Skip to content Back to Top

Employer Tax Credit Programs Extended Through 2003

Mar. 12, 2002
No. 02-19

Commissioner of Labor and Workforce Development, Ed Flanagan, announced today that Congress has extended two federal tax saving initiatives for employers, the Work Opportunity Tax Credit and the Welfare-to-Work Tax Credit programs through December 31, 2003. "Both provide employer tax credits as incentives to hire from target groups, and both are important parts of the diverse strategies designed to help Alaska workers gain on-the-job experience," said Flanagan.

Signed into law by President Bush on March 9, 2002 as part of The Job Creation and Worker Assistance Act of 2002, the Work Opportunity Tax Credit program continues without changes through December 31, 2003 and becomes retroactive to its expiration date of December 31, 2001. The new act also extends the Welfare-to-Work Tax Credit program though December 31, 2003.

Tax credits of up to $2,400 per eligible worker will continue to be available under the Work Opportunity Tax Credit program, and as much as $3,500 for the first year and up to $5,000 for the second year per eligible worker under the Welfare-to-Work Tax Credit program.

In Alaska, the program target groups are qualified TANF recipients, qualified food stamp recipients (age 18-24), qualified veterans who are a member of a family that receives food stamps, qualified ex-felons who are a member of a low-income family, vocational rehabilitation referrals, and Supplemental Security Income (SSI) recipients.

Both tax credit programs are administered through the Alaska Department of Labor's Employment Security Division. Employers can find detailed information about these programs and appropriate forms here. Forms are also available at any Alaska Job Center or from the Internal Revenue Service.

For more information about these programs or their requirements, contact Carol Anderson, (907) 465-5063, or write to the WOTC Coordinator, Alaska Department of Labor, P.O. Box 115509, Juneau, AK 99811-5509.

###