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Work Opportunity Tax Credit

Please note: the WOTC program's legislative authority for all WOTC target groups expired on December 31, 2013. As a result the program is currently undergoing an authorization lapse.

At this time, we have no indication whether Congress may pass legislation extending the authority for the expired program and target groups beyond December 31, 2013.

OVERVIEW

The Work Opportunity Tax Credit is a federal income tax credit for employers who hire employees from eligible groups including youth, ex-offenders, and public assistance recipients.

TAX CREDITS

Businesses can reduce their taxes up to $2,400 for each new adult hire, up to $1,200 for each new summer youth hire, and up to $9,000 for each new long-term family assistance recipient hired over a two year period.

ELIGIBILITY

For-profit employers are entitled to a credit against their federal income tax liabilities for hiring members of the following eligible groups: public assistance recipients, qualified veterans, high risk youth, summer youth, ex-offenders, vocational rehabilitation participants, and supplemental security income recipients.

NEED ASSISTANCE?

Contact the California Employment Development Department

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