Employer Tax Incentives

Work Opportunity Tax Credit

Texas employers are eligible for 2 tax credit programs offered through the Texas Workforce Commission. The Work Opportunity Tax Credit (WOTC) is a federal tax credit for hiring targeted harder-to-place workers that reduces the federal tax liability of private employers.

Employers who hire public assistance recipients, and provide and pay part of their major medical insurance costs may also be eligible for a State of Texas Tax Refund. This tax credit is not available currently.

Dependent Care Assistance Benefit

Employers who provide on-site child care services or provide financial assistance for employees may be eligible for state franchise tax credits related to day care and after-school care programs or the federal Dependent Care Assistance benefit.

Employers who provide transportation assistance for employees may qualify for the federal Transportation (Commuting) Benefits credit. Employers who make their businesses more accessible to persons with disabilities may be eligible for annual federal tax credits or deductions. View other tax incentives.

Franchise Tax Credits

The Texas Legislature created 3 franchise tax credits for economic development. Eligible corporations may take advantage of these credits for certain research and development expenses and payments incurred, for qualified capital investments or expenditures made, or for certain new jobs created in Texas on or after January 1, 2000.

For more information on these tax credits, visit the Texas Comptroller’s website.

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For additional information or assistance, please contact a Business Solutions representative.