Bill Text: NY A05506 | 2021-2022 | General Assembly | Amended
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2022-02-08 - enacting clause stricken [A05506 Detail]
Download: New_York-2021-A05506-Amended.html
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. LBD05023-03-1A. 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 thusA. 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 successfullyA. 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.
