What's happening
This bill creates a temporary tax credit for employers who hire and retain formerly incarcerated individuals in New York State.
Why it matters
Targets a specific population. The credit only applies to employers who hire individuals convicted of a felony in New York State within the past five years, or those recently released from incarceration or under supervision, meaning it is narrowly focused on supporting reentry into the workforce for those facing the highest barriers.
Incentivizes sustained employment. The tax credit is structured to reward employers more for retaining formerly incarcerated employees over multiple years (50% of wages in year 1, 40% in year 2, 30% in year 3), encouraging longer-term hiring rather than short-term token employment.
Sets wage and duration requirements. To qualify, employers must pay at least 140% of the state minimum wage and employ individuals for at least three continuous months, ensuring the jobs created are more likely to be stable and pay above poverty level, aiming for genuine reintegration rather than precarious employment.
Pilot program and evaluation. The bill launches as a limited pilot project (capped at 100 individuals) and mandates a detailed report on its effectiveness, allowing lawmakers to assess real-world impacts before considering statewide expansion or permanent adoption.
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Who cares
Employers hiring designated participants
The bill would offer tax credits of 50%, 40% and 30% of up to $10,000 in annual qualified wages over the first three years of employment.
Formerly incarcerated New Yorkers
The pilot would designate 100 eligible participants whose employers could claim credits for jobs paying at least 140% of the state minimum wage and lasting at least three continuous months during the tax year.
Department of Labor, Department of Taxation and Finance and The Fortune Society
Labor would consult with The Fortune Society to select participants, and both departments would issue rules to implement the pilot.
Center for NuLeadership on Urban Solutions at Medgar Evers College
Labor would consult with the center on a report evaluating the pilot’s effectiveness in creating employment opportunities for people with criminal convictions.
Headline styles
Tax Credit for Hiring Ex-Offenders
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
Full text
4 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
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 employment 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 Assembly, do enact as follows:
Section 1. Section 210-b of the tax law is amended by adding a new subdivision 54 to read as follows:
54. Re-entry employment incentive tax credit. (a) A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article in the amount prescribed by this subdivision where such taxpayer employs one or more qualifying individuals designated pursuant to subdivision (a) of section four of the chapter of the laws of two thousand nineteen that added this subdivision.
(b) The amount of the credit shall be as follows for each qualifying individual employed by the taxpayer:
(i) fifty percent of the qualified wages in the first year of employment;
(ii) forty percent of qualified wages in the second year of employment; and
(iii) thirty percent of qualified wages in the third year of employment.
(c) For the purposes of this subdivision, "qualifying individual" shall mean an individual hired by a taxpayer on or after January first, two thousand twenty who:
(i) has been convicted of a felony in this state in the last five years, has been released from a correctional facility as defined in subdivision four of section two of the correction law in the last five years or is serving a period of post-release supervision, parole or 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
shall be considered a qualified individual for each of the first four years of employment if hired by the taxpayer within the time period specified in this subparagraph;
(ii) resides in this state;
(iii) receives wages which are at least one hundred forty percent of the state minimum wage; and
(iv) receives qualified wages for at least three continuous months from the taxpayer during the taxable year.
(d) For the purposes of this subdivision, "qualified wages" shall mean wages paid or incurred by the taxpayer during the taxable year to the qualified individual, provided that the amount of qualified wages which may be taken into account when calculating the credit pursuant to this subdivision shall not exceed ten thousand dollars per year.
(e) Notwithstanding any provision of law to the contrary, the credit and carryover of such credit allowed under this subdivision for any taxable years shall not, in the aggregate, reduce the tax due for such year to less than the amount prescribed in paragraph (d) of subdivision one of section two hundred ten of this article, any amount of credit or carryover of such credit thus not deductible in such taxable year may be carried over to the following year or years and may be deducted from the tax for such year or years. In addition, the amount of such credit, and carryovers of such credit to the taxable year, deducted from the tax otherwise due may not, in the aggregate, exceed fifty percent of the tax imposed under section two hundred nine of this article computed without regard to any credit provided by this section.
