N.Y. LAB Law § 25-C — New York Code / Act LAB / Article 2 / Section 25-C
Power to administer the empire state apprenticeship tax credit program
Status: in_force

§ 25-c. Power to administer the empire state apprenticeship tax credit\nprogram. (a) The commissioner is authorized to establish and administer\nthe empire state apprenticeship tax credit program to provide tax\nincentives to certified employers for employing qualified apprentices\npursuant to an apprenticeship agreement registered with the department\npursuant to paragraph (d) of subdivision one of section eight hundred\neleven of this chapter. The commissioner is authorized to allocate up to\nten million dollars of tax credits annually, beginning in two thousand\neighteen and ending before two thousand twenty-eight. Any unused annual\nallocation of the credit shall be made available in each of the\nsubsequent years before two thousand twenty-eight.\n  (b) Definitions. (1) The term "qualified apprenticeship agreement"\nmeans an apprenticeship agreement as defined by section eight hundred\nsixteen of this chapter that has been registered with, and approved by,\nthe commissioner, for a trade other than a construction trade.\n  (2) The term "qualified employer" means an employer that has or\nparticipates in a commissioner approved registered apprenticeship\nprogram.\n  (3) The term "construction" means constructing, reconstructing,\naltering, maintaining, moving, rehabilitating, repairing, renovating,\nfabricating, servicing, or demolition of any building, structure, or\nimprovement, or component, or relating to the excavation of or other\ndevelopment or improvement to land.\n  (4) The term "participating employer" means a qualified employer that\nhas applied to participate in the empire state apprenticeship tax credit\nprogram and received a preliminary certificate of tax credit from the\ncommissioner. The preliminary certificate shall state the maximum amount\nof the tax credit that the employer may be able to claim if the\napplicant becomes a "certified employer."\n  (5) The term "certified employer" means a qualified employer that has\nreceived a final certificate of eligibility from the commissioner after\nthe commissioner has determined that the qualified employer has\nfulfilled all the requisite eligibility criteria to participate in the\nempire state apprenticeship tax credit program established in this\nsection. The final certificate of eligibility shall state the actual\namount of tax credit that a certified employer is entitled to claim and\nthe allocation year of the credit.\n  (6) The term "qualified apprentice" means an individual employed by a\nparticipating employer in a full time position for at least six months\nof a calendar year pursuant to a qualified apprenticeship agreement with\na qualified employer. No individual employed by a qualified employer\nshall be deemed a qualified apprentice if such individual has not\ncompleted their apprenticeship training program within one year of their\nexpected date of completion of their program.\n  (7) The term "disadvantaged youth" means an individual:\n  (i) who is between the ages of sixteen and twenty-four when the youth\nbegins the apprenticeship; and\n  (ii) who is low-income or at-risk, as those terms are defined by the\ncommissioner.\n  (8) The term "mentor" means an individual who provides instruction,\nguidance, and support to the apprentice on a regular basis throughout\nthe apprentice's completion of the apprenticeship as the apprentice\nseeks employment in the field or industry of the apprenticeship. The\ngoal of the mentor is to help train the apprentice in his or her trade\nand to help the apprentice successfully complete the apprenticeship and\nto secure and retain employment.\n  (c)(1) A certified employer shall be entitled to a tax credit against\nincome or franchise tax for each qualified apprentice. The base credit\nallowed under this program shall be computed as follows:\n  (A) (1) two thousand dollars for each first year apprentice; (2) three\nthousand dollars for each second year apprentice;(3) four thousand\ndollars for each third year apprentice; (4) five thousand dollars for\neach fourth year apprentice; and (5) six thousand dollars for each fifth\nyear apprentice. The apprentice's status as a first, second, third,\nfourth or fifth year apprentice will be determined on the last day of\nthe calendar year, or if the apprentice is no longer employed by the\nparticipating employer on the last day of the calendar year, on the last\nday of the apprentice's employment with the participating employer; or\n  (B) in lieu of the credit specified in subparagraph (A) of this\nparagraph, for each qualified apprentice who is considered a\ndisadvantaged youth for each tax year: (1) five thousand dollars for\neach first year apprentice; (2) six thousand dollars for each second\nyear apprentice; and (3) seven thousand dollars for each third, fourth,\nor fifth year apprentice. The apprentice's status as a first, second,\nthird, fourth or fifth year apprentice will be determined on the last\nday of the calendar year, or if the apprentice is no longer employed by\nthe participating employer on the last day of the calendar year, on the\nlast day of the apprentice's employment with the participating employer.\nIf a disadvantaged youth begins an apprenticeship before the age of\ntwenty-five, a certified employer shall be eligible to continue to\nreceive the tax credit for such youth under this subparagraph until that\napprentice completes the apprenticeship.\n  (2) If an apprentice has been trained in his or her trade by a mentor\nfor the entirety of the calendar year, the base credit amounts described\nin paragraph one of this subdivision shall be increased by five hundred\ndollars.