What's happening
This bill creates a tax credit for small businesses that hire and retain employees aged 65 or older for at least a year.
Why it matters
Encourages workforce participation of older adults. , potentially helping seniors who want or need to remain employed by making them more attractive hires for small businesses.
Targets small businesses (≤100 employees). , which may have fewer resources to offer incentives or absorb the perceived risks of hiring older workers, thereby leveling the playing field with larger employers.
Promotes employee retention. by requiring that the new hire works at least 35 hours per week and remains employed for at least 12 months, aiming to foster stable, long-term employment relationships rather than short-term or token hires.
Limits and structure of the credit (up to $25,000 per business, $5,000 per qualifying hire). ensure the program is meaningful but not open-ended, balancing business benefits with fiscal responsibility and preventing abuse.
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Who cares
Headline styles
Tax Credit for Hiring Seniors
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to investigations and government operations
- Referred to investigations and government operations
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.
Tax Credit for Hiring Seniors
In Assembly Committee · Ways And Means · Sponsor Edward Braunstein
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5236
2017-2018 Regular Sessions
IN SENATE
March 16, 2017
Introduced by Sen. STAVISKY -- 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 a small business tax credit for the employment of persons sixty-five years of age or older
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. Small business tax credit; persons age sixty-five or older. (a) General. A taxpayer who has one hundred employees or less, shall be allowed a credit, to be computed as provided in this subdivision, against the tax imposed by this article for each person age sixty-five or older hired during a taxable year, provided that such person age sixty-five or older is employed for thirty-five hours or more per week and remains in the employ of such taxpayer for twelve months or more.
(b) Amount of credit. A credit authorized by this section shall equal five thousand dollars per hired person age sixty-five or older but shall not exceed twenty-five thousand dollars.
(c) Carryovers. The credit allowed under this subdivision may be claimed and if not fully used in the initial year for which the credit is claimed may be carried over, in order, to each of the five succeeding taxable years. The credit authorized by this subdivision may not be used to reduce the tax liability of the credit claimant below zero.
§ 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) Small business tax credit; Costs under subdivision persons sixty-five years of age or forty-nine of section older under subsection (ccc) two hundred ten-B
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01689-01-7
S. 5236 2
§ 3. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows:
(ccc) Small business tax credit; persons age sixty-five or older. (a) General. A taxpayer who has one hundred employees or less, shall be allowed a credit, to be computed as provided in this subsection, against the tax imposed by this article for each person age sixty-five or older hired during a taxable year, provided that such person age sixty-five or older is employed for thirty-five hours or more per week and remains in the employ of such taxpayer for twelve months or more.
(b) Amount of credit. A credit authorized by this section shall equal five thousand dollars per hired person age sixty-five or older but shall not exceed twenty-five thousand dollars.
(c) Carryovers. The credit allowed in this subsection may be claimed and if not fully used in the initial year for which the credit is claimed may be carried over, in order, to each of the five succeeding taxable years. The credit authorized by this subsection may not be used to reduce the tax liability of the credit claimant below zero.
§ 4. 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.
Sponsor's memo
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 of the tax law is amended by adding a new subdivision 49.
Provides for a business tax credit for the employer in regard 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: Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliii).
Section 3: Section 606 of the tax law is amended Amendment to section 606 of the tax law, detailing the compo- nents 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 bill 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, 2018.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.