Bill Text: NY S05180 | 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 1-0)
Status: (Engrossed - Dead) 2021-06-02 - referred to ways and means [S05180 Detail]
Download: New_York-2021-S05180-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5180--A Cal. No. 1198 2021-2022 Regular Sessions IN SENATE February 26, 2021 ___________ Introduced by Sen. BENJAMIN -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue -- reported favorably from said committee and committed to the Committee on Finance -- reported favorably from said committee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading 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- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05023-02-1S. 5180--A 2 1 sion for any taxable year reduces the tax to such amount, any amount of 2 credit thus not deductible in such taxable year shall be treated as an 3 overpayment of tax to be credited or refunded in accordance with the 4 provisions of section one thousand eighty-six of this chapter. Provided, 5 however, the provisions of subsection (c) of section one thousand eight- 6 y-eight of this chapter notwithstanding, no interest shall be paid ther- 7 eon. 8 (d) Credit recapture. For provisions requiring recapture of credit, 9 see section forty-four of this chapter. 10 (e) Reporting requirement. The department shall issue an annual report 11 on the utilization of this credit and similar credits for hiring indi- 12 viduals who have graduated from drug court or have successfully 13 completed a judicial diversion program pursuant to other articles of 14 this chapter. Such report shall include the number of taxpayers that 15 claimed these credits, the number of individuals who have graduated 16 from drug court or have successfully completed a judicial diversion 17 program for whom a credit was claimed, and information on the average 18 number of hours they were employed. The report shall also include infor- 19 mation on steps taken by the department to inform employers of the 20 existence of this credit and of any other actions taken to increase 21 awareness of the availability of this credit. The department shall issue 22 the first report on October first, two thousand twenty-two using the 23 most recent applicable tax data. The department shall issue reports for 24 subsequent tax years annually on October first. The report shall be 25 posted publicly on the department's website and copies shall be deliv- 26 ered to the governor, the speaker of the assembly, and the temporary 27 president of the senate. 28 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 29 of the tax law is amended by adding a new clause (xlvi) to read as 30 follows: 31 (xlvi) Employment of individuals Amount of credit 32 who have graduated from under subdivision 33 drug court or have fifty-five of section 34 successfully completed two hundred ten-B 35 a judicial diversion program 36 tax credit under 37 subsection (nnn) 38 § 3. Section 606 of the tax law is amended by adding a new subsection 39 (nnn) to read as follows: 40 (nnn) Tax credit for employment of individuals who have graduated from 41 drug court or have successfully completed a judicial diversion program. 42 (1) Allowance of credit. A taxpayer shall be allowed a credit, to be 43 computed as provided in this subsection, against the tax imposed by this 44 article, if it employs an individual who has graduated from drug court 45 or who has successfully completed a judicial diversion program pursuant 46 to article two hundred sixteen of the criminal procedure law, provided 47 that such individual is employed for thirty-five hours or more per week 48 and remains in the employ of such taxpayer for twelve months. 49 (2) Amount of credit. A credit authorized by this section shall equal 50 three thousand dollars per hired individual for the first year of 51 employment and an additional one thousand dollars if the individual 52 remains in employ for an additional twelve months. 53 (3) Application of credit. The credit allowed under this subsection 54 for any taxable year shall not reduce the tax due for such year to less 55 than the higher of the amount prescribed in paragraphs (c) and (d) of 56 subdivision one of section two hundred ten-B of this chapter. If,S. 5180--A 3 1 however, the amount of credits allowed under this subsection for any 2 taxable year reduces the tax to such amount, any amount of credit thus 3 not deductible in such taxable year shall be treated as an overpayment 4 of tax to be credited or refunded in accordance with the provisions of 5 section one thousand eighty-six of this chapter. Provided, however, the 6 provisions of subsection (c) of section one thousand eighty-eight of 7 this chapter notwithstanding, no interest shall be paid thereon. 