S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4583
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2025
                                ___________
 
 Introduced  by  M.  of  A. CUNNINGHAM, JACKSON, ALVAREZ -- 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:

   Section  1.  Section  210-B  of the tax law is amended by adding a new
 subdivision 61 to read as follows:
   61. 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 PARAGRAPH (C) OF 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-FIVE 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

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD07988-01-5
 A. 4583                             2
              

 
 YEARS  OF  EMPLOYMENT  IF  HIRED  BY THE TAXPAYER WITHIN THE TIME PERIOD
 SPECIFIED IN THIS SUBPARAGRAPH;
   (II) RESIDES IN THIS STATE; AND
   (III)  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 FIFTEEN 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 HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C)
 AND (D) OF SUBDIVISION ONE OF THIS SECTION,  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. (1) 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 PARAGRAPH THREE OF THIS SUBSECTION.
   (2) 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.
   (3) FOR THE PURPOSES OF THIS SUBSECTION, "QUALIFYING INDIVIDUAL" SHALL
 MEAN AN INDIVIDUAL HIRED BY A TAXPAYER ON OR AFTER  JANUARY  FIRST,  TWO
 THOUSAND TWENTY-FIVE 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; AND
   (III) RECEIVES QUALIFIED WAGES FOR AT LEAST  THREE  CONTINUOUS  MONTHS
 FROM THE TAXPAYER DURING THE TAXABLE YEAR.
   (4)  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 FIFTEEN THOUSAND DOLLARS PER YEAR.
 A. 4583                             3
 
   (5)  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 (lii) to read as
 follows:
 
 (LII) RE-ENTRY EMPLOYMENT            AMOUNT OF CREDIT
 INCENTIVE TAX CREDIT UNDER           UNDER SUBDIVISION
 SUBSECTION (K-1)                     SIXTY-ONE OF SECTION
                                      TWO HUNDRED TEN-B

   § 4. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.