Employment Tax Credits

The Work Opportunity Tax Credit (WOTC) was designed to promote the hiring of individuals who qualify as members of target groups while simultaneously providing federal tax credit incentives to employers that hire these individuals. Federal tax credits are available for hiring the following designated groups under WOTC:

1. A member of a family receiving assistance for Temporary Assistance for Needy Families (TANF) for 9 of the 18 months before the date of hire.
2. Veterans receiving Food Stamps.
3. Individuals between the ages of 18 to 24 who live in federally designated Empowerment Zones, Enterprise Communities or Renewal Communities.
4. An 18 to 39 year old member of a family who received food stamps for at least 6 consecutive months before the date of hire or, at least 3 of the 5 months before the date of hire and their food stamp eligibility expired.
5. A member of a family who has received TANF payments for at least 18 consecutive months before the date of hire.
6. Individuals aged 16 or 17 who live in designated Empowerment Zones, Enterprise Communities or Renewal Communities hired as Summer Youth employees.
7. Individuals receiving Supplemental Security Income benefits for any month during 60 days before the date of hire.
8. Disabled persons who completed, or are completing, approved rehabilitative services.
9. Ex-felons.

Employers who hire WOTC-qualified employees are eligible for federal tax credits worth up to $9,000 per qualified employee.

For more information, call Bob Arnold at 516-678-3300