If you hired an unemployed veteran or a “disconnected youth” for your business after Dec. 31, 2008, and by Sept. 17, a little-know provision of the federal stimulus plan provides for a Work Opportunity Tax Credit for those employees. The IRS has extended a provision of the stimulus measure by two months, giving employers who qualify until Oct. 17 to certify that they have hired members of those targeted groups.
A disconnected youth is someone ages 16 to 24 who does not have a college degree or a GED certificate, or has one of those but was awarded it no less than six months before his hiring date. The new IRS policy clarifies some terms and extends the hiring timeframe and the deadline to apply for the credit, which varies depending on the category of employee, from $2,400 for a youth hire to $4,800 for a veteran hire, according to Paul Cuevas, president of Tax Credit Professionals in Baton Rouge. “They came up with the legislation in, what was it, February?” he says. “And they just determined the actual definition. That’s very unusual.” Cuevas has clients going through their employee applications to see whether they can get the tax credits. Employees then sign a statement that the employers submit for verification.—Todd R. Brown
