New York Youth Works Tax Credit Fact Sheet

Contact: Margaret Moree
December 9, 2011

A new tax credit was approved by the Legislature to promote the hiring of at-risk youth across New York State. The tax credit is available for a limited period of time to employers. This fact sheet is intended to give employers a snapshot of the credit that can be used as part of your business planning for 2012.

Employer Requirements:

  • Must be pre-qualified by the New York State Department of Labor (NYSDOL), on a form and process set by the NYSDOL Commissioner
  • Application must be submitted after January 1, 2012 but no later than June 30, 2012
  • New hires must be paid equivalent wages for similar jobs with appropriate adjustments for experience; they cannot be used to replace a position that was terminated
  • Employers are ineligible if they reduce their workforce solely for the purpose of accessing the tax credit
  • The Commissioner may set additional rules on industry preferences, including for “in demand occupations” and those sectors identified as regional growth sectors by the regional economic development councils.* Statute specifically references clean energy, healthcare, advanced manufacturing and conservation as possible preferential sectors
  • Preference may be given to employers who offer advancement and employee benefit packages to qualified employees.

Employee Requirements:

Must be pre-qualified, through a process set by the NYSDOL Commissioner

  • Between the ages of 16-24
  • Low Income OR at-risk, both terms to be defined by NYSDOL
  • Resides in one of ten cities with a population¬† > 62,000; or one of two towns with a population > 480,000**
  • Must start employment on or after January 1, 2012, but no later than July 1, 2012.¬†

Tax Credit:

  • $500 per month for up to six months for each qualified employee in a full-time job
  • $250 per month for up to six months for each qualified employee in part-time job, defined as 20 hours per week
  • $1,000 for each qualified employee who is employed for at least an additional 6 months by that employer in a full-time job
  • $500 for each qualified employee retained an additional six months by the qualified employer in a part-time job of at least 20 hours per week.

Tax Credit Terms:

  • Tax years beginning on or after January 1, 2012 and January 1, 2013
  • Refundable tax credit, meaning that any unusable credit is treated as a refundable overpayment of taxes in the year they were earned.
  • Eligibility is limited to taxpayers subject to the corporate franchise and personal income tax, including C & S Corporations, partnerships, LLPs and LLCs.

*See table below for a snapshot of regional growth sectors

** See table below for a listing of cities and towns which meet this threshold, based on The Business Council’s analysis of recent U.S. Census Bureau data.

Growth Sectors Identified by Regional Economic Development Councils
NYC Regional Growth Sector Checkmark
(health)
Checkmark  
(technology)
Checkmark Checkmark    
Long Island Checkmark Checkmark Checkmark       Checkmark   Checkmark  
Mid Hudson Valley Checkmark Checkmark Checkmark              
Capital Region Checkmark     Checkmark Checkmark          
Mohawk Valley Checkmark     Checkmark Checkmark Regional Growth Sector
(back office)
       
Finger Lakes Checkmark Checkmark Checkmark   Checkmark   Checkmark      
Western NY Checkmark Checkmark     Checkmark   Checkmark     Checkmark
Central NY Checkmark Checkmark     Checkmark Checkmark Checkmark      

 

Albany Capital Region
Buffalo Western NY
Mount Vernon Mid Hudson Valley
New Rochelle Mid Hudson Valley
New York New York City
Rochester Finger Lakes
Schenectady Capital Region
Syracuse Central New York
Utica Mohawk Valley
Yonkers Mid Hudson Valley
Town of Hempstead Long Island
Town of Brookhaven Long Island

Other Workforce-Related Investments included as part of Budget Package:

  • $8.2 million awarded by NYSDOL through competitive RFPs for youth employment readiness training grants and stipends
  • $2 million for SUNY’s ATTAIN Lab Program, which offers over 32 occupational, academic and self-development courses to TANF and low-wage workers up to 200 percent of federal poverty level
  • $1 million for Center for Employment Opportunities, which help ex-offenders reintegrate into the community and workforce
  • $7 million for facilitated enrollment in subsidized child care for low-wage workers across New York State
  • $9 million to be allocated to SUNY, CUNY and the State Education Department for a variety of purposes intended to expand services for the educationally and economically disadvantaged including the Liberty Partnership Program, the HEOP program, and C-STEP awards
  • $2.5 million for the Career Pathways Program operated by the Office of Temporary & Disability Assistance. Services are provided through not-for-profits and CBOs to link education and occupation training to subsequent employment. Eligible participants are no-wage, low-wage New Yorkers
  • $2.5 million for displaced homemaker centers and services
  • $25 million for the 2013 summer youth employment program operated across the state.