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 persistent unemployment. by specifically incentivizing the hiring of New York residents who have been unemployed and on public assistance for at least six consecutive months, potentially helping those facing the greatest barriers to re-entering the workforce.
Focuses on small business employment growth. by restricting the credit to businesses with 50 or fewer employees, aiming to encourage hiring in sectors that may be most sensitive to labor costs and less able to absorb the risk of hiring long-term unemployed individuals.
Requires retention and stability. as the tax credit only applies if the new hire is kept in full-time employment for at least one year, promoting not just initial hiring but longer-term job security and workforce integration for disadvantaged workers.
Limits overall state fiscal exposure. by capping the total statewide credit allocation at $15 million per year, balancing the policy goal of promoting employment with the need to manage the impact on state tax revenues.
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Headline styles
Tax Credit for Hiring Unemployed
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to budget and revenue
- Print number 2119b
- Amend and recommit to finance
- Reported and committed to finance
- Print number 2119a
- Amend and recommit to budget and revenue
- Referred to budget and revenue
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 Assembly Committee · Ways And Means · Sponsor Felix Ortiz
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2119--B
2019-2020 Regular Sessions
IN SENATE
January 22, 2019
Introduced by Sen. SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue -committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05841-03-9
S. 2119--B 2
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 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
S. 2119--B 3
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. 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.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to establish- ing the work opportunity tax credit
Purpose or general idea of bill
To provide a state tax credit for small businesses in order to incentiv- ize 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 indi- vidual 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 unemploy- ment by such business for at least one year.
Read the full memo (657 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 indi- vidual 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 unemploy- ment 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, 2020.
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
2017: S.1517 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS 2018: S.1517 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
Fiscal implications
The total amount of the state tax credit is capped at $15 million in the aggregate in a taxable year beginning January 1, 2020.
Effective date
This act shall take effect immediately and apply to taxable years begin- ning on and after January 1, 2020.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.