMICAL, PHYSIOLOGICAL,  GENETIC
 OR NEUROLOGICAL CONDITIONS WHICH PREVENTS THE EXERCISE OF A NORMAL BODI-

 S. 5545                             3                            A. 7475
 
 LY FUNCTION OR IS DEMONSTRABLE BY MEDICALLY ACCEPTED CLINICAL OR LABORA-
 TORY DIAGNOSTIC TECHNIQUES.
   (5)  AGGREGATE  AMOUNT.  THE  AGGREGATE  AMOUNT OF TAX CREDITS ALLOWED
 PURSUANT TO THE AUTHORITY OF THIS SUBSECTION AND SUBDIVISION  FIFTY-FOUR
 OF  SECTION  TWO  HUNDRED  TEN-B  OF  THIS CHAPTER SHALL BE FIVE MILLION
 DOLLARS EACH YEAR. SUCH AGGREGATE AMOUNTS OF CREDITS SHALL BE  ALLOCATED
 BY  THE  COMMISSIONER.  IF THE TOTAL AMOUNT OF ALLOCATED CREDITS APPLIED
 FOR IN ANY PARTICULAR YEAR EXCEEDS THE AGGREGATE AMOUNT OF  TAX  CREDITS
 ALLOWED  FOR  SUCH YEAR UNDER THIS SECTION, SUCH EXCESS SHALL BE TREATED
 AS HAVING BEEN APPLIED FOR ON THE FIRST DAY OF THE SUBSEQUENT YEAR.
   (6) CLAIM OF CREDIT. A TAXPAYER SHALL NOT BE  ALLOWED  TO  CLAIM  THIS
 CREDIT  TO  THE  EXTENT  THE BASIS OF THE CALCULATION OF THIS CREDIT HAS
 BEEN CLAIMED FOR ANOTHER TAX CREDIT UNDER THIS CHAPTER.
   § 4. The labor law is amended by adding a new section 25-d to read  as
 follows:
   § 25-D. POWER TO ADMINISTER THE SMALL BUSINESS TAX CREDIT FOR DISABLED
 PERSONS TAX CREDIT PROGRAM. (A) THE COMMISSIONER IS AUTHORIZED TO ESTAB-
 LISH  AND  ADMINISTER THE SMALL BUSINESS TAX CREDIT FOR DISABLED PERSONS
 TO PROVIDE TAX INCENTIVES TO  SMALL  BUSINESS  EMPLOYERS  FOR  EMPLOYING
 INDIVIDUALS  WITH  DISABILITIES. THE COMMISSIONER IS AUTHORIZED TO ALLO-
 CATE UP TO FIVE MILLION DOLLARS OF TAX CREDITS ANNUALLY.
   (B) DEFINITIONS. (1) THE TERM "QUALIFIED EMPLOYER" MEANS  AN  EMPLOYER
 THAT  HAS BEEN CERTIFIED BY THE COMMISSIONER TO PARTICIPATE IN THE SMALL
 BUSINESS TAX CREDIT FOR DISABLED PERSONS TAX  CREDIT  PROGRAM  AND  THAT
 EMPLOYS ONE OR MORE QUALIFIED EMPLOYEES.
   (2) THE TERM "QUALIFIED EMPLOYEE" MEANS AN INDIVIDUAL:
   (I)  WHO HAS ANY PHYSICAL, MENTAL OR MEDICAL IMPAIRMENT RESULTING FROM
 ANATOMICAL, PHYSIOLOGICAL,  GENETIC  OR  NEUROLOGICAL  CONDITIONS  WHICH
 PREVENTS  THE EXERCISE OF A NORMAL BODILY FUNCTION OR IS DEMONSTRABLE BY
 MEDICALLY ACCEPTED CLINICAL OR LABORATORY DIAGNOSTIC TECHNIQUES;
   (II) WHO HAS WORKED FOR THE QUALIFIED EMPLOYER IN A FULL-TIME OR PART-
 TIME POSITION THAT PAYS WAGES THAT ARE EQUIVALENT TO THE WAGES PAID  FOR
 SIMILAR  JOBS, WITH APPROPRIATE ADJUSTMENTS FOR EXPERIENCE AND TRAINING,
 AND FOR WHICH NO OTHER  EMPLOYEE  HAS  BEEN  TERMINATED,  OR  WHERE  THE
 EMPLOYER  HAS  NOT OTHERWISE REDUCED ITS WORKFORCE BY INVOLUNTARY TERMI-
 NATIONS WITH THE INTENTION OF FILLING THE  VACANCY  BY  CREATING  A  NEW
 HIRE;
   (III)  WHO  HAS  NOT  WORKED  FOR  AN  ENTITY RELATED TO THE QUALIFIED
 EMPLOYER IN THE PAST TWENTY-FOUR MONTHS; AND
   (IV) IS EMPLOYED IN NEW YORK AT A LOCATION IN NEW YORK STATE.
   (C) A QUALIFIED EMPLOYER SHALL BE ENTITLED TO A TAX  CREDIT.  THE  TAX
 CREDITS  SHALL  BE  CLAIMED  BY  THE  QUALIFIED EMPLOYER AS SPECIFIED IN
 SUBDIVISION FIFTY-FOUR OF SECTION TWO HUNDRED TEN-B AND SUBSECTION (KKK)
 OF SECTION SIX HUNDRED SIX OF THE TAX LAW.
   (D) TO PARTICIPATE IN THE  SMALL  BUSINESS  TAX  CREDIT  FOR  DISABLED
 PERSONS TAX CREDIT PROGRAM, AN EMPLOYER MUST SUBMIT AN APPLICATION (IN A
 FORM  PRESCRIBED  BY  THE COMMISSIONER) TO THE COMMISSIONER. THE COMMIS-
 SIONER SHALL ESTABLISH GUIDELINES THAT SPECIFY REQUIREMENTS FOR  EMPLOY-
 ERS  TO  PARTICIPATE  IN  THE  PROGRAM INCLUDING CRITERIA FOR CERTIFYING
 QUALIFIED EMPLOYEES. ANY REGULATIONS THAT  THE  COMMISSIONER  DETERMINES
 ARE  NECESSARY  MAY  BE  ADOPTED  ON  AN EMERGENCY BASIS NOTWITHSTANDING
 ANYTHING TO THE CONTRARY IN SECTION TWO HUNDRED TWO OF THE STATE  ADMIN-
 ISTRATIVE  PROCEDURE  ACT.  SUCH  REQUIREMENTS  MAY INCLUDE THE TYPES OF
 INDUSTRIES THAT THE EMPLOYERS ARE ENGAGED IN.
   (E) IF, AFTER REVIEWING THE APPLICATION SUBMITTED BY AN EMPLOYER,  THE
 COMMISSIONER DETERMINES THAT SUCH EMPLOYER IS ELIGIBLE TO PARTICIPATE IN

