Bill Text: NY A01556 | 2019-2020 | General Assembly | Introduced


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) 2019-01-15 - referred to ways and means [A01556 Detail]

Download: New_York-2019-A01556-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          1556
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 15, 2019
                                       ___________
        Introduced  by  M.  of  A.  RICHARDSON  -- read once and referred to the
          Committee on Ways and Means
        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 53 to read as follows:
     3    53. 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 nineteen 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
    22  years or is serving a period  of  post-release  supervision,  parole  or
    23  probation  for  the  conviction of a felony, provided that an individual
    24  shall be considered a qualified individual for each of  the  first  four
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04514-01-9

        A. 1556                             2
     1  years  of  employment  if  hired  by the taxpayer within the time period
     2  specified in this subparagraph;
     3    (ii) resides in this state; and
     4    (iii)  receives  qualified  wages for at least three continuous months
     5  from the taxpayer during the taxable year.
     6    (d) For the purposes of this subdivision, "qualified wages" shall mean
     7  wages paid or incurred by the taxpayer during the taxable  year  to  the
     8  qualified  individual, provided that the amount of qualified wages which
     9  may be taken into account when calculating the credit pursuant  to  this
    10  subdivision shall not exceed fifteen thousand dollars per year.
    11    (e)  Notwithstanding  any provision of law to the contrary, the credit
    12  and carryover of such credit allowed  under  this  subdivision  for  any
    13  taxable  years  shall not, in the aggregate, reduce the tax due for such
    14  year to less than the higher of the amounts prescribed in paragraphs (c)
    15  and (d) of subdivision one of this section,  any  amount  of  credit  or
    16  carryover of such credit thus not deductible in such taxable year may be
    17  carried over to the following year or years and may be deducted from the
    18  tax  for such year or years. In addition, the amount of such credit, and
    19  carryovers of such credit to the taxable year,  deducted  from  the  tax
    20  otherwise due may not, in the aggregate, exceed fifty percent of the tax
    21  imposed  under section two hundred nine of this article computed without
    22  regard to any credit provided by this section.
    23    § 2. Section 606 of the tax law is amended by adding a new  subsection
    24  (k-1) to read as follows:
    25    (k-1)  Re-entry  employment incentive tax credit. (1) A taxpayer shall
    26  be allowed a credit, to be computed as hereinafter provided, against the
    27  tax imposed by this article in the amount prescribed by this  subsection
    28  where  such  taxpayer  employs one or more qualifying individuals desig-
    29  nated pursuant to paragraph three of this subsection.
    30    (2) The amount of the credit shall be as follows for  each  qualifying
    31  individual employed by the taxpayer:
    32    (i)  Fifty percent of the qualified wages in the first year of employ-
    33  ment;
    34    (ii) Forty percent of qualified wages in the second  year  of  employ-
    35  ment; and
    36    (iii)  Thirty  percent of qualified wages in the third year of employ-
    37  ment.
    38    (3) For the purposes of this subsection, "qualifying individual" shall
    39  mean an individual hired by a taxpayer on or after  January  first,  two
    40  thousand nineteen who:
    41    (i)  has  been  convicted  of  a felony in this state in the last five
    42  years, has been released from a  correctional  facility  as  defined  in
    43  subdivision  four  of section two of the correction law in the last five
    44  years or is serving a period  of  post-release  supervision,  parole  or
    45  probation  for  the  conviction of a felony, provided that an individual
    46  shall be considered a qualified individual for each of  the  first  four
    47  years  of  employment  if  hired  by the taxpayer within the time period
    48  specified in this subparagraph;
    49    (ii) resides in this state; and
    50    (iii) receives qualified wages for at least  three  continuous  months
    51  from the taxpayer during the taxable year.
    52    (4)  For the purposes of this subsection, "qualified wages" shall mean
    53  wages paid or incurred by the taxpayer during the taxable  year  to  the
    54  qualified  individual, provided that the amount of qualified wages which
    55  may be taken into account when calculating the credit pursuant  to  this
    56  subsection shall not exceed fifteen thousand dollars per year.

        A. 1556                             3
     1    (5)  Notwithstanding  any  provision  of  law  to the contrary, if the
     2  amount of the credit and carryovers of such credit  allowed  under  this
     3  subsection for any taxable year shall exceed the taxpayer's tax for such
     4  year, any amount of credit or carryovers of such credit thus not deduct-
     5  ible  in  such taxable year may be carried over to the following year or
     6  years and may be deducted from the tax for such year or years. In  addi-
     7  tion,  the  amount  of such credit, and carryovers of such credit to the
     8  taxable year, deducted from the tax otherwise due may not, in the aggre-
     9  gate, exceed fifty percent of the tax imposed under section six  hundred
    10  one  of  this part computed without regard to any credit provided for by
    11  this section.
    12    § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    13  of  the  tax  law  is  amended  by adding a new clause (xliv) to read as
    14  follows:
    15  (xliv) Re-entry employment           Amount of credit
    16  incentive tax credit under           under subdivision
    17  subsection (k-1)                     fifty-three of section
    18                                       two hundred ten-B
    19    § 4. This act shall take effect on the sixtieth  day  after  it  shall
    20  have become a law.
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