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(see also: Assessment and Rapid Response)
Southwest Training Services, Inc. can help employers access a range of state and federal tax credit and incentive programs, including:
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The Work
Opportunity Tax Credit (WOTC), created by the Small Business
Job Protection Act of 1996 and extended by the Small Business and
Work Opportunity Act of 2007, is available to employers who hire persons
who have been deemed to have barriers to employment. This tax credit
is in effect for new hires starting before September 1, 2011. New
hires must work a minimum of 120 hours. The American Recovery and
Reinvestment Act of 2009 created two new target groups for the Work
Opportunity Tax Credit: disconnected youths; and unemployed veterans.
To accommodate these new target groups, the two forms that employers
must submit to request this tax credit, the IRS
Form 8850 and the ETA 9061,
as well as the instructions
for the IRS Form 8850, have recently been revised. |
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The Employment
Incentive Payment (EIP) Tax Credit, created by the Tax Reform
Code of 1971, is also available to employers who hire persons who
have been deemed to have barriers to employment. This tax credit is
in effect for new hires starting before January 1, 2010. New hires
must remain on the payroll for a full year. However, if a person voluntarily
quits, becomes disabled or is terminated for a just cause, this tax
credit can be prorated. |
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The Disabled
Access Tax Credit (Title 26, IRS Code, Section 44) is available
to small businesses that employ persons with disabilities and incur
expenditures to comply with the American Disabilities Act. To be eligible,
the business must have either $1 million or less in gross receipts
for the preceding tax year; or 30 or fewer full time employees during
the preceding tax year. The tax credit covers 50% of "eligible
access expenditures" that exceed $250, but do not exceed $10,250
for a taxable year, including: removal of architectural, communication,
physical, or transportation barriers that prevent a business from
being accessible to, or usable by, individuals with disabilities;
provision of qualified readers, taped texts, and other effective methods
of making materials accessible to people with visual impairments;
provision of qualified interpreters or other effective methods of
making orally delivered materials available to individuals with hearing
impairments; and acquisition or modification of equipment or devices
for individuals with disabilities, or provision of other similar services,
modifications, materials, or equipment. |
For more information, consult the Pennsylvania Department of Labor & Industry's brochure entitled, "Employer Tax Credits for New Hires."