S T A T E O F N E W Y O R K
________________________________________________________________________
6378
2023-2024 Regular Sessions
I N S E N A T E
April 18, 2023
___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to job creation tax credits
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "job creation tax credit act".
§ 2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 59 to read as follows:
59. JOB CREATION TAX CREDIT. (A) AS USED IN THIS SUBDIVISION, THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (1) "FULL-TIME
EMPLOYEE" MEANS AN INDIVIDUAL WHO IS EMPLOYED FOR CONSIDERATION FOR AT
LEAST THIRTY-FIVE HOURS A WEEK, OR WHO RENDERS ANY OTHER STANDARD OF
SERVICE GENERALLY ACCEPTED BY CUSTOM OR SPECIFIED BY CONTRACT AS FULL-
TIME EMPLOYMENT.
(2) "NEW EMPLOYEE" MEANS A FULL-TIME EMPLOYEE FIRST EMPLOYED BY A
TAXPAYER IN THE PROJECT THAT IS THE SUBJECT OF THE TAX CREDIT AUTHORIZED
UNDER THIS SUBDIVISION IN THE TAXABLE YEAR IN WHICH THE TAXPAYER SEEKS
THE CREDIT. "NEW EMPLOYEE" ALSO MAY INCLUDE AN EMPLOYEE REHIRED OR
CALLED BACK FROM LAY-OFF TO WORK IN A NEW FACILITY OR ON A NEW PRODUCT
OR SERVICE ESTABLISHED OR PRODUCED BY THE TAXPAYER DURING THE TAXABLE
YEAR IN WHICH THE CREDIT IS SOUGHT. "NEW EMPLOYEE" SHALL NOT INCLUDE ANY
EMPLOYEE OF THE TAXPAYER WHO WAS PREVIOUSLY EMPLOYED IN THIS STATE BY A
RELATED MEMBER OF THE TAXPAYER AND WHOSE EMPLOYMENT WAS SHIFTED TO THE
TAXPAYER DURING THE TAXABLE YEAR IN WHICH THE CREDIT IS SOUGHT. IN ADDI-
TION, "NEW EMPLOYEE" SHALL NOT INCLUDE A CHILD, GRANDCHILD, PARENT, OR
SPOUSE, OTHER THAN A SPOUSE WHO IS LEGALLY SEPARATED FROM THE INDIVID-
UAL, OR ANY INDIVIDUAL WHO IS AN EMPLOYEE OF THE TAXPAYER AND WHO HAS A
DIRECT OR INDIRECT OWNERSHIP INTEREST OF AT LEAST FIVE PERCENT IN THE
PROFITS, CAPITAL, OR VALUE OF THE TAXPAYER. OWNERSHIP INTEREST SHALL BE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07771-01-3
S. 6378 2
DETERMINED IN ACCORDANCE WITH SECTION FIFTEEN HUNDRED SIXTY-THREE OF THE
INTERNAL REVENUE CODE AND REGULATIONS PRESCRIBED THEREUNDER.
(3) "NEW INCOME TAX REVENUE" MEANS THE TOTAL AMOUNT WITHHELD UNDER
THIS CHAPTER BY THE TAXPAYER DURING THE TAXABLE YEAR FROM THE COMPEN-
SATION OF NEW EMPLOYEES FOR THE TAXES LEVIED UNDER THIS CHAPTER.
(4) "RELATED MEMBER" HAS THE SAME MEANING AS PROVIDED IN THIS CHAPTER.
(B) THE JOB CREATION TAX CREDIT AUTHORIZED UNDER THIS SUBDIVISION
SHALL BE FOR THE PURPOSE OF FOSTERING JOB CREATION IN THIS STATE. SUCH A
GRANT SHALL TAKE THE FORM OF A REFUNDABLE CREDIT ALLOWED AGAINST THE TAX
IMPOSED UNDER THIS CHAPTER. THE CREDIT SHALL BE CLAIMED AFTER THE ALLOW-
ANCE OF ALL OTHER CREDITS PROVIDED BY THIS CHAPTER. THE AMOUNT OF THE
CREDIT SHALL EQUAL THE NEW INCOME TAX REVENUE FOR THE TAXABLE YEAR
MULTIPLIED BY FIFTY PERCENT.
