Work Opportunity Credit
Employers in any US location may be eligible for the Work Opportunity Credit. KBKG documents employees and prepares applications on the employer’s behalf using a technology-based process. Each qualified new hire may be worth a federal tax credit as much as $9,000. There are no geographic restrictions for this program other than a presence on US soil. This means any US employer can benefit.
The largest challenge faced by employers with regard to the WOC is the limited time frame in which they may document employees. Having proper procedures in place to document the appropriate information in the manner mandated by the IRS is critical to successfully realizing benefits. Also, each employee must have supporting documentation in order to be considered for the credit. Like all KBKG tax credit services, we will either work with you to gather the appropriate employee information or we will procure it by interfacing directly with government agencies.
HIRE Act Payroll Tax Exemption & Credit Hire
Native American Employment Credit
EZ Employee Credit
Targeted Area Contract Preference Act
Native American Indian Subcontractor Subsidy
The federal government has prescribed certain areas to receive lucrative location-based tax incentives. These zones and their commensurate benefits are available throughout the United States. Please see below for examples of HUD Zones within metropolitan areas.
The Empowerment Zone is a program designed to encourage businesses to locate and hire within geographically targeted areas. Each qualified employees hired within an Empowerment Zone is eligible for an employment credit worth up to 3,000 per year. Unlike hiring credits, employment credits are not limited to new hires so the entire employee base may be considered for qualification each year. Taxpayers pay no federal tax on properly structured capital gain transactions within the Empowerment Zone. Empowerment Zone businesses are eligible for an increased Section 179 deduction
The Renewal Community is similar to the Empowerment Zone. It has programs for capital gain exclusions, employment credits and Section 179 adjustments. The major difference is rather than an employment credit ceiling of $3,000 the Renewal Community program has a ceiling of $1,500 per employee per year. Unlike the Empowerment Zone, the Renewal Community was not renewed in 2010.
For more information on expiration dates, zone renewals, new upcoming areas, etc, please contact us at 877.525.4462