Tax Incentives

The Work Opportunity Tax Credit (WOTC)

WOTC is a Federal Tax Credit available to private and for-profit employers who hire individuals from specified target populations. Certain tax-exempt organizations may qualify by hiring from the veteran target group.

WOTC reduces a business’s federal tax liability or payroll taxes, serving as an incentive to select job candidates who have barriers to employment.

How much is the WOTC tax credit?

Employers can earn a tax credit ranging from $1,200 to $9,600 per eligible employee hired, depending on the target group of the new employee and the number of hours worked in the first year.

Non-Veteran Target Groups

  • Ex-felons
  • Residents of empowerment zones or rural renewal counties
  • Summer Youth living in Empowerment Zones
  • Supplemental Nutritional Assistance Program (SNAP) benefit recipients
  • Supplemental Security Income recipients
  • Temporary Assistance for Needy Families (TANF) recipients
  • Vocational rehabilitation referrals
  • Long Term Family Assistance recipients
  • *NEW GROUP Long term unemployed recipients

Veteran Target Groups

  • Veterans receiving SNAP benefits
  • Disabled veterans
  • Unemployed veterans


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United States Department of Labor

Take Advantage of the Work Opportunity Tax Credit!

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