New York State Tax Credits

New York Youth Jobs Program Tax Credit

Overview:
This tax credit incentivizes businesses to hire eligible youth (ages 16–24) by offering up to $7,500 per full-time employee or $3,750 per part-time employee. It supports workforce development while helping employers offset their New York State tax liability.

Who It’s For:
New York employers—including corporations, S-corps, partnerships, and individuals—who hire certified youth during the calendar year and are approved by the New York State Department of Labor.

Four Key Highlights:

1. Earn Up to $7,500 per Youth Hire
   Full-time hires can generate up to $7,500 in credits; part-time hires up to $3,750 based on duration and hours worked.

2. Annual Certification Is Required
   Employers must be pre-approved by November 30 of the program year and receive a final certificate from the NYS Department of Labor.

3. Credit Can Be Refunded or Carried Forward
   Any unused credit can be refunded or applied to the next year—though it cannot reduce tax below the fixed minimum or apply to the MTA surcharge.

4. Covers Youth Ages 16–24 in Qualifying Jobs
   Applies to eligible young people hired between January 1 and December 31 in designated program years (e.g., Program 13 covers 2025 hires)

Empire State Apprenticeship Tax Credit Program

Overview:
This program provides refundable tax credits to New York State employers who hire and train registered apprentices, with increased benefits for employing disadvantaged youth and providing mentorship. Employers can earn up to $7,000 per apprentice annually.

Who It’s For:
New York State employers—subject to corporate or personal income tax—participating in certified apprenticeship programs and employing full-time apprentices for at least six months.

Four Key Highlights:

1. Annual Tax Credits Up to $7,000 per Apprentice
   Standard apprentices can generate $2,000–$6,000 per year, while disadvantaged youth apprentices yield $5,000–$7,000, depending on the year of apprenticeship.

2. $500 Bonus for Mentorship
   Employers earn an additional $500 per apprentice if a mentor is assigned for the full year.

3. Refundable Credit with No Carryover Limitations
   Unused credits may be refunded or applied to the following year (no interest), offering flexible benefit realization.

4. Annual Application Deadline is December 31
   Employers must apply through the NY Department of Labor, obtain a final certificate, and file Form CT-650 or IT-650 with their state return.

New York Employee Training Incentive Program (E-TIP) Tax Credit

Overview:
The E-TIP Tax Credit rewards New York businesses for investing in workforce development through employee training or strategic internships in high-demand sectors. Companies can earn tax credits covering up to 50% of qualified training costs or intern stipends.

Who It’s For:
New York-based businesses in strategic industries—like advanced tech, clean energy, life sciences, or software development—looking to upskill employees or offer internships and willing to invest capital in related training initiatives.

Four Key Highlights:

1. Earn Up to $10,000 Per Trained Employee
   Receive a tax credit equal to 50% of training expenses—capped at $10,000 per eligible employee completing qualified training.

2. Internship Credit Up to $3,000
   Businesses with fewer than 100 employees may also claim 50% of intern stipends, up to $3,000 per intern in approved fields.

3. Must Be Pre-Approved by ESD
   Companies must apply through Empire State Development and receive a tax credit certificate before claiming the credit.

4. Refundable or Carryforward Eligible
   If the credit exceeds your tax due, it can be refunded or applied to the next tax year—providing flexibility in how you benefit.

New York Employer-Provided Childcare Credit

Overview:
This credit rewards New York employers who support working parents by providing or funding childcare services or facilities. Businesses can claim up to $500,000 annually by covering on-site childcare costs, contracting with third-party childcare providers, or offering referral services—doubling the value of the federal credit.

Who It’s For:
New York-based employers—including corporations, partnerships, and sole proprietors—who invest in employee childcare support either through direct facilities, service contracts, or referral programs.

Four Key Highlights:

1. Double the Federal Credit
   Earn 50% of qualified childcare expenses and 20% of childcare resource/referral costs, thanks to New York’s 200% match of the federal IRC Section 45F credit.

