Workers with Disabilities Employment Tax Credit

Print Close

General Information Links Prerequisites Additional Notes Disclaimer

General information

[back to top]

Agency: Labor, Department of (STATE) Description: The Workers with Disabilities Tax Credit (WETC) assists the disabled in securing employment by providing a tax credit for hiring eligible employees. The tax credit equals 35% of the first $6,000 in wages paid to the employee during the second year of employment, resulting in up to $2,100 in tax credits per individual hired. Employers decide which employees to hire, and there is no limit to the number of hires under this program. The tax credit may be used to offset New York tax liability. WETC/WOTC Partnering for Employers Generally employers use the federal Work Opportunity Tax Credit (WOTC) and the WETC sequentially to claim benefits for qualified employees during the first 24 months of employment (for more information on the WOTC, see Links to Application Materials below). For the first year of employment, the federal tax credit WOTC is in effect. The WOTC tax credit is 40% of the first $6,000 in wages, or $2,400 per qualified employee. The state tax credit WETC is in effect for the second year of employment. The amount of the WETC tax credit is 35% of the first $6,000 in qualified wages for that year, or up to $2,100 per employee. Therefore, when WOTC is linked with WETC the total credit possible per employee is $4,500. It is NOT necessary to have claimed the WOTC in order to claim the WETC. However, the WETC can only be claimed during the second year (months 13-24) of employment. Employer’s seeking to claim the WETC must file the WETC Pre-screening Application (WETC 1-A, see Links to Application Materials below) prior to submitting the claim for the credit. Any unused portion may be carried back one year and / or forward on future tax returns for an unlimited amount of time until the credit is used, whichever comes first.

Links

[back to top]

Prerequisites

[back to top]

1.  Employees must meet the eligibility requirements for a certification under the Work Opportunity Tax Credit (WOTC) program. Eligibility is confirmed either through receipt of the WOTC during the first 12 months of employment, or by submitting the WETC Pre-screening Application (see Links to Application Materials above). 2.  Employees must be certified by the New York State Education Department’s Office of Vocational and Educational Services for Individuals with Disabilities (VESID) or be certified by the Office of Children and Family Services’ Commission for the Blind and Visually Handicapped.

Additional notes

[back to top]

	The tax credit applies to tax years beginning after 1997 and to individuals who began to work for an employer after 1996.

Disclaimer

[back to top]

This page provides general information only. The information does not address all relevant regulatory requirements of City, State or Federal Agencies, nor does it address requirements with which the business must comply on an ongoing basis. It is the business owner's responsibility to meet all City, State and Federal requirements. Failure to comply with all applicable laws and regulations may result in fines or in the suspension and/or revocation of licenses or permits, or other penalties as allowed by law. Please note that this information is not legal advice; you can only obtain legal advice from a lawyer. For more information or assistance, please contact the issuing Agency, using the contact information above, or call 311 (or 212-NEW-YORK if outside of New York City).