TANF Tax Credits

Employers who hire TANF participants may qualify for additional tax credits. 

Qualifying employers may receive basic credit amount equal to:

  • 20% of wages paid to such employee for each full month of employment during the first 12 months of employment;
  • 15% of wages paid to such employee for each full month of employment during the second 12 months of employment; and
  • 10% of wages paid to such employee for each full month of employment during the third 12 months of employment.

The client must have received a TANF stipend for three months before the hire date. The DSS office will authenticate this eligibility. The DSS Form 12108 is used to request this eligibility.

If you would like more information about tax credits, please complete this form.