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Overview
Chapter 142 of the NY Tax Law allows a credit for employment of persons with disabilities. In order to claim the credit, the qualified employee must be certified.
A qualified employee is an employee who:
- qualifies as a vocational rehabilitation referral for purposes of the federal work opportunity credit under IRC section 51 (see federal Form 5884);
- has worked for the employer on a full-time basis for at least 180 days or 400 hours (does not need to be continuous); and
- is certified by the New York State Education Department’s Office of Vocational and Educational Services for Individuals with Disabilities (VESID), or by the State of New York Office of Children and Family Services’ Commission for the Blind and Visually Handicapped (CBVH), as a person with a disability that constitutes or results in a substantial handicap to employment and who has completed or is receiving services under an individualized written rehabilitation plan approved by VESID or by CBVH.
Credit Amounts
The New York credit amount is 35% of the first $6,000 of qualified first-year wages or qualified second-year wages. A credit of up to $2,100 per employee is available.
If the federal work opportunity credit for vocational rehabilitation referrals under IRC section 51 (see federal Form 5884) is not in effect for an employee, the credit is 35% of the first $6,000 of the employee’s qualified first-year wages.
If the federal work opportunity credit for vocational rehabilitation referrals under IRC section 51 (see federal Form 5884) is in effect for an employee, the credit is 35% of the first $6,000 of the employee’s qualified second-year wages.
Eligibility
The following taxpayers are eligible to claim this credit:
- transportation and transmission corporations taxable under Article 9 sections 183 and 184;
- utility corporations taxable under Article 9 section 186;
- business corporations taxable under Article 9-A; and
- insurance corporations taxable under Article 33.
