The American Recovery and Reinvestment Act includes a new tax credit for companies that hire disconnected young adults. Your company may now enjoy a substantial tax credit while at the same time accessing a new talent pool and providing a young adult with an on-ramp to the workforce.
The stimulus bill, which President Obama signed into law last year, added “Disconnected Youth” as a new category under the Work Opportunity Tax Credit (WOTC), amending Paragraph (1) section 51(d) of the Internal Revenue Code of 1986. The IRS has released guidance explaining the new category.
Companies can save up to $2400 for each qualifying employee, so this can add up to significant savings depending on how many qualified young adults are hired.
To help companies take advantage of the tax credit, Corporate Voices has developed a guide to the Disconnected Youth Tax Credit that provides an overview as well as links to resources and other information.