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Federal Tax Credits
   

Tax credits and incentives are available from the federal government to offset federal tax liability.  The employment credits are often associated with hiring individuals with certain characteristics or employees who will live and work in targeted federal zones.  Although funded by the federal government, these programs are typically negotiated with state and local authorities who act as a conduit.

The Work Opportunity Tax Credit Program (WOTC)

The Work Opportunity Tax Credit Program (WOTC) provides tax credits for hiring employers in certain targeted groups.

The WOTC program has been expanded and extended to Aug. 31, 2011. The program includesa federal income tax credit that encourages employers to

hire long-term welfare recipients who are eligible under a new category called Long-Term Family Assistance Recipient (LTFA). These credits previously were offered under a separate program that was known as
Welfare-to-Work (WtW).

Related Resources
Side-by-side comparison of the previous and revised WOTC/WtW programs (.pdf)

The WOTC program also now includes a Disabled Veteran category. Rural Renewal Counties (RRCs) have also been added to expand the geographic area that can qualify a new hire under the Designated Community Resident target group.

WOTC

Empowerment Zone Programs

Need help reducing state or federal income tax liability? The federal government has designated certain economically depressed "zones" as tax advantaged areas. Many employers do not take full advantage of the myriad of available "zone" programs, primarily because these programs are not well known and may require specific documentation.

The Renewal Community Program

The 2000 Community Renewal Tax Relief Act established new federal income tax benefits for businesses and investments in 40 areas around the country to be designated as “Renewal Communities.” To claim the Renewal Community federal income tax savings, the business or investment must be located within the designated area and meet other specific qualifying criteria for each tax benefit.

The Native American Indian Employment Credit

The Native American Indian Employment Credit provides businesses with an incentive to hire and retain individuals who are enrolled members of an Indian tribe (or the spouse of an enrolled member) who live on or near an Indian reservation.

 

Tax Credit and Incentive Services:
Federal Tax Credits
State Tax Credits
Custom Incentives
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