Work Opportunity Tax Credit Program (WOTC)

 

This federal tax credit was designed to help individuals from certain target groups who consistently face significant barriers to employment move from economic dependency to self-sufficiency by encouraging businesses to hire target group members and be eligible to claim tax credits against the wages paid to the new hires during the first year of employment.

Active 17.271 Employment and Training Administration, Department of Labor A - Formula Grants Not applicable. The WOTC Program is authorized under §§ 51 and 3111(e) of the Internal Revenue Code (Code), as extended and amended by the Protecting Americans from Tax Hikes Act of 2015, Pub. L. No. 114-113, div. Q (the PATH Act)., Title 26, Part IV, Section 51, Public Law 104-188, 26 U.S.C. 51-52
Tax Increase Prevention Act of 2014 (The Act), Public Law 113-295 States (not individuals), the District of Columbia, the Virgin Islands, and Puerto Rico. Beneficiaries are all employers seeking WOTC target group workers and members of those target groups seeking employment. The members of the different target groups have statutory definitions (per Public Law 104-188, as amended) with specific eligibility requirements that must be verified by the State Workforce Agencies before a new hire certification can be issued to an employer or his/her representative. Participating employers and their representatives must file their certification requests with State Workforce Agencies using IRS Form 8850 and ETA Form 9061 or 9062 within 28 days after the employment start day of the new hires. Not applicable. Preapplication coordination is not applicable. This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. WOTC grant funds are provided to State Workforce Agencies (SWAs) on an annual basis. Grant amounts are determined by formula. Not applicable. Not applicable. Not applicable. Not applicable. Not applicable. States are to use these formula grants for: accepting WOTC applications from employers; determining eligibility of individuals as members of the target groups; issuing employer certifications or denials; developing working agreements with partner agencies in American Job Centers (also called One-Stop Career Centers) or other State agencies to verify or document eligibility of new hires, including issuing Conditional Certifications; and coordinating efforts to promote WOTC with employers, job seekers and other Workforce innovation and Opportunity Act (WIOA) partners. The Federal government provides general direction, funding, and oversight to the states. Not applicable. See below. Standard records for periodic internal audits are required. The Internal Revenue Service (IRS) also requires that the State Workforce Agencies (SWAs) keep and maintain certification records for four years, and denial records for one year in the event of an employer audit by IRS or an employer appeal to the SWAs. Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. Funding is provided by annual formula allotments. Method of awarding/releasing assistance: Letter. Contact information for regional and state WOTC coordinators is available on the WOTC program website at www.doleta.gov/wotc. Steven Rietzke
200 Constitution Ave. NW, Room C-4510
Washington, DC 20210-0001 US
Rietzke.Steven@dol.gov
Phone: 2026933912 http://www.doleta.gov/wotc 16-0179-0-1-999 (Formula Grants) FY 18$18,000,000.00; FY 19 est $18,000,000.00; FY 20 est $18,000,000.00; FY 17$18,000,000.00; FY 16$18,000,000.00; - FY 2016 grants to states ranged from $66,000 to $2,518,373 Section 51 of the Internal Revenue Code, Title 26 U.S.C. ETA Handbook No. 408, Third Edition, November 2002, as amended. The Handbook and applicable U.S. Department of Labor, Employment and Training Administration policy directives are available on the WOTC program website at www.doleta.gov/wotc. Fiscal Year 2020 States are to use these formula grants for: accepting WOTC applications from employers; determining eligibility of individuals as members of the target groups; issuing employer certifications or denials; developing working agreements with partner agencies in American Job Centers (also called One-Stop Career Centers) or other State agencies to verify or document eligibility of new hires, including issuing Conditional Certifications; and coordinating efforts to promote WOTC with employers, job seekers and other Workforce innovation and Opportunity Act (WIOA) partners. The Federal government provides general direction, funding, and oversight to the states.