Other Federal & State Tax Incentives
With the right process in place, your strategic investments can yield material tax credits.
Latest posts by Max Shenker (see all)
- New Federal and State WOTC Proposals - February 28, 2019
- Senators Introduce Legislation to Expand WOTC to Help At-Risk Youth - October 8, 2018
- Update on the California New Employment Credit (NEC) - October 8, 2018
"There are so many ways TCC can help your business. They are diligent in maximizing our ROI." - VP, Tax, Fortune 500 Manufacturing
State Jobs Credits
Seeking a competitive advantage in attracting business, many states offer credits for hiring or retaining employees. They may focus on reducing unemployment among certain underserved groups in the population, or on creating a skilled workforce by prioritizing quality jobs in certain industries. TCC navigates compliance on behalf of our clients, while maximizing the benefit.
The Empowerment Zone and Indian Employment Credits expired at the end of 2016. In 2017 they were retroactively extended through the end of that year. Congress will be considering a similar extension for 2018.
A variety of incentives are available for employers located in the state's Enterprise Zones. Colorado state tax credits are available for businesses investing in job training (whether that training occurs on-site or off-site). Incentives also apply to companies expanding their workforce.
Georgia offers incentive programs that allow employers to offset either state income tax or payroll tax withholdings. There is a range of benefit available, based on the number of jobs created and the associated wage. Certain industries are excluded from qualification, and in order to be eligible for tax credits, jobs must be full-time.
Applicable to the entire state of New York, state tax incentives reward employers for hiring and retaining youth (16-24) and veterans. The New York Youth Jobs Program offers state income tax credits of up to $7,500 to offset the wages of full-time or part-time employees. The state's Hire a Veteran credit can generate state income tax credits of up to 15% of the total wages paid.
Applicable to a number of industries, the South Carolina Jobs Tax Credit rewards companies for expanding their workforce. Depending on the business’ location within the state, incentives can reach $9,000 per job created. Once secured, credits are available for a five year window. Any unused portions of the credit can be carried forward.