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
- 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