HONOLULU (HawaiiNewsNow) – A tax credit meant to encourage employers to hire marginalized workers is stalled by the state's backlog of tens of thousands of workers.
Officials told HNN they are working to reduce these numbers.
The federal Work Opportunity Tax Credit is available to businesses that employ people from groups that the IRS says have “persistent barriers to employment.”
These include young people looking for summer jobs, veterans looking for a new career after military service, ex-felons, and more.
To qualify, employers must obtain certification from the state.
The state's Department of Labor and Industrial Relations announced that there is currently a backlog of 36,000 applications.
“It's common in this state,” said state Sen. Samantha DeCorte (R-Ko Olina, Nanakuli, Mairi, Waianae, Makaha, Makua), who said everyone in every sector is short-sighted.
“We have young people in our community who graduate (from high school) and don't necessarily want to go to college. So if there's a way we can encourage employers to hire young people who don't necessarily have work experience, this is It could be great for our community.”
Earlier this week, HNN asked the state Department of Labor what is being done to address the backlog.
No one was available for on-camera interviews, but a statement from the department said:
“The state is working to improve the information technology systems used to review tax credit applications. The goal is to streamline the process and allow applicants to confirm eligibility more quickly and efficiently. DLIR is confident that the implementation and refinement of automated processes across multiple institutions will significantly reduce backlogs.”
The federal Work Opportunity Tax Credit has been extended 11 times since its inception in 1996.
The state also notes that backlogs are occurring across the country.
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