(C) IN ORDER TO QUALIFY FOR THE CREDIT THE TAXPAYER MUST SUBMIT TO THE
DEPARTMENT OF ECONOMIC DEVELOPMENT IN THE TAXABLE YEAR FOR WHICH CREDIT
IS SOUGHT A FORM PROVIDED BY SUCH DEPARTMENT IN WHICH THE TAXPAYER
STATES THE FOLLOWING:
(1) THE TAXPAYER'S PROJECT WILL CREATE NEW JOBS IN THIS STATE;
(2) THE TAXPAYER'S PROJECT IS ECONOMICALLY SOUND AND WILL BENEFIT THE
PEOPLE OF THIS STATE BY INCREASING OPPORTUNITIES FOR EMPLOYMENT AND
STRENGTHENING THE ECONOMY OF THIS STATE;
(3) RECEIVING THE TAX CREDIT IS A MAJOR FACTOR IN THE TAXPAYER'S DECI-
SION TO GO FORWARD WITH THE PROJECT;
(4) A DETAILED DESCRIPTION OF THE PROJECT THAT IS THE SUBJECT OF THE
AGREEMENT;
(5) THE TERM OF THE TAX CREDIT WHICH SHALL NOT EXCEED TEN YEARS, AND
THE FIRST TAXABLE YEAR FOR WHICH THE CREDIT MAY BE CLAIMED;
(6) THAT THE TAXPAYER SHALL MAINTAIN OPERATIONS AT THE PROJECT
LOCATION FOR AT LEAST TWICE THE NUMBER OF YEARS AS THE TERM OF THE TAX
CREDIT;
(7) THAT FIFTY PERCENT OF THE NEW INCOME TAX REVENUE WILL BE ALLOWED
AS THE AMOUNT OF THE CREDIT FOR EACH TAXABLE YEAR;
(8) A SPECIFIC METHOD FOR DETERMINING HOW MANY NEW EMPLOYEES ARE
EMPLOYED DURING A TAXABLE YEAR;
(9) THAT THE TAXPAYER ANNUALLY SHALL REPORT TO THE COMMISSIONER OF
ECONOMIC DEVELOPMENT THE NUMBER OF NEW EMPLOYEES, THE NEW INCOME TAX
REVENUE WITHHELD IN CONNECTION WITH THE NEW EMPLOYEES AND ANY OTHER
INFORMATION THE COMMISSIONER OF ECONOMIC DEVELOPMENT NEEDS TO PERFORM
HIS OR HER DUTIES UNDER THIS SUBDIVISION; AND
(10) THAT THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL ANNUALLY
VERIFY THE AMOUNTS REPORTED PURSUANT TO SUBPARAGRAPH NINE OF THIS PARA-
GRAPH, AND AFTER DOING SO SHALL ISSUE A CERTIFICATE TO THE TAXPAYER
STATING THAT THE AMOUNTS HAVE BEEN VERIFIED.
(D) A TAXPAYER CLAIMING A CREDIT UNDER THIS SECTION SHALL SUBMIT TO
THE COMMISSIONER A COPY OF THE COMMISSIONER OF ECONOMIC DEVELOPMENT'S
CERTIFICATE OF VERIFICATION, AS PROVIDED IN SUBPARAGRAPH NINE OF PARA-
GRAPH (C) OF THIS SUBDIVISION FOR THE TAXABLE YEAR.
(E) THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AFTER CONSULTATION WITH
THE COMMISSIONER SHALL ADOPT SUCH RULES AND REGULATIONS AS ARE NECESSARY
TO IMPLEMENT THIS SUBDIVISION.
