NY Youths Work Program – Tax Credit 2012

In an effort to encourage businesses in selected areas within the State of New York to hire unemployed, disadvantage youth Governor Andrew Cuomo signed the NY Youth Works Program into law.  The program will offer a tax credit to businesses who hire eligible youths ages 16 to 24 to support job training and employment.

In order to be eligible for the credit, businesses must register for certification with the NYS Department of Labor by November 30, 2012.  Certification may be subject to approval based upon the company’s compliance with state and federal laws and regulations, its location in relation to the target areas, job openings available, and other factors.  Priority will be given to businesses who offer advancement and employee benefit packages.

For participation in the program, youths between the ages of 16 to 24 years old must be unemployed and live in the Towns of Brookhaven or Hempstead; or the cities of Albany, Buffalo, New York, Rochester, Schenectady, Syracuse, Mount Vernon, New Rochelle, Utica, or Yonkers.   Additionally, the youth must meet one of the following conditions:

  • 18 years old, no longer in school, and doesn’t have a high school diploma or a GED certificate
  • A member of a family that is receiving assistance from Temporary Assistance for Needy Families (TANF)
  • A member of a family that is receiving SNAP benefits (food stamps)
  • A member of a family that is receiving Supplemental Security Income (SSI) benefits
  • Receiving a free or reduced-cost school lunch
  • Was referred by a rehabilitation agency approved by the State, or an employment network under the Ticket to Work Program
  • Has served in jail or prison – or are on probation or parole
  • Is pregnant or a parent
  • Is homeless
  • Is currently or was in foster care or the custody of the Office of Children and Family Services
  • Is a veteran
  • Is the daughter or son of a parent who is currently in jail or prison, or has been within the past two years
  • Is the daughter or son of a parent who is collecting unemployment insurance
  • Lives in public housing or receive housing assistance such as a Section 8 voucher

 

A business who hires an employee (who is certified to participate in the program) between January 1, 2012 and December 31, 2012, is eligible for a maximum tax credit of $4,000 ($2,000 for a part-time position). The credit is calculated at a rate of $500 per month for six months with an additional $1,000 if the youth is retained for one full year.  The credit is calculated half of said amount for part-time employment.  The credit is applied against the NYS Franchise Tax on Business Corporations (or against their annual tax filing for partnerships and Limited Liability Companies).  Any portion of the credit that exceeds the company tax liability may be received as a refund.

If you need more information on the NY Youths Work Program, please contact our office.  Additionally, employers may seek more information by contacting the New York State Department of Labor at info@youthworks.ny.gov or by phone at 1-877-226-5724.

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