New York tax law (Article 9-A, Section 210-B.36) provides a credit to participating businesses who hire unemployed, disadvantaged youth aged 16-24 and reside in New York State. The youth must be certified to participate in the program and start work between January 1st and December 31st of each program year. Businesses must also be certified to participate in the program. Businesses must complete an online application by November 30th each year and must re-certify each year thereafter. If approved, the DOL will issue a preliminary certificate of eligibility that will state the maximum amount of tax credit allowed. Employers will now be required to submit an annual report to DOL, due on or before January 31st. If DOL approves the report and eligibility requirements, it will issue a final certificate of tax credit. The program is authorized through 2022.
Full Time (35+ hours per week) $7,500 max
- $750 per month, maximum six months ($4,500 maximum);
- $1,500 if the youth is retained for six months beyond the first six months of employment (employed one full year); and
- $1,500 if the youth is retained for a second full year of employment.
Part Time (20-34hrs/wk or 10-34 hrs/wk if enrolled in High School) $3,750 max
- $375 per month, maximum six months ($2,250 maximum);
- $750 if the youth is retained for six months beyond the first six months of employment (employed one full year); and
- $750 if the youth is retained for a second full year of employment.
To qualify for the tax credit, businesses must:
- Have physical locations in New York State that are in good legal standing
- Be subject to tax under Articles 9-A and 22; however, credit is not allowed against the metropolitan transportation business tax (MTA surcharge) under Article 9-A
- Be certified to participate in the program
- Employ certified youth ages16-24 residing in New York State
- Have received a certificate of tax credit from the NYS Department of Labor