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Tax Alert: New York’s New Recovering Substance Abusers Hiring Credit

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New York State has approved $2 million of annual funding for a first-of-its-kind tax credit for employment of those recovering from substance use disorders. The Recovery Tax Credit Program, which will begin in 2020, will offer employers up to $2,000 for each eligible individual they hire and then employ for at least 500 hours in full or part-time positions.

Eligible hires are those with a substance use disorder, free from the signs and symptoms of active addiction, and have demonstrated to the employer’s satisfaction that he or she has completed a course of treatment for such substance use disorder. Additionally, employers must demonstrate that they provide a “recovery supportive environment” and have a formal working relationship with a local recovery community organization.

The Office of Alcoholism and Substance Abuse Services and the Department of Taxation and Finance will jointly administer the program, and the first applications for the program, for 2020 hires, will be due by January 15, 2021.

First Advantage’s Tax Team is always monitoring potential new incentive programs to find the right opportunities for all of our clients. If you have any questions about this, or any other incentive programs, please contact your First Advantage Tax Account Manager or your legal counsel.