TEGL 06-23 Change 1.pdf

ETA Advisory File Text

EMPLOYMENT AND TRAINING ADMINISTRATION ADVISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASSIFICATION WOTC CORRESPONDENCE SYMBOL OWI DNPTTA DATE January 4 2024 RESCISSIONS None EXPIRATION DATE Continuing ADVISORY TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 06-23 CHANGE 1 TO STATE WORKFORCE AGENCIES STATE WORKFORCE ADMINISTRATORS WORK OPPORTUNITY TAX CREDIT COORDINATORS FROM BRENT PARTON Principal Deputy Assistant Secretary SUBJECT Change 1 to Training and Employment Guidance Letter No. 06-23 Work Opportunity Tax Credit WOTC Initial Funding Allotments for Fiscal Year 2024 1.Purpose. This Change 1 to Training and Employment Guidance Letter TEGL No. 06-23 conveys additional Fiscal Year FY 2024 WOTC f unding allotments and application requirements f or State Workforce Agencies SWAs based on f unding appropriated through a continuing resolution CR through February 2 2024. The rest of TEGL No. 06-23 remains the same. 2.Action Requested. Grantees must meet the application requirements detailed in section 4 within 30 calendar days f rom the date of this TEGL issuance. 3.Summary and Background. a.Summary On November 14 2023 the Employment and Training Administration ETA issued TEGL No. 06-23 which announced the initial FY 2024 WOTC f unding allotments of 2 423 384 under the Continuing Appropriations Act 2024 and Other Extensions Act Pub. L. 118-15 . The continuing resolution CR allowed f or incremental grant f unding f or states administration of the WOTC pro-rated based on the CR s end date of November 17 2023. On November 16 2023 the Further Continuing Appropriations and Other Extensions Act 2024 Pub. L. 118-22 became law providing a second continuing resolution CR2 through February 2 2024. This Change 1 TEGL announces additional FY 2024 WOTC allotments under CR2 in the amount of 3 889 243. The state allotment amounts are listed in Attachment I Work Opportunity Tax Credit Fiscal Year 2024 Funding under Continuing Resolution 2. ETA requests that SWAs submit applications f or f unding as allotted in Attachment I to this TEGL. Once Congress authorizes f inal appropriations or a third CR f or FY 2024 ETA will publish a Change 2 to this TEGL to announce either the f ull-year 2 allotments and state balances or additional CR 3 f unding as applicable . If applicable ETA will also announce any additional f unding appropriated to reduce processing backlogs and assist states in adopting or modernizing inf ormation technology f or processing certif ication requests . b. Background The WOTC is set f orth under section 51 of the Internal Revenue Code of 1986 as amended 26 U.S. C. 51 and is ef f ective until December 31 2025 under the Consolidated Appropriations Act 2021 P ub . L. 116 -260 Division EE Title 1 Section 113. The U.S. Department of the Treasury through the Internal Revenue Service IRS administers all tax -related provisions and requirements of the tax credit. The U.S. Department of Labor through ETA awards grants to states f or administration of WOTC. 4. Details . States must enter the ir state -specif ic allotment amount provided in Attachment I on their SF -424 Form Application for Federal Assistance OMB Control No. 4040 -004 as their of f icial request f or additional CR2 FY 2024 f unding f or normal WOTC operations. States must enter the value listed in the Total column of Attachment I . Allotment Formula . In February 2023 ETA published a Request f or Comment in the Federal Register 88 FR 10540 requesting public comment on proposed modif ications to WOTC procedural guidance and the administrative f ormula used to calculate annual state allotments. The proposed f ormula changes included an inf lation -adjusted increase to state minimum f unding allotments and revised metrics used in the f ormula methodology. ETA will use the revised administrative f ormula to calculate states remaining balances f or FY 2024 allotments once Congress passes the f ull -year FY 2024 appropriation. ETA will announce the f ull -year FY 2024 allotments and revised administrative f ormula in a subsequent Change TEGL. While under a continuing resolution incremental allotments to states are based on the prior f iscal year s allotment percentage. ETA determined FY 2024 continuing resolution 2 state allotment amount s provided in Attachment I f or normal WOTC operations by calculating each state s relative share of FY 2023 full -year f unding and multiplying each state s relative share by the total FY 2024 WOTC CR2 prorated f