What's happening
This bill creates a $2,400 tax credit for New York employers who hire and retain individuals previously receiving unemployment benefits for at least two years.
Why it matters
Targets long-term, full-time employment for former unemployment recipients. The credit is only available if the new hire is retained for at least 24 consecutive months at 30+ hours per week, incentivizing not just hiring but long-term, stable employment for people who had been unemployed.
Encourages real job growth, not just replacement hiring. Only “new employees” that increase the employer’s workforce above its 2019 (or “base year”) average count qualify, so employers can’t claim credits by simply replacing existing staff.
Supports workforce reintegration and upskilling. The bill includes not just those actively receiving unemployment, but also those who have completed certain state-approved job training programs, potentially helping individuals transition to new careers.
Limits fiscal impact and ensures future use. The credit can only reduce a business’s tax liability for the current year (not retroactively), but any unused portion can be carried forward for up to five years, encouraging continued participation without an immediate large hit to state revenues.
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Who cares
Employers expanding their workforce
The bill would offer a $2,400 tax credit for each qualifying new hire retained for 24 consecutive months at at least 30 hours per week.
New Yorkers receiving unemployment benefits
The credit would give employers an incentive to hire qualifying workers who have received benefits for at least two months and are still receiving them when hired.
Graduates of Labor Law Section 599 training programs
Successful completion of these programs would provide an alternative route to qualifying for the hiring incentive, subject to the bill’s other requirements.
State tax administrators
The bill would require the tax commissioner to adopt rules governing how employers claim and receive the credit.
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
- Referred to budget and revenue
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4857
2019-2020 Regular Sessions
IN SENATE
March 27, 2019
Introduced by Sens. RANZENHOFER, FUNKE -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to a jobs development incentive income tax credit available to employers who employ individuals previously receiving unemployment benefits
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. Jobs development incentive tax credit. (a) A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article in the amount prescribed by this subdivision where such taxpayer employs one or more creditable employee.
(b) The amount of the credit shall be two thousand four hundred dollars for each creditable employee.
(c) For the purposes of this subdivision, "creditable employee" shall mean a new employee of an employer who:
(i) is employed by the employer for the first time on or after the effective date of this subdivision;
(ii) has filed a claim for unemployment compensation in this state;
(iii) has received unemployment benefits in this state for at least two months;
(iv) is currently receiving unemployment compensation benefits as of the date of employment; and
(v) such benefits are chargeable to the experience rating account of an employer under this article; or
(vi) has successfully completed a training program pursuant to section five hundred ninety-nine of the labor law; and
(vii) performs services in accordance with subdivision one, two or four of section five hundred eleven of the labor law;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10280-02-9
S. 4857 2
(viii) remains employed by the employer for at least twenty-four consecutive months; and
(ix) during the entire period such employment shall consist of at least thirty hours per week.
(d) For the purposes of this section the following terms shall have the following meanings:
(i) "new employee" shall mean any full time employee that causes the total number of employees to increase above base employment or credit employment, whichever is higher.
(ii) "base year" shall mean calendar year two thousand nineteen.
(iii) "base employment" shall mean the average number of full-time employees or full-time equivalent employees during the base year. For a new business, base employment shall begin at zero.
(iv) "credit employment" shall mean base employment plus the number of new employees for which a credit is earned.
(e) An employer who has one or more creditable employees shall be eligible to apply for and receive the credit established in this subdivision. Eligibility for the credit shall be established as of the time the creditable employee completes twenty-four consecutive months of employment, and the credit shall be claimed for the taxable year in which the twenty-fourth month of such employment is completed.
(f) In no event shall the total amount of any tax credit under this subdivision for a taxable year exceed the taxpayer's income tax liability. Any unused tax credit shall be allowed to be carried forward to apply to the taxpayer's succeeding five years' tax liability. No such tax credit shall be allowed the taxpayer against prior years' tax liability.
(g) The credit shall be claimed and granted in such manner as shall be specified by rules adopted by the commissioner.
§ 2. Section 606 of the tax law is amended by adding a new subsection (jjj) to read as follows:
(jjj) Jobs development incentive tax credit. (1) A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article in the amount prescribed by this subsection where such taxpayer employs one or more creditable employee.
(2) The amount of the credit shall be two thousand four hundred dollars for each creditable employee.
