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Stimulus Target Groups

The American Recovery and Reinvestment Tax Act of 2009 (Economic Stimulus Package) which was signed into law by the President on February 17, 2009 contains numerous tax credit and incentive provisions which include tax incentives for businesses. Through this bill the Work Opportunity Tax Credit program has been expanded to include two new categories: unemployed veterans and disconnected youth who begin work for the employer after December 31, 2008.

Effective immediately, there are two additional target groups to add to the Work Opportunity Tax Credit program. These two target groups include only those individuals who are hired after December 31, 2008 and before December 31, 2010. The new target groups are unemployed veterans and disconnected youth who begin work for the employer after December 31, 2008.

The two new target groups are defined as:

An unemployed veteran is defined as an individual certified by the designated local agency as someone who:

1. has served on active duty (other than for training) in the Armed Forces for more than 180 days or who has been discharged or released from active duty in the Armed Forces for a service-connected disability;
2. has been discharged or released from active duty in the Armed Forces during the five-year period ending on the hiring date; and
3. has received unemployment compensation under State or Federal law for not less than four weeks during the one-year period ending on the hiring date.

A disconnected youth is defined as an individual certified by the designated local agency as someone:

1. at least age 16 but not yet age 25 on the hiring date;
2. not regularly attending any secondary, technical, or post-secondary school during the six-month period preceding the hiring date;
3. not regularly employed during the six-month period preceding the hiring date; and
4. not readily employable by reason of lacking a sufficient number of basic skills.

Please call 605.626.7652, ext. 4415 for additional information.