HONOLULU (HawaiiNewsNow) – A tax credit intended to encourage employers to hire marginalized workers is mired in a backlog in tens of thousands of states.
Officials told HNN they are working to reduce those numbers.
The federal Work Opportunity Tax Credit is provided to businesses that hire people from groups that the IRS describes as having “persistent barriers to employment.”
These include young people looking for summer jobs, veterans looking for a new career after serving and former felons.
For employers to be eligible, they must obtain certification from the state.
The state Department of Labor and Industrial Relations said there are currently 36,000 backlogged submissions.
“It’s pretty common in the state. Everyone is shorthanded in every department, said State Sen. Samantha DeCorte (R-Ko Olina, Nanakuli, Maili, Waianae, Makaha, Makua).
“We have young people in our community who don’t necessarily want to go to college after they graduate (from high school), so if there’s a way to incentivize employers to hire young people who don’t necessarily have work experience, this could be a good thing for our communities.
Earlier this week, HNN asked the state Department of Labor what was being done to address the backlog.
While no one was available for an on-camera interview, a statement from the ministry read:
“The State is working to improve the computer systems for processing tax credit applications. The goal is to streamline the process, allowing for faster and more efficient verification of applicant eligibility. DLIR is confident that as the automated process is implemented and refined across multiple agencies, the backlog will be significantly reduced. »
The federal Work Opportunity Tax Credit has been extended 11 times since its inception in 1996.
The state also points out that delays are happening across the country.
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