Establishes a small business tax credit for the employment of persons sixty-five years of age and older

Title of bill

An act to amend the tax law, in relation to establishing a small business tax credit for the employment of persons sixty-five years of age or older

Purpose

To stimulate employment of persons sixty-five or older who face unprecedented challenges in reentering the workforce or continuing employment.

Summary of provisions

Section 1: Amendment to section 210-B, subdivision 51 of the tax law, for the providence of a business tax credit for the employer in regards to employment of persons age sixty-five or older for the duration of twelve months or more, and for thirty-five hours or more per week. Tax credit range will range between five thousand to twenty-five thousand dollars.

Section 2: The adoption of a new clause (xliii) in section 606 of the tax law, specifying preceded amendment.

Section 3: Amendment to section 606 of the tax law, detailing the components of the business tax credit for the employment of persons sixty-five or older in a company of one hundred employees or less.

Justification

Although the rate of unemployment among older workers is lower than that for their younger counterparts, as explained by the Bureau of Labor Statistics, older persons who do become unemployed spend more time searching for work. A February 2010 study found older workers were unemployed for an average of thirty-six weeks, compared to twenty-three weeks for persons aged sixteen through twenty-four, and thirty weeks for persons aged twenty-five through fifty-four. Older workers often encounter challenges when trying to remain or reengage in the work force. Many of these challenges stem from policies that were created years ago when there was a labor surplus, before the recent shifts to a knowledge-based economy and trends in population demographics.

As cost-of-living expenses increase, the financial needs and desires of older workers is compromised, leaving older workers no other viable option but to return to the workforce or continue employment. Some values, often a family's most important asset, have plummeted. Additionally, an April 2010 Gallup poll found more than a third of people plan to work beyond age sixty-five, compared to twelve percent in 1995.

Offering tax credit incentives to small businesses that employ persons ages sixty-five or older will keep older residents from leaving the state, whereby further contributing to the economic upheaval of the state and the sharing of wisdom from an older workforce to a younger generation.

Legislative history

This legislation was previously introduced.

Fiscal implications

To be determined. EFFECTIVE DATE : Shall take effect immediately and apply to taxable years beginning on or after January 1, 2017.