Bill Text: NY S06121 | 2019-2020 | General Assembly | Introduced


Bill Title: Provides a re-employment tax credit.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-05-16 - REFERRED TO BUDGET AND REVENUE [S06121 Detail]

Download: New_York-2019-S06121-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          6121

                               2019-2020 Regular Sessions

                    IN SENATE

                                      May 16, 2019
                                       ___________

        Introduced  by  Sen.  MONTGOMERY  -- read twice and ordered printed, and
          when printed to be committed to the Committee on Budget and Revenue

        AN ACT to amend the tax law, in relation to providing a re-entry employ-
          ment incentive tax credit;  and  providing  for  the  repeal  of  such
          provisions upon expiration thereof

          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 54 to read as follows:
     3    54.  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 subdivision (a) of section four of the chapter of  the
     8  laws of two thousand nineteen that added this subdivision.
     9    (b)  The  amount of the credit shall be as follows for each qualifying
    10  individual employed by the taxpayer:
    11    (i) fifty percent of the qualified wages in the first year of  employ-
    12  ment;
    13    (ii)  forty  percent  of qualified wages in the second year of employ-
    14  ment; and
    15    (iii) thirty percent of qualified wages in the third year  of  employ-
    16  ment.
    17    (c)  For  the  purposes  of  this subdivision, "qualifying individual"
    18  shall mean an individual hired by a taxpayer on or after January  first,
    19  two thousand twenty who:
    20    (i)  has  been  convicted  of  a felony in this state in the last five
    21  years, has been released from a  correctional  facility  as  defined  in
    22  subdivision  four  of section two of the correction law in the last five
    23  years or is serving a period  of  post-release  supervision,  parole  or
    24  probation  for  the  conviction of a felony, provided that an individual

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11900-01-9

        S. 6121                             2

     1  shall be considered a qualified individual for each of  the  first  four
     2  years  of  employment  if  hired  by the taxpayer within the time period
     3  specified in this subparagraph;
     4    (ii) resides in this state;
     5    (iii)  receives  wages which are at least one hundred forty percent of
     6  the state minimum wage; and
     7    (iv) 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 ten 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 amount prescribed in paragraph (d) of subdivision
    18  one of section two hundred ten of this article, 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. (a) 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 subdivision (a) of section four of the chapter of  the
    33  laws of two thousand nineteen that added this subsection.
    34    (b)  The  amount of the credit shall be as follows for each qualifying
    35  individual employed by the taxpayer:
    36    (i) Fifty percent of the qualified wages in the first year of  employ-
    37  ment;
    38    (ii)  Forty  percent  of qualified wages in the second year of employ-
    39  ment; and
    40    (iii) Thirty percent of qualified wages in the third year  of  employ-
    41  ment.
    42    (c) For the purposes of this subsection, "qualifying individual" shall
    43  mean  an  individual  hired by a taxpayer on or after January first, two
    44  thousand twenty who:
    45    (i) has been convicted of a felony in this  state  in  the  last  five
    46  years,  has  been  released  from  a correctional facility as defined in
    47  subdivision four of section two of the correction law in the  last  five
    48  years  or  is  serving  a  period of post-release supervision, parole or
    49  probation for the conviction of a felony, provided  that  an  individual
    50  shall  be  considered  a qualified individual for each of the first four
    51  years of employment if hired by the  taxpayer  within  the  time  period
    52  specified in this subparagraph;
    53    (ii) resides in this state;
    54    (iii)  receives  wages which are at least one hundred forty percent of
    55  the state minimum wage; and

        S. 6121                             3

     1    (iv) receives qualified wages for at  least  three  continuous  months
     2  from the taxpayer during the taxable year.
     3    (d)  For the purposes of this subsection, "qualified wages" shall mean
     4  wages paid or incurred by the taxpayer during the taxable  year  to  the
     5  qualified  individual, provided that the amount of qualified wages which
     6  may be taken into account when calculating the credit pursuant  to  this
     7  subsection shall not exceed ten thousand dollars per year.
     8    (e)  Notwithstanding  any  provision  of  law  to the contrary, if the
     9  amount of the credit and carryovers of such credit  allowed  under  this
    10  subsection for any taxable year shall exceed the taxpayer's tax for such
    11  year, any amount of credit or carryovers of such credit thus not deduct-
    12  ible  in  such taxable year may be carried over to the following year or
    13  years and may be deducted from the tax for such year or years. In  addi-
    14  tion,  the  amount  of such credit, and carryovers of such credit to the
    15  taxable year, deducted from the tax otherwise due may not, in the aggre-
    16  gate, exceed fifty percent of the tax imposed under section six  hundred
    17  one  of  this part computed without regard to any credit provided for by
    18  this section.
    19    § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
    20  of  the  tax  law  is  amended  by  adding a new clause (xlv) to read as
    21  follows:

    22  (xlv) Re-entry employment            Amount of credit
    23  incentive tax credit under           under subdivision
    24  subsection (k-1)                     fifty-four of section
    25                                       two hundred ten-b

    26    § 4. Re-entry employment  incentive  tax  credit  pilot  project.  (a)
    27  Notwithstanding  any  inconsistent provision of law, the commissioner of
    28  labor, or his or her designee, shall, before January  1,  2020,  consult
    29  with  The  Fortune Society to identify and designate 100 formerly incar-
    30  cerated qualified individuals, as such term is defined in paragraph  (c)
    31  of subdivision 54 of section 210-b of the tax law, to participate in the
    32  pilot  project  established  by this section for a period of three years
    33  beginning on January 1, 2020. A taxpayer that employs one or  more  such
    34  designated  qualified  individuals  on or after January 1, 2020 shall be
    35  allowed a credit, against the tax imposed by article 9-A or  article  22
    36  of  the  tax  law  in the amount prescribed by subdivision 54 of section
    37  210-b of the tax law or subsection (k-1) of section 606 of the  tax  law
    38  as  applicable.  The commissioner of labor and the commissioner of taxa-
    39  tion and finance shall promulgate all necessary rules and regulations to
    40  implement the re-entry employment incentive  tax  credit  pilot  project
    41  established by this section.
    42    (b)  Further,  the  commissioner  of  labor,  in consultation with the
    43  Center for NuLeadership on Urban Solutions at Medgar  Evers  College  at
    44  the  City  University  of New York, shall produce a report on the effec-
    45  tiveness of the pilot project established by this  section  in  creating
    46  employment  opportunities  for  persons  with criminal convictions. Such
    47  report shall be submitted to the governor, temporary  president  of  the
    48  senate, speaker of the assembly and the chairpersons of the senate crime
    49  victims,  crime and correction committee, assembly correction committee,
    50  senate codes committee, assembly codes committee, senate finance commit-
    51  tee and assembly ways and means committee on or before March 31, 2023.
    52    § 5.  This act shall take effect immediately; provided, however,  that
    53  the credits established by sections one, two and three of this act shall
    54  apply  to taxable years beginning on or after January 1, 2020 and ending

        S. 6121                             4

     1  not later than December 31, 2022; provided further  that  sections  one,
     2  two  and  three  of  this  act  shall expire and be deemed repealed, and
     3  subdivision (a) of section four of this act shall expire and  be  deemed
     4  repealed  December 31, 2022, provided, further, that the section heading
     5  and subdivision (b) of section four of this  act  shall  expire  and  be
     6  deemed repealed March 31, 2023.
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