Establishes the COVID-19 recovery local employment tax credit program to provide tax incentives to employers for employing local employees in full-time or part-time positions in the two years following the conclusion of the state disaster emergency declared pursuant to executive order two hundred two.
STATE OF NEW YORK
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8358--A
IN SENATE
May 19, 2020
___________
Introduced by Sens. BAILEY, BENJAMIN -- read twice and ordered printed,
and when printed to be committed to the Committee on Labor -- commit-
tee discharged, bill amended, ordered reprinted as amended and recom-
mitted to said committee
AN ACT to amend the labor law and the tax law, in relation to establish-
ing the COVID-19 recovery local employment 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-d to
2 read as follows:
3 § 25-d. Power to administer the COVID-19 recovery local employment tax
4 credit program. (a) The commissioner is authorized to establish and
5 administer the COVID-19 recovery local employment tax credit program to
6 provide tax incentives to employers for employing local employees in
7 full-time or part-time positions in the two years following the conclu-
8 sion of the state disaster emergency declared pursuant to executive
9 order two hundred two. The commissioner is authorized to allocate up to
10 forty million dollars of tax credits under this program.
11 (b) Definitions. (1) The term "qualified employer" means an employer
12 that has been certified by the commissioner to participate in the
13 COVID-19 recovery local employment tax credit program and that employs
14 one or more qualified employees.
15 (2) The term "qualified employee" means an individual:
16 (i) resides within fifty miles from the qualified employer;
17 (ii) who resides in a city with a population of eighty thousand or
18 more or a town with a population of fifty-five thousand or more;
19 (iii) who is low-income or at-risk, as such terms are defined by the
20 commissioner;
21 (iv) who is unemployed prior to being hired by the qualified employer
22 as a result of the outbreak of novel coronavirus, COVID-19; and
23 (v) who will be working for the qualified employer in a full-time or
24 part-time position that pays wages that are equivalent to the wages paid
25 for similar jobs, with appropriate adjustments for experience and train-
26 ing, and for which no other employee has been terminated, or where the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16233-07-0
S. 8358--A 2
1 employer has not otherwise reduced its workforce by involuntary termi-
2 nations with the intention of filling the vacancy by creating a new
3 hire.
4 (c) A qualified employer shall be entitled to a tax credit equal to
5 (1) seven hundred fifty dollars per month for up to six months for each
6 qualified employee the employer employs in a full-time job or three
7 hundred seventy-five dollars per month for up to six months for each
8 qualified employee the employer employs in a part-time job of at least
9 twenty hours per week, (2) fifteen hundred dollars for each qualified
10 employee who is employed for at least an additional six consecutive
11 months by the qualified employer in a full-time job or seven hundred
12 fifty dollars for each qualified employee who is employed for at least
13 an additional six consecutive months by the qualified employer in a
14 part-time job of at least twenty hours per week, and (3) an additional
15 fifteen hundred dollars for each qualified employee who is employed for
16 at least an additional year after the completion of the time periods and
17 satisfaction of the conditions set forth in paragraphs one and two of
18 this subdivision by the qualified employer in a full-time job or seven
19 hundred fifty dollars for each qualified employee who is employed for at
20 least an additional year after the completion of the time periods and
21 satisfaction of the conditions set forth in paragraphs one and two of
22 this subdivision by the qualified employer in a part-time job of at
23 least twenty hours per week. The tax credits shall be claimed by the
24 qualified employer as specified in subdivision fifty-five of section two
25 hundred ten-B and subsection (kkk) of section six hundred six of the tax
26 law.
27 (d) To participate in the COVID-19 recovery local employment tax cred-
28 it program, an employer must submit an application (in a form prescribed
29 by the commissioner) to the commissioner after January first, of the
30 taxable year following the conclusion of the state disaster emergency
31 declared pursuant to executive order two hundred two but no later than
32 June first, of such year. The qualified employees shall start their
33 employment on or after January first, of such year but no later than
34 July first, of such year. The commissioner shall establish guidelines
35 and criteria that specify requirements for employers to participate in
36 the program including criteria for certifying qualified employees. Any
37 regulations that the commissioner determines are necessary may be
38 adopted on an emergency basis notwithstanding anything to the contrary
39 in section two hundred two of the state administrative procedure act.
40 Such requirements may include the types of industries that the employers
41 are engaged in. The commissioner may give preference to employers that
42 are engaged in demand occupations or industries, or in regional growth
43 sectors, including those identified by the regional economic development
44 councils, such as clean energy, healthcare, advanced manufacturing and
45 conservation. In addition, the commissioner shall give preference to
46 employers who offer advancement and employee benefit packages to the
47 qualified individuals. As part of such application, an employer shall:
48 (1) agree to allow the department of taxation and finance to share its
49 tax information with the commissioner. However, any information shared
50 as a result of this agreement shall not be available for disclosure or
51 inspection under the state freedom of information law, and
52 (2) allow the commissioner and his or her agents and the department of
53 taxation and finance and its agents access to any and all books and
54 records of employers the commissioner may require to monitor compliance.
