Congressman Joins with Local Elected Leaders and Business Leaders to Encourage Employers to Use the Federal Work Opportunity Tax Credit to Hire Young People Ages 16 -24.

Although summer has already started, Congressman Charles Rangel is encouraging employers to use the federal Work Opportunity Tax Credit to hire young people not just for the summer, but also throughout the entire year.

The tax credit for businesses helps provide employers with a one-time federal credit for each newly hired, eligible youth ages 16-17, now through September 15 and for young adults 18 through 24 for the first year.

"This is not just an opportunity to fill an employment need, but also a chance to provide young people with an experience that can propel them to greater success. That is why the Work Opportunity Tax Credit is so important," said Rangel. Employers are given a valuable resource to fill needed summer and part-time positions while our youth are provided with productive activities that help keep them out of trouble and enhance their credentials for entering the job market."

Congressman Rangel joins with local elected officials, business and community leaders to urges employers to use federal tax credits to hire summer youth. Photo Credit: Wyzmenn Media Group

The press conference took place on Tuesday, July 8 after a 10 a.m. groundbreaking for Candace House, an alternative incarceration residence for women run by the Greenhope Services for Women. (http://www.greenhope.org/)

BUILDING A COALITION FOR OUR YOUTH

Rangel, Chairman of the powerful Ways and Means Committee, was joined at a East Harlem Press Conference Tuesday July 8 by New York State Department of Labor Executive Deputy Commissioner Mario Musolino, New York City Department of Youth and Community Development Commissioner (DYCD) Jeanne B. Mullgrav, Partnership for NYC President and CEO Kathryn Wylde.

Also in attendance was a host of elected and community leaders including New York City Council members Inez Dickens and Melissa Mark-Viverito, NYS Assemblyman Keith Wright and Adam Clayton Powell IV, NYS Senators Bill Perkins and Jose Serrano, Upper Manhattan Empowerment Zone CEO Kenneth Knuckles and Greater Harlem Chamber of Commerce President and CEO Lloyd Williams.

Musolino, representing NYS Department of Labor Commissioner Patricia Smith, thanked the Congressman for his efforts in getting not just the WOTC passed but also extending the unemployment benefits for thousands of New Yorkers. Together, both measures provide an opportunities for growth that will not only impact a person's life, but also strengthen our economy.

"In today’s uncertain economic times, employers need to take advantage of every incentive to enhance their competitiveness, and Work Opportunity Tax Credits may save them a considerable amount of money," said Commissioner Smith. "These tax credits also encourage employers to hire young people, who face an unusually tough job market in this economic climate."

Speakers stressed the importance of having teems unemployed, with Commissioner Mullgrav pointing out studies that show that teens who work in high school are much more likely to remain in school, have lower pregnancy rates and on average earn significantly higher wages throughout their lifetime.

It is an opportunity that an increasing number of teens want to have. According to Mullgrav, there was a 10 percent jump in applications to the city's Summer Youth Employment program in 2008. However, although 103,000 applicants applied, only 42,000 were able to receive jobs.

"We know that a tough economy hits teens especially hard. The Work Opportunity Tax Credit provides employers with a financial incentive to hire young people and take advantage of their energy and fresh ideas," said Mullgrav. "Working together, the public and private sectors can start our young people on the path to academic achievement and success in an increasingly competitive job market."

The coalition of community and business leaders wanted to get the word out about the WOTC because it is still largely underutilized across the city and state. While over 25,000 eligible youth live in Upper Manhattan, only 479 businesses have used the credit over the last two years.

"The city's talent pool is its most important asset for business," said the Partnership for NYC President and CEO Kathryn Wylde. "Early job experience through summer jobs is a critical factor in building that talent pool and assuring that New York remains strong and competitive. Federal tax credits make summer jobs for NYC youth a great business investment.

Williams thanked Congressman Rangel for being the driving force behind the initiative and said that the Greater Harlem Chamber of Commerce would work with the Upper Manhattan Empowerment Zone and local community boards to increase outreach to small businesses in the area.

"The economy of today is forcing adults and seniors compete for jobs and our youth are losing out because they don't have the work experience. The tough economic conditions make it more difficult for our small businesses to bring new persons into the workplace," said Williams. "This initiative and the WOTC will go along way in expanding employment opportunities while enabling our small businesses to hire locally. "

Robert Walsh, Commissioner of the New York City Department of Small Business Services, agreed.

"These tax credits are not only a good value for businesses across the five boroughs; they also ensure that young adults will have opportunities to enter high-growth careers," said Walsh. "I strongly encourage businesses to take advantage of this program.”

Council Member Dickens applauded the initiative to urge businesses to take advantage of the federal tax credit program.

"It is especially important for the small business community to take advantage of this opportunity to employ our young people,” said Dickens. “Small businesses will allow our young people to be a part of the economic vitality of neighborhoods. Employment will help keep our young safe and teach them skills upon which they can build a productive future."

West Manhattan Chamber of Commerce President Andrew Albert agreed.

"The West Manhattan Chamber of Commerce supports Congressman Rangel's initiative to get businesses to use tax credits to hire our City's large youth population," said Albert. "It's good business to put as many as possible of these hard-working young people in jobs this summer."

Employers can learn more about the WOTC program by calling the New York State Department of Labor toll-free at 1-800-HIRE-992, or by visiting the Business Services section of the agency’s web site at http://www.labor.ny.gov. Employers can check whether the residence of a prospective employee is within a designated community or zone by using the address locator available from the U.S. Department of Housing and Urban Development at http://egis.hud.gov.

Residents interested in more information on the city's Summer Youth Employment Program can visit http://www.nyc.gov/html/dycd/html/jobs/summer_youth_employment.shtml. To find out more information on DYCD-funded Jobs and Internships, they can visit http://www.nyc.gov/html/dycd/html/jobs/jobs_internships.shtml

WOTC BASICS

To qualify for the WOTC, employers must hire young people who live in a designated Federal Renewal Communities and/or Empowerment Zones. The youth must be employed a minimum of 120 hours, part-time or full time.

The amount of the credit is based upon the total number of hours the youth is employed. If employment is between 120 and 400 hours, the maximum credit is 25% of the first $3,000 in wages, or up to $750. If employment is 400 hours or more, the maximum credit increases to 40% of the first $3,000 in wages, or up to $1,200. The average credit is roughly $500 per WOTC employee.

The credit also provides a one-time federal credit for each newly-hired, eligible youth ages 18 through 24. The youth must be employed a minimum of 120 hours for the first 12 months. (If employment is between 120 and 400 hours, the maximum credit is 25% of the first $6,000 in wages, or up to $1,500. If employment is 400 hours or more, the maximum credit increases to 40% of the first $6,000 in wages, or up to $2,400).

Local legislators and business groups see the initiative as a way of providing stability, both on an individual and a community level.

"So much of community renewal is dependent on jobs," said Senator Serrano. "The ability to provide a sustainable source of income goes a long way toward improving public health, reducing crime, and ensuring that long-standing residents and their children can afford to live where they grew up."

"This is a way of helping to get our children get on stable ground as they go on to college and their future careers," said Assemblyman Keith L.T. Wright, Chair of the New York State Assembly Social Services Committee. "Work experience is perhaps the most valuable asset we can provide our kids with and I thank Chairman Rangel for helping to provide this invaluable program to the families and young adults of the Village of Harlem and Upper Manhattan."

■