Gunther, Schimminger, Braunstein, Hennessey, Duprey, Walter
MLTSPNSR
Millman, Simanowitz, Skartados
Add S25-b, Lab L; amd SS210 & 606, Tax L
Establishes the workers with disabilities tax credit program; provides tax incentives to employers for employing individuals with developmental disabilities.
STATE OF NEW YORK
________________________________________________________________________
7387--B
2013-2014 Regular Sessions
IN ASSEMBLY
May 14, 2013
___________
Introduced by M. of A. GABRYSZAK, GUNTHER -- read once and referred to
the Committee on Labor -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- again
reported from said committee with amendments, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the labor law and the tax law, in relation to the
creation of the workers with disabilities tax credit program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The labor law is amended by adding a new section 25-b to
2 read as follows:
3 § 25-b. Power to administer the workers with disabilities tax credit
4 program. (a) The commissioner is authorized to establish and administer
5 the workers with disabilities tax credit program to provide tax incen-
6 tives to employers for employing individuals with developmental disabil-
7 ities. There will be five distinct pools of tax incentives. Program one
8 will cover tax incentives allocated for two thousand fourteen. Program
9 two will cover tax incentives allocated in two thousand fifteen to be
10 used in two thousand fifteen and two thousand sixteen. Program three
11 will cover tax incentives allocated in two thousand sixteen to be used
12 in two thousand sixteen and two thousand seventeen. Program four will
13 cover tax incentives allocated in two thousand seventeen to be used in
14 two thousand seventeen and two thousand eighteen. Program five will
15 cover tax incentives allocated in two thousand eighteen to be used in
16 two thousand eighteen and two thousand nineteen. The commissioner is
17 authorized to allocate up to six million dollars of tax credits under
18 program one, six million dollars of tax credits under program two, six
19 million dollars of tax credits under program three, and six million
20 dollars of tax credits under program four, and six million dollars of
21 tax credits under program five.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD10299-07-3
A. 7387--B 2
1 (b) Definitions. (1) The term "qualified employer" means an employer
2 that has been certified by the commissioner to participate in the work-
3 ers with disabilities tax credit program and that employs one or more
4 qualified employees.
5 (2) The term "qualified employee" means an individual:
6 (i) who is deemed to have a developmental disability, as that term is
7 defined in subdivision twenty-two of section 1.03 of the mental hygiene
8 law and who is certified by the education department or the office for
9 people with developmental disabilities:
10 (A) as a person with a disability which constitutes or results in a
11 substantial handicap to employment; and
12 (B) as a person having completed or as receiving services under an
13 individualized written rehabilitation plan approved by the education
14 department or other state agency responsible for providing vocational
15 rehabilitation services to such individual; and
16 (ii) who is unemployed prior to being hired by the qualified employer
17 but is not restricted in his or her employment under a federal or state
18 law, rule or regulation; and
19 (iii) who will be working for the qualified employer in a full-time or
20 part-time position that pays wages that are equivalent to the wages paid
21 for similar jobs, with appropriate adjustments for experience and train-
22 ing, and for which no other employee has been terminated, or where the
23 employer has not otherwise reduced its workforce by involuntary termi-
24 nations with the intention of filling the vacancy by creating a new
25 hire.
26 (c) A qualified employer shall be entitled to a tax credit equal to
27 (1) five hundred dollars per month for up to six months for each quali-
28 fied employee the employer employs in a full-time job of at least thirty
29 hours per week or two hundred fifty dollars per month for up to six
30 months for each qualified employee the employer employs in a part-time
31 job of at least fifteen hours per week, and (2) one thousand dollars for
32 each qualified employee who is employed for at least an additional six
33 months by the qualified employer in a full-time job of at least thirty
34 hours per week or five hundred dollars for each qualified employee who
35 is employed for at least an additional six months by the qualified
36 employer in a part-time job of at least fifteen hours per week. The tax
37 credits shall be claimed by the qualified employer as specified in
38 subdivision forty-eight of section two hundred ten and subsection (xx)
39 of section six hundred six of the tax law.
