What's happening
This bill creates a $2,400 tax credit for small businesses that hire and retain long-term unemployed New York residents.
Why it matters
Targets those most in need of work. The tax credit specifically incentivizes hiring individuals who have been unemployed and receiving public assistance for at least six consecutive months, helping to address long-term unemployment among New York residents.
Supports small businesses. Only businesses with 50 or fewer employees are eligible, focusing the benefit on small enterprises that may face greater financial barriers to expanding their workforce.
Encourages stable, long-term employment. To qualify for the credit, employers must retain the new hire in full-time employment for at least one year, promoting job stability rather than short-term or temporary hiring.
Aims to reduce reliance on public assistance. By prioritizing hires from the population receiving public assistance, the bill seeks to help individuals transition into self-sufficiency and potentially reduce state expenditures on welfare programs.
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Who cares
Headline styles
Tax Credit for Hiring Unemployed
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to investigations and government operations
- Referred to investigations and government operations
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1517
2017-2018 Regular Sessions
IN SENATE
January 10, 2017
Introduced by Sen. AVELLA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to establishing the work opportunity tax credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 210-B of the tax law is amended by adding a new subdivision 49 to read as follows:
49. Work opportunity tax credit. A taxpayer shall be allowed a credit, against the tax imposed by this article, of two thousand four hundred dollars for each long term unemployed person hired during a taxable year. Such tax credit shall be applicable only to businesses employing fifty or fewer employees. For the purposes of this subdivision, a "long term unemployed person" shall be an individual who has been a resident of New York for three years immediately preceding hiring and who, prior to being hired by the business eligible for the credit established pursuant to this subdivision, had been unemployed and receiving public assistance for six consecutive months or more, and is retained for fulltime employment by such business for at least one year.
§ 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliii) to read as follows:
(xliii) Work opportunity tax credit Amount of credit under under subsection (ccc) subdivision forty-nine of
section two hundred ten-B
§ 3. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01203-01-7
S. 1517 2
(ccc) Work opportunity tax credit. A taxpayer shall be allowed a credit, against the tax imposed by this article, of two thousand four hundred dollars for each long term unemployed person hired during a taxable year. Such tax credit shall be applicable only to businesses employing fifty or fewer employees. For the purposes of this subdivision, a "long term unemployed person" shall be an individual who has been a resident of New York for three years immediately preceding hiring and who, prior to being hired by the business eligible for the credit established pursuant to this subsection, had been unemployed and receiving public assistance for six consecutive months or more, and is retained for full-time employment by such business for at least one year.
§ 4. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2018.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establishing the work opportunity tax credit
Purpose or general idea of bill
To provide a tax credit for small businesses in order to incentivize the hiring of long term unemployed persons.
Summary of provisions
Section one of the bill amends section 210-B of the tax law by adding a new subdivision 49, which establishes the work opportunity tax credit. It provides that a taxpayer shall be allowed a credit of two thousand four hundred dollars for each long term unemployed person hired during a taxable year. The credit is applicable to businesses that have fifty or fewer employees. A "long term unemployed person" is defined as an individual who has been a resident of New York for three years immediately preceding hiring and who, prior to being hired by the business eligible for the credit, had been unemployed and receiving public assistance for six consecutive months or more, and is retained for full-time unemployment by such business for at least one year.
Read the full memo (619 words)
Section two amends subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law by adding a new clause to establish the work opportunity tax credit.
Section three amends section 606 of the tax law by adding a new subsection (ccc), which establishes the work opportunity tax credit. It provides that a taxpayer shall be allowed a credit of two thousand four hundred dollars for each long term unemployed person hired during a taxable year. The credit is applicable to businesses that have fifty or fewer employees. A "long term unemployed person" is defined as an individual who has been a resident of New York for three years immediately preceding hiring and who, prior to being hired by the business eligible for the credit, had been unemployed and receiving public assistance for six consecutive months or more, and is retained for full-time unemployment by such business for at least one year.
Section four establishes that this act shall take effect immediately and apply to taxable years beginning on and after January 1, 2018.
Justification
As our economy continues to recover from the Great Recession, the long-term unemployment rate has remained unacceptably high. Studies across the board show that those who have been unemployed for a longer period of time have a much harder chance of landing that next job. Current statistics from the U.S Bureau of Labor reflect that the number of long-term unemployed persons remains at levels more than twice as high as those prior to the Great Recession. The problem is far-reaching with national unemployment rates revealing that despite recent job growth, the long-term unemployed continue to make up approximately 30% of the unemployed in all age and education ranges.
At the same time, studies have shown that one of the keys to economic growth lies within small businesses. The growth of small businesses is critical to ensuring continued innovation and opportunity, all the while diversifying our economy. Small businesses are the engine behind job expansion and a strong economy.
This legislation aims to address two issues: long-term unemployment, and small business growth. By providing a tax credit to small businesses for each long-term unemployed individual they hire and retain as a new employee, this bill will ultimately spur job creation, provide an added incentive to hire an individual who has had more difficulty finding work than others, and provide much-needed tax relief to small businesses.
Prior legislative history
None.
Fiscal implications for state and local governments
None.
Effective date
This act shall take effect immediately and apply to taxable years beginning on and after January 1, 2018.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.