Description: Credit against Federal taxes up to $3,0000 for each year of EZ designation for every existing employee and new hire who lives and works in the EZ. The credit is available beginning January 1, 2002 through December 31, 2009.

• A wage credit of up to $3,000 for every employee that lives and works in the EZ.
• No limit on the number of employees.

Note: Cannot count same wages for the WOTC and WTW credits and the EZ Wage Credit.

Applicable IRS Tax Form: Form 8844

Applicable IRC Publication: Publication 954

Example 1: Bob hires 2 employees who live and work in the EZ and pays each of them $17,000. Bob's EZ wage Tax Credit would be:

2 x $15,000 x .20 = $6,000

Example 2: Joe hires 6 employees who live and work in the EZ, paying three of them $17,000 and three of them $10,000. Joe's EZ Wage Tax Credit would be:

((3 x $15,000) + (3 x $10,000)) x .20 = $15,000