Work Opportunity Tax Credit Program

Purpose
This program provides a federal tax credit to private-sector 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; unemployed veterans who received food stamps or who are entitled to compensation for a service-connected disability; 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 18-39, who reside in an empowerment zone in Minneapolis or in a designated Minnesota rural renewal county; individuals, age 18-39, who received food stamps; and individuals who have received Supplemental Security Income. Under the American Recovery and Reinvestment Act of 2009, two new temporary groups were added for 2009 and 2010 only: unemployed veterans who received federal or state unemployment compensation; and disconnected youth, age 16-24, who lack basic skills. DEED provides program information to employers and certifies employer applications.

Measures - Reporting period is state fiscal year (SFY), July 1 - June 30

Funding Source and Expenditure (in thousands)

Statutory Authority
-- 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

This information current as of January 2010.