STATE OF NEW YORK ________________________________________________________________________ 3376 2021-2022 Regular Sessions IN ASSEMBLY January 26, 2021 ___________ Introduced by M. of A. RICHARDSON, CRUZ, EPSTEIN, ASHBY, DICKENS, DeSTE- FANO, MORINELLO, HYNDMAN, BARRON -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law, in relation to providing a re-entry employ- ment incentive tax credit 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 55 to read as follows: 3 55. 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 paragraph (c) of this subdivision. 8 (b) The amount of the credit shall be as follows for each qualifying 9 individual employed by the taxpayer: 10 (i) fifty percent of the qualified wages in the first year of employ- 11 ment; 12 (ii) forty percent of qualified wages in the second year of employ- 13 ment; and 14 (iii) thirty percent of qualified wages in the third year of employ- 15 ment. 16 (c) For the purposes of this subdivision, "qualifying individual" 17 shall mean an individual hired by a taxpayer on or after January first, 18 two thousand twenty-one who: 19 (i) has been convicted of a felony in this state in the last five 20 years, has been released from a correctional facility as defined in 21 subdivision four of section two of the correction law in the last five 22 years or is serving a period of post-release supervision, parole or 23 probation for the conviction of a felony, provided that an individual 24 shall be considered a qualified individual for each of the first four EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04832-01-1

A. 3376 2 1 years of employment if hired by the taxpayer within the time period 2 specified in this subparagraph; 3 (ii) resides in this state; and 4 (iii) receives qualified wages for at least three continuous months 5 from the taxpayer during the taxable year. 6 (d) For the purposes of this subdivision, "qualified wages" shall mean 7 wages paid or incurred by the taxpayer during the taxable year to the 8 qualified individual, provided that the amount of qualified wages which 9 may be taken into account when calculating the credit pursuant to this 10 subdivision shall not exceed fifteen thousand dollars per year. 11 (e) Notwithstanding any provision of law to the contrary, the credit 12 and carryover of such credit allowed under this subdivision for any 13 taxable years shall not, in the aggregate, reduce the tax due for such 14 year to less than the higher of the amounts prescribed in paragraphs (c) 15 and (d) of subdivision one of this section, any amount of credit or 16 carryover of such credit thus not deductible in such taxable year may be 17 carried over to the following year or years and may be deducted from the 18 tax for such year or years. In addition, the amount of such credit, and 19 carryovers of such credit to the taxable year, deducted from the tax 20 otherwise due may not, in the aggregate, exceed fifty percent of the tax 21 imposed under section two hundred nine of this article computed without 22 regard to any credit provided by this section. 23 § 2. Section 606 of the tax law is amended by adding a new subsection 24 (k-1) to read as follows: 25 (k-1) Re-entry employment incentive tax credit. (1) A taxpayer shall 26 be allowed a credit, to be computed as hereinafter provided, against the 27 tax imposed by this article in the amount prescribed by this subsection 28 where such taxpayer employs one or more qualifying individuals desig- 29 nated pursuant to paragraph three of this subsection. 30 (2) The amount of the credit shall be as follows for each qualifying 31 individual employed by the taxpayer: 32 (i) Fifty percent of the qualified wages in the first year of employ- 33 ment; 34 (ii) Forty percent of qualified wages in the second year of employ- 35 ment; and 36 (iii) Thirty percent of qualified wages in the third year of employ- 37 ment. 38 (3) For the purposes of this subsection, "qualifying individual" shall 39 mean an individual hired by a taxpayer on or after January first, two 40 thousand twenty-one who: 41 (i) has been convicted of a felony in this state in the last five 42 years, has been released from a correctional facility as defined in 43 subdivision four of section two of the correction law in the last five 44 years or is serving a period of post-release supervision, parole or 45 probation for the conviction of a felony, provided that an individual 46 shall be considered a qualified individual for each of the first four 47 years of employment if hired by the taxpayer within the time period 48 specified in this subparagraph; 49 (ii) resides in this state; and 50 (iii) receives qualified wages for at least three continuous months 51 from the taxpayer during the taxable year. 52 (4) For the purposes of this subsection, "qualified wages" shall mean 53 wages paid or incurred by the taxpayer during the taxable year to the 54 qualified individual, provided that the amount of qualified wages which 55 may be taken into account when calculating the credit pursuant to this 56 subsection shall not exceed fifteen thousand dollars per year.

A. 3376 3 1 (5) Notwithstanding any provision of law to the contrary, if the 2 amount of the credit and carryovers of such credit allowed under this 3 subsection for any taxable year shall exceed the taxpayer's tax for such 4 year, any amount of credit or carryovers of such credit thus not deduct- 5 ible in such taxable year may be carried over to the following year or 6 years and may be deducted from the tax for such year or years. In addi- 7 tion, the amount of such credit, and carryovers of such credit to the 8 taxable year, deducted from the tax otherwise due may not, in the aggre- 9 gate, exceed fifty percent of the tax imposed under section six hundred 10 one of this part computed without regard to any credit provided for by 11 this section. 12 § 3. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 13 of the tax law is amended by adding a new clause (xlvi) to read as 14 follows: 15 (xlvi) Re-entry employment Amount of credit 16 incentive tax credit under under subdivision 17 subsection (k-1) fifty-five of section 18 two hundred ten-B 19 § 4. This act shall take effect on the sixtieth day after it shall 20 have become a law.

Relates to providing a re-entry employment incentive tax credit

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