What's happening
This bill creates a tax credit for small businesses that hire and retain long-term unemployed New York residents.
Why it matters
Targets prolonged unemployment and poverty. The bill specifically incentivizes hiring individuals who have been New York residents for at least three years, have been unemployed and on public assistance for six consecutive months or more, and are retained for full-time work for at least one year—focusing aid on those facing the longest barriers to employment.
Aims to assist the smallest businesses. Only businesses with 50 or fewer employees can claim the credit, directing the benefit toward small businesses that may have fewer resources to take hiring risks or offer extensive training.
Creates a capped, statewide annual benefit. The total credits available across the state cannot exceed $15 million per year, providing budgetary certainty for the state but potentially limiting access if demand from small businesses is high.
Ensures credit is meaningful, but not unlimited. If the credit exceeds a business’s tax liability, it can be refunded or credited to them (without interest), but it cannot reduce their tax below the minimum set by law, maintaining a baseline tax contribution from all businesses.
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Tax Credit for Hiring Unemployed
Plain English, a few words. Used as the page title.
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History
- Referred 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.
Tax Credit for Hiring Unemployed
In Senate Committee · Budget And Revenue · Sponsor James Sanders Jr.
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8471
2019-2020 Regular Sessions
IN ASSEMBLY
July 8, 2019
Introduced by M. of A. ORTIZ -- read once and referred to the Committee on Ways and Means
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 54 to read as follows:
54. Work opportunity tax credit. (a) Allowance of 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 full-time employment by such business for at least one year.
(b) Application of credit. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the fixed dollar minimum amount 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 or if the taxpayer otherwise pays tax based on the fixed dollar minimum amount, any amount of credit thus not deductible in such taxable year shall 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05841-04-9
A. 8471 2
this chapter notwithstanding, no interest shall be paid thereon. The total amount of credit to be provided statewide for this credit, the credit allowed under subsection (kkk) of section six hundred six of this chapter and subdivision (ee) of section fifteen hundred eleven of this chapter shall not exceed fifteen million dollars in the aggregate in a taxable year.
(c) Credit recapture. For provisions requiring recapture of credit, see section forty-four of this chapter.
§ 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlv) to read as follows:
(xlv) Work opportunity tax credit Amount of credit under under subsection (kkk) subdivision fifty-four of
section two hundred ten-B
§ 3. Section 606 of the tax law is amended by adding a new subsection (kkk) to read as follows:
(kkk) Work opportunity tax credit. (1) Allowance of 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.
(2) Application of credit. If the amount of the credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, the excess shall 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 shall be paid thereon. The total amount of credit to be provided statewide for this credit, the credit allowed under subdivision fifty-four of section two hundred ten-B of this chapter and subdivision (ee) of section fifteen hundred eleven of this chapter shall not exceed fifteen million dollars in the aggregate in a taxable year.
(3) Credit recapture. For provisions requiring recapture of credit, see section forty-four of this chapter.
§ 4. Section 1511 of the tax law is amended by adding a new subdivision (ee) to read as follows:
(ee) Work opportunity tax credit. (1) Allowance of 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 full-time employment by such business for at least one
A. 8471 3
year. The total amount of credit to be provided statewide shall not exceed fifteen million dollars in a taxable year.
(2) Application of credit. The credit allowed under this subdivision shall not reduce the tax due for such year to be less than the minimum fixed by paragraph four of subdivision (a) of section fifteen hundred two or section fifteen hundred two-a of this article, whichever is applicable. However, if the amount of the credit allowed under this subdivision for any taxable year reduces the taxpayer's tax to such amount, any amount of credit thus not deductible 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 one thousand eighty-eight of this chapter notwithstanding, no interest shall be paid thereon. The total amount of credit to be provided statewide for this credit, the credit allowed under subdivision fifty-four of section two hundred ten-B of this chapter and subdivision (kkk) of section six hundred six of this chapter shall not exceed fifteen million dollars in the aggregate in a taxable year.
(3) Credit recapture. For provisions requiring recapture of credit, see section forty-four of this chapter.
§ 5. This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2020 and shall apply to eligible individuals hired on and after such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
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