Bill Text: NY S02105 | 2023-2024 | General Assembly | Introduced
Bill Title: Creates a tax credit for employment of persons on probation or parole.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced) 2024-01-03 - REFERRED TO BUDGET AND REVENUE [S02105 Detail]
Download: New_York-2023-S02105-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2105 2023-2024 Regular Sessions IN SENATE January 18, 2023 ___________ Introduced by Sens. BAILEY, MYRIE, PERSAUD -- 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 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: 1 Section 1. The tax law is amended by adding a new section 187-r to 2 read as follows: 3 § 187-r. Credit for employment of persons on probation or parole. 1. 4 Allowance of credit. A taxpayer shall be allowed a credit, to be 5 computed as hereinafter provided, against the taxes imposed by this 6 article, other than the taxes imposed by sections one hundred eighty- 7 six-a and one hundred eighty-six-e of this article, for employing within 8 the state a qualified employee. Provided, however, the amount of credit 9 allowed by this section against the tax imposed by section one hundred 10 eighty-four of this article shall be the excess of the credit computed 11 under this section over the amount of credit allowed by this section 12 against the tax imposed by section one hundred eighty-three of this 13 article. 14 2. Qualified employee. A qualified employee is an individual who: 15 (a) has been convicted of a felony under any statute of the United 16 States or any state; 17 (b) is on probation or parole; and 18 (c) has worked on a full-time basis for the employer who is claiming 19 the credit for at least one hundred eighty days or four hundred hours. 20 3. Amount of credit. Except as provided in subdivision four of this 21 section, the amount of credit under this section shall be thirty-five 22 percent of the first six thousand dollars in qualified first-year wages 23 earned by each qualified employee. "Qualified first-year wages" means 24 wages paid or incurred by the taxpayer during the taxable year to quali- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05067-02-3S. 2105 2 1 fied employees which are attributable, with respect to any such employ- 2 ee, to services rendered during the one-year period beginning with the 3 day the employee begins work for the taxpayer. 4 4. Credit where federal work opportunity tax credit applies. With 5 respect to any qualified employee whose qualified first-year wages under 6 subdivision three of this section also constitute qualified first-year 7 wages for purposes of the work opportunity tax credit for vocational 8 rehabilitation referrals under section fifty-one of the internal revenue 9 code, the amount of credit under this section shall be thirty-five 10 percent of the first six thousand dollars in qualified second-year wages 11 earned by each such employee. "Qualified second-year wages" means wages 12 paid or incurred by the taxpayer during the taxable year to qualified 13 employees which are attributable, with respect to any such employee, to 14 services rendered during the one-year period beginning one year after 15 the employee begins work for the taxpayer. 16 5. Carryover. In no event shall the credit under this section be 17 allowed in an amount which will reduce the tax payable to less than the 18 applicable minimum tax fixed by section one hundred eighty-three of this 19 article. If, however, the amount of credit allowable under this section 20 for any taxable year reduces the tax to such amount, any amount of cred- 21 it not deductible in such taxable year may be carried over to the 22 following year or years and may be deducted from the taxpayer's tax for 23 such year or years. 24 6. Coordination with federal work opportunity tax credit. The 25 provisions of sections fifty-one and fifty-two of the internal revenue 26 code, as such sections applied on October first, nineteen hundred nine- 27 ty-six, that apply to the work opportunity tax credit for vocational 28 rehabilitation referrals shall apply to the credit under this section to 29 the extent that such sections are consistent with the specific 30 provisions of this section, provided that in the event of a conflict the 31 provisions of this section shall control. 32 § 2. Section 210-B of the tax law is amended by adding a new subdivi- 33 sion 59 to read as follows: 34 59. Credit for employment of persons on probation or parole. (a) 35 Allowance of credit. A taxpayer shall be allowed a credit, to be 36 computed as hereinafter provided, against the taxes imposed by this 37 article, for employing within the state a qualified employee. 