New York State Tax Department: Quarterly interest rates for April 1, 2014 through June 30, 2014.

Quarterly interest rates applicable to overpayments (refunds) and underpayments (late payments and assessments) for April 1, 2014 through June 30, 2014.

The New York State Tax Department establishes interest rates quarterly.   Rates are only effective for the time period specified.

Period: 04/01/14 – 06/30/14 Interest rate per annum compounded daily

Commonly viewed tax types Refunds Late payments & assessments
Income 1/ 2% 7.5%
Sales and Use 2% 14.5% *
Withholding 2% 7.5%
Corporation 1/ 2% 7.5%
All other tax types Refunds Late payments & assessments
Alcoholic Beverage 2% 7.5%
Beverage Container Deposits 2% 7.5%
Boxing & Wrestling 2% 7.5%
Cigarette NA 7.5%
Diesel Motor Fuel 2% 7.5%
Estate 2% 7.5%
Fuel Use Tax ** **
Generation-Skipping Transfer 2% 7.5%
Hazardous Waste 2% 15%
Highway Use 2% 7.5%
Metropolitan Commuter Transportation Medallion Taxicab Ride 2% 7.5%
Metropolitan Commuter Transportation Mobility Tax 2% 7.5%
Mortgage Recording 2% 7.5%
Motor Fuel 2% 7.5%
Petroleum Business 2% 7.5%
Real Estate Transfer 2% 7.5%
Tobacco Products NA 7.5%
Waste Tire Fee 2% 7.5%

*  The Tax Law requires the interest rate on sales tax assessments or late payments to be set at 14.5% for this quarter. However, if the Commissioner determines that the failure to pay or the delay in payment is due to reasonable cause and not willful neglect, the Commissioner may impose interest at the corporation tax late payment and assessment rate. That rate is 7.5% for this quarter.

**  Under section 527(f) of the Tax Law, the interest rates relating to the Fuel Use tax are set pursuant to the International Fuel Tax Agreement (IFTA). For more information regarding IFTA interest rates, see http://www.iftach.org/.

1/ There are a number of state and local governmental bodies that have interest rates tied to the overpayment and underpayment rates contained in either section 697(j) (Income Tax) or section 1096(e) (Corporation Tax) of the Tax Law. For purposes of section 697(j) and section 1096(e) of the Tax Law, the overpayment rate for this period is 2%. For purposes of section 697(j) of the Tax Law, the underpayment rate for this period is 7.5%. For purposes of section 1096(e) of the Tax Law, the underpayment rate for this period is also 7.5%.

New York State Individual Tax Return Forms 2013 (Residents and Non-residents)

Full-Year New York State resident forms and instructions

Income tax highlights for 2013

General changes for 2013

  • Form IT-201-V required if paying by check or money order
    All taxpayers making a payment by check or money order must now complete and submit Form IT-201-V, Payment Voucher for Income Tax Returns
  • Third-party designee
    Authorizations for a third-party designee will no longer expire. An authorization will now continue until you revoke it, which you may do at any time by contacting the Tax Department.
  • Filing information for same-sex married couples
    As a result of the Supreme Court’s decision United States v. Windsor, and IRS Revenue Ruling 2013-17, for federal tax purposes the IRS will recognize a marriage between a same-sex couple that is a legal marriage under the laws of the jurisdiction (either domestic or foreign) where the marriage was performed. See Personal income tax information for same-sex married couples.
  • Web File for free
    The Tax Department’s new Web File service may let you prepare and file your income tax return for free.
  • Federal limit on itemized deductions
    Federal itemized deductions are once again limited for taxpayers with federal adjusted gross income (AGI) that exceeds certain amounts. This limited amount is the starting point for calculating your New York itemized deduction.
  • New York itemized deduction
    The current 25% New York itemized deduction limitation for taxpayers with New York AGI over $10 million has been extended through tax year 2015.
  • Cost of living adjustment
    The New York State standard deduction and tax rate schedules have been adjusted to reflect the cost of living adjustment required under the Tax Law.
  • Sales and use tax report
    If you report $1,700 or more in sales or use tax on your income tax return, you must complete Form IT-135, Sales and Use Tax Report for Purchases of Items and Services Costing $25,000 or more.
  • Driver’s license suspension for outstanding tax liabilities
    A new provision of the law allows the New York State Department of Motor Vehicles to suspend your driver’s license if you have outstanding tax liabilities of $10,000 or more.

