Allows a tax credit for a taxpayer employing a person who is in recovery with an office of alcoholism and substance abuse services approved rehabilitation center.
STATE OF NEW YORK
________________________________________________________________________
2020
2019-2020 Regular Sessions
IN SENATE
January 18, 2019
___________
Introduced by Sen. LITTLE -- read twice and ordered printed, and when
printed to be committed to the Committee on Budget and Revenue
AN ACT to amend the tax law, in relation to a credit for employment of
persons who are in recovery with an office of alcoholism and substance
abuse services approved rehabilitation center
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 187-t to
2 read as follows:
3 § 187-t. Credit for employment of persons who are in recovery with an
4 office of alcoholism and substance abuse services approved rehabili-
5 tation center. 1. Allowance of credit. A taxpayer shall be allowed a
6 credit, to be computed as hereinafter provided, against the taxes
7 imposed by this article, other than the taxes imposed by sections one
8 hundred eighty-six-a and one hundred eighty-six-e of this article, for
9 employing within the state a qualified employee. Provided, however, the
10 amount of credit allowed by this section against the tax imposed by
11 section one hundred eighty-four of this article shall be the excess of
12 the credit computed under this section over the amount of credit allowed
13 by this section against the tax imposed by section one hundred eighty-
14 three of this article.
15 2. Qualified employee. A qualified employee is an individual who:
16 (a) is in recovery with an office of alcoholism and substance abuse
17 services approved rehabilitation center; and
18 (b) has worked on a full-time basis for the employer who is claiming
19 the credit for at least one hundred eighty days or four hundred hours.
20 3. Amount of credit. Except as provided in subdivision four of this
21 section, the amount of credit under this section shall be thirty-five
22 percent of the first six thousand dollars in qualified first-year wages
23 earned by each qualified employee. "Qualified first-year wages" means
24 wages paid or incurred by the taxpayer during the taxable year to quali-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02902-01-9
S. 2020 2
1 fied employees which are attributable, with respect to any such employ-
2 ee, to services rendered during the one-year period beginning with the
3 day the employee begins work for the taxpayer.
4 4. Credit where federal work opportunity tax credit applies. With
5 respect to any qualified employee whose qualified first-year wages under
6 subdivision three of this section also constitute qualified first-year
7 wages for purposes of the work opportunity tax credit for vocational
8 rehabilitation referrals under section fifty-one of the internal revenue
9 code, the amount of credit under this section shall be thirty-five
10 percent of the first six thousand dollars in qualified second-year wages
11 earned by each such employee. "Qualified second-year wages" means wages
12 paid or incurred by the taxpayer during the taxable year to qualified
13 employees which are attributable, with respect to any such employee, to
14 services rendered during the one-year period beginning one year after
15 the employee begins work for the taxpayer.
16 5. Carryover. In no event shall the credit under this section be
17 allowed in an amount which will reduce the tax payable to less than the
18 applicable minimum tax fixed by section one hundred eighty-three of this
19 article. If, however, the amount of credit allowable under this section
20 for any taxable year reduces the tax to such amount, any amount of cred-
21 it not deductible in such taxable year may be carried over to the
22 following year or years and may be deducted from the taxpayer's tax for
23 such year or years.
24 6. Coordination with federal work opportunity tax credit. The
25 provisions of sections fifty-one and fifty-two of the internal revenue
26 code, as such sections applied on October first, nineteen hundred nine-
27 ty-six, that apply to the work opportunity tax credit for vocational
28 rehabilitation referrals shall apply to the credit under this section to
29 the extent that such sections are consistent with the specific
30 provisions of this section, provided that in the event of a conflict the
31 provisions of this section shall control.
32 § 2. This act shall take effect immediately, and shall apply to taxa-
33 ble years beginning on and after January 1, 2020.