Coastal Corporation is planning an expansion of its production facilities and is considering whether to hire additional employees from qualifying groups to avail itself of the Work Opportunity credit. The company plant is not located in an empowerment zone.
New employees are paid approximately $18,000 per year. If qualifying veterans are hired, additional job training expenses of $5,000 per employee will be required. What tax issues should Coastal consider with regard to the hiring and training of its new employees?