Relates to providing tax credits for employees who have a developmental disability

4 Co-sponsors

• Terry Gipson
• Jack M. Martins
• George D. Maziarz
• Cecilia Tkaczyk

BILL NUMBER:S6631A

Title of bill

An act to amend the tax law, in relation to establishing business franchise, personal income, banking franchise and insurance franchise tax credits for a portion of the wages paid to certain employees who have a developmental disability

Purpose

Allows tax credits for employers who hire qualified employees who has a developmental disability.

Summary of provisions

Section 1 defines parameters for the tax credit for hiring developmentally disabled individuals as, not fewer than thirty hours per week if full-time and not less than fifteen hours per week if part-time. Requires a minimum employment period of not less than six months; defines a qualified taxpayer as an employer, other than that of the federal, state, or local government; defines a qualifies employee as an individual who resides in this state. The developmentally disabled individual must begin work prior to January 1, 2015 and prior to January 1, 2018. Allows for the maximum credit of fifteen percent for a full-time employee and ten percent for a part-time employee, while not exceeding five thousand dollars for any tax year. Allows for carryover of any non-deductible credit for the following three years.

Section 2 adds a new clause, xxxvii, under section 606 of the tax law.

Section 3 amends section 606 of the tax law to allow for a tax credit for employment of an employee who has a developmental disability; defines criteria for receiving credit.

Section 4 amends section 1456 of the tax law to allow for a credit for employers hiring qualified employees with developmental disabilities.

Section 5 amends section 1511 of the tax law to allow for a credit for employers hiring qualified employees with developmental disabilities.

Section 6 is the effective date.

Justification

In the wake of the Olmstead v. L.C. decision handed down by the United State Supreme Court there has been national response to move away from the "sheltered workshop" model of employment for individuals with developmental disabilities, and because of this it is now more important than ever to incentivize integrated employment opportunities. Only 44 percent of adults with developmental disabilities are in the workforce, compared to 83 percent of non-disabled adults. This legislation not only incentivizes employment, it will enhance disabled adults' overall quality of life by increasing social interaction, creating a sense of belonging to their community, and earning a paycheck. In addition, employers will not only benefit from a tax credit, but gain dedicated, caring, and hardworking employees who will increase the employers' understanding

of the tremendous contributions made by individuals with developmental disabilities across New York State.

Legislative history

New Bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect January 1, 2015; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date is authorized and directed to be made and completed on or before such effective date.