How businesses can flourish using employee tax credits available under the new Economic Stimulus Plan

1. Employer Incentives
Work Opportunity Tax Credits

2. About The Company
Ken Brice, President, CFO Resources, Inc. and ETaxCredits.com
• A student of corporate finance, Ken dedicated many years
to educating himself in the finer points of financial
resourcing and developing cash flow for business owners
• He established CFO resources in 1992 and began running
it full time in 1994
Dedicated the company to help others succeed and improve their
profitability and cash flow.
Added a tax credit service to the company portfolio in 1996
Currently, 260+ clients are taking advantage of this program

3. Brief History of Tax Credits
Established by the Small Business Job Protection Act of 1996
(P.L. 104-188).
The Taxpayer Relief Act of 1997 reauthorized the Work
Opportunity Tax Credit (WOTC) and established a new
Welfare-to-Work Tax Credit for hiring long-term welfare
recipients,
In May, 2008 President Bush reauthorized the programs through
August 31, 2011
In President Obama’s economic plan for the current
administration, the roles of tax credits are being expanded

4. A Snapshot of the Program
• This program is a way of rewarding employers who hire
individuals that the government sees as needing special aid in
finding employment
• It costs the government ~$25k a year to supply someone
public assistance; the government offers businesses an
incentive when you find their skills set and your needs match
and you offer employment
• In order to qualify someone, an employer needs to file for
certification with the appropriate state agency; most state
certifying agencies are understaffed and need extra time and
attention to process certifications

5. A Snapshot of the Program
• State agencies need regular and consistent follow up to
ensure payment is made in a timely manner
• Most employers do not have access to the information needed
to maximize the program nor do they need to support the
infrastructure required to process all applications.
• 90% of the applications that an employer receives are denied
or invalid
• The remaining 10% can be worth thousands of dollars each

6. Expanded Veterans Group
• Previously, only veterans in a household that had received
public assistance would qualify
• Currently, due to changes brought about by the Obama
administration and the President’s Stimulus plan, ALL
unemployed veterans returning from active duty in 2008-2010
will qualify
• Hiring qualified and trained returning troops becomes in
everyone best interest

7. New “Disconnected Youth” Group
• An unheralded benefit for employers, the youth job market and
job seekers
• The federal government is further expanding the base of new
hire employees that will make companies eligible for employee
tax credits
• Prospective employees between the ages of 16 and 25 who
have not worked or attended school in 6 months qualify for a
tax credit

8. Other available employee tax
credits
Work Opportunity Tax Credits; federally funded, state administered
For Long Term Welfare Recipients (over 18 months)
40% of the first $10,000 in earnings for year 1
50% of the first $10,000 in earnings for year 2 for a total of $9,000
Qualified Employee must work a minimum of 120 hours
For all but Long Term Welfare Recipients
40% of first year’s wages, up to a cap of $2,400- over 400 hours
25% of first year’s wages, up to a cap of $1,500 - under 400 hours
but over 120 hours.
Qualified employee must work a minimum of 120 hours

9. Empowerment Zones/Enterprise or
Renewal Communities
Depending on where you’re business is located, your company may be eligible
for an Empowerment Zone credit, Enterprise Zone credit or Renewal
Community credit.
EZs, ECs, and RCs are areas of a city that has been designated by the federal
government as distressed areas and are typically the more challenged areas
of a city. Nationally there are:
 65 Urban Enterprise Communities
 6 Urban Empowerment Zones
 30 Rural Enterprise Communities
 3 Rural empowerment zones
 DC Enterprise Zone

10. Targeted Employees
If you hire from “Targeted” groups, the federal government will pay
you for hiring them in the form of federal income tax credits. Target
groups consist of:
• People on food stamps • People on state disability
programs
• People on Welfare (TANF)
• Veterans who come from
• People who are on
families on public assistance
Supplemental Security Income
• Young people who live in
(SSI)
empowerment zones
• Ex-felons
• Long Term Welfare Recipients
• Katrina Victims
Tax Credits are used by companies to reduce their federal and state
income tax liability, you may be hiring these people and don’t even
know it!
Don’t worry – “we do all the work, you get all the credits”

11. Empowerment Zones/Enterprise or
Renewal Communities
A tax credits earning potential per qualified “Zone/Enterprise or
Rural Community” employee is up to $3,000 per year for EZs
and ECs and $1,500 per year for RCs
This credit is calculated at 20% of the first $15,000 in earnings for
a maximum tax credit of $3,000 for EZs and ECs and 10% of
the first $15,000 in earnings for RCs.
You can claim retroactively on existing staff

12. What’s in it for You!
On Average, 10% of your new hires will be eligible for an
tax credit of $1,500
Take the number of people you expect to hire and multiply
first by 10% and then by $1,500
If you would like to reduce your taxes by that amount each
year, you need this program

13. Our Company’s Services:
• File for certification (employee qualification) in all states where you have
payroll – you’re only billed when certifications are received and you’ve
earned credits from the respective states
• Follow up with respective government agencies to assure certifications are
submitted and approved
• Maintain an accurate data base of qualified individuals and for what
program
• Calculate the credits using our proprietary software

14. Our Company’s Services:
• Send you quarterly reports indicating the number of certifications we’ve
received and the number who were not certified and why
• At the end of the fiscal year, we’ll send you the appropriate tax forms to file
with your taxes (and take the deduction) along with copies of all certification
for your records.
• Leveraged CFO experience to create a methodology for accurately capturing
income credits
• There are no up front fees – we only bill when we receive certifications and
are successful. If you don’t get paid, we don’t get paid. Calculated and billed
quarterly.
No fee unless the employee is certified!

15. Presented for CFO Resources,
Inc. and ETaxCredits.com
Jed Levinson; LinkedIn Consultant
521 Executive Dr
Princeton, NJ 08540
• jlevinson@cforesources.com
http://www.linkedin.com/in/jedlevinson
CFO Blog