(F) FOR THE PURPOSES OF THIS SUBDIVISION A TAXPAYER MAY INCLUDE A
PARTNERSHIP, A CORPORATION THAT HAS MADE AN ELECTION UNDER SUBCHAPTER S
OF CHAPTER ONE OF SUBTITLE A OF THE INTERNAL REVENUE CODE, OR ANY OTHER
BUSINESS ENTITY THROUGH WHICH INCOME FLOWS AS A DISTRIBUTIVE SHARE TO
ITS OWNERS. A CREDIT RECEIVED UNDER THIS SUBDIVISION BY A PARTNERSHIP,
S-CORPORATION, OR OTHER SUCH BUSINESS ENTITY SHALL BE APPORTIONED AMONG
S. 6378 3
THE PERSONS TO WHOM THE INCOME OR PROFIT OF THE PARTNERSHIP, S-CORPORA-
TION, OR OTHER ENTITY IS DISTRIBUTED, IN THE SAME PROPORTIONS AS THOSE
IN WHICH THE INCOME OR PROFIT IS DISTRIBUTED.
(G) IF THE COMMISSIONER OF ECONOMIC DEVELOPMENT DETERMINES THAT A
TAXPAYER WHO HAS RECEIVED A CREDIT UNDER THIS SUBDIVISION IS NOT COMPLY-
ING WITH THE REQUIREMENT OF SUBPARAGRAPH NINE OF PARAGRAPH (C) OF THIS
SUBDIVISION, HE OR SHE SHALL NOTIFY THE COMMISSIONER OF THE NONCOMPLI-
ANCE. AFTER RECEIVING SUCH A NOTICE, AND AFTER GIVING THE TAXPAYER AN
OPPORTUNITY TO EXPLAIN THE NONCOMPLIANCE, THE COMMISSIONER MAY MAKE AN
ASSESSMENT AGAINST THE TAXPAYER UNDER THIS CHAPTER FOR AN AMOUNT NOT
EXCEEDING THE SUM OF ANY PREVIOUSLY ALLOWED CREDITS UNDER THIS SUBDIVI-
SION.
(H) ON OR BEFORE THE THIRTY-FIRST DAY OF MARCH OF EACH YEAR, THE
COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL SUBMIT A REPORT TO THE GOVER-
NOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY
AND THE MINORITY LEADERS OF THE SENATE AND ASSEMBLY ON THE TAX CREDIT
PROGRAM PROVIDED FOR IN THIS SUBDIVISION. THE REPORT SHALL INCLUDE
INFORMATION ON THE NUMBER OF TAXPAYERS RECEIVING TAX CREDITS PURSUANT TO
THIS SUBDIVISION DURING THE PRECEDING CALENDAR YEAR, A DESCRIPTION OF
THE PROJECTS THAT ARE THE SUBJECT OF THE CREDIT, AND AN UPDATE ON THE
STATUS OF PROJECTS FOR WHICH CREDITS WERE ALLOWED DURING THE PRECEDING
CALENDAR YEAR.
DURING THE FIRST YEAR OF THE TAX CREDIT PROGRAM, THE COMMISSIONER OF
ECONOMIC DEVELOPMENT IN CONJUNCTION WITH THE DIRECTOR OF BUDGET SHALL
CONDUCT AN EVALUATION OF SUCH PROGRAM. THE EVALUATION SHALL INCLUDE
ASSESSMENTS OF THE EFFECTIVENESS OF THE PROGRAM IN CREATING NEW JOBS IN
THIS STATE AND OF THE REVENUE IMPACT OF THE PROGRAM. SUCH REPORT MAY
ALSO INCLUDE A REVIEW OF THE PRACTICES AND EXPERIENCES OF OTHER STATES
WITH SIMILAR PROGRAMS. THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL
SUBMIT A REPORT ON THE EVALUATION TO THE GOVERNOR, THE TEMPORARY PRESI-
DENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY AND THE MINORITY LEADERS
OF THE SENATE AND ASSEMBLY ON OR BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-SIX.