Changes to existing credits

New credit

New and revised income modifications

  • Addition modification for New York net operating loss (NOL) limitation
    A new addition modification replaces the previous method used to account for the New York limitation on a federal NOL deduction.
  • New York State Business Incubator and Innovation Hot Spot Support Act
    This act provides tax incentives to support the growth of companies in the early stages of development. See Form IT-223, Innovation Hot Spot Deduction, and its instructions.
  • Royalty income exclusion
    Changes have been made to the royalty and interest payment modification(s).

New voluntary contributions

  • New York State Teen Health Education Fund
    Taxpayers may donate any whole dollar amount to be used to supplement educational programs for health issues facing teens.
  • Honor and Remembrance of Veterans
    Taxpayers may donate any whole dollar amount to be used for the veterans remembrance and cemetery maintenance and operation fund.

Nonresident and part-year New York State resident forms and instructions

 

f you were a nonresident of New York State, you are subject to  New York State tax on income you received from New YorkState sources in 2013. If you were a resident of New York Statefor only part of 2013, you are subject to New York State tax on all income you received while you were a resident of the stateand on income you received from New York State sources while you were a nonresident. To compute the amount of tax due, use Form IT-203,

Nonresident and Part‑Year Resident Income TaxReturn
. You will compute a base tax as if you were a full-year
resident, then determine the percentage of your income that is
subject to New York State tax and the amount of tax apportioned
to New York State.

 

2012 New York State Individual Tax Return Forms

You must file a New York State income tax return if you’re a New York State resident and are required to file a federal return. You may also have to file a New York State return if you’re a nonresident of New York and you have income from New York State sources.

 

New York State residents – Form IT-201, Resident Income Tax Return

Instructions for Form IT-201

If

  • You have to file a federal return.
  • You didn’t have to file a federal return but your federal adjusted gross income1 plus New York additions2 was more than $4,000 ($3,000 if you are single1 and can be claimed as a dependent on another taxpayer’s federal return).
  • You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay.

You may have additional filing responsibilities if you’re a New York City or Yonkers resident or part-year resident or you have Yonkers income.

New York State nonresidents – Form IT-203, Nonresident and Part-Year Resident Income Tax Return

Instructions for Form IT-203

If

  • You’re a nonresident with New York source income and your New York adjusted gross income federal amount column (Form IT-203, line 31) exceeds your New York standard deduction.
  • You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay.
  • You want to claim any of the refundable or carryover credits available.
  • You’re subject to the New York State minimum income tax on tax preference items derived from or connected with New York sources.
  • You had a net operating loss for New York State personal income tax purposes for the tax year, without having a similar net operating loss for federal income tax purposes.

You may have additional filing responsibilities if you have Yonkers income.

New York State part-year residents – Form IT-203, Nonresident and Part-Year Resident Income Tax Return

Instructions for Form IT-203

If

  • You’re a part-year resident with any income during your resident period or you had New York source income during your nonresident period.
  • You want to claim a refund of any New York State, New York City, or Yonkers income taxes withheld from your pay.
  • You want to claim any of the refundable or carryover credits available.
  • You’re subject to the New York State minimum income tax on tax preference items derived from or connected with New York sources.
  • You’re a part-year resident and you are subject to a separate tax on any lump-sum distributions  for your resident period derived from or connected with New York sources.
  • You had a net operating loss for New York State personal income tax purposes for the tax year, without having a similar net operating loss for federal income tax purposes.

You may have additional filing responsibilities if you’re a New York City or Yonkers part-year resident or you have Yonkers income.

 

General changes for 2012

• New York State tax rates reduced

Certain rates within the New York State tax rate schedules
have been reduced, and the tax computation worksheets for
taxpayers with New York adjusted gross income of more than
$100,000 are now based on filing status.

