June 4, 2012

New York Youth Works Program

New York Youth Works Program Tax & Business

On December 9, 2011, Governor Andrew M. Cuomo signed into law “The New York Youth Works Program” in an effort to combat excessively high unemployment rates among inner city youths.This statewide initiative is designed to encourage businesses to hire disadvantaged and unemployed youth by allowing tax credits of up to $4,000 for hiring eligible individuals during 2012.To be eligible, employees have to be between ages 16 to 24, certified to participate in the program and live in one of the following areas of New York State:

Cities of:

  • Albany
  • Buffalo
  • New York City
  • Rochester
  • Schenectady
  • Syracuse
  • Mount Vernon
  • New Rochelle
  • Utica
  • Yonkers; and

Towns of:

  • Brookhaven and
  • Hempstead

To participate in this program, businesses must have certification from NYS Department of Labor, which can be obtained at www.jobs.ny.gov/youthworks. To qualify for certification, businesses must satisfy eligibility requirements which include:

  • to be in good legal standing
  • situated within a reasonable commuting distance for youth who live in specified areas and
  • fill job openings that meet one of three conditions
    • Considered an in-demand occupation,
    • Located in a regional growth sector,
    • Deemed a priority for the area’s Regional Economic Development Council.

Tax credits vary depending on the type of position. For full-time employees, (35 hours or more a week) eligible businesses may be entitled to credits up to $4,000 as follows: $500 per month for the first six months of the year and additional $1,000 if the youth is employed for the remaining six months. For part-time employees, (20-34 hours per week) the maximum tax credit allowed is $2,000, which consists of $250 per month for the initial six months and $500 more if the youth is employed beyond first six months of the year.

Businesses interested in participating in the program, should keep in mind that NYS has set aside only $25 million in available tax credits for this program. Those considering applying should act quickly in order to meet the deadline which is set for November 30, 2012.

Should you have further questions related to this program and how it might work for your business, please contact your Marcum Tax Professional.

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