§ 2. Section 606 of the tax law is amended by adding a new subsection (k-1) to read as follows:
(k-1) Re-entry employment incentive tax credit. (a) A taxpayer shall be allowed a credit, to be computed as hereinafter provided, against the tax imposed by this article in the amount prescribed by this subsection where such taxpayer employs one or more qualifying individuals designated pursuant to subdivision (a) of section four of the chapter of the laws of two thousand nineteen that added this subsection.
(b) The amount of the credit shall be as follows for each qualifying individual employed by the taxpayer:
(i) Fifty percent of the qualified wages in the first year of employment;
(ii) Forty percent of qualified wages in the second year of employment; and
(iii) Thirty percent of qualified wages in the third year of employment.
(c) For the purposes of this subsection, "qualifying individual" shall mean an individual hired by a taxpayer on or after January first, two thousand twenty who:
(i) has been convicted of a felony in this state in the last five years, has been released from a correctional facility as defined in subdivision four of section two of the correction law in the last five years or is serving a period of post-release supervision, parole or probation for the conviction of a felony, provided that an individual shall be considered a qualified individual for each of the first four years of employment if hired by the taxpayer within the time period specified in this subparagraph;
(ii) resides in this state;
(iii) receives wages which are at least one hundred forty percent of the state minimum wage; and
S. 6121 3
(iv) receives qualified wages for at least three continuous months from the taxpayer during the taxable year.
(d) For the purposes of this subsection, "qualified wages" shall mean wages paid or incurred by the taxpayer during the taxable year to the qualified individual, provided that the amount of qualified wages which may be taken into account when calculating the credit pursuant to this subsection shall not exceed ten thousand dollars per year.
(e) Notwithstanding any provision of law to the contrary, if the amount of the credit and carryovers of such credit allowed under this subsection for any taxable year shall exceed the taxpayer's tax for such year, any amount of credit or carryovers of such credit thus not deductible in such taxable year may be carried over to the following year or years and may be deducted from the tax for such year or years. In addition, the amount of such credit, and carryovers of such credit to the taxable year, deducted from the tax otherwise due may not, in the aggregate, exceed fifty percent of the tax imposed under section six hundred one of this part computed without regard to any credit provided for by this section.
§ 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xlv) to read as follows:
(xlv) Re-entry employment Amount of credit incentive tax credit under under subdivision subsection (k-1) fifty-four of section
two hundred ten-b
§ 4. Re-entry employment incentive tax credit pilot project. (a) Notwithstanding any inconsistent provision of law, the commissioner of labor, or his or her designee, shall, before January 1, 2020, consult with The Fortune Society to identify and designate 100 formerly incarcerated qualified individuals, as such term is defined in paragraph (c) of subdivision 54 of section 210-b of the tax law, to participate in the pilot project established by this section for a period of three years beginning on January 1, 2020. A taxpayer that employs one or more such designated qualified individuals on or after January 1, 2020 shall be allowed a credit, against the tax imposed by article 9-A or article 22 of the tax law in the amount prescribed by subdivision 54 of section 210-b of the tax law or subsection (k-1) of section 606 of the tax law as applicable. The commissioner of labor and the commissioner of taxation and finance shall promulgate all necessary rules and regulations to implement the re-entry employment incentive tax credit pilot project established by this section.
(b) Further, the commissioner of labor, in consultation with the Center for NuLeadership on Urban Solutions at Medgar Evers College at the City University of New York, shall produce a report on the effectiveness of the pilot project established by this section in creating employment opportunities for persons with criminal convictions. Such report shall be submitted to the governor, temporary president of the senate, speaker of the assembly and the chairpersons of the senate crime victims, crime and correction committee, assembly correction committee, senate codes committee, assembly codes committee, senate finance committee and assembly ways and means committee on or before March 31, 2023.
§ 5. This act shall take effect immediately; provided, however, that the credits established by sections one, two and three of this act shall apply to taxable years beginning on or after January 1, 2020 and ending
S. 6121 4
not later than December 31, 2022; provided further that sections one, two and three of this act shall expire and be deemed repealed, and subdivision (a) of section four of this act shall expire and be deemed repealed December 31, 2022, provided, further, that the section heading and subdivision (b) of section four of this act shall expire and be deemed repealed March 31, 2023.
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 providing a re-entry employ- ment 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 desig- nated 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 incarcerated individ- uals 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.