Maine Employers Should Take Advantage of Tax Credits When Hiring in 2013 Bookmark and Share

February 11, 2013

For Immediate Release: Feb. 11
Contact: Julie Rabinowitz, (207) 621-5009

Credits extended for hiring veterans, residents of Piscataquis and Aroostook counties and others

AUGUSTA—The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. Congress reauthorized the program in the tax deal made at the end of 2012.

Maine employers can take advantage of the program when making hiring decisions. The maximum tax credit ranges from $2,400 to $9,600, depending on the employee hired.

Commissioner of Labor Jeanne Paquette noted the benefit to employers, explaining, “Businesses will be glad to know that employers who participate in the WOTC program make the hiring decision themselves, complete minimal paperwork to claim the tax credit, and can hire as many new individuals who qualify for the credit as they need.”

“In this economic environment, the LePage administration wants businesses to take advantage of services that not only decrease the cost of doing business but also help employ more Mainers,” the commissioner emphasized.

WOTC provides employment opportunities for targeted workers through employer tax credits. The program covers not only veterans who meet certain conditions, including veterans having a service-connected disability, but also certain recipients of Temporary Assistance for Needy Families (TANF), Supplemental Security Income (SSI) and SNAP (food stamps) as well as persons with disabilities and ex-felons.

In addition to these categories, the federal government designates residents of certain communities as eligible for the tax credit. In Maine, businesses in any county can receive a credit by hiring residents of Piscataquis and Aroostook counties who are between the ages of 18 and 39.

Several of these targeted groups, including ex-felons, may also be eligible for the Federal Bonding Program, an incentive program allowing employers to hire at-risk job applicants with limited liability to their business. The bonds cover the first six months of employment at no cost to the employer or the job applicant.

To learn more about the tax credit program or the bonding program, please contact the WOTC program coordinator at the Maine Department of Labor’s Bureau of Employment Services at 207-623-7981 or visit a CareerCenter. The locations of Maine’s 12 CareerCenters are available at http://www.mainecareercenter.com .

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Credits extended for hiring veterans, residents of Piscataquis and Aroostook counties and others