STATE OF NEW YORK ________________________________________________________________________ 5744--B 2019-2020 Regular Sessions IN SENATE May 14, 2019 ___________ Introduced by Sens. BENJAMIN, SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Reven- ue -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- recommitted to the Committee on Budget and Revenue in accordance with Senate Rule 6, sec. 8 -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 a drug court The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 210-B of the tax law is amended by adding a new 2 subdivision 55 to read as follows: 3 55. Credit for employment of individuals who have graduated from drug 4 court or have successfully completed a judicial diversion program. (a) 5 Allowance of credit. A taxpayer shall be allowed a credit, to be 6 computed as provided in this subdivision, against the tax imposed by 7 this article, if it employs an individual who has graduated from drug 8 court or has successfully completed a judicial diversion program pursu- 9 ant to article two hundred sixteen of the criminal procedure law, 10 provided that such individual is employed for thirty-five hours or more 11 per week and remains in the employ of such taxpayer for a minimum of 12 twelve months. 13 (b) Amount of credit. A credit authorized by this section shall equal 14 three thousand dollars per hired individual for the first year of 15 employment and an additional one thousand dollars if the individual 16 remains in employ for an additional twelve months. 17 (c) Application of credit. The credit allowed under this subdivision 18 for any taxable year shall not reduce the tax due for such year to less EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11705-03-0S. 5744--B 2 1 than the amount prescribed in paragraph (d) of subdivision one of this 2 section. If, however, the amount of credits allowed under this subdivi- 3 sion for any taxable year reduces the tax to such amount, any amount of 4 credit thus not deductible in such taxable year shall be treated as an 5 overpayment of tax to be credited or refunded in accordance with the 6 provisions of section one thousand eighty-six of this chapter. Provided, 7 however, the provisions of subsection (c) of section one thousand eight- 8 y-eight of this chapter notwithstanding, no interest shall be paid ther- 9 eon. 10 (d) Credit recapture. For provisions requiring recapture of credit, 11 see section forty-four of this chapter. 12 § 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 13 of the tax law is amended by adding a new clause (xlvi) to read as 14 follows: 15 (xlvi) Employment of individuals Amount of credit 16 who have graduated from under subdivision 17 drug court or have fifty-five of section 18 successfully completed two hundred ten-B 19 a judicial diversion program 20 tax credit under 21 subsection (kkk) 22 § 3. Section 606 of the tax law is amended by adding a new subsection 23 (kkk) to read as follows: 24 (kkk) Tax credit for employment of individuals who have graduated from 25 drug court or have successfully completed a judicial diversion program. 26 (1) Allowance of credit. A taxpayer shall be allowed a credit, to be 27 computed as provided in this subsection, against the tax imposed by this 28 article, if it employs an individual who has graduated from drug court 29 or who has successfully completed a judicial diversion program pursuant 30 to article two hundred sixteen of the criminal procedure law, provided 31 that such individual is employed for thirty-five hours or more per week 32 and remains in the employ of such taxpayer for twelve months. 33 (2) Amount of credit. A credit authorized by this section shall equal 34 three thousand dollars per hired individual for the first year of 35 employment and an additional one thousand dollars if the individual 36 remains in employ for an additional twelve months. 37 (3) Application of credit. The credit allowed under this subsection 38 for any taxable year shall not reduce the tax due for such year to less 39 than the higher of the amount prescribed in paragraphs (c) and (d) of 40 subdivision one of section two hundred ten-B of this chapter. If, 41 however, the amount of credits allowed under this subsection for any 42 taxable year reduces the tax to such amount, any amount of credit thus 43 not deductible in such taxable year shall be treated as an overpayment 44 of tax to be credited or refunded in accordance with the provisions of 45 section one thousand eighty-six of this chapter. Provided, however, the 46 provisions of subsection (c) of section one thousand eighty-eight of 47 this chapter notwithstanding, no interest shall be paid thereon. 48 (4) Credit recapture. For provisions requiring recapture of credit, 49 see section forty-four of this chapter. 50 § 4. Section 1511 of the tax law is amended by adding a new subsection 51 (ee) to read as follows: 52 (ee) Credit for employment of individuals who have graduated from drug 53 court or have successfully completed a judicial diversion program. (1) 54 Allowance of credit. A taxpayer shall be allowed a credit, to be 55 computed as provided in this subsection, against the tax imposed by this 56 article, if it employs an individual who has graduated from drug courtS. 5744--B 3 1 or has successfully completed a judicial diversion program pursuant to 2 article two hundred sixteen of the criminal procedure law, provided that 3 such individual is employed for thirty-five hours or more per week and 4 remains in the employ of such taxpayer for a minimum of twelve months. 5 (2) Amount of credit. A credit authorized by this section shall equal 6 three thousand dollars per hired individual for the first year of 7 employment and an additional one thousand dollars if the individual 8 remains in employ for an additional twelve months. 9 (3) Application of credit. The credit allowed under this subsection 10 shall not reduce the tax due for such year to be less than the minimum 11 fixed by paragraph four of subdivision (a) of section fifteen hundred 12 two or section fifteen hundred two-a of this article, whichever is 13 applicable. However, if the amount of the credit allowed under this 14 subsection for any taxable year reduces the taxpayer's tax of such 15 amount, any amount of credit thus not deductible will be treated as an 16 overpayment of tax to be credited or refunded in accordance with the 17 provisions of section one thousand eighty-six of this chapter. Provided, 18 however, the provisions of subsection (c) of one thousand eighty-eight 19 of this chapter notwithstanding, no interest shall be paid thereon. 20 (4) Credit recapture. For provisions requiring recapture of credit, 21 see section forty-four of this chapter. 22 § 5. This act shall take effect on the first of January next succeed- 23 ing the date on which it shall have become a law, and shall apply to 24 taxable years beginning on or after such date and to employees hired on 25 or after such date.