55 (e) If, after reviewing the application submitted by an employer, the
56 commissioner determines that such employer is eligible to participate in
S. 8358--A 3
1 the program established under this section, the commissioner shall issue
2 the employer a preliminary certificate of eligibility that establishes
3 the employer as a qualified employer. The preliminary certificate of
4 eligibility shall specify the maximum amount of tax credit that the
5 employer may be allowed to claim and the program year under which it may
6 be claimed. The maximum amount of tax credit the employer is allowed to
7 claim shall be computed as prescribed in subdivision (c) of this
8 section.
9 (f)(1) To receive an annual final certificate of tax credit, the qual-
10 ified employer shall annually submit, on or before January thirty-first
11 of the calendar year subsequent to the payment of wages paid to an
12 eligible employee, a report to the commissioner, in a form prescribed by
13 the commissioner. The report must demonstrate that the employer has
14 satisfied all eligibility requirements and provided all the information
15 necessary for the commissioner to compute an actual amount of credit
16 allowed.
17 (2) After reviewing the report and finding it sufficient, the commis-
18 sioner shall issue an annual final certificate of tax credit. Such
19 certificate shall include, in addition to any other information the
20 commissioner determines is necessary, the following information:
21 (i) The name and employer identification number of the qualified
22 employer;
23 (ii) The program year for the corresponding credit award;
24 (iii) The actual amount of credit to which the qualified employer is
25 entitled for that calendar year or the fiscal year in which the annual
26 final certificate is issued, which actual amount cannot exceed the
27 amount of credit listed on the preliminary certificate but may be less
28 than such amount; and
29 (iv) A unique certificate number identifying the annual final certif-
30 icate of tax credit.
31 (g) In determining the amount of credit for purposes of the annual
32 final certificate of tax credit, the portion of the credit described in
33 paragraph one of subdivision (c) of this section shall be allowed for
34 the calendar year in which the wages are paid to the qualified employee,
35 the portion of the credit described in paragraph two of subdivision (c)
36 of this section shall be allowed for the calendar year in which the
37 additional six consecutive month period ends, and the portion of the
38 credit described in paragraph three of subdivision (c) of this section
39 shall be allowed for the calendar year in which the additional year of
40 consecutive employment ends after the completion of the time periods and
41 satisfaction of the conditions set forth in paragraphs one and two of
42 subdivision (c) of this section. If the qualified employer's taxable
43 year is a calendar year, the employer shall be entitled to claim the
44 credit as calculated on the annual final certificate of tax credit on
45 the calendar year return for which the annual final certificate of tax
46 credit was issued. If the qualified employer's taxable year is a fiscal
47 year, the employer shall be entitled to claim the credit as calculated
48 on the annual final certificate of tax credit on the return for the
49 fiscal year that encompasses the date on which the annual final certif-
50 icate of tax credit is issued.
51 (h) The commissioner shall establish guidelines and criteria that
52 specify requirements for employers to participate in the program includ-
53 ing criteria for certifying qualified employees, and issuing the prelim-
54 inary certificate of eligibility and annual final certificate of tax
55 credit. Such requirements may include the types of industries that the
56 employers are engaged in. The commissioner may give preference to
S. 8358--A 4
1 employers that are engaged in demand occupations or industries, or in
2 regional growth sectors, including but not limited to those identified
3 by the regional economic development councils, such as clean energy,
4 healthcare, advanced manufacturing and conservation. In addition, the
5 commissioner shall give preference to employers who offer advancement
6 and employee benefit packages to the qualified individuals.
7 (i) The commissioner shall annually publish a report. Such report must
8 contain the names and addresses of any employer issued a preliminary
9 certificate of eligibility under this section, the amount of COVID-19
10 recovery local employment program tax credit allowed to the qualified
11 employer as specified on an annual final certificate of tax credit and
12 any other information as determined by the commissioner.
13 § 2. Section 210-B of the tax law is amended by adding a new subdivi-
14 sion 55 to read as follows:
15 55. COVID-19 recovery local employment program tax credit. (a) A
16 taxpayer that has been certified by the commissioner of labor as a qual-
17 ified employer pursuant to section twenty-five-d of the labor law and
18 received an annual final certificate of tax credit from such commission-
19 er shall be allowed a credit against the tax imposed by this article
20 equal to the amount listed on the annual final certificate of tax credit
21 issued by the commissioner of labor pursuant to section twenty-five-d of
22 the labor law. If the qualified employer's taxable year is a calendar
23 year, the employer shall be entitled to claim the credit as calculated
24 on the annual final certificate of tax credit on the calendar year
25 return for which the annual final certificate of tax credit was issued.
