NY State Senate Bill 2019-S4857

Senate Bill S4857

2019-2020 Legislative Session

Creates a jobs development incentive income tax credit available to employers who employ individuals previously receiving unemployment

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Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to budget and revenue
Mar 27, 2019	referred to budget and revenue

co-Sponsors

2019-S4857 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S5264
2011-2012: S3999
2013-2014: S2117
2015-2016: S3701
2017-2018: S3783
2021-2022: S5141
2023-2024: S4841

2019-S4857 (ACTIVE) - Summary

Creates a job development incentive income tax credit available to employers who employ individuals previously receiving unemployment.

2019-S4857 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4857

SPONSOR: RANZENHOFER
 
TITLE OF BILL:  An act to amend the tax law, in relation to a jobs
development incentive income tax credit available to employers who
employ individuals previously receiving unemployment benefits


 
PURPOSE:

This bill would give incentives, through income tax credits, to busi-
nesses who hire individuals currently receiving unemployment benefits.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1- amends Tax Law Section 210-B relating to franchise taxes on
business corporations, to add a new subdivision 53 granting an employ-
ment incentive tax credit. The credit is in the amount of $2,400 for
each creditable employee, as defined in the section.

Section 2 - amends Tax Law Section 606, relating to personal income

taxes, by adding a new subsection (ccc) granting an employee incentive
tax credit in the amount of $2,400 per creditable employee, as defined
in the section.

Section 3 - amends subparagraph (B) of paragraph 1 of subsection (i) of
Section 606 of the Tax Law, relating to S corporations, by adding a new
clause (xliv) providing for an employment incentive tax credit under
subsection (xx) in the amount of the credit under subdivision 53 of
Section 210-B.

Section 4 - Effective date.

 
CURRENT LAW:

There are many tax credits available to individuals and businesses to
promote activities that benefit the state economy.

 
JUSTIFICATION:

The economic meltdown that has engulfed the world's economy has left
businesses in New York struggling to survive, and tens of thousands of
workers on unemployment. The state needs to act to help employers and to
return unemployed individuals to work. This bill accomplishes both of
these purposes. The bill offers incentives to employers to rehire work-
ers who have lost their jobs and are on unemployment.

 
HIRE UNEMPLOYED TAX INCENTIVE

This bill offers tax credits of up to $2,400 per employee to employers,
whether corporate, individual or an S corporation, for hiring unemployed
persons who meet specified criteria. Both of these credits offer an
additional incentive to employers to take the risk and increase their
workforce.

This bill offers meaningful incentive to hire new employees from the
ranks of the unemployed, and offers new employment opportunity to indi-
viduals.

 
FISCAL IMPLICATIONS:

To be determined.

 
LEGISLATIVE HISTORY:

2009-10 - S.5264-B/A.10085-B -- LABOR/Labor
2011-12 - S.3999-A/A.10121 - PASSED SENATE/Labor
2013-14 - S.2117-B/A.806-B - INVESTIGATIONS/Labor
2015-16 - S.3701/A.6538 - INVESTIGATIONS/Labor
2017 - S.3783/A.6133 - INVESTIGATIONS/Labor
2018 - S.3783-A/A.6133-A - INVESTIGATIONS/Labor

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S4857 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4857
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 27, 2019
                                ___________
 
 Introduced  by Sens. RANZENHOFER, FUNKE -- read twice and ordered print-
   ed, and when printed to be committed to the Committee  on  Budget  and
   Revenue
 
 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 53 to read as follows:
   53.  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.

                                                            LBD10280-02-9

 S. 4857                             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 NINETEEN.
   (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.
   §  2. Section 606 of the tax law is amended by adding a new subsection
 (jjj) to read as follows:
   (JJJ) 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. 4857                             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 NINETEEN.
   (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.
   §  3. 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:
 (XLIV) JOBS DEVELOPMENT INCENTIVE    AMOUNT OF CREDIT UNDER
 TAX CREDIT UNDER SUBSECTION (JJJ)    SUBDIVISION FIFTY-THREE OF SECTION
                                      TWO HUNDRED TEN-B OF THIS CHAPTER
   § 4. This act shall take effect immediately.

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Senate Bill S4857

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Sponsored By

Michael H. Ranzenhofer