Effective January 1, 1998, the WTWTC  is a program proposed by President Clinton and passed by the Congress to create new job opportunities for long term welfare recipients. The WTWTC enables employers to claim a first year tax credit of 35% and a second year tax credit of 50% on the first $10,000 in cumulative wages paid each year. For the very first time, the employer is allowed to treat employer provided education and training assistance, health care, and dependent care spending as wages in the computation of the tax credit.

THE ELIGIBLE GROUPS

• Welfare recipients who have received Temporary Assistance for Needy Families (TANF) for at least eighteen consecutive months or,

• Welfare recipients who have had their benefits cut off due to state or federal time limitations.