 S. 5545                             4                            A. 7475
 
 THE  SMALL  BUSINESS TAX CREDIT FOR DISABLED PERSONS TAX CREDIT PROGRAM,
 THE COMMISSIONER SHALL ISSUE THE EMPLOYER A PRELIMINARY  CERTIFICATE  OF
 ELIGIBILITY  THAT  ESTABLISHES THE EMPLOYER AS A QUALIFIED EMPLOYER. THE
 CERTIFICATE  OF  ELIGIBILITY  SHALL  SPECIFY THE MAXIMUM AMOUNT OF SMALL
 BUSINESS TAX CREDIT FOR DISABLED  PERSONS  THAT  THE  EMPLOYER  WILL  BE
 ALLOWED  TO  CLAIM. AT THE END OF THE TAXABLE YEAR, A QUALIFIED EMPLOYER
 MUST OBTAIN A FINAL CERTIFICATE OF ELIGIBILITY FROM THE COMMISSIONER  TO
 FILE  WITH  A  RETURN  CLAIMING  THE  CREDIT. THE FINAL CERTIFICATE MUST
 CONTAIN THE CERTIFICATE'S TAXABLE YEAR TO WHICH THE CREDIT APPLIES,  THE
 MAXIMUM  AMOUNT OF THE CREDIT ALLOWED, THE QUALIFIED EMPLOYER'S NAME AND
 EMPLOYER IDENTIFICATION NUMBER, THE EMPLOYER'S  BUSINESS  ADDRESS  WHERE
 THE  CLAIMED  EMPLOYEES  WERE  EMPLOYED,  THE SOCIAL SECURITY NUMBERS OF
 CLAIMED EMPLOYEES AND THEIR HIRE  AND  TERMINATION  DATES,  VERIFICATION
 THAT  THE CLAIMED EMPLOYEES HAVE MET THE STATUTORY DEFINITION OF "QUALI-
 FIED EMPLOYEE", AND EACH EMPLOYEE'S TOTAL  HOURS  WORKED  EACH  QUARTER,
 HOURLY WAGE, AND FULL-TIME OR PART-TIME STATUS.
   § 5. This act shall take effect immediately and shall apply to taxable
 years  beginning  on  or  after  January 1, 2020 and shall expire and be
 deemed repealed December 31, 2025.