Financial Incentives  

Federal Tax Incentives

The Work Opportunity Tax Credit (WOTC) created in 1996 and the Welfare-to-Work Tax Credit (WWTC) created in 1997, are incentives that Congress provides to private-sector employers for hiring economically disadvantaged individuals with significant barriers to employment. As employers participate in these two tax credits they find out that:

• Employer makes the hiring decision
• Employer can claim up to $9,600 over two (2) years in potential tax credits
• No restrictions on the number of qualified individuals Employer can hire
• Credits are applied to taxes due to the Internal Revenue Service and unused tax credits may be carried over to the next tax year
• Forms, mailing address and more specific information please refer to the WOTC website.

The WOTC request must be postmarked no later than 28 days following the individual's employment start date.