BILL NUMBER: S4833B
SPONSOR: SKOUFIS
 
TITLE OF BILL:
An act to amend the tax law, in relation to creating a work opportunity
tax credit; and providing for the repeal of such provisions upon expira-
tion thereof
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would establish in New York State law a Worker Opportunity Tax
Credit similar to the existing federal tax credit.
 
SUMMARY OF PROVISIONS:
Section 1 adds a new section 48 to the tax law establishing a Worker
Opportunity Tax Credit, details the additional sections of the tax law
affected, and specifies to whom the tax credit would apply.
Section one also establishes that the total amount of tax credits
provided not exceed thirty million dollars.
Section 2 adds a new subdivision 59 to section 210-B of the tax law
detailing the allowance and application of the Worker Opportunity Tax
Credit therein, also clarifies it shall not exceed more than $500 per
employee per year in a tax year and is not refundable.
Section 3 adds a new subdivision "bbb" to section 606 of the tax law
detailing the allowance and application of the Worker Opportunity Tax
Credit therein, also clarifies it shall not exceed more than $500 per
employee per year in a tax year and is not refundable.
Section 4 adds a new subdivision "cc" to section 1511 of the tax law
detailing the allowance and application of the Worker Opportunity Tax
Credit therein, also clarifies it shall not exceed more than $500 per
employee per year in a tax year and is not refundable.
Section 5 establishes the effective date and sets the expiration date.
 
JUSTIFICATION:
The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available
to employers for hiring individuals from certain targeted groups that
have consistently faced significant barriers to employment. Data shows
that New York underutilizes the federal Worker Opportunity Tax Credit
incentive program. New York's ratio of WOTC-certified employees to popu-
lations is the lowest of the 18 states with the largest number of WOTC
certified employees.
The WOTC may be claimed by any employer that hires and pays or incurs
wages to certain individuals who are certified by a designated local
agency as being a member of one of 10 targeted groups and
*is in their first year of employment;
*is certified as being a member of a targeted group; and
*performs at least 400 hours of services for that employer.
The targeted groups include, Qualified IV-A Recipient, qualified Veter-
an, Ex-Felon, Designated Community Resident, Vocational Rehabilitation
Referral, Summer Youth Employee, SNAP recipient. SSI Recipient, Long
Term Family Assistance Recipient, Qualified Long-Term Unemployment
Recipient.
 
LEGISLATIVE HISTORY:
Senate
2021-2022: S8463B, Amended and recommitted to Investigations and Govern-
ment Operations
Assembly
2021-2022: A9171A, Amended and recommitted to Ways and Means
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on April 1, 2025 and shall apply to taxable
years beginning on and after January 1, 2025 and shall apply to wages
paid to individuals hired on an after such effective date and shall
expire and be deemed repealed December 31, 2027.

Statutes affected:
S4833: 210-B tax law, 606 tax law, 1511 tax law
S4833A: 210-B tax law, 606 tax law, 1511 tax law
S4833B: 210-B tax law, 606 tax law, 1511 tax law