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NYS Department of Labor -
Economic development services

Purpose

Federal and state tax credits are available to businesses for hiring qualified individuals. These tax credits can mean substantial savings to New York State businesses. The Economic Development Services Program includes the following tax credit programs:

 

  • The New York Youth Works Tax Credit (NYYW) is a New York State tax credit designed to encourage businesses to hire unemployed, disadvantaged youth.  The program supports job training and employment for eligible youth ages 16 to 24, who live in certain areas of New York State and who are certified to participate. The tax credits can result in between $2,000 and $4,000 for each individual hired. The tax credit only applies to hiring employees, ages 16 to 24, who are certified to participate in the program. The Department of Labor will refer certified youth or help you get youth certified.

  • The Work Opportunity Tax Credit (WOTC) is a federal tax credit designed to promote the hiring of individuals who qualify as a member of a target group; for example, employers can receive up to $2,400 in federal tax savings for hiring low-income individuals with barriers to employment.  Two additional target groups have been established as part of the American Recovery and Reinvestment Act of 2009.  These new groups cover unemployed veterans and disconnected youth who begin working for an employer in 2009 and 2010.  To apply for the WOTC credit, businesses complete and submit two simple forms within 28 days of the new hire’s first day of work.

  • The Workers with Disabilities Tax Credit (WETC) is a New York State tax credit that can result in $2,100 for each individual hired. WETC is New York State's initiative to assist the disabled in securing employment. WETC is an employer-friendly benefit for businesses hiring workers with disabilities: there is no limit to the number of hires, minimal paperwork is required, businesses decide whom to hire. The Work Opportunity Tax Credit, in conjunction with Workers with Disabilities Tax Credit, is a great opportunity for businesses to gain from hiring individuals with disabilities. For the first year of employment, the federal tax credit WOTC is in effect. The tax credit is 40% of the first $6,000 in wages. The state tax credit WETC is in effect for the second year of employment and the amount of the tax credit is 35% of the first $6,000 in qualified wages for that year. Therefore, when WOTC is linked with WETC the total credit possible is $4,500.

 

Eligibility

To qualify for the NYYW credit, businesses must first be certified by the NYS Department of Labor. Businesses must be in good legal standing, located within a reasonable commuting distance for youth who live in the applicable areas, and filling job openings that are considered an in-demand occupation, in a regional growth sector, or deemed a priority for the area’s Regional Economic Development Council.  Please see the link above for more information. 

 

To qualify businesses for the WOTC and WETC credits, individuals must be verified as members of a targeted group. The groups include Temporary Assistance for Needy Families (TANF) recipients, disabled individuals, residents of federal empowerment zones, renewal communities or rural counties, ex-felons, Social Security Insurance recipients, low-income individuals ages 18-39 receiving the Supplemental Nutrition Assistance Program (SNAP), Long-Term Family Assistance recipients, unemployed veterans and disconnected youth.  Additional eligibility may apply.  Please see the links above for more information. 

Contact

NYS Department of Labor
(888) 4-NYSDOL

(888) 469-7365

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