Your Small Business May Benefit from the Work Opportunity Tax Credit

As part of the Small Business and Work Opportunity Act of 2007, some changes were made in the Work Opportunity Tax Credits. These credits have been enacted to give small businesses an incentive to hire "disadvantaged" or disabled employees or those in certain areas of declining population. Here are some highlights:

• The maximum age of "designated community members" was increased from 25 to 40. This allows you to get credit for hiring these individuals as employees.
  
• The number of eligible communities was expanded to include those communities that experienced net population declines from 1990 to 1994 or 1995 to 1999. If your community fits this criterion, your business may be eligible for tax credits for hiring people in the community.
  
• Eligible employees now include certain disabled veterans (with service-connected disabilitie) who are unemployed for at least six months out of the last 12 or who were discharged more than a year ago. Hiring these individuals also helps you qualify for tax credits.

As you can see, investing in the people in your community by hiring them can bring you tax credits to reduce your business taxes. Check with your CPA to discuss these potential tax breaks.