8 (4) Credit recapture. For provisions requiring recapture of credit, 9 see section forty-four of this chapter. 10 (5) Reporting requirement. The department shall issue an annual report 11 on the utilization of this credit and similar credits for hiring indi- 12 viduals who have graduated from drug court or have successfully 13 completed a judicial diversion program pursuant to other articles of 14 this chapter. Such report shall include the number of taxpayers that 15 claimed these credits, the number of individuals who have graduated from 16 drug court or have successfully completed a judicial diversion program 17 for whom a credit was claimed, and information on the average number of 18 hours they were employed. The report shall also include information on 19 steps taken by the department to inform employers of the existence of 20 this credit and of any other actions taken to increase awareness of 21 the availability of this credit. The department shall issue the first 22 report on October first, two thousand twenty-two using the most recent 23 applicable tax data. The department shall issue reports for subsequent 24 tax years annually on October first. The report shall be posted public- 25 ly on the department's website and copies shall be delivered to the 26 governor, the speaker of the assembly, and the temporary president of 27 the senate. 28 § 4. Section 1511 of the tax law is amended by adding a new subsection 29 (ee) to read as follows: 30 (ee) Credit for employment of individuals who have graduated from drug 31 court or have successfully completed a judicial diversion program. (1) 32 Allowance of credit. A taxpayer shall be allowed a credit, to be 33 computed as provided in this subsection, against the tax imposed by this 34 article, if it employs an individual who has graduated from drug court 35 or has successfully completed a judicial diversion program pursuant to 36 article two hundred sixteen of the criminal procedure law, provided that 37 such individual is employed for thirty-five hours or more per week and 38 remains in the employ of such taxpayer for a minimum of twelve months. 39 (2) Amount of credit. A credit authorized by this section shall equal 40 three thousand dollars per hired individual for the first year of 41 employment and an additional one thousand dollars if the individual 42 remains in employ for an additional twelve months. 43 (3) Application of credit. The credit allowed under this subsection 44 shall not reduce the tax due for such year to be less than the minimum 45 fixed by paragraph four of subdivision (a) of section fifteen hundred 46 two or section fifteen hundred two-a of this article, whichever is 47 applicable. However, if the amount of the credit allowed under this 48 subsection for any taxable year reduces the taxpayer's tax of such 49 amount, any amount of credit thus not deductible will be treated as an 50 overpayment of tax to be credited or refunded in accordance with the 51 provisions of section one thousand eighty-six of this chapter. Provided, 52 however, the provisions of subsection (c) of one thousand eighty-eight 53 of this chapter notwithstanding, no interest shall be paid thereon. 54 (4) Credit recapture. For provisions requiring recapture of credit, 55 see section forty-four of this chapter.S. 5180--A 4 1 (5) Reporting requirement. The department shall issue an annual report 2 on the utilization of this credit and similar credits for hiring indi- 3 viduals who have graduated from drug court or have successfully 4 completed a judicial diversion program pursuant to other articles of 5 this chapter. Such report shall include the number of taxpayers that 6 claimed these credits, the number of individuals who have graduated 7 from drug court or have successfully completed a judicial diversion 8 program for whom a credit was claimed, and information on the average 9 number of hours they were employed. The report shall also include infor- 10 mation on steps taken by the department to inform employers of the 11 existence of this credit and of any other actions taken to increase 12 awareness of the availability of this credit. The department shall issue 13 the first report on October first, two thousand twenty-two using the 14 most recent applicable tax data. The department shall issue reports for 15 subsequent tax years annually on October first. The report shall be 16 posted publicly on the department's website and copies shall be deliv- 17 ered to the governor, the speaker of the assembly, and the temporary 18 president of the senate. 19 § 5. This act shall take effect on the first of January next succeed- 20 ing the date on which it shall have become a law, and shall apply to 21 taxable years beginning on or after such date and to employees hired on 22 or after such date.