§ 3. Section 606 of the tax law is amended by adding a new subsection
(bbb) to read as follows:
(BBB) JOB CREATION TAX CREDIT. (1) AS USED IN THIS SUBSECTION, THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "FULL-TIME EMPLOYEE" MEANS AN INDIVIDUAL WHO IS EMPLOYED FOR
CONSIDERATION FOR AT LEAST THIRTY-FIVE HOURS A WEEK, OR WHO RENDERS ANY
OTHER STANDARD OF SERVICE GENERALLY ACCEPTED BY CUSTOM OR SPECIFIED BY
CONTRACT AS FULL-TIME EMPLOYMENT.
(B) "NEW EMPLOYEE" MEANS A FULL-TIME EMPLOYEE FIRST EMPLOYED BY A
TAXPAYER IN THE PROJECT THAT IS THE SUBJECT OF THE TAX CREDIT AUTHORIZED
UNDER THIS SUBSECTION IN THE TAXABLE YEAR IN WHICH THE TAXPAYER SEEKS
THE CREDIT. "NEW EMPLOYEE" ALSO MAY INCLUDE AN EMPLOYEE REHIRED OR
CALLED BACK FROM LAY-OFF TO WORK IN A NEW FACILITY OR ON A NEW PRODUCT
OR SERVICE ESTABLISHED OR PRODUCED BY THE TAXPAYER DURING THE TAXABLE
YEAR IN WHICH THE CREDIT IS SOUGHT. "NEW EMPLOYEE" SHALL NOT INCLUDE ANY
EMPLOYEE OF THE TAXPAYER WHO WAS PREVIOUSLY EMPLOYED IN THIS STATE BY A
RELATED MEMBER OF THE TAXPAYER AND WHOSE EMPLOYMENT WAS SHIFTED TO THE
TAXPAYER DURING THE TAXABLE YEAR IN WHICH THE CREDIT IS SOUGHT. IN ADDI-
TION, "NEW EMPLOYEE" SHALL NOT INCLUDE A CHILD, GRANDCHILD, PARENT, OR
SPOUSE, OTHER THAN A SPOUSE WHO IS LEGALLY SEPARATED FROM THE INDIVID-
UAL, OR ANY INDIVIDUAL WHO IS AN EMPLOYEE OF THE TAXPAYER AND WHO HAS A
DIRECT OR INDIRECT OWNERSHIP INTEREST OF AT LEAST FIVE PERCENT IN THE
PROFITS, CAPITAL, OR VALUE OF THE TAXPAYER. OWNERSHIP INTEREST SHALL BE
S. 6378 4
DETERMINED IN ACCORDANCE WITH SECTION FIFTEEN HUNDRED SIXTY-THREE OF THE
INTERNAL REVENUE CODE AND REGULATIONS PRESCRIBED THEREUNDER.
(C) "NEW INCOME TAX REVENUE" MEANS THE TOTAL AMOUNT WITHHELD UNDER
THIS CHAPTER BY THE TAXPAYER DURING THE TAXABLE YEAR FROM THE COMPEN-
SATION OF NEW EMPLOYEES FOR THE TAX LEVIES UNDER THIS CHAPTER.
(D) "RELATED MEMBER" HAS THE SAME MEANING AS PROVIDED IN THIS CHAPTER.
(2) THE JOB CREATION TAX CREDIT AUTHORIZED UNDER THIS SUBSECTION SHALL
BE FOR THE PURPOSE OF FOSTERING JOB CREATION IN THIS STATE. SUCH A
GRANT SHALL TAKE THE FORM OF A REFUNDABLE CREDIT ALLOWED AGAINST THE TAX
IMPOSED UNDER THIS CHAPTER. THE CREDIT SHALL BE CLAIMED AFTER THE ALLOW-
ANCE OF ALL OTHER CREDITS PROVIDED BY THIS CHAPTER. THE AMOUNT OF THE
CREDIT SHALL EQUAL THE NEW INCOME TAX REVENUE FOR THE TAXABLE YEAR
MULTIPLIED BY FIFTY PERCENT.
