Creates a tax credit for employment of persons on probation or parole.

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S5710-2011 Actions

• May 2, 2012: REPORTED AND COMMITTED TO FINANCE
• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jun 13, 2011: REFERRED TO RULES

S5710-2011 Meetings

Investigations and Government Operations: May 2, 2012

S5710-2011 Votes

S5710-2011 Memo

BILL NUMBER:S5710

TITLE OF BILL:
An act
to amend the tax law, in relation to a credit for employment of persons
on probation or parole

PURPOSE:
This bill provides for a tax credit for the employer of persons on
probation or parole up to $2,100.

SUMMARY OF PROVISIONS:
Section 1 creates section 187-s of the tax law. The allowance of
credit for the employer is described. Employees that qualify their
employer for their tax credit are defined. The amount of credit is
delineated. How credit applies in relation to the federal work
opportunity tax credit is explained. The process for carryover tax
credits is outlined. Coordination with federal work opportunity tax
credit is provided for.

JUSTIFICATION:
Having a job is widely recognized as an important way to prevent
recidivism. However, a criminal record and being on parole or
probation often makes employees less attractive to employers. This
bill seeks to offset this fact by providing an employer with an
incentive to hire someone on parole or probation. In addition to
reducing recidivism, finding employment for people on probation or
parole will reduce the public assistance needs for this population.

LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
Uncertain. While this tax credit will reduce revenue, these losses
will be made up for by decreased recidivism, reduced public
assistance benefits, and taxes paid by employees. The cost of
imprisoning one person in New York costs upwards of $30,000. The
fiscal implication would be neutral, if for every fifteen tax credits
award through this legislation one person was keep out of prison
because of the increased job opportunities this bill would create.

LOCAL FISCAL IMPLICATIONS:
Positive. Localities will receive the benefits resulting from
decreased recidivism, reduced public assistance benefits, and income
taxes paid by employees, and will not be bearing the costs of this
program.

EFFECTIVE DATE:
This act shall take effect immediately.

S5710-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    5710

                         2011-2012 Regular Sessions

                              I N  SENATE

                                June 13, 2011
                                 ___________

  Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
    printed to be committed to the Committee on Rules

  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:


    Section 1. The tax law is amended by adding a  new  section  187-s  to
  read as follows:

    S  187-S.  CREDIT FOR EMPLOYMENT OF PERSONS ON PROBATION OR PAROLE. 1.
  ALLOWANCE OF CREDIT. A  TAXPAYER  SHALL  BE  ALLOWED  A  CREDIT,  TO  BE
  COMPUTED  AS  HEREINAFTER  PROVIDED,  AGAINST  THE TAXES IMPOSED BY THIS
  ARTICLE, OTHER THAN THE TAXES IMPOSED BY SECTIONS  ONE  HUNDRED  EIGHTY,
  ONE  HUNDRED EIGHTY-ONE, ONE HUNDRED EIGHTY-SIX-A AND ONE HUNDRED EIGHT-
  Y-SIX-E OF THIS ARTICLE, FOR EMPLOYING  WITHIN  THE  STATE  A  QUALIFIED
  EMPLOYEE.  PROVIDED,  HOWEVER,  THE  AMOUNT  OF  CREDIT  ALLOWED BY THIS
  SECTION AGAINST THE TAX IMPOSED BY SECTION ONE  HUNDRED  EIGHTY-FOUR  OF
  THIS  ARTICLE  SHALL  BE  THE  EXCESS  OF THE CREDIT COMPUTED UNDER THIS
  SECTION OVER THE AMOUNT OF CREDIT ALLOWED BY THIS  SECTION  AGAINST  THE
  TAX IMPOSED BY SECTION ONE HUNDRED EIGHTY-THREE OF THIS ARTICLE.
    2. QUALIFIED EMPLOYEE. A QUALIFIED EMPLOYEE IS AN INDIVIDUAL WHO:

