S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6121
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               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:
 
   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 DESIG-
 NATED 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  EMPLOY-
 MENT;
   (II)  FORTY  PERCENT  OF QUALIFIED WAGES IN THE SECOND YEAR OF EMPLOY-
 MENT; AND
   (III) THIRTY PERCENT OF QUALIFIED WAGES IN THE THIRD YEAR  OF  EMPLOY-
 MENT.
   (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 DESIG-
 NATED 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  EMPLOY-
 MENT;
   (II)  FORTY  PERCENT  OF QUALIFIED WAGES IN THE SECOND YEAR OF EMPLOY-
 MENT; AND
   (III) THIRTY PERCENT OF QUALIFIED WAGES IN THE THIRD YEAR  OF  EMPLOY-
 MENT.
   (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 DEDUCT-
 IBLE  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  ADDI-
 TION,  THE  AMOUNT  OF SUCH CREDIT, AND CARRYOVERS OF SUCH CREDIT TO THE
 TAXABLE YEAR, DEDUCTED FROM THE TAX OTHERWISE DUE MAY NOT, IN THE AGGRE-
 GATE, 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 incar-
 cerated 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 taxa-
 tion 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 effec-
 tiveness 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 commit-
 tee 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.