Bill > S01301

This bill establishes a tax credit program designed to incentivize businesses in New York State to hire their first full-time, permanent employee by offering a graduated tax credit over three years. Specifically, the bill allows businesses to receive a tax credit equal to 25% of the total employment costs in the first year, 20% in the second year, and 10% in the third year after hiring their first permanent payroll employee. The total cost to employ includes base salary, New York state payroll taxes, and the value of employment benefits. The credit is subject to an annual aggregate limit of $15 million, which will be allocated by the state commissioner, and can be carried over to subsequent tax years if not fully utilized. Businesses can only claim the credit for their first permanent employee and cannot use the credit to reduce their tax liability below zero. Additionally, the credit cannot be claimed if the same basis has been used for another tax credit. The bill will take effect for taxable years beginning on or after January 1, 2025, providing a new economic incentive for small businesses and startups to create their first permanent job position.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S1301