Purpose:
To provide a financial incentive for employers to
hire from 8 targeted groups of people with barriers
to employment.
Authorization:
Public Law 106-170 Section 505.
How The Program Works:
A certification for a federal income tax credit of
up to $2,400 will be issued for each new hire that
is certified by the Missouri Division of Workforce
Development (DWD) as a member of one of the
following target groups:
- Short-term Welfare recipients
- 18-24 year-old Food Stamp recipients
- Veterans receiving Food Stamps
- Vocational Rehabilitation referrals
- 18-24 year-old Empowerment Zone or Enterprise Community residents
- 16-17 year-old Empowerment Zone or Enterprise Community residents hired as Summer Youth Employees (Maximum credit of $1200 between May 1 and Sept. 15)
- Ex-Felons who are members of a low-income family
- Supplemental Security Income recipients
Eligible Areas:
Statewide
Eligible Applicants:
Any private, for-profit business
Eligible Use Of Tax Credits:
The tax credits may be used to offset federal
income tax liability of the business. Unused credit
may be carried back one year and carried forward
20 years. The tax credits are not sellable or
transferable. (Section 51, Internal Revenue Code
1986, as amended)
Application Procedure/Approval Method:
A business will submit an application to DWD no
more than 21 days after the employee's first day
of work. If DWD finds that the employee meets
the target group eligibility criteria, a certification
for the credit will be issued to the employer. The
program is not competitive or based on first-come
submission.
The credit is equal to 40% of the first $6,000 of the first year's wages for a maximum credit of $2,400 for employees that work at least 400 hours. For employees who work at least 120 hours, but do not reach 400 hours, the credit is calculated at 25%.
Funding Limits:
There is no limit on the amount per business or
total amount distributed annually.
Contact:
MO Department of Economic Development
Division of Workforce Development
Employer Relations Section
421 East Dunklin, PO Box 1087
Jefferson City, MO 65102-1087
Phone: (573) 751-0977
Phone: 800-877-8698
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