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Employer Incentives, Tax Credits & Programs

The Tennessee Department of Labor and Workforce Development administers a number of programs for employers.  The department’s website at http://www.tn.gov/workforce provides a great deal of helpful information. American Job Center staff can provide assistance with many of these programs, including:

Work Opportuity Tax Credit.  The Work Opportunity Tax Credit (WOTC) provides tax credits to  businesses for hiring persons within certain target groups.  Additional information is available at https://www.tn.gov/workforce/article/work-opportunity-tax-credit  As indicated on the website, “The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) retroactively allows eligible employers to claim the WOTC for all targeted group employee categories that were in effect prior to the enactment of the PATH Act, if the individual began or begins work for the employer after December 31, 2014 and before January 1, 2020. For tax-exempt employers, the PATH Act retroactively allows them to claim the WOTC for qualified veterans who begin work for the employer after December 31, 2014, and before January 1, 2020. (The maximum tax credit ranges from $1,200 to $9,600, depending on the qualified targeted group hired.) The PATH Act also added a new targeted group category to include qualified long-term unemployment recipients.”

Tennessee Drug Free Workplace.  This is a voluntary program that rewards companies that follow certain drug and alcohol screening guidelines and requirements. The companies that establish and utilize a certified program are allowed to accrue workers’ compensation premium discounts. The legislation also provides a good foundation for confronting substance abuse problems in the workplace and makes it easier for companies to develop a top quality drug and alcohol screening program.  For additional information and forms, visit https://www.tn.gov/workforce/article/drug-free-workplace-program

Federal Bonding.  Job seekers needing fidelity bonding to be hired or promoted may be eligible for the Federal Bonding program sponsored by the U.S. Department of Labor. Staff at the American Job Center are available to certify applicants for this program.