What's happening
This bill creates a tax credit for employers who hire individuals who have completed a drug court or judicial diversion program.
Why it matters
Encourages employers to hire individuals who have completed drug court or judicial diversion programs. by providing a financial incentive, potentially reducing stigma and supporting the reintegration of people in recovery.
Targets long-term, stable employment. by requiring eligible hires to work at least 35 hours per week and remain employed for a minimum of twelve months to qualify for the tax credit, aiming to promote sustained workforce participation.
Offers a substantial tax benefit. $3,000 for the first year, plus $1,000 for a second year—to offset perceived risks or costs associated with hiring individuals with criminal justice system involvement linked to substance use, which could broaden hiring pools in tight labor markets.
Addresses recidivism and public safety indirectly. by supporting employment opportunities for program graduates, as steady jobs are associated with lower rates of reoffending and better recovery outcomes.
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Tax Credit for Hiring Graduates
Plain English, a few words. Used as the page title.
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History
- Referred to budget and revenue
- Referred to budget and revenue
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3934
2019-2020 Regular Sessions
IN SENATE
February 21, 2019
Introduced by Sens. SEWARD, AKSHAR, AMEDORE, ANTONACCI, GRIFFO, MARTI- NEZ, ORTT, RANZENHOFER -- 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 a drug court
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 210-B of the tax law is amended by adding a new subdivision 53 to read as follows:
53. 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 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 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 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01846-02-9
S. 3934 2
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.
§ 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xliv) to read as follows:
(xliv) Employment of individuals Amount of credit
who have graduated from under subdivision
drug court or have fifty-three of section
successfully completed two hundred ten-B
a judicial diversion program
tax credit under
subsection (jjj)
§ 3. Section 606 of the tax law is amended by adding a new subsection (jjj) to read as follows:
(jjj) 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 subdivision, 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, 2020 and shall apply to those employees hired after this act shall take effect.
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 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 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 50 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 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 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.2076 of 2017-2018; S.2346 of 2015-16; 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, 2020 and shall apply those employees hired after this act shall take effect.
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