Business Tax credits for Disability Access and Hiring People with disabilities / veterans / specific target groups in the Work Opportunity Tax Credit (WOTC)

1. TAX INCENTIVES
Presented by the
Center for Accessible Living

2. Disability in Context
People with disabilities lead similar lives to
those people without disabilities.
More than 58 Million people (1 in 5) in the
US have a physical, mental or emotional
disability. They work, play and have
families like everyone else.
20 million families have at least one (1)
member with a disability.
Source: www.census.gov

3. Disability in Context
American Sign language is the third most
used language in the US.

4. Disability in Context
Autism is the fastest-growing developmental
disability in the US.
Currently with 1 in 150* births.
Currently with 1 in 110* births.
Currently with 1 in 88* births.

5. Disability in Context
Generalizations
Disability can be inherited or acquired as a
result of accident, injury or age.
Disability can happen at any time, to anyone!
As diverse as the community we live in –
every
culture, race, religion, ethnicity, gender, sex
ual orientation, socioeconomic class, etc.

6. Disability In Context
Employment
rate for
working age
people with
disabilities
was 27% in
January
2013.
Employment rates from US Department of Labor

7. Disability in Context
Compared to a 69.7% employment rate
for non-disabled.
The gap between the employment rate
of persons of 16-64 years of age with
and without disabilities was 42.8%, not
seasonally adjusted.
Employment rates from US Department of Labor

8. Disability in Context
People with
disabilities
continue to
represents a
largely
untapped and
diverse pool of
qualified job
candidates

9. Disability in Context
In a recent national survey:
92% of consumers surveyed felt
more favorable toward companies
that hire individuals with disabilities.
87% said they would prefer to give
their business to such companies.
Consumer Percentages from http://www.csde.umb.edu/research/survey.shtml

10. Disability in Context
58 million people strong, people with
disabilities boasts $1 trillion in
discretionary spending power.
Income according to the U.S. Department of Labor: www.dol.gov

12. FALSE! 50.5% of accommodations
cost nothing
The average accommodation is reported
as being a one time cost of $500 or less.
Figures from the Job Accommodation Network:
http://www.jan.wvu.edu/media/LowCostHighImpact.pdf

13. Myths & Facts
People with disabilities are generally out
sick more often.
People with disabilities are more likely
to have accidents than other
employees.
An employer’s workers’ compensation
rates rise when they hire workers with
disabilities.
http://oshkoshwdc.com/data/Studies_Related_to_the_E
mployment_of_Individuals_with_Disabilities.pdf

14. Myths & Facts
Employees with disabilities have shown
to have equal job performance ratings to
nondisabled.
Employees with disabilities add valuable
perspectives and diverse backgrounds
to companies and workgroups.
http://oshkoshwdc.com/data/Studies_Related_to_the_E
mployment_of_Individuals_with_Disabilities.pdf

15. Employment Credit
 Work Opportunity Tax Credit
 Kentucky Specific Tax Credits
Access Credits and Deductions
 Disabled Access Credit
 Barrier Removal Tax Deduction

16. Work Opportunity Tax Credit
(WOTC)

17. Provides a tax credit for employers who
hire targeted low-income groups
Has been extended to cover individuals
who begin to work for an employer
before December 31, 2013
Includes former Welfare to Work
(WTW) regualtions

18. Who is Eligible:
• Short-term &Long-term Family
Assistance Recipient (TANF)
• Qualified SNAP (Food Stamp) Recipient
• Qualified Summer Youth Employee*
• Designated Community Residents*
*Residence in a Federal Empowerment Zone
(EZ), Enterprise Community (EC), Renewal
Community (RC) or Rural Renewal County
(RRC) is required

19. Who is Eligible:
• Vocational Rehabilitation Referral
• Qualified Ex-Felon
• Supplemental Security Income Recipient
• Qualified Veterans*
*Amounts and other qualifications are different
for Veteran Populations.

20. Long-term Temporary Assistance for Needy
Families (TANF) Recipient
A member of a family that meets one of the following circumstances:
Received TANF benefits for at least 18 consecutive months ending on the
hiring date.
Received TANF benefits for at least 18 consecutive or non-consecutive
months after August 5, 1997, and has a hiring date that is not more than 2
years after the end of the earliest 18-month period after August 5, 1997.
Stopped being eligible for TANF payments during the past 2 years because a
Federal or state law limited the maximum time those payments could be
made.

