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Tax Credit Requirements

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Requirements for Tax Credits

Work Opportunity Tax Credit
Welfare to Work
Workers with Disabilities Employment Tax Credit
Empire Zone Wage Tax Credit
OJT


Work Opportunity Tax Credit Requirements

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Type of tax

  Federal


Amount of credit allowable


 
Option
Credit allowable
  1. FULL-RATE (Employee works at least 400 hours) 40% of the first $6000 of qualified wages maximum $2400
       
  2. PARTIAL-RATE (Employee works at least 120 hours) 25% of the first $6000 of qualified wages maximum $1500
       
  3a. SUMMER YOUTH RATE (Employee works at least 120 hrs) 25% of the first $3000 of qualified wages maximum $750
       
  3b. SUMMER YOUTH RATE (Employee works at least 400 hrs) 40% of the first $3000 of qualified wages maximum $1200

 

Eligibility Requirements


  Employee must be hired from one of the following targeted groups:

   
  1. TANF
  2. Qualified Food Stamp Recipient
  3. Vocational Rehabilitation
  4. SSI
  5. High Risk Youth
  6. Qualified Veteran
  7. Ex Felons
  8. Qualified Summer Youth

How to Apply and Deadlines

 

 
Form to fill out
Deadline
  1. IRS Form 8850 (Certification Request) 21 days from date of hire
       
  2. NYS DOL Form 9061 (Individual Characteristic Form) ASAP
       
  3. US DOL Form 9062 (Conditional Certification) File with 8850


Welfare to Work

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Type of tax

  Federal


Amount of credit allowable


  2 year credit  
       
    1st Year Employee must work at least 400 hours or 180 days 35% of the first $10,000 of qualified wages

Maximum $3500
       
    2nd Year Employee must work at least 400 hours or 180 days 50% of the first $10,000 of qualified wages

Maximum $5000 WTW

Cannot be taken in the same year as WOTC


Eligibility Requirements

 
  • Employee must have received TANF or AFDC for a total of at least 18 months accruing back to 8/5/97 at the time of hire OR
  • Employee must have received TANF or AFDC for at least 18 consecutive months before the date of hire OR
  • Employee whose TANF or AFDC eligibility expired under federal or state law after 8/5/97

 

How to Apply and Deadlines

 

 
Form to fill out
Deadline
  1. IRS Form 8850 (Certification Request) 21 days from date of hire
       
  2. NYS DOL Form 9061 (Individual Characteristic Form) ASAP
       
  3. US DOL Form 9062 (Conditional Certification) File with 8850


Workers with Disabilities Employment Tax Credit

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Type of tax

  State


Amount of credit allowable

 
  • Can only be taken in the second year of employment. Employee must work at least 400 hours. 35% of the first $6,000 of qualified wages maximum $2,100
  • A minimum tax prevails and the credit cannot reduce the tax to less than statutory amounts under various Articles and Sections of the Tax Laws. The minimum tax ranges for $10 to $250
  • Credit is not refundable but can be carries over for and unlimited number of years

 

Eligibility Requirements

 
  • Linked with WOTC. Must be certified by VESID or CBVH as a person with a disability resulting in a handicap to employment and who has completed or is receiving services under an approved rehabilitation plan

 

How to Apply and Deadlines

 

 
Form to fill out
Deadline
  1. I WETC Application Form WETC 1-A (5-00) Complete after employee begins work
       
  2. CT 41 (NYS Claim for Credit for Employment of Persons with Disabilities) File with Tax Forms (2nd year)


Empire Zone Wage Tax Credit

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Type of tax

  State


Amount of credit allowable


  2 EZ credits  
       
    Targeted credit $3000 for targeted employees placed in newly created jobs and paid at least 135% of the state minimum wage
       
    Basic
credit
$1,500 for all other employees employed in an EZ Business
       
  In addition to the EZWTC certified business may be eligible for additional tax and other benefits such as:
  1. Corporate Tax credits on zone enterprise business
  2. Sales Tax Exemptions
  3. Real Property Tax Abatement
  4. Utility Rate Savings
  5. Verizon Discount
  6. Investment Tax Credit
  7. Low interest loans

Eligibility Requirements

Targeted credit

 
  • Employee must be a NYS resident who receives EZ Zone wages AND
  • Employee satisfies at least one of the following conditions:
    • is eligible under Federal WOTC
    • eligible under WIA
    • received Public Assistance within the previous two years, i.e., received TANF, Medicaid, Food stamps, etc.
    • has income below the poverty level
    • is a member of a family with income below the poverty level

Basic credit

 
  • Newly created job

 

How to Apply and Deadlines

 

 
Form to fill out
Deadline
  1. ES 450 (DOL) File in fiscal years of employment



OJT

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Type of program

  Workforce Investment Act (WIA)


Amount of reimbursement

 

50 % of the trainee's wages during the training period under the following conditions:

  • Limited to 6 months of total training hours not to exceed five thousand dollars ($5,000)
  • Limited to 40 hours per week unless waiver granted
  • Minimum time required for an OJT Program is 30 hours per week with a minimum wage of $7.50 per hour
  • OJT enrollment is limited to 33% of a company's workforce
  • Reimbursement is available for incumbent employees for upgrading skills. This would involve an increase of pay equal to $1.75 per hour within a 90 day period

 


Employer Eligibility & Qualifications

 
  • Must satisfy requirements of a pre-award review for relocating companies
  • Must be a legitimate company
  • Must not be involved in a current labor dispute
  • Cannot use OJT to displace or reduce hours for current employees
  • Cannot be utilized for workers previously laid off or for limiting promotional opportunities
  • If enrolled in previous OJT programs, employer must have shown satisfactory performance
  • Requires certification that employees trained would not have been hired for this occupation if not for OJT

 

Broome-Tioga Workforce Development System Services

 
  • Broome Tioga Workforce Development will pre-screen applicants
  • Assistance is provided with reimbursement procedure to assure prompt reimbursements
  • Provides assistance with a minimum of paperwork. Must satisfy requirements of a pre-award review for relocating companies

 

Application Process

 
  • Contact your OJT REPRESENTATIVE at Broome-Tioga Workforce Development System

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Broome Workforce NY Center
171 Front Street
Binghamton, NY 13905
Tel: 607.778.2136 or 607.778.3006
Fax: 607.778.6480

Tioga Workforce NY Center
1062 State Route 38
Owego, NY 13827
Tel: 607.687.8500
Fax: 607.687.8484