S T A T E O F N E W Y O R K
________________________________________________________________________
S. 243 A. 330
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
IN ASSEMBLY -- Introduced by M. of A. JEFFRIES -- read once and referred
to the Committee on Ways and Means
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 certain
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 41 to read as follows:
41. 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 NINE 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 TEN WHO:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00071-01-9
S. 243 2 A. 330
(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;
(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 NINE 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 TEN 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
S. 243 3 A. 330
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 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, as amended by section 2 of part ZZ-1 of chapter 57 of
the laws of 2008, is amended to read as follows:
(B) shall be treated as the owner of a new business with respect to
such share if the corporation qualifies as a new business pursuant to
paragraph (j) of subdivision twelve of section two hundred ten of this
chapter.
The corporation's credit base under
section two hundred ten or section
With respect to the following fourteen hundred fifty-six of this
credit under this section: chapter is:
Investment tax credit Investment credit base
under subsection (a) or qualified
rehabilitation
expenditures under
subdivision twelve of
section two hundred ten
Empire zone Cost or other basis
investment tax credit under subdivision
under subsection (j) twelve-B
of section two hundred
ten
Empire zone Eligible wages under
wage tax credit subdivision nineteen of
under subsection (k) section two hundred ten
or subsection (e) of
section fourteen hundred
fifty-six
S. 243 4 A. 330
Empire zone Qualified investments
capital tax credit and contributions under
under subsection (l) subdivision twenty of
section two hundred ten
or subsection (d) of
section fourteen hundred
fifty-six
Agricultural property tax Allowable school
credit under subsection (n) district property taxes under
subdivision twenty-two of
section two hundred ten
Credit for employment Qualified first-year wages or
of persons with dis- qualified second-year wages
abilities under under subdivision
subsection (o) twenty-three of section
two hundred ten
or subsection (f)
of section fourteen
hundred fifty-six
Employment incentive Applicable investment credit
credit under subsec- base under subdivision
tion (a-1) twelve-D of section two
hundred ten
Empire zone Applicable investment
employment credit under sub-
incentive credit under division twelve-C
subsection (j-1) of section two hundred ten
Alternative fuels credit Cost under subdivision
under subsection (p) twenty-four of section two
hundred ten
Qualified emerging Applicable credit base
technology company under subdivision twelve-E
employment credit of section two hundred ten
under subsection (q)
Qualified emerging Qualified investments under
technology company subdivision twelve-F of
capital tax credit section two hundred ten
under subsection (r)
Credit for purchase of an Cost of an automated
automated external defibrillator external defibrillator under
under subsection (s) subdivision twenty-five of
section two hundred ten
or subsection (j) of section
fourteen hundred fifty-six
Low-income housing Credit amount under
credit under subsection (x) subdivision thirty
of section two hundred ten or
S. 243 5 A. 330
subsection (l) of section
fourteen hundred fifty-six
Credit for transportation Amount of credit under sub-
improvement contributions division thirty-two of section
under subsection (z) two hundred ten or subsection
(n) of section fourteen
hundred fifty-six
QEZE credit for real property Amount of credit under
taxes under subsection (bb) subdivision twenty-seven of
section two hundred ten or
subsection (o) of section
fourteen hundred fifty-six
QEZE tax reduction credit Amount of benefit period
under subsection (cc) factor, employment increase factor
and zone allocation
factor (without regard
to pro ration) under
subdivision twenty-eight of
section two hundred ten or
subsection (p) of section
fourteen hundred fifty-six
and amount of tax factor
as determined under
subdivision (f) of section sixteen
Green building credit Amount of green building credit
under subsection (y) under subdivision thirty-one
of section two hundred ten
or subsection (m) of section
fourteen hundred fifty-six
Credit for long-term Qualified costs under
care insurance premiums subdivision twenty-five-a of
under subsection (aa) section two hundred ten
or subsection (k) of section
fourteen hundred fifty-six
Brownfield redevelopment Amount of credit
credit under subsection under subdivision
(dd) thirty-three of section
two hundred ten
or subsection (q) of
section fourteen hundred
fifty-six
Remediated brownfield Amount of credit under
credit for real property subdivision thirty-four
taxes for qualified of section two hundred
sites under subsection ten or subsection (r) of
(ee) section fourteen hundred
fifty-six
S. 243 6 A. 330
Environmental Amount of credit under
remediation subdivision thirty-five of
insurance credit under section two hundred
subsection (ff) ten or subsection
(s) of section
fourteen hundred
fifty-six
Empire state film production Amount of credit for qualified
credit under subsection (gg) production costs in production
of a qualified film under
subdivision thirty-six of
section two hundred ten
Qualified emerging Qualifying expenditures and
technology company facilities, development activities under
operations and training credit subdivision twelve-G of section
under subsection (nn) two hundred ten
Security training tax Amount of credit
credit under under subdivision thirty-seven
subsection (ii) of section two hundred ten or
under subsection (t) of
section fourteen hundred fifty-six
Credit for qualified fuel Amount of credit under
cell electric generating equipment subdivision thirty-seven
expenditures under subsection (g-2) of section two hundred ten
or subsection (t) of
section fourteen hundred
fifty-six
Empire state commercial production Amount of credit for qualified
credit under subsection (jj) production costs in production
of a qualified commercial under
subdivision thirty-eight of sec-
tion two hundred ten
Biofuel production Amount of credit
tax credit under under subdivision
subsection (jj) thirty-eight of
section two hundred ten
RE-ENTRY EMPLOYMENT INCENTIVE AMOUNT OF CREDIT
TAX CREDIT UNDER SUBSECTION UNDER SUBDIVISION
(K-1) FORTY-ONE OF SECTION
TWO HUNDRED TEN
Clean heating fuel credit Amount of credit under
under subsection (mm) subdivision thirty-nine of
section two hundred ten
Credit for rehabilitation Amount of credit under
of historic properties subdivision forty of
under subsection (oo) subsection two hundred ten
S. 243 7 A. 330
Credit for companies who Amount of credit under
provide transportation subdivision forty of
to individuals section two hundred ten
with disabilities
under subsection (oo)
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, 2010, 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 41 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, 2010. A taxpayer that employs one or more such
designated qualified individuals on or after January 1, 2010 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 41 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 act 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, 2013.
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 the taxable years beginning on or after January 1, 2010 and
ending not later than December 31, 2012; provided further that sections
one, two and three of this act shall expire, and subdivision (a) of
section four of this act shall expire and be deemed repealed December
31, 2012, provided, further, that subdivision (b) of section four of
this act shall expire and be deemed repealed March 31, 2013; provided,
further, that the empire state film production credit under subsection
(gg), the empire state commercial production credit under subsection
(jj) and the credit for companies who provide transportation to individ-
uals with disabilities under subsection (oo) of section 606 of the tax
law contained in section three of this act shall expire on the same date
as provided in section 9 of part P of chapter 60 of the laws of 2004, as
amended, section 10 of part V of chapter 62 of the laws of 2006, as
amended and section 5 of chapter 522 of the laws of 2006, as amended,
respectively.