Tax Credits & Incentives
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Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit (WOTC) is a federal income tax benefit administered by the Department of Labor (DOL) for employers that hire individuals from specified target populations. WOTC reduces a business’s federal tax liability, serving as an incentive to select job candidates who may be disadvantaged in their efforts to find employment.
The main objective of this program is to enable individuals to become employed, earn a steady income and become contributing taxpayers. WOTC joins other workforce programs that help provide incentives for workplace diversity and improve access to good jobs for American workers.
Qualifying Target Groups
- Disabled and/or Unemployed Veterans
- Veterans with a service-connected disability
- Veterans receiving Supplemental Nutrition Assistance Program (SNAP) benefits
- Long-term family assistance recipients
- Temporary Assistance for Needy Families (TANF) recipients
- Offenders
- Vocational rehabilitation referrals
- SNAP recipients
- Supplemental Security Income (SSI) recipients
- Long-term unemployment recipients