New York: Tax Credit for Hiring Recovering Substance Abusers


All Employers with NY Employees


January 1, 2020


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The state budget for 2020 includes an Employer Recovery Hiring Tax Credit. Specifically, employers will receive a credit of up to $2,000 for each person in drug abuse recovery it employs, including in full-time and part-time positions. Eligible employees are those who have worked a minimum of 500 hours for the employer, have a substance use disorder, are in a state of wellness without signs and symptoms of active addiction, and have completed a course of treatment or are being treated for the substance use disorder.

To be certified for the tax credit, employers must provide a recovery-supportive environment for their employees evidenced by a formal working relationship with a state-certified, local recovery or treatment provider. Employers must also apply for the credit by January 15th each year for credits claimed in the previous year. Applications for the first year of the tax credit are due by January 15, 2021 for credits claimed during the 2020 tax year. A tax credit certificate will be issued by March 31st if approved.

Action Items

  1. Review Part W of Bill No. S1509-C
  2. Have substance abuse policies reviewed for coordination with hiring recovering substance abusers.
  3. Prepare for implementing recovery-supportive procedures and application deadlines.
  4. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

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