The amount of the credit varies depending on the target group of the individual hired and the number of hours worked. Generally, the credit is equal to a percentage of the eligible employee's first-year wages, up to a maximum amount:
For most target groups, the credit is 25% of qualified first-year wages for employees who work at least 120 hours, and 40% for those who work at least 400 hours. For long-term TANF recipients, the credit is 40% of first-year wages and 50% of second-year wages, up to a maximum of $10,000 each year.
The maximum credit amount can range from $1,200 to $9,600, depending on the employee's target group and hours worked.