38 (b) Qualified employee. A qualified employee is an individual who: 39 (i) has been convicted of a felony under any statute of the United 40 States or any state; (ii) is on probation or parole; and (iii) has 41 worked on a full-time basis for the employer who is claiming the credit 42 for at least one hundred eighty days or four hundred hours. 43 (c) Amount of credit. Except as provided in paragraph (d) of this 44 subdivision, the amount of credit under this subdivision shall be thir- 45 ty-five percent of the first six thousand dollars in qualified first- 46 year wages earned by each qualified employee. "Qualified first-year 47 wages" means wages paid or incurred by the taxpayer during the taxable 48 year to qualified employees which are attributable, with respect to any 49 such employee, to services rendered during the one-year period beginning 50 with the day the employee begins work for the taxpayer. 51 (d) Credit where federal work opportunity tax credit applies. With 52 respect to any qualified employee whose qualified first-year wages under 53 paragraph (c) of this subdivision also constitute qualified first-year 54 wages for purposes of the work opportunity tax credit for vocational 55 rehabilitation referrals under section fifty-one of the internal revenue 56 code, the amount of credit under this subdivision shall be thirty-fiveS. 2105 3 1 percent of the first six thousand dollars in qualified second-year wages 2 earned by each such employee. "Qualified second-year wages" means wages 3 paid or incurred by the taxpayer during the taxable year to qualified 4 employees which are attributable, with respect to any such employee, to 5 services rendered during the one-year period beginning one year after 6 the employee begins work for the taxpayer. 7 (e) Carryover. Except as otherwise provided in this paragraph, the 8 credit allowed under this subdivision for any taxable year shall not 9 reduce the tax due for such year to less than the fixed dollar minimum 10 amount prescribed in paragraph (d) of subdivision one of section two 11 hundred ten of this article. If, however, the amount of credit 12 allowable under this section for any taxable year reduces the tax to 13 such amount, any amount of credit not deductible in such taxable year 14 may be carried over to the following year or years and may be deducted 15 from the taxpayer's tax for such year or years. 16 (f) Coordination with federal work opportunity tax credit. The 17 provisions of sections fifty-one and fifty-two of the internal revenue 18 code, as such sections applied on October first, nineteen hundred nine- 19 ty-six, that apply to the work opportunity tax credit for vocational 20 rehabilitation referrals shall apply to the credit under this subdivi- 21 sion to the extent that such sections are consistent with the specific 22 provisions of this subdivision, provided that in the event of a conflict 23 the provisions of this subdivision shall control. 24 § 3. Section 606 of the tax law is amended by adding a new 25 subsection (ooo) to read as follows: 26 (ooo) Credit for employment of persons on probation or parole. (1) 27 Allowance of credit. A taxpayer shall be allowed a credit, to be 28 computed as hereinafter provided, against the taxes imposed by this 29 article, for employing within the state a qualified employee. 30 (2) Qualified employee. A qualified employee is an individual who: 31 (A) has been convicted of a felony under any statute of the United 32 States or any state; (B) is on probation or parole; and (C) has worked 33 on a full-time basis for the employer who is claiming the credit for at 34 least one hundred eighty days or four hundred hours. 35 (3) Amount of credit. Except as provided in paragraph four of this 36 subsection, the amount of credit under this subsection shall be thirty- 37 five percent of the first six thousand dollars in qualified first-year 38 wages earned by each qualified employee. "Qualified first-year wages" 39 means wages paid or incurred by the taxpayer during the taxable year to 40 qualified employees which are attributable, with respect to any such 41 employee, to services rendered during the one-year period beginning with 42 the day the employee begins work for the taxpayer. 43 (4) Credit where federal work opportunity tax credit applies. With 44 respect to any qualified employee whose qualified first-year wages under 45 paragraph three of this subsection also constitute qualified first-year 46 wages for purposes of the work opportunity tax credit for vocational 47 rehabilitation referrals under section fifty-one of the internal revenue 48 code, the amount of credit under this section shall be thirty-five 49 percent of the first six thousand dollars in qualified second-year wages 50 earned by each such employee. "Qualified second-year wages" means wages 51 paid or incurred by the taxpayer during the taxable year to qualified 52 employees which are attributable, with respect to any such employee, to 53 services rendered during the one-year period beginning one year after 54 the employee begins work for the taxpayer. 