\n  (3) The certified employer shall not be allowed a tax credit under\nthis program for any apprentice, if that apprentice is the basis for any\nother state tax credit.\n  (d) Application and approval process. (1) To participate in the\nprogram established under this section, a qualified employer must submit\nto the commissioner an application in a form prescribed by the\ncommissioner. As part of such application, a qualified employer must:\n  (A) Agree to allow the department of taxation and finance to share its\ntax information with the department. However, any information shared as\na result of this agreement shall not be available for disclosure or\ninspection under the state freedom of information law.\n  (B) Allow the department and its agents access to any and all books\nand records the department may require to monitor compliance.\n  (2) After reviewing a qualified employer's completed application and\ndetermining that the qualified employer will meet the eligibility\nconditions set forth under this section and any applicable regulations\npromulgated by the commissioner, the commissioner may admit the\napplicant into the program as a participating employer and provide the\napplicant with a preliminary certificate of eligibility establishing the\nqualified employer as a participating employer and stating the maximum\namount of credit for which the applicant may be eligible.\n  (3) To receive a final certificate of tax credit, the participating\nemployer must annually submit a final report to the commissioner, in a\nform prescribed by the commissioner. The report must demonstrate that\nthe applicant has satisfied all eligibility requirements and provided\nall the information necessary for the commissioner to compute an actual\namount of credit allowed for that calendar year, notwithstanding the\nfact that a participating employer's taxable year may be a fiscal year,\nas defined in subdivision ten of section two hundred eight of the tax\nlaw.\n  (4) After reviewing the final report and finding it sufficient, the\ncommissioner shall certify the participating employer as a certified\nemployer and issue a final certificate of tax credit. Such certificate\nshall include, but not be limited to, the following information:\n  (A) The name and employer identification number of the certified\nemployer;\n  (B) The actual amount of credit to which the certified employer is\nentitled for that calendar year, which actual amount cannot exceed the\namount of credit listed on the preliminary certificate but may be less\nthan such amount;\n  (C) The allocation year of the credit.\n  (5) If a certified employer's taxable year is a fiscal year, it shall\nbe entitled to claim the credit on the return for the fiscal year that\nincludes the last day of the calendar year covered by the final\ncertificate of tax credit.\n  (e) The commissioner shall establish guidelines and criteria that\nspecify requirements for qualified employers to participate in the\nprogram including criteria for certifying qualified apprentices. Any\nregulations that the commissioner determines are necessary and are\nconsistent with the purpose of this article may be adopted on an\nemergency basis notwithstanding any provisions to the contrary in the\nstate administrative procedure act. The commissioner may give preference\nto qualified employers that hire and train disadvantaged youth through\nqualified apprenticeship agreements, and qualified employers that are\nengaged in demand occupations or industries, or in regional growth\nsectors, including those identified by the department, such as clean\nenergy, health care, technology, including software engineering and web\ndevelopment, advanced manufacturing and conservation. In addition, the\ncommissioner may give preference to employers that employ apprentices in\nnewly established apprenticeship programs. The commissioner also may\ntake the following factors into consideration when evaluating whether to\napprove an application in a year subsequent to the year in which a\nqualified employer was determined to be a certified employer:\n  (1) the length of the qualified apprenticeship agreement the employer\nhas entered into;\n  (2) how many apprentices have graduated from the apprenticeship\nprogram to which the qualified apprentice employed by the employer\nbelongs;\n  (3) how many apprentices in the apprenticeship program the qualified\nemployer has hired; and\n  (4) any other factors the commissioner deems relevant.\n  (f) The commissioner shall annually publish a report. Such report must\ncontain the names and addresses of any certified employer issued a final\ncertificate of eligibility under this section, the work location of each\napprentice generating credit, the amount of empire state apprenticeship\ntax credit allowed to the certified employer as specified on such final\ncertificate of eligibility, and the number of each of the first year\napprentices, second year apprentices, third year apprentices, fourth\nyear apprentices, and fifth year apprentices, and how many of each of\nthose types are considered disadvantaged youth. The commissioner shall\ninclude in such report the relevant industries of certified employers\nand recommendations for legislative or other action to further the\nintent and purpose of the empire state apprenticeship tax credit\nprogram.\n  (g) The commissioner shall promote, publish and disseminate\ninformation concerning the empire state apprenticeship tax credit and\nother available funding, particularly targeting industries and fields of\nbusiness not currently taking advantage of apprenticeships.\n