Tax Credits
Southwest Training Services, Inc. can help employers access a range of state and federal tax credit and incentive programs, including:
For more information, consult the PA Workforce website (CLICK HERE)
- 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.
- 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.
- 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 PA Workforce website (CLICK HERE)
