Bill Text: NY S04552 | 2023-2024 | General Assembly | Introduced
Bill Title: Establishes a Hire-Now tax credit; provides for new job creation; provides for additional credit where the person hired was receiving unemployment.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Introduced - Dead) 2024-01-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S04552 Detail]
Download: New_York-2023-S04552-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4552 2023-2024 Regular Sessions IN SENATE February 10, 2023 ___________ Introduced by Sens. HELMING, GALLIVAN, OBERACKER, ORTT, TEDISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law, in relation to establishing a Hire-Now tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 48 to read 2 as follows: 3 § 48. Hire-Now tax credit. (a) Allowance of credit. A taxpayer, which 4 is subject to tax under article nine-A or twenty-two of this chapter and 5 which creates a new job, shall be allowed a credit against such tax. The 6 amount of the credit allowed under this section shall be equal to the 7 product of 6.85 percent and the gross wages paid for each new employee. 8 The credit shall not be more than five thousand dollars for any new 9 employee for one full year of employment; if a new employee has been 10 hired for less than a full tax year this amount shall be prorated and 11 apportioned to each tax year but shall in no way decrease the full three 12 consecutive years of credit eligibility. The taxpayer may claim this 13 credit for each new employee for a period of three consecutive years of 14 employment. The taxpayer may offset quarterly estimated tax returns 15 with the amount of this credit earned in any previous quarter. 16 (b) Unemployment enhancement. For calendar years two thousand twenty- 17 five and two thousand twenty-six if a new employee was receiving unem- 18 ployment insurance benefits at the time of hire, an additional three 19 thousand dollar credit will be allowed for the first full year of 20 employment. 21 (c) Definitions. As used in this section, the following terms shall 22 have the following meanings: 23 (1) "New employee" shall mean any full time employee that is hired by 24 the taxpayer after July first, two thousand twenty-four and before April EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09106-01-3S. 4552 2 1 first, two thousand twenty-five, that causes the total number of employ- 2 ees to increase above base employment or credit employment, whichever is 3 higher. 4 (2) "Base year" shall mean calendar year two thousand twenty-three. 5 (3) "Base employment" shall mean the average number of full time 6 employees or full time equivalent employees during the base year. For a 7 new business, base employment shall begin at zero. 8 (4) "Credit employment" shall mean base employment plus the number of 9 new employees for which a credit is earned for the prior tax years. 10 (d) Replacement employees. If one or more new employees for which a 11 credit was earned leaves the payroll during the same taxable year that 12 an individual is hired by the taxpayer to work in this state, causing 13 the taxpayer's total employment to equal an amount that is above base 14 employment but at or below the computed credit employment for the taxa- 15 ble year, the credit eligibility period for the individual hired during 16 the taxable year shall be three years minus the amount of time (rounded 17 to the next full month) that the taxpayer received the credit for the 18 departing employee. 19 (e) No credit shall be allowed under this section to a taxpayer for 20 any new employee if the taxpayer claims any other credit under this 21 article for such new employee where the basis of such other credit is an 22 increase in employment. 23 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 24 sion 59 to read as follows: 25 59. Hire-Now tax credit. (a) Allowance of credit. A taxpayer will be 26 allowed a credit, to be computed as provided in section forty-eight of 27 this chapter, against the tax imposed by this article. 28 (b) Application of credit. The credit allowed under this subdivision 29 for any taxable year may not reduce the tax due for such year to less 30 than the higher of the amounts prescribed in paragraph (d) of subdivi- 31 sion one of section two hundred ten of this article. However, if the 32 amount of credit allowed under this subdivision for any taxable year 33 reduces the tax to such amount, any amount of credit thus not deductible 34 in such taxable year will be treated as an overpayment of tax to be 35 credited or refunded in accordance with the provisions of section one 36 thousand eighty-six of this chapter. Provided, however, the provisions 37 of subsection (c) of section one thousand eighty-eight of this chapter 38 notwithstanding, no interest will be paid thereon. 39 § 3. Section 606 of the tax law is amended by adding a new subsection 40 (bbb) to read as follows: 41 (bbb) Hire-Now tax credit. (1) A taxpayer will be allowed a credit, to 42 the extent allowed under section forty-eight of this chapter, against 43 the tax imposed by this article. 44 (2) Application of credit. If the amount of the credit allowed under 45 this subsection for any taxable year exceeds the taxpayer's tax for such 46 year, the excess will be treated as an overpayment of tax to be credited 47 or refunded in accordance with the provisions of section six hundred 48 eighty-six of this article, provided, however, that no interest will be 49 paid thereon. 50 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 51 of the tax law is amended by adding a new clause (l) to read as follows: 52 (l) Hire-Now tax credit Amount of credit under 53 under subsection (bbb) subdivision fifty-nine of 54 section two hundred ten-B 55 § 5. This act shall take effect immediately.
