Since its enactment by Congress in 1997, the Work Opportunity Tax Credit (WOTC) Program has been integral to job creation by giving employers a tax credit when they hire qualified individuals with persistent and significant barriers to employment.
This federal tax credit and incentive program enables new employees to move gradually from economic dependency to self-sufficiency as they earn a steady income and become contributing taxpayers. In addition, participating employers are compensated by a reduction in their federal income tax liability. The number of qualifying new hires is unlimited. The tax credit is available to for-profit and tax-exempt organizations who hire job seekers from one of the following target groups, please see examples of needed additional documentation to submit with your application below:
- Temporary Assistance to Needy Families (TANF) – Nothing additional needed
- Qualified Veterans - Please submit a Release Form, DD-214, or Discharge Papers
- Qualified Ex-felons – Nothing additional needed, unless needs letter is sent
- Qualified Designated Community Resident – Please submit age and address verification such as State issued I.D. and W-4
- Qualified Vocational Rehabilitation Recipient - Please submit a Release Form, and an Agency Contact
- Qualified Summer Youth Employee - Please submit age and address verification such as State issued I.D. and W-4
- Qualified Supplemental Nutritional Assistance Program (SNAP) recipient- Nothing additional needed
- Qualified Supplemental Security Income (SSI) recipient – Nothing additional needed
- Long-time Family Assistance (TANF) recipient – Nothing additional needed
- Qualified Long-term Unemployment recipient – nothing additional needed, unless out of state, then submit an ETA Form 9175
To apply for certification, an IRS Form 8850 (Pre-screening Notice and Certification Request) must be completed on or before the job is offered; with an ETA 9061 (Individual characteristics form) and postmarked within 28 calendar days of the employee's start date or submitted via online portal link here. Montana does not accept application via email or fax.
