As the world economy has evolved and shifted over the decades, the United States Congress and nearly every state legislature has enacted job creation and employment related tax credits and incentive programs to encourage American businesses to create new jobs or retain or retrain existing employees.
Helping Put America Back to Work
The Work Opportunity Tax Credit
The Work Opportunity Tax Credit, or WOTC, is a federal income tax credit designed for the benefit of employers that hire individuals from specific target groups of the American population that have historically faced higher rates of unemployment. Individuals within these target groups include veterans, ex-felons, the long-term unemployed, summer youth and individuals who are recipients of certain federal assistance programs. Click here to learn more.
State Hiring Tax Credits
Nearly every state offers employers incentives that are focused on job creation and ensuring businesses within the state remain successful and competitive. These tax credits encourage employers to create new jobs, expand their existing payroll, or retain or retrain current employees for new roles in an ever-changing economy and marketplace. Click here to learn more.
Federal Empowerment Zone Tax Credits
The federal government has established economic incentives in 30 urban communities where businesses may qualify for up to $3,000 in federal tax credits per eligible employee. The federal Empowerment Zone Tax Credit incentivizes companies to hire and retain individuals who work and live in specific distressed communities around the country. Since the focus is on not only hiring these individuals, but also on retention, these credits can be claimed annually for qualified employees. Click here to learn more.
How We Can Help
Whether your company is expanding its operations, hiring new employees at an existing location, or just planning for future growth, having an effective and reliable hiring credits and incentives management process in place is essential to ensure that you are taking full advantage of the tax credit opportunities available to you. While federal and state hiring tax credits can be complicated, these incentives offer significant opportunities to lower your effective tax rate.
Experience matters, and alliantgroup’s team of tax experts and professionals has an extensive understanding and unique expertise in navigating the various federal and state agencies required to prepare claims and both effectively and efficiently manage the process.
Many federal and state hiring credits are available, but not easily claimed. Having a precise, efficient and repeatable hiring credits and incentives management process that is adaptable to new legislation and government-sponsored initiatives is key to maximizing the return on your most important investment: your people.
For immediate assistance, please contact Rizwan Virani.