Bill Text: NY S08358 | 2019-2020 | General Assembly | Amended
Bill Title: Establishes the COVID-19 recovery local employment tax credit program to provide tax incentives to employers for employing local employees in full-time or part-time positions in the two years following the conclusion of the state disaster emergency declared pursuant to executive order two hundred two.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2020-05-29 - PRINT NUMBER 8358A [S08358 Detail]
Download: New_York-2019-S08358-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 8358--A IN SENATE May 19, 2020 ___________ Introduced by Sens. BAILEY, BENJAMIN -- read twice and ordered printed, and when printed to be committed to the Committee on Labor -- commit- tee discharged, bill amended, ordered reprinted as amended and recom- mitted to said committee AN ACT to amend the labor law and the tax law, in relation to establish- ing the COVID-19 recovery local employment tax credit program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The labor law is amended by adding a new section 25-d to 2 read as follows: 3 § 25-d. Power to administer the COVID-19 recovery local employment tax 4 credit program. (a) The commissioner is authorized to establish and 5 administer the COVID-19 recovery local employment tax credit program to 6 provide tax incentives to employers for employing local employees in 7 full-time or part-time positions in the two years following the conclu- 8 sion of the state disaster emergency declared pursuant to executive 9 order two hundred two. The commissioner is authorized to allocate up to 10 forty million dollars of tax credits under this program. 11 (b) Definitions. (1) The term "qualified employer" means an employer 12 that has been certified by the commissioner to participate in the 13 COVID-19 recovery local employment tax credit program and that employs 14 one or more qualified employees. 15 (2) The term "qualified employee" means an individual: 16 (i) resides within fifty miles from the qualified employer; 17 (ii) who resides in a city with a population of eighty thousand or 18 more or a town with a population of fifty-five thousand or more; 19 (iii) who is low-income or at-risk, as such terms are defined by the 20 commissioner; 21 (iv) who is unemployed prior to being hired by the qualified employer 22 as a result of the outbreak of novel coronavirus, COVID-19; and 23 (v) who will be working for the qualified employer in a full-time or 24 part-time position that pays wages that are equivalent to the wages paid 25 for similar jobs, with appropriate adjustments for experience and train- 26 ing, and for which no other employee has been terminated, or where the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD16233-07-0S. 8358--A 2 1 employer has not otherwise reduced its workforce by involuntary termi- 2 nations with the intention of filling the vacancy by creating a new 3 hire. 4 (c) A qualified employer shall be entitled to a tax credit equal to 5 (1) seven hundred fifty dollars per month for up to six months for each 6 qualified employee the employer employs in a full-time job or three 7 hundred seventy-five dollars per month for up to six months for each 8 qualified employee the employer employs in a part-time job of at least 9 twenty hours per week, (2) fifteen hundred dollars for each qualified 10 employee who is employed for at least an additional six consecutive 11 months by the qualified employer in a full-time job or seven hundred 12 fifty dollars for each qualified employee who is employed for at least 13 an additional six consecutive months by the qualified employer in a 14 part-time job of at least twenty hours per week, and (3) an additional 15 fifteen hundred dollars for each qualified employee who is employed for 16 at least an additional year after the completion of the time periods and 17 satisfaction of the conditions set forth in paragraphs one and two of 18 this subdivision by the qualified employer in a full-time job or seven 19 hundred fifty dollars for each qualified employee who is employed for at 20 least an additional year after the completion of the time periods and 21 satisfaction of the conditions set forth in paragraphs one and two of 22 this subdivision by the qualified employer in a part-time job of at 23 least twenty hours per week. The tax credits shall be claimed by the 24 qualified employer as specified in subdivision fifty-five of section two 25 hundred ten-B and subsection (kkk) of section six hundred six of the tax 26 law. 27 (d) To participate in the COVID-19 recovery local employment tax cred- 28 it program, an employer must submit an application (in a form prescribed 29 by the commissioner) to the commissioner after January first, of the 30 taxable year following the conclusion of the state disaster emergency 31 declared pursuant to executive order two hundred two but no later than 32 June first, of such year. The qualified employees shall start their 33 employment on or after January first, of such year but no later than 34 July first, of such year. The commissioner shall establish guidelines 35 and criteria that specify requirements for employers to participate in 36 the program including criteria for certifying qualified employees. Any 37 regulations that the commissioner determines are necessary may be 38 adopted on an emergency basis notwithstanding anything to the contrary 39 in section two hundred two of the state administrative procedure act. 40 Such requirements may include the types of industries that the employers 41 are engaged in. The commissioner may give preference to employers that 42 are engaged in demand occupations or industries, or in regional growth 43 sectors, including those identified by the regional economic development 44 councils, such as clean energy, healthcare, advanced manufacturing and 45 conservation. In addition, the commissioner shall give preference to 46 employers who offer advancement and employee benefit packages to the 47 qualified individuals. As part of such application, an employer shall: 48 (1) agree to allow the department of taxation and finance to share its 49 tax information with the commissioner. However, any information shared 50 as a result of this agreement shall not be available for disclosure or 51 inspection under the state freedom of information law, and 52 (2) allow the commissioner and his or her agents and the department of 53 taxation and finance and its agents access to any and all books and 54 records of employers the commissioner may require to monitor compliance. 