New York Youth Works Tax Credit Fact Sheet
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
- Employee Requirements
- Tax Credit
- Tax Credit Terms
- Growth Sectors Identified by Regional Economic Development Councils
- Other Workforce-Related Investments included as part of Budget Package
- 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.
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.
- $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 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.
|City or Town||Regional Economic
|Mount Vernon||Mid Hudson Valley|
|New Rochelle||Mid Hudson Valley|
|New York||New York City|
|Syracuse||Central New York|
|Yonkers||Mid Hudson Valley|
|Town of Hempstead||Long Island|
|Town of Brookhaven||Long Island|
- $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.