Advocacy News – December 17, 2021
Federal tax credits up to $9,600 are available to help employers and small business owners hire Michiganders, fill labor shortages and grow the economy.
With the Work Opportunity Tax Credit, a federal business credit available to private, for-profit employers who hire from certain targeted groups, including qualified long-term unemployment recipients, veterans, returning citizens and others who are traditionally at a hiring disadvantage, employers can earn tax credits from $2,400 to $9,600 for each employee hired. Generally, the credit is 40% of qualified wages paid to individuals who work 400 hours or more in their first year of employment.
This is a one-time tax credit for each new hire. There is no limit to the number of new hires who can qualify an employer for the tax credit.
Eligible worker categories include:
- Long- or short-term temporary assistance to needy family recipients
- Qualified veterans
- Supplemental Nutrition Assistance Program recipients
- Designated communities – empowerment zone and rural renewal county
- Michigan Rehabilitation Services customers
- Returning citizens
- Supplemental security income recipients
- Qualified long-term unemployment recipients
Employers must apply for and receive a certification verifying that a new hire is a member of one of the target candidate groups before they can claim the tax credit.
Employers interested in taking advantage of this tax credit are encouraged to visit the Michigan Unemployment Insurance Agency’s Work Opportunity Tax Credit webpage to learn more and get started.