There are a few tax programs, pending legislation recently. If your business is planning to expand or hire in these areas, you may want to follow these developments. The incentives reward businesses for job creation in low-income areas:
- Promise Zones- These are low-income areas which could be eligible for incentives to renew their communities. The Promise Zone initiative has not passed legislation yet. If so, it will identify twenty communities, nationwide, as designated zones over the next three years. The first, five Promise Zones were introduced in January and are pending approval. However, if they do, businesses who invest or hire individuals in the areas could be eligible for tax credits.
-Choctaw Nation, Oklahoma (east of Oklahoma City)
-West Philadelphia
-Southeastern Kentucky
-San Antonio, Texas (Eastern area of city)
-Central LA (Neighborhoods of Pico Union, East Hollywood, Hollywood, Westlake, Koreatown)
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HB140-Utah bill passed this week, offering tax credits to businesses who hire homeless persons. Requirements include:
-Employees must be continually employed 9 months
-Employer must have paid at least $4,000 in wages
-The tax credit is capped at $100,000.
Deseret News article:
3. WOTC- (The Work Opportunity Tax Credit program) -This is a federal incentive, that technically expired in 2013, but is pending renewal for 2014 if approved, Employers could receive up to $2,400-9,000 for eligible new hires. The Department of Labor has instructed the state Workforce Development agencies to continue to accept applications for this credit, even though it has not been renewed yet. If it is renewed, the states process the applications received during the expiration lapse. Eligible new hires must work 120 hours in a calendar year. A few of the eligible groups include:
-Unemployed or disabled military veterans
-SNAP (food stamp) or Temporary Assistance recipients
-Vocational Rehab referrals
-Ex-felons
-At-risk youth
Visit our site or the Department of Labor page to see more information.