Employers may receive tax credits for hiring people with intellectual and developmental disabilities
A new state law encourages employers to hire individuals with disabilities. Under the measure, House Enrolled 1454, sponsored by Rep. Robb Greene (Shelbyville), employers may receive tax credits for hiring people with intellectual and developmental disabilities.
The U.S. Department of Labor says amost 80 percent of people with a disability are unemployed. Greene said, “Hoosiers with disabilities are valued community members and can be a great asset to any workforce. This law adds an incentive for employers to fill positions with ready and willing workers who should not be overlooked.”
Under the law, employers who receive a referral from a vocational rehabilitation services program for individuals with a disability and hires them will be eligible to receive a tax credit. The amount of the tax credit will be determined based on the employee’s tenure. In the first tax year of employment, the credit will be worth 30% of the wages, 40% in the second and 50% from the third year onward. This credit plan is only applicable to employers that qualify as a benefit corporation.
For employers who do not qualify as a benefit corporation, the credit will be worth 20% of all wages paid in the first tax year since employment, 30% in the second year and 40% from the third year onward.
Tax credits will apply for those who hire a person with disabilities after Dec. 31, 2023.