The following tax credits can help alleviate your business tax burden. Each can be used in conjunction with the training programs listed on this web site.
WHAT IS THE WORK OPPORTUNITY TAX CREDIT?
The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers who hire individuals from eligible target groups with significant barriers to employment. Each year, employers claim over $1 billion in tax credits under the WOTC program. The success and growth of this income tax credit for business is beneficial for all who participate, while increasing America’s economic growth and productivity.
Who is Eligible?
Visit http://www.doleta.gov/business/incentives/opptax/eligible.cfm for more target group eligibility information.
WHAT IS THE WELFARE-TO-WORK TAX CREDIT?
WOTC can be added to an organization's tool kit for serving businesses. The tax credit can allow business customers to reduce their federal income tax liability between $2,400 and $9,600 per employee hired, per year. WOTC can help your qualified job seekers obtain employment by offering an incentive to employers who are considering hiring them. Qualified job seekers include veterans, TANF recipients, SNAP (Food Stamp) recipients, Vocational Rehabilitation participants, ex-offenders, SSI recipients, and individuals who live in Empowerment Zones or Rural Renewal Counties. Generally, long-term welfare recipients are those who have been receiving welfare benefits for at least 18 months. Call 1-800-432-5268 for more information.
Businesses that have Employees with Disabilities
Businesses accommodating people with disabilities may qualify for some of the following tax credits and deductions. More detailed information may be found in the IRS publications referenced.
For more information about these tax incentives and their requisite forms, please see the Internal Revenue Service (IRS) website.