Work Opportunity Tax Credit Program (WOTC)

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who invest in American job seekers who have consistently faced barriers to employment. Employers are encouraged to meet their business needs and claim the tax credit if they hire an individual who is an eligible WOTC targeted group member. Employers must apply for and receive a certification from their State Workforce Agency verifying the new hire is a member of a targeted group before they can claim the tax credit. After the required certification is secured, taxable employers claim the work opportunity credit as a general business credit against their income taxes, and tax-exempt employers claim the credit against their payroll taxes.