NY State Senate Bill 2023-S2198

Senate Bill S2198

2023-2024 Legislative Session

Relates to a tax credit for employment of an individual who has successfully completed a judicial diversion substance abuse treatment program or graduated from drug court

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Current Bill Status - In Senate Committee Budget And Revenue Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to budget and revenue
Jan 19, 2023	referred to budget and revenue

co-Sponsors

2023-S2198 (ACTIVE) - Details

Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§210-B & 606, Tax L
Versions Introduced in 2021-2022 Legislative Session:: S5358

2023-S2198 (ACTIVE) - Summary

Establishes a tax credit for employment of an individual who has successfully completed a judicial diversion substance abuse treatment program or graduated from drug court.

2023-S2198 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2198

SPONSOR: OBERACKER
 
TITLE OF BILL:

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 drug court

 
PURPOSE:

This bill provides a tax credit for employers who agree to hire individ-
uals who have either graduated from drug court or have successfully
completed a judicial diversion program.

 
SUMMARY OF PROVISIONS:

Section one of the bill amends section 210-b of the tax law by adding a
new subdivision 59 to provide a tax credit for employers who hire indi-
viduals who have graduated from drug court or have successfully
completed a judicial diversion program, provided that the individual
works at least 35 hour per week and has been employed for at least one

year. The credit would be three thousand dollars per hired individual
for the first year the individual is employed and one thousand dollars
for the second year.

Sections two and three make corresponding changes to section 606 of the
tax law.

Section 4 is the effective date.

 
JUSTIFICATION:

Drug courts and judicial diversion programs have proven to be an
extremely effective alternative to incarceration for individuals suffer-
ing from substance abuse. A total of 30,000 individuals successfully
completed drug courts and judicial diversion programs statewide. Through
drug court/judicial diversion, individuals are closely supervised and
receive intensive treatment for their addictions. Both programs have
proven to reduce costs, reduce crime rates, reunite families and,
perhaps most importantly, save lives.

The genesis for this proposal came directly out of one of the forums
held by the New York State Senate Task Force on Heroin and Opioid
Addiction. For individuals in the recovery community, it is important
that support services are in place when their treatment is completed so
that they may begin to rebuild their lives. A critical piece of the
rebuilding process is the ability to find gainful employment.  Getting
individuals in recovery back into the workforce will help them to become
productive members of society, which will in turn make them less likely
to relapse. One of the challenges, however, is convincing employers to
take a chance on someone who has a history of addiction and hire indi-
viduals in recovery. A tax credit will provide the necessary incentive
to employers to hire individuals in recovery who have successfully
completed either a drug court or judicial diversion program.

 
LEGISLATIVE HISTORY:

S.5358 of 2020-2021
S. 2076 of 2017-2018

S.2346 of 2015-2016

S.7668 of 2014 -2015

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to taxable years
beginning on and after January 1, 2024 and shall apply to those employ-
ees hired after this act shall take effect.

2023-S2198 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2198
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced by Sen. OBERACKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 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 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 59 to read as follows:
   59.  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,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06015-01-3

 S. 2198                             2
 
 HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
 Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
 EON.
   §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a new clause (l) to read as follows:
   (L) EMPLOYMENT OF INDIVIDUALS       AMOUNT OF CREDIT
   WHO HAVE GRADUATED FROM             UNDER SUBDIVISION
   DRUG COURT OR HAVE                  FIFTY-NINE OF SECTION
   SUCCESSFULLY COMPLETED              TWO HUNDRED TEN-B
   A JUDICIAL DIVERSION PROGRAM
   TAX CREDIT UNDER
   SUBSECTION (BBB)
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (bbb) to read as follows:
   (BBB) 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 SUBSECTION, 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.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2024 and shall  apply  to  those
 employees hired after this act shall take effect.

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Senate Bill S2198

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Sponsored By

Peter Oberacker