• Forms IT-2, IT-1099-R, and IT-1099-UI eliminated

Taxpayers no longer file New York Forms IT-2, Summary
of W-2 Statements, IT-1099-R, Summary of Federal
Form 1099-R Statements, and IT-1099-UI, Summary of
Unemployment Compensation Payments. Instead, they must
include the state copy of certain federal forms with their New
York State returns.

• Whole dollar amounts required on income tax forms
For tax years 2012 and after, taxpayers may enter only whole
dollar amounts on income tax forms.

• Foreign account information required on Form IT-201
Taxpayers must now acknowledge if they have a financial
account located in a foreign country.

• Dependent exemption information must be entered on
Form IT-201
Taxpayers must now enter information for each dependent for
whom they claimed a dependent exemption on Form IT-201.

• Itemized deduction schedule now a separate form
The itemized deduction schedule has been moved from
Form IT-201 to new Form IT-201-D, Resident Itemized
Deduction Schedule. See the instructions for Form IT-201-D

• Penalty and interest line added to Form IT-201
Taxpayers may now enter and pay any penalty and interest
they owe directly on Form IT-201.

• Additional account information required on Form IT-201
For direct deposit or electronic funds withdrawal, taxpayers
must now designate whether the checking or savings account
is a personal or business account and enter the amount of the
electronic funds withdrawal (if applicable).

• STAR eligibility suspended for certain taxpayers with
past-due state tax liabilities
This program provides that taxpayers whose total past-due
state and local tax liabilities are $4,500 or more, and who own
real property, may have their STAR exemptions suspended.

• Metropolitan commuter transportation mobility tax
(MCTMT) threshold increased
The threshold for imposing the MCTMT on individuals with net
earnings from self-employment has increased from $10,000 to
$50,000 for tax years beginning on or after January 1, 2012.
See Form MTA-6, Metropolitan Commuter Transportation
Mobility Tax Return, and its instructions.

New credits

• Beer production credit
A new credit is available to registered beer distributors that
produce 60,000,000 or fewer gallons of beer in New York
State in the tax year. See Form IT-636, Beer Production
Credit, and its instructions.

• Empire State Jobs Retention Program
This program provides tax incentives to businesses that are
at risk of leaving the state due to the impact on business
operations of an event (such as a natural disaster) leading to
an emergency declaration by the governor. See Form IT-634,
Empire State Jobs Retention Program Credit, and its
instructions.

• New York Youth Works Tax Credit Program
This program provides tax incentives to qualified businesses
employing at-risk youths in full-time and part-time positions in
2012 and 2013. See Form IT-635, New York Youth Works Tax
Credit, and its instructions.

Changes to existing credits
• Empire State commercial production credit
This credit has been extended through tax years beginning
before January 1, 2015. See Form IT-246, Claim for Empire
State Commercial Production Credit, and its instructions.

• Empire State film post-production credit
Visit the Governor’s Office for Motion Picture and Television
Development Web site at www.nylovesfilm.com for information
concerning the amendments made to this credit.

• Biofuel production credit
This credit has been extended through tax years beginning
before January 1, 2020. See Form IT-243, Claim for Biofuel
Production Credit, and its instructions.

• Noncustodial parent earned income credit
This credit has been extended through tax years beginning
before January 1, 2015. See Form IT-209, Claim for
Noncustodial Parent New York State Earned Income Credit,
and its instructions.

• Clean heating fuel credit
This credit has been extended through tax years beginning
before January 1, 2017. See Form IT-241, Claim for Clean
Heating Fuel Credit, and its instructions.

• Solar energy system equipment credit
This credit has been expanded to include leased property.
See Form IT-255, Claim for Solar Energy System Equipment
Credit, and its instructions.

• Brownfield credits
The eligibility timeframe for the brownfield tax credits has
been extended from March 31, 2015, to December 31, 2015.
See Forms IT-611, Claim for Brownfield Redevelopment Tax
Credit, IT-612, Claim for Remediated Brownfield Credit for
Real Property Taxes, and IT-613, Claim for Environmental
Remediation Insurance Credit, and their instructions.

