Supporting and hiring statistically disadvantaged professionals from differing backgrounds may be part of your business culture and values, but it could also help you increase your cash flow and reduce federal income tax liability.
The federal government and several states allow businesses to claim tax credits for certain eligible individuals and for conducting business in specifically designated areas.
Leveraging these credits without insight from experienced advisors can be a time-consuming process that poses administrative burdens. Confidently pursue credits and put money back into your business with guidance from our professionals.
There are many credit opportunities to pursue at both the federal and state level, but your business and employees must meet certain requirements.
The Work Opportunity Tax Credit (WOTC)—a federal credit distributed at the state level—is designed to encourage businesses to hire individuals receiving government assistance to enable them to become more self-sufficient.
Maximum available credits can range from $2,400 to $9,600 per new employee, depending on how the employee qualifies.
Credit value is determined by:
Potential eligible employee groups include:
Credits must be applied for within 28 days of a new employee’s start date.
Many states offer their own WOTC-equivalent opportunities. The amount of credit and the type of tax they offset varies by state. Explore prominent state opportunities below.
Claim an income tax credit of up to $3,000 for the first taxable year for employing new, full-time, qualified veterans.
Claim an income tax credit for each qualified new employee who is a TANF recipient of up to:
Claim an income tax credit of up to $1,500 for each qualified felon who was convicted in Illinois, sentenced to a period of incarceration, and hired within three years of being released.
Claim a franchise tax credit of up to $2,100 for the first taxable year for employing new full- or part-time qualified, disabled employees.
Other states offer similar hiring credits that may require more specific qualifications.
Using the industry-leading digital tool MaxCredits®, you can vastly streamline the process to leverage credits. With guidance from our team, the process will help:
MaxCredits® can be implemented into your new employee onboarding to help your business capture available tax credit opportunities.
We’ll perform all necessary processing and filing of qualified applications, data retention, denial appeals, and other requirements to help your business to improve tax credit opportunities.
Your engagement team will include professionals from a range of backgrounds—such as CPAs, attorneys with JD-LLM certifications, and enrolled agents—with deep experience analyzing, documenting eligibility, and helping businesses claim hiring and wage-based tax credits.
Our professionals will customize your unique needs while contextualizing how credits could impact and benefit your whole business.
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