Work Opportunity Tax Credit Program

The Work Opportunity Tax Credit (WOTC) program is designed to assist individuals who are facing barriers transitioning into gainful employment. The tax credit can save Montana employers up to $9,600 per qualifying new hire during their first year of employment. The number of qualifying new hires is unlimited and is available to for-profit and tax-exempt organizations hiring job seekers from one of the following targeted groups.

• Qualified recipients of Aid to Families with Dependent Children (AFDC) or Temporary Assistance to Needy Families (TANF)
• Qualified Veterans (Submit “Release Form”)
• Qualified Disabled Veterans (Submit “Release Form”)
• Qualified Unemployed Veterans (Submit “Release Form”)
• Qualified Ex-Felons
• Qualified Designated Community Resident
• Qualified Vocational Rehabilitation recipient (Submit “Release Form”)
• Qualified Supplemental Nutritional Assistance Program (SNAP) (Food Stamps) Recipient
• Qualified Supplemental Security Income (SSI) Recipient
• Long-term Family Assistance (AFDC/TANF) Recipient
• Qualified Long-Term Unemployment Recipient (Submit ETA Form 9175)

Forms

To apply for certification, an IRS form 8850 (Pre-Screening Notice and Certification Request) must be completed on or before the job is offered, and postmarked within 28 days of the employee’s start date. In addition to the IRS 8850, an ETA form 9061 (Individual Characteristics) must be completed and submitted on or after the employee’s start date. Submit the required forms (8850 & 9061) to Christy Robbins, WOTC Coordinator at the address listed below.

New Information for Employers and Consultants

The Department of the Treasury and the Internal Revenue Service (IRS) recently issued Notice 2020-23.  In addition to other relief, the notice extends the due date for certain time-sensitive acts specified in Revenue Procedure 2018-58, 2018-50 IRB 990.  Under the notice, a time-sensitive act due to be performed on or after April 1, 2020, and before July 15, 2020, can be performed by July 15, 2020.  This includes the requirement for an employer seeking to qualify to claim the Work Opportunity Tax Credit to send IRS Form 8850 to a State Workforce Agency no later than 28 days after an individual begins (start date) working for the employer.  As a result, under the notice, employers that otherwise would be required to submit IRS Form 8850 to a State Workforce Agency on or after April 1, 2020, and before July 15, 2020, have until July 15, 2020, to submit IRS Form 8850.  In summary, the “start job” dates on page 2 of the IRS 8850 can range from March 4 to June 17 ( examples:  March 4 + 28 days = April 1   or   June 17 + 28 days = July 15).

Contact Information