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 persistant 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:
- Temporary Assistance to Needy Families (TANF)
- Qualified Veterans (Please submit a Release Form)
- Qualified Disabled Veterans (Please submit a Release Form)
- Qualified Unemployed Veterans (Please submit a Release Form)
- Qualified Ex-felons
- Qualified Designated Community Resident (Please submit age and address verification)
- Qualified Vocational Rehabilitation recipient (Please submit a Release Form)
- Qualified Supplemental Nutritional Assistance Program (SNAP)/Food Stamps recipient
- Qualified Supplemental Security Income (SSI) recipient
- Long-time Family Assistance (AFDC/TANF) recipient
- Qualified Long-term Unemployment recipient (Please submit 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; and postmarked within 28 days of the employee's start date. Effective February 20, 2024, employers will be required to submit IRS Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, together with ETA Form 9061, Individual Characteristics Form no later than the 28th calendar day after the employee begins working for the employer. For certification requests submitted by postal mail, the submission must be postmarked no later than the 28th calendar day after the employee begins working for the employer. Please submit the required IRS Form 8850 and ETA Form 9061 by following the instructions displayed within the New Information for Employers and Consultants section below.
