Empire State Apprenticeship Tax Credit
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 2026.
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 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 representative in your area.
This program is focused on in-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.
Apply for the Tax Credit
Step 1: Apply
Complete and submit one online employer application for each trade. All applications must be received by the NYS Department of Labor no later than December 31, 2023.
Step 2: Claim the Incentive
Fill out this form: https://webapps.labor.ny.gov/dews/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) during the year. All Employer Final Report forms must be received by the NYS Department of Labor no later than December 31, 2023. If you need more information, please contact the New York State Department of Labor at [email protected] or by phone at 877-226-5724.
For additional help, please call 877-226-5724 or email: [email protected].
Direct Entry may be used by sponsors of Registered Apprenticeship programs as another way to bring apprentices into their programs. It is a tool to help sponsors reach underrepresented populations and to meet their EEO goals. Direct Entry provides individuals who successfully complete an apprenticeship preparation program, and who meet the minimum requirements for a NYS Registered Apprenticeship program, with the direct opportunity for an interview with the sponsor of a program.
National Direct Entry programs like Helmets to Hardhats and Job Corps are recognized by USDOL and do not require NYSDOL’s approval. State and local Direct Entry Programs must be approved by NYSDOL.
Sponsors wishing to use an approved Direct Entry Program must identify it in their Affirmative Action Plan (AT603 form) and should work with their Apprentice Training Representative to obtain approval.
More information on Direct Entry as well as a list of approved Direct Entry Programs can be found on our Direct Entry page.