New York to receive share of $2.5 million tax credit grant

WASHINGTON, D.C. (NEWS10) – New York State is set to receive $325,000 from the U.S. Department of Labor as part of its Work Opportunity Tax Credit grant scheme. The money is intended to help states streamline the process and deal with certification requests more efficiently.

The grant is designed to incentivize workplace diversity and facilitate access to good jobs for American workers, but has hit a backlog in several states.

“The U.S. Department of Labor is committed to helping states that are in need of upgrading their Work Opportunity Tax Credit processing systems or conducting other activities to reduce their backlogs to ensure U.S. employers can benefit from the Federal tax credit.”

John Pallasch
Assistant Secretary of the Employment & Training Administration

The Federal tax credit available to employers who intend to hire individuals from certain targeted groups: including qualified veterans, ex-felons, qualified long-term unemployment recipients and individuals who receive Supplemental Nutrition Assistance Program benefits. The Department of Labor says all of these groups have consistently faced significant barriers to employment.

The following 12 states, all of which have significant processing backlogs, will receive a share of $2.5 million.

• New York, New Jersey, Indiana and California will each receive $325,000
• Connecticut, Kansas, North Carolina and Virginia will receive $200,000
• Alaska, Delaware, Idaho and Wyoming will receive $100,000