55 (5) Carryover. If the amount of credit allowable under this subsection 56 for any taxable year exceeds the taxpayer's tax for such year, anyS. 2105 4 1 amount of credit not deductible in such taxable year may be carried over 2 to the following year or years and may be deducted from the taxpayer's 3 tax for such year or years. 4 (6) Coordination with federal work opportunity tax credit. The 5 provisions of sections fifty-one and fifty-two of the internal revenue 6 code, as such sections applied on October first, nineteen hundred nine- 7 ty-six, that apply to the work opportunity tax credit for vocational 8 rehabilitation referrals shall apply to the credit under this subsection 9 to the extent that such sections are consistent with the specific 10 provisions of this subsection, provided that in the event of a conflict 11 the provisions of this subsection shall control. 12 § 4. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 13 of the tax law is amended by adding a new clause (l) to read as 14 follows: 15 (l) Employment of persons Costs under subdivision 16 on probation or parole credit; fifty-nine of section 17 subsection (ooo) two hundred ten-B 18 § 5. Section 1511 of the tax law is amended by adding a new subdivi- 19 sion (ee) to read as follows: 20 (ee) Credit for employment of persons on probation or parole. (1) 21 Allowance of credit. A taxpayer shall be allowed a credit, to be 22 computed as hereinafter provided, against the taxes imposed by this 23 article, for employing within the state a qualified employee. 24 (2) Qualified employee. A qualified employee is an individual who: 25 (A) has been convicted of a felony under any statute of the United 26 States or any state; (B) is on probation or parole; and (C) has worked 27 on a full-time basis for the employer who is claiming the credit for at 28 least one hundred eighty days or four hundred hours. 29 (3) Amount of credit. Except as provided in paragraph four of this 30 subdivision, the amount of credit under this subdivision shall be thir- 31 ty-five percent of the first six thousand dollars in qualified first- 32 year wages earned by each qualified employee. "Qualified first-year 33 wages" means wages paid or incurred by the taxpayer during the taxable 34 year to qualified employees which are attributable, with respect to any 35 such employee, to services rendered during the one-year period beginning 36 with the day the employee begins work for the taxpayer. 37 (4) Credit where federal work opportunity tax credit applies. With 38 respect to any qualified employee whose qualified first-year wages under 39 paragraph three of this section also constitute qualified first-year 40 wages for purposes of the work opportunity tax credit for vocational 41 rehabilitation referrals under section fifty-one of the internal revenue 42 code, the amount of credit under this section shall be thirty-five 43 percent of the first six thousand dollars in qualified second-year wages 44 earned by each such employee. "Qualified second-year wages" means wages 45 paid or incurred by the taxpayer during the taxable year to qualified 46 employees which are attributable, with respect to any such employee, to 47 services rendered during the one-year period beginning one year after 48 the employee begins work for the taxpayer. 49 (5) Carryover. The credit allowed under this subdivision for any 50 taxable year shall not reduce the tax due for such year to less than the 51 amount prescribed in paragraph four of subdivision (a) of section 52 fifteen hundred two of this article or the minimum tax prescribed in 53 section fifteen hundred two-a of this article, whichever is applicable. 54 If, however, the amount of credit allowable under this subdivision for 55 any taxable year reduces the tax to such amount, any amount of credit 56 not deductible in such taxable year may be carried over to the followingS. 2105 5 1 year or years and may be deducted from the taxpayer's tax for such year 2 or years. 3 (6) Coordination with federal work opportunity tax credit. The 4 provisions of sections fifty-one and fifty-two of the internal revenue 5 code, as such sections applied on October first, nineteen hundred nine- 6 ty-six, that apply to the work opportunity tax credit for vocational 7 rehabilitation referrals shall apply to the credit under this subdivi- 8 sion to the extent that such sections are consistent with the specific 9 provisions of this subdivision, provided that in the event of a conflict 10 the provisions of this subdivision shall control. 11 § 6. This act shall take effect immediately, and shall apply to taxa- 12 ble years beginning on and after January 1, 2023.
