Massachusetts S 1710: An Act relative to reducing recidivism and employment discrimination against released prisoners

Bill Text

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SENATE DOCKET, NO. 869 FILED ON: 1/16/2019
SENATE . . . . . . . . . . . . . . No. 1710

The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Jason M. Lewis
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act relative to reducing recidivism and employment discrimination against released
prisoners.
_______________
PETITION OF:

NAME: DISTRICT/ADDRESS:
Jason M. Lewis Fifth Middlesex
Michael O. Moore Second Worcester 1/31/2019
Lindsay N. Sabadosa 1st Hampshire 2/4/2019

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SENATE DOCKET, NO. 869 FILED ON: 1/16/2019
SENATE . . . . . . . . . . . . . . No. 1710
By Mr. Lewis, a petition (accompanied by bill, Senate, No. 1710) of Jason M. Lewis, Michael O.
Moore and Lindsay N. Sabadosa for legislation to reduce recidivism and employment
discrimination against released prisoners. Revenue.

The Commonwealth of Massachusetts

_______________
In the One Hundred and Ninety-First General Court
(2019-2020)
_______________

An Act relative to reducing recidivism and employment discrimination against released
prisoners.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:

1 SECTION 1. Chapter 62 of the General Laws is hereby amended by inserting after
2 section 64 the following section:-
3 Section 65. (a)For each taxable year beginning on or after January 1, 2020, there shall be
4 allowed a credit against the net excise tax, as defined in section 2 of chapter 63, to a qualified
5 taxpayer who employs a qualified employee in a targeted tax area during the taxable year. The
6 credit shall be equal to the sum of each of the following:
7 (1) 50 per cent of qualified wages in the first year of employment.
8 (2) 40 per cent of qualified wages in the second year of employment.
9 (3) 30 per cent of qualified wages in the third year of employment.
10 (4) 20 per cent of qualified wages in the fourth year of employment.

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11 (5) 10 per cent of qualified wages in the fifth year of employment.
12 (b) For purposes of this section:
13 (1) “Qualified wages”, (i) Portion of wages paid or incurred by the qualified taxpayer
14 during the taxable year to qualified employees that does not exceed 150 per cent of the minimum
15 wage; (ii) Wages received during the 60-month period beginning with the first day the employee
16 commences employment with the qualified taxpayer; or (iii) Qualified wages do not include any
17 wages paid or incurred by the qualified taxpayer on or after the targeted tax credit expiration
18 date. However, wages paid or incurred with respect to qualified employees who are employed by
19 the qualified taxpayer within the targeted tax area within the 60-month period prior to the
20 targeted tax area expiration date shall continue to qualify for the credit under this section after
21 the targeted tax area expiration date, in accordance with all provisions of this section applied as
22 if the targeted tax area designation were still in existence and binding.
23 (2) “Minimum wage”, as defined in chapter 151.
24 (3) Targeted tax credit expiration date means the date the targeted tax area designation
25 expires, is revoked, is no longer binding, or becomes inoperative.
26 (4) A “targeted tax area”, Construction, food service or warehouse labor employment
27 sectors.
28 (5) “Qualified employee”, an individual who meets all of the following requirements:
29 (i) At least 90 per cent of the employee’s services for the qualified taxpayer during the
30 taxable year are directly related to the conduct of the qualified taxpayers trade or business
31 located in a targeted tax area;

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32 (ii) the employee performs at least 50 per cent of his or her services for the qualified
33 taxpayer during the taxable year in a targeted tax area;
34 (iii) the employee was hired by the qualified taxpayer after the date of original
35 designation of the area in which services were performed as a targeted tax area; and
36 (iv) the employee is an ex-offender immediately preceding the qualified employee’s
37 commencement of employment with the qualified taxpayer. An individual shall be treated as an
38 ex-offender if they were placed on probation by a commonwealth court without a finding of
39 guilty.
40 (6) “Qualified taxpayer”, a person or entity that is engaged in a trade or business within a
41 targeted tax area.
42 (c) In the case of any pass-through entity, the determination of whether a taxpayer is a
43 qualified taxpayer under this section shall be made at the entity level and any credit under this
44 section shall be allowed to the pass-through entity and passed through to the partners or
45 shareholders in accordance with applicable provisions of this part. For purposes of this
46 subdivision, the term pass-through entity means any pa