 

NYS-45, IT and Other Forms for 2013

IT-2104 (Fill-in) Instructions on form Employee’s Withholding Allowance Certificate
IT-2104-E (Fill-in) Instructions on form Certificate of Exemption from Withholding.
IT-2104-IND (Fill-in) Instructions on form New York State Certificate of Exemption from Withholding (Native Americans)
IT-2104-MS (Fill-in) Instructions on form New York State Withholding Exemption Certificate for Military Service Personnel
IT-2104-P (Fill-in) Instructions on form Annuitant’s Request for Income Tax Withholding
IT-2104.1 (Fill-in) Instructions on form New York State, City of New York, and City of Yonkers Certificate of Nonresidence and Allocation of Withholding Tax
NYS-1 (Fill-in) NYS-1-I
Instructions
Return of Tax Withheld
NYS-45 (Fill-in) NYS-45-I
(Instructions)
Quarterly Combined Withholding, Wage Reporting, Unemployment Insurance Return. Important note: check box to report availability of dependent health insurance benefits added
NYS-45-ATT (Fill-in) NYS-45-I
(Instructions)
Quarterly Combined Withholding, Wage Reporting, Unemployment Insurance Return – Attachment
NYS-45-X (Fill-in) NYS-45-X-I
(Instructions)
Amended Quarterly Combined Withholding, Wage Reporting, Unemployment Insurance Return
NYS-50 Employer’s Guide to Unemployment Insurance, Wage Reporting, and Withholding Tax
Withholding Tax Computation Rules, Tables and Methods
NYS-50-T Publication NYS-50-T, New York State, New York City, and Yonkers Withholding Tables and Methods – has been replaced by three publications, listed below. Employers can choose to download the publication(s) they need by using the links below.
NYS-50-T-NYS (1/13) New York State withholding tax tables and methods. This publication contains the wage bracket tables and exact calculation method for New York State withholding. The tax tables and methods have been revised for payrolls made on or after January 1, 2013.
NYS-50-T-NYC (5/11) New York City resident withholding tax tables and methods. This publication contains the wage bracket tables and exact calculation method for New York City resident withholding.
NYS-50-T-Y (1/13) Yonkers resident and nonresident withholding tax tables and methods. This publication contains the wage bracket tables and exact calculation method for Yonkers withholding. All the resident tax tables and methods have been revised for payrolls made on or after January 1, 2013.
NYS-100 NYS-100-I (Instructions) New York State Employer Registration for Unemployment Insurance, Withholding, and Wage Reporting
NYS-100A Instructions on form New York State Employer Registration for Unemployment Insurance, Withholding, and Wage Reporting for Agricultural Employment
NYS-100G Instructions on form New York State Employer Registration for Unemployment Insurance, Withholding, and Wage Reporting for Governmental Entities
NYS-100N Instructions on form New York State Employer Registration for Unemployment Insurance, Withholding, and Wage Reporting for Nonprofit Organizations
NYS-209 Instructions on form Instructions for Electronic Media Reporting of Employees Hired or Rehired

More

 

 

..

Hurricane Sandy Tax Relief – Filing and Payment Deadline Extension Eligibility – New York State

Extended deadlines apply to taxpayers, tax professionals, and relief workers directly affected by Hurricane Sandy.

Deadlines have been postponed for the period beginning on October 26, 2012, and ending before November 14, 2012, for:
• filing any returns, including those for personal income tax, corporate taxes, sales tax, highway use tax and any other taxes administered by the Tax Department;
• paying any tax (see Exceptions for certain deposits of withholding tax and metropolitan commuter transportation mobility tax (MCTMT)) or installment of tax, including
installment payments of estimated taxes;
• filing any requests for extensions or additional extensions of time to file;
• filing for a credit or refund (Note: This includes the filing of a protective claim for the MCTMT);
• filing for a redetermination of a deficiency, or an application for review of a decision;
• allowing a credit or a refund;
• assessing tax;
• giving or making a notice or demand for payment of tax;
• collecting tax by levy or otherwise;
• bringing suit by New York State for any tax liability;
• making of elections; and
• any other act required or permitted under the Tax Law or specified in the New York State Tax Regulations.

