March 4, 2020

Recovery Tax Credit Program for Eligible Employer and Employee Designations

The New York State Recovery Tax Credit Program is designed to support employers who hire individuals in recovery from a Substance Use Disorder. This is the nation’s first tax credit of its kind, an incentive granted to certified employers, who pay corporate finance taxes in NYS, for employing eligible individuals in recovery from a substance use disorder in part-time or full-time positions in NYS.

The Recovery Tax Credit will be calculated at the rate of $1.00 per hour with a maximum amount of $2,000 per eligible individual (employee). The program in its entirety is limited to a maximum of $2 million. Eligible employers must demonstrate the ability of:

  • Providing a recovery supportive environment
  • Having a documented working relationship with a local treatment organization certified by OASAS in the community where employees work
  • Assisting individuals in recovery with the hiring process
  • Providing training for all employees and supervisors

Eligible employees include individuals with a Substance Use Disorder who:

  • Have been hired by the Eligible employer on or after April 12, 2019, remain employed on or after January 1, 2020 and has worked at least 500 hours during the eligible time.
  • Are in a state of wellness where there is an abatement of signs and symptoms of active addiction, to the satisfaction of the employer.
  • Have completed a course of treatment or is currently in receipt of treatment for such substance use disorder.

Eligible employers can apply via Request for Application process available on our website at through this direct link The deadline for submission for the 2020 tax year is December 1, 2020. Please direct questions to