A credit that provides an incentive to businesses to hire persons from groups with a particularly high unemployment rate or with special employment needs. The credit is based on first-year wages paid to targeted group employees, including recipients of Temporary Assistance for Needy Families, veterans, ex-felons, high-risk youth, vocational rehabilitation referrals, summer youth employees, food stamp recipients, and social security insurance recipients. The credit is 25% of qualified first-year wages for employees who worked for you for more than 120 hours but less than 400 hours, and 40% of qualified first-year wages for employees who worked for you for 400 hours or more. To claim this credit you must request and obtain a certification for each employee from the SESA, proving that the employee is a member of one of the targeted groups mentioned. You can also use Form 8850 as referenced above for the welfare-to-work credit.