New York S 6378: Provides for a job creation tax credit

Bill Text

STATE OF NEW YORK
________________________________________________________________________
6378
2023-2024 Regular Sessions
IN SENATE
April 18, 2023
___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to job creation tax credits
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "job creation tax credit act".
3 § 2. Section 210-B of the tax law is amended by adding a new subdivi-
4 sion 59 to read as follows:
5 59. Job creation tax credit. (a) As used in this subdivision, the
6 following terms shall have the following meanings: (1) "Full-time
7 employee" means an individual who is employed for consideration for at
8 least thirty-five hours a week, or who renders any other standard of
9 service generally accepted by custom or specified by contract as full-
10 time employment.
11 (2) "New employee" means a full-time employee first employed by a
12 taxpayer in the project that is the subject of the tax credit authorized
13 under this subdivision in the taxable year in which the taxpayer seeks
14 the credit. "New employee" also may include an employee rehired or
15 called back from lay-off to work in a new facility or on a new product
16 or service established or produced by the taxpayer during the taxable
17 year in which the credit is sought. "New employee" shall not include any
18 employee of the taxpayer who was previously employed in this state by a
19 related member of the taxpayer and whose employment was shifted to the
20 taxpayer during the taxable year in which the credit is sought. In addi-
21 tion, "new employee" shall not include a child, grandchild, parent, or
22 spouse, other than a spouse who is legally separated from the individ-
23 ual, or any individual who is an employee of the taxpayer and who has a
24 direct or indirect ownership interest of at least five percent in the
25 profits, capital, or value of the taxpayer. Ownership interest shall be
EXPLANATION--Matter in (underscored) is new; matter in bracketsitalics
[ ] is old law to be omitted.
LBD07771-01-3

S. 6378 2
1 determined in accordance with section fifteen hundred sixty-three of the
2 Internal Revenue Code and regulations prescribed thereunder.
3 (3) "New income tax revenue" means the total amount withheld under
4 this chapter by the taxpayer during the taxable year from the compen-
5 sation of new employees for the taxes levied under this chapter.
6 (4) "Related member" has the same meaning as provided in this chapter.
7 (b) The job creation tax credit authorized under this subdivision
8 shall be for the purpose of fostering job creation in this state. Such a
9 grant shall take the form of a refundable credit allowed against the tax
10 imposed under this chapter. The credit shall be claimed after the allow-
11 ance of all other credits provided by this chapter. The amount of the
12 credit shall equal the new income tax revenue for the taxable year
13 multiplied by fifty percent.
14 (c) In order to qualify for the credit the taxpayer must submit to the
15 department of economic development in the taxable year for which credit
16 is sought a form provided by such department in which the taxpayer
17 states the following:
18 (1) The taxpayer's project will create new jobs in this state;
19 (2) The taxpayer's project is economically sound and will benefit the
20 people of this state by increasing opportunities for employment and
21 strengthening the economy of this state;
22 (3) Receiving the tax credit is a major factor in the taxpayer's deci-
23 sion to go forward with the project;
24 (4) A detailed description of the project that is the subject of the
25 agreement;
26 (5) The term of the tax credit which shall not exceed ten years, and
27 the first taxable year for which the credit may be claimed;
28 (6) That the taxpayer shall maintain operations at the project
29 location for at least twice the number of years as the term of the tax
30 credit;
31 (7) That fifty percent of the new income tax revenue will be allowed
32 as the amount of the credit for each taxable year;
33 (8) A specific method for determining how many new employees are
34 employed during a taxable year;
35 (9) That the taxpayer annually shall report to the commissioner of
36 economic development the number of new employees, the new income tax
37 revenue withheld in connection with the new employees and any other
38 information the commissioner of economic development needs to perform
39 his or her duties under this subdivision; and
40 (10) That the commissioner of economic development shall annually
41 verify the amounts reported pursuant to subparagraph nine of this para-
42 graph, and after doing so shall issue a certificate to the taxpayer
43 stating that the amounts have been verified.
44 (d) A taxpayer claiming