AWI PROGRAMS
Work Opportunity Tax Credit
Background Information
The Work Opportunity Tax Credit Program (WOTC) offers private for profit employers an opportunity to earn a federal income tax credit for hiring individuals from certain target groups. The program is also designed to help jobseekers who consistently have a particularly high unemployment rate, enter employment. By hiring individuals from these targeted groups, employers can reduce their taxes up to $2,400 or $4,800 during the first year of employment or up to $9,000 over two years, depending on the qualified applicant. The targeted groups are: Qualified Temporary Assistance to Needy Families Recipients, Qualified Veterans/Disabled Veterans, Qualified Ex-felons, Designated Community Residents, Vocational Rehabilitation Referrals, Qualified Summer Youths, Qualified Food Stamp Recipients, Qualified Supplemental Security Income Recipients and Long-Term Family Assistance Recipients.
The American Recovery and Reinvestment Act of 2009 expand WOTC to include two new targeted groups: disconnected youth and unemployed veteran.
Work Opportunity Tax Credit (WOTC) Additional Information:
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