What's happening
This bill creates a New York State tax credit for employers who hire individuals in recovery from substance abuse at approved rehabilitation centers.
Why it matters
Encourages workforce reintegration for people in recovery. by providing a financial incentive to employers, which may help reduce stigma and barriers faced by individuals coming out of substance abuse treatment.
Targets long-term employment. by requiring individuals to work at least 180 days or 400 hours before the tax credit applies, incentivizing stable, not just short-term, hiring.
Aligns with federal tax credits but expands benefits. by allowing employers to claim a state credit for a second year of employment if they already use the federal Work Opportunity Tax Credit, potentially extending support for recovery-related employment.
May improve job prospects for a vulnerable population. while helping employers offset costs, potentially leading to broader social benefits such as reduced recidivism, lower public health costs, and stronger local economies.
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Who cares
Headline styles
Tax Credit for Hiring Recovered
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to budget and revenue
- Referred to budget and revenue
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Tax Credit for Hiring Recovering Addicts
In Assembly Committee · Ways And Means · Sponsor Billy Jones
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2020
2019-2020 Regular Sessions
IN SENATE
January 18, 2019
Introduced by Sen. LITTLE -- 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 credit for employment of persons who are in recovery with an office of alcoholism and substance abuse services approved rehabilitation center
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 187-t to read as follows:
§ 187-t. Credit for employment of persons who are in recovery with an office of alcoholism and substance abuse services approved rehabilitation center. 1. Allowance of credit. A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the taxes imposed by this article, other than the taxes imposed by sections one hundred eighty-six-a and one hundred eighty-six-e of this article, for employing within the state a qualified employee. Provided, however, the amount of credit allowed by this section against the tax imposed by section one hundred eighty-four of this article shall be the excess of the credit computed under this section over the amount of credit allowed by this section against the tax imposed by section one hundred eightythree of this article.
2. Qualified employee. A qualified employee is an individual who:
(a) is in recovery with an office of alcoholism and substance abuse services approved rehabilitation center; and
(b) has worked on a full-time basis for the employer who is claiming the credit for at least one hundred eighty days or four hundred hours.
3. Amount of credit. Except as provided in subdivision four of this section, the amount of credit under this section shall be thirty-five percent of the first six thousand dollars in qualified first-year wages earned by each qualified employee. "Qualified first-year wages" means wages paid or incurred by the taxpayer during the taxable year to quali-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02902-01-9
S. 2020 2
fied employees which are attributable, with respect to any such employee, to services rendered during the one-year period beginning with the day the employee begins work for the taxpayer.
4. Credit where federal work opportunity tax credit applies. With respect to any qualified employee whose qualified first-year wages under subdivision three of this section also constitute qualified first-year wages for purposes of the work opportunity tax credit for vocational rehabilitation referrals under section fifty-one of the internal revenue code, the amount of credit under this section shall be thirty-five percent of the first six thousand dollars in qualified second-year wages earned by each such employee. "Qualified second-year wages" means wages paid or incurred by the taxpayer during the taxable year to qualified employees which are attributable, with respect to any such employee, to services rendered during the one-year period beginning one year after the employee begins work for the taxpayer.
5. Carryover. In no event shall the credit under this section be allowed in an amount which will reduce the tax payable to less than the applicable minimum tax fixed by section one hundred eighty-three of this article. If, however, the amount of credit allowable under this section for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years.
6. Coordination with federal work opportunity tax credit. The provisions of sections fifty-one and fifty-two of the internal revenue code, as such sections applied on October first, nineteen hundred ninety-six, that apply to the work opportunity tax credit for vocational rehabilitation referrals shall apply to the credit under this section to the extent that such sections are consistent with the specific provisions of this section, provided that in the event of a conflict the provisions of this section shall control.
§ 2. This act shall take effect immediately, and shall apply to taxable years beginning on and after January 1, 2020.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to a credit for employment of persons who are in recovery with an office of alcoholism and substance abuse services approved rehabilitation center
Purpose
To provide a tax credit for employers to employ persons who are in recovery with an Office of Alcoholism and Substance Abuse Services approved rehabilitation center.
Summary of provisions
Section 1 amends the tax law to add a new section 187-t to create a tax credit for employers who employee persons in certified recovery programs.
Section 2 contains the effective date.
Justification
Across New York State the opioid crisis is having a profound negative effect on our communities. Over the last few years, the state has allo- cated additional funds to help combat this epidemic that has a strong- hold on thousands of New Yorkers. In that time, legislation has been passed to help people suffering with substance use disorder gain access to more treatment and recovery programs.
It is well documented that most people are unable to maintain gainful employment while struggling with addiction. Despite beginning the road to recovery, given their history, the majority of these people are not considered worthy applicants in the workforce. By gaining steady employ- ment during the recovery process, individuals are more likely to complete their recovery and maintain a sober, healthy lifestyle.
Legislative history
2017-18: S.7384/A.8830: Referred Ways & Means; Referred Ways & Means
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.