Tax Credits

There are many federal tax credit programs for employers who hire and retain individuals belonging to specific groups. Follow the links below for more information.

Work Opportunity Tax Credit Program – The Work Opportunity Tax Credit (WOTC) is a federal tax credit that encourages employers to hire eight targeted groups of job seekers my reducing employers' federal income tax liability.

Welfare-to-Work Tax Credit –The Welfare-to-Work Tax Credit is a federal income tax credit that encourages employers to hire long-term welfare recipients. This tax incentive can provide up to $8,500 to the employer.

Worker Retraining Credit – This tax credit is design to encourage employers to upgrade the skills of their workforce. A tax credit can be claimed for training costs associated with providing retraining to eligible workers.

Employers of Disabled Individuals Credit – Employers may receive a tax credit if they hire an employee with disabilities. The employee must have completed or is completing rehabilitative services provided by the Virginia Department of Rehabilitative Services, the Virginia Department for the Blind and Visually Impaired or the United States Department of Veteran Affairs.

Neighborhood Assistance Program (NAP) – A business contributing to an approved Neighborhood Assistance Program (NAP) organization may receive a state tax credit equal to 45 percent of their contribution. Eligible business contributions include cash, stock, goods, real estate, rent/lease of nonprofit's facility, and limited health care, professional, and contracting services.