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

5 Co-sponsors

• Fredrick J. Akshar II
• George Amedore
• Terrence P. Murphy
• Thomas F. O'Mara
• Robert Ortt

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 a drug court

Purpose

This bill provides a tax credit for employers who agree to hire individuals 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 50 to provide a tax credit for employers who hire individuals 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 suffering from substance abuse. A total of 3,792 individuals successfully completed drug courts and judicial diversion programs statewide (59% success rate). 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 individuals 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.7668 of 2014

Fiscal implications

To be determined.

Effective date

This act shall take effect on the same date and in the same manner as section 17 of part A of chapter 59 of the laws of 2014 takes effect and shall apply to taxable years beginning on and after January 1, 2016 and shall apply those employees hired after this act shall take effect.