Assembly Bill A10526

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

                                  10526

                          I N  A S S E M B L Y

                              May 31, 2016
                               ___________

Introduced  by  M.  of  A.  ROSENTHAL  --  read once and referred to the
  Committee on Ways and Means

AN ACT to amend the tax law, in relation to a tax credit for  employment
  of  an  individual who has successfully completed a judicial diversion
  program or graduated from a drug court

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  210-B  of the tax law is amended by adding a new
subdivision 49 to read as follows:
  49. CREDIT FOR EMPLOYMENT OF INDIVIDUALS WHO HAVE GRADUATED FROM  DRUG
COURT  OR  HAVE SUCCESSFULLY COMPLETED A JUDICIAL DIVERSION PROGRAM. (A)
ALLOWANCE OF CREDIT. A  TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE
COMPUTED  AS  PROVIDED  IN  THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY
THIS ARTICLE, IF IT EMPLOYS AN INDIVIDUAL WHO HAS  GRADUATED  FROM  DRUG
COURT  OR HAS SUCCESSFULLY COMPLETED A JUDICIAL DIVERSION PROGRAM PURSU-
ANT TO ARTICLE TWO  HUNDRED  SIXTEEN  OF  THE  CRIMINAL  PROCEDURE  LAW,
PROVIDED  THAT SUCH INDIVIDUAL IS EMPLOYED FOR THIRTY-FIVE HOURS OR MORE
PER WEEK AND REMAINS IN THE EMPLOY OF SUCH TAXPAYER  FOR  A  MINIMUM  OF
TWELVE MONTHS.
  (B)  AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL EQUAL
THREE THOUSAND DOLLARS PER  HIRED  INDIVIDUAL  FOR  THE  FIRST  YEAR  OF
EMPLOYMENT  AND  AN  ADDITIONAL  ONE  THOUSAND DOLLARS IF THE INDIVIDUAL
REMAINS IN EMPLOY FOR AN ADDITIONAL TWELVE MONTHS.
  (C) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION
FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE  OF  THIS
SECTION.  IF, HOWEVER, THE AMOUNT OF CREDITS ALLOWED UNDER THIS SUBDIVI-
SION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT  OF
CREDIT  THUS  NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN
OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN  ACCORDANCE  WITH  THE
PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
EON.

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

                                                           LBD06934-02-6

A. 10526                            2

  S  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
of the tax law is amended by adding a new  clause  (xliii)  to  read  as
follows:
  (XLIII) EMPLOYMENT OF INDIVIDUALS   AMOUNT OF CREDIT
  WHO HAVE GRADUATED FROM             UNDER SUBDIVISION
  DRUG COURT OR HAVE                  FORTY-NINE OF SECTION
  SUCCESSFULLY COMPLETED              TWO HUNDRED TEN-B
  A JUDICIAL DIVERSION PROGRAM
  TAX CREDIT UNDER
  SUBSECTION (CCC)
  S  3. Section 606 of the tax law is amended by adding a new subsection
(ccc) to read as follows:
  (CCC) TAX CREDIT FOR EMPLOYMENT OF INDIVIDUALS WHO HAVE GRADUATED FROM
DRUG COURT OR HAVE SUCCESSFULLY COMPLETED A JUDICIAL DIVERSION  PROGRAM.
(1)  ALLOWANCE  OF  CREDIT.  A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE
COMPUTED AS PROVIDED IN THIS SUBDIVISION, AGAINST  THE  TAX  IMPOSED  BY
THIS  ARTICLE,  IF  IT EMPLOYS AN INDIVIDUAL WHO HAS GRADUATED FROM DRUG
COURT OR WHO HAS SUCCESSFULLY COMPLETED  A  JUDICIAL  DIVERSION  PROGRAM
PURSUANT  TO  ARTICLE TWO HUNDRED SIXTEEN OF THE CRIMINAL PROCEDURE LAW,
PROVIDED THAT SUCH INDIVIDUAL IS EMPLOYED FOR THIRTY-FIVE HOURS OR  MORE
PER WEEK AND REMAINS IN THE EMPLOY OF SUCH TAXPAYER FOR TWELVE MONTHS.
  (2)  AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL EQUAL
THREE THOUSAND DOLLARS PER  HIRED  INDIVIDUAL  FOR  THE  FIRST  YEAR  OF
EMPLOYMENT  AND  AN  ADDITIONAL  ONE  THOUSAND DOLLARS IF THE INDIVIDUAL
REMAINS IN EMPLOY FOR AN ADDITIONAL TWELVE MONTHS.
  (3) APPLICATION OF CREDIT. THE CREDIT ALLOWED  UNDER  THIS  SUBSECTION
FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
THAN THE HIGHER OF THE AMOUNT PRESCRIBED IN PARAGRAPHS (C)  AND  (D)  OF
SUBDIVISION  ONE  OF  SECTION  TWO  HUNDRED TEN-B OF THIS CHAPTER.   IF,
HOWEVER, THE AMOUNT OF CREDITS ALLOWED UNDER THIS  SUBDIVISION  FOR  ANY
TAXABLE  YEAR  REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS
NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS  AN  OVERPAYMENT
OF  TAX  TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,  THE
PROVISIONS  OF  SUBSECTION  (C)  OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
  S 4. This act shall take effect immediately and  shall  be  deemed  to
have been in full force and effect on the same date as part A of chapter
59  of  the  laws  of  2014 took effect and shall apply to taxable years
beginning on and after January 1, 2016 and shall apply to those  employ-
ees hired after this act shall take effect.