subject: Wotc California And Other Business Tax Credits Pay Off This Tax Season [print this page] For corporations located in California, there are both state and federal tax credits available that can be applied to this year's tax return. A federal credit is WOTC California, which stands for Work Opportunity Tax Credit. This is a credit for which, although many corporations qualify for the incentive, nevertheless fail to use, simply because they are unaware of how WOTC California works and the eligibility requirements. In addition to WOTC California, there are other tax benefits available that include green tax incentives and California energy tax credits, all of which can significantly lower the amount of taxes your corporation will pay this tax season.
The California hiring tax credits known as WOTC California enable corporations to benefit on their taxes owed based on the employees they hire. When California companies hire people from designated groups of people that can typically have a harder time finding employment, such as qualifying disabled veterans and veterans who are food stamp recipients, others who receive benefits from the state including food stamps, temporary assistance for needy families or SSI, qualifying ex-felons, youth and summer youth hires who live in certain communities, as well as Pacific Islanders, Native Americans and those who have been laid off, they may then be eligible to receive $2,400 to $4,800 per qualifying employee in WOTC California federal tax credits. These California hiring tax credits can quickly add up, and especially when you consider that there are additional state of California hiring tax credits as well. If your corporation is located in one of California's forty-two enterprise zones and you hire individuals from the federally designated groups, you may also receive up to $13,000 per qualified employee annually. If you realize that you could have taken this credit based on your employees in recent years past, you may still be able to turn in an amended tax form to receive the credits now, and may also be able to carry over the credits to next year if you have more than you need to cover your current year's taxes.
WOTC California is not the only tax credit for which your company may qualify, because California also offers many green tax incentives, including California energy tax credits. When you install energy-saving devices at your place of business, such as geo-thermal heat pumps or photovoltaic systems, you may then be eligible for these tax incentives. Companies that utilize hybrid or diesel vehicles may also qualify.
These are a sampling of the green tax incentives and hiring credits that are available to California corporations. To learn more, contact a certified public accountant with experience in corporate and eco tax planning and tax preparation.
