Workforce Inclusion: Tacoma's $1,000 Tax Credit for Disabled Hires

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The city of Tacoma has initiated a significant change by approving a new ordinance that offers a $1,000 tax credit to employers who hire individuals with disabilities, starting in 2024. This move aims to support approximately 24,000 residents in Tacoma living with physical or mental disabilities, fostering workforce inclusion, reducing poverty, and aiding the transition of students with disabilities into jobs.

This tax credit, known as the Tacoma Work Opportunity Tax Credit, is designed to incentivize private sector involvement in employing people with disabilities. It's expected that this credit could lead to the creation of 15 to 30 new positions annually for disabled individuals in Tacoma. Consequently, businesses could benefit from tax credits ranging from $15,000 to $30,000, which can be used against their business and occupation tax liability in 2024.

For businesses to be eligible for this tax credit, they need to hire new employees with disabilities for permanent positions, paying them at least the minimum wage, whether employed full-time or part-time. Current employees who become disabled are not considered for this credit.

Tacoma City Councilmember Keith Blocker expressed the importance of this initiative in breaking down employment barriers for the disabled community, enhancing their chances of finding jobs, leading independent lives, and improving their overall quality of life.

Statistics indicate that poverty rates among individuals with disabilities are typically twice as high as those without disabilities, underscoring the urgency of such measures to bridge this disparity. The Tacoma City Council unanimously supported this tax credit, highlighting its positive impact on fostering a more inclusive workforce and recognizing the valuable contributions that people with disabilities can make to the city's vitality.

Councilmember Joe Bushnell emphasized that this tax credit not only provides new opportunities for historically marginalized groups in the workforce but also supports greater inclusion for disabled veterans, sending a strong message to local businesses about the value and potential of employing individuals with disabilities.