Utilizing data collected through a national survey of employers, the impact of federal tax credit programs for employers of Work Incentive Program (WIN) participants and Aid to Families with Dependent Children (AFDC) recipients was assessed. Six major questions were addressed: (1) What differences there were in the use of the WIN and welfare tax credits? (2) To what degree were employment tax credits a factor in employer decisions to hire WIN and welfare participants? (3) What features of each tax credit either contributed to or inhibited its use? (4) Was the program cost beneficial? (5) What are the implications of the study findings for legislation, policy, program design and operation? and (6) How can the program be changed to increase its use and make it more cost beneficial? The findings include the following: neither employment tax credit is extensively used but, of the two, the WIN tax credit is used more frequently; only eleven percent of the respondents who received tax credit certifications stated that the WIN tax credit was an important factor in their hiring decisions; the degree of tax credit utilization was often related to the overall economic health of the community; businesses became informed of the tax credit primarily through local WIN and Employment Service efforts; the emphasis which WIN job developers placed on the tax credit influenced how often it was utilized; and the WIN tax credit is a cost-effective approach for promoting WIN hires among employers who are aware of their eligibility for a tax credit. (EM)