senate Bill S1383

Amended

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

  • 09 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 30 / Jan / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 30 / Jan / 2014
    • PRINT NUMBER 1383A

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:
A2373
Versions:
S1383
S1383A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd ยงยง210 & 606, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S310, A1366
2009-2010: S243A, A330A
2007-2008: S2956B, A5438B

Sponsor Memo

BILL NUMBER:S1383 REVISED 1/9/13

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 incarcer-
ated individuals and those with criminal records to obtain gainful
employment. This bill will help to address this issue by giving employ-
ers 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 2011-2012: 5.310 - Died in Committee

EFFECTIVE DATE: This act shall take effect immediately and shall apply
to taxable years beginning on and after January 1, 2014 and ending
December 31, 2016, except for the reporting requirement which will be in
effect until March 31, 2017.

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

                                  1383

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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 46 to read as follows:
  46. 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 THIRTEEN 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 FOURTEEN 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.
                                                           LBD02817-01-3

S. 1383                             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 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 PROVISION OF LAW 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 THIRTEEN 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 FOURTEEN 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. 1383                             3

  (III)  RECEIVES  WAGES WHICH ARE AT LEAST ONE HUNDRED FORTY PERCENT OF
THE 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 PROVISION OF  LAW  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 DEDUCT-
IBLE 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 ADDI-
TION, THE AMOUNT OF SUCH CREDIT, AND CARRYOVERS OF SUCH  CREDIT  TO  THE
TAXABLE YEAR, DEDUCTED FROM THE TAX OTHERWISE DUE MAY NOT, IN THE AGGRE-
GATE,  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  (xxxv)  to  read  as
follows:

(XXXV) RE-ENTRY EMPLOYMENT           AMOUNT OF CREDIT
INCENTIVE TAX CREDIT UNDER           UNDER SUBDIVISION
SUBSECTION (K-1)                     FORTY-SIX 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, 2014, 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 46 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, 2014. A taxpayer that employs one or  more  such
designated  qualified  individuals  on or after January 1, 2014 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 46 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, 2017.

S. 1383                             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, 2014 and ending
not later than December 31, 2016; 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,  2016, provided, further, that the opening para-
graph and subdivision (b) of section four of this act shall  expire  and
be deemed repealed March 31, 2017.

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