Res 0576-2024

Whereas, New York City has welcomed a significant number of newly arrived immigrants over the past two years who want to join New York City's workforce; and Whereas, However, according to reporting from the New York State Comptroller's office, the New York State immigrant workforce is below its 2015 peak; and Whereas, The Comptroller's report also notes that in 2023, the City had 10,000 fewer immigrants than in 2015; and Whereas, Several industries in the City rely heavily on foreign born workers including construction, which has been facing a significant shortage, transportation and utilities, and manufacturing, but contributions made by immigrants extend beyond these industries; and Whereas, A 2024 report from the Immigration Research Initiative estimated that in the first year after an immigrant's arrival, for each 1,000 newly arrived immigrant workers, state and local tax revenue would increase by $2.6 million; and Whereas, However, integration into the workforce without the proper training can be complicated for new arrivals and workforce development is key to ensuring stability, safety, and growth in the workplace; and Whereas, According to the Center for an Urban Future, with the influx of new arrivals, workforce development providers have been struggling to meet the increasing demand for their services, and waitlists are growing; and Whereas, The demand for workforce development services continues to increase and without resources available to support this demand, new arrivals may struggle to find employment even after obtaining work permits; and Whereas, New York City businesses have expressed interest in hiring new arrivals with work authorization, but if new arrivals require workforce development and training, businesses may be less likely to hire them, particularly if they do not have the resources to provide workforce development training themselves; and Whereas, However, if certain businesses are incentivized to create workforce development and training programs, the growing demand for these services can begin to be met; and Whereas, Tax credits are often utilized to incentivize businesses, with one recent example being the Biotechnology Tax Credit; and Whereas, The Biotechnology Tax Credit was created by state law for qualified biotechnology companies in the City and can be applied to the business corporation tax, the general corporation tax, and the unincorporated business tax; and Whereas, In 2023, the New York State Legislature passed S.4009C/A.3009C, that allowed New York City to renew this credit, which covers certain expenses of biotechnology companies; and Whereas, The Biotechnology Tax Credit's goal is to encourage the growth of small life-science companies and support job creation; and Whereas, This tax credit model could be applied to New York City businesses to develop and provide workforce development and training; and Whereas, Successful integration into the workforce requires the proper resources, and once those resources are accessed they can provide stability for new arrivals and eventually growth for the City's economy; now, therefore, be it Resolved, That the Council of the City of New York calls on the New York State Legislature to introduce and pass, and the Governor to sign, legislation amending the tax law to authorize the City of New York to offer a tax credit for businesses to incentivize the creation of workforce development and training programs for newly arrived immigrants. LS #17392 09/12/2024 RLB