Provides for a corporate franchise tax credit for employee training expenses in an eligible business facility

1 Co-sponsor

• Adriano Espaillat

Title of bill

An act to amend the tax law, in relation to providing for a tax credit for certain training or retraining expenses incurred by a taxpayer subject to the provisions of article 9-A of such law

Purpose of the bill

Provides for a corporate franchise tax credit for employee training expenses in an eligible business facility.

Summary of specific provisions

§ 1 - Amends subdivision 1 of § 210-B of the tax law by adding a new paragraph (g) which allows for a tax credit in the amount equal to 5% of the expenditures paid or incurred by a taxpayer for training or retraining of employees, pursuant to Department of Labor review.

§ 2 - Effective date.

Justification

More so than ever, reports and newspaper articles are documenting the shortages in today's job market of skilled employees. A combination of high automation levels in the workplace and low employee language skills have resulted in a major schism between job demand and supply. Some corporations are claiming that fewer than 30% of employment candidates met entry level skill and ability requirements. This legislation offers encouragement to employers to invest in the training of their employees. Patterned after the Investment Tax Credit, this legislation allows the same tax credit (5%) for the development of people as for the development of capital improvements.

Prior legislative history

2013-14: S.528 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS 2011-2012: S.5351/A.3417 2009-2010: A.2897/S.4106 2007-2008: A.29S6/S.1913 2005-2006: A.3191/S.5022 2003-2004: A.3401 2001-2002: A.946/S.756 1999-2000: A.353/S.4473

Fiscal implications

Undetermined.

Effective date

This act shall take effect immediately.