55 (e) If, after reviewing the application submitted by an employer, the 56 commissioner determines that such employer is eligible to participate inS. 8358--A 3 1 the program established under this section, the commissioner shall issue 2 the employer a preliminary certificate of eligibility that establishes 3 the employer as a qualified employer. The preliminary certificate of 4 eligibility shall specify the maximum amount of tax credit that the 5 employer may be allowed to claim and the program year under which it may 6 be claimed. The maximum amount of tax credit the employer is allowed to 7 claim shall be computed as prescribed in subdivision (c) of this 8 section. 9 (f)(1) To receive an annual final certificate of tax credit, the qual- 10 ified employer shall annually submit, on or before January thirty-first 11 of the calendar year subsequent to the payment of wages paid to an 12 eligible employee, a report to the commissioner, in a form prescribed by 13 the commissioner. The report must demonstrate that the employer has 14 satisfied all eligibility requirements and provided all the information 15 necessary for the commissioner to compute an actual amount of credit 16 allowed. 17 (2) After reviewing the report and finding it sufficient, the commis- 18 sioner shall issue an annual final certificate of tax credit. Such 19 certificate shall include, in addition to any other information the 20 commissioner determines is necessary, the following information: 21 (i) The name and employer identification number of the qualified 22 employer; 23 (ii) The program year for the corresponding credit award; 24 (iii) The actual amount of credit to which the qualified employer is 25 entitled for that calendar year or the fiscal year in which the annual 26 final certificate is issued, which actual amount cannot exceed the 27 amount of credit listed on the preliminary certificate but may be less 28 than such amount; and 29 (iv) A unique certificate number identifying the annual final certif- 30 icate of tax credit. 31 (g) In determining the amount of credit for purposes of the annual 32 final certificate of tax credit, the portion of the credit described in 33 paragraph one of subdivision (c) of this section shall be allowed for 34 the calendar year in which the wages are paid to the qualified employee, 35 the portion of the credit described in paragraph two of subdivision (c) 36 of this section shall be allowed for the calendar year in which the 37 additional six consecutive month period ends, and the portion of the 38 credit described in paragraph three of subdivision (c) of this section 39 shall be allowed for the calendar year in which the additional year of 40 consecutive employment ends after the completion of the time periods and 41 satisfaction of the conditions set forth in paragraphs one and two of 42 subdivision (c) of this section. If the qualified employer's taxable 43 year is a calendar year, the employer shall be entitled to claim the 44 credit as calculated on the annual final certificate of tax credit on 45 the calendar year return for which the annual final certificate of tax 46 credit was issued. If the qualified employer's taxable year is a fiscal 47 year, the employer shall be entitled to claim the credit as calculated 48 on the annual final certificate of tax credit on the return for the 49 fiscal year that encompasses the date on which the annual final certif- 50 icate of tax credit is issued. 51 (h) The commissioner shall establish guidelines and criteria that 52 specify requirements for employers to participate in the program includ- 53 ing criteria for certifying qualified employees, and issuing the prelim- 54 inary certificate of eligibility and annual final certificate of tax 55 credit. Such requirements may include the types of industries that the 56 employers are engaged in. The commissioner may give preference toS. 8358--A 4 1 employers that are engaged in demand occupations or industries, or in 2 regional growth sectors, including but not limited to those identified 3 by the regional economic development councils, such as clean energy, 4 healthcare, advanced manufacturing and conservation. In addition, the 5 commissioner shall give preference to employers who offer advancement 6 and employee benefit packages to the qualified individuals. 7 (i) The commissioner shall annually publish a report. Such report must 8 contain the names and addresses of any employer issued a preliminary 9 certificate of eligibility under this section, the amount of COVID-19 10 recovery local employment program tax credit allowed to the qualified 11 employer as specified on an annual final certificate of tax credit and 12 any other information as determined by the commissioner. 13 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 14 sion 55 to read as follows: 15 55. COVID-19 recovery local employment program tax credit. (a) A 16 taxpayer that has been certified by the commissioner of labor as a qual- 17 ified employer pursuant to section twenty-five-d of the labor law and 18 received an annual final certificate of tax credit from such commission- 19 er shall be allowed a credit against the tax imposed by this article 20 equal to the amount listed on the annual final certificate of tax credit 21 issued by the commissioner of labor pursuant to section twenty-five-d of 22 the labor law. If the qualified employer's taxable year is a calendar 23 year, the employer shall be entitled to claim the credit as calculated 24 on the annual final certificate of tax credit on the calendar year 25 return for which the annual final certificate of tax credit was issued. 