(3) For the purposes of this subsection, "creditable employee" shall mean a new employee of an employer who:
(A) is employed by the employer for the first time on or after the effective date of this subsection;
(B) has filed a claim for unemployment compensation in this state;
(C) has received unemployment benefits in this state for at least two months;
(D) is currently receiving unemployment compensation benefits as of the date of employment; and
(E) such benefits are chargeable to the experience rating account of an employer under this article; or
(F) has successfully completed a training program pursuant to section five hundred ninety-nine of the labor law; and
(G) performs services in accordance with subdivision one, two or four of section five hundred eleven of the labor law;
(H) remains employed by the employer for at least twenty-four consecutive months; and
(I) during the entire period such employment shall consist of at least thirty hours per week.
S. 4857 3
(4) For the purposes of this subsection the following terms shall have the following meanings:
(A) "new employee" shall mean any full time employee that causes the total number of employees to increase above base employment or credit employment, whichever is higher.
(B) "base year" shall mean calendar year two thousand nineteen.
(C) "base employment" shall mean the average number of full time employees or full time equivalent employees during the base year. For a new business, base employment shall begin at zero.
(D) "credit employment" shall mean base employment plus the number of new employees for which a credit is earned.
(5) An employer who has one or more creditable employees shall be eligible to apply for and receive the credit established in this subsection. Eligibility for the credit shall be established as of the time the creditable employee completes twenty-four consecutive months of employment, and the credit shall be claimed for the taxable year in which the twenty-fourth month of such employment is completed.
(6) In no event shall the total amount of any tax credit under this subsection for a taxable year exceed the taxpayer's income tax liability. Any unused tax credit shall be allowed to be carried forward to apply to the taxpayer's succeeding five years' tax liability. No such tax credit shall be allowed the taxpayer against prior years' tax liability.
(7) The credit shall be claimed and granted in such manner as shall be specified by rules adopted by the commissioner.
§ 3. 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) Jobs development incentive Amount of credit under tax credit under subsection (jjj) subdivision fifty-three of section
two hundred ten-B of this chapter
§ 4. This act shall take effect immediately.
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 a jobs development incentive income tax credit available to employers who employ individuals previously receiving unemployment benefits
Purpose
This bill would give incentives, through income tax credits, to busi- nesses who hire individuals currently receiving unemployment benefits.
Summary of specific provisions
Section 1- amends Tax Law Section 210-B relating to franchise taxes on business corporations, to add a new subdivision 53 granting an employ- ment incentive tax credit. The credit is in the amount of $2,400 for each creditable employee, as defined in the section.
Section 2 - amends Tax Law Section 606, relating to personal income taxes, by adding a new subsection (ccc) granting an employee incentive tax credit in the amount of $2,400 per creditable employee, as defined in the section.
Section 3 - amends subparagraph (B) of paragraph 1 of subsection (i) of Section 606 of the Tax Law, relating to S corporations, by adding a new clause (xliv) providing for an employment incentive tax credit under subsection (xx) in the amount of the credit under subdivision 53 of Section 210-B.
Section 4 - Effective date.
Current law
There are many tax credits available to individuals and businesses to promote activities that benefit the state economy.
Justification
The economic meltdown that has engulfed the world's economy has left businesses in New York struggling to survive, and tens of thousands of workers on unemployment. The state needs to act to help employers and to return unemployed individuals to work. This bill accomplishes both of these purposes. The bill offers incentives to employers to rehire work- ers who have lost their jobs and are on unemployment.
HIRE UNEMPLOYED TAX INCENTIVE
This bill offers tax credits of up to $2,400 per employee to employers, whether corporate, individual or an S corporation, for hiring unemployed persons who meet specified criteria. Both of these credits offer an additional incentive to employers to take the risk and increase their workforce.
This bill offers meaningful incentive to hire new employees from the ranks of the unemployed, and offers new employment opportunity to indi- viduals.
Fiscal implications
To be determined.
Legislative history
2009-10 - S.5264-B/A.10085-B -- LABOR/Labor 2011-12 - S.3999-A/A.10121 - PASSED SENATE/Labor 2013-14 - S.2117-B/A.806-B - INVESTIGATIONS/Labor 2015-16 - S.3701/A.6538 - INVESTIGATIONS/Labor 2017 - S.3783/A.6133 - INVESTIGATIONS/Labor 2018 - S.3783-A/A.6133-A - INVESTIGATIONS/Labor
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.