26 If the qualified employer's taxable year is a fiscal year, the employer
27 shall be entitled to claim the credit as calculated on the annual final
28 certificate of tax credit on the return for the fiscal year that encom-
29 passes the date on which the annual final certificate of tax credit is
30 issued. For the purposes of this subdivision, the term "qualified
31 employee" shall have the same meaning as set forth in subdivision (b) of
32 section twenty-five-d of the labor law.
33 (b) The credit allowed under this subdivision for any taxable year may
34 not reduce the tax due for that year to less than the amount prescribed
35 in paragraph (d) of subdivision one of section two hundred ten of this
36 article. However, if the amount of the credit allowed under this subdi-
37 vision for any taxable year reduces the tax to that amount or if the
38 taxpayer otherwise pays tax based on the fixed dollar minimum amount,
39 any amount of credit not deductible in that taxable year will be treated
40 as an overpayment of tax to be credited or refunded in accordance with
41 the provisions of section one thousand eighty-six of this chapter.
42 Provided, however, no interest will be paid thereon.
43 (c) The taxpayer shall be required to attach to its tax return its
44 annual final certificate of tax credit issued by the commissioner of
45 labor pursuant to section twenty-five-d of the labor law. In no event
46 shall the taxpayer be allowed a credit greater than the amount of the
47 credit listed on the annual final certificate of tax credit. Notwith-
48 standing any provision of this chapter to the contrary, the commissioner
49 and the commissioner's designees may release the names and addresses of
50 any taxpayer claiming this credit and the amount of the credit earned by
51 the taxpayer. Provided, however, if a taxpayer claims this credit
52 because it is a member of a limited liability company or a partner in a
53 partnership, only the amount of credit earned by the entity and not the
54 amount of credit claimed by the taxpayer may be released.
55 § 3. Section 606 of the tax law is amended by adding a new subsection
56 (kkk) to read as follows:
S. 8358--A 5
1 (kkk) COVID-19 recovery local employment program tax credit. (1) A
2 taxpayer that has been certified by the commissioner of labor as a qual-
3 ified employer pursuant to section twenty-five-d of the labor law and
4 received an annual final certificate of tax credit from such commission-
5 er shall be allowed a credit against the tax imposed by this article
6 equal to the amount listed on the annual final certificate of tax credit
7 issued by the commissioner of labor pursuant to section twenty-five-d of
8 the labor law. A taxpayer that is a partner in a partnership, member of
9 a limited liability company or shareholder in an S corporation that has
10 received its annual final certificate of tax credit from the commission-
11 er of labor as a qualified employer pursuant to section twenty-five-d of
12 the labor law shall be allowed its pro rata share of the credit earned
13 by the partnership, limited liability company or S corporation. If the
14 qualified employer's taxable year is a calendar year, the employer shall
15 be entitled to claim the credit as calculated on the annual final
16 certificate of tax credit on the calendar year return for which the
17 annual final certificate of tax credit was issued. If the qualified
18 employer's taxable year is a fiscal year, the employer shall be entitled
19 to claim the credit as calculated on the annual final certificate of tax
20 credit on the return for the fiscal year that encompasses the date on
21 which the annual final certificate of tax credit is issued. For the
22 purposes of this subsection, the term "qualified employee" shall have
23 the same meaning as set forth in subdivision (b) of section
24 twenty-five-d of the labor law.
25 (2) If the amount of the credit allowed under this subsection exceeds
26 the taxpayer's tax for the taxable year, any amount of credit not deduc-
27 tible in that taxable year will be treated as an overpayment of tax to
28 be credited or refunded in accordance with the provisions of section six
29 hundred eighty-six of this article. Provided, however, no interest will
30 be paid thereon.
31 (3) The taxpayer shall be required to attach to its tax return its
32 annual final certificate of tax credit issued by the commissioner of
33 labor pursuant to section twenty-five-d of the labor law. In no event
34 shall the taxpayer be allowed a credit greater than the amount of the
35 credit listed on the annual final certificate of tax credit. Notwith-
36 standing any provision of this chapter to the contrary, the commissioner
37 and the commissioner's designees may release the names and addresses of
38 any taxpayer claiming this credit and the amount of the credit earned by
39 the taxpayer. Provided, however, if a taxpayer claims this credit
40 because it is a member of a limited liability company, a partner in a
41 partnership, or a shareholder in a subchapter S corporation, only the
42 amount of credit earned by the entity and not the amount of credit
43 claimed by the taxpayer may be released.
44 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
45 of the tax law is amended by adding a new clause (xlvi) to read as
46 follows:
47 (xlvi) COVID-19 recovery localAmount of credit under
48 employment programsubdivision fifty-five of
49 tax creditsection two hundred ten-B
50 § 5. This act shall take effect immediately.