unding amount through February 2 2024 . ETA determined FY 2023 state allotments f or normal WOTC operations according to the f ollowing methodology Af ter allocating 20 000 to the U.S. Virgin Islands ETA distributes the remaining f unds to the SWAs by administrative f ormula with a 66 000 minimum allotment and a 95 percent stop -loss 120 percent stop -gain f rom the previous year allotment percentage. We calculate the administrative f ormula as f ollows a. 50 percent is based on each state s relative share of total WOTC certif ications issued f rom October 1 2021 through September 30 2022 b. 30 percent is based on each state s relative share of the Civilian Labor Force averages f or the 12 -month period f rom October 1 2021 through September 30 2022 and c. 20 percent is based on each state s relative share of adult recipients of Temporary Assistance f or Needy Families averages f rom October 1 2020 through September 30 2021. 3 Application Requirements for FY 202 4 Funding . ETA requires grantees to submit an electronically signed copy of the SF -424 Form Application for Federal Assistance OMB Control No. 4040 -0004 as their of f icial request f or f unding opportunity number ETA - WOTC -TEGL -06 -23-20 24-C1 at https www.grants.gov within 30 calendar days f rom the issuance date of this TEGL. The of f icial electronically signed SF -424 Form should be marked as a Continuation application f or item 2 and must ref lect the amount listed in Attachment I as the state s requested estimated f unding total in item 18 . Grantees must enter t he Catalog of Federal Domestic Assistance Number 17.271 f or item 11 and the grantee s 12 -character Unique Entity Identif ier UEI number should be listed f or item 8c . Each applicant must have a UEI number available and it must be registered in the System f or Award Management at SAM.gov bef ore submitting an SF -424 application. Grantees previously indicated the estimated amount of Indirect Costs to be claimed by the recipient f or FY 202 4 expenditures under the SF -424 Form submitted f or the CR1 f unding distribution announced in TEGL No. 06 -23. Theref ore grantees should NOT resubmit this inf ormation again in item 15 Descriptive Title of Applicant s Project as part of this SF - 424 application request f or CR2 f unding . All States must submit an electronically signed copy of the SF -424 through Grants.gov . To submit the required documents applicants must f ollow the Apply f or Grants link on Grants.gov and download the links f or the grant application package. For this grant opportunity applicants should not f ollow the Find Grants link as this is not a competitive f unding opportunity. If applicants encounter a problem with Grants.gov and do not f ind an answer in any of the other available resources they should call 1 -800 -518 -4726 or 1 -606 - 545 -5035 to speak to a Customer Support Representative or send an email to support grants.gov . Award Descriptions . As part of a Federal government -wide ef f ort to describe grant activities consistently and accurately ETA uses standard grant award descriptions. States may see the f ollowing text in the grant award s or online descriptions of WOTC grants Purpose The purpose of this grant is to allow SWAs to administer WOTC per ETA guidance and provisions of the IRS Code of 1986 Section 51 as amended. Law designates the SWAs as the only agencies that can issue a Certif ication 26 U .S.C. 51 d 12 . Th e statute ref ers to SWAs as state employment security agencies established in accordance with the Wagner -Peyser Act 29 U.S.C. 49 et seq . Activities to be performed SWAs must use f unds to implement the requirements set f orth in the WOTC Statement of Work including to Designate a state coordinator who oversees the administration of WOTC f or each state grant Determine eligibility of individuals as members of targeted groups on a timely basis and issue employer certif ications denials or notices of invalidation f or tax credits on a timely basis and in accordance with the policies and procedures set f orth by ETA and Establish and maintain appropriate forms quality review process es record keeping and reporting capability related to the orderly management of WOTC certif ication requests. 