Tennessee employers took advantage of federal tax credits last year to hire 85,448 workers who were long-term unemployed, first-time workers, or military veterans out of work.
The Tennessee Department of Labor and Workforce Development said Tuesday the state awarded a record $225.4 million in federal tax credits in 206 to employers who hired workers from targeted groups which have consistently faced employment barriers.
Tennessee Labor Commissioner Burns Phillips said the number of employers using the Work Opportunity Tax Credits (WOTC) rose last year after his department transitioned to a more user-friendly online application. Not only did this expedite the process, it also eliminated the use of more than 700,000 pieces of paper each year, Phillips said.
“This tax credit is a benefit many business owners are unaware of and may forsake thousands of dollars in tax bill savings each year,” he said. “This program is a win-win situation for Tennessee employers and workers. It puts folks having a difficult time finding work into new jobs and reduces the business owners’ tax liability.”
The tax credit, which was added by Congress in the mid-1990s as part of then President Clinton’s welfare reforms, offers businesses a tax benefit for hiring workers who are likely to have trouble finding jobs. Veterans were added to the eligible workers list in 2011.