If you employ workers from an economically disadvantaged group, your business may be entitled to a Work Opportunity Tax Credit (WOTC). The credit equals 40% of the first $6,000 of wages paid to a qualified worker during the year.

But, you might also claim a special “summertime credit” for hiring youths age 16 or 17 who work for your business between May 1st and September 15th. The youth must reside in an Empowerment Zone (EZ) or Renewal Community (RC). The WOTC for these workers is 40% of the first $3,000 of wages. You can use the EZ/RC address locator located on the HUD website to find out if a worker qualified for this credit.