senate Bill S310

Establishes a re-entry employment incentive tax credit

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 05 / Jan / 2011
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 04 / Jan / 2012
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 21 / Feb / 2012
    • NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
  • 12 / Mar / 2012
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES

Summary

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.

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Bill Details

See Assembly Version of this Bill:
A1366
Versions:
S310
Legislative Cycle:
2011-2012
Current Committee:
Senate Rules
Law Section:
Tax Law
Laws Affected:
Amd ยงยง210 & 606, Tax L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S243A, A330A
2007-2008: S2956B, A5438B

Sponsor Memo

BILL NUMBER:S310

TITLE OF BILL:
An act
to amend the tax law, in relation to providing a re-entry employment
incentive tax credit;
and providing for the repeal of such
provisions upon expiration thereof

PURPOSE:
This bill is intended to help formerly incarcerated men and women
obtain meaningful employment upon their release from prison/jail by
offering employers who hire them a tax credit.

SUMMARY OF PROVISIONS:
The bill establishes the Re-Entry Employment Incentive Tax Credit
pilot project. Under the legislation, a tax credit of up to $5,000
would be available to employers that hire qualifying individuals who
are designated by the department of labor to participate in the pilot
project. A qualifying individual is defined as a person who is first
employed after the effective date of this act, and who has been
released from a state correctional facility in the last five years,
convicted of a felony in the last five years, or serving a period of
parole, probation or post release supervision, and who resides in New
York State, and receives wages which are 140 percent of the New York
State minimum wage. The bill also requires the department of labor to
report to the legislature on the effectiveness of the tax credit in
promoting job opportunities for individuals who participate in the
pilot project.

JUSTIFICATION:
Employment is one of major barriers to the successful re-entry of
formerly incarcerated individuals. However, studies show that
employment is a major factor in reducing recidivism. Therefore, it is
important that New York promote policies to assist formerly
incarcerated individuals and those with criminal records to obtain
gainful employment. This bill will help to address this issue by
giving employers an incentive to hire qualified persons with criminal
records and create more job opportunities.

LEGISLATIVE HISTORY:
2009-2010: S.243-A/A.330-A - Referred to Senate Investigations and
Government operations Committee/Referred to Assembly Ways and Means
Committee

EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable
years beginning on and after January 1, 2012 and ending December 31,
2014, except for the reporting requirement which will be in effect
until March 31, 2015.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   310

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen.  MONTGOMERY  -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government Operations

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:

  Section  1.  Section  210  of  the  tax law is amended by adding a new
subdivision 43 to read as follows:
  43. RE-ENTRY EMPLOYMENT INCENTIVE TAX CREDIT. (A) A TAXPAYER SHALL  BE
ALLOWED  A  CREDIT,  TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE IN THE AMOUNT PRESCRIBED BY THIS SUBDIVISION
WHERE SUCH TAXPAYER EMPLOYS ONE OR MORE  QUALIFYING  INDIVIDUALS  DESIG-
NATED  PURSUANT TO SUBDIVISION (A) OF SECTION FOUR OF THE CHAPTER OF THE
LAWS OF TWO THOUSAND ELEVEN THAT ADDED THIS SUBDIVISION.
  (B) THE AMOUNT OF THE CREDIT SHALL BE AS FOLLOWS FOR  EACH  QUALIFYING
INDIVIDUAL EMPLOYED BY THE TAXPAYER:
  (I)  FIFTY PERCENT OF THE QUALIFIED WAGES IN THE FIRST YEAR OF EMPLOY-
MENT;
  (II) FORTY PERCENT OF QUALIFIED WAGES IN THE SECOND  YEAR  OF  EMPLOY-
MENT; AND
  (III)  THIRTY  PERCENT OF QUALIFIED WAGES IN THE THIRD YEAR OF EMPLOY-
MENT.
  (C) FOR THE PURPOSES  OF  THIS  SUBDIVISION,  "QUALIFYING  INDIVIDUAL"
SHALL  MEAN AN INDIVIDUAL HIRED BY A TAXPAYER ON OR AFTER JANUARY FIRST,
TWO THOUSAND TWELVE WHO:
  (I) HAS BEEN CONVICTED OF A FELONY IN THIS  STATE  IN  THE  LAST  FIVE
YEARS,  HAS  BEEN  RELEASED  FROM  A CORRECTIONAL FACILITY AS DEFINED IN
SUBDIVISION FOUR OF SECTION TWO OF THE CORRECTION LAW IN THE  LAST  FIVE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01511-01-1

