The Tax Relief Act and Health Care Act of 2006 extends the Work Opportunity Tax Credit (“WOTC”).  The WOTC has two purposes:

• To promote the hiring of individuals who qualify as a member of a target group, and
• To provide a federal tax credit to employers who hire these individuals

An employer may qualify for a tax credit of up to $9,000 if the employee is a member of a designated target group and meets that group’s specific requirements. 

There are nine target groups for WOTC eligibility and many of WE’s graduates fall into one or more of the designated target groups.

Employers may also seek tax credits through the federal Welfare-to-Work Tax Credit program.  This program provides for a tax credit to employers of up to $8,500.

Employers may also be able to receive incentives from the State of California in the event they hire certain individuals and their businesses are located with “Enterprise Zones.”  The Enterprise Zone Program target designated areas throughout California. Special state and local incentives encourage business investment and promote the creation of new jobs.   The Enterprise Zones in the Sacramento region are currently Florin-Perkins, Northgate/Norwood, and the Sacramento Army Depot.

Under this program, businesses can receive hiring credits for 5 years for Qualified Employees - 50% the first year and declining 10% a year (Which can amount to $26,000+per employee).

The Workforce Investment Act funds a variety of services for employers in One-Stop Career Centers throughout the State. Your business might qualify for customized training, on-the-job training reimbursement assistance, and training subsidies.

More information will be available at WE’s July 27, 2007 breakfast on the financial benefits to which you may be eligible in the event you hire one or more of WE’s graduates. Should you want more information, please contact Lisa Culp at WE – 916-669-9307.