What's happening
This bill creates a tax credit for small businesses that hire employees aged 65 or older who meet specific work and income criteria.
Why it matters
Encourages workforce participation among seniors. By providing a tax credit specifically for hiring people aged 65+, this bill incentivizes small businesses to employ older adults, potentially helping seniors stay active in the workforce and maintain financial independence.
Sets clear eligibility and employment standards. The credit only applies if the employee works at least 35 hours per week, earns less than $75,000 annually, and stays with the employer for at least 12 months, aiming to create stable, long-term job opportunities rather than short-term or token hires.
Targets true small businesses and manages state cost. Only businesses with 100 or fewer employees are eligible, focusing support on small enterprises. The total annual tax credit available is capped at $10 million, limiting the fiscal impact on the state budget.
Allows flexibility for businesses through credit carryover. If a business cannot use the full credit in the first year, they can roll over the unused portion for up to five subsequent years, making the benefit accessible to small businesses with fluctuating tax burdens.
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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 budget and revenue
- Print number 3883c
- Amend and recommit to budget and revenue
- Print number 3883b
- Amend and recommit to budget and revenue
- Print number 3883a
- 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 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
3883--C
2019-2020 Regular Sessions
IN SENATE
February 20, 2019
Introduced by Sens. STAVISKY, SEPULVEDA -- 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 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
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 54 to read as follows:
54. 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, earns less than seventy-five thousand dollars annually, 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 two thousand five hundred dollars per hired person age sixty-five or older but shall not exceed ten million dollars annually.
(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.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02681-07-9
S. 3883--C 2
§ 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) Small business tax credit; Costs under subdivision persons sixty-five years of age or fifty-four of section older under subsection (kkk) two hundred ten-B
§ 3. Section 606 of the tax law is amended by adding a new subsection (kkk) to read as follows:
(kkk) 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, earns less than seventy-five thousand dollars annually 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 two thousand five hundred dollars per hired person age sixty-five or older but shall not exceed ten million dollars annually.
(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, 2020.
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 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 employ- ment 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 cred- it 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 unem- ployed 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. Home values, often a family's most important asset, have plummeted. Addi- tionally, 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
2018: S 5236 - referred to Investigations and Government Operations
Difference between original and amended versions
The amended version caps the total expenditure at $10M annually, reduces the credit per employee to $2,500, and only allows employees 65 or older earning less than $75k to be eligible for employers to receive the cred- it.
Fiscal implications
$10M or less annually.
Effective date
Shall take effect immediately and apply to taxable years beginning on or after January 1, 2020
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.