Employer Compensation Expense Program (ECEP) wage credit
Who is eligible?
You may be eligible to claim this nonrefundable credit if you:
- were employed in New York by an employer who elected to participate in the ECEP during the tax year (an electing employer); and
- the wages and compensation you received from the electing employer for your employment in New York State exceeded $40,000 for the tax year (your eligible wages and compensation).
How much is the credit?
To determine your current year ECEP wage credit:
- Multiply the amount of your eligible wages and compensation subject to tax in New York State by the ECEP rate for the tax year:
| For quarters in tax year: | the rate of tax is: |
|---|---|
| 2019 | 1.5% |
| 2020 | 3% |
| 2021 and after | 5% |
2. Multiply the result from step 1 above, by the fraction of your New York State tax due before credits divided by your New York State taxable income.
How do I claim the credit?
The ECEP wage credit is calculated on Form IT-226, Employer Compensation Expense Program Wage Credit, using information from your New York State personal income tax return, Form IT-201, Resident Income Tax Return, or Form IT-203, Nonresident and Part-Year Resident Income Tax Return. You must file Form IT-226 with your New York State personal income tax return.
If the available ECEP wage credit reduces your New York State tax due to zero and you have an amount of unused ECEP wage credit available, you may carry the unused credit forward into future years.
Additional information
- Form IT-226, Employer Compensation Expense Program Wage Credit
- Employer Compensation Expense Program (ECEP)
