STATE OF NEW YORK ________________________________________________________________________ 6121 2019-2020 Regular Sessions IN SENATE May 16, 2019 ___________ Introduced by Sen. MONTGOMERY -- 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 providing a re-entry employ- ment incentive tax credit; and providing for the repeal of such provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 210-b of the tax law is amended by adding a new 2 subdivision 54 to read as follows: 3 54. Re-entry employment incentive tax credit. (a) A taxpayer shall be 4 allowed a credit, to be computed as hereinafter provided, against the 5 tax imposed by this article in the amount prescribed by this subdivision 6 where such taxpayer employs one or more qualifying individuals desig- 7 nated pursuant to subdivision (a) of section four of the chapter of the 8 laws of two thousand nineteen that added this subdivision. 9 (b) The amount of the credit shall be as follows for each qualifying 10 individual employed by the taxpayer: 11 (i) fifty percent of the qualified wages in the first year of employ- 12 ment; 13 (ii) forty percent of qualified wages in the second year of employ- 14 ment; and 15 (iii) thirty percent of qualified wages in the third year of employ- 16 ment. 17 (c) For the purposes of this subdivision, "qualifying individual" 18 shall mean an individual hired by a taxpayer on or after January first, 19 two thousand twenty who: 20 (i) has been convicted of a felony in this state in the last five 21 years, has been released from a correctional facility as defined in 22 subdivision four of section two of the correction law in the last five 23 years or is serving a period of post-release supervision, parole or 24 probation for the conviction of a felony, provided that an individual EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11900-01-9

S. 6121 2 1 shall be considered a qualified individual for each of the first four 2 years of employment if hired by the taxpayer within the time period 3 specified in this subparagraph; 4 (ii) resides in this state; 5 (iii) receives wages which are at least one hundred forty percent of 6 the state minimum wage; and 7 (iv) receives qualified wages for at least three continuous months 8 from the taxpayer during the taxable year. 9 (d) For the purposes of this subdivision, "qualified wages" shall mean 10 wages paid or incurred by the taxpayer during the taxable year to the 11 qualified individual, provided that the amount of qualified wages which 12 may be taken into account when calculating the credit pursuant to this 13 subdivision shall not exceed ten thousand dollars per year. 14 (e) Notwithstanding any provision of law to the contrary, the credit 15 and carryover of such credit allowed under this subdivision for any 16 taxable years shall not, in the aggregate, reduce the tax due for such 17 year to less than the amount prescribed in paragraph (d) of subdivision 18 one of section two hundred ten of this article, any amount of credit or 19 carryover of such credit thus not deductible in such taxable year may be 20 carried over to the following year or years and may be deducted from the 21 tax for such year or years. In addition, the amount of such credit, and 22 carryovers of such credit to the taxable year, deducted from the tax 23 otherwise due may not, in the aggregate, exceed fifty percent of the tax 24 imposed under section two hundred nine of this article computed without 25 regard to any credit provided by this section. 26 § 2. Section 606 of the tax law is amended by adding a new subsection 27 (k-1) to read as follows: 28 (k-1) Re-entry employment incentive tax credit. (a) A taxpayer shall 29 be allowed a credit, to be computed as hereinafter provided, against the 30 tax imposed by this article in the amount prescribed by this subsection 31 where such taxpayer employs one or more qualifying individuals desig- 32 nated pursuant to subdivision (a) of section four of the chapter of the 33 laws of two thousand nineteen that added this subsection. 34 (b) The amount of the credit shall be as follows for each qualifying 35 individual employed by the taxpayer: 36 (i) Fifty percent of the qualified wages in the first year of employ- 37 ment; 38 (ii) Forty percent of qualified wages in the second year of employ- 39 ment; and 40 (iii) Thirty percent of qualified wages in the third year of employ- 41 ment. 42 (c) For the purposes of this subsection, "qualifying individual" shall 43 mean an individual hired by a taxpayer on or after January first, two 44 thousand twenty who: 45 (i) has been convicted of a felony in this state in the last five 46 years, has been released from a correctional facility as defined in 47 subdivision four of section two of the correction law in the last five 48 years or is serving a period of post-release supervision, parole or 49 probation for the conviction of a felony, provided that an individual 50 shall be considered a qualified individual for each of the first four 51 years of employment if hired by the taxpayer within the time period 52 specified in this subparagraph; 53 (ii) resides in this state; 54 (iii) receives wages which are at least one hundred forty percent of 55 the state minimum wage; and

