Tax Credit Programs

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers who hire individuals from eligible target groups with significant barriers to employment. Each year, employers claim over $1 billion in tax credits under the WOTC program. The success and growth of this income tax credit for business is beneficial for all who participate, while increasing America’s economic growth and productivity.

  • WOTC can reduce an employer’s cost of doing business and can create significant savings for employers with a large workforce of lower paid, high turnover employees.
  • WOTC can reduce an employer’s federal income tax liability by as much as $9,600 per employee hired.
  • There is no limit on the number of individuals an employer can hire to qualify to claim the tax credit.
  • Certain tax-exempt organizations can take advantage of WOTC by hiring eligible veterans and receiving a credit against the employer’s share of Social Security taxes.