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TAX CREDITS
WORK OPPORTUNITY TAX CREDIT
The Work Opportunity Tax Credit (WOTC) encourages private sector employers to hire workers that they might not ordinarily consider, as designated by nine target eligibility groups:
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Qualified recipients of Temporary Assistance to Needy Families (TANF).
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Qualified veterans who are receiving Food Stamps.
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Qualified economically disadvantaged ex-felons hired no later than one year after conviction or release from prison.
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High-risk youth, ages 18 through 24, who reside in a federally designated Empowerment Zone, Enterprise Community, or Renewal Community.
Vocational Rehabilitation referrals.
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Qualified summer youth, ages 16 through 17, who reside in a federally designated Empowerment Zone, Enterprise Community, or Renewal Community and have not previously worked for the employer seeking this tax credit.
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Qualified Food Stamp recipients, ages 18 through 24.
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Qualified recipients of Supplemental Security Income (SSI).
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Long-term recipients of TANF/Aid to Families with Dependent Children (AFDC). (Individuals who began work on or after January 1, 1998.
To find out if a particular employee is eligible, an employer should complete an IRS Form 8850, the Work Opportunity Tax Credit Prescreening Notice and Certification and the Individual Characteristics Form from the U.S. Department of Labor.
Both forms must be submitted no later than 21 days after the hire’s start date to:
EDD
Attention: WOTC Center
P.O. Box 1408
Roseville, CA 95661
ENTERPRISE ZONE TAX CREDIT
The Enterprise Zone Tax Credit Program focuses on communities in California that face economic challenges. These tax credits are an incentive to encourage business investment and promote the creation of new jobs in these areas, allowing the private sector market to revive the local economy. For more information about Enterprise Zone Tax Incentives, please visit:
The Enterprise Geographic Information System, a mapping tool that identifies Enterprise Communities and offers information about housing and community development programs at the state, county, city and neighborhood levels.
IRS Publication 954, is another resource that assists business owners in determining if they qualify for certain tax incentives.
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