What Federal Tax Program incentives programs exist for ex-offenders?
The Work Opportunity Tax Credit (WOTC), authorized by the Small Business Job Protection Act of 1996 (P.L.104-188), is a federal tax credit that encourages employers to hire targeted groups of job seekers by reducing employers’ federal income tax liability by as much as $2,400 per qualified new worker; $750 if working 120 hours, or $1,200 if working 400 hours or more per qualified summer youth. The Welfare-to-Work Tax Credit (WtW) is a federal income tax credit that encourages employers to hire long-term welfare recipients. Established by the Taxpayer Relief Act of 1997, this tax credit can reduce employers’ federal tax liability by as much as $8,500 per new hire.
