Work Opportunity Credit
The Work Opportunity Tax Credit (WOTC) allows you to defer your federal tax liability for every physically or mentally disabled person you hire via a vocational rehabilitation referral.

The guidelines are as follows
For new hires working over 400 hours, you can receive a tax credit on 40 percent of the employee's wages (up to $6,400) for his first year of employment. For new hires working from 120 to 400 hours, you can receive a credit of 25 percent of the employee's wages for his first year of employment. Your company's deduction for wages generally must be reduced by the amount of the credit.

The value of the credit is the difference between the tax savings the wage deduction would otherwise generate and the dollar-for-dollar tax reduction the credit produces plus the reduced tax deduction that's available. For example, assume a business in the 25 percent tax bracket can use all of the credits it earns in the current year and that it has $6,000 of wages qualifying for the WOTC. That $6,000 of wages will produce a $2,400 tax credit (that saves $2,400 of taxes) and a tax deduction of $3,600 ($6,000 - $2,400) that saves $900 of taxes. Thus, the total tax reduction from the $6,000 of wages is $3,300 ($2,400 + $900). If the business forgoes the credit, those same wages will provide a $6,000 tax deduction (that saves $1,500 of taxes). As a result, the credit is worth $1,800 ($3,300 - $1,500). That works out to a 30 percent after-tax return ($1,800 / $6,000) on $6,000 you were going to have to spend anyway to hire someone.