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General Information
The Empowerment Zone and Work Opportunity Tax Credits are federal incentives designed to encourage hiring people with barriers to employment. The credit is taken as a reduction in the company’s federal tax liability. The credit can be carried forward for up to 20 years.
Empowerment Zone
Receive a federal tax credit of up to $3,000 (20% of the first $15,000 in employee wages) per employee per year. The credit is available to businesses located in the Empowerment Zone that also have employees who live in the Empowerment Zone. The credit applies to new hires and existing employees and can be received for each year that the Zone is in existence.
To see if your one of your candidates is lives in the Empowerment Zone, click one of the links below:
Inside Tucson click here
Outside Tucson click here
Work Opportunity Tax Credit
This credit is available for any business that hires a new employee who meets certain criteria. The tax credit can be up to $2,400 (40%of the first $6,000 in employee wages) per employee. This credit is limited to the first year of employment.
For firms located within the Zone, this credit may be combined with the Employment Tax Credit but not in conjunction with the Welfare to Work Tax Credit.
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