News Release

U.S. Department of Labor Awards Work Opportunity Tax Credit Grants

WASHINGTON, DC The U.S. Department of Labor today announced the award of approximately $2,500,000 million in grants through the Work Opportunity Tax Credit (WOTC) that incentivizes workplace diversity and facilitates access to good jobs for American workers.

These awards will help state workforce agencies streamline their business processes and systems to reduce the processing backlog, including the number of accumulated certification requests that employers have submitted and await processing.

WOTC is a Federal tax credit available to employers for hiring individuals from certain targeted groups – including qualified veterans, ex-felons, qualified long-term unemployment recipients and individuals who receive Supplemental Nutrition Assistance Program benefits – who have consistently faced significant barriers to employment.

“The U.S. Department of Labor is committed to helping states that are in need of upgrading their Work Opportunity Tax Credit processing systems or conducting other activities to reduce their backlogs to ensure U.S. employers can benefit from the Federal tax credit,” said Assistant Secretary of the Employment & Training Administration John Pallasch. 

The Department and the IRS jointly administer the WOTC program implementation. State workforce agencies administer the certification process, ensuring that individuals hired by employers meet the qualifications of the claimed targeted group. The IRS administers all tax-related provisions and requirements.

ETA will award WOTC grants to the following states, which are experiencing significant processing backlogs:

Grantee

Amount

California

$325,000

Indiana

$325,000

New Jersey

$325,000

New York

$325,000

Connecticut

$200,000

Kansas

$200,000

North Carolina

$200,000

Virginia

$200,000

Alaska

$100,000

Delaware

$100,000

Idaho

$100,000

Wyoming

$100,000

Learn more about the WOTC grant program.

The mission of the Department is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

Agency
Employment and Training Administration
Date
September 15, 2020
Release Number
20-1783-NAT
Contact: Eric Holland
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