Is Your Business Benefiting from these Tax Credits?
By Leslee Tschida
Many businesses are either missing out entirely on these tax credits or they are not fully capitalizing on their credit potential. Your business could have the opportunity to earn between $2,400 and $9,600 in tax credits for each qualified individual you hire from January 2015 through December 2019. As an affiliate member of the Montana High Tech Business Alliance, MAR’S STOUT Inc., would like to share this opportunity with all fellow members of the Alliance.
The Work Opportunity Tax Credit Program is a federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced barriers to employment. The tax credit can significantly reduce a company’s tax liability, allowing them to keep more of their hard-earned profits and provide an unemployed worker with a job.
Congress recently extended the Work Opportunity Tax Credit Program through 2019 for employers when they hire qualified individuals. Here is the maximum amount of tax credit that an employer can earn when they hire an individual from one of the following categories:
- An individual who was unemployed for more than 27 weeks and received unemployment compensation for part of that period – $2,400
- An individual ages 18 to 40 who lives in a designated county or census tract – $2,400
- An individual ages 18 to 40 who lives in a household that received Food Stamps (SNAP) – $2,400
- A veteran who was unemployed for more than 4 weeks but less than 6 months – $2,400
- A veteran who was unemployed for more than 6 months – $5,600
- A veteran and a resident of a household that received Food Stamps (SNAP) – $2,400
- A service disabled veteran – $4,800
- A service disabled veteran who was unemployed for more than 6 months – $9,600
- A resident of a household that received Temporary Assistance for Needy Families (TANF) for 9 months – $2400
- A resident of a household that received TANF for 18 months – $9,000
- An individual who is an ex-felon – $2,400
- An individual ages 18 to 65 who receives Social Security Disability Insurance (SSDI) and participates in the Social Security Administration’s Ticket to Work Program – $2,400
- An individual who received Supplemental Security Income (SSI) – $2,400
- An individual who received Vocational Rehabilitation – $2,400
- An individual ages 16-17 living in a designated census tract, who is hired May 1- Sept 15 -$1,200
Many businesses are either missing out entirely or they aren’t fully capitalizing on their tax credit potential. Here’s some good news: 2016 is cued up to be an exceptional year to maximize these credits, and for a limited time, your business can also earn tax credits for each qualified employee who was hired in 2015.
When businesses hire individuals from specified targeted groups, it is a win-win situation. More people are working, and businesses earn tax credits, which lowers their tax liability.
Leslee Tschida is the vice president of Tax Credit Services at MARS STOUT, a family-owned business located in Missoula. MARS STOUT has helped companies throughout the U.S. obtain millions of dollars in tax credits, wage subsidies, training grants, and economic development incentives during the past 35 years.