State and Federal Tax Incentives

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State and Federal Tax Incentives


Image of TAXThe Job Development Team (JDT) can assist you in finding out if you qualify for up to $9,600 in federal tax credits for each eligible job seeker you hire. The Work Opportunity Tax Credit (WOTC), which includes the Welfare-to-Work Tax Credit (WtW), has two purposes:

  • To promote the hiring of individuals who qualify as a member of a target group, and
  • To provide a federal tax credit to employers who hire these individuals.
  • The amount of time an individual works for you will determine the amount of the tax credit. The individual needs to be retained at least 400 hours to receive the maximum amount.

There are nine target groups for WOTC eligibility. You may claim the Work Opportunity Tax Credit or the Welfare-to-Work Tax Credit for a total of two years.

Below are the target groups of job seekers who can qualify an employer for the WOTC:

  • Qualified recipients of Temporary Assistance to Needy Families (TANF).
  • Qualified veterans receiving CalFresh or qualified veterans with a service connected disability who:
    • Have a hiring date which is not more than one year after having been discharged or released from active duty, OR
    • Have aggregate periods of unemployment during the one year period ending on the hiring date that equal or exceed six months.
  • Ex-felons hired no later than one year after conviction or release from prison.
  • Designated Community Resident - an individual who has attained ages 18 but not 40 on the hiring date who reside in an Empowerment Zone, Renewal Community, or Rural Renewal County.
  • Vocational rehabilitation referrals, including Ticket Holders with an individual work plan developed and implemented by an Employment Network.
  • Qualified summer youth ages 16 through 17 who reside in an Empowerment Zone, Enterprise Community, or Renewal Community.
  • Qualified CalFresh participants ages 18 but not 40 on the hiring date.
  • Qualified recipients of Supplemental Security Income (SSI).
  • Long-term family assistance recipients.

For information on tax credits and incentives, please refer to the Employment Development Department (EDD) Tax Credits Incentives website at:

 

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