Empowerment Zone Employment Credit 
 If you locate your business in a federal "empowerment zone," and you hire/retain workers who also live and work within the zone, you may be eligible to receive an Employment Zone Wage Credit. The credit, against Federal taxes, can be as much as $3,000 (20% of the first $15,000) per employee per year. The workers can be full-time or part-time, so long as a substantial portion of their work is done within the zone and as part of your trade or business. 
 
 Work Opportunity Tax Credit 
 This credit was designed to provide an incentive to hire persons from certain disadvantaged groups that have a particularly high unemployment rate (including urban youths, government assistance recipients, ex-convicts, disadvantaged Vietnam vets, and vocational rehabilitation referrals). It was created in 1996 to replace the expired Targeted Jobs Tax Credit (TJTC). The credit is for 40 percent of the first $6,000 of each worker's first year wages ($2,400 maximum credit), provided 400 or more hours are worked. 
If less than 400 hours but at least 120 hours are worked, the wage percentage drops to 25, for a maximum credit of $1,500. No credit 
is available for employees who work less than 120 hours. 
For summer youth employees, the maximum credit is 35 percent of up to $3,000 of wages paid during a 90-day period, for a maximum credit of $1,050. 
 
 Welfare-To-Work Tax Credit 
 A tax credit is provided to employers who hire qualified long-term family assistance (AFDC or its successor program) recipients. The credit is equal to 35 percent of up to $10,000 of wages in the first year and up to 50 percent of up to $10,000 in the second year of employment, for a two-year maximum credit of $8,500 per employee.