What is the Federal Empowerment Zone (FEZ) Tax Credit?
The Federal Empowerment Zone (FEZ) tax credit provides financial incentives for for-profit employers who hire individuals residing and working within designated zones. Employers can claim a credit of 20% on annual wages up to $15,000 per employee, with a maximum credit of $3,000 per employee each year.
What is the Work Opportunity Tax Credit (WOTC)?
WOTC is a federal tax credit—rewarding employers for hiring individuals from qualified groups facing employment barriers. Businesses can earn tax credits ranging from $2,400 to $9,600 per eligible employee, with up to 40% of the first $6,000 in wages covered.