The following sections describe the most important Federal business incentives. Carrazco & Associates will assess your company's eligibility for both state and Federal tax incentives in order to maximize the benefit to your company's bottom line. Work Opportunity Tax Credit The Federal Work Opportunity Tax Credit (or WOTC) gives employers an incentive to hire workers from groups with particularly high unemployment rates or other special employment needs. Businesses can claim up to $2,400 per new hire against Federal taxes based on the qualified employee's first-year wages. Experience shows that as many as 10 to 20 percent (or more) of your company's employees are probably qualified. Some examples of qualifying employees include veterans, recipients of Aid to Families with Dependent Children, and summer youth employees. Carrazco & Associates will help you claim the WOTC by determining eligibility and by coordinating, collecting and documenting the required information and certifications from various state and federal agencies. Welfare to Work Tax Credit The Federal Welfare to Work Tax Credit (or WTW) gives businesses an incentive to hire workers whose families have received long-term family assistance such as Aid to Families with Dependent Children or TANF. For each qualifying new hire, your business can claim up to $8,500 against Federal taxes based on the employee's first and second employment year wages. Carrazco & Associates will help you to claim this valuable credit by determining eligibility and by coordinating, collecting and documenting the required information and certifications from various state and federal agencies. Empowerment Zone/ Enterprise Community/ Renewal Community Employment Credits The Federal Empowerment Zone, Enterprise Community and Renewal Community Employment Credits give businesses an incentive to hire or retain eligible employees to work in Federal Empowerment Zones, Enterprise Communities or Renewal Communities. These programs are designed to create self-sustaining, long-term economic development in distressed urban and rural areas throughout the United States. There are over 170 zones throughout the country. Twelve are located in California. If your business is located within one of these federally designated areas and meets the program's requirements, you may be eligible for up to $3,000 per qualified employee per year during the statutory lifetime of the zone. Many employees will be eligible under more than one of the federal tax incentive programs described. Carrazco & Associates will help you to maximize your total federal benefit. We will assess your employees' eligibility for WOTC, WTW, and the federal zone credits to select the most beneficial credit and to even combine federal credits whenever possible. Click Here to go back to our services page. Carrazco & Associates - An Accountancy Corporation. 2007 All Rights Reserved