A number of states offer various hiring credits that are similar to federal incentives such as the Work Opportunity Tax Credit and the Empowerment Zone Tax Credit that focus on job creation and making American businesses more competitive.
STATE HIRING CREDITS
HELPING PUT AMERICA BACK TO WORK
The tax credit amounts and the type of tax the credits offset vary by state, but here are a few examples from around the country:
Businesses in certain designated geographic areas can claim up to $73,500 in tax credits per eligible employee over a five-year period to offset income tax liability.
Companies located in the state, or planning to move to the state, that will create or retain jobs in specific industries can claim a tax credit of 6.85% of wages per net new job for up to a 10-year period.
Businesses in the state of George can take advantage of multiple job creation tax credits that provide as much as $5,000 in annual tax savings per job for up to five years. After offsetting corporate income tax liability, excess tax credits can also offset a company’s payroll withholding as well.
Businesses located in certain areas of the state can claim a tax credit of $2,500 for each new job created to offset franchise and excise tax liability.
Businesses employing qualified veterans can claim a tax credit up to $3,000 per individual against the state’s corporate income tax.
Companies that hire unemployed veterans in a permanent full-time position can claim up to $1,500 in tax credits.
Many states offer similar employment and hiring tax credit incentives that can provide a significant advantage to your company’s bottom line. alliantgroup’s team of tax experts can evaluate your company’s qualifications for any available tax incentives and help you traverse the sometimes complex process of identifying, documenting and quantifying the benefits for your eligible employees.
For immediate assistance, please contact Rizwan Virani.