Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) provides a federal tax credit incentive of up to $9,600 for employers who hire members of target groups.

An employer may qualify for the WOTC by hiring individuals from the following nine target groups:

• Qualified recipients of Temporary Assistance to Needy Families (TANF);

• Qualified veterans from the following groups:

  1. People receiving Supplemental Nutrition Assistance Program (SNAP) benefits (previously Food Stamps); or
  2. Short-term unemployed veterans (four weeks - six months); or
  3. Service-related disabled veterans discharged from active duty within a year; or
  4. Long-term unemployed veterans (six months - one year) ; or
  5. long-term unemployed service-related disabled veterans;

• Ex-felons hired no later than one year after conviction or release from prison;

• Designated Community Resident – individuals ages 18 through 39 who reside in an Empowerment Zone, Renewal Community, or Rural Renewal County;

• Vocational rehabilitation referrals - individuals with a mental or physical disability;

• Qualified summer youth ages 16 through 17 who reside in an Empowerment Zone, Enterprise Community, or Renewal Community;

• Qualified SNAP (Food Stamp) recipients aged 18 through 39;

• Qualified recipients of Supplemental Security Income (SSI); or

• Long-Term Family Assistance (LTFA) recipients.

The credit can be claimed until 2020.