Bill Text: NY S00243 | 2009-2010 | General Assembly | Amended
Bill Title: Establishes a re-entry employment incentive tax credit for employers who hire individuals who have been released from correctional facilities in this state for full-time employment at a rate that is 140% of the state minimum wage.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-06 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S00243 Detail]
Download: New_York-2009-S00243-Amended.html
S T A T E O F N E W Y O R K ________________________________________________________________________ S. 243--A A. 330--A 2009-2010 Regular Sessions S E N A T E - A S S E M B L Y (PREFILED) January 7, 2009 ___________ IN SENATE -- Introduced by Sen. MONTGOMERY -- read twice and ordered printed, and when printed to be committed to the Committee on Investi- gations and Government Operations -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee IN ASSEMBLY -- Introduced by M. of A. JEFFRIES, SCHROEDER, AUBRY, BOYLAND, CAMARA, JAFFEE, PEOPLES, ORTIZ, ROBINSON, COOK, TITUS -- Multi-Sponsored by -- M. of A. GOTTFRIED, HOOPER, V. LOPEZ, NOLAN, TOWNS -- 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 providing a re-entry employ- ment incentive tax credit; and providing for the repeal of such provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Section 210 of the tax law is amended by adding a new 2 subdivision 41 to read as follows: 3 41. RE-ENTRY EMPLOYMENT INCENTIVE TAX CREDIT. (A) A TAXPAYER SHALL BE 4 ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE 5 TAX IMPOSED BY THIS ARTICLE IN THE AMOUNT PRESCRIBED BY THIS SUBDIVISION 6 WHERE SUCH TAXPAYER EMPLOYS ONE OR MORE QUALIFYING INDIVIDUALS DESIG- 7 NATED PURSUANT TO SUBDIVISION (A) OF SECTION FOUR OF THE CHAPTER OF THE 8 LAWS OF TWO THOUSAND NINE THAT ADDED THIS SUBDIVISION. 9 (B) THE AMOUNT OF THE CREDIT SHALL BE AS FOLLOWS FOR EACH QUALIFYING 10 INDIVIDUAL EMPLOYED BY THE TAXPAYER: 11 (I) FIFTY PERCENT OF THE QUALIFIED WAGES IN THE FIRST YEAR OF EMPLOY- 12 MENT; EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00071-03-9 S. 243--A 2 A. 330--A 1 (II) FORTY PERCENT OF QUALIFIED WAGES IN THE SECOND YEAR OF EMPLOY- 2 MENT; AND 3 (III) THIRTY PERCENT OF QUALIFIED WAGES IN THE THIRD YEAR OF EMPLOY- 4 MENT. 5 (C) FOR THE PURPOSES OF THIS SUBDIVISION, "QUALIFYING INDIVIDUAL" 6 SHALL MEAN AN INDIVIDUAL HIRED BY A TAXPAYER ON OR AFTER JANUARY FIRST, 7 TWO THOUSAND ELEVEN WHO: 8 (I) HAS BEEN CONVICTED OF A FELONY IN THIS STATE IN THE LAST FIVE 9 YEARS, HAS BEEN RELEASED FROM A CORRECTIONAL FACILITY AS DEFINED IN 10 SUBDIVISION FOUR OF SECTION TWO OF THE CORRECTION LAW IN THE LAST FIVE 11 YEARS OR IS SERVING A PERIOD OF POST-RELEASE SUPERVISION, PAROLE OR 12 PROBATION FOR THE CONVICTION OF A FELONY, PROVIDED THAT AN INDIVIDUAL 13 SHALL BE CONSIDERED A QUALIFIED INDIVIDUAL FOR EACH OF THE FIRST FOUR 14 YEARS OF EMPLOYMENT IF HIRED BY THE TAXPAYER WITHIN THE TIME PERIOD 15 SPECIFIED IN THIS SUBPARAGRAPH; 16 (II) RESIDES IN THIS STATE; 17 (III) RECEIVES WAGES WHICH ARE AT LEAST ONE HUNDRED FORTY PERCENT OF 18 THE NEW YORK STATE MINIMUM WAGE; AND 19 (IV) RECEIVES QUALIFIED WAGES FOR AT LEAST THREE CONTINUOUS MONTHS 20 FROM THE TAXPAYER DURING THE TAXABLE YEAR. 21 (D) FOR THE PURPOSES OF THIS SUBDIVISION, "QUALIFIED WAGES" SHALL MEAN 22 WAGES PAID OR INCURRED BY THE TAXPAYER DURING THE TAXABLE YEAR TO THE 23 QUALIFIED INDIVIDUAL, PROVIDED THAT THE AMOUNT OF QUALIFIED WAGES WHICH 24 MAY BE TAKEN INTO ACCOUNT WHEN CALCULATING THE CREDIT PURSUANT TO THIS 25 SUBDIVISION SHALL NOT EXCEED TEN THOUSAND DOLLARS PER YEAR. 26 (E) NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY, THE CREDIT AND 27 CARRYOVER OF SUCH CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE 28 YEARS SHALL NOT, IN THE AGGREGATE, REDUCE THE TAX DUE FOR SUCH YEAR TO 29 LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) 30 OF SUBDIVISION ONE OF THIS SECTION, ANY AMOUNT OF CREDIT OR CARRYOVER OF 31 SUCH CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER 32 TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAX FOR SUCH 33 YEAR OR YEARS. IN ADDITION, THE AMOUNT OF SUCH CREDIT, AND CARRYOVERS OF 34 SUCH CREDIT TO THE TAXABLE YEAR, DEDUCTED FROM THE TAX OTHERWISE DUE MAY 35 NOT, IN THE AGGREGATE, EXCEED FIFTY PERCENT OF THE TAX IMPOSED UNDER 36 SECTION TWO HUNDRED NINE OF THIS ARTICLE COMPUTED WITHOUT REGARD TO ANY 37 CREDIT PROVIDED BY THIS SECTION. 38 S 2. Section 606 of the tax law is amended by adding a new subsection 39 (k-1) to read as follows: 40 (K-1) RE-ENTRY EMPLOYMENT INCENTIVE TAX CREDIT. (A) A TAXPAYER SHALL 41 BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE 42 TAX IMPOSED BY THIS ARTICLE IN THE AMOUNT PRESCRIBED BY THIS SUBSECTION 43 WHERE SUCH TAXPAYER EMPLOYS ONE OR MORE QUALIFYING INDIVIDUALS DESIG- 44 NATED PURSUANT TO SUBDIVISION (A) OF SECTION FOUR OF THE CHAPTER OF THE 45 LAWS OF TWO THOUSAND NINE THAT ADDED THIS SUBSECTION. 46 (B) THE AMOUNT OF THE CREDIT SHALL BE AS FOLLOWS FOR EACH QUALIFYING 47 INDIVIDUAL EMPLOYED BY THE TAXPAYER: 48 (I) FIFTY PERCENT OF THE QUALIFIED WAGES IN THE FIRST YEAR OF EMPLOY- 49 MENT; 50 (II) FORTY PERCENT OF QUALIFIED WAGES IN THE SECOND YEAR OF EMPLOY- 51 MENT; AND 52 (III) THIRTY PERCENT OF QUALIFIED WAGES IN THE THIRD YEAR OF EMPLOY- 53 MENT. 54 (C) FOR THE PURPOSES OF THIS SUBSECTION, "QUALIFYING INDIVIDUAL" SHALL 55 MEAN AN INDIVIDUAL HIRED BY A TAXPAYER ON OR AFTER JANUARY FIRST, TWO 56 THOUSAND ELEVEN WHO: S. 243--A 3 A. 330--A 1 (I) HAS BEEN CONVICTED OF A FELONY IN THIS STATE IN THE LAST FIVE 2 YEARS, HAS BEEN RELEASED FROM A CORRECTIONAL FACILITY AS DEFINED IN 3 SUBDIVISION FOUR OF SECTION TWO OF THE CORRECTION LAW IN THE LAST FIVE 4 YEARS OR IS SERVING A PERIOD OF POST-RELEASE SUPERVISION, PAROLE OR 5 PROBATION FOR THE CONVICTION OF A FELONY, PROVIDED THAT AN INDIVIDUAL 6 SHALL BE CONSIDERED A QUALIFIED INDIVIDUAL FOR EACH OF THE FIRST FOUR 7 YEARS OF EMPLOYMENT IF HIRED BY THE TAXPAYER WITHIN THE TIME PERIOD 8 SPECIFIED IN THIS SUBPARAGRAPH; 9 (II) RESIDES IN THIS STATE; 10 (III) RECEIVES WAGES WHICH ARE AT LEAST ONE HUNDRED FORTY PERCENT OF 11 THE NEW YORK STATE MINIMUM WAGE; AND 12 (IV) RECEIVES QUALIFIED WAGES FOR AT LEAST THREE CONTINUOUS MONTHS 13 FROM THE TAXPAYER DURING THE TAXABLE YEAR. 14 (D) FOR THE PURPOSES OF THIS SUBSECTION, "QUALIFIED WAGES" SHALL MEAN 15 WAGES PAID OR INCURRED BY THE TAXPAYER DURING THE TAXABLE YEAR TO THE 16 QUALIFIED INDIVIDUAL, PROVIDED THAT THE AMOUNT OF QUALIFIED WAGES WHICH 17 MAY BE TAKEN INTO ACCOUNT WHEN CALCULATING THE CREDIT PURSUANT TO THIS 18 SUBSECTION SHALL NOT EXCEED TEN THOUSAND DOLLARS PER YEAR. 19 (E) NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY, IF THE AMOUNT OF 20 THE CREDIT AND CARRYOVERS OF SUCH CREDIT ALLOWED