Washington employers who applied for the federal Work Opportunity Tax Credit in 2007 for hiring certain hard-to-place job seekers will get an estimated $40 million tax break from Uncle Sam.
The tax-credit program provides up to $2,400 in tax savings per worker to businesses that hire veterans, the disabled, ex-inmates, high-risk teens and young adults, food stamp recipients and those who receive Supplemental Security Income. Additionally, businesses who hire long-term welfare recipients can save as much as $9,000 per person over two years.
“Everybody deserves a chance to earn a living,” said Employment Security Commissioner Karen Lee. “The Work Opportunity Tax Credit rewards businesses that give disadvantaged people an opportunity to achieve their dreams.”
The Work Opportunity Tax Credit is obtained by submitting an application to the Washington State Employment Security Department, which works with other governmental agencies to certify the eligibility of hired workers.
In 2007, the department received more than 30,000 applications for the credit from 3,300 Washington businesses. Some 16,560 workers were certified as eligible for the credit.
Businesses certified for the credit must complete IRS Form 5884 when submitting their federal income taxes.
Employers that may want to participate in the program in 2008 should visit their local WorkSource office or call 800-669-9271.