State Point-of-Hire (POH) credits defined
Many states offer Point-of-Hire (POH) Employment Tax Credits that use criteria similar to the WOTC's hiring requirements.
How much businesses can save
State POH credits can range from a few hundred dollars, up to $35,000 per qualifying employee.
At CTI, we refer to these state POH incentives as “WOTC piggyback credits.” Piggyback means we can capture the state credits using the same screening process that we use for the WOTC.
Examples of states with WOTC piggyback credits include:
- New Mexico
- New York
- North Dakota
- South Carolina
- West Virginia
When to claim the credit
- The time frame for when an employer can claim the tax credit and the type of state taxes against which the claim can be made (income tax, sales tax, etc.) varies by state.
- State credits are typically non-refundable, meaning the business must have a tax liability against which to use the credit, however, not all states conform to this.
- Eligibility to carry credits forward or back, for how long they can be carried, varies by state.
How to claim the credit
Forms and deadlines vary by state. Consult a CTI tax professional for more information.