N.Y. Mental Hygiene Law § 32.38: The recovery tax credit program

§ 32.38 The recovery tax credit program.

(a) Authorization. The commissioner is authorized to and shall

establish and administer the recovery tax credit program to provide tax

incentives to certified employers for employing eligible individuals in

recovery from a substance use disorder in part-time and full-time

positions in the state. The commissioner is authorized to allocate up to

two million dollars of tax credits annually for the recovery tax credit

program beginning in the year two thousand twenty.

(b) Definitions. 1. The term "certified employer" means an employer

that has received a certificate of tax credit from the commissioner

after the commissioner has determined that the employer:

(i) provides a recovery supportive environment for their employees

evidenced by a formal working relationship with a local recovery or

treatment provider certified by the office to provide support for

employers including any necessary assistance in the hiring process of

eligible individuals in recovery from a substance use disorder and

training for employers or supervisors; and

(ii) fulfills the eligibility criteria set forth in this section and

by the commissioner to participate in the recovery tax credit program

established in this section.

2. The term "eligible individual" means an individual with a substance

use disorder as that term is defined in section 1.03 of this chapter who

is in a state of wellness where there is an abatement of signs and

symptoms that characterize active addiction and has demonstrated to the

qualified employer's satisfaction, pursuant to guidelines established by

the office, that he or she has completed a course of treatment or is

currently in receipt of treatment for such substance use disorder. A

relapse in an individual's state of wellness shall not make the

individual ineligible, so long as such individual shows a continued

commitment to recovery that aligns with an individual's relapse

prevention plan, discharge plan, and/or recovery plan.

(c) Application and approval process. 1. To participate in the program

established by this section, an employer must, in a form prescribed by

the commissioner, apply annually to the office by January fifteenth to

claim credit based on eligible individuals employed during the preceding

calendar year. As part of such application, an employer must:

(i) Agree to allow the department of taxation and finance to share its

tax information with the office of alcoholism and substance abuse

services. However, any information shared because of this agreement

shall not be available for disclosure or inspection under the state

freedom of information law.

(ii) Allow the office of alcoholism and substance abuse services and

its agents access to limited and specific information necessary to

monitor compliance with program eligibility requirements. Such

information shall be confidential and only used for the stated purpose

of this section.

(iii) Demonstrate that the employer has satisfied program eligibility

requirements and provided all the information necessary, including the

number of hours worked by any eligible individual, for the commissioner

to compute an actual amount of credit allowed.

2. (i) After reviewing the application and finding it sufficient, the

commissioner shall issue a certificate of tax credit by March

thirty-first. Such certificate shall include, but not be limited to, the

name and employer identification number of the certified employer, the

amount of credit that the certified employer may claim, and any other

information the commissioner of taxation and finance determines is

necessary.

(ii) In determining the amount of credit that any employer may claim,

the commissioner shall review all claims submitted for credit by

employers and, to the extent that the total amount claimed by employers

exceeds the amount allocated for the program in that calendar year,

shall issue credits on a pro-rata basis corresponding to each claimant's

share of the total claimed amount.

(d) Eligibility. A certified employer shall be entitled to a tax

credit equal to the product of one dollar and the number of hours worked

by each eligible individual during such eligible individual's period of

employment. The credit shall not be allowed unless the eligible

individual has worked in state for a minimum of five hundred hours for

the certified employer, and the credit cannot exceed two thousand

dollars per eligible individual employed by the certified employer in

the state. The certified employer may claim a credit for each eligible

employee starting on the day the employee is hired and ends on December

thirty-first of the immediately succeeding calendar year or the last day

of the employee's employment by the certified employer, whichever comes

first. If an employee has worked in excess of five hundred hours between

the date of hiring and December thirty-first of that year, an employer

can elect to compute and claim a credit for such employee in that year

based on the hours worked by December thirty-first. Alternatively, the

employer may elect to include such individual in the computation of the

credit in the year immediately succeeding the year in which the employee

was hired. In such case, the credit shall be computed on the basis of

all hours worked by such eligible individual from the date of hire to

the earlier of the last day of employment or December thirty-first of

the succeeding year. However, in no event may an employee generate

credit for hours worked in excess of two thousand hours. An employer may

claim credit only once with respect to any eligible individual and may

not aggregate hours of two or more employees to reach the minimum number

of hours.

(e) Duties of the commissioner. The commissioner shall annually

provide to the commissioner of the department of taxation and finance

information about the program including, but not limited to, the number

of certified employers then participating in the program, unique

identifying information for each certified employer, the number of

eligible individuals employed by each certified employer, unique

identifying information for each eligible individual employed by the

certified employers, the number of hours worked by such eligible

individuals, the total dollar amount of claims for credit, and the

dollar amount of credit granted to each certified employer.

(f) Certified employer's taxable year. If the certified employer's

taxable year is a calendar year, the employer shall be entitled to claim

the credit as shown on the certificate of tax credit on the calendar

year return for which the certificate of tax credit was issued. If the

certified employer's taxable year is a fiscal year, the employer shall

be entitled to claim the credit as shown on the certificate of tax

credit on the return for the fiscal year that includes the last day of

the calendar year covered by the certificate of tax credit.

(g) Cross references. For application of the credit provided for in

this section, see the following provisions of the tax law:

1. Article 9-A: Section 210-B, subdivision 53.

2. Article 22: Section 606, subsection (jjj).

3. Article 33: Section 1511, subdivision (dd).