Purpose:
To provide a financial incentive for employers to hire long-term welfare recipients.
Authorization:
Public Law 106-170 Section 505.
How the Program Works:
A certification for a federal income tax credit of
up to $8,500 will be issued for each new hire that
is certified by the Missouri Division of Workforce
Development (DWD) as a member of the long-
term Welfare recipient target group defined as a
member of a family that:
- Received AFDC/TANF (Welfare) for the last
18 months, OR
- Received AFDC/TANF for any 18 months
since August 5, 1997, OR
- Stopped being eligible for AFDC/TANF because the 60-month lifetime limit was reached.
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 35% of the first $10,000 of wages for the first year of employment ($3,500 maximum), and 50% of the first $10,000 of wages in the second year of employment ($5,000 maximum) for a maximum credit of $8,500.
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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