Work Opportunity Tax Credits Expand for Iowa Employers

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The Work Opportunity Tax Credit (WOTC) program provides employers with tax credits of up to $2,400 for wages paid per employee hired from targeted groups during their first twelve months of employment.  In order to help North Iowa employers learn more about this tax credit, The Business and Industry Group of North Iowa and Iowa Workforce Development will offer an information session on applying for the Work Opportunity Tax Credit September 26, 2007, from 1:30 p.m. to 3 p.m. in Activity Center Room 101 on the NIACC campus.  There is no cost to attend the session.

“Local workforce development staff sees this session as a great opportunity for local employers to learn if they qualify for the credit and if so how they can claim it,” Terry Schumaker, Workforce Development Partnership director of economic development, said.

Work Opportunity Tax Credits are still available to employers who hire 18-24 year olds from a family receiving welfare assistance including food assistance; residents of Empowerment Zones, Enterprise Communities or Renewal Communities.  Employers may be eligible for credits when hiring individuals with disabilities, ex-felons or Social Security Insurance recipients, regardless of their age.

“Two program expansions have significantly increased the available credits for Iowa employers.  The Rural Renewal Counties and the Disabled Veterans categories provide benefits for hiring individuals in specific counties as well as disabled veterans, therefore, increasing their potential employment options,” Elisabeth Buck, Iowa Workforce Development director, said.  “Programs such as the WOTC provide an incentive for employers to satisfy their workforce needs with traditionally under utilized candidate pools.”

The Rural Renewal Counties category allows a tax credit for hiring individuals, age 18-39, in the following Iowa counties: Adair, Adams, Appanoose, Audubon, Butler, Calhoun, Cass, Cherokee, Clay, Clayton, Emmet, Floyd, Franklin, Fremont, Hancock, Humboldt, Ida, Keokuk, Kossuth, Montgomery, Osceola, Palo Alto, Pocahontas, Poweshiek, Sac, Taylor, Union, Wayne, Winnebago and Worth.  The Disabled Veteran category applies to veterans with a service-connected disability and hired within one year of having been released from active duty or unemployed any six of the last twelve months.

For immediate information on applying for the tax credits, contact Jeanne Sorensen-Wright at

To register for the September 26 session, call 1-888-GO NIACC ext. 4358 or 641-422-4358 and request course number: 54286.


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