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
________________________________________________________________________
485
2025-2026 Regular Sessions
IN SENATE(Prefiled)
January 8, 2025
___________
Introduced by Sens. OBERACKER, ASHBY -- read twice and ordered printed,
and when printed to be committed to the Committee on Budget and Reven-
ue
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 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 61 to read as follows:
3 61. 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.
LBD01836-01-5
S. 485 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 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
7 of the tax law is amended by adding a new clause (lii) to read as
8 follows:
9 (lii) Employment of individuals Amount of credit
10 who have graduated from under subdivision
11 drug court or have sixty-one of section
12 successfully completed two hundred ten-B
13 a judicial diversion program
14 tax credit under
15 subsection (bbb)
16 § 3. Section 606 of the tax law is amended by adding a new subsection
17 (bbb) to read as follows:
18 (bbb) Tax credit for employment of individuals who have graduated from
19 drug court or have successfully completed a judicial diversion program.
20 (1) Allowance of credit. A taxpayer shall be allowed a credit, to be
21 computed as provided in this subsection, against the tax imposed by this
22 article, if it employs an individual who has graduated from drug court
23 or who has successfully completed a judicial diversion program pursuant
24 to article two hundred sixteen of the criminal procedure law, provided
25 that such individual is employed for thirty-five hours or more per week
26 and remains in the employ of such taxpayer for twelve months.
27 (2) Amount of credit. A credit authorized by this section shall equal
28 three thousand dollars per hired individual for the first year of
29 employment and an additional one thousand dollars if the individual
30 remains in employ for an additional twelve months.
31 (3) Application of credit. The credit allowed under this subsection
32 for any taxable year shall not reduce the tax due for such year to less
33 than the higher of the amount prescribed in paragraphs (c) and (d) of
34 subdivision one of section two hundred ten-B of this chapter. If, howev-
35 er, the amount of credits allowed under this subdivision for any taxable
36 year reduces the tax to such amount, any amount of credit thus not
37 deductible in such taxable year shall be treated as an overpayment of
38 tax to be credited or refunded in accordance with the provisions of
39 section one thousand eighty-six of this chapter. Provided, however, the
40 provisions of subsection (c) of section one thousand eighty-eight of
41 this chapter notwithstanding, no interest shall be paid thereon.
42 § 4. This act shall take effect immediately and shall apply to taxable
43 years beginning on and after January 1, 2026 and shall apply to those
44 employees hired after this act shall take effect.
