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WOTC Eligible New Hires

To be eligible under the WOTC program, a new hire must have begun to work for an employer after December 31, 2006 and before January 1, 2012. For an employee to be certified as an eligible group member by a State Workforce Agency, the new hire must belong to one of the following 9 WOTC target groups:

  1. Long-term TANF Recipient. A member of a family that:
    • Received Temporary Assistance to Needy Families (TANF) payments for at least 18 consecutive months ending on the hiring date, or
    • Received TANF payments for any 18 months (whether or not consecutive) beginning after August 5, 1997, and the earliest 18-month period beginning after August 5, 1997 ended during the past 2 years, or
    • Stopped being eligible for TANF payments during the past 2 years because federal or state law limited the maximum time those payments could be made.
  2. Other TANF Recipient. A member of a family that is receiving or recently received TANF benefits for any 9-month period during the 18-month period ending on the hiring date;
  3. Qualified Supplemental Nutrition Assistance Program (SNAP) Recipient. An 18-39 year old member of a family that received SNAP for the past 6 months, or received Food Stamps for at least 3 of the past 5 months;
  4. Designated Community Resident. An 18-39 year old resident of one of the federally designated Empowerment Zones (EZs) or Rural Renewal Counties;
    Note: On December 17, 2010, P.L. 111-312 reauthorized each HUD-designated urban Empowerment Zone (EZ) and each USDA-designated rural EZ from January 1, 2010 through December 31, 2010.
  5. Summer Youth Employee. A 16-17 year old EZ resident who works for an employer between May 1 and September 15;
    Note: The EZs were extended from January 1, 2010 through December 31, 2010.
  6. Qualified Veteran. A veteran who is a member of a family that is receiving or recently received SNAP benefits for at least a 3-month period during the past 15 months; and for individuals who begin to work for an employer after May 25, 2007, the veteran group is expanded to include “disabled veterans” who are entitled to compensation for a service-connected disability and who, during the one-year ending on the hiring date, were: a) discharged or released from active duty in the U.S. Armed Forces, or b) unemployed for a period or periods totaling at least 6 months. The first-year wages taken into account for these “disabled veterans” are capped at $12,000;
  7. Vocational Rehabilitation Referral. An individual who completed or is completing rehabilitative services from a State certified agency, an Employment Network, or the U.S. Department of Veterans Affairs;
  8. Qualified Ex-Felon. An individual who has been convicted of a felony and has a hiring date which is not more than one year after the last date on which he was so convicted or released from prison;
  9. SSI Recipient. A recipient of Supplemental Security Income (SSI) benefits for any month ending during the past 60 day period ending on the hire date.

Minimum Employment or Retention Period. In addition to belonging to one of the 9 groups outlined above, all new adult employees must work a minimum of 120 hours to qualify for the WOTC. Individuals hired as Summer Youth employees must work at least 90 days, between May 1 and September 15, to qualify for the credit.

Ineligible Populations. The following individuals or groups of individuals do not qualify for the WOTC, even if they meet the other eligibility criteria:

  • Employer's relatives and dependents;
  • Majority owners of the employer; and
  • Former employees.