40 (d) To participate in the developmentally disabled works tax credit
41 program, an employer must submit an application (in a form prescribed by
42 the commissioner) to the commissioner no later than November thirtieth,
43 two thousand fourteen for program one, after January first, two thousand
44 fifteen but no later than November thirtieth, two thousand fifteen for
45 program two, after January first, two thousand sixteen but no later than
46 November thirtieth, two thousand sixteen for program three, after Janu-
47 ary first, two thousand seventeen but no later than November thirtieth,
48 two thousand seventeen for program four, and after January first, two
49 thousand eighteen but no later than November thirtieth, two thousand
50 eighteen for program five. The qualified employees must start their
51 employment on or after January first, two thousand fourteen but no later
52 than December thirty-first, two thousand fourteen for program one, on or
53 after January first, two thousand fifteen but no later than December
54 thirty-first, two thousand fifteen for program two, on or after January
55 first, two thousand sixteen but no later than December thirty-first, two
56 thousand sixteen for program three, on or after January first, two thou-
A. 7387--B 3
1 sand seventeen but no later than December thirty-first, two thousand
2 seventeen for program four, and on or after January first, two thousand
3 eighteen but no later than December thirty-first, two thousand eighteen
4 for program five. The commissioner shall establish guidelines and crite-
5 ria that specify requirements for employers to participate in the
6 program including criteria for certifying qualified employees. Any regu-
7 lations that the commissioner determines are necessary may be adopted on
8 an emergency basis notwithstanding anything to the contrary in section
9 two hundred two of the state administrative procedure act. Such require-
10 ments may include the types of industries that the employers are engaged
11 in. The commissioner may give preference to employers that are engaged
12 in demand occupations or industries, or in regional growth sectors, such
13 as clean energy, healthcare, advanced manufacturing and conservation. In
14 addition, the commissioner shall give preference to employers who offer
15 advancement and employee benefit packages to the qualified individuals.
16 (e) If, after reviewing the application submitted by an employer, the
17 commissioner determines that such employer is eligible to participate in
18 the workers with disabilities tax credit program, the commissioner shall
19 issue the employer a certificate of eligibility that establishes the
20 employer as a qualified employer. The certificate of eligibility shall
21 specify the maximum amount of workers with disabilities tax credit that
22 the employer will be allowed to claim.
23 § 2. Section 210 of the tax law is amended by adding a new subdivision
24 48 to read as follows:
25 48. Workers with disabilities tax credit. (a) A taxpayer that has been
26 certified by the commissioner of labor as a qualified employer pursuant
27 to section twenty-five-b of the labor law shall be allowed a credit
28 against the tax imposed by this article equal to (i) five hundred
29 dollars per month for up to six months for each qualified employee the
30 employer employs in a full-time job of at least thirty hours per week or
31 two hundred fifty dollars per month for up to six months for each quali-
32 fied employee the employer employs in a part-time job of at least
33 fifteen hours per week, and (ii) one thousand dollars for each qualified
34 employee who is employed for at least an additional six months by the
35 qualified employer in a full-time job of at least thirty hours per week
36 or five hundred dollars for each qualified employee who is employed for
37 at least an additional six months by the qualified employer in a part-
38 time job of at least fifteen hours per week. For purposes of this subdi-
39 vision, the term "qualified employee" shall have the same meaning as set
40 forth in subdivision (b) of section twenty-five-b of the labor law. The
41 portion of the credit described in this paragraph shall be allowed for
42 the taxable year beginning on or after January first, two thousand four-
43 teen.
44 (b) The credit allowed under this subdivision for any taxable year may
45 not reduce the tax due for that year to less than the amount prescribed
46 in paragraph (d) of subdivision one of this section. However, if the
47 amount of the credit allowed under this subdivision for any taxable year
48 reduces the tax to that amount, any amount of credit not deductible in
49 that taxable year will be treated as an overpayment of tax to be credit-
50 ed or refunded in accordance with the provisions of section one thousand
51 eighty-six of this chapter. Provided, however, no interest will be paid
52 thereon.
