Businesses: Check out these tax credits to cut your taxes

The Job Creation and Worker Assistance Act of 2002 provides a two-year extension for a couple of business tax credits that expired at the end of 2001.  If you qualify for the work opportunity credit or the welfare-to-work credit, you may be able to cut your tax bill.

Hire from these targeted groups.  The work opportunity credit is available to employers who hire individuals from eight targeted groups, including qualified veterans, vocational rehabilitation referrals, and qualified summer youth employees.  There's an additional targeted group for employers located in the New York "Liberty Zone."

The maximum credit per employee is $2,400 (40% of the first $6,000 of first-year wages).  If you hire qualified summer youth employees, the maximum credit is $1,200 (40% of the first $3,000 of first-year wages).

Besides being from one of the targeted groups, an employee must work at least 120 hours.  If an employee works less than 400 hours, the credit drops to 25%.

Put welfare recipients to work.  The welfare-to-work credit is available to employers who hire individuals who have been on long-term family assistance.

The maximum credit per employee is $8,500 (35% of the first $10,000 of first-year wages and 50% of the first $10,000 of second-year wages).  To be eligible for this credit, the new hire must work for your business for at least 400 hours or 180 days.

Get state certification.  To take either the work opportunity credit or the welfare-to-work credit, you must first obtain certification from your State Employment Security Agency that your new hire is from one of the targeted groups.