Work Opportunity Tax Credit Program
As of January 1, 2015, WOTC is in a "hiatus" period. All timely filed WOTC certification requests for employer's new hires made on or before December 31, 2014 will be accepted and fully processed. WOTC applications for employers' new hires made on or after January 1, 2015 will be held pending further legislative action and guidance from ETA.
Important Notice - Congress Passes WOTC Legislation
On December 19, 2014, the President signed into law the Tax Increase Prevention Act of 2014, which reauthorizes a retroactive 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, 2014.
- Retroactively reauthorizes all WOTC non-veteran target groups, from December 31, 2013 to December 31, 2014.
- Does NOT reauthorize the Recovery Act disconnected youth and Recovery Act unemployed veteran target groups.
Certification requests for Summer Youth and Designated Community Resident (DCR) groups will be accepted but processing will be held pending further guidance from ETA.
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.