NEW! On Nov. 21, 2011, President Obama signed the Vow to Hire Heroes Act of 2011 which expands the definition of the veteran target groups. The changes and new provisions in this Act apply to individuals who begin to work on or after Nov. 22, 2011, and before Jan. 1, 2013.
New hires must be certified under one or more of the following target groups to receive a federal tax credit. The letters A - J are the award codes belonging to the target group.
A. IV-A Temporary Assistance to Needy Families (TANF) Recipient - One who is receiving, or has recently received, TANF benefits for any 9 months during the 18-month period ending on the hire date.
B. Veteran - A member of a family who received food stamp benefits for at least a 3-month period within the last 15 months ending on the hire date, or a veteran entitled to compensation for a service-connected disability hired within one (1) year of discharge from active duty, or who has been unemployed for a period totaling at least 6 months of the year ending on the hire date.
C. Ex-Felon - Individual with a felony conviction and hired within one (1) year from the date of conviction or release from prison. Note: The Department of Rehabilitation and Correction manages the Federal Bonding Program.
For further information or to initiate the bonding process, please contact the DRC Ohio Central School System by phone at (740) 845-3240 or by email at DRC.OCSS2Serve@odrc.state.oh.us.
D. Designated Community Residents (DCRs) - An 18 to 39 year old residing in an Empowerment Zone (EZ),
Enterprise Communities (EC) or Renewal Communities (RC), or a Rural Renewal County (RRC). Rural Renewal counties are Crawford, Monroe, Paulding, Seneca and VanWert Counties. Addresses can be verified at Empowerment Zone/Enterprise Community/Renewal Community. You must also provide:
1) Proof of Age - a copy of the employee's driver's license, birth certificate or an IRS W-4 if age is on the W-4, and
2) Proof of Address - a copy of the IRS W-4, utility bill or similar mailing showing an address.
Note: The address on the IRS 8850 and the proof of address documentation must match.
E. Vocational Rehabilitation Referral - Applicant has a physical or mental disability resulting in a substantial handicap to employment and referred to the employer upon completion of, or while receiving, rehabilitative services through an Individualized Written Plan of Employment (IWPE) under a state plan for vocational rehabilitation services;
or is a "ticket holder" under the Ticket to Work Program with an Individual Work Plan (IWP) developed and implemented by an Employment Network (EN) pursuant to subsection (g) of section 1148 of the SSA with respect to which the requirements of such subsection are met.
F. Summer Youth - Applicant must work at least 90 days between May 1 and September 15 and be 16 but not yet 18 years old on the hire date and live in EZ, EC or RC resident. Refer to Award Code D for Designated Community Residents (DCRs) section above for requirements on proof of age and address.
G. Food Stamp Recipient - A member of a family who is 18 to 39 years old on the hire date and is receiving, or recently received, food stamps for the 6-month period ending on the hire date; or receiving such assistance for at least 3 months of the 5-month period ending on the hire date (in the case of an able-bodied adult without dependents who ceases to be eligible for food stamps under the work requirements of Section 6(o) of the Food Stamp Act of 1977).
H. Supplemental Security Income (SSI) Recipient - An individual receiving SSI benefits for any month within the
60-day period ending on the hire date.
I. Long-Term IV-A Assistance Recipient (TANF) - A member of a family who received TANF or similar benefits for at least 18 consecutive months ending on the hire date; or has received family assistance for a total of at least 18 months, whether or not consecutive, beginning after Aug. 5, 1997, and has a hire date that is not more than two (2) years after the end of the earliest 18-month period; or whose TANF eligibility expired under a federal or state law after Aug. 5, 1997, and who was hired within two years after their eligibility expired.
J. Unemployed Veteran - An individual who has served on active duty for more than 180 days and been discharged for a service-connected disability during the 5-year period ending on the hiring date and has received unemployment compensation for not less than four (4) weeks during the one (1) year period ending on the hiring date.
Ineligible for WOTC tax credits:
- Employers not covered by the Federal Unemployment Tax Act (FUTA)
- Federally subsidized on-the-job training positions
- Relatives of the employer
- Non-qualifying rehires
- Not a member of a target group
Updated: 05/03/2012