Economic Development Services Workers with Disabilities Employment Tax Credit (WETC)

What is WETC?

The Workers with Disabilities Tax Credit (WETC) is a New York State tax credit that can result in $2,100 for each individual hired. WETC is New York State's initiative to assist the disabled in securing employment. WETC is an employer-friendly benefit for businesses hiring workers with disabilities.

What are the advantages of the New York State tax credit WETC?

There is no limit to the number of hires

Employers decide whom to hire

Minimal paperwork to claim tax credit

Employers assist job seekers most in need of employment

What new hires qualify for the Workers with Disabilities Tax Credit?

An employee must meet the eligibility requirements for certification under the Work Opportunity Tax Credit (WOTC) program as a vocational rehabilitation referral, and

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 the Visually Handicapped (CBVH)

What is the amount of the tax credit?

The tax credit equals 35% of the first $6,000 in wages paid during the second year of employment. Qualified wages are counted under the federal WOTC during the first year of employment. This means the employee is required to work for the employer for two years to qualify for the WETC.

What are the applicable taxes?

The tax credit may be used to offset New York tax liability under the insurance and bank franchise tax and transportation and transmission companies taxes.

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

WETC/WOTC Partnering for Employers

The Work Opportunity Tax Credit, in conjunction with Workers with Disabilities Tax Credit, is a wonderful opportunity for employers to gain from hiring individuals with disabilities. For the first year of employment, the federal tax credit WOTC is in effect. The tax credit is 40% of the first $6,000 in wages. The state tax credit WETC is in effect for the second year of employment and the amount of the tax credit is 35% of the first $6,000 in qualified wages for that year. Therefore, when WOTC is linked with WETC the total credit possible is $4,500.