Bill > S02429

This bill creates a work opportunity tax credit (WOTC) for businesses in New York that hire individuals from targeted groups, allowing taxpayers subject to specific tax articles to claim a credit based on qualified wages paid to eligible employees. The credit is modeled after federal Internal Revenue Code Section 51 and can be claimed by businesses under articles 9-A, 22, and 33 of the state tax law, with a maximum credit of $500 per eligible employee per year. The total lifetime tax credit is capped at $90 million, with a maximum of $30 million available per taxable year. Importantly, the wages used to calculate this credit cannot be used as the basis for any other tax credit, and the terms "qualified wages" and "targeted group" will have the same meaning as in the federal tax code. The tax credit will be effective from January 1, 2026, and will expire on December 31, 2028, applying to wages paid to individuals hired during this period. If the credit exceeds the taxpayer's tax liability, the excess can be treated as an overpayment and credited or refunded, though no interest will be paid on such overpayments.

Budget and Finance, Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S2429