What's happening
This bill creates a tax credit for small businesses in New York that provide on-the-job training to employees.
Why it matters
Targets small businesses. The credit is only available to businesses with 100 or fewer employees, aiming to support smaller employers who may face more barriers to investing in workforce development.
Encourages formalized, structured training. To qualify, on-the-job training must be documented in an agreement outlining each component and expected outcomes, ensuring that employees receive meaningful, trackable skill development rather than informal or ad hoc instruction.
Covers a broad range of training costs. The credit can be applied to commercial or custom training materials, outside trainers, and even rental of dedicated training space, incentivizing businesses to use high-quality, possibly external resources to upskill their staff.
Limits and flexibility in benefit usage. The credit is capped at $300 per employee per year, preventing large windfalls but providing a tangible incentive. If a business can’t use the full credit in a given year (because it doesn’t owe enough in taxes), it can carry the unused amount forward, making the benefit more accessible to businesses with fluctuating profits.
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Who cares
Headline styles
Tax Credit for Job Training
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
3 Multi-sponsors
History
- Held for consideration in ways and means
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
985
2019-2020 Regular Sessions
IN ASSEMBLY
January 14, 2019
Introduced by M. of A. KOLB, BARCLAY -- Multi-Sponsored by -- M. of A. CROUCH, GIGLIO, WALSH -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a credit for on-the-job training
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 53 to read as follows:
53. Credit for on-the-job training. (a) General. A taxpayer, who has one hundred employees or less, shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article, for providing on-the-job training to an employee.
(b) On-the-job training. On-the-job training shall mean training which is specified in an agreement between the grantee and the employer and includes both work experience and training, formalized in an outline defining each training component and outcomes of the training process.
(c) On-the-job training expenditures. On-the-job training expenditures shall include expenditures for the purchase of either commercial or customized instructional materials including software, texts, manuals or equipment that can be used to simulate job tasks; payments to consultants, trainers, or instructors who are not employees of the firm; and costs associated with the use, rental, or lease of a classroom or other dedicated space for the training.
(d) Amount of credit. A credit shall be allowed for the amount of on-the-job training expenditures incurred by an employer. The amount of credit shall not exceed three hundred dollars per employee for whom such training has been provided during the taxable year in which such expenditures were made.
(e) Carryover. The credit allowed under this subdivision for any taxable year shall not reduce the tax due for such year to less than the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04105-01-9
A. 985 2
amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article. Provided, however, if the amount of credit allowable under this subdivision for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year may be carried over to the following year or years, and may be deducted from the taxpayer's tax for such year or years.
§ 2. 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) Credit for on-the-job Costs under subdivision training under subsection (jjj) fifty-three of
section two hundred ten-B
§ 3. Section 606 of the tax law is amended by adding a new subsection (jjj) to read as follows:
(jjj) Credit for on-the-job training. (1) General. A taxpayer, who has one hundred employees or less, shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article, for providing on-the-job training to an employee.
(2) On-the-job training. On-the-job training shall mean training which is specified in an agreement between the grantee and the employer and includes both work experience and training, formalized in an outline defining each training component and outcomes of the training process.
(3) On-the-job training expenditures. On-the-job training expenditures shall include expenditures for the purchase of either commercial or customized instructional materials including software, texts, manuals or equipment that can be used to simulate job tasks; payments to consultants, trainers, or instructors who are not employees of the firm; and costs associated with the use, rental, or lease of a classroom or other dedicated space for the training.
(4) Amount of credit. A credit shall be allowed for the amount of on-the-job training expenditures incurred by an employer. The amount of credit shall not exceed three hundred dollars per employee for whom such training has been provided during the taxable year in which such expenditures were made.
(5) Carryover. If the amount of credit allowable under this subsection for any taxable year shall exceed the taxpayer's tax for such tax year, the excess may be carried over to the following year or years, and may be deducted from the taxpayer's tax for such year or years.
§ 4. This act shall take effect immediately and shall apply to taxable years beginning on and after the first of January next succeeding the date on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.