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Tax Credits for Employers Hiring Individuals with Disabilities Expanded

New rules expand tax credits for businesses hiring individuals receiving disability benefits. Employers can now claim larger tax deductions for employing such individuals, aiming to encourage a more inclusive job market. These changes may make it easier for people with disabilities to find employment and improve their financial well-being.
Key points
Expansion of the Work Opportunity Tax Credit to include individuals receiving Social Security Disability Insurance (SSDI) benefits.
Increase in the tax credit amount for employers hiring vocational rehabilitation referrals, qualified SSI recipients, and newly added qualified SSDI recipients, covering also the second year of employment.
The maximum wage amount eligible for the credit increases to $12,500 per year for these employee groups.
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Additional Information
Work Opportunity Tax Credit Disability Expansion and Enhancement Act
Print number: S 3044
Sponsor: Sen. Casey, Robert P., Jr. [D-PA]
Process start date: 2021-10-21