S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 149--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced by Sens. GALLIVAN, PANEPINTO -- read twice and ordered print-
  ed,  and  when  printed  to  be committed to the Committee on Investi-
  gations and Government Operations -- recommitted to the  Committee  on
  Investigations  and  Government  Operations  in accordance with Senate
  Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to amend the tax law, in relation to a credit for employment of
  persons on probation or parole

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  tax  law is amended by adding a new section 187-t to
read as follows:
  S 187-T. CREDIT FOR EMPLOYMENT OF PERSONS ON PROBATION OR  PAROLE.  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  EIGHTY-THREE  OF
THIS ARTICLE.
  2. QUALIFIED EMPLOYEE. A QUALIFIED EMPLOYEE IS AN INDIVIDUAL WHO:
  (A)  HAS  BEEN  CONVICTED  OF A FELONY UNDER ANY STATUTE OF THE UNITED
STATES OR ANY STATE;
  (B) IS ON PROBATION OR PAROLE; AND
  (C) 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01370-02-6
              

S. 149--A                           2

  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-
FIED  EMPLOYEES WHICH ARE ATTRIBUTABLE, WITH RESPECT TO ANY SUCH EMPLOY-
EE, 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 OR ONE
HUNDRED EIGHTY-FIVE 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  NINE-
TY-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.
  S  2. This act shall take effect immediately, and shall apply to taxa-
ble years beginning on and after January 1, 2016.