Bill > A01755

This bill establishes a first permanent payroll employee tax credit, which allows a business to receive a tax credit for the three years following the employment of its first permanent full-time employee. The credit is equal to a portion of the total cost to employ the permanent employee, with 25% in the first year, 20% in the second year, and 10% in the third year. The credit can be carried over for up to two succeeding years if not fully used in the initial year, but cannot reduce the tax liability of the credit claimant below zero. The aggregate amount of tax credits allowed under this provision and a related provision is $15 million each year, allocated by the commissioner. The bill applies to taxable years commencing on and after January 1, 2024.