S. 6121 3 1 (iv) receives qualified wages for at least three continuous months 2 from the taxpayer during the taxable year. 3 (d) For the purposes of this subsection, "qualified wages" shall mean 4 wages paid or incurred by the taxpayer during the taxable year to the 5 qualified individual, provided that the amount of qualified wages which 6 may be taken into account when calculating the credit pursuant to this 7 subsection shall not exceed ten thousand dollars per year. 8 (e) Notwithstanding any provision of law to the contrary, if the 9 amount of the credit and carryovers of such credit allowed under this 10 subsection for any taxable year shall exceed the taxpayer's tax for such 11 year, any amount of credit or carryovers of such credit thus not deduct- 12 ible in such taxable year may be carried over to the following year or 13 years and may be deducted from the tax for such year or years. In addi- 14 tion, the amount of such credit, and carryovers of such credit to the 15 taxable year, deducted from the tax otherwise due may not, in the aggre- 16 gate, exceed fifty percent of the tax imposed under section six hundred 17 one of this part computed without regard to any credit provided for by 18 this section. 19 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 20 of the tax law is amended by adding a new clause (xlv) to read as 21 follows: 22 (xlv) Re-entry employment Amount of credit 23 incentive tax credit under under subdivision 24 subsection (k-1) fifty-four of section 25 two hundred ten-b 26 § 4. Re-entry employment incentive tax credit pilot project. (a) 27 Notwithstanding any inconsistent provision of law, the commissioner of 28 labor, or his or her designee, shall, before January 1, 2020, consult 29 with The Fortune Society to identify and designate 100 formerly incar- 30 cerated qualified individuals, as such term is defined in paragraph (c) 31 of subdivision 54 of section 210-b of the tax law, to participate in the 32 pilot project established by this section for a period of three years 33 beginning on January 1, 2020. A taxpayer that employs one or more such 34 designated qualified individuals on or after January 1, 2020 shall be 35 allowed a credit, against the tax imposed by article 9-A or article 22 36 of the tax law in the amount prescribed by subdivision 54 of section 37 210-b of the tax law or subsection (k-1) of section 606 of the tax law 38 as applicable. The commissioner of labor and the commissioner of taxa- 39 tion and finance shall promulgate all necessary rules and regulations to 40 implement the re-entry employment incentive tax credit pilot project 41 established by this section. 42 (b) Further, the commissioner of labor, in consultation with the 43 Center for NuLeadership on Urban Solutions at Medgar Evers College at 44 the City University of New York, shall produce a report on the effec- 45 tiveness of the pilot project established by this section in creating 46 employment opportunities for persons with criminal convictions. Such 47 report shall be submitted to the governor, temporary president of the 48 senate, speaker of the assembly and the chairpersons of the senate crime 49 victims, crime and correction committee, assembly correction committee, 50 senate codes committee, assembly codes committee, senate finance commit- 51 tee and assembly ways and means committee on or before March 31, 2023. 52 § 5. This act shall take effect immediately; provided, however, that 53 the credits established by sections one, two and three of this act shall 54 apply to taxable years beginning on or after January 1, 2020 and ending

S. 6121 4 1 not later than December 31, 2022; provided further that sections one, 2 two and three of this act shall expire and be deemed repealed, and 3 subdivision (a) of section four of this act shall expire and be deemed 4 repealed December 31, 2022, provided, further, that the section heading 5 and subdivision (b) of section four of this act shall expire and be 6 deemed repealed March 31, 2023.

Provides a re-employment tax credit

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