Call Us: (563) 583-2115
Call Us: (563) 583-2115


Understanding State Tax Incentive Programs

The Importance of Corporate Incentive Programs

It is common for local, state and federal government entities to offer tax incentive programs to recruit businesses to designated enterprise zones (also called empowerment zones) to stimulate growth. Additionally, in many states, employers are provided opportunities to participate in programs that support the economic development within their community in exchange for specific tax credits.

Qualifying activities such as job creation, research development, manufacturing, and other growth endeavors are included in these tax incentive programs to help support the state’s economic objectives. Each state has unique strategies in place to stimulate and diversify their economies.

Businesses can benefit from their state’s tax programs by promoting new capital investments and other desirable economic activities within a company. There are a wide range of employer tax incentive programs available for businesses in 2023. Here are a few specific objectives that states consider when offering their corporate tax incentive programs.

Job Creation

Hiring is something that most companies do often. Job creation and hiring tax credits are widely available. As far as employer tax credits are concerned, the job creation silo is certainly one of the most favorable, as it provides the push needed to grow and diversify a company and strive for revenue building growth.

Enterprise Zoning

Enterprise zone credit programs are incentives designed to help stimulate growth in depressed areas of a state. Areas of underemployment are targeted to help revive these somewhat struggling areas so they can attract more development and opportunity. Many qualifying locations benefit from the added jobs, market growth, and community awareness.


The opportunity for manufacturing credit is often offered with the intention of bringing manufacturing activity to the state. This can significantly increase the number of available jobs and an promotes an atmosphere that inspires other manufacturing opportunities. Bringing in new businesses and increasing operating margins translates to new products, jobs, and industry advancements.

Research & Development

Research and development credit is used to motivate companies to engage in activities related to developing knowledge. This credit provides additional funds to stimulate innovation and development and is typically available to businesses of all sizes.

Work with a Tax Credit Consultant

Companies that analyze credits that exist in their state will benefit by taking steps to qualify for these programs proactively. Here at Tax Credit Group, we help your business by screening your company for employer tax incentives to ensure you get the credits that are owed to you. Call us today at (563)583-2115 to learn which benefits could be available to your company.

Veteran Hiring Credits

Do you know a military veteran in search of a job? When you recruit from this group, you bring jobs to the the men and women who have protected our country.

Not only can your hiring practices benefit military veterans in need of work. You could also qualify for the federal Work Opportunity Tax Credit (WOTC).  This incentive awards up to $2400-9600 per eligible applicant to businesses nationwide. Military veterans fit WOTC requirements as long as they meet these subcategories.

1.) Long Term Unemployed Veterans- These applicants are considered as long as one of two criteria are met:

  • They were without work at least four weeks during the twelve months before their hire date.
  • They received unemployment compensation for 27 weeks or longer in the year before their hire date.

2.) SNAP beneficiaries or recipients- Veterans are eligible if they or family members receive SNAP aid. This target group must have received assistance at least three months during the fifteen month period ending on their hire date.

3.) Disabled veterans- WOTC representatives consider this target group if either of the following apply:

  • Hired within a year of discharge or release from active duty.
  • Unemployed at least six months in the year prior to hire.

Applying for WOTC is a simple process. New hires complete IRS Form 8850 and 9061. These applications must be submitted to state workforce agencies within 28 days of new hires’ start dates. Applicants need to work a minimum of 120 hours during the year once they are hired. The credit is calculated, based upon the hours and wages paid during the new hire’s first year of work.

If you would like to learn more, call us at 563-663-1656. Try our savings calculator to see how much your business could be awarded with the WOTC incentive.

The 2015/2016 Transitional Relief Opportunity Has Been Extended

A few months back we shared with you here, that the Federal Government announced their renewal of the Work Opportunity Tax Credit Program. (WOTC) for 2015 through 2019 and that is really great news!

The renewal also included a temporary Transitional Relief period that allows you to go back and submit all employees you hired between January 1, 2015 and June 29, 2016 for tax credits that had been missed. This was a tremendous opportunity since there were millions of new hires that were not submitted for credit during that time period.

Recently the IRS announced a final extension to the Transitional Relief program and now you have until September 30, 2016 to make sure all your new hires are submitted for tax credits!

Nothing has changed with the program except you have an additional 90 days to submit your employees hired between 1/1/2015 and 9/30/2016 that worked 120 hours.

Although this might seem like a daunting task, we have systems prepared that help us handle the heavy lifting for you.

If you’re wondering if the reward is worth the effort; the companies we help see an average increase of $65,000 in tax credits. (Some as high as $300,000)

There’s only one catch! We Must get all of your 2015 new hires submitted ASAP!

Procrastinating will lead to missed credits or having your credits delayed by several months because of your State’s potential backlog. To find out just how easily we can help you take full advantage of this opportunity, reach out to us here. We will show you how we can handle all the legwork for you, but we need to get started soon because time is running out.

Don’t miss this opportunity and over-pay your 2015/2016 taxes!

Don’t Avoid Hiring Persons with Disabilities

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Companies often miss hiring amazing employees because of unfounded fears associated with hiring persons with disabilities. Many major corporations have found tremendous success and benefits by hiring from a talent pool that most shy away from. Here we’d like to help ease your fears by proving that most of them are truly myths.

Hiring persons with disabilities is a rewarding experience Businesses shy away from opportunities, fearing commonly held misconceptions. Some of these fears are unfounded and you may be surprised to know that hiring from this population really isn’t as risky as commonly believed.

Fear: lackluster performance compared to other workers.

