The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment.
The Work Opportunity Tax Credit (WOTC) is authorized until December 31, 2025 (Section 113 of Division EE of P.L. 116-260 -- Consolidated Appropriations Act, 2021). The WOTC fact sheet offers an overview of key information about the tax credit.
For additional information about WOTC and eligible targeted groups, see https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit .
- Empowerment Zone Tax Incentives
The Department of the Treasury and the Internal Revenue Service (IRS) issued IRS Notice 2020-78, Work Opportunity Tax Credit (WOTC) Transition Relief under Internal Revenue Code § 51, effective December 11, 2020. This notice provides transition relief by extending the 28-day deadline for employers who submit a certification request for an individual hired on or after January 1, 2018, and before January 1, 2021, and is a member of the designated community resident targeted group or the qualified summer youth employee targeted group.