S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5140
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 25, 2021
                                ___________
 
 Introduced  by  Sen.  RATH  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 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 45 to  read
 as follows:
   §  45. 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-
 THREE AND TWO THOUSAND TWENTY-FOUR IF A NEW EMPLOYEE WAS RECEIVING UNEM-
 PLOYMENT  INSURANCE  BENEFITS  AT  THE TIME OF HIRE, AN ADDITIONAL THREE
 THOUSAND DOLLAR CREDIT WILL BE  ALLOWED  FOR  THE  FIRST  FULL  YEAR  OF
 EMPLOYMENT.
   (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 TWENTY-TWO AND BEFORE APRIL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10018-01-1

 S. 5140                             2
 
 FIRST, TWO THOUSAND  TWENTY-THREE,  THAT  CAUSES  THE  TOTAL  NUMBER  OF
 EMPLOYEES TO INCREASE ABOVE BASE EMPLOYMENT OR CREDIT EMPLOYMENT, WHICH-
 EVER IS HIGHER.
   (2) "BASE YEAR" SHALL MEAN CALENDAR YEAR TWO THOUSAND TWENTY-ONE.
   (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 55 to read as follows:
   55.  HIRE-NOW  TAX CREDIT. (A) ALLOWANCE OF CREDIT. A TAXPAYER WILL BE
 ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  SECTION  FORTY-FIVE  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
 (kkk) to read as follows:
   (KKK) HIRE-NOW TAX CREDIT. (1) A TAXPAYER WILL BE ALLOWED A CREDIT, TO
 THE EXTENT ALLOWED UNDER SECTION FORTY-FIVE 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 (xlvi) to read as
 follows:
 (XLVI) HIRE-NOW TAX CREDIT              AMOUNT OF CREDIT UNDER
 UNDER SUBSECTION (KKK)                  SUBDIVISION FIFTY-FIVE OF
                                         SECTION TWO HUNDRED TEN-B
   § 5. This act shall take effect immediately.