21. Short-term (TANF) Recipient
A member of a family that received TANF benefits for any 9-month period
during the 18-month period ending on the hiring date.
SNAP (food stamp) Recipient
An 18-39 year old member of a family that received Supplemental Nutrition
Assistance Program (SNAP) benefits for the 6 months ending of the
hiring date or received SNAP benefits for at least 3 of the 5 months
ending on the hiring date.

22. Designated Community Resident
An 18-39 year old who lives within one of the federally designated Rural
Renewal Counties or Empowerment Zones.
Vocational Rehabilitation Referral
An individual with a disability who completed or is completing rehabilitative
services from a state-certified agency, an Employment Network under
the Ticket to Work program, or the U.S. Department of Veteran Affairs.

23. Ex-Felons
An individual who has been convicted of a felony and has a hiring date that is
not more than 1 year after the conviction or release from prison.
Supplemental Security Income (SSI)
recipient
A recipient of SSI benefits for any month ending during the past 60-day
period ending on the hire date.
Summer Youth Employee
A 16 or 17 year-old youth who works for the employer between May 1 and
September 15 and lives in an Empowerment Zone.

24. A Veteran who is:
A member of a family that received SNAP benefits (food stamps) for at least a
3-month period during the 15-month period ending on the hiring date.
Entitled to compensation for a service-connected disability:
• Hired within 1 year of discharge or release from active duty
• Unemployed at least 6 months in the year ending on the hiring date
Unemployed:
• At least 4 weeks
• At least 6 months

25. Please note that to be considered a veteran
eligible for WOTC, an individual must meet
these two standards:
Have served on active duty (not including training) in the U.S. Armed
Forces for more than 180 days or have been discharged or
released from active duty for a service-connected disability
Not have a period of active duty (not including training) of more than
90 days that ended during the 60-day period ending on the hiring
date

26. How are credits calculated?
25% or 40% of a new employee's first-year
wages, up to the maximum for the target
group to which the employee belongs.
Employers will earn 25% if the employee
works at least 120 hours and 40% if the
employee works at least 400 hours.

27. What is the amount?
Generally, an employer may take a tax
credit of up to 40 percent of the first
$6,000 (up to $2,400) in wages paid
during the first 12 months for each
eligible new hire.

28. Other amounts (Long-Term TANF)
Employers can earn a maximum $9000
tax credit per eligible hire for hiring
individuals certified as Long-term
Family Assistance Recipients (2 years
of credits).

29. Other amounts (Long-Term TANF)
If the individual works at least 120 hours in
the first year, the employer may claim a
tax credit equal to 40% of first year
wages, up to the first $10,000.
If the individual works at least 400 hours in
the second year, the employer may claim
a tax credit equal to 50% of second year
wages, up to the first $10,000.

30. Other amounts (Disabled Veterans)
For Veterans with a service-connected
disability hired one year from leaving
service with the same qualified wages
cap ($12,000) and maximum tax credit
($4,800).

31. Other amounts (Disabled Veterans)
For Veterans with a service-connected
disability unemployed for at least 6
months with the qualified wages cap
($24,000) and the maximum tax credit
($9,600).

32. Other amounts (Veterans)
For Veterans unemployed for at least 6
months with the qualified wages cap
($14,000) and the maximum tax credit
($5,600).

33. HOW CAN EMPLOYERS PARTICIPATE IN
THE WOTC?
To receive certification that a new
employee qualifies the employer for this
tax credit, the employer must:

34. Complete page one IRS Form 8850, Pre-
Screening Notice and Certification Request
for the Work Opportunity Credit, by the day
the job offer is made.
Complete page two IRS Form 8850, Pre-
Screening Notice and Certification Request
for the Work Opportunity Credit, after the
individual is hired.

35. • Complete either the one page ETA Form
9061, Individual Characteristics Form
• or ETA Form 9062 (If the new employee has
already been conditionally certified as belonging
to a WOTC target group, complete the bottom
part of ETA Form 9062 (and sign and date
it), that he or she has been given by a State
Employment Agency or participating
agency, e.g., Vocational Rehabilitation.)

