Which tax credit is specifically designed for businesses that hire individuals from specific target groups?

The Work Opportunity Tax Credit is designed specifically to incentivize businesses to hire individuals from certain target groups who face barriers to employment. This includes veterans, long-term unemployed individuals, recipients of public assistance, and others who may have difficulty entering the workforce. By offering a tax credit to businesses that hire from these groups, the program encourages the creation of job opportunities and helps stimulate the economy by providing support to those in need of employment.

In contrast, the Earned Income Tax Credit primarily benefits low- to moderate-income working individuals and families by reducing their tax liability and potentially providing a refundable tax benefit. The Child Tax Credit offers tax relief to families raising children, based on the number of eligible children. The Adoption Credit provides financial assistance to families who incur expenses while adopting a child. While all these credits aim to promote various social and economic benefits, they do not specifically target employment incentives like the Work Opportunity Tax Credit does.