|Wednesday, January 31, 2001 |
Tommy G. Thompson
News Media Contact
Tony Hozeny (608) 267-9661
33,000 Wisconsin Residents Find Help with Tax Credit HelpTax credits targeted at those with limited work experience
MADISON – Since July of 1999, employers in the state of Wisconsin hired and retained more than 33,000 job seekers while at the same time saving $98 million as a result of federal and state tax credits. The tax credits benefit both employees and employers -- those employees who typically experiencing difficulty in obtaining employment and employers seeking candidates to fill job openings during the labor shortage.
"These tax credits go a long way toward creating and retaining a high-quality workforce for Wisconsin employers while at the same time employees benefit from a good paying job," said Department of Workforce Development Secretary Jennifer Reinert.
The DWD and Department of Commerce co-jointly administer two federal and two Wisconsin tax credits which resulted in thousands of people obtaining jobs. "Wisconsin is committed to fostering the development of jobs and investment in areas where they are most needed," said Department of Commerce Secretary Brenda J. Blanchard. "The tax credits available through the Enterprise Development Zone and Community Development Zone Programs encourage businesses to start up, locate and expand in distressed areas and create jobs for people who have faced barriers to employment, such as Welfare to Work (W-2) recipients."
The DWD certifies employers for each employee who qualifies for federal and/or state tax credits. Employers file the certifications with federal and Wisconsin income/franchise tax returns. The Federal programs, the Work Opportunity Tax Credits (WOTC) and Welfare to Work Credit (WtW) are based on employee retention and all for-profit businesses are eligible.
Eligible businesses may utilize one Wisconsin tax credit program and one federal tax credit program. The tax credits are based on a quality formula and the number of new jobs created. Wisconsin employers apply to and must be certified by the Department of Commerce based upon company growth and jobs projected during a specified project period. The two Wisconsin tax credit programs created more than 3,000 jobs and a potential $10 million per year in credit savings.
Secretary Blanchard noted that over the biennium the two programs certified projects representing 6,000 jobs at an annual payroll of $40 million and $200 million in new business investment. The Wisconsin program is funded each year by the state Budget Act.
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