NY Lab L § 25-C (2021)
2021 New York Laws LAB - Labor Article 2 - The Department of Labor 25-C - Power to Administer the Empire State Apprenticeship Tax Credit Program.

§ 25-c. Power to administer the empire state apprenticeship tax credit program.  (a) The commissioner is authorized to establish and administer the empire state  apprenticeship  tax  credit  program  to  provide  tax incentives  to  certified  employers for employing qualified apprentices pursuant to an apprenticeship agreement registered with  the  department pursuant  to  paragraph  (d) of subdivision one of section eight hundred eleven of this chapter. The commissioner is authorized to allocate up to ten million dollars of tax credits annually, beginning in  two  thousand eighteen  and ending before two thousand twenty-three. Any unused annual allocation of the  credit  shall  be  made  available  in  each  of  the subsequent years before two thousand twenty-three.  (b)  Definitions.  (1)  The  term "qualified apprenticeship agreement" means an apprenticeship agreement as defined by  section  eight  hundred sixteen  of this chapter that has been registered with, and approved by, the commissioner, for a trade other than a construction trade.  (2) The term "qualified  employer"  means  an  employer  that  has  or participates   in  a  commissioner  approved  registered  apprenticeship program.  (3)  The  term  "construction"  means  constructing,   reconstructing, altering,  maintaining,  moving,  rehabilitating, repairing, renovating, fabricating, servicing, or demolition of  any  building,  structure,  or improvement,  or  component,  or  relating to the excavation of or other development or improvement to land.  (4) The term "participating employer" means a qualified employer  that has applied to participate in the empire state apprenticeship tax credit program  and  received  a preliminary certificate of tax credit from the commissioner. The preliminary certificate shall state the maximum amount of the tax credit that  the  employer  may  be  able  to  claim  if  the applicant becomes a "certified employer."  (5)  The term "certified employer" means a qualified employer that has received a final certificate of eligibility from the commissioner  after the   commissioner  has  determined  that  the  qualified  employer  has fulfilled all the requisite eligibility criteria to participate  in  the empire  state  apprenticeship  tax  credit  program  established in this section. The final certificate of eligibility  shall  state  the  actual amount  of tax credit that a certified employer is entitled to claim and the allocation year of the credit.  (6) The term "qualified apprentice" means an individual employed by  a participating  employer  in a full time position for at least six months of a calendar year pursuant to a qualified apprenticeship agreement with a qualified employer. No individual employed  by  a  qualified  employer shall  be  deemed  a  qualified  apprentice  if  such individual has not completed their apprenticeship training program within one year of their expected date of completion of their program.  (7) The term "disadvantaged youth" means an individual:  (i) who is between the ages of sixteen and twenty-four when the  youth begins the apprenticeship; and  (ii)  who  is low-income or at-risk, as those terms are defined by the commissioner.  (8) The term "mentor" means an individual  who  provides  instruction, guidance,  and  support  to the apprentice on a regular basis throughout the apprentice's completion of  the  apprenticeship  as  the  apprentice seeks  employment  in  the  field or industry of the apprenticeship. The goal of the mentor is to help train the apprentice in his or  her  trade and  to help the apprentice successfully complete the apprenticeship and to secure and retain employment.  (c)(1) A certified employer shall be entitled to a tax credit  against income  or  franchise tax for each qualified apprentice. The base credit allowed under this program shall be computed as follows:  (A) (1) two thousand dollars for each first year apprentice; (2) three thousand  dollars  for  each  second  year  apprentice;(3) four thousand dollars for each third year apprentice; (4) five  thousand  dollars  for each fourth year apprentice; and (5) six thousand dollars for each fifth year  apprentice.  The  apprentice's  status  as a first, second, third, fourth or fifth year apprentice will be determined on the  last  day  of the  calendar  year,  or  if the apprentice is no longer employed by the participating employer on the last day of the calendar year, on the last day of the apprentice's employment with the participating employer; or  (B) in lieu of the  credit  specified  in  subparagraph  (A)  of  this paragraph,   for   each   qualified   apprentice  who  is  considered  a disadvantaged youth for each tax year: (1)  five  thousand  dollars  for each  first  year  apprentice;  (2) six thousand dollars for each second year apprentice; and (3) seven thousand dollars for each third,  fourth, or  fifth  year  apprentice. The apprentice's status as a first, second, third, fourth or fifth year apprentice will be determined  on  the  last day  of the calendar year, or if the apprentice is no longer employed by the participating employer on the last day of the calendar year, on  the last day of the apprentice's employment with the participating employer. If  a  disadvantaged  youth  begins  an apprenticeship before the age of twenty-five, a certified employer  shall  be  eligible  to  continue  to receive the tax credit for such youth under this subparagraph until that apprentice completes the apprenticeship.  (2)  If an apprentice has been trained in his or her trade by a mentor for the entirety of the calendar year, the base credit amounts described in paragraph one of this subdivision shall be increased by five  hundred dollars.  (3)  The  certified  employer  shall not be allowed a tax credit under this program for any apprentice, if that apprentice is the basis for any other state tax credit.  (d) Application and  approval  process.  (1)  To  participate  in  the program established under this section, a qualified employer must submit to  the  commissioner  an  application  in  a  form  prescribed  by  the commissioner. As part of such application, a qualified employer must:  (A) Agree to allow the department of taxation and finance to share its tax information with the department. However, any information shared  as a  result  of  this  agreement  shall not be available for disclosure or inspection under the state freedom of information law.  (B) Allow the department and its agents access to any  and  all  books and records the department may require to monitor compliance.  (2)  After  reviewing a qualified employer's completed application and determining that  the  qualified  employer  will  meet  the  eligibility conditions  set  forth under this section and any applicable regulations promulgated  by  the  commissioner,  the  commissioner  may  admit   the applicant  into  the program as a participating employer and provide the applicant with a preliminary certificate of eligibility establishing the qualified employer as a participating employer and stating  the  maximum amount of credit for which the applicant may be eligible.  (3)  To  receive  a final certificate of tax credit, the participating employer must annually submit a final report to the commissioner,  in  a form  prescribed  by  the commissioner. The report must demonstrate that the applicant has satisfied all eligibility  requirements  and  provided all  the information necessary for the commissioner to compute an actual amount of credit allowed for that  calendar  year,  notwithstanding  the fact  that a participating employer's taxable year may be a fiscal year,  as defined in subdivision ten of section two hundred eight  of  the  tax law.  (4)  After  reviewing  the final report and finding it sufficient, the commissioner shall certify the participating  employer  as  a  certified employer  and  issue a final certificate of tax credit. Such certificate shall include, but not be limited to, the following information:  (A) The name and  employer  identification  number  of  the  certified employer;  (B)  The  actual  amount  of credit to which the certified employer is entitled for that calendar year, which actual amount cannot  exceed  the amount  of  credit listed on the preliminary certificate but may be less than such amount;  (C) The allocation year of the credit.  (5) If a certified employer's taxable year is a fiscal year, it  shall be  entitled  to claim the credit on the return for the fiscal year that includes the last  day  of  the  calendar  year  covered  by  the  final certificate of tax credit.  (e)  The  commissioner  shall  establish  guidelines and criteria that specify requirements for  qualified  employers  to  participate  in  the program  including  criteria  for  certifying qualified apprentices. Any regulations that the  commissioner  determines  are  necessary  and  are consistent  with  the  purpose  of  this  article  may  be adopted on an emergency basis notwithstanding any provisions to the  contrary  in  the state administrative procedure act. The commissioner may give preference to  qualified  employers that hire and train disadvantaged youth through qualified apprenticeship agreements, and qualified  employers  that  are engaged  in  demand  occupations  or  industries,  or in regional growth sectors, including those identified by the  department,  such  as  clean energy,  health care, technology, including software engineering and web development, advanced manufacturing and conservation. In  addition,  the commissioner may give preference to employers that employ apprentices in newly  established  apprenticeship  programs.  The commissioner also may take the following factors into consideration when evaluating whether to approve an application in a year subsequent  to  the  year  in  which  a qualified employer was determined to be a certified employer:  (1)  the length of the qualified apprenticeship agreement the employer has entered into;  (2) how  many  apprentices  have  graduated  from  the  apprenticeship program  to  which  the  qualified  apprentice  employed by the employer belongs;  (3) how many apprentices in the apprenticeship program  the  qualified employer has hired; and  (4) any other factors the commissioner deems relevant.  (f) The commissioner shall annually publish a report. Such report must contain the names and addresses of any certified employer issued a final certificate of eligibility under this section, the work location of each apprentice  generating credit, the amount of empire state apprenticeship tax credit allowed to the certified employer as specified on such  final certificate  of  eligibility,  and  the number of each of the first year apprentices, second year apprentices,  third  year  apprentices,  fourth year  apprentices,  and  fifth year apprentices, and how many of each of those types are considered disadvantaged youth. The  commissioner  shall include  in  such  report the relevant industries of certified employers and recommendations for legislative  or  other  action  to  further  the intent  and  purpose  of  the  empire  state  apprenticeship  tax credit program.  (g)  The  commissioner  shall   promote,   publish   and   disseminate information  concerning  the  empire state apprenticeship tax credit and  other available funding, particularly targeting industries and fields of business not currently taking advantage of apprenticeships.