Basic Facts about the Work Opportunity Tax Credit (WOTC)
The Tax Increase Prevention Act of 2014 (P.L. 113-295) extends the WOTC program and Empowerment Zones, without changes, through December 31, 2014.
The WOTC has two purposes:
- To promote the hiring of individuals who qualify as a member of a target group, and
- To provide a federal tax credit to employers who hire these individuals.
An employer may qualify for a tax credit of up to $9,600 if the employee is a member of a designated target group and meets that group’s specific requirements.
Target Groups That Qualify for the WOTC
Individuals hired from the following nine target groups may qualify an employer for the WOTC:
- Qualified recipients of Temporary Assistance to Needy Families (TANF).
- Qualified veterans receiving Food Stamps or qualified veterans with a service connected disability who:
- Have a hiring date which is not more than one year after having been discharged or released from active duty OR
- Have aggregate periods of unemployment during the one year period ending on the hiring date that equal or exceed six months.
- Ex-felons hired no later than one year after conviction or release from prison.
- Designated Community Resident – an individual who has attained ages 18 but not 40 on the hiring date who resides in an Empowerment Zone, or Rural Renewal County.
- Vocational rehabilitation referrals, including Ticket Holders with an individual work plan developed and implemented by an Employment Network.
- Qualified summer youth ages 16 through 17 who reside in an Empowerment Zone.
- Qualified Food Stamp recipients ages 18 but not 40 on the hiring date.
- Qualified recipients of Supplemental Security Income (SSI).
- Long-term family assistance recipients.
How to Apply for the WOTC
There are two ways employers or their agent/consultant can submit their WOTC Requests for Certification:
Online with Work Opportunity Tax Credit Online (eWOTC)
Here are some features of eWOTC:
- Use eWOTC to submit your Request for Certification Applications.
- View previously submitted applications.
- Check the status of submitted applications.
Enroll in eWOTC: First time users need to enroll first to use eWOTC.
- Complete WOTC Forms and mail to the EDD’s WOTC Center.
- Mail all paper Requests for Certification to:
EDD WOTC Center
2901 50th Street
Sacramento, CA 95817-2399