Potential tax incentives include:
Work Opportunity Tax Credit (WOTC)
The
Work Opportunity Tax Credit (WOTC) is a federal tax credit available to business when they hire job seekers with disabilities.
It is important for the business to apply and obtain a certification as soon as they are hired to verify the new hire is a person with a disability.
Once the required certification is secured, taxable employers claim the WOTC as a general business credit against their income taxes, and tax-exempt employers claim the WOTC against their payroll taxes.
Maryland Disability Employment Tax Credit (MDETC)
The Maryland Disability Employment Tax Credit (MDETC) is a Maryland State tax credit that allows businesses to claim credit for hiring persons with disabilities.
The tax credit is targeted to enhance employment opportunities for persons with disabilities as defined by the Americans with Disabilities Act (ADA). Individuals with disabilities who have been certified by DORS.
MDETC Form
- Individuals with disabilities seeking employment may present a signed MDETC form to the potential employer.
- Upon hiring a person presenting a form the employer will complete the employer's portion of the form.
- If the individual is qualified for the tax credit, a Certificate of Eligibility for the MDETC will be returned to the employer.
- The employer must retain the Certificate to document and justify including the tax credit on its tax return.
- Presentation of a form does not necessary mean that an individual meets the qualifications for a particular job.
