By hiring individuals from certain targeted groups, such as people moving from welfare to work, New York businesses can tap tax incentives that have saved thousands of businesses more than $72million in federal and state taxes since 1996.
"Businesses can tap into our bank of skilled workers to fill job vacancies, putting New Yorkers back to work," Governor Pataki said in a press release March 3. "In return, businesses receive valuable tax savings that will have a direct impact on their bottom line allowing them to employ more workers, continuing our economic expansion."
Tax credits available include:
- The federal Work Opportunity Tax Credit (WOTC) provides a credit of up to 40 percent or $2,400 on the first $6,000 in wages paid by employers for hiring and retaining eligible individuals for a minimum of 400 hours. A partial credit of 25 percent or $1,500 on the first $6,000 in wages is available to employers hiring and retaining eligible individuals for at least 120 hours but less than 400 hours.
- The Welfare-to-Work Tax Credit provides a credit of up to $8,500 over two years for each long-term welfare recipient hired and retained for a minimum of 400 hours each year. A credit of up to 35 percent or $3,500 on the first $10,000 in wages is available during the first year.
A second year credit of up to 50 percent or $5,000 is available for the first $10,000 in wages during the second year.
- Economic Development Zone and state Equivalent Zone tax credits are available to businesses in those designated areas. Businesses can get a wage tax credit for up to five years when hiring full-time employees in new jobs.
- The Workers with Disabilities Employment Tax Credit is a state initiative designed to help disabled individuals find jobs. Used with the federal government's Work Opportunity Tax Credit, businesses can claim a state tax credit of up to $2,100 for employing a disabled person who has received vocational rehabilitation services.
For more information on the tax credits, visit http://www.labor.state.ny.us/business_ny/developing_workforce/edsu/goals or call the Department of Labor Employer Hotline at 1-800-HIRE-992.