Skip to main content

Tax credits supporting inclusive employers

Tax Credits for Inclusive Employers

The benefits of being an inclusive employer are many. It can give your business a different perspective on how to innovate and solve problems. A team that includes people with disabilities provides a wide breadth of experience to draw from. It creates an efficient and effective workforce that treats everyone as equals. The fact is: a diverse workforce just makes good business sense on many levels.

Work Opportunity Tax Credit

On top of the natural benefits of hiring persons with disabilities, there are programs in place designed specifically to provide additional financial support to inclusive employers.

One example is the Work Opportunity Tax Credit. The IRS states that this is intended to provide employers with a credit for hiring qualified individuals. These individuals must belong to certain groups (as defined by the IRS) who have faced consistent barriers to finding employment.

The amount of the credit depends on several factors, depending on the employee hired and the length of their employment.

Finding information on the Work Opportunity Tax Credit

The Internal Revenue Service provides detailed information on their official website regarding tax benefits for businesses who have employees with disabilities, in addition to a dedicated resource specifically for the Work Opportunity credit.

Eligible employers must obtain certification that the employee meets the required criteria before the credit can be claimed, and Form 8850 must be filed.

An opportunity for employers to support diversity

If your company currently employs persons with disabilities or is looking for applicants to bring strength to your workforce, here’s some helpful links to get you started: