Provides business franchise, personal income, banking franchise and insurance franchise tax credits for a portion of the wages paid to certain employees who have a developmental disability.
STATE OF NEW YORK
________________________________________________________________________
8827--A
IN ASSEMBLY
February 19, 2014
___________
Introduced by M. of A. GUNTHER, SIMANOWITZ -- read once and referred to
the Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to establishing business fran-
chise, personal income, banking franchise and insurance franchise tax
credits for a portion of the wages paid to certain employees who have
a developmental disability
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 210 of the tax law is amended by adding a new
2 subdivision 23-b to read as follows:
3 23-b. Credit for employment of an employee who has a developmental
4 disability. (a) Allowance of credit. A qualified taxpayer shall be
5 allowed a credit, to be computed as provided in this subdivision,
6 against the tax imposed by this article, for hiring and employing, for
7 not less than six months and for not less than thirty hours each week,
8 or for part-time work for not less than fifteen hours a week, a quali-
9 fied employee within the state.
10 (b) Qualified taxpayer. A qualified taxpayer is a taxpayer which is an
11 employer, other than the federal, the state or a local government or any
12 instrumentality thereof.
13 (c) Qualified employee. A qualified employee is an individual who
14 resides in this state:
15 (1) who is deemed to have a developmental disability as defined in
16 subdivision twenty-two of section 1.03 of the mental hygiene law;
17 (2) who commences employment by the qualified taxpayer on or after
18 January first, two thousand fifteen, and before January first, two thou-
19 sand eighteen;
20 (3) who certifies by signed affidavit, under penalty of perjury, that
21 he or she has not been employed for thirty or more hours or that he or
22 she has not been employed for fifteen or more hours during any week in
23 the ninety day period immediately prior to his or her employment by the
24 qualified taxpayer;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14053-08-4
A. 8827--A 2
1 (4) who was not employed by the qualified taxpayer to replace another
2 employee; and/or
3 (5) who is a current employee of a sheltered workshop, which for
4 purposes of this subdivision is defined as an organization or environ-
5 ment that employs people with disabilities segregated from others; or
6 (6) who was unemployed for at least three months prior to January
7 first, two thousand fifteen.
8 (d) Certification of qualified employee. The commissioner shall
9 promulgate any rules and regulations necessary to determine if a person
10 is certified as a qualified employee.
11 (e) Amount of credit. The amount of the credit shall be fifteen
12 percent of the qualified wages paid to the qualified employee after
13 January first, two thousand fifteen; provided, however, that the quali-
14 fied employee is employed for not less than six months and is full time
15 totaling at least thirty hours per week. A qualified part time employee
16 who works at least fifteen hours per week and is employed for not less
17 than six months shall receive a credit of ten percent of the qualified
18 wages paid to the qualified employee after January first, two thousand
19 fifteen. The credit allowed pursuant to this subdivision shall not
20 exceed, during any taxable year, five thousand dollars for any qualified
21 full time employee and two thousand five hundred dollars for any quali-
22 fied part time employee. "Qualified wages" means wages paid or incurred
23 by the qualified taxpayer during the taxable year to a qualified employ-
24 ee which are attributable, with respect to such employee, to services
25 rendered by the qualified employee.
26 (f) Carryover. The credit allowed under this subdivision for any taxa-
27 ble year shall not reduce the tax due for such year to less than the
28 amount prescribed in paragraph (d) of subdivision one of this section.
29 However, if the amount of credit allowable under this subdivision for
30 any taxable year reduces the tax to such amount, any amount of credit
31 not deductible in such taxable year may be carried over to the following
32 three years, and may be deducted from the qualified taxpayer's tax for
33 such years.
34 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
35 of the tax law is amended by adding a new clause (xxxvii) to read as
36 follows:
37 (xxxvii) Credit for employmentQualified wages
38 of certain employeesunder subdivision
39 under subsection (a-3)twenty-three-b
40 of section two
41 hundred ten or
42 subsection (e-2)
43 of section fourteen
44 hundred fifty-six
45 § 3. Section 606 of the tax law is amended by adding a new subsection
46 (a-3) to read as follows:
47 (a-3) Credit for employment of an employee who has a developmental
48 disability. (1) Allowance of credit. A qualified taxpayer shall be
49 allowed a credit, to be computed as provided in this subdivision,
50 against the tax imposed by the article, for hiring and employing, for
51 not less than six months and for not less than thirty hours each week,
52 or for part-time work for not less than fifteen hours a week, a quali-
53 fied employee within the state.
A. 8827--A 3
1 (2) Qualified taxpayer. A qualified taxpayer is a taxpayer who is an
2 employer, other than the federal, the state or a local government or any
3 instrumentality thereof.
4 (3) Qualified employee. A qualified employee is an individual who
5 resides in this state:
6 (A) who is deemed to have a developmental disability as defined in
7 subdivision twenty-two of section 1.03 of the mental hygiene law;
8 (B) who commences employment by the qualified taxpayer on or after
9 January first, two thousand fifteen, and before January first, two thou-
10 sand eighteen;
11 (C) who certifies by signed affidavit, under penalty of perjury, that
12 he or she has not been employed for thirty or more hours during any week
13 in the ninety day period immediately prior to his or her employment by
14 the qualified taxpayer;
15 (D) who was not employed by the qualified taxpayer to replace another
16 employee; and/or
17 (E) who is a current employee of a sheltered workshop, which for
18 purposes of this subdivision is defined as an organization or environ-
19 ment that employs people with disabilities segregated from others; or
20 (F) who was unemployed for at least three months prior to January
21 first, two thousand fifteen.
22 (4) Amount of credit. The amount of the credit shall be fifteen
23 percent of the qualified wages paid to the qualified employee after
24 January first, two thousand fifteen; provided, however, that the quali-
25 fied employee is employed for not less than six months and is full time
26 totaling at least thirty hours per week. A qualified part time employee
27 who works at least fifteen hours per week and is employed for not less
28 than six months shall receive a credit of ten percent of the qualified
29 wages paid to the qualified employee after January first, two thousand
30 fifteen. The credit allowed pursuant to this subdivision shall not
31 exceed, during any taxable year, five thousand dollars for any qualified
32 full time employee and two thousand five hundred dollars for any quali-
33 fied part time employee. "Qualified wages" means wages paid or incurred
34 by the qualified taxpayer during the taxable year to a qualified employ-
35 ee which are attributable, with respect to such employee, to services
36 rendered by the qualified employee.
37 (5) Certification of qualified employee. The commissioner shall
38 promulgate any rules and regulations necessary to determine if a person
39 is certified as a qualified employee.
40 (6) Carryover. If the amount of credit allowable under this subsection
41 for any taxable year shall exceed the taxpayer's tax for such year, any
42 amount of credit not deductible in such taxable year may be carried over
43 to the following three years, and may be deducted from the qualified
44 taxpayer's tax for such years.
45 § 4. Section 1456 of the tax law is amended by adding a new subsection
46 (e-2) to read as follows:
47 (e-2) Credit for employment of an employee who has a developmental
48 disability. (1) Allowance of credit. A qualified taxpayer shall be
49 allowed a credit, to be computed as provided in this subdivision,
50 against the tax imposed by this article, for hiring and employing, for
51 not less than six months and for not less than thirty hours each week,
52 or for part-time work for not less than fifteen hours a week, a quali-
53 fied employee within the state.
54 (2) Qualified taxpayer. A qualified taxpayer is a taxpayer which is an
55 employer, other than the federal, the state or a local government or any
56 instrumentality thereof.
A. 8827--A 4
1 (3) Qualified employee. A qualified employee is an individual who
2 resides in this state:
3 (A) who is deemed to have a developmental disability as defined in
4 subdivision twenty-two of section 1.03 of the mental hygiene law;
5 (B) who commences employment by the qualified taxpayer on or after
6 January first, two thousand fifteen, and before January first, two thou-
7 sand eighteen;
8 (C) who certifies by signed affidavit, under penalty of perjury, that
9 he or she has not been employed for thirty or more hours during any week
10 in the ninety day period immediately prior to his or her employment by
11 the qualified taxpayer;
12 (D) who was not employed by the qualified taxpayer to replace another
13 employee; and/or
14 (E) who is a current employee of a sheltered workshop, which for
15 purposes of this subsection is defined as an organization or environment
16 that employs people with disabilities segregated from others; or
17 (F) who was unemployed for at least three months prior to January
18 first, two thousand fifteen.
