Who can apply for a partial or full tax credit
Private-sector employers or tax-exempt organizations can request a tax credit for hiring workers in the categories listed on this page. Examples of tax-exempt organizations are 501(c) or 501(a) nonprofits.
The amount of the tax credit will vary.
- To receive a partial tax credit: Eligible workers must work a total of at least 120 hours, up to 399 hours.
- To receive a full tax credit: Eligible workers must work a total of at least 400 hours.
Categories of eligible workers
Veterans
Tax credit up to $9,600 per worker for the first year employed. Tax-exempt organizations may apply for credit only against the employer part of the Social Security tax liability.
Eligible veterans meet one or more of these criteria on their hire date:
- Received Supplemental Nutrition Assistance Program benefits (SNAP) for 3 consecutive months within the last 15 months.
- Are entitled to compensation for a service-connected disability and were discharged from the military within 1 year before their hire date.
- Are entitled to compensation for a service-connected disability and were unemployed for at least 6 months during the year before their hire date.
- Were unemployed for at least 4 weeks but less than 6 months during the year before their hire date.
- Were unemployed for at least 6 months within 1 year before their hire date.
Long-term unemployed people
Tax credit up to $2,400 per worker for the first year employed. Eligible people fit both of these descriptions:
- Have been unemployed for at least 6 months.
- Have received 1 week of unemployment benefits (can include the waiting week) or at least 27 consecutive weeks of unemployment benefits before their hire date.
People receiving public assistance
Tax credit up to $9,000 per worker for their first 2 years employed. Eligible people fit one or more of these descriptions at their hire date:
- A person or a qualifying family member who received Temporary Assistance to Needy Families (TANF) cash benefits for at least 9 of the last 18 months.
- A person or a qualifying family member who received TANF for the previous 18 consecutive months. Or they received TANF for any 18-month period starting after August 5, 1997, and ending within 2 years of their hire date.
- A person or a qualifying family member, age 18 to 39, who received Supplemental Nutrition Assistance Program (SNAP) benefits for 6 consecutive months. One of those months must include their hire date.
- A person who received Supplemental Security Income (SSI) for any month in the 60 days before their hire date.
People who were convicted of a felony
Tax credit up to $2,400 per worker for the first year employed. Eligible people fit both of these descriptions:
- Were convicted of a felony.
- Were hired within 1 year after their date of conviction, work release, or release from prison or jail.
People with disabilities
Tax credit up to $2,400 per worker for the first year employed. Eligible people fit both of these descriptions:
- Participate in state or federal vocational rehabilitation programs.
- Have had an "individual written plan" for employment in the 2 years before their hire date.
Workers not eligible
You cannot receive a tax credit for hiring:
- Your relatives.
- Former employees.
- Undocumented workers.