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The $8,500 Carrot
Federal jobs programs lend new sheen to some workers
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Business New Haven
11/17/1997
By: Linda Mele
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Employers may be eligible for tax credits in two federal programs administered by the state's Department of Labor.
The Work Opportunity Tax Credit (WOTC) is a federal program designed to encourage employers to hire individuals with marginal employment histories. To qualify, employees must begin work between September 30, 1997 and July 1, 1998. WOTC provides a tax credit up to $8,500 for employers who hire employees from target groups who remain employed for at least two years.
The Welfare-To-Work Tax Credit is for long-term family assistance recipients who begin work after December 31, 1997 and before May 1, 1999. It provides a credit of 35 percent of qualified wages (maximum $10,000) for the first year of employment (if employed at least 180 days, or 400 hours) and 50 percent for the second year.
Both programs stem from the Taxpayer Relief Act of 1997, signed by President Clinton , which extended the WOTC program for nine months and established the Work-To-Welfare program.
Linda Libby, general manager of the Omni New Haven Hotel at Yale, says when her company is finished hiring it will employ between 250 and 300 workers. According to Libby, about 100 people who are undergoing training may qualify for one of the programs.
“We were excited to hear about it and get involved,” Libby says. “It provides a larger pool of people from which to choose and helps employers at the same time.”
For further information:
• To get a list of the 105 federally designated Enterprise Communities or Empowerment Zones, www.ezec.gov or call 1-800-998-9999.
• For Welfare-To-Work Grant Program, visit the DOL at www.doleta.gov or call 202-208-7281.
• For a directory of state WOTC coordinators, visit www.doleta.gov/wotc.htm or call 202-219-9092.
• For tax-related aspects call Robert Wheeler at the IRS, 202-622-6060. BNH
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