S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1556--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 15, 2019
                                ___________
 
 Introduced by M. of A. RICHARDSON, CRUZ, ARROYO, EPSTEIN, D'URSO, ASHBY,
   BLAKE,  DICKENS, DeSTEFANO, MORINELLO, JAFFEE, HYNDMAN, BARRON -- read
   once and referred to the Committee on Ways and Means -- recommitted to
   the Committee on Ways and Means in accordance with  Assembly  Rule  3,
   sec.  2  --  committee  discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the tax law, in relation to providing a re-entry employ-
   ment incentive tax credit
 
   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 55 to read as follows:
   55. 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 PARAGRAPH (C) OF 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 TWENTY 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.
              

                                                            LBD04514-02-0

 A. 1556--A                          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; AND
   (III) 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 FIFTEEN 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.
   §  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. (1) 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 PARAGRAPH THREE OF THIS SUBSECTION.
   (2)  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.
   (3) FOR THE PURPOSES OF THIS SUBSECTION, "QUALIFYING INDIVIDUAL" SHALL
 MEAN  AN  INDIVIDUAL  HIRED BY A TAXPAYER ON OR AFTER JANUARY FIRST, TWO
 THOUSAND TWENTY 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; AND
   (III)  RECEIVES  QUALIFIED  WAGES FOR AT LEAST THREE CONTINUOUS MONTHS
 FROM THE TAXPAYER DURING THE TAXABLE YEAR.
   (4) FOR THE PURPOSES OF THIS SUBSECTION, "QUALIFIED WAGES" SHALL  MEAN
 WAGES  PAID  OR  INCURRED BY THE TAXPAYER DURING THE TAXABLE YEAR TO THE

 A. 1556--A                          3
 
 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 FIFTEEN THOUSAND DOLLARS PER YEAR.
   (5)  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.
   § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
 of  the  tax  law  is  amended  by adding a new clause (xlvi) to read as
 follows:
 
 (XLVI) RE-ENTRY EMPLOYMENT           AMOUNT OF CREDIT
 INCENTIVE TAX CREDIT UNDER           UNDER SUBDIVISION
 SUBSECTION (K-1)                     FIFTY-FIVE OF SECTION
                                      TWO HUNDRED TEN-B
 
   § 4. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.