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Education Cabinet
Federal tax credit program for employers extended, expanded
FRANKFORT, Ky. — A federal program that provides a substantial tax credit to employers who hire members of qualified groups has been extended and expanded, according to the Kentucky Office of Employment and Training, which administers the program in Kentucky. The office is an agency of the Kentucky Education Cabinet.
The Work Opportunity Tax Credit (WOTC) was recently extended by the federal government through Aug. 31, 2011. In addition, changes in the program will significantly increase the number of Kentucky jobseekers eligible for WOTC.
WOTC provides employers with up to a $9,000 tax credit per eligible hire for individuals who meet certain criteria. Among those eligible for the WOTC program are certain welfare, food stamp, and Supplemental Security Income (SSI) recipients; veterans; 18 – 39-year-old residents who live in areas designated as federal empowerment zones, enterprise communities, rural renewal communities, and renewal communities; people with disabilities; and ex-felons.
“The most notable change in the Work Opportunity Tax Credit is that all residents of federal empowerment zones, enterprise communities, and renewal communities who are 18 – 39 years old are now eligible for the program. In the past, the age of eligibility in this group was 18 – 24,” said OET Executive Director Andrew J. Frauenhoffer.
“In addition, eligibility for this targeted group was extended to residents of federal rural renewal communities. As a result, all 18 – 39 year olds who live in Bell, Caldwell, Floyd, Harlan, Hickman, Leslie, Letcher, Pike and Union counties are now eligible for WOTC,” he said.
To qualify for the tax credit, the employer must submit a form to OET requesting certification within 28 days of the eligible worker’s first day of employment and receive from OET a form certifying that the individual was eligible when hired. Employers may not claim the tax credit for hiring former employees or relatives.
The actual amount of the tax credit is based on such requirements as wages paid and length of time the worker is employed.
For more information about the WOTC, including downloadable forms, go to the OET Web site at www.oet.ky.gov or call (502) 564-7456.
OET is an agency of the Department for Workforce Investment in the Education Cabinet. The primary services of the office are to help individuals prepare for, secure, and maintain employment; assist employers in locating and selecting the best qualified workers for their job openings; and provide income maintenance to ease the financial burden on individuals who are out of work through no fault of their own.
The Kentucky Education Cabinet coordinates learning programs from P-16, and manages and supports training and employment functions in the Department for Workforce Investment. For more information about our programs, visit www.educationcabinet.ky.gov or www.workforce.ky.gov, or call 502-564-6606.
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