A08996 Summary:

BILL NOA08996
 
SAME ASSAME AS S07296
 
SPONSORCusick (MS)
 
COSPNSRLupardo, Blankenbush, Colton, Weprin, Stern, Walsh, Hunter, Mosley, Buttenschon, Otis, Santabarbara, Reilly, Seawright, Fall, Palmesano
 
MLTSPNSR
 
Amd 210-B & 606, Tax L; add 25-d, Lab L
 
Establishes a small business tax credit for the employment of disabled persons.
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A08996 Actions:

BILL NOA08996
 
01/08/2020referred to ways and means
01/22/2020reported
01/23/2020advanced to third reading cal.347
01/29/2020passed assembly
01/29/2020delivered to senate
01/29/2020REFERRED TO BUDGET AND REVENUE
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A08996 Committee Votes:

WAYS AND MEANS Chair:Weinstein DATE:01/22/2020AYE/NAY:32/0 Action: Favorable
WeinsteinAyeRaAye
LentolAyeCrouchAye
SchimmingerExcusedFitzpatrickAye
GanttExcusedHawleyAye
GlickAyeMalliotakisAye
NolanExcusedMontesanoAye
PretlowAyeBlankenbushAye
PerryAyePalmesanoAye
ColtonAyeNorrisAye
CookAyeBrabenecAye
CahillAye
AubryAye
ThieleAye
CusickAye
OrtizAye
BenedettoAye
WeprinAye
RodriguezAye
RamosAye
BraunsteinAye
McDonaldAye
RozicAye
SimotasAye
DinowitzAye
MillerAye

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A08996 Floor Votes:

DATE:01/29/2020Assembly Vote  YEA/NAY: 136/0
AbbateYCrespoYFrontusYLentolYPaulinYSimonY
AbinantiYCrouchYGalefYLiftonYPeoples-StokesYSimotasY
ArroyoYCruzYGanttERLiPetriYPerryYSmithY
AshbyYCusickYGarbarinoYLupardoYPheffer AmatoYSmullenY
AubryYCymbrowitzYGiglioYMagnarelliYPichardoYSolagesY
BarclayYDarlingYGlickYMalliotakisERPretlowYStecY
BarnwellYRaynorYGoodellYManktelowYQuartYSteckY
BarrettYDavilaERGottfriedYMcDonaldYRaYSternY
BarronYDe La RosaYGriffinYMcDonoughERRamosYStirpeY
BenedettoYDenDekkerYGuntherYMcMahonYReillyYTagueY
BichotteYDeStefanoERHawleyYMikulinYReyesYTaylorY
BlakeYDickensYHevesiYMill B YRichardsonYThieleY
BlankenbushYDilanYHunterYMill MGYRiveraYVanelY
BrabenecYDinowitzERHyndmanYMill MLYRodriguezERWalczykY
BraunsteinYDiPietroYJacobsonYMontesanoYRomeoERWalkerY
BronsonYD'UrsoYJaffeeYMorinelloYRose D YWallaceY
BuchwaldYEichensteinYJean-PierreYMosleyYRose L YWalshY
BurkeEREnglebrightYJohnsYNiouYRozicYWeinsteinY
ButtenschonYEpsteinYJonesYNolanYRyanYWeprinY
ByrneYFahyYJoynerYNorrisYSalkaYWilliamsY
ByrnesYFallYKimYO'DonnellYSantabarbaraYWoernerY
CahillYFernandezYKolbEROrtizYSayeghYWrightY
CarrollYFinchERLalorYOtisYSchimmingerERZebrowskiY
ColtonYFitzpatrickYLavineYPalmesanoYSchmittYMr SpkrY
CookYFriendYLawrenceYPalumboYSeawrightY

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A08996 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8996
 
