Bill > A04454

This bill establishes a first permanent payroll employee tax credit for businesses in New York State, designed to incentivize companies to hire their first full-time, permanent employee. Under this legislation, businesses can receive a tax credit for three consecutive years after hiring their first permanent employee, with the credit amount decreasing each year: 25% of the total employment cost in the first year, 20% in the second year, and 10% in the third year. The "total cost to employ" includes base salary, New York state payroll taxes, and employment benefits. The credit is capped at $15 million annually and can be carried over to subsequent tax years if not fully used, though it cannot reduce a taxpayer's tax liability below zero. To qualify, the employee must be the first full-time, permanent worker on the company's payroll, and businesses cannot claim this credit if they have already used the same basis for another tax credit. The bill will take effect on January 1, 2025, and aims to encourage small businesses and startups to create new jobs by providing financial incentives for their first permanent hire.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A4454