Institutional Federal Compliance Report 2021

80 • Notes to Basic Financial Statements __________________________________________________________________________ Program Name . . . . . . . . . . . . . . . . . . . . . . . . Industrial Development Agencies (IDAs) New York Youth Jobs Program (Formerly Urban Youth Job Program) Program Purpose . . . . . . . . . . . . . . . . . . . . . . The program is intended to foster economic development in specific localities. The program is designed to provide employment for at-risk youth in full-time and part-time positions. Taxes being abated . . . . . . . . . . . . . . . . . . . . Sales and use tax. Personal income tax and Corporate franchise tax. Authority under which abatements are entered into . . . . . . . . . . . . . . . . . . . . . State tax law: Article 28, Section 1116(a)(1) General municipal law: Article 18-A State tax law: Article 22, Section 606(tt) Article 9-A, Section 210-B(36)

Criteria to be eligible to receive abatements and commitment of the taxpayer . . . . . . . .

The IDA is an exempt government organization and receives all the benefits of that status. To extend the sales tax exemption benefit, the IDA can appoint an agent or project operator to make purchases for its project.

The taxpayer applies to be a qualified employer and receives a certificate of eligibility indicating the maximum amount of credit allowed to be claimed. The employer is required to hire high school students on a part-time or full-time basis and to retain those students for a period of time.

How taxes are reduced . . . . . . . . . . . . . . . . . Sales tax exemption on purchases.

Allowance of credit against taxes. Refundable credit.

How amount of abatement is determined . . . . Purchases to acquire, build and equip the project are exempt from sales taxes, including the 3/8 percent sales tax in the Metropolitan Commuter Transportation District (MCTD), to the extent provided by the terms of the IDA project agreement.

The credit is $250 to $1,000 per qualified employee, either part-time or full-time high school student, and additional amounts can be received if the employee is retained for additional time.

Provisions for recapturing abated taxes . . . . . N/A

N/A

Type of commitments other than taxes . . . . . . N/A

N/A

Total revenue estimated to be reduced for calendar year 2018 . . . . . . . . . $88 million

$40 million