S. 310                              2

YEARS  OR  IS  SERVING  A  PERIOD OF POST-RELEASE SUPERVISION, PAROLE OR
PROBATION FOR THE CONVICTION OF A FELONY, PROVIDED  THAT  AN  INDIVIDUAL
SHALL  BE  CONSIDERED  A QUALIFIED INDIVIDUAL FOR EACH OF THE FIRST FOUR
YEARS  OF  EMPLOYMENT  IF  HIRED  BY THE TAXPAYER WITHIN THE TIME PERIOD
SPECIFIED IN THIS SUBPARAGRAPH;
  (II) RESIDES IN THIS STATE;
  (III) RECEIVES WAGES WHICH ARE AT LEAST ONE HUNDRED FORTY  PERCENT  OF
THE NEW YORK STATE MINIMUM WAGE; AND
  (IV)  RECEIVES  QUALIFIED  WAGES  FOR AT LEAST THREE CONTINUOUS MONTHS
FROM THE TAXPAYER DURING THE TAXABLE YEAR.
  (D) FOR THE PURPOSES OF THIS SUBDIVISION, "QUALIFIED WAGES" SHALL MEAN
WAGES PAID OR INCURRED BY THE TAXPAYER DURING THE TAXABLE  YEAR  TO  THE
QUALIFIED  INDIVIDUAL, PROVIDED THAT THE AMOUNT OF QUALIFIED WAGES WHICH
MAY BE TAKEN INTO ACCOUNT WHEN CALCULATING THE CREDIT PURSUANT  TO  THIS
SUBDIVISION SHALL NOT EXCEED TEN THOUSAND DOLLARS PER YEAR.
  (E)  NOTWITHSTANDING  ANY  PROVISIONS  TO THE CONTRARY, THE CREDIT AND
CARRYOVER OF SUCH CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY  TAXABLE
YEARS  SHALL  NOT, IN THE AGGREGATE, REDUCE THE TAX DUE FOR SUCH YEAR TO
LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D)
OF SUBDIVISION ONE OF THIS SECTION, ANY AMOUNT OF CREDIT OR CARRYOVER OF
SUCH CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER
TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAX FOR SUCH
YEAR OR YEARS. IN ADDITION, THE AMOUNT OF SUCH CREDIT, AND CARRYOVERS OF
SUCH CREDIT TO THE TAXABLE YEAR, DEDUCTED FROM THE TAX OTHERWISE DUE MAY
NOT, IN THE AGGREGATE, EXCEED FIFTY PERCENT OF  THE  TAX  IMPOSED  UNDER
SECTION  TWO HUNDRED NINE OF THIS ARTICLE COMPUTED WITHOUT REGARD TO ANY
CREDIT PROVIDED BY THIS SECTION.
  S 2. Section 606 of the tax law is amended by adding a new  subsection
(k-1) to read as follows:
  (K-1)  RE-ENTRY  EMPLOYMENT INCENTIVE TAX CREDIT. (A) A TAXPAYER SHALL
BE ALLOWED A CREDIT, TO BE COMPUTED AS HEREINAFTER PROVIDED, AGAINST THE
TAX IMPOSED BY THIS ARTICLE IN THE AMOUNT PRESCRIBED BY THIS  SUBSECTION
WHERE  SUCH  TAXPAYER  EMPLOYS ONE OR MORE QUALIFYING INDIVIDUALS DESIG-
NATED PURSUANT TO SUBDIVISION (A) OF SECTION FOUR OF THE CHAPTER OF  THE
LAWS OF TWO THOUSAND ELEVEN THAT ADDED THIS SUBSECTION.
  (B)  THE  AMOUNT OF THE CREDIT SHALL BE AS FOLLOWS FOR EACH QUALIFYING
INDIVIDUAL EMPLOYED BY THE TAXPAYER:
  (I) FIFTY PERCENT OF THE QUALIFIED WAGES IN THE FIRST YEAR OF  EMPLOY-
MENT;
  (II)  FORTY  PERCENT  OF QUALIFIED WAGES IN THE SECOND YEAR OF EMPLOY-
MENT; AND
  (III) THIRTY PERCENT OF QUALIFIED WAGES IN THE THIRD YEAR  OF  EMPLOY-
MENT.
  (C) FOR THE PURPOSES OF THIS SUBSECTION, "QUALIFYING INDIVIDUAL" SHALL
MEAN  AN  INDIVIDUAL  HIRED BY A TAXPAYER ON OR AFTER JANUARY FIRST, TWO
THOUSAND TWELVE WHO:
  (I) HAS BEEN CONVICTED OF A FELONY IN THIS  STATE  IN  THE  LAST  FIVE
YEARS,  HAS  BEEN  RELEASED  FROM  A CORRECTIONAL FACILITY AS DEFINED IN
SUBDIVISION FOUR OF SECTION TWO OF THE CORRECTION LAW IN THE  LAST  FIVE
YEARS  OR  IS  SERVING  A  PERIOD OF POST-RELEASE SUPERVISION, PAROLE OR
PROBATION FOR THE CONVICTION OF A FELONY, PROVIDED  THAT  AN  INDIVIDUAL
SHALL  BE  CONSIDERED  A QUALIFIED INDIVIDUAL FOR EACH OF THE FIRST FOUR
YEARS OF EMPLOYMENT IF HIRED BY THE  TAXPAYER  WITHIN  THE  TIME  PERIOD
SPECIFIED IN THIS SUBPARAGRAPH;
  (II) RESIDES IN THIS STATE;

