Establishes a small business tax credit for the employment of unemployed college graduates

BILL NUMBER:S3739A

Title of bill

An act to amend the tax law, in relation to establishing a small business tax credit for the employment of unemployed college graduates

Purpose

Encourage small-business employers to hire well-educated college graduates in various employable industries, and retain their knowledge and potential in strengthening and furthering New York State's economic goals.

Summary of provisions

Section 1: Subdivision 48 is amended to section 210 of the Tax law, to establish a small business tax credit in the range five thousand to twenty-five thousand for each employer who hires an unemployed college graduate for a period of twelve months or more, and a minimum of thirty-five hours per week.

Section 2: Clause (xxxiv) is added to section 606 of the Tax law, to identify legislative intent of bill found within subdivision 43 of section 210 of the Tax law.

Section 3: Subsection (yy) and (zz) is amended to section 606 of the Tax law, to establish a small business tax credit in the range five thousand to twenty-five thousand for each employer who hires an unemployed college graduate for a period of twelve months or more, and a minimum of thirty-five hours per week.

Justification

Recent February 2011 unemployment data found 9.5% of college graduates were unemployed, besting an unemployment rate of 8.9% for New York State. As college graduates are over burdened with tuition debt, lack of competitive grants offered by the State, credit card debt, cost-of-living concerns and uneasiness in adapting to a working society, these graduates have to overcome many obstacles to earn their first paid position out of school. Additionally, lack of prior work experience leads a majority of college graduates to remain unemployed.

A yearly study performed by Project on student Debt determined by New York State was ranked 11th in the country with college graduate debt for public 4-year institutions and private non-profit 4-year institutions. The average debt in 2010 was approximately $26,000/per college graduate.

To stimulate a job market for college graduates and to tap in to their knowledge, it is our intent to offer to small businesses a tax credit for the hiring and retention of college graduates at a minimum thirty-five hour per week schedule, for a minimum employable period of one year.

Legislative history

2013: S. 3739 - Referred to Investigations and Government Operations

Fiscal implications

To be determined.

Effective date

Shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2015.