Tax Credits

The following tax credits can help alleviate your business tax burden. Each can be used in conjunction with the training programs listed on this web site.

Work Opportunity Tax Credit (WOTC) - This tax credit can be up to $2,400 for each new hire from several targeted groups including qualified welfare recipients, veterans, ex-felons, food stamp recipients, individuals receiving Supplemental Security Income (SSI) benefits, and certain disabled individuals. Call 1-800-432-5268 for more information.

Renewal Community Tax Credit - (City of Chattanooga only) Under a federal Renewal Community initiative, business located in the Downtown, Southside and Alton Park areas may be eligible to receive up to $1,500 annual tax credit for each worker they hire from the downtown area. Businesses may also qualify for additional tax credits including accelerated depreciation on qualified building projects to relief on capital gains taxes. Eligible areas include portions of the following zip codes: 37402, 37403, 37408, 37409, and 37410. Visit http://www.renewal-community.com or call the City of Chattanooga at 311.

Welfare-to-Work Tax Credit - This tax credit for hiring long-term welfare recipients can be up to $8,500 per new hire. Generally, long-term welfare recipients are those who have been receiving welfare benefits for at least 18 months. Call 1-800-432-5268 for more information.

Small Business Tax Credit for Disabled Access – Small businesses (those with 30 or fewer full-time employees or those with annual sales under $1 million) may take an annual tax credit for making their businesses accessible to persons with disabilities. The credit is 50% of expenditures over $250, but not to exceed $10,250, for a maximum benefit of $5,000. The tax credit does not apply to the costs of new construction, and a building being modified must have been placed in service before November 6, 1990. More information is available at http://www.usdoj.gov/crt/ada/taxpack.htm.

Additional resources on work and disability issues can be found at http://www.worksupport.com.