Creates a jobs development incentive income tax credit available to employers who employ individuals previously receiving unemployment

1 Co-sponsor

• Rich Funke

BILL NUMBER:S3701

Title of bill

An act to amend the tax law, in relation to a jobs development incentive income tax credit available to employers who employ individuals previously receiving unemployment benefits

Purpose

This bill would give incentives, through income tax credits, to businesses who hire individuals currently receiving unemployment benefits.

Summary of specific provisions

SECTION 1- amends Tax Law Section 210 relating to franchise taxes on business corporations, to add a new subdivision 49 granting an employment incentive tax credit. The credit is in the amount of $2,400 for each creditable employee, as defined in the section.

SECTION 2 - amends Tax Law Section 606, relating to personal income taxes, by adding a new subsection (ccc) granting an employee incentive tax credit in the amount of $2,400 per creditable employee, as defined in the section.

SECTION 3 - amends subparagraph (B) of paragraph 1 of subsection (i) of Section 606 of the Tax Law, relating to S corporations, by adding a new clause (xli) providing for an employment incentive tax credit under subsection (xx) in the amount of the credit under subdivision 48 of Section 210.

SECTION 4 - Effective date.

Current law

There are many tax credits available to individuals and businesses to promote activities that benefit the state economy.

Justification

The economic meltdown that has engulfed the world's economy has left businesses in New York struggling to survive, and tens of thousands of workers on unemployment. The state needs to act to help employers and to return unemployed individuals to work. This bill accomplishes both of these purposes. The bill offers incentives to employers to rehire workers who have lost their jobs and are on unemployment.

This bill offers tax credits of up to $2,400 per employee to employers, whether corporate, individual or an S corporation, for hiring unemployed persons who meet specified criteria. Both of these credits offer an additional incentive to employers to take the risk and increase their workforce.

This bill offers meaningful incentive to hire new employees from the ranks of the unemployed, and offers new employment opportunity to individuals.

Fiscal implications

To be determined.

Legislative history

2009-10 - S.5264-B/A.10085-B -- LABOR/Labor 2011-12 - S.3999-A/A.10121 - PASSED SENATE/Labor 2013-14 - S.2117-B/A.806-B - INVESTIGATIONS/Labor

Effective date

This act shall take effect immediately.