(3) IN ORDER TO QUALIFY FOR THE CREDIT THE TAXPAYER MUST SUBMIT TO THE
DEPARTMENT OF ECONOMIC DEVELOPMENT IN THE TAXABLE YEAR FOR WHICH CREDIT
IS SOUGHT A FORM PROVIDED BY SUCH DEPARTMENT IN WHICH THE TAXPAYER
STATES THE FOLLOWING:
(A) THE TAXPAYER'S PROJECT WILL CREATE NEW JOBS IN THIS STATE;
(B) THE TAXPAYER'S PROJECT IS ECONOMICALLY SOUND AND WILL BENEFIT THE
PEOPLE OF THIS STATE BY INCREASING OPPORTUNITIES FOR EMPLOYMENT AND
STRENGTHENING THE ECONOMY OF THIS STATE;
(C) RECEIVING THE TAX CREDIT IS A MAJOR FACTOR IN THE TAXPAYER'S DECI-
SION TO GO FORWARD WITH THE PROJECT;
(D) A DETAILED DESCRIPTION OF THE PROJECT THAT IS THE SUBJECT OF THE
AGREEMENT;
(E) THE TERM OF THE TAX CREDIT WHICH SHALL NOT EXCEED TEN YEARS, AND
THE FIRST TAXABLE YEAR FOR WHICH THE CREDIT MAY BE CLAIMED;
(F) THAT THE TAXPAYER SHALL MAINTAIN OPERATIONS AT THE PROJECT
LOCATION FOR AT LEAST TWICE THE NUMBER OF YEARS AS THE TERM OF THE TAX
CREDIT;
(G) THAT FIFTY PERCENT OF THE NEW INCOME TAX REVENUE WILL BE ALLOWED
AS THE AMOUNT OF THE CREDIT FOR EACH TAXABLE YEAR;
(H) A SPECIFIC METHOD FOR DETERMINING HOW MANY NEW EMPLOYEES ARE
EMPLOYED DURING A TAXABLE YEAR;
(I) THAT THE TAXPAYER ANNUALLY SHALL REPORT TO THE COMMISSIONER OF
ECONOMIC DEVELOPMENT THE NUMBER OF NEW EMPLOYEES, THE NEW INCOME TAX
REVENUE WITHHELD IN CONNECTION WITH THE NEW EMPLOYEES AND ANY OTHER
INFORMATION THE COMMISSIONER OF ECONOMIC DEVELOPMENT NEEDS TO PERFORM
HIS OR HER DUTIES UNDER THIS SUBSECTION; AND
(J) THAT THE COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL ANNUALLY VERI-
FY THE AMOUNTS REPORTED PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH,
AND AFTER DOING SO SHALL ISSUE A CERTIFICATE TO THE TAXPAYER STATING
THAT THE AMOUNTS HAVE BEEN VERIFIED.
(4) A TAXPAYER CLAIMING A CREDIT UNDER THIS SUBSECTION SHALL SUBMIT TO
THE COMMISSIONER A COPY OF THE COMMISSIONER OF ECONOMIC DEVELOPMENT'S
CERTIFICATE OF VERIFICATION AS PROVIDED IN SUBPARAGRAPH (I) OF PARAGRAPH
THREE OF THIS SUBSECTION FOR THE TAXABLE YEAR.
(5) THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AFTER CONSULTATION WITH
THE COMMISSIONER SHALL ADOPT SUCH RULES AND REGULATIONS AS ARE NECESSARY
TO IMPLEMENT THIS SUBSECTION.
