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
________________________________________________________________________
5506--A
2021-2022 Regular Sessions
IN ASSEMBLY
February 19, 2021
___________
Introduced by M. of A. RICHARDSON, JACKSON, SEPTIMO -- 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 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-
21 sion for any taxable year reduces the tax to such amount, any amount of
22 credit thus not deductible in such taxable year shall be treated as an
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05023-03-1
A. 5506--A 2
1 overpayment of tax to be credited or refunded in accordance with the
2 provisions of section one thousand eighty-six of this chapter. Provided,
3 however, the provisions of subsection (c) of section one thousand eight-
4 y-eight of this chapter notwithstanding, no interest shall be paid ther-
5 eon.
6 (d) Credit recapture. For provisions requiring recapture of credit,
7 see section forty-four of this chapter.
8 (e) Reporting requirement. The department shall issue an annual report
9 on the utilization of this credit and similar credits for hiring indi-
10 viduals who have graduated from drug court or have successfully
11 completed a judicial diversion program pursuant to other articles of
12 this chapter. Such report shall include the number of taxpayers that
13 claimed these credits, the number of individuals who have graduated
14 from drug court or have successfully completed a judicial diversion
15 program for whom a credit was claimed, and information on the average
16 number of hours they were employed. The report shall also include infor-
17 mation on steps taken by the department to inform employers of the
18 existence of this credit and of any other actions taken to increase
19 awareness of the availability of this credit. The department shall issue
20 the first report on October first, two thousand twenty-two using the
21 most recent applicable tax data. The department shall issue reports for
22 subsequent tax years annually on October first. The report shall be
23 posted publicly on the department's website and copies shall be deliv-
24 ered to the governor, the speaker of the assembly, and the temporary
25 president of the senate.
26 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
27 of the tax law is amended by adding a new clause (xlvi) to read as
28 follows:
29 (xlvi) Employment of individuals Amount of credit
30 who have graduated from under subdivision
31 drug court or have fifty-five of section
32 successfully completed two hundred ten-B
33 a judicial diversion program
34 tax credit under
35 subsection (nnn)
36 § 3. Section 606 of the tax law is amended by adding a new subsection
37 (nnn) to read as follows:
38 (nnn) Tax credit for employment of individuals who have graduated from
39 drug court or have successfully completed a judicial diversion program.
40 (1) Allowance of credit. A taxpayer shall be allowed a credit, to be
41 computed as provided in this subsection, against the tax imposed by this
42 article, if it employs an individual who has graduated from drug court
43 or who has successfully completed a judicial diversion program pursuant
44 to article two hundred sixteen of the criminal procedure law, provided
45 that such individual is employed for thirty-five hours or more per week
46 and remains in the employ of such taxpayer for twelve months.
47 (2) Amount of credit. A credit authorized by this section shall equal
48 three thousand dollars per hired individual for the first year of
49 employment and an additional one thousand dollars if the individual
50 remains in employ for an additional twelve months.
51 (3) Application of credit. The credit allowed under this subsection
52 for any taxable year shall not reduce the tax due for such year to less
53 than the higher of the amount prescribed in paragraphs (c) and (d) of
54 subdivision one of section two hundred ten-B of this chapter. If,
55 however, the amount of credits allowed under this subsection for any
56 taxable year reduces the tax to such amount, any amount of credit thus
A. 5506--A 3
1 not deductible in such taxable year shall be treated as an overpayment
2 of tax to be credited or refunded in accordance with the provisions of
3 section one thousand eighty-six of this chapter. Provided, however, the
4 provisions of subsection (c) of section one thousand eighty-eight of
5 this chapter notwithstanding, no interest shall be paid thereon.
6 (4) Credit recapture. For provisions requiring recapture of credit,
7 see section forty-four of this chapter.
8 (5) Reporting requirement. The department shall issue an annual report
9 on the utilization of this credit and similar credits for hiring indi-
10 viduals who have graduated from drug court or have successfully
11 completed a judicial diversion program pursuant to other articles of
12 this chapter. Such report shall include the number of taxpayers that
13 claimed these credits, the number of individuals who have graduated from
14 drug court or have successfully completed a judicial diversion program
15 for whom a credit was claimed, and information on the average number of
16 hours they were employed. The report shall also include information on
17 steps taken by the department to inform employers of the existence of
18 this credit and of any other actions taken to increase awareness of
19 the availability of this credit. The department shall issue the first
20 report on October first, two thousand twenty-two using the most recent
21 applicable tax data. The department shall issue reports for subsequent
22 tax years annually on October first. The report shall be posted public-
23 ly on the department's website and copies shall be delivered to the
24 governor, the speaker of the assembly, and the temporary president of
25 the senate.
26 § 4. Section 1511 of the tax law is amended by adding a new subsection
27 (ee) to read as follows:
28 (ee) Credit for employment of individuals who have graduated from drug
29 court or have successfully completed a judicial diversion program. (1)
30 Allowance of credit. A taxpayer shall be allowed a credit, to be
31 computed as provided in this subsection, against the tax imposed by this
32 article, if it employs an individual who has graduated from drug court
33 or has successfully completed a judicial diversion program pursuant to
34 article two hundred sixteen of the criminal procedure law, provided that
35 such individual is employed for thirty-five hours or more per week and
36 remains in the employ of such taxpayer for a minimum of twelve months.
37 (2) Amount of credit. A credit authorized by this section shall equal
38 three thousand dollars per hired individual for the first year of
39 employment and an additional one thousand dollars if the individual
40 remains in employ for an additional twelve months.
41 (3) Application of credit. The credit allowed under this subsection
42 shall not reduce the tax due for such year to be less than the minimum
43 fixed by paragraph four of subdivision (a) of section fifteen hundred
44 two or section fifteen hundred two-a of this article, whichever is
45 applicable. However, if the amount of the credit allowed under this
46 subsection for any taxable year reduces the taxpayer's tax of such
47 amount, any amount of credit thus not deductible will be treated as an
48 overpayment of tax to be credited or refunded in accordance with the
49 provisions of section one thousand eighty-six of this chapter. Provided,
50 however, the provisions of subsection (c) of one thousand eighty-eight
51 of this chapter notwithstanding, no interest shall be paid thereon.
52 (4) Credit recapture. For provisions requiring recapture of credit,
53 see section forty-four of this chapter.
54 (5) Reporting requirement. The department shall issue an annual report
55 on the utilization of this credit and similar credits for hiring indi-
56 viduals who have graduated from drug court or have successfully
A. 5506--A 4
1 completed a judicial diversion program pursuant to other articles of
2 this chapter. Such report shall include the number of taxpayers that
3 claimed these credits, the number of individuals who have graduated
4 from drug court or have successfully completed a judicial diversion
5 program for whom a credit was claimed, and information on the average
6 number of hours they were employed. The report shall also include infor-
7 mation on steps taken by the department to inform employers of the
8 existence of this credit and of any other actions taken to increase
9 awareness of the availability of this credit. The department shall issue
10 the first report on October first, two thousand twenty-two using the
11 most recent applicable tax data. The department shall issue reports for
12 subsequent tax years annually on October first. The report shall be
13 posted publicly on the department's website and copies shall be deliv-
14 ered to the governor, the speaker of the assembly, and the temporary
15 president of the senate.
16 § 5. This act shall take effect on the first of January next succeed-
17 ing the date on which it shall have become a law, and shall apply to
18 taxable years beginning on or after such date and to employees hired on
19 or after such date.
