As many employers take advantage of the WOTC category extension for unemployed veterans through the end of 2012, businesses still await the passage of all other target group categories of the WOTC Program. Despite bipartisan support for the WOTC Program, as of this writing Congress has failed to bring WOTC renewal legislation to the floor (H.R. 2082). However, as historical federal tax credit program data shows, we anticipate Congress to pass all other target groups, and make the WOTC extension retroactive.
As the federal tax reform in which these federal tax extenders will be evaluated may take some time to accomplish, it’s important to note and take advantage of the many state initiatives that do have funding to support business growth and the hiring and training of employees.
The myriad of state tax incentive programs offer opportunities in the form of credits, wage subsidies and training reimbursements, and have proven successful in assisting businesses to reduce the cost of hiring, on-boarding and training.
A sampling of these State hiring incentives include:
- Arizona’s Quality Jobs Tax Credit (QJTC) Program, which offers up to $9,000 of Arizona income or premium tax credits spread over a three-year period for each net new quality job
- NY Youth Works Program which provides up to $4,000 in tax credits for employing eligible NY Youth. Click here to register for our webinar – May 15th!
- The Nevada Silver Works Program, offering a wage subsidy of up to $2,000 per eligible employee, in an effort to get Nevada displaced workers off the unemployment dole, and a special employee training allowance of $200 every two weeks for a maximum of $600
- Hire a Veteran State Tax Incentive Programs include: Vermont, Alabama, New Mexico, and Connecticut
- Florida’s Jobs for the Unemployed (JUTC) Tax Credit Program, offering a $1,000 tax credit for hiring an unemployed individual and retaining for over a twelve month period
State financial incentive programs are designed with the purpose of creating opportunities to strengthen local economies, while businesses receive incentives to hire qualified workers to staff their organizations. These trained workforces are a win-win for the economic stability of the state, as well as a boost to the participating employers’ bottom line.