The Developmental Disabilities Tax Credit (DDTC) program provides tax credits to for-profit/not-for-profit businesses/organizations that hire individuals with developmental disabilities. The maximum tax credit is:

  • $5,000 for Full-time employment (30 hours or more per week), based on 15% of the individual’s wages paid after January 1, 2015 for a period of employment no less than six months; and
  • $2,500 for Part-time employment (between 8 hours and 30 hours per week), based on 10% of the individual’s wages paid after January 1, 2015 for a period of employment no less than six months.

If the amount of the credit exceeds the entity’s tax liability, then the tax credit may be carried over for the following three years.

In addition, a business/organization cannot claim this tax credit on a hired individual if they claim another tax credit on the individual.

Applicable Parties: For-profit/not-for-profit businesses/organizations must be approved by the New York State Department of Labor (NYSDOL) to participate in the program. Upon approval, NYSDOL will send the businesses/organization a Certificate of Eligibility for their records.

To receive approval the entity must: (1) be located in New York State, (2) be in good standing; and (3) complete an application.

With regard to the application; the authorizing legislation for the DDTC programs requires businesses and/or organizations to apply by November 30, 2014. Therefore, this application is a two-step process.

  • Step 1 – The business/organization must have a valid NYS Unemployment Insurance account as of November 30, 2014. This step allows any business/organization with a valid NYS Unemployment Insurance account to have met the November 30th deadline.
  • Step 2 – The businesses/organization must complete a DDTC Business/Organization Application, which can be completed any time after November 30, 2014 deadline.

The authorizing legislation also requires the NYS Education Department or the NYS Office of People with Developmental Disabilities to certify individuals for whom the tax credit will be claimed. These agencies are working through their network of providers to assist and certify individuals wishing to participate in the program, and will use the Individual Application to do this.

For More Information:

NYS Department of Labor – Workers with Disabilities Tax Credit

NYS Department of Labor –  Developmental Disabilities Tax Credit Program

Contact: New York State Department of Labor at WWDDTC@labor.ny.gov or 877.226.5724