Establishes the capital investment jobs retention program

BILL NUMBER:S822

Title of bill

An act to amend the economic development law and the tax law, in relation to establishing the capital investment jobs retention program

Purpose or general idea of bill

This bill establishes the capital Investment Jobs Retention Program, authorizing a refundable tax credit to be claimed by eligible, participating businesses in the event of significant capital investments and job retention.

Summary of specific provisions

Section 1 amends the economic development law by adding a new article 21, titled the Capital Investment Jobs Retention Program, sections 440-449.

Section 440 cites the short titled of this article.

Section 441 defines the terms used in this article.

Section 442 outlines the eligibility criteria for this program, stating that an investment of at least fifty million dollars in fixed-assets for a manufacturing firm or twenty million in fixed-assets for a significant corporate administrative function must be completed within three consecutive calendar years preceding the taxable year in which such participant first claims the credit.

Section 442 additionally explains the job retention requirements of this tax credit, so that in order to participate, a business entity operating in one of the strategic industries listed must employ at least two hundred full-time equivalent jobs at the project site during the time for which the tax credit is granted and shall continue to employ this number for the duration of the agreement outlined with the Empire State Development Corporation.

Section 443 outlines the application and approval process for this program.

Section 444 outlines the credit: a participant in this program shall be eligible to claim a refundable credit for the impacted jobs, the amount of such credit shall be equal to seventy-five percent of the NY state income taxes withheld from eligible full-time employees.

Section 445 outlines the powers and duties of the Commissioner of the Department of Economic Development in administering this program.

Section 446 details the maintenance of records on this program.

Section 447 outlines the reporting requirements for businesses to receive this tax credit.

Section 448 outlines the cap on the tax credit for the years 2013-2017.

Section 449 details the penalties involved with failure to comply with the terms of this program.

Justification

While a focus on job creation is key to New York state's economic future, so too is the retention of existing jobs that fuel our present economy. The Capital Investment Job Retention program is designed to attract large-scale capital investment projects at existing facilities, while maintaining a significant job retention level.

Prior legislative history

2012: S.7653 Referred to Rules

Fiscal implications

Up to $33 million over a 5 year period could possibly be allocated to this program through the Empire State Development Corporation.

Effective date

This act shall take effect immediately; provided however that sections two, three, four, five, six and seven of this act shall apply to taxable years beginning on and after January 1, 2014.