Bill Text: NY A08471 | 2019-2020 | General Assembly | Introduced


Bill Title: Establishes the work opportunity tax credit for businesses with fifty employees or less for hiring a long term unemployed person; a credit shall be allowed of up to $2,400; the total amount of credit provided statewide shall not exceed fifteen million dollars.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-07-08 - referred to ways and means [A08471 Detail]

Download: New_York-2019-A08471-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          8471

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                      July 8, 2019
                                       ___________

        Introduced  by M. of A. ORTIZ -- read once and referred to the Committee
          on Ways and Means

        AN ACT to amend the tax law, in relation to establishing the work oppor-
          tunity tax credit

          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. Work opportunity tax credit. (a) Allowance of credit.  A  taxpayer
     4  shall  be  allowed a credit, against the tax imposed by this article, of
     5  two thousand four hundred dollars for each long term  unemployed  person
     6  hired during a taxable year. Such tax credit shall be applicable only to
     7  businesses  employing fifty or fewer employees. For the purposes of this
     8  subdivision, a "long term unemployed person" shall be an individual  who
     9  has  been  a  resident of New York for three years immediately preceding
    10  hiring and who, prior to being hired by the business  eligible  for  the
    11  credit established pursuant to this subdivision, had been unemployed and
    12  receiving  public  assistance for six consecutive months or more, and is
    13  retained for full-time employment by such  business  for  at  least  one
    14  year.
    15    (b)  Application  of credit. The credit allowed under this subdivision
    16  for any taxable year shall not reduce the tax due for such year to  less
    17  than  the  fixed  dollar  minimum  amount prescribed in paragraph (d) of
    18  subdivision one of section two hundred ten of this article. However,  if
    19  the amount of credit allowed under this subdivision for any taxable year
    20  reduces  the  tax  to  such amount or if the taxpayer otherwise pays tax
    21  based on the fixed dollar minimum amount, any amount of credit thus  not
    22  deductible  in  such  taxable year shall be treated as an overpayment of
    23  tax to be credited or refunded in  accordance  with  the  provisions  of
    24  section  one thousand eighty-six of this chapter. Provided, however, the
    25  provisions of subsection (c) of section  one  thousand  eighty-eight  of

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05841-04-9

        A. 8471                             2

     1  this  chapter  notwithstanding,  no  interest shall be paid thereon. The
     2  total amount of credit to be provided statewide  for  this  credit,  the
     3  credit allowed under subsection (kkk) of section six hundred six of this
     4  chapter  and  subdivision (ee) of section fifteen hundred eleven of this
     5  chapter shall not exceed fifteen million dollars in the aggregate  in  a
     6  taxable year.
     7    (c)  Credit  recapture.  For provisions requiring recapture of credit,
     8  see section forty-four of this chapter.
     9    § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    10  of  the  tax  law  is  amended  by  adding a new clause (xlv) to read as
    11  follows:

    12  (xlv) Work opportunity tax credit    Amount of credit under
    13  under subsection (kkk)               subdivision fifty-four of
    14                                       section two hundred ten-B

    15    § 3. Section 606 of the tax law is amended by adding a new  subsection
    16  (kkk) to read as follows:
    17    (kkk) Work opportunity tax credit. (1) Allowance of credit. A taxpayer
    18  shall  be  allowed a credit, against the tax imposed by this article, of
    19  two thousand four hundred dollars for each long term  unemployed  person
    20  hired during a taxable year. Such tax credit shall be applicable only to
    21  businesses  employing fifty or fewer employees. For the purposes of this
    22  subdivision, a "long term unemployed person" shall be an individual  who
    23  has  been  a  resident of New York for three years immediately preceding
    24  hiring and who, prior to being hired by the business  eligible  for  the
    25  credit  established pursuant to this subsection, had been unemployed and
    26  receiving public assistance for six consecutive months or more,  and  is
    27  retained  for  full-time  employment  by  such business for at least one
    28  year.
    29    (2) Application of credit. If the amount of the credit  allowed  under
    30  this subsection for any taxable year shall exceed the taxpayer's tax for
    31  such  year,  the  excess shall be treated as an overpayment of tax to be
    32  credited or refunded in accordance with the provisions  of  section  six
    33  hundred  eighty-six of this article, provided, however, that no interest
    34  shall be paid thereon. The total amount of credit to be provided  state-
    35  wide for this credit, the credit allowed under subdivision fifty-four of
    36  section  two  hundred  ten-B  of  this  chapter  and subdivision (ee) of
    37  section fifteen hundred eleven of this chapter shall not exceed  fifteen
    38  million dollars in the aggregate in a taxable year.
    39    (3)  Credit  recapture.  For provisions requiring recapture of credit,
    40  see section forty-four of this chapter.
    41    § 4. Section 1511 of the tax law is amended by adding a  new  subdivi-
    42  sion (ee) to read as follows:
    43    (ee)  Work opportunity tax credit. (1) Allowance of credit. A taxpayer
    44  shall be allowed a credit, against the tax imposed by this  article,  of
    45  two  thousand  four hundred dollars for each long term unemployed person
    46  hired during a taxable year. Such tax credit shall be applicable only to
    47  businesses employing fifty or fewer employees. For the purposes of  this
    48  subdivision,  a "long term unemployed person" shall be an individual who
    49  has been a resident of New York for three  years  immediately  preceding
    50  hiring  and  who,  prior to being hired by the business eligible for the
    51  credit established pursuant to this subdivision, had been unemployed and
    52  receiving public assistance for six consecutive months or more,  and  is
    53  retained  for  full-time  employment  by  such business for at least one

        A. 8471                             3

     1  year. The total amount of credit to  be  provided  statewide  shall  not
     2  exceed fifteen million dollars in a taxable year.
     3    (2)  Application  of credit. The credit allowed under this subdivision
     4  shall not reduce the tax due for such year to be less than  the  minimum
     5  fixed  by  paragraph  four of subdivision (a) of section fifteen hundred
     6  two or section fifteen hundred  two-a  of  this  article,  whichever  is
     7  applicable.  However,  if  the  amount  of the credit allowed under this
     8  subdivision for any taxable year reduces  the  taxpayer's  tax  to  such
     9  amount,  any  amount of credit thus not deductible will be treated as an
    10  overpayment of tax to be credited or refunded  in  accordance  with  the
    11  provisions of section one thousand eighty-six of this chapter. Provided,
    12  however,  the  provisions of subsection (c) of one thousand eighty-eight
    13  of this chapter notwithstanding, no interest shall be paid thereon.  The
    14  total  amount  of  credit  to be provided statewide for this credit, the
    15  credit allowed under subdivision fifty-four of section two hundred ten-B
    16  of this chapter and subdivision (kkk) of section six hundred six of this
    17  chapter shall not exceed fifteen million dollars in the aggregate  in  a
    18  taxable year.
    19    (3)  Credit  recapture.  For provisions requiring recapture of credit,
    20  see section forty-four of this chapter.
    21    § 5. This act shall take effect immediately and shall apply to taxable
    22  years beginning on and after January 1, 2020 and shall apply to eligible
    23  individuals hired on and after such effective date.
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