What's happening
This bill creates a job creation tax credit for New York employers who hire new full-time employees, with higher credits for hiring the unemployed or manufacturing workers.
Why it matters
Incentivizes sustainable, not short-term, job growth. The credit only applies to “net new” full-time jobs filled for at least six months, and employers cannot simply replace existing staff with new hires to claim the benefit. This aims to foster actual expansion of the workforce rather than job churn.
Prioritizes hiring the long-term unemployed and manufacturing workers. Employers get double the tax credit (12% of first six months’ wages, up to $1,500) for hiring individuals who have been on unemployment for at least 13 weeks or for hires in eligible manufacturing and related industries, encouraging targeted economic support.
Limits windfall for large employers, focuses on small to medium business growth. Each business may only claim the credit for up to 30 new employees per tax year, preventing large companies from disproportionately benefiting and aiming to support broader, distributed job creation.
Offers refundable credits, providing immediate cash flow support. If the credit exceeds the employer’s tax liability, the excess is refunded (though without interest), enhancing the value of the credit for businesses that may not owe significant taxes—often the case for newer or growing firms.
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Create Job Tax Credit
Plain English, a few words. Used as the page title.
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History
- Referred to ways and means
- Print number 8049a
- Amend and recommit to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Create Jobs Tax Credit
In Senate Committee · Finance · Sponsor Fredrick J. Akshar II
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8049--A
2017-2018 Regular Sessions
IN ASSEMBLY
May 25, 2017
Introduced by M. of A. FAHY -- read once and referred to the Committee on Ways and Means -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to establishing a job creation tax credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 44 to read as follows:
§ 44. Job creation tax credit. (a) Allowance of credit. For taxable years beginning on or after January first, two thousand eighteen, a taxpayer subject to tax under article nine-A or twenty-two of this chapter shall be allowed a credit, to be computed as provided in this section, against the tax imposed by this article, for each net new job created, for each qualified employee within the state. The taxpayer may claim the credit in the year in which the qualified employee completes six months of employment. A taxpayer may only claim the credit once for each qualified employee and may only claim a tax credit for a maximum of thirty qualified employees in each taxable year. If the taxpayer claims the credit allowed under this section, the taxpayer may not use the hiring of a qualified employee that is the basis for this credit in the basis of any other credit allowed under this article.
(b) Qualified employee. A qualified employee is an individual who commences employment by the qualified taxpayer on or after January first, two thousand eighteen.
(c) Net new job. "Net new job" means jobs created in this state that (1) are new to the state, (2) have not been transferred from employment with another business that is a related person, (3) are either full-time wage-paying jobs or equivalent to a full-time wage-paying job requiring at least thirty-five hours per week, and (4) are filled for more than six months.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06532-05-7
A. 8049--A 2
(d) Employer prohibition. An employer shall not discharge an employee and hire a qualifying employee solely for the purpose of qualifying for this credit.
(e) Amount of credit. The amount of the credit shall be six percent of the total amount of wages paid to the qualified employee during the employee's first six months of employment. Provided, however, that, if the qualified employee was receiving unemployment insurance benefits at the time of hire for a minimum of thirteen weeks or is employed directly in the manufacturing process in an eligible industry, the amount of the credit shall be twelve percent of the total amount of wages paid to the qualified employee during the employee's first six months of employment. The credit allowed pursuant to this subsection shall not exceed in any taxable year, seven hundred fifty dollars for any qualified employee and one thousand five hundred dollars for any qualified employee who was receiving unemployment insurance benefits at the time of hire for a minimum of thirteen weeks or who is employed directly in the manufacturing process in an eligible industry.
(f) Eligible industry. An eligible industry is a business principally engaged in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horticulture, floriculture, viticulture or commercial fishing.
§ 2. Section 210-B of the tax law is amended by adding a new subdivision 53 to read as follows:
53. Job creation tax credit. (a) Allowance of credit. A taxpayer will be allowed a credit, to be computed as provided in section forty-four of this chapter, against the tax imposed by this article.
(b) Application of credit. The credit allowed under this subdivision for any taxable year may not reduce the tax due for such year to less than the higher of the amounts prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. However, if the amount of credit allowed under this subdivision for any taxable year reduces the tax to such amount, any amount of credit thus not deductible in such taxable year will be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section one thousand eighty-six of this chapter. Provided, however, the provisions of subsection (c) of section one thousand eighty-eight of this chapter notwithstanding, no interest will be paid thereon.
§ 3. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Job creation tax credit. (1) A taxpayer will be allowed a credit, to the extent allowed under section forty-four of this chapter, against the tax imposed by this article.
(2) If the amount of the credit allowed under this subsection for any taxable year exceeds the taxpayer's tax for such year, the excess will be treated as an overpayment of tax to be credited or refunded in accordance with the provisions of section six hundred eighty-six of this article, provided, however, that no interest will be paid thereon.
§ 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliv) to read as follows: (xliv) Job creation tax credit Amount of credit under under subsection (ccc) subdivision fifty-three of section
two hundred ten-B
§ 5. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2018.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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