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This document outlines the eligibility groups for the Work Opportunity Tax Credit (WOTC) and Welfare-to-Work credits. Qualified groups include recipients of TANF, veterans receiving food stamps, economically disadvantaged ex-felons, high-risk youth aged 18-24, vocational rehabilitation referrals, summer youth aged 16-17, food stamp recipients aged 18-24, and SSI recipients. The new enhancements effective from May 25, 2007, expand the age range for eligibility and introduce new categories like “Disabled Veteran” and “Rural Renewal County.” Credits can be as high as $4,800 for eligible employees.
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Original Groups A-I • Group A: Qualified recipients of TANF • Group B: Qualified veterans who receive Food Stamps • Group C: Qualified economically disadvantaged ex-felons • Group D: High risk youth ages 18-24 who reside in RC/EC/EmpZ • Group E: Vocational Rehabilitation referrals • Group F: Qualified summer youth ages 16-17 who reside in RC/EC/EmpZ • Group G: Qualified Food Stamp recipients ages 18-24 • Group H: Qualified recipients of SSI • Group I: Long-term recipients of TANF/AFDC
WOTC & Welfare-to-Work • Groups A-I • All groups from A-H are for WOTC credits • Only group I is for Welfare-to-Work credits • NOTE: NOTE: an eligible employee has to work for at least 120 hours in a year in order to claim credits. • New Enhancements are Effective on 5/25/07: • Expands age range from 18-24 to 18-39 • Adds a new zone type called “Rural Renewal County” • Creates new “Disabled Veteran” category. Credits up to $4,800.