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
________________________________________________________________________
310
2011-2012 Regular Sessions
IN SENATE(Prefiled)
January 5, 2011
___________
Introduced by Sen. MONTGOMERY -- read twice and ordered printed, and
when printed to be committed to the Committee on Investigations and
Government Operations
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 43 to read as follows:
3 43. 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 eleven 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 twelve 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01511-01-1
S. 310 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;
7 (iii) receives wages which are at least one hundred forty percent of
8 the New York state minimum wage; and
9 (iv) receives qualified wages for at least three continuous months
10 from the taxpayer during the taxable year.
11 (d) For the purposes of this subdivision, "qualified wages" shall mean
12 wages paid or incurred by the taxpayer during the taxable year to the
13 qualified individual, provided that the amount of qualified wages which
14 may be taken into account when calculating the credit pursuant to this
15 subdivision shall not exceed ten thousand dollars per year.
16 (e) Notwithstanding any provisions to the contrary, the credit and
17 carryover of such credit allowed under this subdivision for any taxable
18 years shall not, in the aggregate, reduce the tax due for such year to
19 less than the higher of the amounts prescribed in paragraphs (c) and (d)
20 of subdivision one of this section, any amount of credit or carryover of
21 such credit thus not deductible in such taxable year may be carried over
22 to the following year or years and may be deducted from the tax for such
23 year or years. In addition, the amount of such credit, and carryovers of
24 such credit to the taxable year, deducted from the tax otherwise due may
25 not, in the aggregate, exceed fifty percent of the tax imposed under
26 section two hundred nine of this article computed without regard to any
27 credit provided by this section.
28 § 2. Section 606 of the tax law is amended by adding a new subsection
29 (k-1) to read as follows:
30 (k-1) Re-entry employment incentive tax credit. (a) A taxpayer shall
31 be allowed a credit, to be computed as hereinafter provided, against the
32 tax imposed by this article in the amount prescribed by this subsection
33 where such taxpayer employs one or more qualifying individuals desig-
34 nated pursuant to subdivision (a) of section four of the chapter of the
35 laws of two thousand eleven that added this subsection.
36 (b) The amount of the credit shall be as follows for each qualifying
37 individual employed by the taxpayer:
38 (i) Fifty percent of the qualified wages in the first year of employ-
39 ment;
40 (ii) Forty percent of qualified wages in the second year of employ-
41 ment; and
42 (iii) Thirty percent of qualified wages in the third year of employ-
43 ment.
44 (c) For the purposes of this subsection, "qualifying individual" shall
45 mean an individual hired by a taxpayer on or after January first, two
46 thousand twelve who:
47 (i) has been convicted of a felony in this state in the last five
48 years, has been released from a correctional facility as defined in
49 subdivision four of section two of the correction law in the last five
50 years or is serving a period of post-release supervision, parole or
51 probation for the conviction of a felony, provided that an individual
52 shall be considered a qualified individual for each of the first four
53 years of employment if hired by the taxpayer within the time period
54 specified in this subparagraph;
55 (ii) resides in this state;
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1 (iii) receives wages which are at least one hundred forty percent of
2 the New York state minimum wage; and
3 (iv) receives qualified wages for at least three continuous months
4 from the taxpayer during the taxable year.
5 (d) For the purposes of this subsection, "qualified wages" shall mean
6 wages paid or incurred by the taxpayer during the taxable year to the
7 qualified individual, provided that the amount of qualified wages which
8 may be taken into account when calculating the credit pursuant to this
9 subsection shall not exceed ten thousand dollars per year.
10 (e) Notwithstanding any provisions to the contrary, if the amount of
11 the credit and carryovers of such credit allowed under this subsection
12 for any taxable year shall exceed the taxpayer's tax for such year, any
13 amount of credit or carryovers of such credit thus not deductible in
14 such taxable year may be carried over to the following year or years and
15 may be deducted from the tax for such year or years. In addition, the
16 amount of such credit, and carryovers of such credit to the taxable
17 year, deducted from the tax otherwise due may not, in the aggregate,
18 exceed fifty percent of the tax imposed under section six hundred one of
19 this part computed without regard to any credit provided for by this
20 section.
21 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
22 of the tax law is amended by adding a new clause (xxxii) to read as
23 follows:
24 (xxxii) Re-entry employmentAmount of credit
25 incentive tax credit under under subdivision
26 subsection (k-1)forty-three of section
27 two hundred ten
28 § 4. Re-entry employment incentive tax credit pilot project. (a)
29 Notwithstanding any inconsistent provision of law, the commissioner of
30 labor, or his or her designee, shall, before January 1, 2012, consult
31 with The Fortune Society to identify and designate 100 formerly incar-
32 cerated qualified individuals, as such term is defined in paragraph (c)
33 of subdivision 43 of section 210 of the tax law, to participate in the
34 pilot project established by this section for a period of three years
35 beginning on January 1, 2012. A taxpayer that employs one or more such
36 designated qualified individuals on or after January 1, 2012 shall be
37 allowed a credit, against the tax imposed by article 9-A or article 22
38 of the tax law in the amount prescribed by subdivision 43 of section 210
39 of the tax law or subsection (k-1) of section 606 of the tax law as
40 applicable. The commissioner of labor and the commissioner of taxation
41 and finance shall promulgate all necessary rules and regulations to
42 implement the re-entry employment incentive tax credit pilot project
43 established by this section.
44 (b) Further, the commissioner of labor, in consultation with the
45 Center for NuLeadership on Urban Solutions at Medgar Evers College at
46 the City University of New York, shall produce a report on the effec-
47 tiveness of the pilot project established by this section in creating
48 employment opportunities for persons with criminal convictions. Such
49 report shall be submitted to the governor, temporary president of the
50 senate, speaker of the assembly and the chairpersons of the senate crime
51 victims, crime and correction committee, assembly correction committee,
52 senate codes committee, assembly codes committee, senate finance commit-
53 tee and assembly ways and means committee on or before March 31, 2015.
S. 310 4
1 § 5. This act shall take effect immediately; provided, however, that
2 the credits established by sections one, two and three of this act shall
3 apply to taxable years beginning on or after January 1, 2012 and ending
4 not later than December 31, 2014; provided further that sections one,
5 two and three of this act shall expire and be deemed repealed, and
6 subdivision (a) of section four of this act shall expire and be deemed
7 repealed December 31, 2014, provided, further, that the opening para-
8 graph and subdivision (b) of section four of this act shall expire and
9 be deemed repealed March 31, 2015.