(6) FOR THE PURPOSES OF THIS SUBSECTION A TAXPAYER MAY INCLUDE A PART-
NERSHIP, A CORPORATION THAT HAS MADE AN ELECTION UNDER SUBCHAPTER S OF
CHAPTER ONE OF SUBTITLE A OF THE INTERNAL REVENUE CODE, OR ANY OTHER
BUSINESS ENTITY THROUGH WHICH INCOME FLOWS AS A DISTRIBUTIVE SHARE TO
ITS OWNERS. A CREDIT RECEIVED UNDER THIS SUBSECTION BY A PARTNERSHIP,
S-CORPORATION, OR OTHER SUCH BUSINESS ENTITY SHALL BE APPORTIONED AMONG
S. 6378 5
THE PERSONS TO WHOM THE INCOME OR PROFIT OF THE PARTNERSHIP, S-CORPORA-
TION, OR OTHER ENTITY IS DISTRIBUTED, IN THE SAME PROPORTIONS AS THOSE
IN WHICH THE INCOME OR PROFIT IS DISTRIBUTED.
(7) IF THE COMMISSIONER OF ECONOMIC DEVELOPMENT DETERMINES THAT A
TAXPAYER WHO HAS RECEIVED A CREDIT UNDER THIS SUBSECTION IS NOT COMPLY-
ING WITH THE REQUIREMENT OF SUBPARAGRAPH (I) OF PARAGRAPH THREE OF THIS
SUBSECTION, HE OR SHE SHALL NOTIFY THE COMMISSIONER OF THE NONCOMPLI-
ANCE. AFTER RECEIVING SUCH A NOTICE, AND AFTER GIVING THE TAXPAYER AN
OPPORTUNITY TO EXPLAIN THE NONCOMPLIANCE, THE COMMISSIONER MAY MAKE AN
ASSESSMENT AGAINST THE TAXPAYER UNDER THIS CHAPTER FOR AN AMOUNT NOT
EXCEEDING THE SUM OF ANY PREVIOUSLY ALLOWED CREDITS UNDER THIS
SUBSECTION.
(8) ON OR BEFORE THE THIRTY-FIRST DAY OF MARCH OF EACH YEAR, THE
COMMISSIONER OF ECONOMIC DEVELOPMENT SHALL SUBMIT A REPORT TO THE GOVER-
NOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY
AND THE MINORITY LEADERS OF THE SENATE AND ASSEMBLY ON THE TAX CREDIT
PROGRAM PROVIDED FOR IN THIS SUBSECTION. THE REPORT SHALL INCLUDE INFOR-
MATION ON THE NUMBER OF TAXPAYERS RECEIVING TAX CREDITS PURSUANT TO THIS
SUBSECTION DURING THE PRECEDING CALENDAR YEAR, A DESCRIPTION OF THE
PROJECTS THAT ARE THE SUBJECT OF THE CREDIT, AND AN UPDATE ON THE STATUS
OF PROJECTS FOR WHICH CREDITS WERE ALLOWED DURING THE PRECEDING CALENDAR
YEAR.
DURING THE FIRST YEAR OF THE TAX CREDIT PROGRAM, THE COMMISSIONER OF
ECONOMIC DEVELOPMENT IN CONJUNCTION WITH THE DIRECTOR OF BUDGET SHALL
CONDUCT AN EVALUATION OF SUCH PROGRAM. THE EVALUATION SHALL INCLUDE
ASSESSMENTS OF THE EFFECTIVENESS OF THE PROGRAM IN CREATING NEW JOBS IN
THIS STATE AND OF THE REVENUE IMPACT OF THE PROGRAM. SUCH REPORT MAY
ALSO INCLUDE A REVIEW OF THE PRACTICES AND EXPERIENCES OF OTHER STATES
WITH SIMILAR PROGRAMS. THE DEPARTMENT OF ECONOMIC DEVELOPMENT SHALL
SUBMIT A REPORT ON THE EVALUATION TO THE GOVERNOR, THE TEMPORARY PRESI-
DENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY AND THE MINORITY LEADERS
OF THE SENATE AND ASSEMBLY ON OR BEFORE JANUARY FIRST, TWO THOUSAND
TWENTY-SIX.
§ 4. This act shall take effect immediately and shall apply to taxable
years commencing on and after April 1, 2023.