53 (c) The taxpayer may be required to attach to its tax return its
54 certificate of eligibility issued by the commissioner of labor pursuant
55 to section twenty-five-b of the labor law. In no event shall the taxpay-
56 er be allowed a credit greater than the amount of the credit listed on
A. 7387--B 4
1 the certificate of eligibility. Notwithstanding any provision of this
2 chapter to the contrary, the commissioner and the commissioner's desig-
3 nees may release the names and addresses of any taxpayer claiming this
4 credit and the amount of the credit earned by the taxpayer. Provided,
5 however, if a taxpayer claims this credit because it is a member of a
6 limited liability company or a partner in a partnership, only the amount
7 of credit earned by the entity and not the amount of credit claimed by
8 the taxpayer may be released.
9 § 3. Section 606 of the tax law is amended by adding a new subsection
10 (xx) to read as follows:
11 (xx) Workers with disabilities tax credit. (1) A taxpayer that has
12 been certified by the commissioner of labor as a qualified employer
13 pursuant to section twenty-five-b of the labor law shall be allowed a
14 credit against the tax imposed by this article equal to (A) five hundred
15 dollars per month for up to six months for each qualified employee the
16 employer employs in a full-time job of at least thirty hours per week or
17 two hundred fifty dollars per month for up to six months for each quali-
18 fied employee the employer employs in a part-time job of at least
19 fifteen hours per week, and (B) one thousand dollars for each qualified
20 employee who is employed for at least an additional six months by the
21 qualified employer in a full-time job of at least thirty hours per week
22 or five hundred dollars for each qualified employee who is employed for
23 at least an additional six months by the qualified employer in a part-
24 time job of at least fifteen hours per week. A taxpayer that is a part-
25 ner in a partnership, member of a limited liability company or share-
26 holder in an S corporation that has been certified by the commissioner
27 of labor as a qualified employer pursuant to section twenty-five-b of
28 the labor law shall be allowed its pro rata share of the credit earned
29 by the partnership, limited liability company or S corporation. For
30 purposes of this subsection, the term "qualified employee" shall have
31 the same meaning as set forth in subdivision (b) of section
32 twenty-five-b of the labor law. The portion of the credit described in
33 this paragraph shall be allowed for the taxable year beginning on or
34 after January first, two thousand fourteen.
35 (2) If the amount of the credit allowed under this subsection exceeds
36 the taxpayer's tax for the taxable year, any amount of credit not deduc-
37 tible in that taxable year will be treated as an overpayment of tax to
38 be credited or refunded in accordance with the provisions of section six
39 hundred eighty-six of this article. Provided, however, no interest will
40 be paid thereon.
41 (3) The taxpayer may be required to attach to its tax return its
42 certificate of eligibility issued by the commissioner of labor pursuant
43 to section twenty-five-b of the labor law. In no event shall the taxpay-
44 er be allowed a credit greater than the amount of the credit listed on
45 the certificate of eligibility. Notwithstanding any provision of this
46 chapter to the contrary, the commissioner and the commissioner's desig-
47 nees may release the names and addresses of any taxpayer claiming this
48 credit and the amount of the credit earned by the taxpayer. Provided,
49 however, if a taxpayer claims this credit because it is a member of a
50 limited liability company, a partner in a partnership, or a shareholder
51 in a subchapter S corporation, only the amount of credit earned by the
52 entity and not the amount of credit claimed by the taxpayer may be
53 released.
54 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
55 of the tax law is amended by adding a new clause (xxxvii) to read as
56 follows:
A. 7387--B 5
1 (xxxvii) Workers with disabilitiesAmount of
2 tax credit under subsection (xx)credit under subdivision
3 forty-eight of section two
4 hundred ten
5 § 5. This act shall take effect immediately.