UNDER THIS SUBSECTION 21 FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, ANY 22 AMOUNT OF CREDIT OR CARRYOVERS OF SUCH CREDIT THUS NOT DEDUCTIBLE IN 23 SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND 24 MAY BE DEDUCTED FROM THE TAX FOR SUCH YEAR OR YEARS. IN ADDITION, THE 25 AMOUNT OF SUCH CREDIT, AND CARRYOVERS OF SUCH CREDIT TO THE TAXABLE 26 YEAR, DEDUCTED FROM THE TAX OTHERWISE DUE MAY NOT, IN THE AGGREGATE, 27 EXCEED FIFTY PERCENT OF THE TAX IMPOSED UNDER SECTION SIX HUNDRED ONE OF 28 THIS PART COMPUTED WITHOUT REGARD TO ANY CREDIT PROVIDED FOR BY THIS 29 SECTION. 30 S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 31 of the tax law is amended by adding a new clause (xxxi) to read as 32 follows: 33 (XXXI) RE-ENTRY EMPLOYMENT AMOUNT OF CREDIT 34 INCENTIVE TAX CREDIT UNDER UNDER SUBDIVISION 35 SUBSECTION (K-1) FORTY-ONE OF SECTION 36 TWO HUNDRED TEN 37 S 4. Re-entry employment incentive tax credit pilot project. (a) 38 Notwithstanding any inconsistent provision of law, the commissioner of 39 labor, or his or her designee, shall, before January 1, 2011, consult 40 with The Fortune Society to identify and designate 100 formerly incar- 41 cerated qualified individuals, as such term is defined in paragraph (c) 42 of subdivision 41 of section 210 of the tax law, to participate in the 43 pilot project established by this section for a period of three years 44 beginning on January 1, 2011. A taxpayer that employs one or more such 45 designated qualified individuals on or after January 1, 2011 shall be 46 allowed a credit, against the tax imposed by article 9-A or article 22 47 of the tax law in the amount prescribed by subdivision 41 of section 210 48 of the tax law or subsection (k-1) of section 606 of the tax law as 49 applicable. The commissioner of labor and the commissioner of taxation 50 and finance shall promulgate all necessary rules and regulations to 51 implement the re-entry employment incentive tax credit pilot project 52 established by this section. 53 (b) Further, the commissioner of labor, in consultation with the 54 Center for NuLeadership on Urban Solutions at Medgar Evers College at S. 243--A 4 A. 330--A 1 the City University of New York, shall produce a report on the effec- 2 tiveness of the pilot project established by this section in creating 3 employment opportunities for persons with criminal convictions. Such 4 report shall be submitted to the governor, temporary president of the 5 senate, speaker of the assembly and the chairpersons of the senate crime 6 victims, crime and correction committee, assembly correction committee, 7 senate codes committee, assembly codes committee, senate finance commit- 8 tee and assembly ways and means committee on or before March 31, 2014. 9 S 5. This act shall take effect immediately; provided, however, that 10 the credits established by sections one, two and three of this act shall 11 apply to taxable years beginning on or after January 1, 2011 and ending 12 not later than December 31, 2013; provided further that sections one, 13 two and three of this act shall expire and be deemed repealed, and 14 subdivision (a) of section four of this act shall expire and be deemed 15 repealed December 31, 2013, provided, further, that the opening para- 16 graph and subdivision (b) of section four of this act shall expire and 17 be deemed repealed March 31, 2014.