Congress, President Reauthorize Tax Credits To Encourage Jobs For Alaskans

Nov. 26, 2004
No. 05-36

JUNEAU -- Two federally funded tax credit programs intended to encourage job opportunities for the unemployed have been renewed through December 31, 2005 with congressional passage and a signature by President George W. Bush authorizing the Working Families Tax Relief Act of 2004.

The reauthorization covers the Work Opportunity Tax Credit (WOTC) and Welfare-to Work Tax Credit (WtW) programs administered by the Employment Security Division in the Alaska Department of Labor and Workforce Development.

“These incentives are important because they provide employers with a tax credit to hire Alaskans who have had to turn to welfare and other public assistance programs,” Labor Commissioner Greg O’Claray said.

“Governor Frank Murkowski has given his total support to our priority to put Alaskans to work,” O’Claray added. “These programs provide direct assistance and equally important, they encourage opportunities for Alaskans to gain valuable on-the-job experience.”

The tax credit programs are intended to assist Alaskans qualified in several categories: persons on public assistance; food stamp recipients age 18-24; veterans in families that receive food stamps; ex-felons in low-income families; vocational rehabilitation referrals, and Supplemental Security Income (SSI) recipients.

Employment Security Division Director Tom Nelson said the reauthorized WOTC and WtW programs cover individuals who began work after December 31, 2003 for Alaska employers eligible for tax credit consideration.

Tax credits up to $2,400 per eligible worker are available under the WOTC program. WtW tax credits are available up to $3,500 for the first year and up to $5,000 for the second year.

A worker must be employed for a minimum of 120 hours before an employer can earn a WOTC tax credit. Minimum worker employment is 400 hours for an employer to claim a WtW tax credit.

Nelson said that during the congressional delay of program reauthorization, employers continued to file certification requests for workers hired after the program had expired. He said new employee filings must be postmarked no later than 21 days after the first-day-of-work.

The Employment Security Division received applications for 1,609 employees during 2003 and certified 678 of those as eligible for WOTC, WtW or both.

The department received more than 1,700 applications from employers for the two programs since January 1, 2004.

Nelson said the division began processing and mailing certifications and determinations immediately following reauthorization of the program.

Tax credit information is available online at jobs.alaska.gov/wotc.htm ; at the 24 Alaska Job Center Network locations statewide; at Internal Revenue Service offices; by calling WOTC Coordinator Allan MacKinnon at 907.465.5955 or by mail: WOTC Coordinator, Alaska Department of Labor & Workforce Development, P.O. Box 115509, Juneau, AK 99811-5509.

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News Media Contacts:
Director Tom Nelson, DOLWD Employment Security Division, 907.465.2712 or
Joe Holbert, Special Assistant/Communications, 907-465-5673

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