NY · Tax Credit

New York Workforce Training Tax Credits: What Employers Can Claim

The federal Work Opportunity Tax Credit (WOTC) has lapsed for hires after December 31, 2025. As of the latest federal source we found, Congress has not extended it, though past lapses were fixed retroactively. New York's Hire a Veteran Credit is current for veterans hired before January 1, 2028. The Workers with Disabilities Employment Tax Credit (WETC) is listed by NYSDOL, but it depends on WOTC-style certification, so confirm its status with NYSDOL before relying on it.

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State pre-filled: NY
Program type pre-filled: tax_credit

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HOW IT WORKS

Four steps, in this order.

1
Screen new hires on or before their start date and keep records
2
For WOTC, file Form 8850 within 28 days only if Congress reinstates it
3
For the NY veteran credit, employ the veteran 12 continuous months
4
Claim the credit in the tax year the 12 months are completed

3 VERIFIED PROGRAMS

Where the New York money comes from.

Run by NYS Department of Taxation and Finance (credits), NYSDOL (WOTC and WETC certification), IRS (WOTC). Every figure is from an official page, linked on each card.

Work Opportunity Tax Credit (federal)

Lapsed for 2026 hires, $2,400 max when active

LAPSED

WHAT YOU GET

Normally 40% of up to $6,000 of first-year wages, a maximum of $2,400 per hire, more for some veterans. Currently not available for hires after 2025.

HOW MUCH

$2,400 maximum per hire in normal years. No new credit can be claimed for wages paid after December 31, 2025, unless Congress extends it.

WHO RECEIVES THE MONEY

The employer, as a federal tax credit, via NYSDOL certification.

WHO QUALIFIES

Hire certified in a targeted group
400 hours of work for the full credit, 120 hours for a partial credit

Before you start: Yes. Certification request to NYSDOL within 28 days of start.

NY Hire a Veteran Credit

15% of wages, up to $15,000 per veteran

OPEN THROUGH 2027 HIRES

WHAT YOU GET

A credit of 15% of first-12-month wages, or 20% for a disabled veteran.

HOW MUCH

Up to $15,000 full time or $7,500 part time. Disabled veteran: up to $20,000 full time or $10,000 part time.

WHO RECEIVES THE MONEY

The employer, as a non-refundable New York tax credit. Unused credit can be carried forward three years.

WHO QUALIFIES

Subject to tax under Tax Law Article 9-A, 22 or 33
Qualified veteran hired before January 1, 2028
Employed in New York 12 continuous months, full or part time

Before you start: No state pre-approval stated in the instructions. Keep the employee affidavit and records.

Workers with Disabilities Employment Tax Credit (WETC)

35% of second-year wages, up to $2,100

STATUS UNCERTAIN, CONFIRM

WHAT YOU GET

35% of the first $6,000 of second-year wages, up to $2,100 per hire. NYSDOL has described it as pairable with WOTC, which is currently lapsed.

HOW MUCH

$2,100 per hire. Applies against the insurance and bank franchise taxes and transportation and transmission company taxes, per NYSDOL.

WHO RECEIVES THE MONEY

The employer, as a New York tax credit in the second year of employment.

WHO QUALIFIES

Hire meets WOTC vocational rehabilitation referral rules
Certified by ACCES-VR or the Commission for the Blind and Visually Handicapped
Employee works for you two years

Before you start: Yes. Certification required, and NYSDOL offers a pre-screening form.

AVOID THESE

What gets New York Tax Credit claims denied.

Claiming WOTC for wages paid after 2025 while it is lapsed.
SOURCE: IRS.GOV
States cannot certify WOTC during a lapse.
SOURCE: CONGRESS.GOV
Veteran credit: not employing the veteran for 12 continuous months.
SOURCE: TAX.NY.GOV
WETC: no two-year employment, or no vocational rehabilitation certification.
SOURCE: DOL.NY.GOV

STRAIGHT ANSWERS

New York Tax Credit questions.

Is WOTC available for hires in 2026?

Not now. The credit covers only people who began work on or before December 31, 2025. As of September 2026 we found no law renewing it. Congress has reinstated it retroactively after past lapses, so keep screening and check the IRS page.

SOURCE: CONGRESS.GOV

Does NYSDOL still describe WOTC?

Yes, its hiring incentives page still describes WOTC at up to $2,400 and does not mention the lapse. Treat the IRS and CRS sources as current.

SOURCE: DOL.NY.GOV

Is the NY Hire a Veteran Credit refundable?

No, but unused amounts can carry forward three years under the form instructions.

SOURCE: TAX.NY.GOV

Can we stack WOTC and WETC?

NYSDOL has said yes for eligible hires: WOTC in year one and WETC in year two, for up to $4,500. WOTC is currently lapsed, so only the WETC part may be available; confirm with NYSDOL.

SOURCE: DOL.NY.GOV

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on September 30, 2026. Where a board publishes nothing, we say so instead of guessing. Programs and funding change often; confirm with the program before you commit. Written by Jason Meehl, founder of Reimbursa. Found an error? Email hello@reimbursa.com.

OTHER PROGRAMS IN NEW YORK

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