N.Y. Tax Law § 187-a: Credit for employment of persons with disabilities

§ 187-a. Credit for employment of persons with disabilities. 1.

Allowance of credit. A taxpayer shall be allowed a credit, to be

computed as hereinafter provided, against the taxes imposed by this

article, other than the taxes imposed by sections one hundred

eighty-six-a, one hundred eighty-six-e and one hundred eighty-nine of

this article, for employing within the state a qualified employee.

Provided, however, the amount of credit allowed by this section against

the tax imposed by section one hundred eighty-four of this article shall

be the excess of the credit computed under this section over the amount

of credit allowed by this section against the tax imposed by section one

hundred eighty-three of this article.

2. Qualified employee. A qualified employee is an individual:

(a) who is certified by the education department, or in the case of an

individual who is blind or visually handicapped, by the state agency

responsible for provision of vocational rehabilitation services to the

blind and visually handicapped: (i) as a person with a disability which

constitutes or results in a substantial handicap to employment and (ii)

as having completed or as receiving services under an individualized

written rehabilitation plan approved by the education department or

other state agency responsible for providing vocational rehabilitation

services to such individual; and

(b) who has worked on a full-time basis for the employer who is

claiming the credit for at least one hundred eighty days or four hundred

hours.

3. Amount of credit. Except as provided in subdivision four of this

section, the amount of credit under this section shall be thirty-five

percent of the first six thousand dollars in qualified first-year wages

earned by each qualified employee. "Qualified first-year wages" means

wages paid or incurred by the taxpayer during the taxable year to

qualified employees which are attributable, with respect to any such

employee, to services rendered during the one-year period beginning with

the day the employee begins work for the taxpayer.

4. Credit where federal work opportunity tax credit applies. With

respect to any qualified employee whose qualified first-year wages under

subdivision three of this section also constitute qualified first-year

wages for purposes of the work opportunity tax credit for vocational

rehabilitation referrals under section fifty-one of the internal revenue

code, the amount of credit under this section shall be thirty-five

percent of the first six thousand dollars in qualified second-year wages

earned by each such employee. "Qualified second-year wages" means wages

paid or incurred by the taxpayer during the taxable year to qualified

employees which are attributable, with respect to any such employee, to

services rendered during the one-year period beginning one year after

the employee begins work for the taxpayer.

5. Carryover. In no event shall the credit under this section be

allowed in an amount which will reduce the tax payable to less than the

applicable minimum tax fixed by section one hundred eighty-three or

former section one hundred eighty-six of this article. If, however, the

amount of credit allowable under this section for any taxable year

reduces the tax to such amount, any amount of credit not deductible in

such taxable year may be carried over to the following year or years and

may be deducted from the taxpayer's tax for such year or years.

6. Coordination with federal work opportunity tax credit. The

provisions of sections fifty-one and fifty-two of the internal revenue

code, as such sections applied on October first, nineteen hundred

ninety-six, that apply to the work opportunity tax credit for vocational

rehabilitation referrals shall apply to the credit under this section to

the extent that such sections are consistent with the specific

provisions of this section, provided that in the event of a conflict the

provisions of this section shall control.