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 2021-43, Work Opportunity Tax Credit (WOTC) Transition Relief under Internal Revenue Code §51, effective August 10, 2021. This notice provides transition relief by extending the 28-day deadline for employers to submit a certification request for an individual who begins work on or after January 1, 2021, and before October 9, 2021, and is a member of the Designated Community Resident targeted group or the Qualified Summer Youth Employee targeted group, and resides within an empowerment zone.