S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1755
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 20, 2023
                                ___________
 
 Introduced  by M. of A. GOODELL -- read once and referred to the Commit-
   tee on Ways and Means
 
 AN ACT to amend the tax law, in relation to establishing a first  perma-
   nent payroll employee tax credit
 
   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 59 to read as follows:
   59.  FIRST  PERMANENT PAYROLL EMPLOYEE CREDIT. (A) GENERAL. A TAXPAYER
 SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN  THIS  SUBDIVI-
 SION,  AGAINST  THE TAX IMPOSED BY THIS ARTICLE FOR THE FIRST FULL-TIME,
 PERMANENT EMPLOYEE SUCH TAXPAYER EMPLOYS, PROVIDED THAT SUCH  FULL-TIME,
 PERMANENT  EMPLOYEE IS ACCOUNTED FOR ON SUCH TAXPAYER'S EMPLOYER PAYROLL
 RECORDS. SUCH CREDIT SHALL BE AVAILABLE FOR  EACH  OF  THE  THREE  YEARS
 SUCCEEDING  THE DATE A TAXPAYER EMPLOYS THEIR FIRST FULL-TIME, PERMANENT
 EMPLOYEE.
   (B) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SUBDIVISION SHALL BE
 EQUAL TO:
   (1) IN THE FIRST YEAR, TWENTY-FIVE PERCENT OF THE TOTAL COST TO EMPLOY
 A FULL-TIME, PERMANENT EMPLOYEE, WHEN SUCH EMPLOYEE IS ACCOUNTED FOR  ON
 AN  EMPLOYER'S  PAYROLL  RECORDS  AND  IS THE FIRST FULL-TIME, PERMANENT
 EMPLOYEE SUCH TAXPAYER HAS HIRED;
   (2) IN THE SECOND YEAR, TWENTY PERCENT OF THE TOTAL COST TO  EMPLOY  A
 FULL-TIME, PERMANENT EMPLOYEE, WHEN SUCH EMPLOYEE IS ACCOUNTED FOR ON AN
 EMPLOYER'S PAYROLL RECORDS AND IS THE FIRST FULL-TIME, PERMANENT EMPLOY-
 EE SUCH TAXPAYER HAS HIRED; AND
   (3) IN THE THIRD YEAR, TEN PERCENT OF THE TOTAL COST TO EMPLOY A FULL-
 TIME,  PERMANENT  EMPLOYEE,  WHEN  SUCH  EMPLOYEE IS ACCOUNTED FOR ON AN
 EMPLOYER'S PAYROLL RECORDS AND IS THE FIRST FULL-TIME, PERMANENT EMPLOY-
 EE SUCH TAXPAYER HAS HIRED.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01984-01-3
 A. 1755                             2
              

