Establishes a re-entry employment incentive tax credit

2 Co-sponsors

• Ruth Hassell-Thompson
• Bill Perkins

BILL NUMBER:S1383A

Title of bill

An act to amend the tax law, in relation to providing a re-entry employment incentive tax credit; and providing for the repeal of such provisions upon expiration thereof

Purpose

This bill is intended to help formerly incarcerated men and women obtain meaningful employment upon their release from prison/jail by offering employers who hire them a tax credit.

Summary of provisions

The bill establishes the Re-Entry Employment Incentive Tax Credit pilot project. Under the legislation, a tax credit of up to $5,000 would be available to employers that hire qualifying individuals who are designated by the department of labor to participate in the pilot project. A qualifying individual is defined as a person who is first employed after the effective date of this act, and who has been released from a state correctional facility in the last five years, convicted of a felony in the last five years, or serving a period of parole, probation or post release supervision, and who resides in New York State, and receives wages which are 140 percent of the New York State minimum wage. The bill also requires the department of labor to report to the legislature on the effectiveness of the tax credit in promoting job opportunities for individuals who participate in the pilot project.

Justification

Employment is one of major barriers to the successful re-entry of formerly incarcerated individuals. However, studies show that employment is a major factor in reducing recidivism. Therefore, it is important that New York promote policies to assist formerly incarcer- ated individuals and those with criminal records to obtain gainful employment. This bill will help to address this issue by giving employ create more job opportunities.

LEGISLATIVE HISTORY:; 2009-2010: S.243-A/A.330-A - Referred to Senate Investigations and Government operations Committee/Referred to Assembly Ways and Means Committee 2011-2012: S.310 - Died in Committee; 2013: Died in Committee

Effective date

This act shall take effect immediately and shall apply to taxable years beginning on and after January 1, 2015 and ending December 31, 2017, except for the reporting requirement which will be in effect until March 31, 2018.