Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credit (WOTC) is a federal tax credit that offers an incentive for private sector businesses to hire individuals from identified targeted groups that have consistently faced significant barriers to employment in Delaware. The main objective of this program is to enable the targeted employees to gradually move from economic dependency into self-sufficiency, gainful employment, and on-the-job experience. WOTC joins other workforce programs that help incentivize workplace diversity, create high performance workplaces, and facilitate access to good jobs for American workers.
The credit for the employer can be as much as:
- $2,400 for each new adult hire;
- $1,200 for each new summer youth hire;
- $4,800 for a veteran entitled to compensation for a service-connected disability; and
- $9,000 for each new long-term family assistance recipient hired over a two-year period.
The new employee must belong to one of the following groups:
- Long-term TANF Recipient
- Other TANF Recipient
- Veteran
- 18-39 Year Old Food Stamp Recipient
- 18-39 Year Old Designated Community Resident
- 16-17 Year Old Summer Youth
- Vocational Rehabilitation referral
- Ex-felon
- SSI recipient
We will continue to accept applications for these nine target groups that expired 12/31/2011 per USDOL/ETA guidance, but are unable to issue determinations pending further legislation.
The Recovery Act's two temporary target groups Unemployed Veteran & Disconnected Youth were effective December 31, 2008 through December 31, 2010. All applications received with a hire date of 01/01/2011 or later will be denied for these two target groups that expired 12/31/2010.
Vow to Hire Heroes Act of 2011
On November 21, 2011, President Obama signed into law the Vow to Hire Heroes Act of 2011.Section 261 of the Act, the "Returning Heroes and Wounded Warriors Work Opportunity Tax Credits," amends and expands the definition of WOTC's Veteran target groups. The changes and new provisions in this Act apply to individuals who begin to work for an employer the day after its enactment, November 22, 2011, and before January 1, 2013. Please reference the below website for more information regarding the Vow to Hire Heroes Act of 2011.
http://www.doleta.gov/business/incentives/opptax/PDF/veterans_fact_sheet12_1_2011.pdf