SPONSOR: Cusick (MS)
  TITLE OF BILL: An act to amend the tax law and the labor law, in relation to establish- ing a small business tax credit for the employment of disabled persons; and providing for the repeal of such provisions upon expiration thereof   PURPOSE OR GENERAL IDEA OF BILL: To stimulate employment of disabled persons and retain their services.   SUMMARY OF PROVISIONS: Section 1: A new section, subdivision 55, is added to section 210-B of the tax law to provide a business tax credit for an employer who employs a disabled person for the duration of six months or more and who works a minimum of thirty-five hours per a week. The amount of credit per hired disabled person shall range between five thousand to twenty-five thou- sand dollars. Section 2: The adoption of a new clause (xlvi) in section 606 of the tax law, specifying preceded amendment. Section 3: A new subsection (kkk) is added to section 606 of the tax law, detailing the components of the business tax credit for the employ- ment of disabled persons in a company of one hundred employees or less. It establishes a $5 million cap on the credit each year. The bill also specifies that a taxpayer shall not be allowed to claim this credit if the calculation of this credit has been claimed for another tax credit. Section 4: A new section, 25-d is added to the labor law to establish that the Commissioner is authorized to establish and administer the small business tax credit for disabled persons and to provide the tax incentives to the small business employers. The Commissioner establishes the application and the guidelines for employers to participate in the program. Section 5: The effective date.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):   JUSTIFICATION: People with disabilities often face significant challenges preventing them from entering the workforce, including the false assumption that they will-not be able to complete a job as well as another person. According to a 2015 Bureau of Labor Statistics study, the unemployment rate of people with a disability-was 10.7 percent, compared to five percent for those without a disability. Further, a 2015 disability status report published by Cornell University determined 22 percent of people with disabilities are employed fulltime, compared to 58.6 percent of people without. For people living with a disability the opportunity to earn a living, support their families, and contribute to society is an important part of their lives as it is with anyone. This legislation would create a tax credit for small businesses that employ people with disabilities in order to incentivize the employment of people who are too often over- looked. The credit would be available for companies with fewer than 100 employees that employ a disabled person for at least 6 months for a minimum of 35 hours a week.   PRIOR LEGISLATIVE HISTORY: 2019: A.7475/S.5545 - Vetoed memo 141; 2018: A.1369-A/S.3688-A - Vetoed memo 269; 2016-2017: A.5513-C - Passed Assembly/S.4093-C A - Remained in Investi- gations and Government Operations; 2014-2013: A.570-A - Remained in Ways and Means/S.1907-A - Remained in Investigations and Government Operations; 2011-2012: A.8385-A - Remained in Ways and Means/S.4107-A - Remained in Investigations and Government Operations   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined.   EFFECTIVE DATE: This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2020 and shall expire and be deemed repealed December 31, 2025.
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A08996 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8996
 
                   IN ASSEMBLY
 
                                     January 8, 2020
                                       ___________
 
        Introduced  by  M.  of  A. CUSICK, LUPARDO, BLANKENBUSH, COLTON, WEPRIN,
          STERN, WALSH, HUNTER, MOSLEY, BUTTENSCHON, OTIS, SANTABARBARA, REILLY,
          SEAWRIGHT, FALL -- read once and referred to the Committee on Ways and
          Means
 
        AN ACT to amend the tax law and the labor law, in relation to establish-
          ing a small  business  tax  credit  for  the  employment  of  disabled
          persons;  and providing for the repeal of such provisions upon expira-
          tion thereof
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Section  210-B  of the tax law is amended by adding a new
     2  subdivision 55 to read as follows:
     3    55. Small business  tax  credit;  disabled  persons.  (a)  General.  A
     4  taxpayer who has one hundred employees or less, shall be allowed a cred-
     5  it,  to  be  computed  as  provided in this subdivision, against the tax
     6  imposed by this article for each disabled person hired during a  taxable
     7  year,  provided  that  such  disabled person is employed for thirty-five
     8  hours or more per week, remains in the employ of such taxpayer  for  six
     9  months  or  more  and the employer submits verification that the claimed
    10  employees meet the statutory definition of "disabled person" pursuant to
    11  paragraph (d) of this subdivision.
    12    (b) Amount of credit. A credit authorized by this section shall  equal
    13  five  thousand  dollars  per  hired disabled person but shall not exceed
    14  twenty-five thousand dollars.
    15    (c) Carryovers.  The credit allowed under  this  subdivision  for  any
    16  taxable year shall not reduce the tax due for such year to less than the
    17  amount  prescribed  in  paragraph  (d) of subdivision one of section two
    18  hundred ten of this article. However, if the amount of credit  allowable
    19  under  this  subdivision  for  any  taxable year reduces the tax to such
    20  amount or if the taxpayer otherwise pays tax based on the  fixed  dollar
    21  minimum amount, any amount of credit not deductible in such taxable year
    22  may  be  carried  over  to the following three years and may be deducted
    23  from the taxpayer's tax for such year or years.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10946-04-0

