Assemblymember Harry Bronson, Senator James Skoufis Fight for ‘Work Opportunity Tax Credit’ to Address Workforce Shortages and Increase Equity in New York’s Economy

Today Senator James Skoufis (SD42) and Assemblymember Harry Bronson (AD138) held a press conference in Albany to fight for the Work Opportunity Tax Credit (“WOTC”) to be included in the FY ‘26 state budget. The Work Opportunity Tax Credit (S2429/A4012) will create a $90 million dollar investment over three-years to increase participation in New York’s workforce, countering both the employment shortages affecting businesses and addressing anti-poverty in some of New York’s most marginalized populations.

The legislation has broad support from the Black, Puerto Rican, Hispanic and Asian Legislative Caucus, the Business Council of New York, regional Chambers of Commerce, organized labor, the NAACP, and veterans’ and social service agencies - all of which point to WOTC as a meaningful strategy for reducing barriers to employment. Today’s press conference also included speakers from New York State Industries for the Disabled, Inc. (NYSID), AFL-CIO’s Capital District Area Labor Federation (CDALF), and New York business owners.

“The federal work opportunity tax credit has proven its effectiveness at employing hard to reach segments of society,” said Senator Skoufis. "Despite my skeptical eye when it comes to tax incentives, individuals from historically marginalized or disenfranchised groups have an opportunity for better employment because of this program, and employers have the opportunity to hire a diverse workforce with a myriad of experiences and skills - both vital benefits in today's world. At a moment when there are so many federal programs at risk, now is the time to introduce a state credit and ensure New Yorkers of all stripes can get to work. I'm proud to sponsor this bill once again alongside Assemblymember Bronson and I look forward to seeing this get done.”

“We know that a good job with benefits is the most important tool for lifting people and families out of poverty. We also know that our business community is seeking qualified workers to address historic workforce shortages. Including the Work Opportunity Tax Credit in the budget is a collaborative solution to building an inclusive, diverse economy and stronger, more prosperous New York,” said Assemblymember Harry Bronson, Chair of Labor. “I am proud to sponsor this legislation alongside Senator Skoufis, with support from the Black, Puerto Rican, Hispanic and Asian Legislative Caucus, the Business Council of New York State, organized labor, the NAACP, and many legislative and community partners, as we work towards a more equitable workforce.”

If passed, WOTC will implement a NYS version of an existing federal tax credit that can be claimed by any employer, of any size – including small businesses - that hires workers who are certified by a designated local agency, such as DOL, as being a member of one of 10 groups recognized as historically marginalized from the economy and/or safety net program recipients.

Identified groups include:

Quailed IV-A Recipient
Qualified Veteran
Designated Community Residents (DCR)
Vocational Rehabilitation Referrals
Summer Youth Employees
Supplemental Security Income (SSI) Recipients
Supplemental Nutrition Assistance Program (SNAP) recipients
Qualified Long-Term Unemployed
Formerly Incarcerated Individuals
Long-term Family Assistance Recipients
Qualified Long-Term Unemployment Recipients
The New York version of WOTC honors the federal tax credit and increases the total tax credit amount by $500 for each eligible individual hired. The maximum federal credit for many WOTC categories is $2,400. The additional $500 credit increases the overall value of the credit by 20% to help subsidize the increasing recruitment, training, and wage costs that employers are struggling with in NYS.

Supporters also point to the potential for WOTC to have a positive impact on affordability for New York’s small businesses. In 2024 nearly every state showed some small business growth, with two exceptions: West Virginia, which saw no growth year over year, and New York, which saw a .05% decline compared to the year prior.

“Programs like these allow our state’s economy to grow while improving the lives of individuals who pay taxes and live in the communities where they work. Many of our members, especially those struggling to find talent, have long-supported programs such as the WOTC that reduce barriers because these incentives lead to a larger pool of individuals seeking work.” Paul Zuber, Executive Vice President - The Business Council of New York State, Inc.

In Rochester, which makes up a significant portion of Assemblymember Bronson’s district, up to 1/3 of citizens live below the federal poverty line. WOTC could make significant inroads towards including underserved and underrepresented populations in the workforce and has gained widespread support from anti-poverty advocates as well as Greater Rochester Chamber of Commerce.

“At a time when we’re seeing workforce shortages across industries, it’s imperative we seek solutions that incentivize connecting talented workers with our employers. That is why Greater Rochester Chamber is proud to support the Work Opportunity Tax Credit and help ensure those who have historically faced barriers to employment find dignified work and set them on the career path they deserve.” Bob Duffy, CEO Greater Rochester Chamber of Commerce.

The New York State Black, Puerto Rican, Hispanic, and Asian Legislative Caucus included WOTC in their FY ‘25-26 budget priorities and endorsed the legislation as a necessary catalyst for bringing much-needed change to disadvantaged communities, pointing to the positive effect it will have on the whole of New York’s economy. NAACP echoes this support.

“We need to create positive, sustained economic growth in New York State,” said Senator Samra. G. Brouk, who also represents sections of Rochester. “The Work Opportunity Tax Credit can uplift historically disadvantaged residents by offering new work opportunities and providing financial stability. This legislation also plays a critical role in addressing workforce shortages, paving the way for prosperity and positive change across the state.”