Fact: Researchers have actually found similar work standards performed among employees, regardless of their abilities. As a matter of fact, companies, such as Walgreen’s, have actually seen better safety records and the same, if not better, production results from persons with disabilities compared to non disabled employees. Other businesses, such as car wash owners, have reported that they actively recruited persons with autism thanks to their meticulous attention to detail and precision when cleaning vehicles. Restaurant franchises, such as Applebee’s and Five Guys Burgers and Fries, have successfully employed persons with disabilities to greet customers, or to oversee the small, yet invaluable details, like cleaning the dining rooms, maintaining supply stocks, and rolling silverware.

Convenience store managers report that workers with disabilities have actually improved productivity among teams. Their work attitudes have boosted morale and their loyalty to cleaning, stocking shelves and maintaining a neat store appearance helps co-workers focus on other duties essential to the workplace.

Fear: Poor attendance and increased turnover

Fact: Walgreen’s experience proves this belief couldn’t be farther from the truth. A study of its distribution centers by the American Society of Safety Engineers found that workers with disabilities had a 48% lower turnover rate than their non-disabled coworkers, 67% lower medical costs and 73% lower costs due to absenteeism. Many employees with disabilities, similarly, look forward to coming to work and exceeding expectations. In turn, business managers have noted higher retention rates among persons with disabilities as well. Managers have reported improved employee morale among staff contributing to overall employee engagement and increased job satisfaction.

Fear: Increased exposure to litigation and liability.

Fact: Although some industries include elevated risks, such as food service, companies like Starbucks, have mitigated workplace hazards by working with local agencies to build low risk tasks tailored to employees’ talents. Statistics show that legal action concerning employers and disabled employees is quite sparse. From 2011-2015, only 200 lawsuits were filed by the EEOC involving persons with disabilities. That averages fifty lawsuits a year, nationwide, or one lawsuit per state annually.

Fear: High supervision demand and increase coworkers’ responsibilities.

Fact: Many local work rehabilitation services offer job coaches for persons in need at no cost to the individual’s employer. The agency support staff train persons in need, thus freeing co-workers to tend to their own responsibilities maintaining a high level of productivity.

Not only are these fears untrue, but employers that have hired persons with disabilities have experienced improved morale and productivity. There are plenty of other benefits to be had, not the least of which is qualifying the employer for lucrative tax credits. The Federal government pays millions of dollars in tax credits each year for businesses who hire specific employees under the Work Opportunity Tax Credit (WOTC) Program.

Tax Credit Group Group administers the Work Opportunity Tax Credit (WOTC), a federal program rewarding businesses who hire persons with disabilities. To learn how to save tax liability for your business, contact us Here or call 563-583-2115.

TANF: A primary component of WOTC tax credits


The WOTC program includes many target groups. Among these are TANF (Temporary Assistance for Needy Families) recipients, or qualifying persons receiving financial assistance. It’s highly likely that you may have hired a TANF beneficiary and not have known it. According to USDA statistics, in fiscal year 2014, SNAP recipients represented over $3 billion in available tax credits.

With the volume of TANF recipients in this country, you’ve probably hired untold numbers which met WOTC qualifications. Did you know that during the 2014 calendar year that nearly 36 million Americans received this aid? Since the 2007 recession, the number of families that have qualified for this financial assistance grew by 50%.

TANF is a financial assistance program for low income families that have children and for pregnant women in their last three months of pregnancy. The program provides temporary financial assistance while at the same time helps TANF recipients find jobs that will allow them to support themselves.

Hiring a TANF recipient could earn you up to $2,000 in tax credit for each new candidate. There are different qualifications for Long-Term and Short-Term recipients.

Long-Term Temporary Assistance for Needy Families (TANF) Recipient
To qualify for this target group, a new hire must be a member of a family that meets one of the following circumstances:

  • Has received TANF benefits for at least 18 consecutive months ending on the hiring date; OR
  • Has received TANF benefits for at least 18 consecutive or non-consecutive months after August 5, 1997, AND has a hiring date that is not more than 2 years after the end of the earliest 18-month period after August 5, 1997; OR
  • Has stopped being eligible for TANF payments during the past 2 years, because a Federal or state law limited the maximum time those payments could be made.

Short-Term TANF Recipient
A new hire qualifies for this target group, if the individual is a member of a family that received TANF benefits for any 9-month period during the 18-month period ending on the hiring date.


It’s important to note that State workforce departments must receive requests within 28 days of new hires’ start dates.

The great news is these people are easier to identify than you thought possible. By taking advantage of these, and making minor tweaks in your hiring process, you could save thousands in tax dollars. Give us a call at 563-583-2115 to learn how to get started or you can find out how much you have been missing in tax savings by using our free calculator HERE.

2014 WOTC Tax Extension Reminder


With tax deadlines looming, we thought it best to revisit the specifics of WOTC for 2014 and what implications that has on your corporate taxes.

A quick reminder that for 2014 you can file for WOTC tax credits by April 30, 2014. With this unique extension, states are backlogged and may require extra time to issue your credits.

For this reason many companies filed for an extension on their corporate taxes in order to easily allocate their 2014 WOTC credits once issued.

For the 2014 tax credits they must be applied in the following order.

  • 2014 Tax liability
  • 2013 Tax liability
  • Carry forward to the next year of liability (up to 20 years)

If you didn’t file an extension, you will still be able to file an amended return once your state has issued all tax credits for 2014.

You’ll want to make sure you discuss this with your tax preparer to make sure you properly claim your credits.

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3500 Dodge Street Suite 302 | Dubuque, IA 52003 | (563) 583-2115