        A. 8996                             2
 
     1    (d) Definitions. As used  in  this  subdivision,  the  term  "disabled
     2  person"  shall mean a resident of the state who has any physical, mental
     3  or medical impairment resulting from anatomical, physiological,  genetic
     4  or neurological conditions which prevents the exercise of a normal bodi-
     5  ly function or is demonstrable by medically accepted clinical or labora-
     6  tory diagnostic techniques.
     7    (e)  Aggregate  amount.  The  aggregate  amount of tax credits allowed
     8  pursuant to the authority of this subdivision and  subsection  (kkk)  of
     9  section  six  hundred  six of this chapter shall be five million dollars
    10  each year.  Such aggregate amounts of credits shall be allocated by  the
    11  commissioner.    If the total amount of allocated credits applied for in
    12  any particular year exceeds the aggregate amount of tax credits  allowed
    13  for such year under this section, such excess shall be treated as having
    14  been applied for on the first day of the subsequent year.
    15    (f)  Claim  of  credit.  A taxpayer shall not be allowed to claim this
    16  credit to the extent the basis of the calculation  of  this  credit  has
    17  been claimed for another tax credit under this chapter.
    18    §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
    19  of the tax law is amended by adding a  new  clause  (xlvi)  to  read  as
    20  follows:
    21  (xlvi) Small business tax credit;    Amount of credit under
    22  disabled persons under               subdivision fifty-five
    23  subsection (kkk)                     of section two hundred
    24                                       ten-B
    25    § 3.  Section 606 of the tax law is amended by adding a new subsection
    26  (kkk) to read as follows:
    27    (kkk)  Small  business  tax  credit;  disabled persons. (1) General. A
    28  taxpayer who has one hundred employees or less, shall be allowed a cred-
    29  it, to be computed as provided  in  this  subsection,  against  the  tax
    30  imposed  by this article for each disabled person hired during a taxable
    31  year, provided that such disabled person  is  employed  for  thirty-five
    32  hours  or  more per week, remains in the employ of such taxpayer for six
    33  months or more and the employer submits verification  that  the  claimed
    34  employees  have met the statutory definition of "disabled person" pursu-
    35  ant to paragraph four of this subsection.
    36    (2) Amount of credit. A credit authorized by this section shall  equal
    37  five  thousand  dollars  per  hired disabled person but shall not exceed
    38  twenty-five thousand dollars.
    39    (3) Carryovers.  The credit allowed under  this  subdivision  for  any
    40  taxable year shall not reduce the tax due for such year to less than the
    41  amount  prescribed  in  paragraph  (d) of subdivision one of section two
    42  hundred ten of this article. However, if the amount of credit  allowable
    43  under  this  subdivision  for  any  taxable year reduces the tax to such
    44  amount or if the taxpayer otherwise pays tax based on the  fixed  dollar
    45  minimum amount, any amount of credit not deductible in such taxable year
    46  may  be  carried  over  to the following three years and may be deducted
    47  from the taxpayer's tax for such year or years.
    48    (4) Definitions. As  used  in  this  subsection,  the  term  "disabled
    49  person"  shall mean a resident of the state who has any physical, mental
    50  or medical impairment resulting from anatomical, physiological,  genetic
    51  or neurological conditions which prevents the exercise of a normal bodi-
    52  ly function or is demonstrable by medically accepted clinical or labora-
    53  tory diagnostic techniques.
    54    (5)  Aggregate  amount.  The  aggregate  amount of tax credits allowed
    55  pursuant to the authority of this subsection and subdivision  fifty-five
    56  of  section  two  hundred  ten-B  of  this chapter shall be five million

