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TAX INCENTIVES FOR TEXAS EMPLOYERS
Tax Savings for Texas Employers
 
Franchise Tax Credits for Child-Care Dependent Care Assistance Transportation (Commuting) Benefits
The legislature created two franchise tax credits related to day care and after-school-care programs. Eligible corporations may take advantage of these credits for qualifying expenditures made in Texas on or after January 1, 2000. These credits are administered by the Texas Comptrollers of Public Accounts, which may be contacted at 1-800-252-1381. An employer may earn a fringe benefit for providing dependent care services either paid (directly or indirectly), or provided to an employee under a dependent care assistance program that covers only your employees. For more information on the dependent care assistance fringe benefits review IRS Publication 15-B or contact the IRS at 1-800-829-1040. This fringe benefit applies to the following: 1) A ride in a commuter highway vehicle between the employee's home and workplace. 2) A transit pass. 3) Qualified parking. The fringe benefit applies whether you provide one or a combination of these benefits to your employees. The IRS administers the qualified transportation benefits and can be reached at 1-800-829-1040. Details on the benefits are covered in IRS Publication 15-B.
Social Security Administration's 'Ticket to Work' Program Small Business Tax Credit: Disabled Access Credit Architectural Transportation Tax Deduction: Barrier Removal
[For recipients fo Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI)]. The program is designated for SSA beneficiaries with a disability who want to work. They may choose vocational, employment, or other support services from SSA approved providers. Eligible ticket holder under the 'Ticket to Work' Program may qualify for the WOTC program. WOTC certification requests for 'Ticket holders' are processed under either the Vocational Rehabilitation Referral or Supplemental Security Income (SSI) recipient target groups. For more information visit Social Security Online or contact the WOTC unit at 1-800-695-6879. Small Business may take an annual tax credit for making their businesses accessible to persons with disabilities and for accomodating special needs of employees and customers with disabilities. (Maximum tax credit-$5,000 per year) For more information visit: www.dol.gov Businesses may take an annual deduction for expenses incurred to remove physical, structural, and transportation barriers for persons with disabilities. (Maximum tax deduction = $15,000 per year) For more information contact the Department of Labor at 1-866-4-USA-DOL.
Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit is a federal tax credit that reduces the federal tax liability of private-for-profit employers who hire from nine targeted groups. Qualified applicants who began work before September 1, 2011, can earn Texas employers up to $2400 if they are certified for any of the first 8 of the 9 targeted groups. WOTC Unit 1-800-695-6879
 
Applicant Target Groups Qualifications Documentation
Qualified TANF Recipients The applicant received TANF benefits for any nine of the last 18 months WOTC staff will verify eligibility
Qualified Veterans




Qualified Disabled Veterans Subgroup		 The applicant is a veteran who served at least 180 days of active duty, has not been on active duty during the 90 days after the hire date and has received food stamps at least three consecutive months within the last 15 months.

Applicant has a service connected disability of at least 10% incurred after September 10, 2001 and has a hiring date no more than 1 year after being discharged or released from active duty, or has at least 6 months of unemployment during the 1 year period ending on the hiring date.		 Military Discharge Papers (DD214), food stamps will be verified by WOTC staff.


Military Discharge Papers (DD214), and documentation verifying service connected disability status.
Qualified Ex-felons The applicant has been convicted of a felony or released from prison for a felony in the past year. Documentation that shows felony conviction and/or felony release dates. These may be obtained from correctional institutions records, court records, etc.
Qualified Designated Community Residents living within an empowerment zone, renewal community, or Rural Renewal Community The applicant is between ages 18 and 39 on hiring date and lives within an empowerment zone, renewal community, or Rural Renewal Community (EZ/RC/RRC). Documentation of age and proof of residence are required. A copy of a birth certificate or driver's license may document age. A current utility bill, telephone bill or driver's license is necessary to prove address of residence.
Qualified Vocational Rehabilitation Referrals The applicant was referred by a rehabilitation agency, or an employment network approved by the State of Texas or the Department of Veterans Affairs. Documentation must show the applicant is, or has been receiving services and has an Individualized Written Rehabilitation Plan through a state rehabilitation agency or a Veterans Administration vocational.
Qualified Summer Youth The applicant performs services for the employer between May 1 and September 15, is 16 or 17 years old on hiring date, has not been employed by the same employer before the 90 days(summer period) between May 1 and September 15, and lives in the EZ/RC. Documentation of age and proof of residence are required. A birth certificate or driver's license copy may document age. A current utility bill, telephone bill or driver's license is necessary to prove address of residence.
Qualified Food Stamp Recipients The applicant is between 18 and 39 on hiring date, and is a member of a family that received food stamps for the last six months; or is and able-bodied adult without dependents who received food stamps at least three of the last five months and is no longer receiving food stamp benefits. Documentation of age and food stamp benefit history required. A copy of a birth certificate or driver's license is sufficient to determine age. WOTC staff will verify food stamps.
Qualified Supplemental Security Income Recipients The applicant must have received supplemental security income for any month during the 60 days prior to hiring date. Supplemental security income records are required for documentation. These records can be obtained through the Social Security Administration.
Qualified Long-Term Family Assistance Recipients A member of a family that received TANF benefits for at least 18 'Consecutive' months ending on the hiring date, or received any 18 months beginning Sept. '97 with the 18th month payment falling with in 2 years of hiring date, or whose eligibility expired under a Federal or State law within 2 years of hiring date. Benefits Record from Department of Assistive and Rehabilitative Services. Verified by WOTC staff.