ITG FAQ #10 Answer-How is the amount of Work Opportunity Credit determined?
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).
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. The maximum credit is $1500 ($6000 x 25%), or
- 40% for individuals who worked 400 hours or more. The maximum credit is $2400 ($6000 x 40%).