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A00103 Summary:

BILL NOA00103
 
SAME ASNo Same As
 
SPONSORRosenthal L
 
COSPNSR
 
MLTSPNSR
 
Amd 210-B & 606, Tax L
 
Establishes a tax credit for employment of an individual who has successfully completed a judicial diversion substance abuse treatment program or graduated from drug court.
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A00103 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A103
 
SPONSOR: Rosenthal L
  TITLE OF BILL: 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   PURPOSE: This bill provides a tax credit for employers who agree to hire individ- uals who have either graduated from drug court or have successfully completed a judicial diversion program.   SUMMARY OF SPECIFIC PROVISIONS: Section one amends section 210-b of the tax law by adding a new subdivi- sion 49 to provide a tax credit for employers who hire individuals who have graduated from drug court or have successfully completed a judicial diversion program, provided that the individual works at least 35 hour per week and has been employed for at least one year The credit would be three thousand dollars per hired individual for the first year the indi- vidual is employed and one thousand dollars for the second year. Section two amends Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law by adding a new clause (xliii). Section three amends Section 606 of the tax law by adding a new subsection 12 (ccc). Section four sets forth the effective date.   JUSTIFICATION: Drug courts and judicial diversion programs have proven to be an extremely effective alternative to incarceration for individuals suffer- ing from substance abuse. A total of 3,792 individuals successfully completed drug courts and judicial diversion programs statewide (59% success rate). Through drug court/judicial diversion, individuals are closely supervised and receive intensive treatment for their addictions. Both programs have proven to reduce costs, reduce crime rates, reunite families and, perhaps most importantly, save lives. The genesis for this proposal came directly out of one of the forums held by the New York State Senate Task Force on Heroin and Opioid Addiction. For individuals in the recovery community, it is important that support services are in place when their treatment is completed so that they may begin to rebuild their lives. A critical piece of the rebuilding process is the ability to find gainful employment. Getting individuals in recovery back into the workforce will help them to become productive members of society, which will in turn make them less likely to relapse One of the challenges, however, is convincing employers to take a chance on someone who has a history of addiction and hire indi- viduals in recovery A tax credit will provide the necessary incentive to employers to hire individuals in recovery who have successfully completed either a drug court or judicial diversion program.   LEGISLATIVE HISTORY: 2017-18: A.4940 - Referred to Ways and Means 2015-16: A.10526 - Referred to Ways and Means; S.2346-A - Passed Senate   FISCAL IMPLICATIONS: Undetermined.   EFFECTIVE DATE: This bill shall take effect immediately.
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A00103 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                           103
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                       (Prefiled)
 
                                     January 9, 2019
                                       ___________
 
        Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
          Committee on Ways and Means
 
        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:
 
     1    Section  1.  Section  210-B  of the tax law is amended by adding a new
     2  subdivision 53 to read as follows:
     3    53. 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
    19  than the amount prescribed in paragraph (d) of subdivision one  of  this
    20  section.  If, however, the amount of credits allowed under this subdivi-
    21  sion for any taxable year reduces the tax to such amount, any amount  of
    22  credit  thus  not deductible in such taxable year shall be treated as an
    23  overpayment of tax to be credited or refunded  in  accordance  with  the
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01846-01-9

        A. 103                              2
 
     1  provisions of section one thousand eighty-six of this chapter. Provided,
     2  however, the provisions of subsection (c) of section one thousand eight-
     3  y-eight of this chapter notwithstanding, no interest shall be paid ther-
     4  eon.
     5    §  2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606
     6  of the tax law is amended by adding a  new  clause  (xliv)  to  read  as
     7  follows:
     8    (xliv) Employment of individuals    Amount of credit
     9    who have graduated from             under subdivision
    10    drug court or have                  fifty-three of section
    11    successfully completed              two hundred ten-B
    12    a judicial diversion program
    13    tax credit under
    14    subsection (jjj)
    15    §  3. Section 606 of the tax law is amended by adding a new subsection
    16  (jjj) to read as follows:
    17    (jjj) Tax credit for employment of individuals who have graduated from
    18  drug court or have successfully completed a judicial diversion  program.
    19  (1)  Allowance  of  credit.  A taxpayer shall be allowed a credit, to be
    20  computed as provided in this subsection, against the tax imposed by this
    21  article, if it employs an individual who has graduated from  drug  court
    22  or  who has successfully completed a judicial diversion program pursuant
    23  to article two hundred sixteen of the criminal procedure  law,  provided
    24  that  such individual is employed for thirty-five hours or more per week
    25  and remains in the employ of such taxpayer for twelve months.
    26    (2) Amount of credit. A credit authorized by this section shall  equal
    27  three  thousand  dollars  per  hired  individual  for  the first year of
    28  employment and an additional one  thousand  dollars  if  the  individual
    29  remains in employ for an additional twelve months.
    30    (3)  Application  of  credit. The credit allowed under this subsection
    31  for any taxable year shall not reduce the tax due for such year to  less
    32  than  the  higher  of the amount prescribed in paragraphs (c) and (d) of
    33  subdivision one of section two hundred  ten-B  of  this  chapter.    If,
    34  however,  the  amount  of credits allowed under this subdivision for any
    35  taxable year reduces the tax to such amount, any amount of  credit  thus
    36  not  deductible  in such taxable year shall be treated as an overpayment
    37  of tax to be credited or refunded in accordance with the  provisions  of
    38  section  one thousand eighty-six of this chapter. Provided, however, the
    39  provisions of subsection (c) of section  one  thousand  eighty-eight  of
    40  this chapter notwithstanding, no interest shall be paid thereon.
    41    §  4.  This  act  shall take effect immediately and shall be deemed to
    42  have been in full force and effect on the same date as part A of chapter
    43  59 of the laws of 2014 took effect and  shall  apply  to  taxable  years
    44  beginning  on and after January 1, 2021 and shall apply to those employ-
    45  ees hired after this act shall take effect.
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