Bill Text: NY A07475 | 2019-2020 | General Assembly | Introduced


Bill Title: Establishes a small business tax credit for the employment of disabled persons.

Spectrum: Moderate Partisan Bill (Democrat 12-3)

Status: (Engrossed) 2019-06-14 - RETURNED TO ASSEMBLY [A07475 Detail]

Download: New_York-2019-A07475-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
            S. 5545                                                  A. 7475
                               2019-2020 Regular Sessions
                SENATE - ASSEMBLY
                                       May 6, 2019
                                       ___________
        IN SENATE -- Introduced by Sen. ADDABBO -- read twice and ordered print-
          ed,  and  when  printed to be committed to the Committee on Budget and
          Revenue
        IN ASSEMBLY -- Introduced by M.  of  A.  CUSICK,  LUPARDO,  BLANKENBUSH,
          COLTON,  WEPRIN, STERN, WALSH -- read once and referred to the Commit-
          tee on Ways and Means
        AN ACT to amend the tax law and the labor law, in relation to establish-
          ing a small  business  tax  credit  for  the  employment  of  disabled
          persons;  and providing for the repeal of such provisions upon expira-
          tion thereof
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Section  210-B  of the tax law is amended by adding a new
     2  subdivision 54 to read as follows:
     3    54. Small business  tax  credit;  disabled  persons.  (a)  General.  A
     4  taxpayer who has one hundred employees or less, shall be allowed a cred-
     5  it,  to  be  computed  as  provided in this subdivision, against the tax
     6  imposed by this article for each disabled person hired during a  taxable
     7  year,  provided  that  such  disabled person is employed for thirty-five
     8  hours or more per week, remains in the employ of such taxpayer  for  six
     9  months  or  more  and the employer submits verification that the claimed
    10  employees meet the statutory definition of "disabled person" pursuant to
    11  paragraph (d) of this subdivision.
    12    (b) Amount of credit. A credit authorized by this section shall  equal
    13  five  thousand  dollars  per  hired disabled person but shall not exceed
    14  twenty-five thousand dollars.
    15    (c) Carryovers.  The credit allowed under  this  subdivision  for  any
    16  taxable year shall not reduce the tax due for such year to less than the
    17  amount  prescribed  in  paragraph  (d) of subdivision one of section two
    18  hundred ten of this article. However, if the amount of credit  allowable
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10946-03-9

        S. 5545                             2                            A. 7475
     1  under  this  subdivision  for  any  taxable year reduces the tax to such
     2  amount or if the taxpayer otherwise pays tax based on the  fixed  dollar
     3  minimum amount, any amount of credit not deductible in such taxable year
     4  may  be  carried  over  to the following three years and may be deducted
     5  from the taxpayer's tax for such year or years.
     6    (d) Definitions. As used  in  this  subdivision,  the  term  "disabled
     7  person"  shall mean a resident of the state who has any physical, mental
     8  or medical impairment resulting from anatomical, physiological,  genetic
     9  or neurological conditions which prevents the exercise of a normal bodi-
    10  ly function or is demonstrable by medically accepted clinical or labora-
    11  tory diagnostic techniques.
    12    (e)  Aggregate  amount.  The  aggregate  amount of tax credits allowed
    13  pursuant to the authority of this subdivision and  subsection  (kkk)  of
    14  section  six  hundred  six of this chapter shall be five million dollars
    15  each year.  Such aggregate amounts of credits shall be allocated by  the
    16  commissioner.    If the total amount of allocated credits applied for in
    17  any particular year exceeds the aggregate amount of tax credits  allowed
    18  for such year under this section, such excess shall be treated as having
    19  been applied for on the first day of the subsequent year.
    20    (f)  Claim  of  credit.  A taxpayer shall not be allowed to claim this
    21  credit to the extent the basis of the calculation  of  this  credit  has
    22  been claimed for another tax credit under this chapter.
    23    §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    24  of the tax law is amended by adding  a  new  clause  (xlv)  to  read  as
    25  follows:
    26  (xlv) Small business tax credit;     Amount of credit under
    27  disabled persons under               subdivision fifty-four
    28  subsection (kkk)                     of section two hundred
    29                                       ten-B
    30    § 3.  Section 606 of the tax law is amended by adding a new subsection
    31  (kkk) to read as follows:
    32    (kkk)  Small  business  tax  credit;  disabled persons. (1) General. A
    33  taxpayer who has one hundred employees or less, shall be allowed a cred-
    34  it, to be computed as provided  in  this  subsection,  against  the  tax
    35  imposed  by this article for each disabled person hired during a taxable
    36  year, provided that such disabled person  is  employed  for  thirty-five
    37  hours  or  more per week, remains in the employ of such taxpayer for six
    38  months or more and the employer submits verification  that  the  claimed
    39  employees  have met the statutory definition of "disabled person" pursu-
    40  ant to paragraph four of this subsection.
    41    (2) Amount of credit. A credit authorized by this section shall  equal
    42  five  thousand  dollars  per  hired disabled person but shall not exceed
    43  twenty-five thousand dollars.
    44    (3) Carryovers.  The credit allowed under  this  subdivision  for  any
    45  taxable year shall not reduce the tax due for such year to less than the
    46  amount  prescribed  in  paragraph  (d) of subdivision one of section two
    47  hundred ten of this article. However, if the amount of credit  allowable
    48  under  this  subdivision  for  any  taxable year reduces the tax to such
    49  amount or if the taxpayer otherwise pays tax based on the  fixed  dollar
    50  minimum amount, any amount of credit not deductible in such taxable year
    51  may  be  carried  over  to the following three years and may be deducted
    52  from the taxpayer's tax for such year or years.
    53    (4) Definitions. As  used  in  this  subsection,  the  term  "disabled
    54  person"  shall mean a resident of the state who has any physical, mental
    55  or medical impairment resulting from anatomical, physiological,  genetic
    56  or neurological conditions which prevents the exercise of a normal bodi-

