S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    541
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  Sens.  AKSHAR, GALLIVAN, HELMING, ROBACH, SEWARD -- 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 establishing a job creation
   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. JOB CREATION TAX CREDIT. (A) ALLOWANCE OF CREDIT.   FOR  TAXABLE
 YEARS  BEGINNING  ON  OR  AFTER  JANUARY  FIRST,  TWO THOUSAND TWENTY, A
 TAXPAYER SUBJECT TO TAX UNDER ARTICLE NINE-A OR TWENTY-TWO OF THIS CHAP-
 TER SHALL BE ALLOWED A CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN  THIS
 SECTION,  AGAINST  THE TAX IMPOSED BY THIS ARTICLE, FOR EACH NET NEW JOB
 CREATED, FOR EACH QUALIFIED EMPLOYEE WITHIN THE STATE. THE TAXPAYER  MAY
 CLAIM  THE  CREDIT IN THE YEAR IN WHICH THE QUALIFIED EMPLOYEE COMPLETES
 SIX MONTHS OF EMPLOYMENT. A TAXPAYER MAY ONLY CLAIM THE CREDIT ONCE  FOR
 EACH QUALIFIED EMPLOYEE AND MAY ONLY CLAIM A TAX CREDIT FOR A MAXIMUM OF
 THIRTY  QUALIFIED EMPLOYEES IN EACH TAXABLE YEAR. IF THE TAXPAYER CLAIMS
 THE CREDIT ALLOWED UNDER THIS SECTION, THE  TAXPAYER  MAY  NOT  USE  THE
 HIRING  OF A QUALIFIED EMPLOYEE THAT IS THE BASIS FOR THIS CREDIT IN THE
 BASIS OF ANY OTHER CREDIT ALLOWED UNDER THIS ARTICLE.
   (B) QUALIFIED EMPLOYEE. A QUALIFIED  EMPLOYEE  IS  AN  INDIVIDUAL  WHO
 COMMENCES  EMPLOYMENT  BY  THE  QUALIFIED  TAXPAYER  ON OR AFTER JANUARY
 FIRST, TWO THOUSAND TWENTY.
   (C) NET NEW JOB. "NET NEW JOB" MEANS JOBS CREATED IN THIS  STATE  THAT
 (1)  ARE NEW TO THE STATE, (2) HAVE NOT BEEN TRANSFERRED FROM EMPLOYMENT
 WITH ANOTHER BUSINESS THAT IS A RELATED PERSON, (3) ARE EITHER FULL-TIME
 WAGE-PAYING JOBS OR EQUIVALENT TO A FULL-TIME WAGE-PAYING JOB  REQUIRING
 AT  LEAST  THIRTY-FIVE  HOURS PER WEEK, AND (4) ARE FILLED FOR MORE THAN
 SIX MONTHS.
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02309-01-9

 S. 541                              2
 
   (D) EMPLOYER PROHIBITION. AN EMPLOYER SHALL NOT DISCHARGE AN  EMPLOYEE
 AND  HIRE A QUALIFYING EMPLOYEE SOLELY FOR THE PURPOSE OF QUALIFYING FOR
 THIS CREDIT.
   (E) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE SIX PERCENT OF
 THE  TOTAL  AMOUNT  OF  WAGES  PAID TO THE QUALIFIED EMPLOYEE DURING THE
 EMPLOYEE'S FIRST SIX MONTHS OF EMPLOYMENT. PROVIDED, HOWEVER,  THAT,  IF
 THE  QUALIFIED EMPLOYEE WAS RECEIVING UNEMPLOYMENT INSURANCE BENEFITS AT
 THE TIME OF HIRE FOR A MINIMUM OF THIRTEEN WEEKS OR IS EMPLOYED DIRECTLY
 IN THE MANUFACTURING PROCESS IN AN ELIGIBLE INDUSTRY, THE AMOUNT OF  THE
 CREDIT  SHALL BE TWELVE PERCENT OF THE TOTAL AMOUNT OF WAGES PAID TO THE
 QUALIFIED EMPLOYEE DURING THE EMPLOYEE'S FIRST SIX MONTHS OF EMPLOYMENT.
 THE CREDIT ALLOWED PURSUANT TO THIS SUBDIVISION SHALL NOT EXCEED IN  ANY
 TAXABLE YEAR, SEVEN HUNDRED FIFTY DOLLARS FOR ANY QUALIFIED EMPLOYEE AND
 ONE  THOUSAND  FIVE  HUNDRED  DOLLARS FOR ANY QUALIFIED EMPLOYEE WHO WAS
 RECEIVING UNEMPLOYMENT INSURANCE BENEFITS AT THE  TIME  OF  HIRE  FOR  A
 MINIMUM OF THIRTEEN WEEKS OR WHO IS EMPLOYED DIRECTLY IN THE MANUFACTUR-
 ING PROCESS IN AN ELIGIBLE INDUSTRY.
   (F)  ELIGIBLE INDUSTRY. AN ELIGIBLE INDUSTRY IS A BUSINESS PRINCIPALLY
 ENGAGED IN THE PRODUCTION OF GOODS BY MANUFACTURING, PROCESSING,  ASSEM-
 BLING, REFINING, MINING, EXTRACTING, FARMING, AGRICULTURE, HORTICULTURE,
 FLORICULTURE, VITICULTURE OR COMMERCIAL FISHING.
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 53 to read as follows:
   53. JOB CREATION 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
 (jjj) to read as follows:
   (JJJ)  JOB CREATION TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED A CRED-
 IT, TO THE EXTENT ALLOWED UNDER  SECTION  FORTY-FOUR  OF  THIS  CHAPTER,
 AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (2)  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:
 (XLIV) JOB CREATION TAX CREDIT          AMOUNT OF CREDIT UNDER
 UNDER SUBSECTION (JJJ)                  SUBDIVISION FIFTY-THREE OF SECTION
                                         TWO HUNDRED TEN-B
   § 5. This act shall take effect immediately and shall apply to taxable
 years beginning on or after January 1, 2020.