NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4448
SPONSOR: Gallahan TITLE OF BILL:
An act to amend the economic development law, in relation to the employ-
ee training incentive program
PURPOSE:
This bill would increase/expand the Employee Training Incentive
Program(ETIP) tax credit.
SUMMARY OF PROVISIONS:
Section 1: Increases/expands the Employee Training Incentive Program
(E-TIP) tax credit to employers from 50% to 70% of eligible training
costs for employees.
Section 2: Provides for an immediate effective date
JUSTIFICATION:
The E-TIP tax credit provides a tax credit to New York State employers
for training investments that upgrade, retrain, or improve the produc-
tivity of their employers and for approved internship programs. This
legislation will increase the tax credit to employers from 50% to 70% of
eligible training costs for employees. Many employers cite a lack of
available trained workers as a major impediment to growth and success of
their businesses. This legislation will strengthen employee training
while easing the burden of the cost for the business.
LEGISLATIVE HISTORY:
2023-24: A.2963
2021-22: A.5362
2019-20: S.6841
FISCAL IMPLICATIONS:
None to the State.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
4448
2025-2026 Regular Sessions
IN ASSEMBLY
February 4, 2025
___________
Introduced by M. of A. GALLAHAN -- read once and referred to the Commit-
tee on Economic Development
AN ACT to amend the economic development law, in relation to the employ-
ee training incentive program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 3 of section 443 of the economic development
2 law, as added by section 1 of part O of chapter 59 of the laws of 2015,
3 is amended to read as follows:
4 3. The commissioner may approve an application from a business entity
5 upon determining that such business entity meets the eligibility crite-
6 ria established in section four hundred forty-two of this article.
7 Following approval by the commissioner of an application by a business
8 entity to participate in the employee training incentive program, the
9 commissioner shall issue a certificate of tax credit to the business
10 entity upon its demonstrating successful completion of such eligible
11 training to the satisfaction of the commissioner. For eligible training
12 as defined by paragraph (a) of subdivision three of section four hundred
13 forty-one of this article the amount of the credit shall be equal to
14 [fifty] seventy percent of eligible training costs, up to a credit of
15 ten thousand dollars per employee receiving eligible training. For
16 eligible training as defined by paragraph (b) of subdivision three of
17 section four hundred forty-one of this article, the amount of the credit
18 shall be equal to fifty percent of the stipend paid to an intern, up to
19 a credit of three thousand dollars per intern. The tax credits shall be
20 claimed by the qualified employer as specified in subdivision fifty of
21 section two hundred ten-B and subsection (ddd) of section six hundred
22 six of the tax law.
23 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05963-01-5
