workers in field

Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment.

The Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) retroactively reauthorizes WOTC for a five-year period, from January 1, 2015 to December 31, 2019. The WOTC fact sheet offers an overview of key information about the tax credit.

For additional information about WOTC and eligible target groups, see https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit.

Announcements

  • Empowerment Zones Extended for Calendar Year 2017
    On February 9, 2018, empowerment zones were reauthorized under the Bipartisan Budget Act of 2018. The empowerment zone designation retroactively extended from January 1, 2017 through December 31, 2017 only. The Internal Revenue Service (IRS) has issued IRS Notice 18-47, Empowerment Zone Designation Extension, which is available on IRS.gov at: https://www.irs.gov/pub/irs-drop/n-18-47.pdf.
  • (EZ) Locator Application
    The U.S. Department of Labor (DOL) is currently testing an alternative EZ Locator application which is available on our website at: https://www.doleta.gov/business/in-centives/opptax/resources/.