Work Opportunity Tax Credit Program (WOTC)

Objective

This federal tax credit was designed to help individuals from certain targeted groups who consistently face significant barriers to employment move from economic dependency to self-sufficiency. Businesses are encouraged to hire targeted group members in order to claim the tax credit against wages paid to eligible new hire(s) during their first year of employment. WOTC joins other workforce programs that incentivize workplace diversity and facilitate access to good jobs for American workers.

Who Can Apply

• U.S. State Government (including the District of Columbia)
• U.S. Territory (or Possession) Government (including freely-associated states)

States (not individuals), the District of Columbia, the U.S. Virgin Islands, and Puerto Rico. The "designated local agency," also known as the State Workforce Agency (SWA), is the designated state employment security agency (established in accordance with the Wagner-Peyser Act of June 6, 1933, as amended (29 U.S.C. 49–49n)) authorized to administer the WOTC.

Who Benefits

• U.S. State Government (including the District of Columbia)
• U.S. Territory (or Possession) Government (including freely-associated states)

Beneficiaries are all employers seeking to hire members of WOTC targeted groups, and members of those targeted groups seeking employment. The ten different targeted groups have statutory definitions (Public Law 104-188, as amended) with specific eligibility requirements that must be verified by the State Workforce Agency (SWA) before a WOTC certification can be issued to an employer. Participating employers and/or their authorized representatives must submit their certification requests to the appropriate SWA using IRS Form 8850 and ETA Form 9061/9062 within 28 calendar days of the new hire's start date. IRS Form 8850 should be submitted with ETA Form 9061/9062, and any required supporting documentation to prove targeted group eligibility.

Assistance Types

• Grant

Program Contact

Rietzke.Steven@dol.gov
2026933912