TAX INCENTIVE

Tax break was found to be helpful in offsetting the initial costs associated with hiring for employers.

The Work Opportunity Tax Credit (WOTC) offered tax incentives to employers in order to promote the hiring of individuals who qualify as members of a target group.

An employer may qualify for a tax credit up to $8,500 if the employee is a member of a designated target group and meets that group's specific requirements.

There are nine target groups for WOTC eligibility:

1. Qualified recipients of Temporary Assistance to Needy Families (TANF)
2. Qualified veterans who are receiving Food Stamps
3. Qualified economically disadvantaged ex-felons hired no later than one year after conviction or release from prison
4. High risk youth ages 18 through 24 residing in an Empowerment Zone or Enterprise Community
5. Vocational Rehabilitation referrals
6. Qualified summer youth ages 16 through 17 who reside in an Empowerment Zone or Enterprise Community and have not previouly worked for the employer seeking this tax credit
7. Qualified Food Stamp recipients ages 18 through 24
8. Qualified recipients of Supplemental Security Income (SSI)
9. Long-term recipients of TANF (Individuals who begin work on or after 1/1/98)

   For more information and how to apply for this tax credit, click WOTC employer guide or WOTC Form