Work Opportunity Tax Credit (WOTC)

Overview


This program is available to employers who hire new employees from Atargeted groups.@ The credit is used to reduce the federal tax liability of private, for-profit, employers. Credit is based on 25% of $6,000 at 125-399 hours of employment and 40% of $6,000 at 400 or more hours. Maximum credit available is $2,400 per eligible worker.

Tax Credit Amount


The Welfare-to-Work Tax Credit is a tax credit of 35% of $10,000 for an employee retained 400 hours the first year and 50% of $10,000 for the same employee retained 400 hours the second year (employees must meet eligibility requirements).

Application Forms


Forms 8850 and ETIA-9061 may be obtained from the WOTC Unit, Department of Employment at (307) 235-3611.