36. (ETA Form 9061 or Form 9062) Continued:
If the new employee has not been
conditionally certified, the employer and/or
the new employee must fill out and
complete, sign and date ETA Form 9061

37. Mail the signed IRS and ETA forms to the
employer's State Workforce Agency.
**MAKE SURE TO MAIL FORMS
IN WITHIN 28 DAYS OF FIRST
DAY ON JOB.**

38. All required forms and related documents
must be mailed to the following address:
WOTC Kentucky Office of Employment &
Training
275 East Main Street, 2W-A
Frankfort, Kentucky 40621.
Questions may be directed to program staff at
502/782-3069.

39. To get IRS Form 8850, the Work
Opportunity Tax Credit Pre-Screening
Notice and Certification
Request, instructions, and ETA Forms
9061 & 9062 visit:
http://www.doleta.gov/business/incentiv
es/opptax/wotcEmployers.cfm

40. More information:
Visit http://www.oet.ky.gov/ and click
“employer services” then “tax credits”
Or visit
http://www.doleta.gov/business/Incentiv
es/opptax/

41. May be used once per employee

42. The Unemployment Tax Credit (UTC)

43. The Unemployment Tax Credit (UTC)
program provides employers a credit of
$100 per eligible hire against Kentucky
income taxes owed for hiring residents who
have been unemployed for 60 days and
remain on the payroll for at least 180 days.

44. For more information, contact WOTC
Unit at 502-782-3069.
Or visit
http://www.oet.ky.gov/employer/UTC_A
pplication0507.pdf

45. Access Credits and Deductions
 Disabled Access Credit
 Barrier Removal Tax Deduction

46. Barrier Removal Tax Deduction

47. Architectural/Transportation
Tax Deduction
Barrier Removal Tax Deduction [Section
190, IRS Code]
• For ALL businesses
• Up to $15,000 for structural
renovations or transportation
improvements, not new construction
• Must comply with ADAAG
• Subtract from total income before taxes
• No extra IRS form

48. • Getting in !
• Access to goods & services
For: customers, clients, patrons
• Restrooms
• Other amenities

49. • Signage
• Parking
• Path of travel
• Entrances
• Reach
• Restrooms

50. • Public telephones/ water fountains
• Elevators
• Meeting rooms
• Emergency procedures
• Web sites
• Specific purpose (hotel rooms, etc)

51. • Providing goods curbside
• Providing home delivery
• Retrieving merchandise from
inaccessible shelves or racks
• Relocating activities to accessible
locations

52. Disabled Access Credit

53. • Only for small businesses
 Less than $1 million in revenues
 30 or fewer employees
• 50% of “eligible access expenditures”
up to $10,250 after first $250
• Credit subtracted from tax liability
• Expenses must be incurred to comply
with the requirements of the ADA.
•IRS Form 8826

54. • “Eligible access expenditures”
 Removal of structural barriers
 Purchase of adaptive equipment
(assistive listening devices, TTY)
 Services
(sign language
interpreter, readers)
Materials in alternate format
(audiotape, large print, Braille)

55. • May be used annually
• Credit and deduction can be
combined by small businesses
• May not carry over expenses from
one year to next
• But if amount of credit exceeds tax
owed, may carry forward unused
portion of credit to next year

56. KY OET Work Opportunity Tax Credit Website
http://www.oet.ky.gov/employer/tax_credit.htm
Federal Work Opportunity Tax Credit Website
http://www.doleta.gov/business/Incentives/opptax/
Federal ADA Tax Incentives
http://www.ada.gov/taxincent.htm Or
http://www.irs.gov/businesses

57. Vocational Rehabilitation Programs
Office of Employment and Training
Office for the Blind
Center for Accessible Living
Veteran & VA Programs (CWT)
Volunteer/Mentorship Programs
AND MORE…

58. Center for Accessible Living
www.calky.org
305 W Broadway, Suite 200
Louisville, KY 40202
(502) 589-6620 (v) • (502) 589-6690 (TDD)
* * * * *
1051 N. 16th Street, Suite C
Murray, KY 42071
(270) 753-7676 (v) • (270) 767-0549 (TDD)
* * * * *