Bill Text: NY S01799 | 2021-2022 | General Assembly | Introduced
Bill Title: Establishes a first permanent payroll employee tax credit which allows a business to receive a tax credit for the three years following the employment of such business' first permanent payroll employee where such credit equals a portion of the amount it costs to employ such permanent payroll employee.
Spectrum: Partisan Bill (Republican 8-0)
Status: (Introduced - Dead) 2022-01-05 - REFERRED TO BUDGET AND REVENUE [S01799 Detail]
Download: New_York-2021-S01799-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1799 2021-2022 Regular Sessions IN SENATE January 15, 2021 ___________ Introduced by Sens. BORRELLO, AKSHAR, GALLIVAN, JORDAN, O'MARA, ORTT, RITCHIE, TEDISCO -- 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 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: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 55 to read as follows: 3 55. First permanent payroll employee credit. (a) General. A taxpayer 4 shall be allowed a credit, to be computed as provided in this subdivi- 5 sion, against the tax imposed by this article for the first full-time, 6 permanent employee such taxpayer employs, provided that such full-time, 7 permanent employee is accounted for on such taxpayer's employer payroll 8 records. Such credit shall be available for each of the three years 9 succeeding the date a taxpayer employs their first full-time, permanent 10 employee. 11 (b) Amount of credit. A credit authorized by this subdivision shall be 12 equal to: 13 (1) in the first year, twenty-five percent of the total cost to employ 14 a full-time, permanent employee, when such employee is accounted for on 15 an employer's payroll records and is the first full-time, permanent 16 employee such taxpayer has hired; 17 (2) in the second year, twenty percent of the total cost to employ a 18 full-time, permanent employee, when such employee is accounted for on an 19 employer's payroll records and is the first full-time, permanent employ- 20 ee such taxpayer has hired; and 21 (3) in the third year, ten percent of the total cost to employ a full- 22 time, permanent employee, when such employee is accounted for on an 23 employer's payroll records and is the first full-time, permanent employ- 24 ee such taxpayer has hired. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04342-01-1S. 1799 2 1 (c) Carryovers. The credit allowed under this subdivision may be 2 claimed and if not fully used in the initial year for which the credit 3 is claimed may be carried over, in order, to each of the two succeeding 4 taxable years. The credit authorized by this subdivision may not be used 5 to reduce the tax liability of the credit claimant below zero. 6 (d) Definitions. For purposes of this subdivision, the following terms 7 shall have the following meanings: 8 (1) "Total cost to employ" shall mean base salary, New York state 9 payroll taxes and the value of employment benefits received. 10 (2) "New York state payroll taxes" shall mean all state taxes paid by 11 an employer from such employer's own funds and directly related to 12 employing an employee. 13 (e) Aggregate amount. The aggregate amount of tax credits allowed 14 pursuant to the authority of this subdivision and subsection (kkk) of 15 section six hundred six of this chapter shall be fifteen million dollars 16 each year. Such aggregate amounts of credits shall be allocated by the 17 commissioner. If the total amount of allocated credits applied for in 18 any particular year exceeds the aggregate amount of tax credits allowed 19 for such year under this section, such excess shall be treated as having 20 been applied for on the first day of the subsequent year. 21 (f) Claim of credit. (1) Taxpayers shall be eligible to claim such 22 credit beginning in the first taxable year after such taxpayer has 23 employed their first full-time, permanent employee, as verified on such 24 taxpayer's payroll records. 25 (2) A taxpayer shall not be allowed to claim this credit to the extent 26 the basis of the calculation of this credit has been claimed for another 27 tax credit under this chapter. 28 § 2. Section 606 of the tax law is amended by adding a new subsection 29 (kkk) to read as follows: 30 (kkk) First permanent payroll employee credit. (1) General. A taxpayer 31 shall be allowed a credit, to be computed as provided in this 32 subsection, against the tax imposed by this article for the first full- 33 time, permanent employee such taxpayer employs, provided that such full- 34 time, permanent employee is accounted for on such taxpayer's employer 35 payroll records. Such credit shall be available for each of the three 36 years succeeding the date a taxpayer employs their first full-time, 37 permanent employee. 38 (2) Amount of credit. A credit authorized by this subsection shall be 39 equal to: 40 (A) in the first year, twenty-five percent of the total cost to employ 41 a full-time, permanent employee, when such employee is accounted for on 42 an employer's payroll records and is the first full-time, permanent 43 employee such taxpayer has hired; 44 (B) in the second year, twenty percent of the total cost to employ a 45 full-time, permanent employee, when such employee is accounted for on an 46 employer's payroll records and is the first full-time, permanent employ- 47 ee such taxpayer has hired; and 48 (C) in the third year, ten percent of the total cost to employ a full- 49 time, permanent employee, when such employee is accounted for on an 50 employer's payroll records and is the first full-time, permanent employ- 51 ee such taxpayer has hired. 52 (3) Carryovers. The credit allowed under this subsection may be 53 claimed and if not fully used in the initial year for which the credit 54 is claimed may be carried over, in order, to each of the two succeeding 55 taxable years. The credit authorized by this subsection may not be used 56 to reduce the tax liability of the credit claimant below zero.S. 1799 3 1 (4) Definitions. For purposes of this subsection, the following terms 2 shall have the following meanings: 3 (A) "Total cost to employ" shall mean base salary, New York state 4 payroll taxes and the value of employment benefits received. 5 (B) "New York state payroll taxes" shall mean all state taxes paid by 6 an employer from such employer's own funds and directly related to 7 employing an employee. 8 (5) Aggregate amount. The aggregate amount of tax credits allowed 9 pursuant to the authority of this subsection and subdivision fifty-five 10 of section two hundred ten-B of this chapter shall be fifteen million 11 dollars each year. Such aggregate amounts of credits shall be allocated 12 by the commissioner. If the total amount of allocated credits applied 13 for in any particular year exceeds the aggregate amount of tax credits 14 allowed for such year under this section, such excess shall be treated 15 as having been applied for on the first day of the subsequent year. 16 (6) Claim of credit. (A) Taxpayers shall be eligible to claim such 17 credit beginning in the first taxable year after such taxpayer has 18 employed their first full-time, permanent employee, as verified on such 19 taxpayer's payroll records. 20 (B) A taxpayer shall not be allowed to claim this credit to the extent 21 the basis of the calculation of this credit has been claimed for another 22 tax credit under this chapter. 23 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 24 of the tax law is amended by adding a new clause (xlvi) to read as 25 follows: 26 (xlvi) First permanent payroll Amount of credit under subdivision 27 employee credit under subsection fifty-five of section two hundred 28 (kkk) ten-B 29 § 4. This act shall take effect immediately and shall apply to taxable 30 years commencing on and after January 1, 2022.
