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Federal Economic Development Area Incentives
Renewal Community Employment Credit
The renewal community employment credit provides businesses with an incentive to hire individuals who both live and work in a renewal community. You can claim the credit if you pay or incur "qualified wages" to a "qualified employee." The credit is for wages paid or incurred after 2001. The credit is 15% of the qualified wages paid or incurred during a calendar year. The amount of qualified wages you can use to figure the credit cannot be more than $10,000 for each employee for each calendar year. As a result, the credit can be as much as $1,500 (15% of $10,000) per qualified employee each year. Both full-time and part-time employees may qualify for the credit.

Empowerment Zone Employment Credit
A similar federal hiring incentive is the Empowerment Zone Employment Credit. A qualified employee must both live and work within an Empowerment Zone. The amount of the tax credit allowable for each eligible employee is 20% of the qualified wages paid or incurred during a calendar year. The credit can therefore be as much as $3,000 (20% of $15,000) per qualified employee each year. Both full-time and part-time employees may qualify for the credit.

Federal Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credits (WOTC) are federal income tax credits available to any business operating within the United States that hires employees meeting the programs eligibility criteria. This includes: IV-A recipients (member of a family receiving Temporary Assistance for Needy Families); qualified military veterans, qualified ex-felons, employees between the ages of 18-39 who reside in Federally designated communities (Renewal, Enterprise, or Empowerment Zones), vocational rehabilitation referrals, recipients of SSI or food stamps, and long-term family assistance recipients.

With the passage of the American Economic Recovery Act of 2009, Congress added two new qualifying categories for military veterans (recently discharged and who received unemployment benefits for at least four weeks during the year prior to their hire date) and underemployed disconnected youth (employees ages 16-25 years of age) who have not earned a degree of graduation from, or attended a secondary, technical, or post-secondary school in the past six months for more than ten hours per week. These additional categories are scheduled to expire on 12/31/2010 but may be extended thereafter.

Each qualifying employee can generate anywhere from $1,500, $2,400, $3,000, $4,800, and $9,000 (depending on hours worked and eligibility category) in federal income tax credits over their first 2 years of employment.

As the period allowed for applying for an individual's qualification is limited to their first 28 days of employment, the process we incorporate and our attention is critical to securing these credits.

"At Corporate Tax Incentives we treat every client with personal attention."
         -Joe Marquez, President

We will work with your business to efficiently maximize and secure the tax breaks you deserve in a method that is least disruptive to your business operations.

Corporate Tax Incentives
4949 Windplay Drive, Suite 220
El Dorado Hills, CA 95762
Mailing: PO Box 4800
     El Dorado Hills, CA 95762
Phone: (916) 933-9501
Fax: (916) 933-9509
Email: info@corptaxinc.com

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