Establishes a re-entry employment incentive tax credit for employers who hire individuals who have been released from correctional facilities in this state for full-time employment at a rate that is 140% of the state minimum wage.
STATE OF NEW YORK
________________________________________________________________________
S. 243--A A. 330--A
2009-2010 Regular Sessions
SENATE - ASSEMBLY(Prefiled)
January 7, 2009
___________
IN SENATE -- Introduced by Sen. MONTGOMERY -- read twice and ordered
printed, and when printed to be committed to the Committee on Investi-
gations and Government Operations -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
IN ASSEMBLY -- Introduced by M. of A. JEFFRIES, SCHROEDER, AUBRY,
BOYLAND, CAMARA, JAFFEE, PEOPLES, ORTIZ, ROBINSON, COOK, TITUS --
Multi-Sponsored by -- M. of A. GOTTFRIED, HOOPER, V. LOPEZ, NOLAN,
TOWNS -- read once and referred to the Committee on Ways and Means --
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; 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 of the tax law is amended by adding a new
2 subdivision 41 to read as follows:
3 41. 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 nine 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;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00071-03-9
S. 243--A 2 A. 330--A
1 (ii) forty percent of qualified wages in the second year of employ-
2 ment; and
3 (iii) thirty percent of qualified wages in the third year of employ-
4 ment.
5 (c) For the purposes of this subdivision, "qualifying individual"
6 shall mean an individual hired by a taxpayer on or after January first,
7 two thousand eleven who:
8 (i) has been convicted of a felony in this state in the last five
9 years, has been released from a correctional facility as defined in
10 subdivision four of section two of the correction law in the last five
11 years or is serving a period of post-release supervision, parole or
12 probation for the conviction of a felony, provided that an individual
13 shall be considered a qualified individual for each of the first four
14 years of employment if hired by the taxpayer within the time period
15 specified in this subparagraph;
16 (ii) resides in this state;
17 (iii) receives wages which are at least one hundred forty percent of
18 the New York state minimum wage; and
19 (iv) receives qualified wages for at least three continuous months
20 from the taxpayer during the taxable year.
21 (d) For the purposes of this subdivision, "qualified wages" shall mean
22 wages paid or incurred by the taxpayer during the taxable year to the
23 qualified individual, provided that the amount of qualified wages which
24 may be taken into account when calculating the credit pursuant to this
25 subdivision shall not exceed ten thousand dollars per year.
26 (e) Notwithstanding any provisions to the contrary, the credit and
27 carryover of such credit allowed under this subdivision for any taxable
28 years shall not, in the aggregate, reduce the tax due for such year to
29 less than the higher of the amounts prescribed in paragraphs (c) and (d)
30 of subdivision one of this section, any amount of credit or carryover of
31 such credit thus not deductible in such taxable year may be carried over
32 to the following year or years and may be deducted from the tax for such
33 year or years. In addition, the amount of such credit, and carryovers of
34 such credit to the taxable year, deducted from the tax otherwise due may
35 not, in the aggregate, exceed fifty percent of the tax imposed under
36 section two hundred nine of this article computed without regard to any
37 credit provided by this section.
38 § 2. Section 606 of the tax law is amended by adding a new subsection
39 (k-1) to read as follows:
40 (k-1) Re-entry employment incentive tax credit. (a) A taxpayer shall
41 be allowed a credit, to be computed as hereinafter provided, against the
42 tax imposed by this article in the amount prescribed by this subsection
43 where such taxpayer employs one or more qualifying individuals desig-
44 nated pursuant to subdivision (a) of section four of the chapter of the
45 laws of two thousand nine that added this subsection.
46 (b) The amount of the credit shall be as follows for each qualifying
47 individual employed by the taxpayer:
48 (i) Fifty percent of the qualified wages in the first year of employ-
49 ment;
50 (ii) Forty percent of qualified wages in the second year of employ-
51 ment; and
52 (iii) Thirty percent of qualified wages in the third year of employ-
53 ment.
