STATE OF NEW YORK ________________________________________________________________________ 6685 2017-2018 Regular Sessions IN ASSEMBLY March 15, 2017 ___________ Introduced by M. of A. CRESPO -- Multi-Sponsored by -- M. of A. MOYA, RAMOS, RIVERA, RODRIGUEZ -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing a hire-now tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 43 to read 2 as follows: 3 § 43. Hire-Now tax credit. (a) Allowance of credit. A taxpayer, which 4 is subject to tax under article nine-A or twenty-two of this chapter and 5 which creates a new job, shall be allowed a credit against such tax. The 6 amount of the credit allowed under this section shall be equal to the 7 product of 6.85 percent and the gross wages paid for each new employee. 8 The credit shall not be more than five thousand dollars for any new 9 employee for one full year of employment; if a new employee has been 10 hired for less than a full tax year this amount shall be prorated and 11 apportioned to each tax year but shall in no way decrease the full three 12 consecutive years of credit eligibility. The taxpayer may claim this 13 credit for each new employee for a period of three consecutive years of 14 employment. The taxpayer may offset quarterly estimated tax returns 15 with the amount of this credit earned in any previous quarter. 16 (b) Unemployment enhancement. For calendar years two thousand seven- 17 teen and two thousand eighteen if a new employee was receiving unemploy- 18 ment insurance benefits at the time of hire, an additional three thou- 19 sand dollar credit will be allowed for the first full year of 20 employment. 21 (c) Definitions. As used in this section, the following terms shall 22 have the following meanings: 23 (1) "New employee" shall mean any full time employee that is hired by 24 the taxpayer after July first, two thousand seventeen and before April EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00816-02-7

A. 6685 2 1 first, two thousand eighteen, that causes the total number of employees 2 to increase above base employment or credit employment, whichever is 3 higher. 4 (2) "Base year" shall mean calendar year two thousand fifteen. 5 (3) "Base employment" shall mean the average number of full time 6 employees or full time equivalent employees during the base year. For a 7 new business, base employment shall begin at zero. 8 (4) "Credit employment" shall mean base employment plus the number of 9 new employees for which a credit is earned for the prior tax years. 10 (d) Replacement employees. If a new employee for which a credit was 11 earned leaves the payroll and an employee is hired which brings total 12 employment above base employment but at or below credit employment 13 level, the credit eligibility period for such employee shall be three 14 years minus the amount of time (rounded to the next full month) the 15 employer received the credit for the departing employee. 16 (e) No credit shall be allowed under this section to a taxpayer for 17 any new employee if the taxpayer claims any other credit under this 18 article for such new employee where the basis of such other credit is an 19 increase in employment. 20 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 21 sion 49 to read as follows: 22 49. Hire-Now tax credit. (a) Allowance of credit. A taxpayer will be 23 allowed a credit, to be computed as provided in section forty-two of 24 this chapter, against the tax imposed by this article. 25 (b) Application of credit. The credit allowed under this subdivision 26 for any taxable year may not reduce the tax due for such year to less 27 than the higher of the amounts prescribed in paragraph (d) of subdivi- 28 sion one of section two hundred ten of this article. However, if the 29 amount of credit allowed under this subdivision for any taxable year 30 reduces the tax to such amount, any amount of credit thus not deductible 31 in such taxable year will be treated as an overpayment of tax to be 32 credited or refunded in accordance with the provisions of section one 33 thousand eighty-six of this chapter. Provided, however, the provisions 34 of subsection (c) of section one thousand eighty-eight of this chapter 35 notwithstanding, no interest will be paid thereon. 36 § 3. Section 606 of the tax law is amended by adding a new subsection 37 (ccc) to read as follows: 38 (ccc) Hire-Now tax credit. (1) A taxpayer will be allowed a credit, to 39 the extent allowed under section forty-three of this chapter, against 40 the tax imposed by this article. 41 (2) Application of credit. If the amount of the credit allowed under 42 this subsection for any taxable year exceeds the taxpayer's tax for such 43 year, the excess will be treated as an overpayment of tax to be credited 44 or refunded in accordance with the provisions of section six hundred 45 eighty-six of this article, provided, however, that no interest will be 46 paid thereon. 47 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 48 of the tax law is amended by adding a new clause (xliii) to read as 49 follows: 50 (xliii) Hire-Now tax credit Amount of credit under 51 under subsection (ccc) subdivision forty-nine of section 52 two hundred ten-B 53 § 5. This act shall take effect immediately.

Establishes a hire-now tax credit

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