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Work
Opportunity Credit
The
work opportunity credit has been extended to cover members of
targeted groups who begin work for you before September 1, 2011.
For tax years beginning after December 31, 2006, there is no longer
an alternative minimum tax limitation with respect to this credit.
For more information about this credit, see Form 5884, Work Opportunity
Credit.
Members
of targeted groups. For employees who begin work for you after
December 31, 2006:
Long-term
family assistance recipients are members of a targeted group (if
hired before January 1, 2007, see Form 8861, Welfare-to-Work Credit).
Ex-felons are no longer required to be a member of a low-income
family.
Food stamp recipients must be at least age 18 when hired, but
not age 40 or older.
For individuals who begin work for you after May 25, 2007:
The
qualified veterans group is expanded to include veterans entitled
to compensation for a service-connected disability and who, during
the one-year period ending on the hiring date, were (a) discharged
or released from active duty in the U.S. Armed Forces or (b) unemployed
for a period or periods totaling at least 6 months. The first-year
wages taken into account for these disabled veterans is $12,000.
The high-risk youth group has been renamed "designated community
residents" and expanded to include individuals who are at
least age 18 but not yet age 40. In addition, residents of rural
renewal counties have been added to this group.
For more information, see
Form 8850, Pre-Screening Notice and Certification Request for
the Work Opportunity Credit, and its Instructions.
For
individuals who begin work for you after May 25, 2007, the qualified
veterans group is expanded to include veterans entitled to compensation
for a service-connected disability and who, during the one-year
period ending on the hiring date, were (a) discharged or released
from active duty in the U.S. Armed Forces or (b) unemployed for
a period or periods totaling at least 6 months. The first-year
wages taken into account for these disabled veterans is $12,000.
For
individuals who begin work for you after May 25, 2007, the high-risk
youth group has been renamed "designated community residents"
and expanded to include individuals who are at least age 18 but
not yet age 40. In addition, residents of rural renewal counties
have been added to this group. See
the Instructions for Form 8850 for more information.
For
tax years beginning after 2006, the work opportunity credit is
allowed against both the regular tax and the alternative minimum
tax.
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