Work Opportunity Tax Credit Program - Annual Program Summary
Purpose
These programs provide a federal tax credit to employers as an incentive for hiring members of targeted groups who traditionally have difficulty finding jobs.
Customers
Primary customers are Minnesota employers interested in hiring targeted job seekers, and the targeted job seekers themselves.
Targeted groups include recipients of the Minnesota Family Investment Program; veterans who received food stamps for at least 3 out of the last 15 months
or who are entitled to compensation for a service-connected disability and have been unemployed for a period or periods totaling at least 6 months; ex-felons hired within one year after conviction or release from prison; Vocational Rehabilitation clients
and Ticket-to-Work holders; summer youth, age 16-17, who reside in an empowerment zone
located within the city of Minneapolis; individuals, age 18-40, who reside in an empowerment zone
in Minneapolis or reside in a designated Minnesota rural renewal county; individuals, age 18-40, who have received food stamps for the last six months; and individuals who have received Supplemental Security Income benefits for at least one month within 60 days of their hire-date. DEED provides program information to employers and certifies employer applications.
Measures - Reporting period is federal fiscal year (FFY), October 1 - September 30
FFY 2005 |
FFY 2006 |
FFY 2007 |
|
| Number of tax credit applications processed | 16,976 |
11,829 |
27,646 |
Funding Source and Allocation
The programs, funded by an annual U.S. Department of Labor grant, received $282,154 for FFY 2007.
Statutory Authority
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Small Business Job Protection Act of 1996 - Public Law 104-188; Taxpayer Relief Act of 1997 - Public Law 105-34; Ticket to Work and Work Incentives Improvement Act of 1999 - Public Law 106-170; Job Creation and Worker Assistance Act of 2002 - Public Law 107-147; Working Families Tax-Relief Act of 2004 - Public Law 108-311;
Tax Relief and Health Care Act of 2006 - Public Law 109-432; Small Business and Work Opportunity Tax Act of 2007 - Public Law 110-28; U.S. Code, Title 26
Contact Information
Frances Regan, Program Coordinator
Phone: 651.259.7508; Fax: 651.297.7722; TTY: 651.296.3900
E-mail: deed.wotc@state.mn.us
Website: www.deed.state.mn.us/wotc/
This information current as of January 2008. For more information on DEED programs, see the State of Minnesota budget pages.