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alertBreaking News:

On January 3, 2013, the President signed into law the American Tax Payer Relief Act of 2012 (the Act), which authorizes an extension of the WOTC program. In summary, the Act:

  • Extends authorization for all veteran target groups (including those implemented under the VOW to Hire Heroes Act) to December 31, 2013.

  • Retroactively reauthorizes all WOTC non-veteran target groups, from December 31, 2011 to December 31, 2013.

  • Retroactively reauthorizes the Empowerment Zones, which determines eligibility for the summer youth target group, from December 31, 2011 to December 31, 2013.

  •  Does NOT reauthorize the Recovery Act disconnected youth and Recovery Act unemployed veteran target groups.

The new forms have arrived: Form 8850, Form 8850 Instructions and Form 9061  These new forms need to be used for any Work Opportunity Tax Credit application filed after October 29, 2012.

For more information, please visit the USDOL Employment and Training Administration Web Site

Effective November 22, 2011 President Obama signed into law The Vow to Hire Heroes Act of 2011 which extends prior WOTC categories: the Veterans receiving SNAP benefits, Veterans with a service connected disability  and Veterans with a service connected disability unemployed for at least 6 months for a tax credit up to $9,600 and created a new target group for Unemployed Veterans (similar to the Recovery Act of 2009) unemployed for at least 4 weeks for a tax credit of up to $2,400 or unemployed for at least 6 months for a tax credit up to $5,600.
 

Business Tax Credits

Tax credit programs are available which provide incentives to businesses hiring new employees. These tax credits may be used to boost your bottom line while providing jobs for Connecticut workers:

What’s New?

Effective January 3, 2013   The President signed into law the American Tax Payer Relief Act of 2012 (the Act), which authorizes an extension of the WOTC program.
Effective January 1, 2012   Eight of the nine target groups go into hiatus.
Effective November 22, 2011   Vow To Hire Heroes Act
Effective December 31, 2010   the American Recovery and Reinvestment Act goes into hiatus.
Effective January 1, 2009   The American Recovery and Reinvestment Act expands the WOTC Tax Credit program to include two new categories for businesses that hire “Unemployed Veterans" or “Disconnected Youth” aged 16 to 24.
Effective May 26, 2007   Businesses that hire disabled veterans, may qualify for a Federal tax credit of up to $4,800.
Effective May 26, 2007   The high-risk youth group has been renamed to “Designated Community Residents” and expanded to include individuals who are aged 18 to 39.
Effective January 1, 2007   The Food Stamp target group age requirement has been expanded to include individuals who are aged 18 to 39.
Effective January 1, 2007   The 21-day postmark requirement has been extended to 28 days.
Effective January 1, 2007   There is no longer an economic eligibility determination based on family income for the ex-felon target group.
Effective January 1, 2007   The Welfare to Work Tax Credit Program has been merged into the WOTC Program and a new WOTC target group has been created, “Long-Term Family Assistance Recipient (LTFAR).”  Businesses may qualify for a $9,000 tax credit over a two-year period.
 
Welfare-to-Work Tax Credit (WtW)   On or Before December 31, 2006, this tax credit enabled businesses to earn a Federal tax credit up to $8,500 over a two-year period for each new employee who has received Temporary Assistance to Needy Families (TANF). On or after January 1, 2007 this tax credit has been combined with the WOTC.
Manufacturing Apprenticeship Tax Credit   This tax credit is designed to encourage the development of skilled workers through apprentice training programs in order to counter the current and projected shortage of skilled craft workers in the Manufacturing Trades which exists in Connecticut.

Tax Credits For Individuals

Individuals may pay less in taxes and receive more money in their take home pay when using these tax credits:

Health Coverage Tax Credit (HCTC)   Individuals with qualifying health insurance coverage who are eligible to receive income support under the TAA program may be eligible to receive a tax credit for 65% of the monthly health insurance premiums they pay.
Earned Income Tax Credit (EITC)   Provides tax credits to low-income workers by increasing their Federal tax refunds.
Advance Earned Income Tax Credit (AEITC)   Provides tax credits to low-income workers by increasing their Federal tax refunds and/or their take-home pay.

1-860-263-6060

Tax Credit Home Page


200 Folly Brook Boulevard, Wethersfield, CT 06109 / Phone: 860-263-6000

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