        A. 8996                             3
 
     1  dollars each year. Such aggregate amounts of credits shall be  allocated
     2  by  the  commissioner.  If the total amount of allocated credits applied
     3  for in any particular year exceeds the aggregate amount of  tax  credits
     4  allowed  for  such year under this section, such excess shall be treated
     5  as having been applied for on the first day of the subsequent year.
     6    (6) Claim of credit. A taxpayer shall not be  allowed  to  claim  this
     7  credit  to  the  extent  the basis of the calculation of this credit has
     8  been claimed for another tax credit under this chapter.
     9    § 4. The labor law is amended by adding a new section 25-d to read  as
    10  follows:
    11    § 25-d. Power to administer the small business tax credit for disabled
    12  persons tax credit program. (a) The commissioner is authorized to estab-
    13  lish  and  administer the small business tax credit for disabled persons
    14  to provide tax incentives to  small  business  employers  for  employing
    15  individuals  with  disabilities. The commissioner is authorized to allo-
    16  cate up to five million dollars of tax credits annually.
    17    (b) Definitions. (1) The term "qualified employer" means  an  employer
    18  that  has been certified by the commissioner to participate in the small
    19  business tax credit for disabled persons tax  credit  program  and  that
    20  employs one or more qualified employees.
    21    (2) The term "qualified employee" means an individual:
    22    (i)  who has any physical, mental or medical impairment resulting from
    23  anatomical, physiological,  genetic  or  neurological  conditions  which
    24  prevents  the exercise of a normal bodily function or is demonstrable by
    25  medically accepted clinical or laboratory diagnostic techniques;
    26    (ii) who has worked for the qualified employer in a full-time or part-
    27  time position that pays wages that are equivalent to the wages paid  for
    28  similar  jobs, with appropriate adjustments for experience and training,
    29  and for which no other  employee  has  been  terminated,  or  where  the
    30  employer  has  not otherwise reduced its workforce by involuntary termi-
    31  nations with the intention of filling the  vacancy  by  creating  a  new
    32  hire;
    33    (iii)  who  has  not  worked  for  an  entity related to the qualified
    34  employer in the past twenty-four months; and
    35    (iv) is employed in New York at a location in New York state.
    36    (c) A qualified employer shall be entitled to a tax  credit.  The  tax
    37  credits  shall  be  claimed  by  the  qualified employer as specified in
    38  subdivision fifty-five of section two hundred ten-B and subsection (kkk)
    39  of section six hundred six of the tax law.
    40    (d) To participate in the  small  business  tax  credit  for  disabled
    41  persons tax credit program, an employer must submit an application (in a
    42  form  prescribed  by  the commissioner) to the commissioner. The commis-
    43  sioner shall establish guidelines that specify requirements for  employ-
    44  ers  to  participate  in  the  program including criteria for certifying
    45  qualified employees. Any regulations that  the  commissioner  determines
    46  are  necessary  may  be  adopted  on  an emergency basis notwithstanding
    47  anything to the contrary in section two hundred two of the state  admin-
    48  istrative  procedure  act.  Such  requirements  may include the types of
    49  industries that the employers are engaged in.
    50    (e) If, after reviewing the application submitted by an employer,  the
    51  commissioner determines that such employer is eligible to participate in
    52  the  small  business tax credit for disabled persons tax credit program,
    53  the commissioner shall issue the employer a preliminary  certificate  of
    54  eligibility  that  establishes the employer as a qualified employer. The
    55  certificate of eligibility shall specify the  maximum  amount  of  small
    56  business  tax  credit  for  disabled  persons  that the employer will be

        A. 8996                             4
 
     1  allowed to claim. At the end of the taxable year, a  qualified  employer
     2  must  obtain a final certificate of eligibility from the commissioner to
     3  file with a return claiming  the  credit.  The  final  certificate  must
     4  contain  the certificate's taxable year to which the credit applies, the
     5  maximum amount of the credit allowed, the qualified employer's name  and
     6  employer  identification  number,  the employer's business address where
     7  the claimed employees were employed,  the  social  security  numbers  of
     8  claimed  employees  and  their  hire and termination dates, verification
     9  that the claimed employees have met the statutory definition of  "quali-
    10  fied  employee",  and  each  employee's total hours worked each quarter,
    11  hourly wage, and full-time or part-time status.
    12    § 5. This act shall take effect immediately and shall apply to taxable
    13  years beginning on or after January 1, 2021  and  shall  expire  and  be
    14  deemed repealed December 31, 2026.
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A08996 LFIN:

 NO LFIN
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A08996 Chamber Video/Transcript:

1-29-20Video (@ 01:52:23)Transcript pdf Transcript html
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