Tax Credits Expand for Businesses Hiring Unemployed Veterans and Certain Youth

The American Recovery and Reinvestment Act, enacted in February, added unemployed veterans returning to civilian life and “disconnected youth” to the list of targeted groups covered by the work opportunity tax credit (WOTC). The other targeted groups that could get you the tax credit include people, aged 18 to 39, who live in certain designated communities in 43 states and the District of Columbia; workers displaced by Hurricane Katrina; recipients of various types of public assistance; and certain veterans, summer youth workers and ex-convicts. The instructions for Form 8850 will give you the details and requirements for each of these groups.  In general, an unemployed veteran is a person who was discharged or released from the military during the five year period preceding the hiring date, and who received unemployment benefits for at least four weeks during the one-year period en... [Read Full Article]

Small Business Bailout

It is nice to see that the economic stimulus package being prepared for President Obama’s approving pen throws a bone or two to small business. Here is what the summary prepared by the House Committee on Appropriations—Dave Obey (D-WI), Chairman—has to say: Creating Small Business Opportunity Small Business Credit: $430 million for new direct lending and loan guarantee authorities to make loans more attractive to lenders and free up capital. The number of loans guaranteed under the SBA’s 7(a) business loan program was down 57% in the first quarter of this year compared to last. Rural Business-Cooperative Service: $100 million for rural business grants and loans to guarantee $2 billion in loans for rural businesses at a time of unprecedented demand due to the credit crunch. Private sector lenders are increasingly turning to this program to help businesses get access to capital. ... [Read Full Article]