Bill S7668-2013

Relates to a tax credit for employment of an individual who has successfully completed a judicial diversion substance abuse treatment program or graduated from drug court

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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  • May 27, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

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BILL NUMBER:S7668

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 a drug court

PURPOSE: This bill provides a tax credit for employers who agree to hire individuals who have either graduated from drug court or have successfully completed a judicial diversion program.

SUMMARY OF PROVISIONS: Section one of the bill amends section 210-b of the tax law by adding a new subdivision 50 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 individual is employed and one thousand dollars for the second year.

Section two of the bill makes corresponding changes to section 606 of the tax law.

JUSTIFICATION: Drug courts and judicial diversion programs have proven to be an extremely effective alternative to incarceration for individuals suffering 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 individuals 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: New bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect on the same date and in the same manner as section 17 of part A of chapter 59 of the laws of 2014 takes effect and shall apply to taxable years beginning on and after January 1, 2015 and shall apply those employees hired after this act shall take effect.


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STATE OF NEW YORK ________________________________________________________________________ 7668 IN SENATE May 27, 2014 ___________
Introduced by Sens. SEWARD, MARTINS -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations 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: Section 1. Section 210-B of the tax law is amended by adding a new subdivision 50 to read as follows: 50. CREDIT FOR EMPLOYMENT OF INDIVIDUALS WHO HAVE GRADUATED FROM DRUG COURT OR HAVE SUCCESSFULLY COMPLETED A JUDICIAL DIVERSION PROGRAM. (A) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, IF IT EMPLOYS AN INDIVIDUAL WHO HAS GRADUATED FROM DRUG COURT OR HAS SUCCESSFULLY COMPLETED A JUDICIAL DIVERSION PROGRAM PURSU- ANT TO ARTICLE TWO HUNDRED SIXTEEN OF THE CRIMINAL PROCEDURE LAW, PROVIDED THAT SUCH INDIVIDUAL IS EMPLOYED FOR THIRTY-FIVE HOURS OR MORE PER WEEK AND REMAINS IN THE EMPLOY OF SUCH TAXPAYER FOR A MINIMUM OF TWELVE MONTHS. (B) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL EQUAL THREE THOUSAND DOLLARS PER HIRED INDIVIDUAL FOR THE FIRST YEAR OF EMPLOYMENT AND AN ADDITIONAL ONE THOUSAND DOLLARS IF THE INDIVIDUAL REMAINS IN EMPLOY FOR AN ADDITIONAL TWELVE MONTHS. (C) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE AMOUNT PRESCRIBED IN PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION. IF, HOWEVER, THE AMOUNT OF CREDITS ALLOWED UNDER THIS SUBDIVI- SION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHT-
Y-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THER- EON. S 2. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xli) to read as follows: (XLI) EMPLOYMENT OF INDIVIDUALS AMOUNT OF CREDIT WHO HAVE GRADUATED FROM UNDER SUBDIVISION DRUG COURT OR HAVE FIFTY OF SECTION SUCCESSFULLY COMPLETED TWO HUNDRED TEN-B A JUDICIAL DIVERSION PROGRAM TAX CREDIT UNDER SUBSECTION (CCC) S 3. Section 606 of the tax law is amended by adding a new subsection (ccc) to read as follows: (CCC) TAX CREDIT FOR EMPLOYMENT OF INDIVIDUALS WHO HAVE GRADUATED FROM DRUG COURT OR HAVE SUCCESSFULLY COMPLETED A JUDICIAL DIVERSION PROGRAM. (1) ALLOWANCE OF CREDIT. A TAXPAYER SHALL BE ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBDIVISION, AGAINST THE TAX IMPOSED BY THIS ARTICLE, IF IT EMPLOYS AN INDIVIDUAL WHO HAS GRADUATED FROM DRUG COURT OR WHO HAS SUCCESSFULLY COMPLETED A JUDICIAL DIVERSION PROGRAM PURSUANT TO ARTICLE TWO HUNDRED SIXTEEN OF THE CRIMINAL PROCEDURE LAW, PROVIDED THAT SUCH INDIVIDUAL IS EMPLOYED FOR THIRTY-FIVE HOURS OR MORE PER WEEK AND REMAINS IN THE EMPLOY OF SUCH TAXPAYER FOR TWELVE MONTHS. (2) AMOUNT OF CREDIT. A CREDIT AUTHORIZED BY THIS SECTION SHALL EQUAL THREE THOUSAND DOLLARS PER HIRED INDIVIDUAL FOR THE FIRST YEAR OF EMPLOYMENT AND AN ADDITIONAL ONE THOUSAND DOLLARS IF THE INDIVIDUAL REMAINS IN EMPLOY FOR AN ADDITIONAL TWELVE MONTHS. (3) APPLICATION OF CREDIT. THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF THE AMOUNT PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVISION ONE OF SECTION TWO HUNDRED TEN-B OF THIS CHAPTER. IF, HOWEVER, THE AMOUNT OF CREDITS ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT THUS NOT DEDUCTIBLE IN SUCH TAXABLE YEAR SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION ONE THOUSAND EIGHTY-SIX OF THIS CHAPTER. PROVIDED, HOWEVER, THE PROVISIONS OF SUBSECTION (C) OF SECTION ONE THOUSAND EIGHTY-EIGHT OF THIS CHAPTER NOTWITHSTANDING, NO INTEREST SHALL BE PAID THEREON. S 4. This act shall take effect on the same date and in the same manner as part A of chapter 59 of the laws of 2014 takes effect and shall apply to taxable years beginning on and after January 1, 2015 and shall apply to those employees hired after this act shall take effect.

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