Incentives & Tax credits from the federal government are available to counterbalance federal tax accountability. These credits are frequently applicable when hiring employees with distinguishing traits or individuals residing and working in designated federal areas. Although government-funded, these incentives are usually assessed together with local and state advisors who serve as a channel to employers.

The work opportunity credit provides businesses with an incentive to hire individuals from groups that have a particular high unemployment rate or other special employment needs. Your business does not have to be in an empowerment zone, enterprise community, or renewal community to qualify for this credit. You can claim the credit if you pay or incur "qualified first-year wages" to a "targeted group employee." The credit amount differs upon category certified. This determination is done through a pre-screening process.



Long Term Family Assistance Recipient (TANF), formerly known as Welfare to Work provides  an incentive to hire long-term family assistance recipients. A qualified individual can earn your business up to $9,000. Your business does not have to be in an empowerment zone, enterprise community, or renewal community to qualify for this credit. You can claim if you pay or incur “qualified wages” during the first 2 years of employment to a “long-term family assistance recipient.”

The empowerment zone employment credit provides businesses with an incentive to hire individuals who both live and work in an empowerment zone. (An exception applies to the Washington, DC empowerment zone. Individuals who work in the Washington, DC empowerment zone may live anywhere in the District of Columbia.)

The Secretary of Housing and Urban Development (HUD) has designated parts of certain areas as renewal communities. The renewal community employment credit provides businesses with an incentive to hire individuals who both live and work in a renewal community.

The Indian employment credit provides businesses with an incentive to hire certain individuals who live on or near an Indian reservation. Your business does not have to be in an empowerment zone, enterprise community, or renewal community to qualify for this credit. You can claim the credit if you pay or incur “qualified wages” to a “qualified employee.”

2009 EHB-Online.com