Federal Work Opportunity Tax Credits

The Work Opportunity Tax Credit (WOTC) promotes the hiring of individuals who qualify as members of target groups, by providing a federal tax credit incentive of up to $9,000 for employers who hire them. The Employment Development Department is the WOTC certifying agency for California employers.

Homeless Hiring Tax Credit

California’s governor signed Assembly Bill (AB) 150 establishing the Homeless Hiring Tax Credit (HHTC). The credit is available for taxable years beginning January 1, 2022 through December 31, 2026. Employers may receive $2,500 to $10,000 in tax credit per eligible employee based on the actual hours worked in the taxable year. Employers may claim up to $30,000 of credit per taxable year.

Hiring Incentives

SMUD and the Sacramento Employment and Training Agency (SETA) have partnered to offer hiring incentives to local employers and contractors.

Key Components:

• Hire a participant from a list of SMUD pre-approved training programs
• OJT is a program that reimburses an employer for the costs of training a new employee
• Reimbursement of 50% of wages, up to $10 per hour of wages subsidized
  • Total potential reimbursement of up to $2,400 per OJT employee
• Screening for open positions and the type of candidate you are looking for
• Support to develop a customized training plan to ensure employee competency
• OJT Training plans are 1 to 3 months based on the employee’s skill gap and experience
• Continued long-term, unsubsidized full-time employment for successful OJT trainees

Employer Benefits:

• Employee Support: Employment Coaching provided to OJT participants
• Communication Ease: A single point of contact for employers to assist with recruitment and training
• Cost Savings: Save on payroll and human resources costs