This is a one-time credit for each new hire. To claim the credit, your business must file a Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with your state workforce agency within 28 days after the eligible employee begins work. The maximum qualified first-year wages for members of most targeted groups is limited to $6,000 ($3,000 for summer youth employee). The maximum qualified wages for any employee certified as a long-term family assistance recipient is limited to $10,000 per year. 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

Note: A credit for second-year wages for employment of long-term family assistance recipients may also be available.

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