|
Home : Businesses : Tax Credit Requirements
Businesses
Tax Credit Requirements

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
[ Top ][ Calculator Input ]
Type of tax
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:
|
| |
|
- TANF
- Qualified Food Stamp Recipient
- Vocational Rehabilitation
- SSI
- High Risk Youth
- Qualified Veteran
- Ex Felons
- 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 [ Top ][ Calculator Input ]
Type of tax
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
[ Top ][ Calculator Input ]
Type of tax
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
[ Top ][ Calculator Input ]
Type of tax
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:
- Corporate Tax credits on zone enterprise business
- Sales Tax Exemptions
- Real Property Tax Abatement
- Utility Rate Savings
- Verizon Discount
- Investment Tax Credit
- 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
How to Apply and Deadlines
| |
Form to fill out |
Deadline |
| |
1. |
ES 450 (DOL) |
File in fiscal years of employment |
OJT
[ Top ][ Calculator Input ]
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
|
[ Back to Calculator Input ]
|