    (A)  HAS  BEEN  CONVICTED  OF A FELONY UNDER ANY STATUTE OF THE UNITED
  STATES OR ANY STATE;
    (B) IS ON PROBATION OR PAROLE; AND
    (C) HAS WORKED ON A FULL-TIME BASIS FOR THE EMPLOYER WHO  IS  CLAIMING
  THE CREDIT FOR AT LEAST ONE HUNDRED EIGHTY DAYS OR FOUR HUNDRED HOURS.
    3.  AMOUNT  OF  CREDIT. EXCEPT AS PROVIDED IN SUBDIVISION FOUR OF THIS
  SECTION, THE AMOUNT OF CREDIT UNDER THIS SECTION  SHALL  BE  THIRTY-FIVE
  PERCENT  OF THE FIRST SIX THOUSAND DOLLARS IN QUALIFIED FIRST-YEAR WAGES
  EARNED BY EACH QUALIFIED EMPLOYEE. "QUALIFIED  FIRST-YEAR  WAGES"  MEANS
  WAGES PAID OR INCURRED BY THE TAXPAYER DURING THE TAXABLE YEAR TO QUALI-
  FIED  EMPLOYEES WHICH ARE ATTRIBUTABLE, WITH RESPECT TO ANY SUCH EMPLOY-

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD13016-01-1

 S. 5710                             2

  EE, TO SERVICES RENDERED DURING THE ONE-YEAR PERIOD BEGINNING  WITH  THE
  DAY THE EMPLOYEE BEGINS WORK FOR THE TAXPAYER.
    4.  CREDIT  WHERE  FEDERAL  WORK  OPPORTUNITY TAX CREDIT APPLIES. WITH
  RESPECT TO ANY QUALIFIED EMPLOYEE WHOSE QUALIFIED FIRST-YEAR WAGES UNDER
  SUBDIVISION THREE OF THIS SECTION ALSO CONSTITUTE  QUALIFIED  FIRST-YEAR
  WAGES  FOR  PURPOSES  OF  THE WORK OPPORTUNITY TAX CREDIT FOR VOCATIONAL
  REHABILITATION REFERRALS UNDER SECTION FIFTY-ONE OF THE INTERNAL REVENUE
  CODE, THE AMOUNT OF CREDIT  UNDER  THIS  SECTION  SHALL  BE  THIRTY-FIVE
  PERCENT OF THE FIRST SIX THOUSAND DOLLARS IN QUALIFIED SECOND-YEAR WAGES
  EARNED  BY EACH SUCH EMPLOYEE. "QUALIFIED SECOND-YEAR WAGES" MEANS WAGES
  PAID OR INCURRED BY THE TAXPAYER DURING THE TAXABLE  YEAR  TO  QUALIFIED
  EMPLOYEES  WHICH ARE ATTRIBUTABLE, WITH RESPECT TO ANY SUCH EMPLOYEE, TO
  SERVICES RENDERED DURING THE ONE-YEAR PERIOD BEGINNING  ONE  YEAR  AFTER
  THE EMPLOYEE BEGINS WORK FOR THE TAXPAYER.
    5.  CARRYOVER.  IN  NO  EVENT  SHALL  THE CREDIT UNDER THIS SECTION BE
  ALLOWED IN AN AMOUNT WHICH WILL REDUCE THE TAX PAYABLE TO LESS THAN  THE
  APPLICABLE  MINIMUM TAX FIXED BY SECTION ONE HUNDRED EIGHTY-THREE OR ONE
  HUNDRED EIGHTY-FIVE OF THIS ARTICLE. IF, HOWEVER, THE AMOUNT  OF  CREDIT
  ALLOWABLE  UNDER  THIS  SECTION  FOR ANY TAXABLE YEAR REDUCES THE TAX TO
  SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN  SUCH  TAXABLE  YEAR
  MAY  BE  CARRIED OVER TO THE FOLLOWING YEAR OR YEARS AND MAY BE DEDUCTED
  FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
    6.  COORDINATION  WITH  FEDERAL  WORK  OPPORTUNITY  TAX  CREDIT.   THE
  PROVISIONS  OF  SECTIONS FIFTY-ONE AND FIFTY-TWO OF THE INTERNAL REVENUE
  CODE, AS SUCH SECTIONS APPLIED ON OCTOBER FIRST, NINETEEN HUNDRED  NINE-
  TY-SIX,  THAT  APPLY  TO  THE WORK OPPORTUNITY TAX CREDIT FOR VOCATIONAL
  REHABILITATION REFERRALS SHALL APPLY TO THE CREDIT UNDER THIS SECTION TO
  THE  EXTENT  THAT  SUCH  SECTIONS  ARE  CONSISTENT  WITH  THE   SPECIFIC
  PROVISIONS OF THIS SECTION, PROVIDED THAT IN THE EVENT OF A CONFLICT THE
  PROVISIONS OF THIS SECTION SHALL CONTROL.
    S 2. This act shall take effect immediately.