As an overall assessment of the Work Incentive (WIN) and Aid to Families with Dependent Children (AFDC) tax credit programs, the project reported sought answers to the following questions: (1) To what degree are tax credits a factor in employer decisions to hire WIN registrations and welfare recipients? (2) What are the differences in usage of the WIN and the welfare tax credits? (3) What provisions or features of the tax credits contribute to or inhibit their use and effectiveness? (4) How do costs of the program (especially tax revenue decreases) compare with savings generated by the program (especially welfare savings, wages and/or taxes, and social security revenue increases)? (5) What are the implications of the findings for legislation, policy, program design, and operation? (6) How can the program be changed to increase its use and make it more cost beneficial? Content is presented in seven chapters: (1) Historical Perspective on Employment Tax Credits, (2) Study Method, (3) Community Variables, (4) Characteristics of WIN/Welfare Registrants, (5) Differences Between WIN Offices, (6) Business Firms and Their Utilization of Employment Tax Credits, and (7) Composite Analysis. An extensive bibliography is included. (Author/WL)