All deadlines for performance of the above required acts that fall on or after October 26, 2012, and before November 14, 2012, have been postponed to November 14, 2012.
Interest at the appropriate underpayment rate must be paid on tax payments received after November 14, 2012.
Taxpayers who were directly affected by the storm and are therefore eligible for this relief include:
• victims of the storm who reside in or have a principal place of business in New York State;
• all workers assisting in the relief activities in the designated counties;
• any taxpayer whose records necessary to meet tax filing, payment, or other deadlines are not available due to the storm;
• taxpayers who have difficulty in meeting tax filing, payment, or other deadlines because of disruptions in the transportation and delivery of documents by mail or private
delivery services, or due to disruptions in communications services (for example, telephone, facsimile, or electronic mail), resulting from the storm; and
• taxpayers whose tax practitioners were unable to complete work to meet tax filing, payment, and other deadlines on behalf of their clients due to the storm.
Fuel Use Tax (IFTA) – Taxpayers who are adversely affected and cannot meet the October 31, 2012, filing deadline, may file and pay the tax due on or before November 14, 2012.
Interest will not be due on any fuel use tax due to New York State for the period October 31, 2012, through November 14, 2012. However, interest may be due on tax due to
other jurisdictions.
New York is in the process of contacting the other IFTA jurisdictions to get permission to waive any interest that may be due to them as a result of the late filing of a report. Upon their
approval, New York will waive interest due to other jurisdictions. If the interest due on a late-filed report is waived by a jurisdiction, no interest will be imposed for the period
October 31, 2012, through November 14, 2012. However, if the report is filed after November 14, interest at the rate of 1% per month must be paid, calculated from November 14,
to the date of payment. If the interest due on a late-filed report is not waived by a jurisdiction, interest will be imposed on the tax due to that jurisdiction calculated to the date of payment.
Exceptions
Relief from these filing deadlines applies with the following exceptions:
• Remittances of income tax withheld by employers required to be made using Form NYS-1, Return of Tax Withheld, must be made timely.
• Remittances of withholding tax or MCTMT required to be made by employers through the PrompTax system must be made timely.
How to obtain relief
Taxpayers adversely affected by the storm do not need to apply for a waiver or an extension to obtain this relief.
Instructions will be made available on our Web site for taxpayers who e-file or Web file returns.
Paper filers should write Hurricane Sandy on the top center of the front page of any late-filed return, extension, declaration of estimated tax, estimated tax payment voucher, or other
document. Attach a brief explanation of the circumstances that adversely affected your ability to meet the tax deadline. Do not write this information on your envelope.
Relief provided – Returns filed or tax payments made in accordance with these rules will not be subject to any late filing, late payment, or underpayment penalties or interest for the
period from October 26, 2012, through November 14, 2012.
If any affected taxpayer receives a penalty notice from the Tax Department, the taxpayer should call the number on the notice to have the Tax Department abate any interest and any late
filing or late payment penalties that would otherwise apply during the period from October 26, 2012, to November 14, 2012. No penalty or interest will be abated for a taxpayer
who does not have a filing or payment due date (including an extended filing or payment due date) during this period.
Abatements of penalties on all other late filings of returns or late payments not made by the date required by law and not covered by this announcement will be handled on a
case-by-case basis.

Source

 

2012 Metropolitan commuter transportation mobility tax (MCTMT) changes

Employers

  • Beginning with the second quarter (4/1/12–6/30/12), if your payroll expense for the quarter:
    • Is $312,500 or less, you’re not subject to the MCTMT for that quarter.
    • Exceeds $312,500, use the appropriate rate shown below.
Payroll expense MCTMT Rate
Over $312,500 but not over $375,000 .11% (.0011)
Over $375,000 but not over $437,500 .23% (.0023)
Over $437,500 .34% (.0034)
  • Note: The payroll expense threshold for the first quarter remains $2,500 and the rate remains .34%. If your payroll expense exceeds $2,500 for January 1, 2012, through March 31, 2012, you’re subject to the MCTMT and must file a first quarter return due April 30, 2012.
  • The definition of an employer now excludes additional educational institutions beginning with the second quarter. For additional information, see TSB-M-12(1)MCTMT, Legislative Amendments to the Metropolitan Commuter Transportation Mobility Tax.

Professional Employer Organization (PEOs)

  • Beginning with the second quarter (04/01/12-06/30/12), a PEO will calculate its total MCTMT due based separately on the payroll expense of each of its clients and its own payroll expense.
  • Information on how to file and pay your MCTMT.

Self-employed individuals (including partners and members)

  • For tax years beginning on or after January 1, 2012, you’re not subject to the MCTMT if your net earnings from self-employment allocated to the MCTD are $50,000 or less for the tax year. (The threshold has increased from $10,000 to $50,000.)
  • Note: You’re still required to file your annual return for tax year 2011 on April 30, 2012, if your net earnings exceeded $10,000 in 2011.

Source

Form MTA-6, Metropolitan Commuter Transportation Mobility Tax Return For Self-Employed Individuals (including partners)

Link to  Form MTA-6

 

Individuals with net earnings from self-employment
General Individuals (including partners in partnerships and members of LLCs that
are treated as partnerships for federal income tax purposes) who have net
earnings from self-employment allocated to the MCTD are subject to the
MCTMT. However, if your total net earnings from self-employment
allocated to the MCTD are $50,000 or less for the tax year, no MCTMT is
due.
If you have net earnings from self-employment allocated to the MCTD from
more than one business or partnership, you must use the total of all your net
earnings from self-employment allocated to the MCTD for purposes of the
$50,000 threshold and to compute the tax. Additionally, the threshold and
the tax must be computed on an individual basis, even though you may file
a joint personal income tax return.

If you have employees, you may also be subject to the MCTMT as an
employer .

Note: For purposes of the MCTMT, a statutory employee is considered an
employee. Therefore the MCTMT is paid by the employer.
The Marriage
Equality Act
The Marriage Equality Act (Act) was signed into law on June 24, 2011. One
purpose of the Act is to provide that all marriages, whether of same-sex
couples or different-sex couples, will be treated equally under all laws of the
state. Accordingly, the Act applies to all taxes administered by the Tax
Department as of July 24, 2011.
For New York State purposes, you may be required to recompute your
federal income tax return, including your net earnings from
self-employment, as if you had been able to use a married filing status. You
must apply all the federal rules for married taxpayers (for example, IRC
section 179 limitations, spousal employment rules, etc.) when recalculating
your net earnings from self-employment.

The following definitions apply to the MCTMT for self-employed
individuals:
• Net earnings from self-employment means your net earnings from
self-employment as defined under section 1402(a) of the Internal
Revenue Code (IRC).
Note: Section 1402(b)(1) defines self-employment income subject to
social security taxes. However, in computing the amount of net
earnings from self-employment subject to the MCTMT,
section 1402(b), including the annual limitation on the amount of net
earnings from self-employment subject to social security tax under
section 1402(b)(1), does not apply. Generally, your net earnings from
self-employment for purposes of the MCTMT is the amount reported
on federal Schedule SE (Form 1040), Self-Employment Tax, Section A
or Section B depending on which section you are required to complete.

• Net earnings from self-employment allocated to the MCTD means your
net earnings from self-employment that are attributable to a business
carried on within the MCTD.
• Business activity is carried on in the MCTD if you have, maintain,
operate, or occupy desk space, an office, a shop, a store, a warehouse,
a factory, an agency, or other place located in the MCTD where your
business matters are systematically and regularly carried on. Similarly,
business activity is carried on outside of the MCTD if you have,
maintain, operate, or occupy desk space, an office, a shop, a store, a
warehouse, a factory, an agency, or other place located outside the
MCTD where your business matters are systematically and regularly
carried on.

If you do not have, maintain, operate, or occupy desk space, an office,
a shop, a store, a warehouse, a factory, an agency, or other place
located in or out of the MCTD, business is carried on within the
MCTD if activities in connection with your business are conducted
within the MCTD with a fair measure of permanency and continuity.

Source: PUB-420   Guide to the Metropolitan Commuter Transportation Mobility Tax

 

 

 

 

New York State: June 15, 2012 due date for corporation tax estimated taxpayers

Most taxpayers are mandated to Web File the following corporation tax forms.  You’ll need to create an Online Services account or file through approved software.

