http://www.doleta.gov/business/incentives/opptax/

A Federal tax credit for private-sector businesses for hiring individuals from twelve target groups who have consistently faced significant barriers to employment. The consolidated WOTC applies only to new employees who began to work for an employer after December 31, 2006 and before September 1, 2011 The main objective of this program is to enable the targeted employees to gradually move from economic dependency into self-sufficiency, while the participating employers are compensated by being able to reduce their federal income tax liability. The consolidated WOTC for hiring most target group members can now be as much as:

• $2,400 for each new adult hire;
• $1,200 for each new summer youth hire,
• $4,800 for each new disabled veteran hire, and
• $9,000 for each new long-term family assistance recipient hired over a two-year period.

All new adult employees must work a minimum of 120 or 400 hours. Individuals hired as Summer Youth employees must work at least 90 days, between May 1 and September 15, before an employer is eligible to claim the tax credit. The WOTC amount an employer may claim depends on the hours the employee works. The credit is 25% of qualified first-year wages for those employed at least 120 hours but fewer than 400 hours and 40% for those employed 400 hours or more.