SECTION 1. Section 6 of chapter 62 of the General Laws, as most recently amended by section 72 of chapter 219 of the acts of 2016, is hereby amended by adding the following subsection:-

(u)(1) As used in this subsection, the following words shall, unless the context clearly requires otherwise, have the following meanings:-

“Eligible individual”, a person who has been released from county, state or federal incarceration, including, but not limited to incarceration in the jail of house of correction of any county in the commonwealth or the state prison, within 6 months of the date of hire.

“Existing employment opening”, an employment opening: (i) which existed prior to the employment search process of the eligible individual and (ii) in which a business previously employed an individual.

“New employment opening”, an employment opening which was created immediately prior to the employment search process of the eligible individual.

(2) A business that employs an eligible individual in an existing employment opening for 10 or more months shall be allowed a credit against the tax liability imposed by this chapter in an amount equal to $1,500. A business that employs an eligible individual in a new employment opening for 10 or more months shall be allowed a credit against the tax liability imposed by this chapter in an amount equal to $3,000.

(3) Credits under this subsection shall be allowed for the taxable year in which the employment occurs; provided, however, that in no taxable year may the amount of the credit allowed exceed the total tax due of the taxpayer for the relevant taxable year. A taxpayer allowed a credit pursuant to this subsection for a taxable year may carry over and apply against such taxpayer’s tax liability in any of the succeeding 5 taxable years, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year.

SECTION 2. Chapter 63 of the General Laws is hereby amended by inserting after section 38FF the following section:-

Section 38GG. (a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:-

“Eligible individual”, a person who has been released from county, state or federal incarceration, including, but not limited to incarceration in the jail of house of correction of any county in the commonwealth or the state prison, within 6 months of the date of hire.

“Existing employment opening”, an employment opening: (i) which existed prior to the employment search process of the eligible individual and (ii) in which a business previously employed an individual.

“New employment opening”, an employment opening which was created immediately prior to the employment search process of the eligible individual.

(b) A business that employs an eligible individual in an existing employment opening for 10 or more months shall be allowed a credit against the tax liability imposed by this chapter in an amount equal to $1,500. A business that employs an eligible individual in a new employment opening for 10 or more months shall be allowed a credit against the tax liability imposed by this chapter in an amount equal to $3,000.

(c) The credit allowed in this section for any taxable year shall not reduce the excise to less than the amount due under subsection (b) of section 39, section 67 or any other applicable section.

(d) Credits under this section shall be allowed for the taxable year in which the employment occurs. A taxpayer allowed a credit pursuant to this section for a taxable year may carry over and apply against such taxpayer’s tax liability in any of the succeeding 5 taxable years, the portion, as reduced from year to year, of those credits which exceed the tax for the taxable year.