Overview
The first program of its kind in the nation helps to rid the workplace of the stigma surrounding addiction and increase employment opportunities for New Yorkers in recovery. All eligible employers can apply to receive up to $2,000 of tax credit per eligible employee hired in the current tax year, and/or the year immediately prior to that, if hours are aggregated over two years. Applications must be filed by January 15th of the year immediately following the tax year the credit is being claimed for.
This tax incentive granted to certified employers, who pay corporate finance taxes in NYS, for employing eligible individuals in recovery from a substance use disorder in part-time or full-time positions in NYS and is administered via the Request for Applications (RFA) process. The Recovery Friendly Workplace Tax Credit will be calculated at the rate of $1.00 per hour with a maximum amount of $2,000 per eligible individual. The program in its entirety is limited to a maximum of $2 million. OASAS reserves the right to reduce the amount of a tax credit certificate on a pro-rata basis corresponding to each claimant's share of the total claimed amount. Overpayment: If the amount of the credit issued under this subsection for any taxable year exceeds the taxpayer’s tax for the taxable year, the excess shall be treated as an overpayment of tax to be credited or refunded, provided, however, no interest will be paid thereon.
Eligible Employers
Eligible employers are any entities which pay corporate finance taxes and have a demonstrated ability of:
- Providing a recovery supportive environment
- Assisting individuals in recovery with the hiring process
- Providing training for all employees and supervisors.
- Having a documented working relationship with a local treatment organization certified by OASAS in the community where employees work
Contact us and we will make it as simple as possible to understand and meet the eligibility requirements.
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Eligible Employees
Eligible employees include individuals with a Substance Use Disorder who:
- Have been hired in the current tax year, and/or the year immediately prior to that, if hours are aggregated over two years.
- Are in a state of wellness where there is an abatement of signs and symptoms of active addiction, to the satisfaction of the employer
- Have completed a course of treatment or is currently in receipt of treatment for such substance use disorder.
A relapse in an individual’s state of wellness does not make that individual ineligible, so long as the individual shows a continued commitment to recovery that aligns with their relapse prevention plan, discharge plan, and/or recovery plan.
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FAQs
- Can individuals apply for a tax credit on their own individual taxes? Or is this for a corporate tax benefit, that the facility applies for?
This is a tax credit for businesses that pay corporate taxes. It would not be applicable for an individual’s personal tax return or for businesses that do not pay corporate taxes.
- When do employees need to be hired and how many hours do they need to work for their employer to be eligible for the tax cut?
To be an eligible employee you would need to be in or completed an OASAS treatment program, hired by an eligible employer in the current tax year, and/or the year immediately prior to that, if hours are aggregated over two years and work 500 -2,000 hours.
- If my employee relapses will I lose the tax credit?
No, a return to use by the eligible employee has no effect on the tax credit. Employers are expected to work with employees with SUD, as they would with any other employee with a chronic illness. However, employees would still need to meet the minimum hours of employment to be eligible.
- Must employees sign off when receiving the training requirements?
Employers should keep records of when the training was provided and to whom. A sign-in sheet for these sessions that includes that date and printed names of employees would be enough. It should be available should OASAS need to audit an employer.
- What if the tax credit exceeds my employer tax for the taxable year?
If tax credit exceeds employer’s tax for the taxable year, your tax credit will be treated as an overpayment and credited or refunded to you.
- What does it mean in the RFA when it says, “Assist individuals in recovery with the hiring process?”
One example could be a new employee has never completed a W2 to assist them with the completion of forms.
- If someone were to claim 500 hours in one tax year for an employee, can they claim the additional 1500 in the next tax year for the same employee?
No, the credit can only be claimed once per employee. However, if the employer expects the employee to reach an additional 1500 hours in the next year, they can wait to claim the credit in that year, counting the 500 hours from the previous year.
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Contact Recovery Tax Credit Program
Contact us and we will make it as simple as possible to understand and meet the eligibility requirements.