2. Covers a Broad Range of Costs
   Qualifies expenditures include:

   • Facility construction or renovation

   • Training staff and offering scholarships

   • Third-party childcare contracts

   • Referral service programs

3. Generous $500,000 Annual Cap
   Businesses can claim up to $500,000 per year, making this an impactful credit for mid-sized to large companies with childcare initiatives.

4. Refundable or Carryforward Option
   If the credit exceeds your tax liability, you can receive a refund or carry it forward to future tax years (excluding MTA surcharge and minimum tax limits).

New York State Investment Tax Credit (ITC)

Overview:
The New York ITC rewards businesses for investing in qualified property used in manufacturing, agriculture, research, and select industries. It provides a tax credit based on the cost of tangible property placed in service in New York and is enhanced by the Employment Incentive Credit (EIC) if job growth follows.

Who It’s For:
C corporations and corporate partners subject to NYS Article 9-A, including manufacturers, farmers, R&D firms, and qualifying film production companies that invest in depreciable property within the state.

Four Key Highlights:

1. Flexible Credit Rates for Targeted Industries

   • Standard property: 5% credit on the first $350M; 4% thereafter

   • R&D property: 9% credit

   • Farmers: 20% credit for qualifying ag equipment and facilities

2. Employment Incentive Add-On
   If your workforce grows post-investment, earn an additional 1.5%–2.5% credit over two years based on the percentage increase in employment.

3. 15-Year Carryforward or Refund Option

   • Unused ITC may be carried forward for 15 years (10 years for S-Corp shareholders)

   • New businesses and farmers may elect a refund instead of carryforward

4. Strict Usage & Recapture Rules

   • No double-dipping with other NYS credits (e.g., Brownfield, Film, or Commercial Production)

   • Recapture required if the property is sold, stolen, or goes out of qualified use before the end of its useful life

New York Long-Term Care Insurance Credit

Overview:
The New York Long-Term Care Insurance Credit offers a 20% tax credit to taxpayers who pay premiums on qualified long-term care policies. Designed to support proactive health planning, this credit can significantly reduce state tax liability for both individuals and businesses.

Who It’s For:
New York individuals, corporations, partnerships, S corporations, and LLCs that pay for qualified long-term care insurance—either directly or through pass-through entities.

Four Key Highlights:

1. 20% Credit on Premium Payments
   Applies to premiums paid during the tax year for qualified long-term care policies approved under NY Insurance Law § 1117(g) or IRC § 7702B.

2. Broad Applicability Across Entity Types

   • C Corps and combined filers: Use Form CT-249

   • S Corps: Pass credit to shareholders via CT-34-SH

   • Individuals and partners/members: Use Form IT-249

3. No Refund, But Infinite Carryforward
   The credit cannot lower your tax below the minimum liability and is not refundable, but can be carried forward indefinitely until fully used.

4. Not Applicable to MTA Surcharge
   This credit cannot offset the Metropolitan Transportation Business Tax and must be applied in line with specific Article-based minimum tax thresholds.

New York City Unincorporated Business Tax (UBT) Credit

Overview:
The NYC UBT Credit provides relief to residents taxed on business income earned through partnerships, estates, or trusts subject to the Unincorporated Business Tax. Eligible taxpayers can claim a percentage of the UBT paid, with full credit available for lower-income earners and a phase-out at higher income levels.

Who It’s For:
NYC full- or part-year resident individuals, estates, or trusts that are:

• Owners, partners, or beneficiaries of entities subject to the NYC UBT.

Four Key Highlights:

1. Sliding Scale Credit Based on NYC Taxable Income

   • 100% credit for income ≤ $42,000

   • 23% credit for income ≥ $142,000

   • Gradual phase-out between $42,000–$142,000

2. Applies Only to NYC Personal Income Tax
   Can only reduce your NYC personal tax liability—not refundable and no carryforward of unused amounts.

3. Detailed Allocation Rules for Part-Year Residents & Joint Filers
   Allocation required if you lived in NYC for only part of the year or file jointly with a nonresident spouse.

4. Form IT-219 Required with Supporting Documentation
   Complete IT-219 and attach it to your NYS tax return along with relevant NYC UBT returns (e.g., NYC-204, NYC-202).