Bill Text: NY A01556 | 2019-2020 | General Assembly | Amended
Bill Title: Relates to providing a re-entry employment incentive tax credit for taxpayers who hire individuals convicted of a felony in the last five years and who have been released from a correctional facility or are serving a period of post-release supervision in the last five years.
Spectrum: Moderate Partisan Bill (Democrat 10-3)
Status: (Introduced - Dead) 2020-01-30 - print number 1556a [A01556 Detail]
Download: New_York-2019-A01556-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 1556--A 2019-2020 Regular Sessions IN ASSEMBLY January 15, 2019 ___________ Introduced by M. of A. RICHARDSON, CRUZ, ARROYO, EPSTEIN, D'URSO, ASHBY, BLAKE, DICKENS, DeSTEFANO, MORINELLO, JAFFEE, HYNDMAN, BARRON -- read once and referred to the Committee on Ways and Means -- recommitted to the Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law, in relation to providing a re-entry employ- ment incentive tax credit The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 55 to read as follows: 3 55. Re-entry employment incentive tax credit. (a) A taxpayer shall be 4 allowed a credit, to be computed as hereinafter provided, against the 5 tax imposed by this article in the amount prescribed by this subdivision 6 where such taxpayer employs one or more qualifying individuals desig- 7 nated pursuant to paragraph (c) of this subdivision. 8 (b) The amount of the credit shall be as follows for each qualifying 9 individual employed by the taxpayer: 10 (i) fifty percent of the qualified wages in the first year of employ- 11 ment; 12 (ii) forty percent of qualified wages in the second year of employ- 13 ment; and 14 (iii) thirty percent of qualified wages in the third year of employ- 15 ment. 16 (c) For the purposes of this subdivision, "qualifying individual" 17 shall mean an individual hired by a taxpayer on or after January first, 18 two thousand twenty who: 19 (i) has been convicted of a felony in this state in the last five 20 years, has been released from a correctional facility as defined in 21 subdivision four of section two of the correction law in the last five EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04514-02-0A. 1556--A 2 1 years or is serving a period of post-release supervision, parole or 2 probation for the conviction of a felony, provided that an individual 3 shall be considered a qualified individual for each of the first four 4 years of employment if hired by the taxpayer within the time period 5 specified in this subparagraph; 6 (ii) resides in this state; and 7 (iii) receives qualified wages for at least three continuous months 8 from the taxpayer during the taxable year. 9 (d) For the purposes of this subdivision, "qualified wages" shall mean 10 wages paid or incurred by the taxpayer during the taxable year to the 11 qualified individual, provided that the amount of qualified wages which 12 may be taken into account when calculating the credit pursuant to this 13 subdivision shall not exceed fifteen thousand dollars per year. 14 (e) Notwithstanding any provision of law to the contrary, the credit 15 and carryover of such credit allowed under this subdivision for any 16 taxable years shall not, in the aggregate, reduce the tax due for such 17 year to less than the higher of the amounts prescribed in paragraphs (c) 18 and (d) of subdivision one of this section, any amount of credit or 19 carryover of such credit thus not deductible in such taxable year may be 20 carried over to the following year or years and may be deducted from the 21 tax for such year or years. In addition, the amount of such credit, and 22 carryovers of such credit to the taxable year, deducted from the tax 23 otherwise due may not, in the aggregate, exceed fifty percent of the tax 24 imposed under section two hundred nine of this article computed without 25 regard to any credit provided by this section. 26 § 2. Section 606 of the tax law is amended by adding a new subsection 27 (k-1) to read as follows: 28 (k-1) Re-entry employment incentive tax credit. (1) A taxpayer shall 29 be allowed a credit, to be computed as hereinafter provided, against the 30 tax imposed by this article in the amount prescribed by this subsection 31 where such taxpayer employs one or more qualifying individuals desig- 32 nated pursuant to paragraph three of this subsection. 33 (2) The amount of the credit shall be as follows for each qualifying 34 individual employed by the taxpayer: 35 (i) Fifty percent of the qualified wages in the first year of employ- 36 ment; 37 (ii) Forty percent of qualified wages in the second year of employ- 38 ment; and 39 (iii) Thirty percent of qualified wages in the third year of employ- 40 ment. 41 (3) For the purposes of this subsection, "qualifying individual" shall 42 mean an individual hired by a taxpayer on or after January first, two 43 thousand twenty who: 44 (i) has been convicted of a felony in this state in the last five 45 years, has been released from a correctional facility as defined in 46 subdivision four of section two of the correction law in the last five 47 years or is serving a period of post-release supervision, parole or 48 probation for the conviction of a felony, provided that an individual 49 shall be considered a qualified individual for each of the first four 50 years of employment if hired by the taxpayer within the time period 51 specified in this subparagraph; 52 (ii) resides in this state; and 53 (iii) receives qualified wages for at least three continuous months 54 from the taxpayer during the taxable year. 55 (4) For the purposes of this subsection, "qualified wages" shall mean 56 wages paid or incurred by the taxpayer during the taxable year to theA. 1556--A 3 1 qualified individual, provided that the amount of qualified wages which 2 may be taken into account when calculating the credit pursuant to this 3 subsection shall not exceed fifteen thousand dollars per year. 4 (5) Notwithstanding any provision of law to the contrary, if the 5 amount of the credit and carryovers of such credit allowed under this 6 subsection for any taxable year shall exceed the taxpayer's tax for such 7 year, any amount of credit or carryovers of such credit thus not deduct- 8 ible in such taxable year may be carried over to the following year or 9 years and may be deducted from the tax for such year or years. In addi- 10 tion, the amount of such credit, and carryovers of such credit to the 11 taxable year, deducted from the tax otherwise due may not, in the aggre- 12 gate, exceed fifty percent of the tax imposed under section six hundred 13 one of this part computed without regard to any credit provided for by 14 this section. 15 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 16 of the tax law is amended by adding a new clause (xlvi) to read as 17 follows: 18 (xlvi) Re-entry employment Amount of credit 19 incentive tax credit under under subdivision 20 subsection (k-1) fifty-five of section 21 two hundred ten-B 22 § 4. This act shall take effect on the sixtieth day after it shall 23 have become a law.