 
   (C) CARRYOVERS. THE CREDIT  ALLOWED  UNDER  THIS  SUBDIVISION  MAY  BE
 CLAIMED  AND  IF NOT FULLY USED IN THE INITIAL YEAR FOR WHICH THE CREDIT
 IS CLAIMED MAY BE CARRIED OVER, IN ORDER, TO EACH OF THE TWO  SUCCEEDING
 TAXABLE YEARS. THE CREDIT AUTHORIZED BY THIS SUBDIVISION MAY NOT BE USED
 TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO.
   (D) DEFINITIONS. FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (1)  "TOTAL  COST  TO  EMPLOY"  SHALL MEAN BASE SALARY, NEW YORK STATE
 PAYROLL TAXES AND THE VALUE OF EMPLOYMENT BENEFITS RECEIVED.
   (2) "NEW YORK STATE PAYROLL TAXES" SHALL MEAN ALL STATE TAXES PAID  BY
 AN  EMPLOYER  FROM  SUCH  EMPLOYER'S  OWN  FUNDS AND DIRECTLY RELATED TO
 EMPLOYING AN EMPLOYEE.
   (E) AGGREGATE AMOUNT. THE AGGREGATE  AMOUNT  OF  TAX  CREDITS  ALLOWED
 PURSUANT  TO  THE  AUTHORITY OF THIS SUBDIVISION AND SUBSECTION (OOO) OF
 SECTION SIX HUNDRED SIX OF THIS CHAPTER SHALL BE FIFTEEN 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.  (1) TAXPAYERS SHALL BE ELIGIBLE TO CLAIM SUCH
 CREDIT BEGINNING IN THE FIRST  TAXABLE  YEAR  AFTER  SUCH  TAXPAYER  HAS
 EMPLOYED  THEIR FIRST FULL-TIME, PERMANENT EMPLOYEE, AS VERIFIED ON SUCH
 TAXPAYER'S PAYROLL RECORDS.
   (2) 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. Section 606 of the tax law is amended by adding a new  subsection
 (ooo) to read as follows:
   (OOO) FIRST PERMANENT PAYROLL EMPLOYEE CREDIT. (1) GENERAL. A TAXPAYER
 SHALL  BE  ALLOWED  A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED  IN  THIS
 SUBSECTION, AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR THE FIRST  FULL-
 TIME, PERMANENT EMPLOYEE SUCH TAXPAYER EMPLOYS, PROVIDED THAT SUCH FULL-
 TIME,  PERMANENT  EMPLOYEE  IS ACCOUNTED FOR ON SUCH TAXPAYER'S EMPLOYER
 PAYROLL RECORDS. SUCH CREDIT SHALL BE AVAILABLE FOR EACH  OF  THE  THREE
 YEARS  SUCCEEDING  THE  DATE  A  TAXPAYER EMPLOYS THEIR FIRST FULL-TIME,
 PERMANENT EMPLOYEE.
   (2) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SUBSECTION SHALL  BE
 EQUAL TO:
   (A) IN THE FIRST YEAR, TWENTY-FIVE PERCENT OF THE TOTAL COST TO EMPLOY
 A  FULL-TIME, PERMANENT EMPLOYEE, WHEN SUCH EMPLOYEE IS ACCOUNTED FOR ON
 AN EMPLOYER'S PAYROLL RECORDS AND  IS  THE  FIRST  FULL-TIME,  PERMANENT
 EMPLOYEE SUCH TAXPAYER HAS HIRED;
   (B)  IN  THE SECOND YEAR, TWENTY PERCENT OF THE TOTAL COST TO EMPLOY A
 FULL-TIME, PERMANENT EMPLOYEE, WHEN SUCH EMPLOYEE IS ACCOUNTED FOR ON AN
 EMPLOYER'S PAYROLL RECORDS AND IS THE FIRST FULL-TIME, PERMANENT EMPLOY-
 EE SUCH TAXPAYER HAS HIRED; AND
   (C) IN THE THIRD YEAR, TEN PERCENT OF THE TOTAL COST TO EMPLOY A FULL-
 TIME, PERMANENT EMPLOYEE, WHEN SUCH EMPLOYEE  IS  ACCOUNTED  FOR  ON  AN
 EMPLOYER'S PAYROLL RECORDS AND IS THE FIRST FULL-TIME, PERMANENT EMPLOY-
 EE SUCH TAXPAYER HAS HIRED.
   (3)  CARRYOVERS.  THE  CREDIT  ALLOWED  UNDER  THIS  SUBSECTION MAY BE
 CLAIMED AND IF NOT FULLY USED IN THE INITIAL YEAR FOR WHICH  THE  CREDIT
 IS  CLAIMED MAY BE CARRIED OVER, IN ORDER, TO EACH OF THE TWO SUCCEEDING
 TAXABLE YEARS. THE CREDIT AUTHORIZED BY THIS SUBSECTION MAY NOT BE  USED
 TO REDUCE THE TAX LIABILITY OF THE CREDIT CLAIMANT BELOW ZERO.
 A. 1755                             3
 
   (4)  DEFINITIONS. FOR PURPOSES OF THIS SUBSECTION, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (A)  "TOTAL  COST  TO  EMPLOY"  SHALL MEAN BASE SALARY, NEW YORK STATE
 PAYROLL TAXES AND THE VALUE OF EMPLOYMENT BENEFITS RECEIVED.
   (B) "NEW YORK STATE PAYROLL TAXES" SHALL MEAN ALL STATE TAXES PAID  BY
 AN  EMPLOYER  FROM  SUCH  EMPLOYER'S  OWN  FUNDS AND DIRECTLY RELATED TO
 EMPLOYING AN EMPLOYEE.
   (5) AGGREGATE AMOUNT. THE AGGREGATE  AMOUNT  OF  TAX  CREDITS  ALLOWED
 PURSUANT  TO THE AUTHORITY OF THIS SUBSECTION AND SUBDIVISION FIFTY-NINE
 OF SECTION TWO HUNDRED TEN-B OF THIS CHAPTER SHALL  BE  FIFTEEN  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) TAXPAYERS SHALL BE ELIGIBLE TO CLAIM SUCH
 CREDIT BEGINNING IN THE FIRST  TAXABLE  YEAR  AFTER  SUCH  TAXPAYER  HAS
 EMPLOYED  THEIR FIRST FULL-TIME, PERMANENT EMPLOYEE, AS VERIFIED ON SUCH
 TAXPAYER'S PAYROLL RECORDS.
   (B) 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.
   § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of the tax law is amended by adding a new clause (l) to read as follows:
 
 (L) FIRST PERMANENT PAYROLL          AMOUNT OF CREDIT  UNDER SUBDIVISION
 EMPLOYEE CREDIT UNDER SUBSECTION     FIFTY-NINE OF SECTION TWO HUNDRED
 (OOO)                                TEN-B

   § 4. This act shall take effect immediately and shall apply to taxable
 years commencing on and after January 1, 2024.