STATE OF NEW YORK ________________________________________________________________________ 1604 2019-2020 Regular Sessions IN ASSEMBLY January 15, 2019 ___________ Introduced by M. of A. JONES, D'URSO, BLAKE, DAVILA, CRESPO, CROUCH, WALSH, TAYLOR, WOERNER, RIVERA, DICKENS, BYRNE, WILLIAMS, NORRIS, ARROYO, COOK, BARRON, AUBRY -- Multi-Sponsored by -- M. of A. BARCLAY, BLANKENBUSH, GIGLIO, HYNDMAN, SIMON -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to a credit for employment of persons who are in recovery with an office of alcoholism and substance abuse services approved rehabilitation center The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The tax law is amended by adding a new section 187-t to 2 read as follows: 3 § 187-t. Credit for employment of persons who are in recovery with an 4 office of alcoholism and substance abuse services approved rehabili- 5 tation center. 1. Allowance of credit. A taxpayer shall be allowed a 6 credit, to be computed as hereinafter provided, against the taxes 7 imposed by this article, other than the taxes imposed by sections one 8 hundred eighty-six-a and one hundred eighty-six-e of this article, for 9 employing within the state a qualified employee. Provided, however, the 10 amount of credit allowed by this section against the tax imposed by 11 section one hundred eighty-four of this article shall be the excess of 12 the credit computed under this section over the amount of credit allowed 13 by this section against the tax imposed by section one hundred eighty- 14 three of this article. 15 2. Qualified employee. A qualified employee is an individual who: 16 (a) is in recovery with an office of alcoholism and substance abuse 17 services approved rehabilitation center; and 18 (b) has worked on a full-time basis for the employer who is claiming 19 the credit for at least one hundred eighty days or four hundred hours. 20 3. Amount of credit. Except as provided in subdivision four of this 21 section, the amount of credit under this section shall be thirty-five EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD02902-01-9A. 1604 2 1 percent of the first six thousand dollars in qualified first-year wages 2 earned by each qualified employee. "Qualified first-year wages" means 3 wages paid or incurred by the taxpayer during the taxable year to quali- 4 fied employees which are attributable, with respect to any such employ- 5 ee, to services rendered during the one-year period beginning with the 6 day the employee begins work for the taxpayer. 7 4. Credit where federal work opportunity tax credit applies. With 8 respect to any qualified employee whose qualified first-year wages under 9 subdivision three of this section also constitute qualified first-year 10 wages for purposes of the work opportunity tax credit for vocational 11 rehabilitation referrals under section fifty-one of the internal revenue 12 code, the amount of credit under this section shall be thirty-five 13 percent of the first six thousand dollars in qualified second-year wages 14 earned by each such employee. "Qualified second-year wages" means wages 15 paid or incurred by the taxpayer during the taxable year to qualified 16 employees which are attributable, with respect to any such employee, to 17 services rendered during the one-year period beginning one year after 18 the employee begins work for the taxpayer. 19 5. Carryover. In no event shall the credit under this section be 20 allowed in an amount which will reduce the tax payable to less than the 21 applicable minimum tax fixed by section one hundred eighty-three of this 22 article. If, however, the amount of credit allowable under this section 23 for any taxable year reduces the tax to such amount, any amount of cred- 24 it not deductible in such taxable year may be carried over to the 25 following year or years and may be deducted from the taxpayer's tax for 26 such year or years. 27 6. Coordination with federal work opportunity tax credit. The 28 provisions of sections fifty-one and fifty-two of the internal revenue 29 code, as such sections applied on October first, nineteen hundred nine- 30 ty-six, that apply to the work opportunity tax credit for vocational 31 rehabilitation referrals shall apply to the credit under this section to 32 the extent that such sections are consistent with the specific 33 provisions of this section, provided that in the event of a conflict the 34 provisions of this section shall control. 35 § 2. This act shall take effect immediately, and shall apply to taxa- 36 ble years beginning on and after January 1, 2020.