BILL NUMBER: S2429A
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:
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 50 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 tax credits will not exceed ninety
million dollars in total, or thirty million dollars for each taxable
year.
Section 2: Adds a new subdivision 61 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, "ff," 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-
lation 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 members of one of 10 targeted groups, are in their first year
of employment, are certified as members of a targeted group, and perform
at least 400 hours of services for that employer.
The targeted groups include Qualified IV-A Recipient, qualified Veteran,
Ex-Felon, Designated Community Resident, Vocational Rehabilitation
Referral, Summer Youth Employee, SNAP recipient, SSI Recipient, Long
Term Family Assistance Recipient, and Qualified Long-Term Unemployment
Recipient.
 
LEGISLATIVE HISTORY: Senate
2022: S8463B, Amended and Recommitted to Investigations and Government
Operations
2023: S4833B, Reported and Committed to Finance
2024: S4833B, Reported and Committed to Finance Assembly
2022: A9171A, Amended and Recommitted to Ways and Means
2023: A8905, Referred to Labor
2024: A8905, Referred to Labor
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on April 1, 2026, and shall apply to taxable
years beginning on and after January 1, 2026, and shall apply to wages
paid to individuals hired on an after such effective date and shall
expire and be deemed repealed on December 31, 2028.

Statutes affected:
S2429: 210-B tax law, 606 tax law, 1511 tax law