Why take the worker's opportunity tax credit?

Here are a few reasons why an employer might want to take the Worker Opportunity Tax Credit:

• It provides a federal tax credit for hiring employees from certain targeted groups that have traditionally faced barriers to employment. Eligible groups include veterans, ex-felons, those on public assistance, and those living in empowerment zones.
• The tax credit amounts to up to $9600 per eligible employee hired. So it can provide a significant cost savings on taxes for employers.
• It incentivizes employers to diversify their workforce by hiring from demographics they may not have considered or tapped into before.
• It can help employers fill positions when there is a shortage of qualified candidates. The tax credit makes hiring from the eligible groups more advantageous financially.
• By creating employment opportunities for the targeted groups, it aids in reducing unemployment for populations that tend to have higher jobless rates.
• The employer gets a social benefit of helping individuals who likely want and need jobs in order to gain skills, income, and stability.

So in summary, the key reasons an employer may want to claim the Worker Opportunity Tax Credit are the significant federal tax savings, the incentive to diversify hiring practices, help filling open positions, reducing unemployment for disadvantaged groups, and gaining a social benefit for the company's image. The credit aims to achieve both economic and social goals.