Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) is a Federal tax credit incentive that the Congress provides to private-sector businesses for hiring individuals from nine target groups who have consistently faced significant barriers to employment. The main objective of this program is to enable the targeted employees to gradually move from economic dependency into self-sufficiency as they earn a steady income and become contributing taxpayers, while the participating employers are compensated by being able to reduce their federal income tax liability. WOTC joins other workforce programs that help incentivize workplace diversity and facilitate access to good jobs for American workers.
On November 21, 2011, President Obama signed into law the Vow to Hire Heroes Act of 2011, which amends and expands the definition of WOTC's Veteran target groups.
- Summary of WOTC provisions in the Vow to Hire Heroes Act
- Interim instructions for state workforce agencies and employers
ETA's WOTC publications provide a plain-English overview of the program:
The 3rd., Edition of ETA Handbook No. 408 for the WOTC Program, published on November 2002 and its August 2009 Addendum, provide additional information on this program:
