N.Y. Labor Law § 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-eight. Any unused annual

allocation of the credit shall be made available in each of the

subsequent years before two thousand twenty-eight.

(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.