54 (c) For the purposes of this subsection, "qualifying individual" shall
55 mean an individual hired by a taxpayer on or after January first, two
56 thousand eleven who:
S. 243--A 3 A. 330--A
1 (i) has been convicted of a felony in this state in the last five
2 years, has been released from a correctional facility as defined in
3 subdivision four of section two of the correction law in the last five
4 years or is serving a period of post-release supervision, parole or
5 probation for the conviction of a felony, provided that an individual
6 shall be considered a qualified individual for each of the first four
7 years of employment if hired by the taxpayer within the time period
8 specified in this subparagraph;
9 (ii) resides in this state;
10 (iii) receives wages which are at least one hundred forty percent of
11 the New York state minimum wage; and
12 (iv) receives qualified wages for at least three continuous months
13 from the taxpayer during the taxable year.
14 (d) For the purposes of this subsection, "qualified wages" shall mean
15 wages paid or incurred by the taxpayer during the taxable year to the
16 qualified individual, provided that the amount of qualified wages which
17 may be taken into account when calculating the credit pursuant to this
18 subsection shall not exceed ten thousand dollars per year.
19 (e) Notwithstanding any provisions to the contrary, if the amount of
20 the credit and carryovers of such credit allowed under this subsection
21 for any taxable year shall exceed the taxpayer's tax for such year, any
22 amount of credit or carryovers of such credit thus not deductible in
23 such taxable year may be carried over to the following year or years and
24 may be deducted from the tax for such year or years. In addition, the
25 amount of such credit, and carryovers of such credit to the taxable
26 year, deducted from the tax otherwise due may not, in the aggregate,
27 exceed fifty percent of the tax imposed under section six hundred one of
28 this part computed without regard to any credit provided for by this
29 section.
30 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
31 of the tax law is amended by adding a new clause (xxxi) to read as
32 follows:
33 (xxxi) Re-entry employmentAmount of credit
34 incentive tax credit under under subdivision
35 subsection (k-1)forty-one of section
36 two hundred ten
37 § 4. Re-entry employment incentive tax credit pilot project. (a)
38 Notwithstanding any inconsistent provision of law, the commissioner of
39 labor, or his or her designee, shall, before January 1, 2011, consult
40 with The Fortune Society to identify and designate 100 formerly incar-
41 cerated qualified individuals, as such term is defined in paragraph (c)
42 of subdivision 41 of section 210 of the tax law, to participate in the
43 pilot project established by this section for a period of three years
44 beginning on January 1, 2011. A taxpayer that employs one or more such
45 designated qualified individuals on or after January 1, 2011 shall be
46 allowed a credit, against the tax imposed by article 9-A or article 22
47 of the tax law in the amount prescribed by subdivision 41 of section 210
48 of the tax law or subsection (k-1) of section 606 of the tax law as
49 applicable. The commissioner of labor and the commissioner of taxation
50 and finance shall promulgate all necessary rules and regulations to
51 implement the re-entry employment incentive tax credit pilot project
52 established by this section.
53 (b) Further, the commissioner of labor, in consultation with the
54 Center for NuLeadership on Urban Solutions at Medgar Evers College at
S. 243--A 4 A. 330--A
1 the City University of New York, shall produce a report on the effec-
2 tiveness of the pilot project established by this section in creating
3 employment opportunities for persons with criminal convictions. Such
4 report shall be submitted to the governor, temporary president of the
5 senate, speaker of the assembly and the chairpersons of the senate crime
6 victims, crime and correction committee, assembly correction committee,
7 senate codes committee, assembly codes committee, senate finance commit-
8 tee and assembly ways and means committee on or before March 31, 2014.
9 § 5. This act shall take effect immediately; provided, however, that
10 the credits established by sections one, two and three of this act shall
11 apply to taxable years beginning on or after January 1, 2011 and ending
12 not later than December 31, 2013; provided further that sections one,
13 two and three of this act shall expire and be deemed repealed, and
14 subdivision (a) of section four of this act shall expire and be deemed
15 repealed December 31, 2013, provided, further, that the opening para-
16 graph and subdivision (b) of section four of this act shall expire and
17 be deemed repealed March 31, 2014.
