SPONSOR: |
Sen. Poore & Rep. Q. Johnson & Rep. Heffernan |
|
Sens.
Bushweller, Ennis, Hocker, Lavelle, Marshall, Richardson, Townsend; Reps.
Baumbach, Bentz, Dukes, Gray, Kowalko, Mitchell, Mulrooney, Paradee, Ramone,
B. Short, D. Short, M. Smith, Wilson |
DELAWARE STATE SENATE 148th GENERAL ASSEMBLY |
SENATE BILL NO. 221 |
AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO DELAWARE TAX CREDITS. |
Section 1. Amend Title 30 of the Delaware Code by making insertions as shown by underlining as follows
Chapter 20B. Employer
Tax Credit for Hiring Individuals with Disabilities.
§20B-100. Declaration of Purpose.
The purpose of this Act is to provide Delaware’s employers an incentive to hire referrals from Vocational Rehabilitation. Provision of a hiring incentive is intended to implement public policy established by §3302 of Title 14, §5503 of Title 16, and 7909A of Title 29 which promote meaningful employment in integrated work settings for individuals with disabilities.
§20B-101.
Definitions.
For purposes of
this chapter:
(a)
“Designated State Agencies” means the Division of
Vocational Rehabilitation and the Division for the Visually Impaired.
(b) “Gross
wages” means that part of the sum reported on Form W-2, or equivalent form of
the United States Department of Treasury, Internal Revenue Service as “Medicare
wages and tips” that is attributable to Delaware sources.
(c)
"Vocational rehabilitation referral" means any individual who is
certified by the designated State agencies as:
(1) Having a physical or
mental disability which, for such individual, constitutes or results in a
substantial impediment to employment, and
(2) Having been referred to
the employer upon completion of, or while receiving, rehabilitative services
pursuant to:
a.
an Individualized Plan for Employment under a State plan for vocational
rehabilitation services approved under the Rehabilitation Act of 1973,
b. a program
of vocational rehabilitation carried out under chapter 31 of title 38, United States Code.
(d) “Qualified employer” means an
employer located in Delaware which hires and employs one or more vocational
rehabilitation referrals.
(e) “Secretary”
means the Secretary of the Department of Finance as described in §8302 of Title
29.
(f) “Sustained
employment” means a period of employment that is not less than 185 days during
the taxable year.
§20B-102 Credit
for wages paid to qualified employee.
(a) Subject to the limitations contained in
§20B-103 of this title and to such return requirements as may be imposed by the
State Bank Commissioner, the Insurance Commissioner, or the Secretary,
qualified employers shall be eligible during the year in which a qualified
employee is hired and for the 2 taxable years thereafter for credits against
the taxes imposed by the following statutory provisions:
(1) Chapter 11 of Title 5;
(2) Chapter 19 of this title;
(3) Chapter 11 of this title;
(4) Sections 702 and 703 of
Title 18.
(b) The amount
of the credit against the tax shall equal 10%, but in no event exceed $1,500,
of the gross wages paid by the qualified employer to a vocational
rehabilitation referral in the course of that employee’s sustained employment
during the taxable year.
( c ) To
the extent a qualified employer’s credits exceed the amounts otherwise due for
the taxes and fees listed under §20B-102(a) of this title, such unused credits
shall be paid to it in the nature of tax refunds.
§20B -103
Limitations.
Notwithstanding
§ 20B-102 of this Title, no vocational rehabilitation referral counted for
purposes of the tax credits under this Chapter may be included in the
calculation of employment for purposes of claiming tax credits by subchapters
II, III, IX and X of Chapter 20 of this
Title.
§20A-104. Rules
and Regulations.
The Director of
Revenue is authorized to promulgate rules and regulations consistent with this
chapter and require such facts and information be reported as the Director
deems necessary for administration and enforcement of this chapter. No rule or regulation adopted pursuant to the
authority granted in this section shall extend, modify or conflict with any law
of this State or the reasonable implication thereof.
Section 2. This Act shall be effective for vocational rehabilitation referrals hired on or after January 1, 2017.
SYNOPSIS
This Act is designed to further
promote the purpose of 16 Del. C. Chapter 96 (as amended). The intent is to
advance the number of work opportunities made available to Delawareans with
disabilities beyond those offered through State Use Law by presenting
employers incentives to employ this under-represented workforce. State Use
Law is a publically supported employment program that serves to create
employment to qualified persons with disabilities. By virtue of this Act, the
spirit and purpose of State Use as a means to develop the skills necessary to
gain employment in the private sector will be further enhanced and more
employment outcomes will be realized for the population of persons with
disabilities served by Vocational Rehabilitation Agencies. This legislation
is patterned on legislation enacted in 2012 (H.B. No. 275) which authorized a
similar tax credit for employers hiring qualified veterans. |
Author: Senator Poore