New York Assembly Bill A03238 Latest Draft

   
  STATE OF NEW YORK ________________________________________________________________________ 3238 2025-2026 Regular Sessions  IN ASSEMBLY January 27, 2025 ___________ Introduced by M. of A. JONES -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to establishing a returning veterans tax credit for businesses that hire veterans and disabled veterans 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 61 to read as follows: 3 61. Returning veterans tax credit. (a) General. A taxpayer shall be 4 allowed a credit, to be computed as provided in this subdivision, 5 against the tax imposed by this article for each veteran or disabled 6 veteran hired during a taxable year, provided that: 7 (i) such veteran is a new employee and is employed for thirty-five 8 hours or more per week and remains in the employ of such taxpayer for 9 twelve months or more; or 10 (ii) such disabled veteran is a new employee who is employed for 11 seventeen and one-half hours or more per week and remains in the employ 12 of such taxpayer for twelve months or more. 13 (b) Amount of credit. A credit authorized by this section shall equal 14 three thousand dollars per hired veteran and four thousand dollars per 15 hired disabled veteran but shall not exceed fifteen thousand dollars 16 annually. 17 (c) Carryovers. The credit allowed under this subdivision may be 18 claimed and if not fully used in the initial year for which the credit 19 is claimed may be carried over, in order, to each of the ten succeeding 20 taxable years. The credit authorized by this subdivision may not be used 21 to reduce the tax liability of the credit claimant below zero. 22 (d) Definitions. As used in this subdivision, the following terms 23 shall have the following meanings: 24 (i) "New employee" shall mean any full time employee that causes the 25 total number of employees to increase above base employment or credit 26 employment, whichever is higher. 27 (ii) "Base year" shall mean calendar year two thousand twenty-three. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03038-01-5 
 A. 3238 2 1 (iii) "Base employment" shall mean the average number of full time 2 employees or full time equivalent employees during the base year. For a 3 new business, base employment shall begin at zero. 4 (iv) "Credit employment" shall mean base employment plus the number of 5 new employees for which a credit is earned for the prior tax years. 6 (v) "Veteran" shall have the same meaning as set forth in section 7 eighty-five of the civil service law. 8 (vi) "Disabled veteran" shall have the same meaning as set forth in 9 section eighty-five of the civil service law. 10 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 11 of the tax law is amended by adding a new clause (lii) to read as 12 follows: 13 (lii) Returning veterans tax Costs under subdivision 14 credit; subsection (qqq) sixty-one of section 15 two hundred ten-B 16 § 3. Section 606 of the tax law is amended by adding a new subsection 17 (qqq) to read as follows: 18 (qqq) Returning veterans tax credit. (1) General. A taxpayer shall be 19 allowed a credit, to be computed as provided in this subsection, against 20 the tax imposed by this article for each veteran or disabled veteran 21 hired during a taxable year, provided that: 22 (i) such veteran is a new employee and is employed for thirty-five 23 hours or more per week and remains in the employ of such taxpayer for 24 twelve months or more; or 25 (ii) such disabled veteran is a new employee and is employed for 26 seventeen and one-half hours or more per week and remains in the employ 27 of such taxpayer for twelve months or more. 28 (2) Amount of credit. A credit authorized by this section shall equal 29 three thousand dollars per hired veteran and four thousand dollars per 30 hired disabled veteran but shall not exceed fifteen thousand dollars 31 annually. 32 (3) Carryovers. The credit allowed under this subsection may be 33 claimed and if not fully used in the initial year for which the credit 34 is claimed may be carried over, in order, to each of the ten succeeding 35 taxable years. The credit authorized by this subsection may not be used 36 to reduce the tax liability of the credit claimant below zero. 37 (4) Definitions. As used in this subsection, the following terms shall 38 have the following meanings: 39 (i) "New employee" shall mean any full time employee that causes the 40 total number of employees to increase above base employment or credit 41 employment, whichever is higher. 42 (ii) "Base year" shall mean calendar year two thousand twenty-five. 43 (iii) "Base employment" shall mean the average number of full time 44 employees or full time equivalent employees during the base year. For a 45 new business, base employment shall begin at zero. 46 (iv) "Credit employment" shall mean base employment plus the number of 47 new employees for which a credit is earned for the prior tax years. 48 (v) "Veteran" shall have the same meaning as set forth in section 49 eighty-five of the civil service law. 50 (vi) "Disabled veteran" shall have the same meaning as set forth in 51 section eighty-five of the civil service law. 52 § 4. This act shall take effect immediately and shall apply to taxable 53 years beginning on or after January 1, 2026 and shall apply to those 54 employees hired after this act shall take effect.