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Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit incentive that Congress provides to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. The main objective of this program is to enable the targeted employees to gradually move from economic dependency into self-sufficiency as they earn a steady income and become contributing taxpayers, while participating employers are compensated by being able to reduce their federal income tax liability. WOTC joins other workforce programs that help incentivize workplace diversity and facilitate access to good jobs for American workers.

 On November 21, 2011, President Obama signed into law the Vow to Hire Heroes Act of 2011, which amends and expands the definition of WOTC's Veteran target groups. For information on the new changes and provisions click, open and print any or all of the following documents:

 The legislative authority for the WOTC program's non-veteran groups expired on December 31, 2011. Given that the non-veteran groups may be reauthorized based on legislative history for WOTC, employers may still submit certification requests to State Workforce Agencies (SWAs) for these groups. SWAs will accept but not issue final determinations until WOTC is reauthorized.