  • CT-400, Estimated Tax for Corporations
  • CT-5, Request for Six-Month Extension to File (franchise/business taxes, MTA surcharge, or both)
  • CT-5.3, Request for Six-Month Extension to File (for combined franchise or combined MTA surcharge return, or both)
  • CT-5.4, Request for Six-Month Extension to File New York S Corporation Franchise Tax Return
  • CT-5.9, Request for Three-Month Extension to File (for Article 9 tax return, MTA surcharge, or both)
  • CT-5.9-E, Request fo Three-Month Extension to File Form CT-186-E or Form CT-186-EZ (short form)

 You can’t Web File the CT-5.1, Request for Additional Extension of Time to File.  However, you can e-file the CT-5.1 through approved software.

Read more

Legislative Amendments to the New York Youth Works Tax Credit Program (May 4, 2012)

Legislative amendments to the New York Youth Works Tax Credit Program enacted as part of the 2012-2013 New York State budget (Chapter 59 of the Laws of 2012) that was signed into law on March 30, 2012.

The New York Youth Works Tax Credit Program was established by Chapter 56 of the Laws of 2011 to provide corporate and income tax incentives to qualified businesses employing at-risk youths in full-time and part-time positions. The program is administered by the Department of Labor.
Chapter 59 of the Laws of 2012 made several legislative amendments to the program. These amendments extend certain program deadlines and clarify the tax year(s) in which the separate components of the tax credit will be allowed. This memorandum describes the amendments made to the program under section 25-a of the Labor Law and sections 210.441 and 606(tt)2 of the Tax Law.
• The Labor Law has been amended to extend the application deadline for employers to participate in the program from June 1, 2012, to November 30, 2012. In addition, the deadline for qualified employees to start their employment under this program has been extended from July 1, 2012, to December 31, 2012.

• The Tax Law has been amended to clarify the tax year(s) in which a qualified employer will be allowed to claim a tax credit under the program as follows:
◦ A qualified employer will be allowed a credit amount of $500 per month for up to six months for each qualified employee employed in a full-time job, or $250 per month for up to six months for each qualified employee employed in a part-time job of at least 20 hours per week. The new law provides that this component of the credit will be allowed in the tax year in which the wages are paid to the qualified employee.
◦ A qualified employer will be allowed an additional credit of $1,000 for each qualified employee who is retained in a full-time job for six months beyond the first six months of employment (employed one full year). The new law provides that this
component of the credit will be allowed in the tax year in which the additional
six-month period ends.
◦ A qualified employer will be allowed an additional credit of $500 for each qualified
employee who is retained in a part-time job for six months beyond the first six
months of employment (employed one full year). The new law provides that this
component of the credit will be allowed in the tax year in which the additional
six-month period ends.

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New York State – Summary of Tax Provisions: 2012-13

Open Summary of Tax Provisions: 2012-13 in .pdf document.

Summary of Tax Provisions contains:

  • descriptions of the tax provisions contained in the budget legislation enacted for New York State’s fiscal year 2012-13
  • a tabular guide to the tax provisions in the budget bills, listing each provision and its bill section, page, description, and effective date.

Summary of SFY 2012-13 Tax Provisions

Tax Credits
New York Youth Works Tax Credit Program
Biofuel Production Credit
New York State Low-Income Housing Credit
Empire State Commercial Production Credit
Noncustodial Parent Earned Income Tax Credit
Tax Modernization
E-File Mandate and Tax Modernization
Corporate Taxes
Gramm-Leach-Bliley Transitional Provisions
Fuel Taxes
Alternative Fuel Exemptions Extended
Diesel Motor Fuel Tax Definitions – Technical Fix
Real Property Taxes
Extending Oil and Gas Charges 4
Eliminating STAR for those with Past Due Obligations 5
Miscellaneous Provisions
MCTMT Rates for Professional Employer
Organizations
Extend the lower Pari-Mutuel Tax Rates
Distribution of Revenue from Sections 183 and 184
Amend Hotel Room Remarketer Sales Tax Compliance
Public Safety Communications Surcharge
Appendix Appendix A: Index of SFY 2012-13 Tax Provisions
Appendix B: Summary of Tax Changes Enacted in 2011
Extraordinary Legislative Session