Establishes a returning veterans tax credit for businesses that hire veterans and disabled veterans; provides that such tax credit is worth $3,000 per veteran hired or $4,000 for every disabled veteran hired and the total benefit shall not exceed $15,000 annually.
STATE OF NEW YORK
________________________________________________________________________
2817
2023-2024 Regular Sessions
IN ASSEMBLY
January 27, 2023
___________
Introduced by M. of A. JONES, SIMPSON -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing a returning
veterans tax credit for businesses that hire veterans and disabled
veterans
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 210-B of the tax law is amended by adding a new
2 subdivision 59 to read as follows:
3 59. Returning veterans tax credit. (a) General. A taxpayer shall be
4 allowed a credit, to be computed as provided in this subdivision,
5 against the tax imposed by this article for each veteran or disabled
6 veteran hired during a taxable year, provided that:
7 (i) such veteran is a new employee and is employed for thirty-five
8 hours or more per week and remains in the employ of such taxpayer for
9 twelve months or more; or
10 (ii) such disabled veteran is a new employee who is employed for
11 seventeen and one-half hours or more per week and remains in the employ
12 of such taxpayer for twelve months or more.
13 (b) Amount of credit. A credit authorized by this section shall equal
14 three thousand dollars per hired veteran and four thousand dollars per
15 hired disabled veteran but shall not exceed fifteen thousand dollars
16 annually.
17 (c) Carryovers. The credit allowed under this subdivision may be
18 claimed and if not fully used in the initial year for which the credit
19 is claimed may be carried over, in order, to each of the ten succeeding
20 taxable years. The credit authorized by this subdivision may not be used
21 to reduce the tax liability of the credit claimant below zero.
22 (d) Definitions. As used in this subdivision, the following terms
23 shall have the following meanings:
24 (i) "New employee" shall mean any full time employee that causes the
25 total number of employees to increase above base employment or credit
26 employment, whichever is higher.
27 (ii) "Base year" shall mean calendar year two thousand twenty-three.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04374-01-3
A. 2817 2
1 (iii) "Base employment" shall mean the average number of full time
2 employees or full time equivalent employees during the base year. For a
3 new business, base employment shall begin at zero.
4 (iv) "Credit employment" shall mean base employment plus the number of
5 new employees for which a credit is earned for the prior tax years.
6 (v) "Veteran" shall have the same meaning as set forth in section
7 eighty-five of the civil service law.
8 (vi) "Disabled veteran" shall have the same meaning as set forth in
9 section eighty-five of the civil service law.
10 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
11 of the tax law is amended by adding a new clause (l) to read as follows:
12 (l) Returning veterans taxCosts under subdivision
13 credit; subsection (ooo)fifty-nine of section
14 two hundred ten-B
15 § 3. Section 606 of the tax law is amended by adding a new subsection
16 (ooo) to read as follows:
17 (ooo) Returning veterans tax credit. (1) General. A taxpayer shall be
18 allowed a credit, to be computed as provided in this subsection, against
19 the tax imposed by this article for each veteran or disabled veteran
20 hired during a taxable year, provided that:
21 (i) such veteran is a new employee and is employed for thirty-five
22 hours or more per week and remains in the employ of such taxpayer for
23 twelve months or more; or
24 (ii) such disabled veteran is a new employee and is employed for
25 seventeen and one-half hours or more per week and remains in the employ
26 of such taxpayer for twelve months or more.
27 (2) Amount of credit. A credit authorized by this section shall equal
28 three thousand dollars per hired veteran and four thousand dollars per
29 hired disabled veteran but shall not exceed fifteen thousand dollars
30 annually.
31 (3) Carryovers. The credit allowed under this subsection may be
32 claimed and if not fully used in the initial year for which the credit
33 is claimed may be carried over, in order, to each of the ten succeeding
34 taxable years. The credit authorized by this subsection may not be used
35 to reduce the tax liability of the credit claimant below zero.
36 (4) Definitions. As used in this subsection, the following terms shall
37 have the following meanings:
38 (i) "New employee" shall mean any full time employee that causes the
39 total number of employees to increase above base employment or credit
40 employment, whichever is higher.
41 (ii) "Base year" shall mean calendar year two thousand twenty-three.
42 (iii) "Base employment" shall mean the average number of full time
43 employees or full time equivalent employees during the base year. For a
44 new business, base employment shall begin at zero.
45 (iv) "Credit employment" shall mean base employment plus the number of
46 new employees for which a credit is earned for the prior tax years.
47 (v) "Veteran" shall have the same meaning as set forth in section
48 eighty-five of the civil service law.
49 (vi) "Disabled veteran" shall have the same meaning as set forth in
50 section eighty-five of the civil service law.
51 § 4. This act shall take effect immediately and shall apply to taxable
52 years beginning on or after January 1, 2024 and shall apply to those
53 employees hired after this act shall take effect.
