S T A T E O F N E W Y O R K
________________________________________________________________________
3999--A
2011-2012 Regular Sessions
I N S E N A T E
March 11, 2011
___________
Introduced by Sens. RANZENHOFER, BALL, DeFRANCISCO, GRISANTI, JOHNSON,
KLEIN, MAZIARZ, SALAND -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations -- recommitted to the Committee on Investigations and
Government Operations in accordance with Senate Rule 6, sec. 8 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
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 of the tax law is amended by adding a new
subdivision 45 to read as follows:
45. 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 WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS
ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
THE LABOR LAW; AND
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02530-02-2
S. 3999--A 2
(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;
(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 ELEVEN.
(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.
S 2. Section 606 of the tax law is amended by adding a new subsection
(uu) to read as follows:
(UU) 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 WEEKLY UNEMPLOYMENT COMPENSATION BENEFITS
ON THAT CLAIM UNDER THE PROVISIONS OF TITLE SEVEN OF ARTICLE EIGHTEEN OF
THE LABOR LAW; AND
(E) SUCH BENEFITS ARE CHARGEABLE TO THE EXPERIENCE RATING ACCOUNT OF
AN EMPLOYER UNDER THIS ARTICLE; OR
S. 3999--A 3
(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.
(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 ELEVEN.
(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.
S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new clause (xxxiv) to read as
follows:
(XXXIV) JOBS DEVELOPMENT INCENTIVE AMOUNT OF CREDIT UNDER
TAX CREDIT UNDER SUBSECTION (UU) SUBDIVISION FORTY-FIVE OF SECTION
TWO HUNDRED TEN OF THIS CHAPTER
S 4. This act shall take effect immediately.
