Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is authorized under the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) for new hires after December 31, 2014 and before January 1, 2020. The U.S. Department of Labor (DOL) and U.S. Department of Treasury, through the Internal Revenue Service (IRS), jointly administer the implementation of the WOTC program. DOL, through the Employment and Training Administration (ETA), provides grant funding and policy guidance to the State Workforce Development Agencies, also called State Workforce Agencies (SWA) to administer the certification process, while IRS administers all tax-related provisions and requirements. WOTC target groups include: 1) Qualified IV-A recipient; 2) Qualified veteran; 3) Qualified ex- felon; 4) Designated community resident; 5) Vocational rehabilitation referral; 6) Recipient of SNAP benefits (food stamps); 7) Supplemental Security Income (SSI) recipient; 8) Long-term family assistance recipient; and 9) Qualified Long-term unemployment recipient. Funding For Fiscal Year (FY) 2019, SWAs received $18,485,000 to support the administration of WOTC, which includes certification process and reporting data on a quarterly basis. Outcomes  In FY 2018, SWAs issued 2,204,142 certifications.  In FY 2017, SWAs issued 2,027,012 certifications.  In FY 2016, SWAs issued 2,484,149 certifications.  In FY 2015, SWAs issued 1,896,528 certifications.  In FY 2014, SWAs issued 1,300,934 certifications. Note: Data may change due to performance reporting updates. Information and Resources For more information on how to file for the tax credit, visit the IRS website, http://www.irs.gov/wotc and the WOTC website, https://www.doleta.gov/business/incentives/opptax/. Please email questions to Ask.WOTC@dol.gov.