Hiring and Tax Incentives for Employers

Employers can benefit from a wide range of hiring and tax incentive programs designed to pair them with the talent they need while helping job seekers reenter the workforce.

 

On-The-Job-Training

Designed to help an employer hire and train individuals who lack sufficient experience or knowledge for their particular needs. The On-The Job Training is hands-on training that an employer designs. Employers are reimbursed up to 50% of the wages (maximum of 1040 hours) to help offset the training investment. This is a great way for employers to train employees to meet their needs.

 

Customized Training

Designed to meet an employer’s skills through classroom-based training, not on the job. Customized Training incentives can offset employer-training costs up to 50%.

 

Work Opportunity Tax Credit (WOTC)

Provides expanded tax credits to businesses that hire eligible veterans. The WOTC is also available for certain tax-exempt organizations. The WOTC expired on 12/31/2013. However, EDD is still encouraging employers to submit applications. If/when reauthorized, applications will be processed in the order they are received.

 

The Vow to Hire Heroes Act of 2011

The “Returning Heroes Tax Credit” provides businesses that hire unemployed veterans with a maximum credit of $5,600 per veteran. The “Wounded Warriors Tax Credit” offers businesses that hire veterans with service-connected disabilities, a maximum credit of $9,600 per veteran.

 

The Governor’s Economic Development Initiative

This includes three incentives:

• New Employment Credit - Is available for business located in newly identified census tracts, as well as the former Enterprise and LAMBRA Zones.

• California Competes Tax Credit - is an income tax credit available to businesses that want to come to California, or stay and grow in California.

• Sales Tax Exemption - The Board of Equalization administers a partial exemption to businesses that purchase qualified property after July 1, 2014.

 

Small Business Health Care Tax Credit

Small businesses (50 or fewer employees) may be eligible for a federal tax credit (up to 35%) based on health insurance premiums paid for employees.

 

For additional information please contact the Boyle Heights WorkSource Center at (213) 629-5800