Establishes a tax credit for employment of an individual who has successfully completed a judicial diversion substance abuse treatment program or graduated from drug court.
STATE OF NEW YORK
________________________________________________________________________
5180--A
Cal. No. 1198
2021-2022 Regular Sessions
IN SENATE
February 26, 2021
___________
Introduced by Sen. BENJAMIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue --
reported favorably from said committee and committed to the Committee
on Finance -- reported favorably from said committee, ordered to first
and second report, ordered to a third reading, amended and ordered
reprinted, retaining its place in the order of third reading
AN ACT to amend the tax law, in relation to a tax credit for employment
of an individual who has successfully completed a judicial diversion
program or graduated from a drug court
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 55 to read as follows:
3 55. Credit for employment of individuals who have graduated from drug
4 court or have successfully completed a judicial diversion program. (a)
5 Allowance of credit. A taxpayer shall be allowed a credit, to be
6 computed as provided in this subdivision, against the tax imposed by
7 this article, if it employs an individual who has graduated from drug
8 court or has successfully completed a judicial diversion program pursu-
9 ant to article two hundred sixteen of the criminal procedure law,
10 provided that such individual is employed for thirty-five hours or more
11 per week and remains in the employ of such taxpayer for a minimum of
12 twelve months.
13 (b) Amount of credit. A credit authorized by this section shall equal
14 three thousand dollars per hired individual for the first year of
15 employment and an additional one thousand dollars if the individual
16 remains in employ for an additional twelve months.
17 (c) Application of credit. The credit allowed under this subdivision
18 for any taxable year shall not reduce the tax due for such year to less
19 than the amount prescribed in paragraph (d) of subdivision one of this
20 section. If, however, the amount of credits allowed under this subdivi-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05023-02-1
S. 5180--A 2
1 sion for any taxable year reduces the tax to such amount, any amount of
2 credit thus not deductible in such taxable year shall be treated as an
3 overpayment of tax to be credited or refunded in accordance with the
4 provisions of section one thousand eighty-six of this chapter. Provided,
5 however, the provisions of subsection (c) of section one thousand eight-
6 y-eight of this chapter notwithstanding, no interest shall be paid ther-
7 eon.
8 (d) Credit recapture. For provisions requiring recapture of credit,
9 see section forty-four of this chapter.
10 (e) Reporting requirement. The department shall issue an annual report
11 on the utilization of this credit and similar credits for hiring indi-
12 viduals who have graduated from drug court or have successfully
13 completed a judicial diversion program pursuant to other articles of
14 this chapter. Such report shall include the number of taxpayers that
15 claimed these credits, the number of individuals who have graduated
16 from drug court or have successfully completed a judicial diversion
17 program for whom a credit was claimed, and information on the average
18 number of hours they were employed. The report shall also include infor-
19 mation on steps taken by the department to inform employers of the
20 existence of this credit and of any other actions taken to increase
21 awareness of the availability of this credit. The department shall issue
22 the first report on October first, two thousand twenty-two using the
23 most recent applicable tax data. The department shall issue reports for
24 subsequent tax years annually on October first. The report shall be
25 posted publicly on the department's website and copies shall be deliv-
26 ered to the governor, the speaker of the assembly, and the temporary
27 president of the senate.
28 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
29 of the tax law is amended by adding a new clause (xlvi) to read as
30 follows:
31 (xlvi) Employment of individuals Amount of credit
32 who have graduated from under subdivision
33 drug court or have fifty-five of section
34 successfully completed two hundred ten-B
35 a judicial diversion program
36 tax credit under
37 subsection (nnn)
38 § 3. Section 606 of the tax law is amended by adding a new subsection
39 (nnn) to read as follows:
40 (nnn) Tax credit for employment of individuals who have graduated from
41 drug court or have successfully completed a judicial diversion program.
42 (1) Allowance of credit. A taxpayer shall be allowed a credit, to be
43 computed as provided in this subsection, against the tax imposed by this
44 article, if it employs an individual who has graduated from drug court
45 or who has successfully completed a judicial diversion program pursuant
46 to article two hundred sixteen of the criminal procedure law, provided
47 that such individual is employed for thirty-five hours or more per week
48 and remains in the employ of such taxpayer for twelve months.
49 (2) Amount of credit. A credit authorized by this section shall equal
50 three thousand dollars per hired individual for the first year of
51 employment and an additional one thousand dollars if the individual
52 remains in employ for an additional twelve months.
