Work Opportunity Tax Credit (WOTC)

The WOTC is one tool in a diverse toolbox of flexible strategies designed to help move people from welfare into gainful employment and obtain on-the-job experience. It joins other tax credits, education, and workforce training programs that help American workers with barriers to employment prepare for good jobs; ease their transition from job to job; benefit from the creation of effective regional economic development strategies; and create high performance workplaces.

The consolidated WOTC for hiring most target group members can now be as much as:

• $2,400 for each new adult hire
• $1,200 for each new summer youth hire
• $4,800 for each new disabled veteran hire
• $9,000 for each new long-term family assistance recipient hired over a two-year period.

To view a Work Opportunity Tax Credit Brochure from the Texas Workforce Commission, click here.  ( 84KB)

To view a more detailed packet of information on the Work Opportunity Tax Credit from the Texas Workforce Commission, click here. 
( 2.3MB)

New employee hires must belong to one of the following WOTC target groups in order for the employer to qualify for the WOTC:

• Long-Term TANF Recipient
• Other TANF Recipient
• Qualified Food Stamp Recipient
• Designated Community Resident
• Summer Youth Employee
• Qualified Veteran
• Vocational Rehabilitation Referral
• Qualified Ex-Felon
• SSI Recipient

To download a PowerPoint presentation covering the details of the Work Opportunity Tax Credit, click here.  ( 831KB)

For more information about the WOTC, and to learn if your business and new hires qualify, please call or visit your local Workforce Solutions Center.