The credit is available one time with respect to each targeted-group member and is based on wages paid for the 1-year period beginning on the date the individual begins work for the employer. The maximum qualified first-year wages is limited to $6,000 ($3,000 for summer youth employee). The maximum qualified first year wages for certain veterans increases to $12,000, $14,000 or $24,000.
There are 2 different rates that may apply depending on the number of hours worked by the targeted group employee:
- 25% for individuals who worked fewer than 400 hours but at least 120 hours, or
- 40% for individuals who worked 400 hours or more