§ 32.38 The recovery tax credit program.

(a) Authorization. The commissioner is authorized to and shall
establish and administer the recovery tax credit program to provide tax
incentives to certified employers for employing eligible individuals in
recovery from a substance use disorder in part-time and full-time
positions in the state. The commissioner is authorized to allocate up to
two million dollars of tax credits annually for the recovery tax credit
program beginning in the year two thousand twenty.

(b) Definitions. 1. The term "certified employer" means an employer
that has received a certificate of tax credit from the commissioner
after the commissioner has determined that the employer:

(i) provides a recovery supportive environment for their employees
evidenced by a formal working relationship with a local recovery or
treatment provider certified by the office to provide support for
employers including any necessary assistance in the hiring process of
eligible individuals in recovery from a substance use disorder and
training for employers or supervisors; and

(ii) fulfills the eligibility criteria set forth in this section and
by the commissioner to participate in the recovery tax credit program
established in this section.

2. The term "eligible individual" means an individual with a substance
use disorder as that term is defined in section 1.03 of this chapter who
is in a state of wellness where there is an abatement of signs and
symptoms that characterize active addiction and has demonstrated to the
qualified employer's satisfaction, pursuant to guidelines established by
the office, that he or she has completed a course of treatment or is
currently in receipt of treatment for such substance use disorder. A
relapse in an individual's state of wellness shall not make the
individual ineligible, so long as such individual shows a continued
commitment to recovery that aligns with an individual's relapse
prevention plan, discharge plan, and/or recovery plan.

(c) Application and approval process. 1. To participate in the program
established by this section, an employer must, in a form prescribed by
the commissioner, apply annually to the office by January fifteenth to
claim credit based on eligible individuals employed during the preceding
calendar year. As part of such application, an employer must:

(i) Agree to allow the department of taxation and finance to share its
tax information with the office of alcoholism and substance abuse
services. However, any information shared because of this agreement
shall not be available for disclosure or inspection under the state
freedom of information law.

(ii) Allow the office of alcoholism and substance abuse services and
its agents access to limited and specific information necessary to
monitor compliance with program eligibility requirements. Such
information shall be confidential and only used for the stated purpose
of this section.

(iii) Demonstrate that the employer has satisfied program eligibility
requirements and provided all the information necessary, including the
number of hours worked by any eligible individual, for the commissioner
to compute an actual amount of credit allowed.

2. (i) After reviewing the application and finding it sufficient, the
commissioner shall issue a certificate of tax credit by March
thirty-first. Such certificate shall include, but not be limited to, the
name and employer identification number of the certified employer, the
amount of credit that the certified employer may claim, and any other
information the commissioner of taxation and finance determines is
necessary.

(ii) In determining the amount of credit that any employer may claim,
the commissioner shall review all claims submitted for credit by
employers and, to the extent that the total amount claimed by employers
exceeds the amount allocated for the program in that calendar year,
shall issue credits on a pro-rata basis corresponding to each claimant's
share of the total claimed amount.

(d) Eligibility. A certified employer shall be entitled to a tax
credit equal to the product of one dollar and the number of hours worked
by each eligible individual during such eligible individual's period of
employment. The credit shall not be allowed unless the eligible
individual has worked in state for a minimum of five hundred hours for
the certified employer, and the credit cannot exceed two thousand
dollars per eligible individual employed by the certified employer in
the state. The certified employer may claim a credit for each eligible
employee starting on the day the employee is hired and ends on December
thirty-first of the immediately succeeding calendar year or the last day
of the employee's employment by the certified employer, whichever comes
first. If an employee has worked in excess of five hundred hours between
the date of hiring and December thirty-first of that year, an employer
can elect to compute and claim a credit for such employee in that year
based on the hours worked by December thirty-first. Alternatively, the
employer may elect to include such individual in the computation of the
credit in the year immediately succeeding the year in which the employee
was hired. In such case, the credit shall be computed on the basis of
all hours worked by such eligible individual from the date of hire to
the earlier of the last day of employment or December thirty-first of
the succeeding year. However, in no event may an employee generate
credit for hours worked in excess of two thousand hours. An employer may
claim credit only once with respect to any eligible individual and may
not aggregate hours of two or more employees to reach the minimum number
of hours.

(e) Duties of the commissioner. The commissioner shall annually
provide to the commissioner of the department of taxation and finance
information about the program including, but not limited to, the number
of certified employers then participating in the program, unique
identifying information for each certified employer, the number of
eligible individuals employed by each certified employer, unique
identifying information for each eligible individual employed by the
certified employers, the number of hours worked by such eligible
individuals, the total dollar amount of claims for credit, and the
dollar amount of credit granted to each certified employer.

(f) Certified employer's taxable year. If the certified employer's
taxable year is a calendar year, the employer shall be entitled to claim
the credit as shown on the certificate of tax credit on the calendar
year return for which the certificate of tax credit was issued. If the
certified employer's taxable year is a fiscal year, the employer shall
be entitled to claim the credit as shown on the certificate of tax
credit on the return for the fiscal year that includes the last day of
the calendar year covered by the certificate of tax credit.

(g) Cross references. For application of the credit provided for in
this section, see the following provisions of the tax law:

1. Article 9-A: Section 210-B, subdivision 53.

2. Article 22: Section 606, subsection (jjj).

3. Article 33: Section 1511, subdivision (dd).