S T A T E O F N E W Y O R K
________________________________________________________________________
1366
2011-2012 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 5, 2011
___________
Introduced by M. of A. JEFFRIES, SCHROEDER, AUBRY, BOYLAND, CAMARA,
JAFFEE, PEOPLES-STOKES, ORTIZ, ROBINSON, COOK, TITUS -- Multi-Spon-
sored by -- M. of A. GOTTFRIED, HOOPER, V. LOPEZ, TOWNS -- 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 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01511-01-1
A. 1366 2
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 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;
A. 1366 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.
A. 1366 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.