S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2198
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 19, 2023
                                ___________
 
 Introduced by Sen. OBERACKER -- 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 a tax credit for employment
   of an individual who has successfully completed a  judicial  diversion
   program or graduated from drug court

   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 59 to read as follows:
   59.  CREDIT FOR EMPLOYMENT OF INDIVIDUALS WHO HAVE GRADUATED FROM DRUG
 COURT OR HAVE SUCCESSFULLY COMPLETED A JUDICIAL DIVERSION  PROGRAM.  (A)
 ALLOWANCE  OF  CREDIT.  A  TAXPAYER  SHALL  BE  ALLOWED  A CREDIT, TO BE
 COMPUTED AS PROVIDED IN THIS SUBDIVISION, AGAINST  THE  TAX  IMPOSED  BY
 THIS  ARTICLE,  IF  IT EMPLOYS AN INDIVIDUAL WHO HAS GRADUATED FROM DRUG
 COURT OR HAS SUCCESSFULLY COMPLETED A JUDICIAL DIVERSION PROGRAM  PURSU-
 ANT  TO  ARTICLE  TWO  HUNDRED  SIXTEEN  OF  THE CRIMINAL PROCEDURE LAW,
 PROVIDED THAT SUCH INDIVIDUAL IS EMPLOYED FOR THIRTY-FIVE HOURS OR  MORE
 PER  WEEK  AND  REMAINS  IN THE EMPLOY OF SUCH TAXPAYER FOR A MINIMUM OF
 TWELVE MONTHS.
   (B) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL  EQUAL
 THREE  THOUSAND  DOLLARS  PER  HIRED  INDIVIDUAL  FOR  THE FIRST YEAR OF
 EMPLOYMENT AND AN ADDITIONAL ONE  THOUSAND  DOLLARS  IF  THE  INDIVIDUAL
 REMAINS IN EMPLOY FOR AN ADDITIONAL TWELVE MONTHS.
   (C)  APPLICATION  OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION
 FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO  LESS
 THAN  THE  AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS
 SECTION. IF, HOWEVER, THE AMOUNT OF CREDITS ALLOWED UNDER THIS  SUBDIVI-
 SION  FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF
 CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED  AS  AN
 OVERPAYMENT  OF  TAX  TO  BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE
 PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06015-01-3
              

 S. 2198                             2
 
 HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
 Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER-
 EON.
   §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
 of the tax law is amended by adding a new clause (l) to read as follows:
   (L) EMPLOYMENT OF INDIVIDUALS       AMOUNT OF CREDIT
   WHO HAVE GRADUATED FROM             UNDER SUBDIVISION
   DRUG COURT OR HAVE                  FIFTY-NINE OF SECTION
   SUCCESSFULLY COMPLETED              TWO HUNDRED TEN-B
   A JUDICIAL DIVERSION PROGRAM
   TAX CREDIT UNDER
   SUBSECTION (BBB)
   § 3. Section 606 of the tax law is amended by adding a new  subsection
 (bbb) to read as follows:
   (BBB) TAX CREDIT FOR EMPLOYMENT OF INDIVIDUALS WHO HAVE GRADUATED FROM
 DRUG  COURT OR HAVE SUCCESSFULLY COMPLETED A JUDICIAL DIVERSION PROGRAM.
 (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED  A  CREDIT,  TO  BE
 COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST THE TAX IMPOSED BY THIS
 ARTICLE,  IF  IT EMPLOYS AN INDIVIDUAL WHO HAS GRADUATED FROM DRUG COURT
 OR WHO HAS SUCCESSFULLY COMPLETED A JUDICIAL DIVERSION PROGRAM  PURSUANT
 TO  ARTICLE  TWO HUNDRED SIXTEEN OF THE CRIMINAL PROCEDURE LAW, PROVIDED
 THAT SUCH INDIVIDUAL IS EMPLOYED FOR THIRTY-FIVE HOURS OR MORE PER  WEEK
 AND REMAINS IN THE EMPLOY OF SUCH TAXPAYER FOR TWELVE MONTHS.
   (2)  AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL EQUAL
 THREE THOUSAND DOLLARS PER  HIRED  INDIVIDUAL  FOR  THE  FIRST  YEAR  OF
 EMPLOYMENT  AND  AN  ADDITIONAL  ONE  THOUSAND DOLLARS IF THE INDIVIDUAL
 REMAINS IN EMPLOY FOR AN ADDITIONAL TWELVE MONTHS.
   (3) APPLICATION OF CREDIT. THE CREDIT ALLOWED  UNDER  THIS  SUBSECTION
 FOR  ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS
 THAN THE HIGHER OF THE AMOUNT PRESCRIBED IN PARAGRAPHS (C)  AND  (D)  OF
 SUBDIVISION  ONE  OF  SECTION  TWO  HUNDRED TEN-B OF THIS CHAPTER.   IF,
 HOWEVER, THE AMOUNT OF CREDITS ALLOWED UNDER THIS  SUBDIVISION  FOR  ANY
 TAXABLE  YEAR  REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS
 NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS  AN  OVERPAYMENT
 OF  TAX  TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF
 SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER,  THE
 PROVISIONS  OF  SUBSECTION  (C)  OF SECTION ONE THOUSAND EIGHTY-EIGHT OF
 THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON.
   § 4. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2024 and shall  apply  to  those
 employees hired after this act shall take effect.