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6/2008
Tax Credit Services, Inc.
FEDERAL TAX INCENTIVES
The federal government allows businesses to claim tax credits for
hiring members of targeted groups and for conducting business in specially designated areas. Tax
Credit Services’ experts can assist your business in obtaining these tax benefits through our
comprehensive screening process, extensive knowledge base, and state-of-the-art technology.
WORK OPPORTUNITY TAX CREDIT - (WOTC)
The Work Opportunity Tax Credit is a federal hiring incentive that provides a tax credit of up to
$2400, $4,800 and $9,000 if your company is hiring from any one of the following groups:
• A member of a family that is a Qualified Food Stamp Recipient
• A member of a family that is a Qualified Aid to Families with Dependant Children (AFDC)
Recipient
• Qualified Veterans
• Qualified Ex-Felons, pardoned, paroled or work release individuals
• Vocational Rehabilitation Referrals
• Qualified Summer Youths
• Qualified Supplemental Security Income (SSI) Recipients
• Qualified Individuals living within an Empowerment Zone, Renewal Community or Enterprise
Community
• Resident of one of 408 designated Rural Renewal Counties (announced in June 2007 and replaces the
Hurricane Katrina eligibility for WOTC)
• Long Term Family Assistance Recipient (TANF)
Additionally, we obtain the required documentation and submit the necessary forms to the government
agencies on your behalf. Our staff will then process the certification paperwork, calculate the
federal tax credits, and produce tax forms and reports for you.
EMPOWERMENT ZONE TAX CREDIT
The Empowerment Zone and Enterprise Community program offers tax incentives to companies located
within these designated areas to afford the local communities real opportunities for growth and
revitalization. Empowerment Zones are selected based on poverty levels, unemployment rate, crime
rate, and the number of low income households.
The Empowerment Zone Tax Credit is a tax credit equal to 20% of the first $15,000 in wages in any
year if the employee lives and provides services in an Empowerment Zone. The Department of Housing
and Urban Development designates Rural and Urban Empowerment Zones. Empowerment Zones and
Enterprise Communities also offer many other increased deductions, depreciations and capital gains
incentives.
To be eligible, a new or existing employee must reside in the EZ/RC and be employed for at least 90
days after the initial date of hire.
RENEWAL COMMUNITY TAX CREDIT
The Renewal Community Tax Credit is a tax credit equal to 15% of the first $10,000 in wages in any
year if the employee lives and provides services in a Renewal Community. The Department of Housing
and Urban Development designated 40 Urban and Rural Renewal Communities effective January 1, 2002.
Renewal Communities also offer many other increased deductions, depreciations and capital gains
incentives.
If you are thinking you might need to do a bit of easy research for your company, order one of our
FREE Reports on Tax Credits
STATE AND LOCAL TAX CREDITS AND INCENTIVES
Every state offers some form of tax incentive to encourage certain business activity such as
investing in specific areas or hiring from targeted groups. Identifying the incentives available to
a company in a particular jurisdiction and determining the applicability of those incentives can be
a difficult, confusing and labor intensive task.
Since we are located just outside of Atlanta, Georgia, we are experts in the various Georgia
programs that are designed to encourage increased employment. These programs are complicated and
our staff is intimately familiar with the inter-workings of these programs as well as the Georgia
Dept. of Revenue's policies and procedures on their processing.
In addition, our staff will provide a comprehensive evaluation of the tax incentives available for
your company’s locations. Tax Credit Services' staff will identify opportunities available to your
company nationwide and work with your staff to implement programs to retrieve these incentives.
• Tax credit reviews, including manufacturing credits, enterprise zone credits, research and
development credits, and all other business-related tax credits
• Assistance in applying for grants available for training, plant expansion or a plant
relocation
• Strategic consulting, including research and planning related to tax minimization projects
• Job Creation - Income, franchise and sales and use tax incentives for creating jobs within a
jurisdiction
Point of Hire - Tax credits for hiring individuals from targeted groups such as welfare recipients,
disabled individuals and residents of economically distressed areas
Enterprise Zones - These geographically defined areas offer incentives ranging from wage tax
credits, investment tax credits, property tax abatements, gross receipt tax exemptions, sales/use
credits and refunds and low income financing.
Investment - Tax credits based on investment in qualified machinery and equipment, up to 10% of
costs.
Sales and Use Tax - Credits and refunds based on qualifying purchases
Child Care - Tax credits of up to 50% of expenditures incurred related to childcare programs and
facilities
Training - Income tax credits and wage subsidies of up to 100% of training expenses or 50% of wages
for employing qualified individuals and providing job training programs
Property Tax - Exemptions and abatements from taxation on real and personal property
Local - Local tax incentives include property tax abatements, sales/use tax credits and refunds and
payroll tax credits
If you are thinking you might need to do a bit of easy research for your company, order one of our
FREE Reports on Tax Credits
Renewal Communities
Parts of the following areas are designated as renewal communities. The designations will generally
remain in effect until the end of 2009. You can find out if your business or an employee's
residence is located within a renewal community by using the RC/EZ/EC Address Locator at
www.hud.gov/crlocator or by calling 1-800-998-9999.
• Greene-Sumter County, AL
• Mobile County, AL
• Southern Alabama
• Los Angeles, CA
• Orange Grove, CA
• Parlier, CA
• San Diego, CA
• San Francisco, CA
• Atlanta, GA
• Chicago, IL
• Eastern KY
• Central Louisiana
• New Orleans, LA
• Northern Louisiana
• Ouachita Parish, LA
• Lawrence, MA
• Lowell, MA
• Detroit, MI
• Flint, MI
• West Central Mississippi
• Turtle Mountain Band of Chippewa, ND
• Camden, NJ
• Newark, NJ
• Buffalo-Lackawanna, NY
• Jamestown, NY
• Niagara Falls, NY
• Rochester, NY
• Schenectady, NY
• Hamilton, OH
• Youngstown, OH
• Philadelphia, PA
• Charleston, SC
• Chattanooga, TN
• Memphis, TN
• Corpus Christi, TX
• El Paso County, TX
• Burlington, VT
• Tacoma, WA
• Yakima, WA
• Milwaukee, WI
Tax Credit Services, Inc. offers Federal and State tax credit implementation. Below is an
overview of all services that we offer. Most of the Federal Tax Incentive Programs listed are
available in every state. Some differ in availability from state to state.
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