26 If the qualified employer's taxable year is a fiscal year, the employer 27 shall be entitled to claim the credit as calculated on the annual final 28 certificate of tax credit on the return for the fiscal year that encom- 29 passes the date on which the annual final certificate of tax credit is 30 issued. For the purposes of this subdivision, the term "qualified 31 employee" shall have the same meaning as set forth in subdivision (b) of 32 section twenty-five-d of the labor law. 33 (b) The credit allowed under this subdivision for any taxable year may 34 not reduce the tax due for that year to less than the amount prescribed 35 in paragraph (d) of subdivision one of section two hundred ten of this 36 article. However, if the amount of the credit allowed under this subdi- 37 vision for any taxable year reduces the tax to that amount or if the 38 taxpayer otherwise pays tax based on the fixed dollar minimum amount, 39 any amount of credit not deductible in that taxable year will be treated 40 as an overpayment of tax to be credited or refunded in accordance with 41 the provisions of section one thousand eighty-six of this chapter. 42 Provided, however, no interest will be paid thereon. 43 (c) The taxpayer shall be required to attach to its tax return its 44 annual final certificate of tax credit issued by the commissioner of 45 labor pursuant to section twenty-five-d of the labor law. In no event 46 shall the taxpayer be allowed a credit greater than the amount of the 47 credit listed on the annual final certificate of tax credit. Notwith- 48 standing any provision of this chapter to the contrary, the commissioner 49 and the commissioner's designees may release the names and addresses of 50 any taxpayer claiming this credit and the amount of the credit earned by 51 the taxpayer. Provided, however, if a taxpayer claims this credit 52 because it is a member of a limited liability company or a partner in a 53 partnership, only the amount of credit earned by the entity and not the 54 amount of credit claimed by the taxpayer may be released. 55 § 3. Section 606 of the tax law is amended by adding a new subsection 56 (kkk) to read as follows:S. 8358--A 5 1 (kkk) COVID-19 recovery local employment program tax credit. (1) A 2 taxpayer that has been certified by the commissioner of labor as a qual- 3 ified employer pursuant to section twenty-five-d of the labor law and 4 received an annual final certificate of tax credit from such commission- 5 er shall be allowed a credit against the tax imposed by this article 6 equal to the amount listed on the annual final certificate of tax credit 7 issued by the commissioner of labor pursuant to section twenty-five-d of 8 the labor law. A taxpayer that is a partner in a partnership, member of 9 a limited liability company or shareholder in an S corporation that has 10 received its annual final certificate of tax credit from the commission- 11 er of labor as a qualified employer pursuant to section twenty-five-d of 12 the labor law shall be allowed its pro rata share of the credit earned 13 by the partnership, limited liability company or S corporation. If the 14 qualified employer's taxable year is a calendar year, the employer shall 15 be entitled to claim the credit as calculated on the annual final 16 certificate of tax credit on the calendar year return for which the 17 annual final certificate of tax credit was issued. If the qualified 18 employer's taxable year is a fiscal year, the employer shall be entitled 19 to claim the credit as calculated on the annual final certificate of tax 20 credit on the return for the fiscal year that encompasses the date on 21 which the annual final certificate of tax credit is issued. For the 22 purposes of this subsection, the term "qualified employee" shall have 23 the same meaning as set forth in subdivision (b) of section 24 twenty-five-d of the labor law. 25 (2) If the amount of the credit allowed under this subsection exceeds 26 the taxpayer's tax for the taxable year, any amount of credit not deduc- 27 tible in that taxable year will be treated as an overpayment of tax to 28 be credited or refunded in accordance with the provisions of section six 29 hundred eighty-six of this article. Provided, however, no interest will 30 be paid thereon. 31 (3) The taxpayer shall be required to attach to its tax return its 32 annual final certificate of tax credit issued by the commissioner of 33 labor pursuant to section twenty-five-d of the labor law. In no event 34 shall the taxpayer be allowed a credit greater than the amount of the 35 credit listed on the annual final certificate of tax credit. Notwith- 36 standing any provision of this chapter to the contrary, the commissioner 37 and the commissioner's designees may release the names and addresses of 38 any taxpayer claiming this credit and the amount of the credit earned by 39 the taxpayer. Provided, however, if a taxpayer claims this credit 40 because it is a member of a limited liability company, a partner in a 41 partnership, or a shareholder in a subchapter S corporation, only the 42 amount of credit earned by the entity and not the amount of credit 43 claimed by the taxpayer may be released. 44 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 45 of the tax law is amended by adding a new clause (xlvi) to read as 46 follows: 47 (xlvi) COVID-19 recovery local Amount of credit under 48 employment program subdivision fifty-five of 49 tax credit section two hundred ten-B 50 § 5. This act shall take effect immediately.