January 22, 2015
Here are some employer tax credits and incentives you may not have known about, with links or contact information for each:
Transportation incentives. You may be able to provide employees up to $65 per month for commuting expenses. Welfare-to-Work tax credits. These relatively new incentives from the federal government are geared toward employers who hire long-term (18 months or more) welfare recipients. Substantial credits are available, especially if you keep the employee on past their first year. The Welfare-to-Work Partnership may be able to help you. Work Opportunity Tax Credit (WOTC). Can reduce your tax liability up to $2,400 per employee. Employees must fit into certain categories of food stamp or welfare recipients, veterans, ex-felons, SSI recipients, employees from tough areas, and others. Congress is continually starting and stopping the WOTC, but it can be a good incentive anyhow. If you think you're going to be using it a lot, there are consultants who specialize in the WOTC who can help you. Other federal incentives. As you know, there are other incentives available, for everything from child care to educational assistance. You can call the IRS at (800) 829-1040. Their Web site can be helpful. Good publications to get include Publication 535 (Business Expenses), Publication 334 (Tax Guide for Small Businesses) and Publication 553 (Annual Supplement).
- ADA tax credits. Small businesses are eligible for tax credits for making their workplaces more accessible through construction or removing barriers. The Job Accommodation Network is a good source of information.
- Urban and rural "empowerment zone" tax credits. Credits against the wages of employees in certain distressed communities. The document "EZ/EC Tax Incentives: A Guide for Businesses" is pretty good but be patient as it takes a little while to download.
- State tax incentives.