What's happening
This bill creates a tax credit for New York employers who create new jobs and hire qualified employees, starting January 1, 2020.
Why it matters
Targets true job growth. by requiring that new jobs be genuinely “net new” to New York, not transferred from related businesses or replacing existing employees, ensuring the credit supports actual employment expansion rather than reshuffling existing positions.
Prioritizes hard-to-employ groups and manufacturing. by offering a larger credit (12% of wages, up to $1,500) for hiring individuals who were long-term unemployed (on unemployment insurance for at least 13 weeks) or who work directly in eligible industries like manufacturing, agriculture, or commercial fishing, providing extra incentive to hire those who may face greater barriers to employment.
Caps and safeguards to prevent abuse. through limits on the number of qualifying employees per business (maximum 30 per year), a prohibition against firing current employees just to claim the credit, and restrictions on double-dipping with other hiring tax credits, aiming for fair and effective use of state resources.
Immediate financial impact for businesses. since unused credits can be refunded or applied to future tax years (though without interest), which may help small and medium-sized employers better manage cash flow while expanding their workforce.
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Who cares
Employers paying corporate franchise or personal income taxes
The bill would offer a credit for up to 30 qualifying new hires per taxable year, generally worth 6% of first-six-month wages and capped at $750 per employee.
Manufacturers and other eligible goods-producing businesses
Qualifying hires employed directly in the manufacturing process would generate a higher credit of 12% of first-six-month wages, capped at $1,500 per employee.
Workers receiving unemployment insurance benefits
Employers hiring workers who had received benefits for at least 13 weeks at the time of hire could qualify for the higher credit.
Existing employees
The bill would prohibit employers from discharging an employee and hiring a qualifying replacement solely to obtain the credit.
Headline styles
Create Jobs with Tax Credits
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to investigations and government operations
- Referred to investigations and government operations
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.
Create Jobs, Cut Business Taxes
In Assembly Committee · Ways And Means · Sponsor Patricia Fahy
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
541
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sens. AKSHAR, GALLIVAN, HELMING, ROBACH, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to establishing a job creation tax credit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 44 to read as follows:
§ 44. Job creation tax credit. (a) Allowance of credit. For taxable years beginning on or after January first, two thousand twenty, a taxpayer subject to tax under article nine-A or twenty-two of this chapter shall be allowed a credit, to be computed as provided in this section, against the tax imposed by this article, for each net new job created, for each qualified employee within the state. The taxpayer may claim the credit in the year in which the qualified employee completes six months of employment. A taxpayer may only claim the credit once for each qualified employee and may only claim a tax credit for a maximum of thirty qualified employees in each taxable year. If the taxpayer claims the credit allowed under this section, the taxpayer may not use the hiring of a qualified employee that is the basis for this credit in the basis of any other credit allowed under this article.
(b) Qualified employee. A qualified employee is an individual who commences employment by the qualified taxpayer on or after January first, two thousand twenty.
(c) Net new job. "Net new job" means jobs created in this state that (1) are new to the state, (2) have not been transferred from employment with another business that is a related person, (3) are either full-time wage-paying jobs or equivalent to a full-time wage-paying job requiring at least thirty-five hours per week, and (4) are filled for more than six months.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02309-01-9
S. 541 2
(d) Employer prohibition. An employer shall not discharge an employee and hire a qualifying employee solely for the purpose of qualifying for this credit.
(e) Amount of credit. The amount of the credit shall be six percent of the total amount of wages paid to the qualified employee during the employee's first six months of employment. Provided, however, that, if the qualified employee was receiving unemployment insurance benefits at the time of hire for a minimum of thirteen weeks or is employed directly in the manufacturing process in an eligible industry, the amount of the credit shall be twelve percent of the total amount of wages paid to the qualified employee during the employee's first six months of employment. The credit allowed pursuant to this subdivision shall not exceed in any taxable year, seven hundred fifty dollars for any qualified employee and one thousand five hundred dollars for any qualified employee who was receiving unemployment insurance benefits at the time of hire for a minimum of thirteen weeks or who is employed directly in the manufacturing process in an eligible industry.
(f) Eligible industry. An eligible industry is a business principally engaged in the production of goods by manufacturing, processing, assembling, refining, mining, extracting, farming, agriculture, horticulture, floriculture, viticulture or commercial fishing.
§ 2. Section 210-B of the tax law is amended by adding a new subdivision 53 to read as follows:
53. Job creation tax credit. (a) Allowance of credit. A taxpayer will be allowed a credit, to be computed as provided in section forty-four of this chapter, against the tax imposed by this article.
(b) Application of credit. The credit allowed under this subdivision for any taxable year may not reduce the tax due for such year to less than the higher of the amounts 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, any amount of credit thus not deductible in such taxable year 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 section one thousand eighty-eight of this chapter notwithstanding, no interest will be paid thereon.
§ 3. Section 606 of the tax law is amended by adding a new subsection (jjj) to read as follows:
(jjj) Job creation tax credit. (1) A taxpayer will be allowed a credit, to the extent allowed under section forty-four of this chapter, against the tax imposed by this article.
(2) If the amount of the credit allowed under this subsection for any taxable year exceeds the taxpayer's tax for such year, the excess will 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 will be paid thereon.
§ 4. 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) Job creation tax credit Amount of credit under under subsection (jjj) subdivision fifty-three of section
two hundred ten-B
§ 5. 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 job creation tax credit
Purpose or general idea of bill
This bill would offer a tax credit to businesses creating job opportu- nities.
Summary of specific provisions
Section 1 amends the tax law by adding a new section 43 that allows a taxpayer or business a credit of seven hundred and fifty dollars for each new full time position created. The credit shall not exceed 30 full time position per tax year. An additional seven hundred and fifty dollar credit for each new position that adds value to agricultural commodities through manufacturing or processing. If a new employee was receiving unemployment insurance benefits at the time of hire, the credit allowed shall increase to one thousand dollars.
Section 2 states the credit allowed for any taxable year may not reduce the tax due for such year to less than the higher of the amounts prescribed. If the amount of credit allowed reduces the tax to such amount, any amount of credit thus not deductible in such taxable year will be treated as an overpayment of tax to be credited or refunded.
Section 3 states if the amount of credit allowed undeform any taxable year exceeds the taxpayer's tax for such year, the excess will be treat- ed as an overpayment of tax to be credited or refunded with no interest paid thereon.
Section 4 amends subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law by adding a new clause (xliii).
Section 5 states the effective date.
Justification
Businesses throughout the state of New York face over-regulation and high taxes, hindering their ability to create jobs. According to the Tax Foundation's 2017 State Business Tax Climate Index, New York is second from the last, with the highest of corporate, individual, sales, unem- ployment, and property taxes.
This bill would offer businesses an incentive to create jobs and bring more people into the workforce by allowing them a credit to apply as they see fit. In the United State, most mass job relocations move from state-to-state (US Department of Labor). If passed, this bill would help address this issue offering businesses the resources they deserve which in turn would allow them to keep jobs and employees within the state of New York.
This legislation gives businesses a credit of seven hundred and fifty dollars for each new full-time position filled for at least six months during the tax year.
If the new full time position is created in a business which adds value to agricultural commodities through manufacturing or processing, an additional seven hundred and fifty dollar credit per new full time posi- tion will be allowed.
If a new employee was previously receiving unemployment benefits at the time of hire, the tax credit amount will increase from seven hundred and fifty dollars to one thousand dollars.
Legislative history
2018 - S4090: Reported and Committed to Finance 2017 - S4090: Passed Senate
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately and shall 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.