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.