19 (4) Amount of credit. The amount of the credit shall be fifteen
20 percent of the qualified wages paid to the qualified employee after
21 January first, two thousand fifteen; provided, however, that the quali-
22 fied employee is employed for not less than six months and is full time
23 totaling at least thirty hours per week. A qualified part time employee
24 who works at least fifteen hours per week and is employed for not less
25 than six months shall receive a credit of ten percent of the qualified
26 wages paid to the qualified employee after January first, two thousand
27 fifteen. The credit allowed pursuant to this subdivision shall not
28 exceed, during any taxable year, five thousand dollars for any qualified
29 full time employee and two thousand five hundred dollars for any quali-
30 fied part time employee. "Qualified wages" means wages paid or incurred
31 by the qualified taxpayer during the taxable year to a qualified employ-
32 ee which are attributable, with respect to such employee, to services
33 rendered by the qualified employee.
34 (5) Certification of qualified employee. The commissioner shall
35 promulgate any rules and regulations necessary to determine if a person
36 is certified as a qualified employee.
37 (6) Carryover. The credit allowed under this subsection for any taxa-
38 ble year shall not reduce the tax due for such year to less than the
39 minimum tax fixed by subsection (b) of section fourteen hundred fifty-
40 five of this article. However, if the amount of credit allowable under
41 this subsection for any taxable year reduces the tax to such amount, any
42 amount of credit not deductible in such taxable year may be carried over
43 to the following three years, and may be, deducted from the qualified
44 taxpayer's tax for such years.
45 § 5. Section 1511 of the tax law is amended by adding a new subdivi-
46 sion (g-2) to read as follows:
47 (g-2) Credit for employment of an employee who has a developmental
48 disability. (1) Allowance of credit. A qualified taxpayer shall be
49 allowed a credit, to be computed as provided in this subdivision,
50 against the tax imposed by this article, for hiring and employing, for
51 not less than six months and for not less than thirty hours each week,
52 or for part-time work for not less than fifteen hours a week, a quali-
53 fied employee within the state.
54 (2) Qualified taxpayer. A qualified taxpayer is a taxpayer which is an
55 employer, other than the federal, the state or a local government or any
56 instrumentality thereof.
A. 8827--A 5
1 (3) Qualified employee. A qualified employee is an individual who
2 resides in this state:
3 (A) who is deemed to have a developmental disability as defined in
4 subdivision twenty-two of section 1.03 of the mental hygiene law;
5 (B) who commences employment by the qualified taxpayer on or after
6 January first, two thousand fifteen, and before January first, two thou-
7 sand eighteen;
8 (C) who certifies by signed affidavit, under penalty of perjury, that
9 he or she has not been employed for thirty or more hours during any week
10 in the ninety day period immediately prior to his or her employment by
11 the qualified taxpayer;
12 (D) who was not employed by the qualified taxpayer to replace another
13 employee; and/or
14 (E) who is a current employee of a sheltered workshop, which for
15 purposes of this subdivision is defined as an organization or environ-
16 ment that employs people with disabilities segregated from others; or
17 (F) who was unemployed for at least three months prior to January
18 first, two thousand fifteen.
19 (4) Amount of credit. The amount of the credit shall be fifteen
20 percent of the qualified wages paid to the qualified employee after
21 January first, two thousand fifteen; provided, however, that the quali-
22 fied employee is employed for not less than six months and is full time
23 totaling at least thirty hours per week. A qualified part time employee
24 who works at least fifteen hours per week and is employed for not less
25 than six months shall receive a credit of ten percent of the qualified
26 wages paid to the qualified employee after January first, two thousand
27 fifteen. The credit allowed pursuant to this subdivision shall not
28 exceed, during any taxable year, five thousand dollars for any qualified
29 full time employee and two thousand five hundred dollars for any quali-
30 fied part time employee. "Qualified wages" means wages paid or incurred
31 by the qualified taxpayer during the taxable year to a qualified employ-
32 ee which are attributable, with respect to such employee, to services
33 rendered by the qualified employee.
34 (5) Certification of qualified employee. The commissioner shall
35 promulgate any rules and regulations necessary to determine if a person
36 is certified as a qualified employee.
37 (6) Carryover. The credit allowed under this subdivision for any taxa-
38 ble year shall not reduce the tax due for such year to less than the
39 minimum tax fixed by paragraph four of subdivision (a) of section
40 fifteen hundred two of this article. However, if the amount of credit
41 allowable under this subdivision for any taxable year reduces the tax to
42 such amount, any amount of credit not deductible in such taxable year
43 may be carried over to the following three years, and may be deducted
44 from the qualified taxpayer's tax for such years.
45 § 6. This act shall take effect January 1, 2015; provided, however,
46 that effective immediately, the addition, amendment and/or repeal of any
47 rule or regulation necessary for the implementation of this act on its
48 effective date is authorized and directed to be made and completed on or
49 before such effective date.