        S. 5545                             3                            A. 7475
     1  ly function or is demonstrable by medically accepted clinical or labora-
     2  tory diagnostic techniques.
     3    (5)  Aggregate  amount.  The  aggregate  amount of tax credits allowed
     4  pursuant to the authority of this subsection and subdivision  fifty-four
     5  of  section  two  hundred  ten-B  of  this chapter shall be five million
     6  dollars each year. Such aggregate amounts of credits shall be  allocated
     7  by  the  commissioner.  If the total amount of allocated credits applied
     8  for in any particular year exceeds the aggregate amount of  tax  credits
     9  allowed  for  such year under this section, such excess shall be treated
    10  as having been applied for on the first day of the subsequent year.
    11    (6) Claim of credit. A taxpayer shall not be  allowed  to  claim  this
    12  credit  to  the  extent  the basis of the calculation of this credit has
    13  been claimed for another tax credit under this chapter.
    14    § 4. The labor law is amended by adding a new section 25-d to read  as
    15  follows:
    16    § 25-d. Power to administer the small business tax credit for disabled
    17  persons tax credit program. (a) The commissioner is authorized to estab-
    18  lish  and  administer the small business tax credit for disabled persons
    19  to provide tax incentives to  small  business  employers  for  employing
    20  individuals  with  disabilities. The commissioner is authorized to allo-
    21  cate up to five million dollars of tax credits annually.
    22    (b) Definitions. (1) The term "qualified employer" means  an  employer
    23  that  has been certified by the commissioner to participate in the small
    24  business tax credit for disabled persons tax  credit  program  and  that
    25  employs one or more qualified employees.
    26    (2) The term "qualified employee" means an individual:
    27    (i)  who has any physical, mental or medical impairment resulting from
    28  anatomical, physiological,  genetic  or  neurological  conditions  which
    29  prevents  the exercise of a normal bodily function or is demonstrable by
    30  medically accepted clinical or laboratory diagnostic techniques;
    31    (ii) who has worked for the qualified employer in a full-time or part-
    32  time position that pays wages that are equivalent to the wages paid  for
    33  similar  jobs, with appropriate adjustments for experience and training,
    34  and for which no other  employee  has  been  terminated,  or  where  the
    35  employer  has  not otherwise reduced its workforce by involuntary termi-
    36  nations with the intention of filling the  vacancy  by  creating  a  new
    37  hire;
    38    (iii)  who  has  not  worked  for  an  entity related to the qualified
    39  employer in the past twenty-four months; and
    40    (iv) is employed in New York at a location in New York state.
    41    (c) A qualified employer shall be entitled to a tax  credit.  The  tax
    42  credits  shall  be  claimed  by  the  qualified employer as specified in
    43  subdivision fifty-four of section two hundred ten-B and subsection (kkk)
    44  of section six hundred six of the tax law.
    45    (d) To participate in the  small  business  tax  credit  for  disabled
    46  persons tax credit program, an employer must submit an application (in a
    47  form  prescribed  by  the commissioner) to the commissioner. The commis-
    48  sioner shall establish guidelines that specify requirements for  employ-
    49  ers  to  participate  in  the  program including criteria for certifying
    50  qualified employees. Any regulations that  the  commissioner  determines
    51  are  necessary  may  be  adopted  on  an emergency basis notwithstanding
    52  anything to the contrary in section two hundred two of the state  admin-
    53  istrative  procedure  act.  Such  requirements  may include the types of
    54  industries that the employers are engaged in.
    55    (e) If, after reviewing the application submitted by an employer,  the
    56  commissioner determines that such employer is eligible to participate in

        S. 5545                             4                            A. 7475
     1  the  small  business tax credit for disabled persons tax credit program,
     2  the commissioner shall issue the employer a preliminary  certificate  of
     3  eligibility  that  establishes the employer as a qualified employer. The
     4  certificate  of  eligibility  shall  specify the maximum amount of small
     5  business tax credit for disabled  persons  that  the  employer  will  be
     6  allowed  to  claim. At the end of the taxable year, a qualified employer
     7  must obtain a final certificate of eligibility from the commissioner  to
     8  file  with  a  return  claiming  the  credit. The final certificate must
     9  contain the certificate's taxable year to which the credit applies,  the
    10  maximum  amount of the credit allowed, the qualified employer's name and
    11  employer identification number, the employer's  business  address  where
    12  the  claimed  employees  were  employed,  the social security numbers of
    13  claimed employees and their hire  and  termination  dates,  verification
    14  that  the claimed employees have met the statutory definition of "quali-
    15  fied employee", and each employee's total  hours  worked  each  quarter,
    16  hourly wage, and full-time or part-time status.
    17    § 5. This act shall take effect immediately and shall apply to taxable
    18  years  beginning  on  or  after  January 1, 2020 and shall expire and be
    19  deemed repealed December 31, 2025.
feedback