The recently enacted FY 2018 New York State budget (AB 3009/SB 2009, enacted April 10, 2017), renames the Urban Youth Jobs Program the New York Youth Jobs Program (hereafter, "youth jobs program") and allocates $200 million to extend the program through 2022. This program recently expanded eligibility to all employers throughout the state hiring eligible part-time or full-time employees aged 16 to 24.

Background

Beginning in 2012, the youth jobs program encouraged businesses to hire unemployed, disadvantaged youth by supporting job training and employment opportunities. In 2016, statutory changes were enacted to expand eligibility to participate in the youth jobs program to all employers in the state with the aim to broaden the path for youth to gain job and career training by working for employers certified through the New York State Department of Labor (NYDoL). Under the current youth jobs program, certified employers may earn a refundable tax credit for hiring employees aged 16 to 24 who are screened and certified to participate in the program. Additionally, the NYDoL will refer certified youth to eligible business as well as certify appropriate youth candidates. Employers must submit an application by November 30 annually, and the employees must start work from January 1 through December 31 of the year in which the tax incentives are allocated.

Refundable tax credit available for all employers

The benefit recognized by New York employers is a refundable tax credit up to $5,000 for eligible full-time employees (35+ hours per week) and $2,500 for eligible part-time employees (20-34 hours per week/10 hours per week if enrolled in high school). Employers must be certified by November 30, 2017, to be eligible for this credit but can claim credit for wages paid to eligible employees hired since January 1, 2017 and screened before December 31, 2017. Funding is available on a first-come, first-served basis and the benefit to certified employers is as follows:

— Up to $5,000 for eligible full-time employees (35+ hours per week)

— $3,000 ($500 per month for up to six months), plus

— $1,000 if the eligible youth is retained an additional six months, plus

— $1,000 if the eligible youth is retained for a second full year of employment

— Up to $2,500 for eligible part-time employees (20-34 hours per week/10 hours per week if enrolled in high school)

— $1,500 ($250 per month for up to six months), plus

— $500 if the eligible youth is retained an additional six months, plus

— $500 if the eligible youth is retained for a second full year of employment

Eligibility

Youths must complete a certification form for eligibility and meet the following criteria:

— Be 16 to 24 years of age

— Be unemployed

— Reside in the State of New York

— Either meet an "at-risk" factor or affirm that they "feel disadvantaged compared with their peers for any reason"

Implications

New York employers interested in claiming the credit available under the youth jobs program should review the revised eligibility requirements to determine whether they qualify for the credit and, if so, complete and submit a certification form before the November 30 deadline.

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