La Jicarita Enterprise Community
    School-To-Work Opportunities
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Child Labor Law|Liability|Tax Incentives|Glossary

Federal Tax Incentives for Hiring
Enterprise Community Youth
Effective October 1, 1996 employers have a new Federal tax incentive, the Work Opportunity Tax Credit (WOTC), to hire youth who resides in Enterprise Communities.

Qualifying Employees

*   The employer may take the credit for hiring young Enterprise Community residents-individuals
     who are 18 through 24 (high risk youth) and individuals 16 and 17 years old who are hired to
     work between May and September (summer youth employees).
*   The credit is available whether the Enterprise Community youth works inside or outside the
     enterprise community, so long as the principle residence of the youth is within the enterprise
*   The credit may not be claimed for wages paid to certain employees related to the employer
     or any owner of at least 5% of the business.

Credit Amount

*   The maximum credit amount for high risk youth is $2100.00 per hire.  The credit is equal to 35%
     of up to $3000.00 in wages paid for any 90 day period between May 1 and September 15.
*   The credit for those age 18 to 24 is up to 40% of qualified wages of employees who work 400
     hours or more, increasing the credit amount from $2100.00 to $2400.00.
*   The amount of credit is capped at $3000.00 in wages paid during the first year of employment
     for Summer Youth of the Enterprise Community.

To receive more information contact Robert Wheeler @ (202) 622-6060

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