S. 310                              3

  (III)  RECEIVES  WAGES WHICH ARE AT LEAST ONE HUNDRED FORTY PERCENT OF
THE NEW YORK STATE MINIMUM WAGE; AND
  (IV)  RECEIVES  QUALIFIED  WAGES  FOR AT LEAST THREE CONTINUOUS MONTHS
FROM THE TAXPAYER DURING THE TAXABLE YEAR.
  (D) FOR THE PURPOSES OF THIS SUBSECTION, "QUALIFIED WAGES" SHALL  MEAN
WAGES  PAID  OR  INCURRED BY THE TAXPAYER DURING THE TAXABLE YEAR TO THE
QUALIFIED INDIVIDUAL, PROVIDED THAT THE AMOUNT OF QUALIFIED WAGES  WHICH
MAY  BE  TAKEN INTO ACCOUNT WHEN CALCULATING THE CREDIT PURSUANT TO THIS
SUBSECTION SHALL NOT EXCEED TEN THOUSAND DOLLARS PER YEAR.
  (E) NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY, IF THE  AMOUNT  OF
THE  CREDIT  AND CARRYOVERS OF SUCH CREDIT ALLOWED UNDER THIS SUBSECTION
FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR,  ANY
AMOUNT  OF  CREDIT  OR  CARRYOVERS OF SUCH CREDIT THUS NOT DEDUCTIBLE IN
SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND
MAY BE DEDUCTED FROM THE TAX FOR SUCH YEAR OR YEARS.  IN  ADDITION,  THE
AMOUNT  OF  SUCH  CREDIT,  AND  CARRYOVERS OF SUCH CREDIT TO THE TAXABLE
YEAR, DEDUCTED FROM THE TAX OTHERWISE DUE MAY  NOT,  IN  THE  AGGREGATE,
EXCEED FIFTY PERCENT OF THE TAX IMPOSED UNDER SECTION SIX HUNDRED ONE OF
THIS  PART  COMPUTED  WITHOUT  REGARD TO ANY CREDIT PROVIDED FOR BY THIS
SECTION.
  S 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended by adding a new clause (xxxii) to read as
follows:

(XXXII) RE-ENTRY EMPLOYMENT          AMOUNT OF CREDIT
INCENTIVE TAX CREDIT UNDER           UNDER SUBDIVISION
SUBSECTION (K-1)                     FORTY-THREE OF SECTION
                                     TWO HUNDRED TEN

  S 4. Re-entry employment  incentive  tax  credit  pilot  project.  (a)
Notwithstanding  any  inconsistent provision of law, the commissioner of
labor, or his or her designee, shall, before January  1,  2012,  consult
with  The  Fortune Society to identify and designate 100 formerly incar-
cerated qualified individuals, as such term is defined in paragraph  (c)
of  subdivision  43 of section 210 of the tax law, to participate in the
pilot project established by this section for a period  of  three  years
beginning  on  January 1, 2012. A taxpayer that employs one or more such
designated qualified individuals on or after January 1,  2012  shall  be
allowed  a  credit, against the tax imposed by article 9-A or article 22
of the tax law in the amount prescribed by subdivision 43 of section 210
of the tax law or subsection (k-1) of section 606  of  the  tax  law  as
applicable.  The  commissioner of labor and the commissioner of taxation
and finance shall promulgate all  necessary  rules  and  regulations  to
implement  the  re-entry  employment  incentive tax credit pilot project
established by this section.
  (b) Further, the commissioner  of  labor,  in  consultation  with  the
Center  for  NuLeadership  on Urban Solutions at Medgar Evers College at
the City University of New York, shall produce a report  on  the  effec-
tiveness  of  the  pilot project established by this section in creating
employment opportunities for persons  with  criminal  convictions.  Such
report  shall  be  submitted to the governor, temporary president of the
senate, speaker of the assembly and the chairpersons of the senate crime
victims, crime and correction committee, assembly correction  committee,
senate codes committee, assembly codes committee, senate finance commit-
tee and assembly ways and means committee on or before March 31, 2015.

S. 310                              4

  S  5.  This act shall take effect immediately; provided, however, that
the credits established by sections one, two and three of this act shall
apply to taxable years beginning on or after January 1, 2012 and  ending
not  later  than  December 31, 2014; provided further that sections one,
two  and  three  of  this  act  shall expire and be deemed repealed, and
subdivision (a) of section four of this act shall expire and  be  deemed
repealed  December  31,  2014, provided, further, that the opening para-
graph and subdivision (b) of section four of this act shall  expire  and
be deemed repealed March 31, 2015.

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