Work Opportunity Tax Credit
Important Notice - Congress Passes WOTC Legislation
On January 3, 2013, the President signed into law the American Tax Payer Relief Act of 2012, which authorizes an extension of the WOTC program:
- Continues authorization of all veteran target groups (including those implemented under the VOW to Hire Heroes Act) until December 31, 2013.
- Retroactively reauthorizes all WOTC non-veteran target groups, from December 31, 2011 to December 31, 2013.
- Retroactively reauthorizes Empowerment Zones, which determines eligibility for the summer youth target group, from December 31, 2011 to December 31, 2013.
- Does NOT reauthorize the Recovery Act disconnected youth and Recovery Act unemployed veteran target groups.
The Work Opportunity Tax Credit (WOTC) is available to employers who hire people from specific target groups that experience barriers to employment.
- WOTC can provide up to $2,400 in tax relief for each qualifying hire, and up to $9,000 for long term family assistance recipient hires.
- Easy application process.
- Full-time, part-time, and temporary employees make your business eligible for the tax credit.
- Tax credit of up to $2,400 for Veteran receiving SNAP.
- Tax credit of up to $4,800 for Disabled Veteran hired within a year of military discharge.
- Tax credit of up to $5,600 for hiring veterans who have been looking for a job for more than six months, as well as a $2,400 credit for veterans who are unemployed for more than 4 weeks, but less than 6 months.
- Tax credit of up to $9,600 for hiring veterans with service-connected disabilities who have been looking for a job for more than six months.
- Employers may claim a tax credit on an unlimited number of qualifying new hires.