53 (3) Application of credit. The credit allowed under this subsection
54 for any taxable year shall not reduce the tax due for such year to less
55 than the higher of the amount prescribed in paragraphs (c) and (d) of
56 subdivision one of section two hundred ten-B of this chapter. If,
S. 5180--A 3
1 however, the amount of credits allowed under this subsection for any
2 taxable year reduces the tax to such amount, any amount of credit thus
3 not deductible in such taxable year shall be treated as an overpayment
4 of tax to be credited or refunded in accordance with the provisions of
5 section one thousand eighty-six of this chapter. Provided, however, the
6 provisions of subsection (c) of section one thousand eighty-eight of
7 this chapter notwithstanding, no interest shall be paid thereon.
8 (4) Credit recapture. For provisions requiring recapture of credit,
9 see section forty-four of this chapter.
10 (5) Reporting requirement. The department shall issue an annual report
11 on the utilization of this credit and similar credits for hiring indi-
12 viduals who have graduated from drug court or have successfully
13 completed a judicial diversion program pursuant to other articles of
14 this chapter. Such report shall include the number of taxpayers that
15 claimed these credits, the number of individuals who have graduated from
16 drug court or have successfully completed a judicial diversion program
17 for whom a credit was claimed, and information on the average number of
18 hours they were employed. The report shall also include information on
19 steps taken by the department to inform employers of the existence of
20 this credit and of any other actions taken to increase awareness of
21 the availability of this credit. The department shall issue the first
22 report on October first, two thousand twenty-two using the most recent
23 applicable tax data. The department shall issue reports for subsequent
24 tax years annually on October first. The report shall be posted public-
25 ly on the department's website and copies shall be delivered to the
26 governor, the speaker of the assembly, and the temporary president of
27 the senate.
28 § 4. Section 1511 of the tax law is amended by adding a new subsection
29 (ee) to read as follows:
30 (ee) Credit for employment of individuals who have graduated from drug
31 court or have successfully completed a judicial diversion program. (1)
32 Allowance of credit. A taxpayer shall be allowed a credit, to be
33 computed as provided in this subsection, against the tax imposed by this
34 article, if it employs an individual who has graduated from drug court
35 or has successfully completed a judicial diversion program pursuant to
36 article two hundred sixteen of the criminal procedure law, provided that
37 such individual is employed for thirty-five hours or more per week and
38 remains in the employ of such taxpayer for a minimum of twelve months.
39 (2) Amount of credit. A credit authorized by this section shall equal
40 three thousand dollars per hired individual for the first year of
41 employment and an additional one thousand dollars if the individual
42 remains in employ for an additional twelve months.
43 (3) Application of credit. The credit allowed under this subsection
44 shall not reduce the tax due for such year to be less than the minimum
45 fixed by paragraph four of subdivision (a) of section fifteen hundred
46 two or section fifteen hundred two-a of this article, whichever is
47 applicable. However, if the amount of the credit allowed under this
48 subsection for any taxable year reduces the taxpayer's tax of such
49 amount, any amount of credit thus not deductible will be treated as an
50 overpayment of tax to be credited or refunded in accordance with the
51 provisions of section one thousand eighty-six of this chapter. Provided,
52 however, the provisions of subsection (c) of one thousand eighty-eight
53 of this chapter notwithstanding, no interest shall be paid thereon.
54 (4) Credit recapture. For provisions requiring recapture of credit,
55 see section forty-four of this chapter.
S. 5180--A 4
1 (5) Reporting requirement. The department shall issue an annual report
2 on the utilization of this credit and similar credits for hiring indi-
3 viduals who have graduated from drug court or have successfully
4 completed a judicial diversion program pursuant to other articles of
5 this chapter. Such report shall include the number of taxpayers that
6 claimed these credits, the number of individuals who have graduated
7 from drug court or have successfully completed a judicial diversion
8 program for whom a credit was claimed, and information on the average
9 number of hours they were employed. The report shall also include infor-
10 mation on steps taken by the department to inform employers of the
11 existence of this credit and of any other actions taken to increase
12 awareness of the availability of this credit. The department shall issue
13 the first report on October first, two thousand twenty-two using the
14 most recent applicable tax data. The department shall issue reports for
15 subsequent tax years annually on October first. The report shall be
16 posted publicly on the department's website and copies shall be deliv-
17 ered to the governor, the speaker of the assembly, and the temporary
18 president of the senate.
19 § 5. This act shall take effect on the first of January next succeed-
20 ing the date on which it shall have become a law, and shall apply to
21 taxable years beginning on or after such date and to employees hired on
22 or after such date.