4 Expected Outcomes For WOTC grants SWAs will issue determinations certif ications or denials f or employers certif ication requests which f acilitate tax credits determined by the U.S. Department of the Treasury. SWAs will increase ef f iciency in processing employers certif ication requests and develop plans that include an estimated timeline to eliminate existing backlogs of certif ication requests. Intended Beneficiaries Job seekers who have access to a higher number of employment opportunities and employers who seek to increase hiring of qualified job applicants. Other benef iciaries include state and local partner agencies in the American Job Center network that coordinate ef f orts to promote WOTC to employers job seekers and other Workf orce Innovation and Opportunity Act WIOA partners. Subrecipient Activities SWAs as WOTC grant recipients do not typically subaward f unds. States that wish to subaward funds should seek approval f rom their ETA Grant Of f icer. General Administration . With their FY 202 4 grant award SWAs are responsible f or conducting the WOTC activities outlined in the WOTC Statement of Work . See Attachment II of TEGL 06 -23 Work Opportunity Tax Credit WOTC Initial Funding Allotments for Fiscal Year 202 4 available here https www.dol.gov agencies eta advisories tegl -06 -23 . As noted above this Change 1 TEGL provides incremental f unding proportional to f unds appropriated through the February 2 2024 expiration date in Continuing Resolution 2 the timing and amount s of subsequent incremental f unding depends on f uture appropriations. Reporting Requirements . a Quarterly Financial Report SWAs must report f iscal expend itures quarterly using ETA Form 9130 . Financial reports are due no later than 45 days f ollowing the end of each quarter. Timely submission of these reports is important to ensure proper accounting of f unds . b Quarterly Performance Report SWAs must use th e web -based Enterprise Business Support System EBSS Tax Credit Reporting System to report quarterly activities and outcomes using ETA Form 9058. Perf ormance reports are due no later than 45 days f ollowing the end of each quarter. Timely submission of these reports is important f or administration purposes. 5. Inquiries . Please direct inquiries to the appropriate Regional WOTC Coordinator listed on the WOTC website at https www.dol.gov agencies eta wotc contact regional -of f ices . 6. References . Section 51 of the Internal Revenue Code of 1986 as amended U.S.C. 51 https uscode.house.gov view.xhtml path prelim title26 subtitleA chapter1 subchapt erA part4 subpartF edition prelim Chapter 4B of Title 29 of the United States Code Labor https uscode.house.gov view.xhtml path prelim title29 chapter4B edition prelim 5 Pub. L. 116 -260 Consolidated Appropriations Act 2021 which authorizes WOTC https www.congress.gov 116 plaws publ260 PLAW -116publ260.pdf Pub. L. 117 -328 Consolidated Appropriations Act 2023 https www.congress.gov 117 plaws publ328 PLAW -117publ328.pdf Pub. L. 11 8-15 Continuing Appropriations Act 202 4 and Other Extensions Act https www.congress.gov 118 plaws publ15 PLAW -118publ15.pdf Pub. L. 11 8-22 Further Continuing Appropriations and Other Extensions Act 2024 https www.congress.gov 118 plaws publ22 PLAW -118publ22.pdf Training and Employment Guidance Letter No. 06 -23 Work Opportunity Tax Credit WOTC Initial Funding Allotments for Fiscal Year 202 4 and Attachments https www.dol.gov agencies eta advisories tegl -06 -23 and Federal Register 88 FR 10540 Work Opportunity Tax Credit Request f or Comments Regarding Proposed Modif ications to Procedural Guidance and Administrative Formula . 7. Attachment s . Attachment I W ork Opportunity Tax Credit Fiscal Year 202 4 State Allotments under Continuing Resolution CR 2 Attach men t I Work Opportunity Tax Credit FY 2024 Funding under Continuing Resolution 2 State CR 2 11 18 23 thru 2 2 24 21.04 Total 3 889 243 Alabama 58 046 Alaska 13 886 Arizona 72 452 Arkansas 27 214 California 518 300 Colorado 62 991 Connecticut 35 772 Delaware 17 036 District of Columbia 13 886 Florida 209 588 Georgia 101 392 Hawaii 17 548 Idaho 15 727 Illinois 148 570 Indiana 57 492 Iowa 46 030 Kansas 30 909 Kentucky 74 451 Louisiana 60 596 Maine 13 886 Maryland 83 888 Massachusetts 80 058 Michigan 120 902 Minnesota 60 598 Mississippi 43 635 Missouri 79 662 Montana 13 886 Nebraska 28 062 Nevada 34 997 New Hampshire 13 886 New Jersey 68 762 New Mexico 35 742 New York 263 771 North Carolina 107 475 North Dakota 13 886 Ohio 151 553 Oklahoma 54 772 Oregon 54 802 Pennsylvania 149 512 Puerto Rico 17 152 Rhode Island 15 039 South Carolina 52 699 South Dakota 13 886 Tennessee 137 551 Texas 275 639 Utah 22 820 Vermont 13 886 Virginia 87 106 Washington 87 509 West Virginia 24 904 Wisconsin 67 337 Wyoming 13 886 Virgin Islands 4 208 I-1