S T A T E   O F   N E W   Y O R K
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                                   6799
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             October 23, 2019
                                ___________
 
 Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the tax law, in relation to a credit for  employment  of
   persons on probation or parole
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The tax law is amended by adding a  new  section  187-t  to
 read as follows:
   §  187-T.  CREDIT FOR EMPLOYMENT OF PERSONS ON PROBATION OR PAROLE. 1.
 ALLOWANCE OF CREDIT. A  TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE
 COMPUTED  AS  HEREINAFTER  PROVIDED,  AGAINST  THE TAXES IMPOSED BY THIS
 ARTICLE, OTHER THAN THE TAXES IMPOSED BY SECTIONS  ONE  HUNDRED  EIGHTY-
 SIX-A AND ONE HUNDRED EIGHTY-SIX-E OF THIS ARTICLE, FOR EMPLOYING WITHIN
 THE  STATE A QUALIFIED EMPLOYEE. PROVIDED, HOWEVER, THE AMOUNT OF CREDIT
 ALLOWED BY THIS SECTION AGAINST THE TAX IMPOSED BY SECTION  ONE  HUNDRED
 EIGHTY-FOUR  OF  THIS ARTICLE SHALL BE THE EXCESS OF THE CREDIT COMPUTED
 UNDER THIS SECTION OVER THE AMOUNT OF CREDIT  ALLOWED  BY  THIS  SECTION
 AGAINST  THE  TAX  IMPOSED  BY  SECTION ONE HUNDRED EIGHTY-THREE OF THIS
 ARTICLE.
   2. QUALIFIED EMPLOYEE. A QUALIFIED EMPLOYEE IS AN INDIVIDUAL WHO:
   (A) HAS BEEN CONVICTED OF A FELONY UNDER ANY  STATUTE  OF  THE  UNITED
 STATES OR ANY STATE;
   (B) IS ON PROBATION OR PAROLE; AND
   (C)  HAS  WORKED ON A FULL-TIME BASIS FOR THE EMPLOYER WHO IS CLAIMING
 THE CREDIT FOR AT LEAST ONE HUNDRED EIGHTY DAYS OR FOUR HUNDRED HOURS.
   3. AMOUNT OF CREDIT. EXCEPT AS PROVIDED IN SUBDIVISION  FOUR  OF  THIS
 SECTION,  THE  AMOUNT  OF CREDIT UNDER THIS SECTION SHALL BE THIRTY-FIVE
 PERCENT OF THE FIRST SIX THOUSAND DOLLARS IN QUALIFIED FIRST-YEAR  WAGES
 EARNED  BY  EACH  QUALIFIED EMPLOYEE. "QUALIFIED FIRST-YEAR WAGES" MEANS
 WAGES PAID OR INCURRED BY THE TAXPAYER DURING THE TAXABLE YEAR TO QUALI-
 FIED EMPLOYEES WHICH ARE ATTRIBUTABLE, WITH RESPECT TO ANY SUCH  EMPLOY-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08793-01-9

 S. 6799                             2
 
 EE,  TO  SERVICES RENDERED DURING THE ONE-YEAR PERIOD BEGINNING WITH THE
 DAY THE EMPLOYEE BEGINS WORK FOR THE TAXPAYER.
   4.  CREDIT  WHERE  FEDERAL  WORK  OPPORTUNITY TAX CREDIT APPLIES. WITH
 RESPECT TO ANY QUALIFIED EMPLOYEE WHOSE QUALIFIED FIRST-YEAR WAGES UNDER
 SUBDIVISION THREE OF THIS SECTION ALSO CONSTITUTE  QUALIFIED  FIRST-YEAR
 WAGES  FOR  PURPOSES  OF  THE WORK OPPORTUNITY TAX CREDIT FOR VOCATIONAL
 REHABILITATION REFERRALS UNDER SECTION FIFTY-ONE OF THE INTERNAL REVENUE
 CODE, THE AMOUNT OF CREDIT  UNDER  THIS  SECTION  SHALL  BE  THIRTY-FIVE
 PERCENT OF THE FIRST SIX THOUSAND DOLLARS IN QUALIFIED SECOND-YEAR WAGES
 EARNED  BY EACH SUCH EMPLOYEE. "QUALIFIED SECOND-YEAR WAGES" MEANS WAGES
 PAID OR INCURRED BY THE TAXPAYER DURING THE TAXABLE  YEAR  TO  QUALIFIED
 EMPLOYEES  WHICH ARE ATTRIBUTABLE, WITH RESPECT TO ANY SUCH EMPLOYEE, TO
 SERVICES RENDERED DURING THE ONE-YEAR PERIOD BEGINNING  ONE  YEAR  AFTER
 THE EMPLOYEE BEGINS WORK FOR THE TAXPAYER.
   5.  CARRYOVER.  IN  NO  EVENT  SHALL  THE CREDIT UNDER THIS SECTION BE
 ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN  THE
 APPLICABLE MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHTY-THREE OF THIS
 ARTICLE.  IF, HOWEVER, THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SECTION
 FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CRED-
 IT NOT DEDUCTIBLE IN SUCH TAXABLE  YEAR  MAY  BE  CARRIED  OVER  TO  THE
 FOLLOWING  YEAR OR YEARS AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR
 SUCH YEAR OR YEARS.
   6.  COORDINATION  WITH  FEDERAL  WORK  OPPORTUNITY  TAX  CREDIT.   THE
 PROVISIONS  OF  SECTIONS FIFTY-ONE AND FIFTY-TWO OF THE INTERNAL REVENUE
 CODE, AS SUCH SECTIONS APPLIED ON OCTOBER FIRST, NINETEEN HUNDRED  NINE-
 TY-SIX,  THAT  APPLY  TO  THE WORK OPPORTUNITY TAX CREDIT FOR VOCATIONAL
 REHABILITATION REFERRALS SHALL APPLY TO THE CREDIT UNDER THIS SECTION TO
 THE  EXTENT  THAT  SUCH  SECTIONS  ARE  CONSISTENT  WITH  THE   SPECIFIC
 PROVISIONS OF THIS SECTION, PROVIDED THAT IN THE EVENT OF A CONFLICT THE
 PROVISIONS OF THIS SECTION SHALL CONTROL.
   §  2. This act shall take effect immediately, and shall apply to taxa-
 ble years beginning on and after January 1, 2019.