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Empire State Apprenticeship Tax Credit (ESATC)

  • Important – the deadline to apply for the Empire State Apprenticeship Tax Credit (ESATC) Program has been extended to January 15, 2020. To participate in the ESATC, employers must submit an Employer Application form and one Employer Final Report form for each apprentice being claimed no later than January 15, 2020.

The Empire State Apprenticeship Tax Credit (ESATC) provides tax incentives to certified New York State (NYS) Registered Apprenticeship (RA) program sponsors (for group programs, the Tax Credit program is also available to the sponsor’s approved participating signatory employers) for hiring new qualified apprentices on or after January 1, 2018. The tax credit is available through 2022.

A certified employer will be entitled to tax credits against income or franchise tax for each qualified apprentice. Enhanced credits are offered to those who employ disadvantaged youth as apprentices and for those programs who engage the support of a mentor. Qualified apprentices must be employed full-time (a minimum of 35 hours per week) for at least six months during the tax year.

To become certified for this tax credit, you must be a qualified employer. A qualified employer is a sponsor (or for group programs, approved participating signatory employers) of an active or probationary NYS RA program. If you are not already a NYS RA sponsor, please contact the New York State Department of Labor to establish a RA program. Go to: https://labor.ny.gov/apprenticeship/contactus.shtm

This program is focused on demand occupations throughout the state but excludes construction trades. RAs in the field of construction are not eligible unless the trade is to be used for the upkeep and maintenance of a facility owned by the business entity employing the apprentice, such as plant maintenance trades.

For more details on the ESATC, please see the Fact Sheet.

Step 1: How do I apply for the ESATC?

Complete and submit one online Employer Application for each trade at the following link: https://www.labor.ny.gov/apprenticeship-tax-credit/employer-application. All applications must be received by the NYS Department of Labor no later than December 31, 2019.

Step 2: How do I claim the ESATC?

Fill out this form: https://labor.ny.gov/apprenticeship-tax-credit/final-report/

Simply access the online Employer Final Report form by clicking on the link above. You must submit one Employer Final Report form for each apprentice you are claiming after they have worked full-time for at least six months (35 hours per week). All Employer Final Report forms must be received by the NYS Department of Labor no later than December 31, 2019. If you need more information, please contact the New York State Department of Labor at [email protected] or by phone at 877-226-5724.

Frequently Asked Questions (FAQs) - ESATC

Please see answers to FAQs. Still need help? Please call 877-226-5724 or e-mail: [email protected].
The 2018 Empire State Apprenticeship Tax Credit Annual Report can be found here.

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