Res 1037-2016

By Council Members Cornegy, Cumbo, Rose, Richards, Salamanca, Espinal, Cabrera, Palma, Maisel, Chin, Mendez and Koslowitz Whereas, While New York City's unemployment rate has been declining since its peak during the midst of the Great Recession, as of January 2016 it still remained higher than the federal unemployment rate; and Whereas, In January 2016, New York City's unemployment rate was 5.9%, as reported by the New York State Department of Labor, compared to the federal unemployment rate of 4.9%, as reported by the United States Department of Labor; and Whereas, Moreover, the unemployment rate varies from borough to borough, with the unemployment rate in January 2016 in the Bronx at 8.1%, Staten Island and Brooklyn each at 6%, Queens at 5.2%, and Manhattan at 5.1%, according to the New York State Department of Labor; and Whereas, In order to address unemployment in the City and to promote economic development within the City's communities, small businesses should receive a tax incentive to encourage them to hire employees from within the communities in which they are located; and Whereas, Such tax incentive could be modeled after existing federal and New York State tax credits that reward businesses that hire employees from a specific pool of workers; and Whereas, On the federal level, the Work Opportunity Tax Credit ("WOTC") offers employers a federal tax credit to hire from a targeted group of job seekers with barriers to employment, including veterans, people with disabilities, individuals receiving certain types of public assistance, ex-felons, and youth; and Whereas, The maximum credit ranges from $2,400 to $9,600, depending on the type of employee hired; and Whereas, In December 2015, President Obama signed an appropriations bill that renewed the WOTC through December 31, 2019; and Whereas, The legislation also expanded the category of job seeker to include job seekers who are long-term unemployment compensation recipients; and Whereas, New York offers the Hire-A-Veteran, Workers with Disabilities, and Urban Youth Jobs Programs Tax Credits; and Whereas, The Hire-A-Veteran Tax Credit is available to businesses that hire veterans in an amount of up to $15,000 for disabled veterans hired and $5,000 for non-disabled veterans hired; and Whereas, The Workers with Disabilities Tax Credit provides a credit up to $5,000 per full-time employee with a disability and $2,500 per part-time employee with a disability hired; and Whereas, The Urban Youth Jobs Program Tax Credit provides a credit up to $5,000 for full-time youth and $2,500 for part-time youth hired; and Whereas, Similarly, a tax credit could be provided to small businesses in New York City that hire employees from their local communities; and Whereas, Encouraging small businesses to hire locally would also serve to strengthen the City's diverse neighborhoods and deepen residents' investment and commitment in their communities; now, therefore, be it Resolved, That the Council of the City of New York calls upon the State Legislature to pass, and the Governor to sign, legislation that would create a tax incentive for small businesses to hire from within the communities in which they are located. RC LS #6606 3-17-16 3 1